51Talk Online Education Group Announces First Quarter 2025 Results

SINGAPORE, June 9, 2025 /PRNewswire/ -- 51Talk Online Education Group ("51Talk" or the "Company") (NYSE American: COE), a global online education platform with core expertise in English education, announced its unaudited results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial and Operating Highlights

• Gross billings^[1] for the first quarter of 2025 were US$21.9 million, a 74.6% growth from the first quarter of 2024.
• Net revenues were US$18.2 million for the first quarter of 2025, a 93.1% increase from US$9.4 million for the first quarter of 2024.
• The number of active students with attended lesson consumption was approximately 81,100 in the first quarter of 2025, representing a 75.5% increase from approximately 46,200 for the first quarter of 2024.

"Our first-quarter gross billings increased by 74.6% compared to the same period last year, highlighting the progress we've made and the robustness of our business model. We remain confident in the sustainable growth trajectory of our operations. Looking ahead, we are encouraged by the positive momentum in the second quarter. Breakthroughs in our existing markets are driving results, and we are seeing promising early returns from our strategic investments in new regions." stated Jack Jiajia Huang, Founder, Chairman, and Chief Executive Officer of 51Talk.

"We are establishing leadership positions in many of our core markets and are confident that our business model is well-equipped to outperform incumbents in mature markets and seize first-mover advantage in emerging ones. Education continues to be an operationally intensive sector, and we are proactively addressing the complexities of managing a growing, multi-market business. To support this expansion, we have taken deliberate steps to optimize our organizational structure, accelerate AI training and adoption company-wide, and deepen user engagement to foster stronger connections with our community."

"We are excited about the future of our business and remain steadfast in our commitment to delivering long-term value to our shareholders, students and partners." concluded Jack Jiajia Huang.

First Quarter 2025 Financial Results

Net Revenues and Gross Margin

Net revenues for the first quarter of 2025 were US$18.2 million, a 93.1% increase from US$9.4 million for the same quarter last year. The number of active students with attended lesson consumption was approximately 81,100 in the first quarter of 2025, a 75.5% increase from 46,200 for the same quarter last year.

Cost of revenues for the first quarter of 2025 was US$4.2 million, a 97.6% increase from US$2.1 million for the same quarter last year. The increase was primarily due to the increase in total service fees paid to teachers, mainly resulting from an increased number of paid lessons.

Gross profit for the first quarter of 2025 was US$14.0 million, a 91.8% increase from US$7.3 million for the same quarter last year.

Gross margin for the first quarter of 2025 was 77.0%, compared with 77.5% for the same quarter last year.

Operating Expenses

Total operating expenses for the first quarter of 2025 were US$15.3 million, a 35.6% increase from US$11.3 million for the same quarter last year. The increase was mainly due to the increase in sales and marketing expenses. 

Sales and marketing expenses for the first quarter of 2025 were US$11.1 million, a 42.7% increase from US$7.8 million for the same quarter last year. The increase was mainly due to higher sales personnel costs related to increases in the number of sales and marketing personnel and higher expenses incurred for our marketing activities. Excluding share-based compensation expenses, non-GAAP sales and marketing expenses for the first quarter of 2025 were US$11.0 million, a 42.6% increase from US$7.7 million for the same quarter last year. 

Product development expenses for the first quarter of 2025 were US$1.0 million, a 9.8% increase from US$1.0 million for the same quarter last year. The increase was primarily due to higher product development personnel costs. Excluding share-based compensation expenses, non-GAAP product development expenses for the first quarter of 2025 were US$1.0 million, a 12.3% increase from US$0.9 million for the same quarter last year. 

General and administrative expenses for the first quarter of 2025 were US$3.2 million, a 23.8% increase from US$2.6 million for the same quarter last year. The increase was primarily due to higher general and administrative personnel costs. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for the first quarter of 2025 were US$3.0 million, a 26.3% increase from US$2.4 million for the same quarter last year.

Loss from Operations

Operating loss for the first quarter of 2025 was US$1.3 million, compared with operating loss of US$4.0 million for the same quarter last year.

