BEIJING, June 14, 2019
/PRNewswire/ -- China Online Education Group ("51Talk" or the
"Company") (NYSE:COE), a leading online education platform in
China, with core expertise in
English education, today announced its unaudited financial results
for the first quarter ended March 31, 2019.
First Quarter 2019 Financial and Operating
Highlights
- Net revenues were RMB323.0
million (US$48.1 million), a
23.0% increase from RMB262.6 million
for the first quarter of 2018.
- Gross billings were RMB452.5
million (US$67.4 million), a
27.4% increase from RMB355.3 million
for the first quarter of 2018.
- Gross margin was 67.3%, compared with 64.6% for the first
quarter of 2018.
- Non-GAAP net loss was RMB59.5
million, a 55.1% decrease from RMB132.4 million for the fourth quarter of
2018.
- Operating cash inflow was RMB8.4
million (US$1.2 million).
Key Operating Data
|
For the three
months ended
|
|
|
|
March
31,
|
|
March
31,
|
|
Y-o-Y
|
|
2018
|
|
2019
|
|
Change
|
|
|
|
|
|
|
Gross billings (in
RMB millions)
|
355.3
|
|
452.5
|
|
27.4%
|
K-12 mass-market
one-on-one offering
|
224.7
|
|
389.7
|
|
73.4%
|
K-12 small
class offering
|
36.9
|
|
14.9
|
|
(59.6%)
|
Adult
offering
|
57.4
|
|
33.1
|
|
(42.3%)
|
K-12 American Academy
one-on-one offering
|
36.3
|
|
14.8
|
|
(59.2%)
|
Active
students[2] (in thousands)
|
190.8
|
|
227.4
|
|
19.2%
|
"We had a solid start in 2019, with both revenues and gross
billings topping the high end of our guidance," said Mr.
Jack Jiajia Huang, Founder, Chairman
and Chief Executive Officer of 51Talk. "Our first quarter results
reflect the successful and consistent execution of our strategic
initiatives which focus on our flourishing K-12 one-on-one
mass-market program in China's
lower-tier cities.
"We continue to streamline our business to focus our resources
on providing high-quality programs for the growing K-12 market.
With a solid presence in the largely saturated tier-one
cities[3], we are keenly focused on bringing our
programs to China's large and
underserved markets in non-tier-one cities. Through targeted
marketing and growing referrals, our offerings are being well
received in these areas, with gross billings continually growing.
In the first quarter our gross billings from non-tier-one cities
accounted for 72.8% of our K-12 mass-market one-on-one offerings,
compared with 63.0% a year ago. Our goal, as we move through the
year, is to continue to make learning accessible throughout
China by bringing our educational
offerings to underserved markets where we can leverage our existing
programs. At the same time, we will strive to improve our
technology and course offerings to create additional value for our
students, teachers and all of our stakeholders," Mr. Huang
concluded.
Mr. Min Xu, Chief Financial
Officer of 51Talk, added, "The diligent execution of our K-12
penetration and alignment strategy contributed to our improved
bottom line and healthy growth in the first quarter. We reduced our
Non-GAAP net loss by 55.1% to RMB59.5
million, from RMB132.4 million
for the fourth quarter of 2018, and our one-on-one business gross
billings grew by 37.4% year-over-year. In addition, consolidated
gross margin expanded by 270 basis points to 67.3% and gross profit
increased by 28.1% to RMB217.2
million, both on a year-over-year basis. Through enhanced
product quality and improving services, emphasis on referrals, and
prudent cost control, we believe continuous calibration of these
levers will support our continued growth and further improve our
bottom line."
[1] Gross billings for a specific
period, which is one of the Company's key operating data, is
defined as the total amount of cash received for the sale of course
packages and services in such period, net of the total
amount of refunds in such period.
|
[2] An "active student" for a
specified period refers to a student who booked at least one
paid lesson, excluding those students who only attended paid live
broadcasting lessons or trial lessons.
|
[3]
Tier-one cities include Beijing, Shanghai, Shenzhen and
Guangzhou.
|
First Quarter 2019 Financial
Results
Net Revenues
Net revenues for the first quarter of 2019 were RMB323.0 million (US$48.1
million), a 23.0% increase from RMB262.6 million for the first quarter of
2018. The increase was primarily attributed to an increase in the
number of active students. The number of active students for
the first quarter of 2019 was approximately 227,400, a
19.2% increase from approximately 190,800 for the first
quarter of 2018.
