BEIJING, May 17, 2021 /PRNewswire/ -- China Online
Education Group ("51Talk" or the "Company") (NYSE:COE), a leading
online education platform in China, with core expertise in English
education, announced its unaudited financial results for the first
quarter ended March 31, 2021.
First Quarter 2021 Financial and
Operating Highlights
- Net revenues were RMB600.4
million (US$91.6 million), a
23.3% increase from RMB487.1 million
for the first quarter of 2020.
- Gross margin was 73.4%, compared with 70.4% for the first
quarter of 2020.
- GAAP net income was RMB8.0
million (US$1.2 million),
compared with GAAP net income RMB50.8
million for the first quarter of 2020.
- Non-GAAP net income[1] was RMB16.8 million (US$2.6
million), compared with non-GAAP net income RMB57.0 million for the first quarter of
2020.
- Operating cash inflow was RMB39.0
million (US$6.0 million),
compared with RMB172.7 million cash
inflow for the first quarter of 2020.
- Cash, cash equivalents, time deposits and short-term
investments balance reached RMB1,730.3
million (US$264.1 million) as
of March 31, 2021.
- Gross billings[2] were RMB685.0million (US$104.6
million), a 14.8% increase from RMB596.9 million for the first quarter of
2020.
Key Financial and
Operating Data
|
For the three
months ended
|
|
|
|
Mar.
31,
|
|
Mar.
31,
|
|
Y-o-Y
|
|
2020
|
|
2021
|
|
Change
|
|
|
|
|
|
|
Net
Revenues (in RMB millions)
|
487.1
|
|
600.4
|
|
23.3%
|
K-12 one-on-one mass
market offering
|
404.2
|
|
549.6
|
|
36.0%
|
K-12 small class
offering
|
22.7
|
|
18.2
|
|
(19.8%)
|
Others
|
60.2
|
|
32.6
|
|
(45.8%)
|
|
|
|
|
|
|
Gross
billings (in RMB millions)
|
596.9
|
|
685.0
|
|
14.8%
|
K-12 one-on-one mass
market offering
|
563.5
|
|
660.1
|
|
17.1%
|
K-12 small
class offering
|
11.5
|
|
5.3
|
|
(53.9%)
|
Others
|
21.9
|
|
19.6
|
|
(10.5%)
|
|
|
|
|
|
|
Active
students[3] (in thousands)
|
286.6
|
|
392.7
|
|
37.0%
|
|
|
|
|
|
|
[1] For more information
on non-GAAP financial measures, please see the section of "Use of
Non-GAAP Financial Measures" and the table captioned
"Reconciliation of Non-GAAP Measures to the Most Comparable GAAP
Measures" set forth in this press release.
|
[2] 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.
|
[3] 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.
|
"We are delighted to report another solid quarter as first
quarter net revenue reached RMB600.4
million, a 23.3% year-over-year increase that once again
beat the top end of our guidance," said Mr. Jack Jiajia Huang, Founder, Chairman and Chief
Executive Officer of 51Talk. "Remarkably, our net revenues from K12
one-on-one mass market offering grew 36.0% compared to first
quarter last year. This performance was mainly driven by an
increase in the number of active students, which rose 37.0%
year-over-year. These results illustrate the massive opportunity
that exists in K12 one-on-one mass market with the growing
acceptance of online education.
"In addition to organic growth through our existing strategies,
we have also been pursuing external opportunities with our recent
acquisition of Koala Reading. We are leveraging its expertise in
Chinese reading assessments, and plan to further develop a
trailblazing English reading skill evaluation system that allows us
to improve our product offerings. Furthermore, this acquisition
widens our course offerings with additional Chinese courses, which
is in line with the long term strategy of diversifying our
curriculum portfolio. Along with our efforts in enhancing teacher
operations, optimizing curriculums and developing AI-powered
robotic tutors, the acquisition of Koala Reading is a testament to
our commitment in providing the best learning experience to our
students.
"In order to solidify our leadership in K12 one-on-one mass
market English education, we are focused on ramping up our branding
and marketing efforts and improving student satisfaction while also
investing in product development and upgrading course
offerings and services. We are excited to announce the appointment
of Ms. Maine Mendoza as our latest Brand Ambassador and 51Talk
Guest Teacher. Ms. Maine Mendoza is a well-known Filipino actress
and social media influencer. Her appointment instantly became the
most tweeted event in the
Philippines and further strengthens our brand recognition in
the country. I look forward to continuing to execute our mission to
deliver long term benefits to all stakeholders," concluded Mr.
