China Online Education (COE) 25 Aug 232023 Q2 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for 51Talk Online Education Group's Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded.

I will now turn the call over to your host, Mr. for Relations Investor Chung, the Company. David ahead, go David. Please

and to Thank XXTalk. XXXX quarter everyone, earlier The welcome you. and the today services earnings newswire results issued second posted were online. Hello, Company's by are conference call of

press download up ir.XXtalk.com. for and can distribution You release by Company's list sign earnings the visiting the

with our remarks. Huang, Cindy Jack prepared and Mr. Tang, our some Ms. CEO; CFO, will begin

remarks, there will session. prepared Q&A the Following a be

harbor made provisions that note the will under please Securities the statements Reform safe the continue, of we Before Litigation of contain discussion Private U.S. XXXX. forward-looking Act

statements inherent Forward-looking involve risks and uncertainties.

Company's be today. As results such, views the different expressed the may materially from

and Further information does not Commission. any in other included XX-F under The obligation regarding is assume and forward-looking law. any applicable to required this Securities and public as filings and with statements, Exchange uncertainties Company's the filed except Form risks Company the as update other U.S. the

press discussion unaudited financial this of note and conference directly measures that also the financial unaudited measures. include non-GAAP as earnings information contains XXTalk's measures. unaudited press non-GAAP call a Please comparable most the release GAAP reconciliation release well unaudited to of GAAP as

turn to Jack Jack, our go call will Huang. the ahead. CEO, I please now over

everyone. Hello, Okay. Thank joining call. our conference you you, David. Thank for

Our above gross the the growth momentum second in continued the billings guidance. coming in quarter with

markets. Our continued existing concentrate growth on and improved resources operating metrics to confirm our our approach

to activities. from markets. an our advantage. At branding maximize we in remain strengthen investing our potential and online mover markets where a new we continue early time, will same the and benefit potential this We we efforts will market existing see In the explore localization will markets, offline from and

focus growth growth disciplined and expense resources. the tight sustainable budget revenue coming well forward and net keep to approach. a will control in to remain committed our and optimizing our look We our quarters remain control further in on We

has the of listing the of concluded now NYSE full removing The the also American, listing transfer the we NYSE to potential a are of our quarter of transfer requirements uncertainty, second and the completing listing American, in a with concerns listing. saw us compliance time

to an It shareholders supporting Chinese to educator to also existing all students and our world a concludes is goals. of education in testimony transformation their our it international company from achieve the to and commitment learning new parts

believe of the solutions. In our those to and winners and technology, that Chat terms technology large the transform provide with develop of working experience. education our we to in vision models users tutors AI-powered that user will language in such optimize mind, integration relentlessly that be team the online customized can as most will content products With is GPT

product engaging in We will due for an launch course. young trial learners our

call With the over that, I Cindy. turn to our will now CFO,

Thank Jack. you,

million, revenues fruits $X.X representing by quarter-on-quarter business as also Our sequential the second localization for quarter XX.X%. the Gross to second carried net not were reflecting margin of million, into XX.X% end but at beating billings high the the grew XX.X% only our guidance $X.X was some growth. early efforts. quarter momentum Gross

XX.X% of compared the expenses to $X.X increase was quarter. operating an last QX million,

was QX operational projects. Specifically, this localization and XX.X% $X.X in $X.X as marketing sales by increased X.X% increase increase activity. local has to sequential such marketing of a and and sequential increased QX development product investment branding development to been as million, QX marketing research expenses driven and due increased as due million from and well various or personnel expenses

increase $X.X and QX, to million, Overall, while respectively. to sequential administrative up were XX.X% Finally, mainly sequential net million, from $X.X loss factors. compared QX loss administrative XX.X% QX XX.X% general operating one-off million increase due was and QX, expenses a $X.X was

at equivalents and quarter. the at the were the The end from Company's $XX.X QX the million of quarter. million total of ACS $X.XX, and deposits $X.XX second per and cash negative end second $XX.X GAAP non-GAAP cash, students respectively. were Advances earning were time

third quarter currently above our reflects gross estimates and on to we the change. the current conditions is market forward Company's and based outlook Looking are demand, subject and million conditions of million. expect which be XXXX, all the preliminary $XX.X net The operating between billings $XX.X and customer and to market to current of

our concludes prepared This remarks.

go for questions. open now will We the ahead. line Operator, please

please ahead. Mr. go Chung,

Thank you today. joining us for once again

our have contact the XXTalk's Investor information website. you provided further please questions, for on If contact Relations

Thank you. call. This concludes this conference

disconnect Thank you. line. now your may You