Net revenues from one-on-one offerings for the first quarter of
2019 were RMB295.5 million
(US$44.0 million), a 20.4% increase
from RMB245.5 million for the first
quarter of 2018. Net revenues from small class offerings for the
first quarter of 2019 were RMB27.5
million (US$4.1 million),
compared with RMB17.1 million for the
first quarter of 2018.
Cost of Revenues
Cost of revenues for the first quarter of 2019 was RMB105.7 million (US$15.8 million), a 13.8% increase from
RMB92.9 million for the first quarter
of 2018. The increase was primarily driven by an increase in total
service fees paid to teachers, mainly due to an increased
number of paid lessons.
Cost of revenues of one-on-one offerings for the first quarter
of 2019 was RMB90.8 million
(US$13.5 million), a 12.0% increase
from RMB81.1 million for the first
quarter of 2018. Cost of revenues of small class offerings for the
first quarter of 2019 was RMB14.9
million (US$2.2 million), a
26.1% increase from RMB11.8 million
for the first quarter of 2018.
Gross Profit and Gross Margin
Gross profit for the first quarter of 2019 was RMB217.2 million (US$32.4 million), a 28.1% increase from
RMB169.6 million for the first
quarter of 2018.
Gross margin for the first quarter of 2019 was 67.3%, compared
with 64.6% for the first quarter of 2018.
One-on-one offerings gross margin for the first quarter of
2019 was 69.3%, compared with 67.0% for the first quarter of
2018. The increase was mainly attributable to the inclusion of
the Company's audio picture book in course packages, which carries
a higher margin. 51Talk's small class offering gross
margin for the first quarter of 2019 was 45.7%, compared with
30.7% for the first quarter of 2018.
Operating Expenses
Total operating expenses for the first quarter of 2019 were
RMB278.1 million (US$41.4 million), a 0.7% decrease from
RMB280.2 million for the first
quarter of 2018.
Sales and marketing expenses for the first quarter of 2019 were
RMB186.3 million (US$27.8 million), an 8.6% increase from
RMB171.6 million for the first
quarter of 2018. The increase was mainly due
to higher sales personnel costs related to an increase in the
number of sales and marketing personnel. Excluding share-based
compensation expenses, non-GAAP sales and marketing
expenses for the first quarter of 2019 were RMB186.0 million (US$27.7 million), a 9.2% increase from
RMB170.4 million for the
first quarter of 2018.
Product development expenses for the first quarter of 2019 were
RMB40.7 million (US$6.1 million), a 22.1% decrease from
RMB52.2 million for the first
quarter of 2018. The decrease was primarily due to a
decrease in the number of personnel. Excluding share-based
compensation expenses, non-GAAP product
development expenses for the first quarter of
2019 were RMB40.1 million
(US$6.0 million), a 20.8% decrease
from RMB50.7 million for the
first quarter of 2018.
General and administrative expenses for the first quarter of
2019 were RMB51.2 million
(US$7.6 million), a 9.2% decrease
from RMB56.4 million for the
same quarter last year. Excluding share-based compensation
expenses, non-GAAP general and administrative expenses for the
first quarter of 2019 were RMB48.1
million (US$7.2 million), an
8.4% decrease from RMB52.6 million for the same quarter last
year.
Loss from Operations
Loss from operations for the first quarter of 2019 was
RMB60.9 million (US$9.1 million), compared with
RMB110.5 million for the first
quarter of 2018.
Non-GAAP loss from operations for the first quarter of 2019 was
RMB57.0 million (US$8.5 million), compared with
RMB104.0 million for the first
quarter of 2018.
Net Loss
Net loss for the first quarter of 2019 was RMB63.3 million (US$9.4 million), compared with
RMB112.7 million for the first
quarter of 2018.
Non-GAAP net loss for the first quarter of 2019 was RMB59.5 million (US$8.9 million), compared with
RMB106.1 million for the first
quarter of 2018.
