COE - Earnings call transcript Q1 2024 | China Online Education Group

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Operator

Hello, ladies and gentlemen. Thank you for standing by for 51Talk's Online Education Group's First Quarter 2024 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. David. ahead, go Please

David Chung

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

for You can download and Jack distribution remarks. earnings with press Ms. Mr. Cindy by ir.XXtalk.com. our CFO, the will some sign visiting begin release list Huang, company's and the up CEO; Tang, our prepared

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

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

Forward-looking statements risks uncertainties. involve inherent and

company's such, expressed XX-F filings public filed may today. As other and be with views regarding as Securities and the information from the this and the is results Exchange Form company's Further uncertainties Commission. risks other materially the and U.S. different in included

does The this most unaudited unaudited except the information as required non-GAAP under not measures obligation a forward-looking earnings as release reconciliation XXTalk's non-GAAP GAAP any financial comparable unaudited release contains measures. any GAAP Please to that statements the company directly discussion of press to well of as call note include unaudited press law. the assume applicable financial update measures. also conference and

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

Jiajia Huang

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

high to the quarter driven our by exceed of of first driving XXXX, in of business the us continued Our momentum diversified portfolio the markets end guidance.

quality capability on base. our growth. remain were to student supported have delivering our We investments. activities branding our in increase observed earlier We significant Particularly, returns our confident our in

us trials, potential pool of demand. a with Our numerous over along substantial active XX,XXX participants with in free quarterly provide students,

preparation their new needs, products programs tailored test We have school enrollments. developed for as such to

Institute how operational experience During explore this latest our enhance can user efficiency. formally to the and technologies our AI Research we established quarter,

interviews teachers. training have to for for customers begun conduct reports customize AI progress and and We using our learning

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

Chun Tang

you, Jack. Thank

quarter net for largely with a by First billings quarter increase USD the same was the the last year, X.X from year margin from USD the consumption. XX.X% last XX.X students to quarter by million. first quarter million, Gross driven XX.X%. Gross active were grew revenues same attended lesson XX.X% increase of

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

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

were quarter QX USD XX.X% increase product development expenses from X.X year. same million, a last the

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

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

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

concludes our This remarks. prepared

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

Operator

today's John And from Instructions] ] BG Investments. Capital of first comes [Operator Banks question [

Unknown Analyst

Congratulations. Great quarter, great momentum.

went the Chinese Are pretty interest education but have just Chinese market, question into forward? going is, out market my approach been big doing with One, share market? guys million, like left What questions. gross you company's to are eventually from $XX to two you we're going And to Xx any anything. million, increase the it $XX rebound back guys in Historically, trading looks of curious, I your the X billings. nothing you going almost price know a your Just and I'm have Chinese stocks. to hasn't gross second $XXX million, the basically seeing you billings really done awareness you completely stock?

Jiajia Huang

answer your question. CFO second very you answer Thank your can I Okay. one, first much think the for I our will question. and

China you have our And one, we of outside mentioned, model actually company. first has the emphasize business to China actually in that regulation outside issue, not want of are the we So Mainland as China so business as [indiscernible] XXTalk's Mainland interested been China I we And listing found the works Mainland because that well. -- of the anymore. business

can as growth that the a Asia, other showing So you area in the have different see of very we world. several successful in into Southeast in Japan, markets the

So international we confident are very market. about

Okay, second the Cindy, you can question. answer

Chun Tang

Yes.

question. your Okay. Thank for you

will our that the main to operation share share for our actually, ultimately up we believe price. price, our So drive factor

team the engage So price. on profitable expected, go we'll to the sure so that we actually making that will good sure is within company for time, When the and focusing more can actively is gross to now, will potential growth about help time solid and for grow same introduce At lay share make to expectations a investors. investors. that the was foundation operation as ourselves our we to portfolio the our geographic out enough, our the our healthy, company diversify billings will

Unknown Analyst

right. and so work for All continues luck the Hopefully, great future, the guys. momentum Good far. in you

Chun Tang

you. Thank

Operator

like over our the Mr. David, back closing for remarks. conference the call company reaching to please [Operator go ahead. to Instructions] As we call, I'd of are the turn end

David Chung

again joining today. us once Thank for you

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

Operator

conference This concludes Thank you. this call.

you. You may lines. your Thank now disconnect

China Online Education (COE) 12 Jun 242024 Q1 Earnings call transcript