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- **Record Growth**: 104.6% year-over-year gross billings to USD 40.5 million, driven by 112,600 active students.
- **Market Expansion**: COP30 participation highlights global reach with students from 5 countries.
- **Financial Focus**: Despite 87.5% revenue growth, operating loss widened due to 97.9% increase in expenses, primarily sales and marketing.
- **Q4 Outlook**: Guidance of USD 35-38 million gross billings signals continued growth momentum.

**【CEO Summary Section】**
- **Revenue Growth**: Gross billings reached USD 40.5 million, surpassing guidance with a 42.1% quarter-over-quarter increase and 104.6% year-over-year growth.
- **Student Expansion**: Active student base reached 112,600, marking the first time surpassing 100,000 since global expansion began 3 years ago.
- **Cash Flow Discipline**: Maintained positive net operating cash flow, solidifying the company's financial position.
- **Market Expansion**: Students from 5 countries participated in COP30, showcasing diversification into new markets.

**【CFO Financial Commentary】**
- **Net Revenues**: USD 26.3 million, up 87.5% year-over-year, driven by increased active students.
- **Gross Margin**: 73.3%, reflecting operational efficiency.
- **Operating Expenses**: USD 23.4 million (97.9% YoY increase), with sales and marketing expenses rising 114.7% due to marketing activities and personnel expansion.
- **Loss Metrics**: Operating loss of USD 4.2 million and net loss of USD 4.8 million, both significantly higher year-over-year.
- **EPS**: GAAP EPS (-USD 0.8) and Non-GAAP EPS (-USD 0.74) indicate ongoing challenges.
- **Liquidity**: USD 36.6 million in cash and USD 70.7 million in student advances.
- **Q4 Guidance**: Gross billings expected between USD 35 million and USD 38 million.

51Talk Online Education Group(COE)-20251208-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

COE

COE fundamentals

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