Basic and diluted net loss per American depositary share
("ADS") attributable to ordinary shareholders for the first
quarter of 2019 was RMB3.15
(US$0.45), compared with RMB5.55 for the first quarter of 2018. Each
ADS represents 15 Class A ordinary shares.
Non-GAAP basic and diluted net loss per ADS attributable to
ordinary shareholders for the first quarter of 2019 was
RMB2.85 (US$0.45), compared with RMB5.25 for the first quarter of 2018.
Balance Sheet
As of March 31, 2019, the Company had total cash, cash
equivalents, time deposits and short-term investments of
RMB697.1 million (US$103.9 million), compared with
RMB712.1 million as of
December 31, 2018.
The Company had deferred revenues (current and non-current) of
RMB1,780.2 million (US$265.3 million) as of March 31, 2019,
compared with RMB1,676.1 million as
of December 31, 2018.
Impact of Recently Adopted New Accounting
Standard
In February 2016, the FASB issued
ASU 2016-02 "Leases", which generally requires lessees to recognize
operating and financing lease liabilities and corresponding
right-of-use assets on the balance sheet and to provide enhanced
disclosures surrounding the amount, timing and uncertainty of cash
flows arising from leasing arrangements. The Company adopted the
new standard on January 1, 2019 on a
modified retrospective basis and did not restate comparative
periods. The Company recognized approximately RMB55.8 million as total right-of-use assets and
RMB54.2 million as total lease
liabilities for the operating leases on its consolidated balance
sheet as of January 1, 2019. Other
than the foregoing, the new lease standard did not have a material
impact on the Company's consolidated financial statements.
Outlook
For the second quarter of 2019, the Company currently
expects:
- Net revenues to be between RMB342
million to RMB347 million,
which would represent an increase of approximately 21.4% to 23.2%
from RMB281.7 million for the same
quarter last year;
- Total gross billings to be between RMB465 million to RMB470
million, which would represent an increase of approximately
10.7% to 11.9% from RMB420.0 million
for the same quarter last year.
- Gross billings for the Company's one-on-one business are
expected to be between RMB433 million
to RMB438 million, which would
represent an increase of approximately 15.0% to 16.3% from
RMB376.5 million for the same quarter
last year.
- Gross billings for 51Talk's small class business are expected
to be approximately RMB32 million,
which would represent a decrease of approximately 26.4% from
RMB43.5 million for the same quarter
last year.
The above outlook is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions and customer demand, which are all subject
to change.
Conference Call
The Company's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on
June 14, 2019 (8:00 PM Beijing/Hong
Kong time on June 14,
2019).
Dial-in details for the earnings conference call are as
follows:
United States (toll
free):
|
1-866-264-5888
|
International:
|
1-412-317-5226
|
Hong Kong (toll
free):
|
800-905-945
|
Hong Kong:
|
852-3018-4992
|
China:
|
400-120-1203
|
Participants should dial-in at least 5 minutes before the
scheduled start time and ask to be connected to the call for "China
Online Education Group."
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website at
http://ir.51talk.com.
A replay of the conference call will be accessible until
June 21, 2019, by dialing the
following telephone numbers:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10131480
|
About China Online Education Group
China Online Education Group (NYSE: COE) is a leading online
education platform in China, with
core expertise in English education. The Company's mission is to
make quality education accessible and affordable. The Company's
online and mobile education platforms enable students across
China to take live interactive
English lessons with overseas foreign teachers, on demand. The
Company connects its students with a large pool of highly qualified
foreign teachers that it assembled using a shared economy approach,
and employs student and teacher feedback and data analytics to
deliver a personalized learning experience to its students.
Use of Non-GAAP Financial Measures
In evaluating its business, 51Talk considers and uses the
following measures defined as non-GAAP financial measures by the
SEC as supplemental metrics to review and assess its operating
performance: non-GAAP sales and marketing expenses, non-GAAP
product development expenses, non-GAAP general and administrative
expenses, non-GAAP operating expenses, non-GAAP loss from
operations, non-GAAP income tax expenses, non-GAAP net loss,
non-GAAP net loss attributable to ordinary shareholders, and
non-GAAP net loss attributable to ordinary shareholders per share
and per ADS. To present each of these non-GAAP measures, the
Company excludes share-based compensation expenses. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see
the table captioned "Reconciliations of non-GAAP measures to the
most comparable GAAP measures" set forth at the end of this press
release.