Huang.
"Starting off 2021 with such a solid financial and operating
performance is well within our expectations," said Mr. Min Xu, Chief Financial Officer of 51Talk. "I am
pleased to report that in addition to robust growth in net
revenues, we delivered another profitable quarter with GAAP net
income of RMB8.0 million and non-GAAP
net income of RMB16.8 million,
primarily resulting from significantly higher lesson consumption
and improved operating efficiency. In order to keep the Company on
track for healthy growth and profitability, we are proactively
refining our operations to maintain high efficiency at all levels,
ultimately stimulating student growth and brand awareness, as a
leading and dependable online education platform in China."
Change in Segment Reporting
Effective as of March 31, 2021,
the Company changed its segment disclosure and no longer separately
reports the financial results of its small class business, as the
operating decision maker ("CODM") no longer reviews the
stand-alone operating information of the small class
business. This is due to the immaterial contribution the
small class business is expected to provide in the future,
consistent with the Company's strategic decision to focus business
development on the one-on-one mass market offering. The CODM has
been identified as the Chief Executive Officer, who now reviews
consolidated results when making decisions about allocating
resources and assessing performance of the Company as a whole, and
hence, the Company has only one reportable segment. This change in
segment presentation does not affect consolidated balance sheets or
consolidated statements of comprehensive income. The Company
retrospectively revised prior period segment information to conform
to current period presentation.
First Quarter 2021 Financial Results
Net Revenues
Net revenues for the first quarter of 2021 were RMB600.4 million (US$91.6 million), a 23.3% increase from
RMB487.1 million for the same
quarter last year. The increase was primarily attributed to an
increase in the number of active students, partially offset by a
decrease in average revenue per active student. The number of
active students in the first quarter of 2021 was 392,700, a 37.0%
increase from 286,600 for the same quarter last year.
Cost of Revenues
Cost of revenues for the first quarter of 2021 was RMB159.7 million (US$24.4 million), a 10.9% increase from
RMB144.0 million for the same quarter
last year. The increase was primarily driven by an increase in
total service fees paid to teachers, mainly due to an
increased number of paid lessons.
Gross Profit and Gross Margin
Gross profit for the first quarter of 2021 was RMB440.7 million (US$67.3 million), a 28.5% increase from
RMB343.1 million for the same quarter
last year.
Gross margin for the first quarter of 2021 was 73.4%, compared
with 70.4% for the same quarter last year. The increase was
mainly attributable to the increase of price per lesson.
Operating Expenses
Total operating expenses for the first quarter of 2021 were
RMB445.9 million (US$68.1 million), an 41.6% increase
from RMB314.9 million for the
same quarter last year. The increase was mainly due to an increase
in sales and marketing expenses and product development
expenses.
Sales and marketing expenses for the first quarter of 2021 were
RMB318.9 million (US$48.7 million), a 39.7% increase from
RMB228.4 million for the same
quarter last year. The increase was mainly due to higher
sales personnel costs related to increases in the number of sales
and marketing personnel and higher marketing and branding expenses.
Excluding share-based compensation expenses, non-GAAP sales and
marketing expenses for the first quarter of 2021 were RMB316.5 million (US$48.3 million), a 40.0% increase from
RMB226.1 million for the same quarter
last year. Non-GAAP sales and marketing expenses, excluding
branding expenses, were 39.6% of the gross billings for the first
quarter of 2021, compared with 32.3% for the same quarter last
year.
Product development expenses for the first quarter of 2021 were
RMB57.7 million (US$8.8 million), a 60.9% increase from
RMB35.9 million for the same
quarter last year. The increase was primarily due to higher product
development personnel costs related to increases in both the number
of personnel and average salary. Excluding share-based compensation
expenses, non-GAAP product development expenses for the first
quarter of 2021 were RMB56.0 million
(US$8.5 million), a 55.7% increase
from RMB36.0 million for the same
quarter last year.
General and administrative expenses for the first quarter of
2021 were RMB69.2 million
(US$10.6 million), a 36.5%
increase from RMB50.7 million
for the same quarter last year. The increase was primarily due to
higher general and administrative personnel costs related to
increases in both the number of personnel and average salary.