Non-GAAP operating loss for the first quarter of 2025 was US$1.0 million, compared with non-GAAP operating loss of US$3.7 million for the same quarter last year.

Net loss attributable to the Company's ordinary shareholders

Net loss attributable to the Company's ordinary shareholders for the first quarter of 2025 was US$1.5 million, compared with net loss of US$4.0 million for the same quarter last year.

Excluding share-based compensation expenses of US$0.3 million, non-GAAP net loss for the first quarter of 2025 was US$1.2 million, compared with non-GAAP net loss of US$3.7 million for the same quarter last year.

Basic and diluted net loss per share attributable to ordinary shareholders for the first quarter of 2025 was US$0.004, compared with basic and diluted net loss per share attributable to ordinary shareholders of US$0.01 for the same quarter last year.

Excluding share-based compensation expenses of US$0.3 million, non-GAAP basic and diluted net loss per share attributable to ordinary shareholders for the first quarter of 2025 was US$0.003, compared with non-GAAP basic and diluted net loss per share attributable to ordinary shareholders of US$0.01 for the same quarter last year.

Basic and diluted net loss per American depositary share ("ADS") attributable to ordinary shareholders for the first quarter of 2025 was US$0.25, compared with basic and diluted net loss per ADS attributable to ordinary shareholders of US$0.69 for the same quarter last year. Each ADS represents 60 Class A ordinary shares.

Excluding share-based compensation expenses of US$0.3 million, non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders for the first quarter of 2025 was US$0.20, compared with non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders of US$0.64 for the same quarter last year.

Balance Sheet

As of March 31, 2025, the Company had total cash, cash equivalents and time deposits of US$29.5 million, compared with US$$29.2 million as of December 31, 2024.

The Company had advances from students^[3] of US$47.9 million as of March 31, 2025, compared with US$45.1 million as of December 31, 2024.

The financial statements for the first quarter ended March 31, 2025 herein have not been audited or reviewed by the Company's independent registered accounting firm.

Outlook

For the second quarter of 2025, the Company currently expects net gross billings to be between US$24.5 million and US$25.5 million,which would represent a sequential growth of 11.7% to 16.3% and an increase of approximately 54.4% to 60.7% from the same quarter last year.

The above outlook is based on current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Conference Call

The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on June 9, 2025 (8:00 PM Singapore/Hong Kong time on June 9, 2025).

Dial-in details for the earnings conference call are as follows:

Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for "51Talk Online Education Group."

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.51talk.com.

A replay of the conference call will be accessible until June 17, 2025, by dialing the following telephone numbers:

About 51Talk Online Education Group

51Talk Online Education Group (NYSE American: COE) is a global online education platform with core expertise in English education. The Company's mission is to make quality education accessible and affordable. The Company's online and mobile education platforms enable students to take live interactive English lessons, on demand. The Company connects its students with a large pool of highly qualified teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students. 

Use of Non-GAAP Financial Measures

In evaluating its business, 51Talk considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) attributable to ordinary shareholders, and non-GAAP net income/(loss) attributable to ordinary shareholders per share and per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this press release.

51Talk believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. 51Talk believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to 51Talk's historical performance. 51Talk computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. 51Talk believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in the 51Talk's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table at the end of this press release provides more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "aims", "future", "intends", "plans", "believes", "estimates", "likely to" and similar statements. Among other things, 51Talk's quotations from management in this announcement, as well as 51Talk's strategic and operational plans, contain forward-looking statements. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 51Talk's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 51Talk's goals and strategies; 51Talk's expectations regarding demand for and market acceptance of its brand and platform; 51Talk's ability to retain and increase its student enrollment; 51Talk's ability to offer new courses; 51Talk's ability to engage, train and retain new teachers; 51Talk's future business development, results of operations and financial condition; 51Talk's ability to maintain and improve infrastructure necessary to operate its education platform; competition in the online education industry in its international markets; the expected growth of, and trends in, the markets for 51Talk's course offerings in its international markets; relevant government policies and regulations relating to 51Talk's corporate structure, business and industry; general economic and business condition in the Philippines, its international markets and elsewhere; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 51Talk's filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

SOURCE 51Talk Online Education Group