51Talk believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance by
excluding share-based expenses that may not be indicative of its
operating performance from a cash perspective. 51Talk believes that
both management and investors benefit from these non-GAAP financial
measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to 51Talk's historical
performance. 51Talk computes its non-GAAP financial measures using
the same consistent method from quarter to quarter and from period
to period. 51Talk believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision-making. A limitation of using
non-GAAP measures is that these non-GAAP measures exclude
share-based compensation expenses that have been and will continue
to be for the foreseeable future a significant recurring expense in
the 51Talk's business. Management compensates for these limitations
by providing specific information regarding the GAAP amounts
excluded from each non-GAAP measure. The accompanying table at the
end of this press release provides more details on the
reconciliations between GAAP financial measures that are most
directly comparable to non-GAAP financial measures.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB
to U.S. dollars are made at a rate of RMB6.7112 to US$1.00, the rate in effect as of March 29, 2019 as certified for customs
purposes by the Federal Reserve Bank of New York.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking" statements pursuant to the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will", "expects", "anticipates", "aims",
"future", "intends", "plans", "believes", "estimates", "likely to"
and similar statements. Among other things, 51Talk's business
outlook and quotations from management in this announcement, as
well as 51Talk's strategic and operational plans, contain
forward-looking statements. 51Talk may also make written or oral
forward-looking statements in its periodic reports to the
Securities and Exchange Commission ("SEC"), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about 51Talk's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: 51Talk's goals and strategies; 51Talk's expectations
regarding demand for and market acceptance of its brand and
platform; 51Talk's ability to retain and increase its student
enrollment; 51Talk's ability to offer new courses; 51Talk's ability
to engage, train and retain new teachers; 51Talk's future business
development, results of operations and financial condition;
51Talk's ability to maintain and improve infrastructure necessary
to operate its education platform; competition in the online
education industry in China; the
expected growth of, and trends in, the markets for 51Talk's course
offerings in China; relevant
government policies and regulations relating to 51Talk's corporate
structure, business and industry; general economic and business
condition in China, the Philippines and elsewhere and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in 51Talk's filings
with the SEC. All information provided in this press release is as
of the date of this press release, and 51Talk does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please contact:
China Online Education Group
Investor Relations
+86 (10) 8342-6262
ir@51talk.com
The Piacente Group, Inc.
Brandi Piacente
+86 (10) 6508-0677
+1-212-481-2050
51talk@tpg-ir.com
CHINA ONLINE
EDUCATION GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
Dec.
31,
|
|
Mar.
31,
|
|
Mar.
31,
|
|
|
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
413,143
|
|
247,006
|
|
36,805
|
|
|
Time
deposits
|
|
162,688
|
|
193,925
|
|
28,896
|
|
|
Short term
investment
|
|
136,304
|
|
256,157
|
|
38,169
|
|
|
Inventory
|
|
-
|
|
508
|
|
76
|
|
|
Prepaid expenses and
other current assets
|
|
242,499
|
|
259,525
|
|
38,670
|
|
Total current
assets
|
|
954,634
|
|
957,121
|
|
142,616
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
35,341
|
|
29,938
|
|
4,461
|
|
|
Intangible assets,
net
|
|
11,790
|
|
10,701
|
|
1,594
|
|
|
Goodwill
|
|
4,223
|
|
4,223
|
|
629
|
|
|
Right of use
assets
|
|
-
|
|
46,238
|
|
6,890
|
|
|
Other non-current
assets
|
|
4,230
|
|
5,976
|
|
890
|
|
Total non-current
assets
|
|
55,584
|
|
97,076
|
|
14,464
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
1,010,218
|
|
1,054,197
|
|
157,080
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
AND SHAREHOLDERS'
DEFICIT
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Short-term
loan
|
|
-
|
|
54,714
|
|
8,153
|
|
|
Deferred
revenues
|
|
1,658,800
|
|
1,770,613
|
|
263,830
|
|
|
Accrued expenses and
other current liabilities
|
|
209,910
|
|
183,343
|
|
27,319
|
|
|
Lease
liability
|
|
-
|
|
27,833
|
|
4,147
|
|
|
Taxes
payable
|
|
16,917
|
|
17,577
|
|
2,619
|
|
Total current
liabilities
|
|
1,885,627
|
|
2,054,080
|
|
306,068
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Long-term
loan
|
|
69,045
|
|
-
|
|
-
|
|
|
Deferred
revenues
|
|
17,321
|
|
9,635
|
|
1,436
|
|
|
Deferred tax
liabilities
|
|
21
|
|
-
|
|
-
|
|
|
Lease
liability
|
|
-
|
|
17,247
|
|
2,570
|
|
|
Other non-current
liabilities
|
|
853
|
|
880
|
|
131
|
|
Total non-current
liabilities
|
|
87,240
|
|
27,762
|
|
4,137
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,972,867
|
|
2,081,842
|
|
310,205
|
|
|
|
|
|
|
|
|
|
Total shareholders'
deficit
|
|
(962,649)
|
|
(1,027,645)
|
|
(153,125)
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' deficit
|
|
1,010,218
|
|
1,054,197
|
|
157,080
|
|
CHINA ONLINE
EDUCATION GROUP
|
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
|
|
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Mar.
