SINGAPORE, Sept. 6, 2022 /PRNewswire/ -- 51Talk (NYSE: COE) released its unaudited financial results for the second quarter of 2022. The results show that 51Talk had performed well as operating income from overseas businesses in the second quarter reached $3.5 million, with a 87.7% YoY increase and gross margin of 79.2%.
Product + Technology + Effect: Three-Pronged Approach Creates New Drive for Rapid Growth
From key financial data and operational indicators in the second quarter, the revenue and net cash income of 51Talk from overseas business were US$3.5 million with an 87.7% YoY increase and gross margin of 79.2%, and US$7.8 million with a 46.5% YoY increase, respectively. Continuous revenue growth, high gross margin, good cash flow and strong risk capacity are the keys to 51Talk's rapid growth, and these outstanding figures are closely linked with 51Talk's exceptional curriculum, advanced technology and continuous upgrading of services.
Leading global Internet tech-based education company 51Talk is headquartered in Singapore and is listed on the New York Stock Exchange on 10 June 2016. It provides English tuition to young users aged 3-18 and adults aged 18 and above worldwide.
Since its inception, 51Talk has been building a global team of experts and continues to refine its curriculum. 51Talk has always been committed to the field of English education, and has achieved excellent results with our enlightenment education and small class teaching for preschool and primary school students and classic courses for teenage students.
In order to cultivate interest in learning and hone English thinking skills of young users worldwide, 51Talk has developed a special H5 interactive course based on CEFR English levels. Rich in content, the course offers over hundreds of interesting activities such as role-play, treasure hunt, and bubble shooter games. By learning through playing, the learning experience becomes more interesting and effective than spoon-feeding education, and having multiple levels of courses facilitates teaching in becoming more scientific and systematic as well as becoming more personalized.
In terms of technological developments, 51Talk has independently developed the industry's first audio and video teaching system - online classroom AirClass. Teachers and students can interact with each other freely through the Internet for various activities. Through closed-loop big data collection technology, comprehensive data is collected from students' learning plans, cultivation of learning habits, dialogs in classes, exercises after class, and assessments to enhance students' experience. In particular, the speech recognition technology used in class processes speech in milliseconds, accurately evaluating students' English verbal skills and analyzing their shortcomings in speech, language sense, and speaking continuously for making targeted corrections so as to guarantee learning results.
In addition to products and technology, 51Talk strives to provide quality service. Custom services are provided to students worldwide with comprehensive tracking of their learning progress and outcomes. Students' learning outcomes are evaluated at every stage and their learning progress and interaction are quantified to get a better grasp of students' situation.
51Talk has relied on the three-pronged approach in entering international markets and achieved rapid growth as well as receiving praise from users worldwide.
Praised By Worldwide Users, Good Reputation Contributes to Position as Industry Leader
Founder, Chairman and CEO of 51Talk Mr. Jiajia Huang said, "In the second quarter, we have 8,100 students paying and 14,900 active students, reaching a 25% YoY increase and 60% YoY increase, respectively. In addition, the cash flow of our overseas business reached a break-even point in May and June. This reflects a strong execution of our strategy for growing overseas businesses in a healthy way.
In a user experience survey done by journalists, a 51Talk user said, "Teachers at 51Talk are passionate and lively. I felt a strong sense of involvement and my interest of learning was stimulated. The results were quite good. Teachers at 51Talk sparked my interest in learning English."
Related information also shows that 51Talk has placed building a professional teaching team as the top priority of the company. 51Talk was the first to set a 5A good foreign teacher standard to strictly control the quality of teachers, with the acceptance rate of all foreign teachers at 3%. It also provides no less than 100 hours of professional training for teachers so they can be equipped with professional skills and a science-based learning philosophy before working. After they become 51Talk teachers, they are evaluated by a five-star rating system and supervised by a team of teacher supervisors. 51Talk has more than 20.000 quality foreign teachers worldwide.
Over the years, 51Talk's professional image has been deeply rooted in people's hearts, and 51Talk students are proving their English ability with results. At the age of 9, 51Talk student Li Zilin gave an English speech at the United Nations Climate Change Conference, and at the age of 10, 51Talk student Shum Kuanyi won the first overall championship of the "English Talent Competition" in Cambridge. 51Talk has been gaining recognition from users worldwide with its results. Up until now, 51Talk students come from 50 countries and regions around the world, and the total number of lessons held has exceeded 100 million.
In the future, 51Talk will empower the global education industry with its actions, cultivate the global online education market, and steadily achieve its corporate mission of "Empowering everyone to speak to the world".
