51Talk Online Education Group (COE) Q3 2024 earnings summary

Executive summary

• Gross billings reached $19.8M, up 80.7% year-over-year, and net revenues rose 79.4% to $14.0M for Q3 2024.

• Active students with attended lesson consumption increased 82.5% to 65,700 compared to Q3 2023.

• AI adoption accelerated, improving lead conversion, tutor management, and classroom experiences.

• Operating loss narrowed to $0.8M from $3.9M year-over-year; net loss attributable to shareholders was $0.6M, down from $3.9M.

• Focus on global localization strategies and expansion into new markets, including pilots in Vietnam and consideration of Spanish-speaking regions.

Financial highlights

• Gross profit was $11.1M, up 85.3% year-over-year; gross margin was 78.7% for Q3.

• Gross billings grew 80.7% year-over-year to $19.8M.

• Operating expenses were $11.8M, up 20.6% year-over-year; sales and marketing expenses rose 18.3% to $8.2M.

• Non-GAAP net loss was $0.4M, compared to $3.6M in Q3 2023.

• Cash, cash equivalents, and time deposits totaled $25.6M as of September 30, 2024, up from $23.4M at year-end 2023.

Outlook and guidance

• Q4 2024 gross billings expected between $20.5M and $21.0M, representing sequential growth of 3.7% to 6.2%.

• Confident in achieving positive cash flow for the full year 2025, with quality growth as a top priority.

• Guidance reflects current market and operating conditions, subject to change.