31,
|
|
Mar.
31,
|
|
|
|
|
|
2018
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Net
revenues
|
|
262,577
|
|
298,051
|
|
322,971
|
|
48,124
|
|
|
Cost of
revenues
|
|
(92,929)
|
|
(111,799)
|
|
(105,728)
|
|
(15,754)
|
|
|
Gross
profit
|
|
169,648
|
|
186,252
|
|
217,243
|
|
32,370
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(171,592)
|
|
(212,145)
|
|
(186,287)
|
|
(27,758)
|
|
|
|
Product development
expenses
|
|
(52,240)
|
|
(42,574)
|
|
(40,701)
|
|
(6,065)
|
|
|
|
General and
administrative expenses
|
|
(56,364)
|
|
(60,496)
|
|
(51,159)
|
|
(7,623)
|
|
|
Total operating
expenses
|
|
(280,196)
|
|
(315,215)
|
|
(278,147)
|
|
(41,446)
|
|
|
Loss from
operations
|
|
(110,548)
|
|
(128,963)
|
|
(60,904)
|
|
(9,076)
|
|
|
Impairment
loss
|
|
-
|
|
(7,364)
|
|
-
|
|
-
|
|
|
Interest
income
|
|
1,955
|
|
2,519
|
|
3,051
|
|
455
|
|
|
Interest expenses and
other expenses, net
|
|
(2,999)
|
|
(5,225)
|
|
(4,338)
|
|
(647)
|
|
|
Loss before income
tax expenses
|
|
(111,592)
|
|
(139,033)
|
|
(62,191)
|
|
(9,268)
|
|
|
Income tax
expenses
|
|
(1,070)
|
|
(923)
|
|
(1,148)
|
|
(171)
|
|
|
Net loss
|
|
(112,662)
|
|
(139,956)
|
|
(63,339)
|
|
(9,439)
|
|
|
Net loss attributable
to ordinary shareholders
|
|
(112,662)
|
|
(139,956)
|
|
(63,339)
|
|
(9,439)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
|
|
|
|
|
|
|
|
|
|
|
|
computing basic and
diluted loss per share
|
|
302,871,754
|
|
305,818,165
|
|
306,042,465
|
|
306,042,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
basic and
diluted
|
|
(0.37)
|
|
(0.46)
|
|
(0.21)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA
ONLINE EDUCATION GROUP
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
For the three
months ended
|
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Mar.
31,
|
|
Mar.
31,
|
|
|
|
|
2018
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ADS
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
basic and
diluted
|
|
(5.55)
|
|
(6.90)
|
|
(3.15)
|
|
(0.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(112,662)
|
|
(139,956)
|
|
(63,339)
|
|
(9,439)
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
(10,628)
|
|
4,460
|
|
(5,718)
|
|
(852)
|
|
Total comprehensive
loss
|
|
(123,290)
|
|
(135,496)
|
|
(69,057)
|
|
(10,291)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses are included in the operating expenses as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(1,232)
|
|
(1,584)
|
|
(284)
|
|
(42)
|
|
Product development
expenses
|
|
(1,558)
|
|
(1,855)
|
|
(574)
|
|
(86)
|
|
General and
administrative expenses
|
|
(3,803)
|
|
(4,137)
|
|
(3,012)
|
|
(449)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA ONLINE
EDUCATION GROUP
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(In
thousands except for number of shares and per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Mar.
