51Talk Online Education Group, a global online education platform specializing in English education, recently announced its unaudited results for the second quarter of 2024. The company reported impressive financial and operating highlights, showcasing significant growth and positive momentum in its key metrics.
In the second quarter of 2024, 51Talk saw a substantial increase in gross billings, reaching US$15.9 million, a 61.3% growth from the same period in 2023. Net revenues also experienced a significant surge, reaching US$11.0 million, a 75.1% increase from the previous year. The number of quarterly active students with attended lesson consumption also saw a remarkable growth, with approximately 54,400 students in the second quarter of 2024, representing an 83.2% increase from the same period in 2023.
The company’s Founder, Chairman, and CEO, Jack Jiajia Huang, expressed satisfaction with the strong growth achieved in Q2, surpassing the company’s guidance. He highlighted the strategic investments made across various markets, which have yielded positive results and positioned 51Talk as a leading EdTech company globally. Huang emphasized the importance of localization efforts and understanding individual markets to meet specific needs, leading to improved product-market fit.
Furthermore, 51Talk’s strategy focuses on global expansion based on local needs and platform strength enabled by AI. The company actively explores new market opportunities aligned with its strategic direction and existing product offerings. By making targeted investments to enhance team efficiency and local customer experience, 51Talk aims to drive higher retention rates and increase customer referrals.
In terms of financial results, 51Talk reported a gross profit of US$8.6 million for the second quarter of 2024, a 74.5% increase from the same period in 2023. Operating expenses also increased, with total operating expenses reaching US$11.0 million, a 39.7% increase from the previous year. Despite this, the company managed to reduce its operating loss to US$2.4 million, compared to US$3.0 million in the second quarter of 2023.
Looking ahead, 51Talk provided an outlook for the third quarter of 2024, expecting net gross billings to be between $17.0 million and $18.0 million, representing a sequential growth of 7.2% to 13.5%. The company remains optimistic about its future performance and continues to focus on delivering quality education through its online platform.
In conclusion, 51Talk Online Education Group’s second-quarter results reflect a period of significant growth and strategic advancements. With a strong focus on global expansion, localization efforts, and platform enhancements, the company is well-positioned to continue its trajectory towards becoming a leading player in the EdTech industry.
