#Singapore #online education #51Talk #English Learning

Overview

51Talk Online Education Group (NYSE American: COE), an established platform focusing on online English education, revealed its unaudited financial results for the second quarter of 2025, ending on June 30. The numbers reflect robust growth in various operational metrics, illuminating the company's upward trajectory in the competitive online education landscape.

Financial Highlights

In Q2 2025, 51Talk reported gross billings of $28.5 million, marking a substantial 79.7% increase from $15.9 million during the same quarter in 2024. Net revenues also surged to $20.4 million, which is an 86.1% increase compared to $11.0 million from the previous year. These figures underline a well-executed strategy aimed at expanding their educational reach and enhancing service delivery.

The number of active students who participated in lessons during Q2 2025 reached approximately 91,300, evidencing a 67.8% growth from around 54,400 active students in Q2 2024. This significant increase in student engagement highlights the growing demand for quality online education.

Revenue and Expenses

Detailed examination of the financial statements reveals that the cost of revenues for the quarter stood at $5.2 million, which is a 115.9% increase from $2.4 million in the same quarter last year. This rise primarily stemmed from increased service fees paid to teachers due to a higher number of lessons delivered. Despite this, the gross profit surged to $15.2 million, up 77.8% from $8.6 million in the prior-year quarter, leading to a gross margin of 74.6%.

Operating expenses totaled $17.9 million, reflecting a 63.5% increase from $11.0 million last year. A significant portion of this increase was attributed to heightened sales and marketing expenses, which amounted to $12.8 million, demonstrating the company's commitment to enhancing its brand presence.

Operational Insights

Jack Jiajia Huang, the Founder and CEO of 51Talk, commented on the results, stating, "Q2 has been a strong quarter for us. Gross billings exceeded our guidance announced in June 2025, reflecting healthy demand and disciplined execution. We expect this positive momentum to continue in the second half of 2025."

Huang further highlighted the company's initiatives to improve user experience and service quality, which are anticipated to solidify 51Talk's competitive edge in the online education market. He noted, "AI remains integral to our strategy and operations, influencing every aspect of our business. We are committed to developing robust infrastructures and systems necessary to embed AI across our offerings, ensuring exceptional learning experiences for our students."

Future Outlook

Looking forward, 51Talk anticipates net gross billings for Q3 2025 to be between $36.5 million and $37.5 million, projecting a growth of 28.1% to 31.6% sequentially, along with an impressive 84.6% to 89.7% increase year-over-year. This optimistic guidance underscores the company's strategic positioning and market confidence.

The upcoming earnings conference call will take place at 8:00 AM U.S. Eastern Time on September 3, 2025, offering investors and stakeholders further insights into the company’s performance and future direction. Detailed information regarding the call and participation can be accessed via the company's investor relations website.

Conclusion

51Talk's Q2 2025 results demonstrate its effective strategy in scaling its operations and enhancing the quality of online education offerings. With a firm commitment to innovation and user experience, 51Talk is poised for continued success as it navigates the ever-evolving online education landscape.