51Talk(NYSE: COE), a leading online English education platform in China, released its financial report in Q1 2020 fiscal year, showing a gross billing of 597 million yuan, an increase of 31.9% year-on-year. Net revenues increased to 487 million yuan, with an increase of 52.2%.

Additionally, Non-GAAP net income was 57 million yuan, and the gross profit margin was 70.4%. GAAP net income was 50.8 million yuan, compared with 1.52 million yuan for the fourth quarter of 2019. According to Min Xu, Chief Financial Officer of 51Talk, excluding the impact of coronavirus, the company’s GAAP and non-GAAP net profit margin was 7.0% and 8.2%. The operating cash flow was 172.7 million yuan, representing an increase of 164.3 million yuan for the same period. The financial report also shows that the number of active students in the first quarter of 2020 was 286,600, a 26.0% increase from 227,400 for the same quarter last year. Meanwhile, the average revenue per active student showed a rise of 20.7% year-on-year.

In particular, K-12 one-on-one business net revenues increased by 76.7% year-over-year to 404.2 million yuan, driven by an increasing average income from students and the number of active students.

Besides, total operating expenses for the first quarter of 2020 were 314.9 million yuan, a 13.2% increase from the 278.1 million yuan for the same quarter last year. The increase was due to higher costs in sales and marketing expenses, partially offset by decreases in product development expenses and general and administrative expenses.