51Talk Online Education Group (COE) Q4 2024 earnings summary

Executive summary

• Gross billings grew by 74.4% year-over-year for the full year, with net revenues up 87%, reflecting strong business momentum and expansion into new markets.

• Active students with attended lesson consumption rose 87.0% year-over-year to 95,000 in 2024.

• Full-year positive operating cash flow of $5.8 million was achieved, strengthening the cash position.

• Integration of AI improved operational efficiency and narrowed operating losses, with further AI-driven enhancements expected in 2025.

• Expansion into new geographic markets and investment in local teams and localized content supported growth.

Financial highlights

• 2024 net revenues reached $50.7 million, up 87.0% from 2023; Q4 net revenues were $16.2 million, a 117.3% increase year-over-year.

• 2024 gross profit was $39.5 million, up 90.1% year-over-year; gross margin for Q4 was 77.5%.

• Q4 gross billings were $21.4 million, up 93.4% year-over-year.

• 2024 operating loss was $8.0 million (non-GAAP: $7.1 million), improved from $13.7 million in 2023.

• Q4 operating loss was $0.9 million; Q4 net loss attributable to shareholders was $1.4 million, both significantly reduced from the prior year.

Outlook and guidance

• Q1 2025 gross billings are expected to be between $21.5 million and $22 million, up 0.5%–2.9% sequentially and 71.2%–75.2% year-over-year, based on current market and operating conditions.

• Continued focus on AI adoption and efficiency improvements anticipated for 2025.