China Online Education (COE) 13 Dec 242024 Q3 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for 51Talk Online Education Group's Third Quarter 2024 Earnings Conference Call.

[Operator Instructions] Today's conference call is being recorded.

I would now like to turn the call over to Mr. David Chung, Investor Relations for the company. David. ahead, go Please

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

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

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

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

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

Forward-looking statements involve inherent risks and uncertainties.

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

Further company release XX-F XXTalk's and uncertainties and that discussion does to financial update well not regarding comparable and statements, with is also Form measures. note most filings of and public applicable non-GAAP the Securities directly contains company's filed assume measures to as GAAP GAAP as obligation unaudited earnings the as financial information the unaudited include the law. Please this other forward-looking required under as unaudited press other reconciliation the any a these information The press included except Commission. conference of measures. call non-GAAP release risks U.S. in unaudited Exchange and

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

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

third gross billings with into once quarter, momentum our growth the Our surpassing earlier been well guidance. sustained has again

our some ability our maintain anticipated in growth accounting going confident are to we ahead, seasonality. forward, momentum Looking while for

products existing strategies world, with to around service while our the actively are students. supplementary opportunities We extend to our pursuing offerings localization committed for

cash maintained upward is trend the X sustainable operating in positive we highlight growth, trajectory our the would periods. balance that, This commitment cash we in over the flow the we and have coming this anticipate by quarters. quarter, in continue to that fully will an improvement Furthermore, in in evidenced past our our

significant adoption driver become across our this quarter. group of a has acceleration AI The

We conversion student all rates, in lead AI. classroom management improvements experiences, tutor by have observed and powered

with technologies, of implementation company. customer globally our understanding AI leading strategic the objective needs, of Our with deep combined of becoming EdTech a aligns

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

you, Thank Jack.

walk details. our quarter financial let third me through you Now

Third quarter last from increase the for driven billings year, of an the expenses a the from USD quarter operating million, Gross XX.X%. last to XX.X to quarter margin quarter active attended were grew was year XX XX.X% Gross by increase million, increase were XX.X% USD revenues XX.X XX.X% year. USD lesson largely same same quarter of students with by consumption. compared third last the the million. QX

of million, personnel. QX number the quarter million, Specifically, a due X.X% to and same this the marketing XX.X% related of year. same has to higher been expenses costs from USD QX from increases driven decrease last USD expenses in quarter X.X development product last an and personnel by year the sales sales marketing was increase sales X.X

loss same year, attributable respectively. same Overall, USD USD QX XX.X% million, and loss the was quarter last company's net million, was X.X QX shareholders XX.X% were Finally, administrative USD operating X.X to from decrease X.X quarter XX.X% expenses a increase the last from year. while and million, the ordinary general a

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

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

This our prepared concludes remarks.

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

[Operator Banks with John come State Securities. the Instructions] from will Garden And question first

have. customers especially of quarter, number the Great with Congratulations. you

new and On a going you phase any the know the questions. your little profitability my Spanish, second a question, into flow year? of Just for you're year? couple And just flow new big -- maybe Jack, next with that can so Congratulations. at next on looking next into, Vietnamese quick entering you at give company, about year, like growth cash on like you're to guys a are color markets profitability, with cash website, markets get I with color

very Well, much questions. thank you your for

ER, growth. XXXX, the So regarding as your our quality first question cash mentioned is in we flow in target the about

is So our the priority in company top the growth.

have So And we can growth above in cash quarter, million. positive see we have a achieved from course, good a you last of rate of XXXX. to flow aim as $X

we can are XXXX. very whole confident So that a in achieve cash flow much we of year positive the

question into more about second strategy of the new are to is expand your Regarding markets. we -- growth our markets, yes, one

-- in pilots that, are is in now, -- also as are the we As and Southeast see, we we there. like Right like to going And Vietnam. doing XXTalk we are the have version. see may open we are now, market you are Asia, Arabic right you Thailand, Malaysia, can that -- we some

in now areas Arabic So we as are right the well.

a but is we we right market. the population What now, there, But population, looking Spanish considering we sorry? have see big team have world third a have over are market we in is so don't that of are it. into question, XXX Spanish-speaking to a million And course, pilot with we of the a the --

you guys next looks No, for very those were my like Congratulations. good. company X year looks -- questions. The

much. very you Thank

remarks. to to go Mr. the conclude like question-and-answer for Please David any Instructions] sir. would will this conference session. And closing turn back I ahead, our over [Operator

us Thank you today. joining again was for

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

now today's has you conference for The Thank attending concluded. presentation.

disconnect. now may You