31,
|
|
Mar.
31,
|
|
|
2018
|
|
2018
|
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(171,592)
|
|
(212,145)
|
|
(186,287)
|
|
(27,758)
|
Less: Share-based
compensation expenses
|
|
(1,232)
|
|
(1,584)
|
|
(284)
|
|
(42)
|
Non-GAAP sales and
marketing expenses
|
|
(170,360)
|
|
(210,561)
|
|
(186,003)
|
|
(27,716)
|
|
|
|
|
|
|
|
|
|
Product development
expenses
|
|
(52,240)
|
|
(42,574)
|
|
(40,701)
|
|
(6,065)
|
Less: Share-based
compensation expenses
|
|
(1,558)
|
|
(1,855)
|
|
(574)
|
|
(86)
|
Non-GAAP product
development expenses
|
|
(50,682)
|
|
(40,719)
|
|
(40,127)
|
|
(5,979)
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(56,364)
|
|
(60,496)
|
|
(51,159)
|
|
(7,623)
|
Less: Share-based
compensation expenses
|
|
(3,803)
|
|
(4,137)
|
|
(3,012)
|
|
(449)
|
Non-GAAP general and
administrative expenses
|
|
(52,561)
|
|
(56,359)
|
|
(48,147)
|
|
(7,174)
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
(280,196)
|
|
(315,215)
|
|
(278,147)
|
|
(41,446)
|
Less: Share-based
compensation expenses
|
|
(6,593)
|
|
(7,576)
|
|
(3,870)
|
|
(577)
|
Non-GAAP operating
expenses
|
|
(273,603)
|
|
(307,639)
|
|
(274,277)
|
|
(40,869)
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(110,548)
|
|
(128,963)
|
|
(60,904)
|
|
(9,076)
|
Less: Share-based
compensation expenses
|
|
(6,593)
|
|
(7,576)
|
|
(3,870)
|
|
(577)
|
Non-GAAP loss from
operations
|
|
(103,955)
|
|
(121,387)
|
|
(57,034)
|
|
(8,499)
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
(1,070)
|
|
(923)
|
|
(1,148)
|
|
(171)
|
Less: Tax impact of
Share-based compensation expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
Non-GAAP income tax
expenses
|
|
(1,070)
|
|
(923)
|
|
(1,148)
|
|
(171)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(112,662)
|
|
(139,956)
|
|
(63,339)
|
|
(9,439)
|
Less: Share-based
compensation expenses
|
|
(6,593)
|
|
(7,576)
|
|
(3,870)
|
|
(577)
|
Non-GAAP net
loss
|
|
(106,069)
|
|
(132,380)
|
|
(59,469)
|
|
(8,862)
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to ordinary shareholders
|
|
(112,662)
|
|
(139,956)
|
|
(63,339)
|
|
(9,439)
|
Less: Share-based
compensation expenses, net of tax
|
|
(6,593)
|
|
(7,576)
|
|
(3,870)
|
|
(577)
|
Non-GAAP net loss
attributable to ordinary shareholders
|
|
(106,069)
|
|
(132,380)
|
|
(59,469)
|
|
(8,862)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
computing basic and diluted loss per
share
|
|
302,871,754
|
|
305,818,165
|
|
306,042,465
|
|
306,042,465
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
share attributable to ordinary shareholders
basic and diluted
|
|
(0.35)
|
|
(0.43)
|
|
(0.19)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
ADS attributable to ordinary shareholders
basic and diluted
|
|
(5.25)
|
|
(6.45)
|
|
(2.85)
|
|
(0.45)
|
CHINA ONLINE
EDUCATION GROUP
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
For the three
months ended
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Mar.
31,
|
|
Mar.
