On December 13th, 51Talk (NYSE: COE), the first stock of China's online education to go public in the United States, released its Q3 2024 results.
In the first three quarters of this year, 51Talk's revenue was 34.453 million US dollars, a year-on-year increase of 75.4%; Net loss of 5.655 million US dollars, reduced by 39.6%.
In the third quarter of this year, 51Talk's net revenue was $14 million, a year-on-year increase of 79.4%; The gross profit was 11.1 million US dollars, a year-on-year increase of 85.3%, with a gross profit margin of 78.7%; The net loss decreased significantly to $650000, compared to a net loss of $3.864 million in the same period last year.
As of September 30, 2024, the company's total cash, cash equivalents, and term deposits amounted to $25.6 million. The advance payment for students was 39.7 million US dollars, an increase of 45.9% from the beginning of this year.
In the third quarter, the number of active students participating in 51Talk courses was approximately 65700, a year-on-year increase of 82.5%. Meanwhile, the total cash received and receivable from third-party payment platforms for sales course packages and services (excluding refunds for the same period) was $19.8 million, a year-on-year increase of 80.7%. 51Talk predicts that the total net bill for the fourth quarter of 2024 will be between $20.5 million and $21 million, representing a continuous growth of 3.7% to 6.2%.
In the first quarter of this year, 51Talk established an artificial intelligence research institute. The company has expanded both in sales and research and development. According to the financial report, due to the increase in sales and marketing expenses, the total operating expenses of 51Talk amounted to $11.8 million, a year-on-year increase of 20.6%. The sales and marketing expenses amounted to 8.2 million US dollars, a year-on-year increase of 18.3%. On the R&D side, the company's product development expenses for the second quarter were 900000 US dollars, a year-on-year increase of 22.6%; The development expenditure for the third quarter was 838000 US dollars, a year-on-year decrease of 3.3%.
Since the beginning of this year, 51Talk's revenue has maintained three consecutive quarters of high growth. Our growth momentum continued into the third quarter, and our total statement once again exceeded our previous expectations. Looking ahead, we are confident in our ability to maintain future growth momentum, "summarized Huang Jiajia, founder, chairman, and CEO of 51Talk. The sentence is:. We have observed improvements in lead conversion rates, mentor management, and student classroom experience, all of which are supported by artificial intelligence