China Online Education (COE) 18 Dec 232023 Q3 Earnings call transcript

Hello, ladies and gentlemen, thank you for standing by for 51Talk Online Education Group's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded.

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

to Quarter welcome Call Earnings and XXTalk. of everyone, the XXXX Third Conference Hello, were newswire issued and results company's The via online. are services posted today earlier

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

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

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

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

Forward-looking risks inherent statements involve uncertainties. and

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

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

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

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

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

the the Our guidance. third gross continued in with at in growth coming high billings the of end quarter

During selected our high the an quarter, see growth we focused our where markets from advantage. on early-mover we activities in potential benefit and

localize continued to local to adapt material have our we fact, In the audiences. to

mode, in expansion much still we achieving we Although very flow. an positive are are cash

remain million to Our sustainable committed cash the We to approach. previous increased our by quarter. growth compared USD X.X

our practice through our way. engaging functionality can, we in firstly, terms interactive a generative enhance customers how more help and personalized technology, AI of In to more products focus on further

service curriculum cycle. course to equally students use models language Secondly, empower more guide course more our parents large personalized by teams we materials. our deploy to We effectively through creating the adaptive generative to AI their enhance and our

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

Jack. you, Thank

the third third growth. revenues quarter-over-quarter were guidance. high into the X.X XX.X% billings carried momentum million, was million USD to quarter grew the XX.X% net at quarter Gross USD business Our for sequential end of representing XX.X%. margin XX.X as Gross by

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

QX X.X been a by XX.X% marketing expenses due of marketing this spend. QX Specifically, sales further increase from has and increases driven million, and USD sequential to branding in

personnel. development were expenses QX X.X research sequential a increased XX.X% to product and increase million, USD and development due projects

USD million, Finally, QX QX. expenses were to compared general and flattish X.X administrative

was X.X Overall, and was USD QX operating loss million XX.X% QX, respectively. million, XX.X% sequential a USD increase net loss from while X.X

GAAP ] million USD were were students QX The and respectively. of million USD and at of were end negative from [ end the third the USD cash non-GAAP company's and the Advances earnings third ADS total XX.X at equivalents quarter. per cash, X.XX the deposits USD time X.XX, XX.X quarter.

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

our prepared concludes This remarks.

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

to I Mr. remarks. return the back please closing this Instructions] [Operator David, At time, like company to any would ahead. for the over call go

joining us for again once today. you Thank

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

call. Thank you. This concludes this conference

You Thank you. your lines this may at time. disconnect