SINGAPORE, March 29, 2023 -- 51Talk Online Education Group (“51Talk” or the “Company”) (NYSE: COE), a global online education platform with core expertise in English education, announced its unaudited results for the third quarter ended September 30, 2022, and the fourth quarter and full year ended December 31, 2022.
The Company completed the divestiture of its China mainland business on June 30th, 2022. After the divestiture, the Company focuses on providing online English tutoring lessons taught by foreign teachers to K-12 and post-secondary students in countries and regions outside of mainland China.
The Company has announced that the change of the Company’s legal name from China Online Education Group to 51Talk Online Education Group was approved and adopted by way of annual general meeting on September 30, 2022.
The Company has changed the ratio of its American depositary shares (“ADSs”) to Class A ordinary shares (the “ADS Ratio”) from one (1) ADS representing fifteen (15) Class A ordinary shares to one (1) ADS representing sixty (60) Class A ordinary shares.The effective date was on December 15, 2022 (U.S. Eastern Time).
Net revenues were US$15.0 million for the full year 2022 and gross margin was 78.8% for the full year 2022. Good gross profit margin performance。Operating cash outflow was US$45.7 million for the full year 2022, including discontinued operating cash outflow of US$47.6 million and continuing operating cash inflow of US$1.9 million. Positive cash flow confirms our business model.
“FY2022 represents a new beginning for 51Talk. Specifically, we completed our divestiture of the China mainland business in the second quarter with the third quarter being the first quarter where 100% of the Company’s revenues derived from international markets. On September 30th, our shareholders approved the proposal of changing our legal name from China Online Education Group to 51Talk Online Education Group. We believe these are all significant milestones that we have accomplished in 2022 and are excited by the future prospects of 51Talk as we continue to execute our localization strategy in the international markets.” said Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk.
“Our gross billings for 2022 was US$28.7 million. In Q1 and Q2, we benefitted from immediate demand due to COVID-related closing of schools and offline tutoring providers. In Q3 and Q4, classes returned to normal in some international markets and created defections from our classes.
Starting from Q3 onwards, we intensified our localization efforts and deployed marketing and operational personnel in selected places. As our international experience grows, we are confident in our execution and expansion over the medium term. Results from early sales initiatives foster our belief that our product, processes and technology can be transferred to international markets with equal success in a post COVID world.
In terms of technology, we believe AI-powered tutors will transform online education. The combination of tutor and AI will significantly improve user experience and greatly promote personalized education. Specifically, adaptive learning or the creation of personalized teaching content, the provision of customized teaching tools for teachers and customized lesson feedback based on students' learning situations, among others. We have already begun integrating ChatGPT into our products and operations and continue to strategically build around our vision of personalized education.
Finally, our international business achieved positive operating cash flow during Q3 and Q4, reflecting strong execution of our sustainable growth strategy.” Mr. Huang concluded.
51Talk leverages Internet technology to compile premium educational resources and bring quality native English-speaking teachers to everyone, empowering every learner to communicate with the world. Over the years, 51Talk has continuously sought breakthroughs in the fields of Internet technology and AI intelligence。
51Talk independently developed the world's first video teaching system, and now proudly introduces AirClass,, a platform for students and teachers to interact freely and carry out teaching activities. AirClass provides instant translation in its chat box, with its voice recognition breaking down the audio to milliseconds to analyze students’ pronunciation and intonation accurately and pinpoint areas for improvement for better learning results. Furthermore, AirClass evaluates students’ learning results and status systematically at every stage and converts the results to a visual learning report, so parents can grasp their child’s English level, progress and proactiveness at a glance.
Built upon 51Talk’s closed-loop big data analytics and massive pool of raw data, the Dashboard system obtains accurate learning statistics of students and quantifies learning results. The Magic Mirror Brain can summarize users' learning habits and identify weak links, so that teachers can provide better guidance and suggestions on learning materials to achieve better learning results. 51Talk will leverage its sophisticated technology platform to support the international market expansion, which was built with more than $100m investment and delivered more than 100+m lessons in the past decade.In the future, 51Talk will continue to add code to AI intelligent technology to provide better services for users
Founded in 2011, transformed in 2021, now headquartered in Singapore，51Talk is a world leading EdTech company. 51Talk adopts an online one-on-one teaching mode, providing English tutoring services around the world for young and teen users aged 3 to 15. Listed on the New York Stock Exchange in June 2016. 51Talk empowers the global education industry with technology, steadily realizing the corporate mission of “Empower All to Talk to the World”.
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