51Talk Online Education Group ("51Talk" or the "Company") (NYSE American: COE), a global online education platform with core expertise in English education, announced its interim unaudited results for the second quarter ended June 30, 2023.
Gross billings for the second quarter of 2023 were US$9.8 million, US$0.3 million more than the high-end of outlook and a 21.0% growth from the first quarter of 2023. In comparison, sales and marketing expenses for the second quarter of 2023 grew by only 15.0% on a quarter-over-quarter basis, highlighting the success of our marketing campaigns during this quarter.
The number of active students with attended lesson consumption was approximately 29,700 in the second quarter of 2023, representing 17.9% sequential growth and a 99.3% increase from 14,900 for the second quarter of 2022. This is mainly a result of 51Talk's global market localization strategy, which includes the localizations of talents, products and services.
Addressing the needs of the local markets, thereby doubling users
"Our growth momentum continued in the second quarter with gross billings coming in above guidance. Our continued growth and improved operating metrics confirm our approach to concentrate our resources on existing markets." said Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk.
51Talk adopts a high-touch localization strategy. 51Talk attracts local talent and establishes local offices and operational bases in the geographies the company ventures into. The local teams are important to adopt the product and service delivery to the specific business environment and the educational situation. The strong local footprint accelerates the development of individual markets and enables relevant, customized high-quality services.
The localization of the product is essential to meeting the specific demands of each individual market. The product is adapted to the culture, social reality and educational requirements of each market. 51Talk builds a deep understanding of each geography it operates in. This understanding is fed back to the centralized R&D and product design functions to enable a value proposition tailored to local preferences. Thanks to this approach, 51Talk seamlessly integrates into regional learning habits.
The curriculum of 51Talk is fully animated and gamified to provide a fun learning experience and cultivate an interest in learning English among young students. 51Talk integrates industry-leading artificial intelligence technology for a more engaging and interactive online learning experience.
Beyond the prioritized geographies where 51Talk seeks market penetration, the company's international business has reached students from over 50 countries and regions worldwide. This widespread coverage reflects the attractiveness of 51Talk’s learning solutions for diverse young learners from all parts of the world.