31,
|
|
|
|
2018
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
245,486
|
|
266,459
|
|
295,455
|
|
44,024
|
Small class offerings
|
|
17,091
|
|
31,592
|
|
27,516
|
|
4,100
|
Total net
revenues
|
|
262,577
|
|
298,051
|
|
322,971
|
|
48,124
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
(81,085)
|
|
(89,028)
|
|
(90,791)
|
|
(13,528)
|
Small class
offerings
|
|
(11,844)
|
|
(22,771)
|
|
(14,937)
|
|
(2,226)
|
Total cost of
revenues
|
|
(92,929)
|
|
(111,799)
|
|
(105,728)
|
|
(15,754)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
164,401
|
|
177,431
|
|
204,664
|
|
30,496
|
Small class offerings
|
|
5,247
|
|
8,821
|
|
12,579
|
|
1,874
|
Total gross
profit
|
|
169,648
|
|
186,252
|
|
217,243
|
|
32,370
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
67.0%
|
|
66.6%
|
|
69.3%
|
|
69.3%
|
Small class
offerings
|
|
30.7%
|
|
27.9%
|
|
45.7%
|
|
45.7%
|
Total gross
margin
|
|
64.6%
|
|
62.5%
|
|
67.3%
|
|
67.3%
|
|
|
|
|
|
|
|
|
|
|
CHINA ONLINE
EDUCATION GROUP
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(In
thousands except for number of shares and per share
data)
|
|
|
|
For the three
months ended
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Mar.
31,
|
|
Mar.
31,
|
|
|
|
2018
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
(153,928)
|
|
(186,561)
|
|
(170,849)
|
|
(24,458)
|
Small class
offerings
|
|
(17,664)
|
|
(25,584)
|
|
(15,438)
|
|
(2,300)
|
Total sales and
marketing expenses[4]
|
|
(171,592)
|
|
(212,145)
|
|
(186,287)
|
|
(27,758)
|
|
|
|
|
|
|
|
|
|
Product development
expenses
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
(40,881)
|
|
(31,367)
|
|
(35,169)
|
|
(5,241)
|
Small class
offerings
|
|
(11,359)
|
|
(11,207)
|
|
(5,532)
|
|
(824)
|
Total product
development expenses[5]
|
|
(52,240)
|
|
(42,574)
|
|
(40,701)
|
|
(6,065)
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
(47,181)
|
|
(51,647)
|
|
(44,934)
|
|
(6,695)
|
Small class
offerings
|
|
(9,183)
|
|
(8,849)
|
|
(6,225)
|
|
(928)
|
Total general and
administrative expenses[6]
|
|
(56,364)
|
|
(60,496)
|
|
(51,159)
|
|
(7,623)
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
(241,990)
|
|
(269,575)
|
|
(250,952)
|
|
(37,394)
|
Small class
offerings
|
|
(38,206)
|
|
(45,640)
|
|
(27,195)
|
|
(4,052)
|
Total operating
expenses
|
|
(280,196)
|
|
(315,215)
|
|
(278,147)
|
|
(41,446)
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
|
|
|
|
|
|
One-on-one
offerings
|
|
(77,589)
|
|
(92,144)
|
|
(46,288)
|
|
(6,898)
|
Small class
offerings
|
|
(32,959)
|
|
(36,819)
|
|
(14,616)
|
|
(2,178)
|
Total loss from
operations
|
|
(110,548)
|
|
(128,963)
|
|
(60,904)
|
|
(9,076)
|
|
[4]
Share-based compensation expenses included in the sales and
marketing expenses for one-on-one offerings and small
class offerings were RMB279 and RMB5 respectively for the first
quarter of 2019, and RMB1,155 and RMB77 respectively
for the first quarter of 2018.
|
[5]
Share-based compensation expenses, included in the product
development expenses for one-on-one offerings and small
class offerings were RMB300 and RMB274 respectively for the first
quarter of 2019, and RMB1,411 and RMB147 respectively
for the first quarter of 2018.
|
[6]
Share-based compensation expenses, included in the general and
administrative expenses for one-on-one offerings and
small class offerings were RMB2,938 and RMB74 respectively for the
first quarter of 2019, and RMB3,758 and RMB45
respectively for the first quarter of 2018.
|
View original
content:http://www.prnewswire.com/news-releases/china-online-education-group-announces-first-quarter-2019-results-300867723.html
SOURCE China Online Education Group