51Talk(NYSE: COE), a Chinese online education provider with core expertise in English learning, recently announced its unaudited financial results for the third quarter ended September 30, 2020. According to the report, the company’s net revenues were RMB538.5 million (US$79.3 million), a 31.8% increase year-on-year. Non-GAAP net income was RMB38.5million and GAAP net income was RMB31.6 million. The operating cash inflow was RMB186.1 million (US$27.4 million), compared with RMB123.2 million operating cash inflow for the third quarter of 2019.
The report shows that the gross billings in Q3 2020 were RMB728.4 million (US$107.3 million), a 33.1% increase year-on-year. The increase in the net revenue was mainly attributed to the increase in the number of active students, which increased by 30.9% compared to the same period in the last year. And the average revenue per active student in the reporting period increased by 0.7% year-on-year. Moreover, the contribution from K-12 one-on-one mass market offering grew by 46.0% year-over-year to hit RMB471.8 million.
And the total operating expenses for the third quarter of 2020 were RMB379.6 million (US$55.9 million), increased by 26.8% from RMB299.4 million for the same quarter last year. The increase was the result of an increase in sales and marketing expenses, general and administrative expenses, and product development expenses.
Total operating expenses for the third quarter of 2020 were RMB379.6 million (US$55.9 million), a 26.8% increase from RMB299.4 million for the same quarter last year. The increase was the result of an increase in sales and marketing expenses, general and administrative expenses, and product development expenses.
As of September 30, 2020, 51Talk’s cash, cash equivalents, time deposits, and short-term investments balance reached RMB1,592.5 million (US$234.5 million).
For the fourth quarter of 2020, the net revenues are expected to be between RMB525 million to RMB530 million, which would represent an increase of approximately 32.2% to 33.4% year-on-year.
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