51Talk's Q3 2025: Contradictions Emerge on Growth Strategy, Accounting Shift, and Liquidity Plans

Business Commentary:

* Revenue and Growth Surge: - 51Talk Online Education Group reported net revenues of USD 26.3 million for Q3 2025, an 87.5% increase from the same quarter last year. - The rapid growth was driven by the increase in active students and attended lesson consumption.

• Student Base Expansion:
• The company's active student base reached 112,600 during Q3 2025, marking a significant milestone as they surpassed 100,000 active students for the first time since their global expansion strategy began.

• This expansion is attributed to the company's strategic execution and the substantial opportunity presented by the global market.

  

• Operating Expense Increase:

• 51Talk's Q3 operating expenses were USD 23.4 million, an increase of 97.9% compared to the same quarter last year.
• The rise in sales and marketing expenses due to intensified marketing and branding activities and higher sales personnel costs primarily drove this increase.

Contradiction Point 1

Growth Activities and Market Focus

It reveals a shift in the company's strategic focus and growth activities, which can impact its market positioning and investor expectations.

Who are the company's CEO and CFO? - David Chung

20251208-2025 Q3: Our growth continued in the third quarter with gross billings coming in at the high end of the guidance. During the quarter, we focused on our growth activities in our selected markets where we see high potential and benefit from an early-mover advantage. - Jiajia Huang(CEO)

Who are the CEO and CFO of the company? - David Chung

2023Q3: We continued to invest in our growth initiatives focusing on our selected markets where we see high growth potential and significant market demand. - Jiajia Huang(CEO)

Contradiction Point 2

Accounting Firm Change and Investor Base

It involves a strategic decision to change the accounting firm, which could impact the company's perceived image and investor base.

No questions were raised during the Q&A session? - Operator

20251208-2025 Q3: We appreciate the service quality and professionalism of our previous auditor, Marcum. However, many investors have mandates about the auditor, especially the Big 4. Therefore, we chose E&Y to widen our investor base and allow more investors who have such mandates to consider investing in COE. - Jiajia Huang(Founder, Chairman & CEO)

Why did we switch accounting firms from Marcum to Ernst & Young, and what factors influenced this decision? - Toby Lu (Private Investor)

2025Q2: We appreciate the service quality and professionalism of our previous auditor, Marcum. However, many investors have mandates about the auditor, especially the Big 4. Therefore, we chose E&Y to widen our investor base and allow more investors who have such mandates to consider investing in COE. - Jiajia Huang(Founder, Chairman & CEO)

Contradiction Point 3

Gross Billings Growth

It involves changes in financial performance, specifically regarding gross billings growth, which are critical indicators for investors.

Are there any prepared remarks before opening questions? - David Chung

20251208-2025 Q3: Gross billings grew by 11.3% quarter-over-quarter to USD 10.9 million at the high end of guidance. - Chun Tang(CFO)

What follows the prepared remarks? - David Chung

2023Q3: Gross billings grew by 11.3% quarter-over-quarter to USD 10.9 million at the high end of guidance. - Chun Tang(CFO)

Contradiction Point 4

Revenue Growth and Guidance

It involves changes in financial performance, specifically regarding revenue growth, which are critical indicators for investors.

Are prepared remarks concluding and opening the line for questions? - David Chung

20251208-2025 Q3: Our business momentum carried into the third quarter as net revenues were USD 7.8 million, representing 25.0% sequential growth. - Chun Tang(CFO)

Is the company prepared to address questions now? - David Chung

2023Q3: Our business momentum carried into the third quarter as net revenues were USD 7.8 million, representing 25.0% sequential growth. - Chun Tang(CFO)

Contradiction Point 5

Intent to Increase Liquidity

It involves the company's stance on increasing liquidity, which can impact stock market dynamics and investor interest.

Are there any material changes in your Q2 guidance compared to previous estimates? - David Chung (Host)

20251208-2025 Q3: Our liquidity is low, but currently, we don't have any plans to increase it through stock splits or other alternatives. We are focusing on improving our operations to create sustainable value for investors. In the future, we will consider these alternatives. - Chun Tang(CFO)

Are there plans to boost liquidity through stock splits or other incentives? - Chun Tang (Private Investor)

2025Q2: Our liquidity is low, but currently, we don't have any plans to increase it through stock splits or other alternatives. We are focusing on improving our operations to create sustainable value for investors. In the future, we will consider these alternatives. - Chun Tang(CFO)