Excluding share-based compensation expenses, non-GAAP general and
administrative expenses for the first quarter of 2021 were
RMB64.7 million (US$9.9 million), a 38.6% increase from
RMB46.7 million for the same
quarter last year.
Other income
As part of the Chinese government's effort to ease the burden of
businesses affected by the coronavirus (COVID-19) outbreak, the
State Taxation Administration (STA) exempted a wide range of
consumer services from value added tax (VAT) from January 2020 until March
2021. The income obtained by taxpayers from providing
essential services shall be exempted from VAT. The favorable impact
of such coronavirus relief policies was RMB10.7 million and RMB10.3 million in the first quarter of 2021 and
2020 respectively.
On September 30, 2019, the
Ministry of Finance and the State Taxation Administration announced
that from October 1, 2019 to
December 31, 2021, taxpayers engaging
in the provision of essential services are allowed to deduct an
extra 15% of the deductible input value-added tax for the current
period from the payable value-added tax. The impact of the policy
of additional value-added tax credit for the income generated by
the essential services provided by enterprises was RMB0.4 million and RMB6.5
million in the first quarter of 2021 and 2020
respectively.
Income from Operations
Operating income for the first quarter of 2021 was RMB5.9 million (US$0.9
million), compared with operating income of
RMB44.9 million for the same quarter
last year. Operating margin for the first quarter was 1.0%,
compared with operating margin of 9.2% for the same quarter last
year.
Non-GAAP operating income for the first quarter of 2021 was
RMB14.6 million (US$2.2 million), compared with non-GAAP
operating income of RMB51.1 million
for the same quarter last year. Non-GAAP operating margin for the
first quarter was 2.4%, compared with non-GAAP operating margin of
10.5% for the same quarter last year.
The favorable impact of coronavirus relief policies was
RMB10.7 million in the first quarter
of 2021. Excluding the favorable impact, loss from operations
and non-GAAP operating income for the first quarter would have been
RMB4.8 million (US$0.7 million) and RMB3.9
million (US$0.6 million)
respectively, representing negative 0.8% GAAP operating margin and
0.7% non-GAAP operating margin.
Net income
Net income for the first quarter of 2021 was RMB8.0 million (US$1.2
million), compared with net income of RMB 50.8 million for the same quarter last year.
Net margin for the first quarter was 1.3%, compared with net margin
of 10.4% for the same quarter last year.
Non-GAAP net income for the first quarter of 2021 was
RMB16.8 million (US$2.6 million), compared with non-GAAP
net income of RMB57.0 million
for the same quarter last year. Non-GAAP net margin for the first
quarter was 2.8%, compared with non-GAAP net margin of 11.7% for
the same quarter last year.
The favorable impact of coronavirus relief policies was
RMB10.7 million in the first quarter.
Excluding the favorable impact, net loss and non-GAAP net income
for the first quarter would have been RMB2.7
million (US$0.4 million) and
RMB6.0 million (US$0.9 million) respectively, representing a
margin of negative 0.5% and 1.0% respectively.
Income tax expense for the first quarter of 2021 was
RMB6.1 million.
Basic net income per share attributable to ordinary
shareholders for the first quarter of 2021 was RMB0.02 (US$0.00),
compared with basic net income per share of RMB0.16 for the same quarter last year.
Diluted net income per share attributable to ordinary
shareholders for the first quarter of 2021 was RMB0.02 (US$0.00),
compared with diluted net income per share of RMB0.15 for the same quarter last year.
Non-GAAP basic net income per share attributable to
ordinary shareholders for the first quarter of 2021 was
RMB0.05 (US$0.01), compared with non-GAAP basic net
income per share attributable to ordinary shareholders of
RMB0.18 for the same quarter
last year. Non-GAAP diluted net income per
share attributable to ordinary shareholders for the first
quarter of 2021 was RMB0.05
(US$0.01), compared
with non-GAAP diluted net income per share attributable
to ordinary shareholders of RMB0.17 for the same quarter last year.
The favorable impact of coronavirus relief policies was
RMB10.7 million in the first quarter.
Excluding the favorable impact, basic net loss per share
attributable to ordinary shareholders for the first quarter of 2021
was RMB0.01 (US$0.00) and non-GAAP basic net income per share
attributable to ordinary shareholders for the first quarter of 2021
was RMB0.02 (US$0.00), respectively. Excluding the favorable
impact, diluted net loss per share attributable to ordinary
shareholders for the first quarter of 2021 was RMB0.01 (US$0.00)
and non-GAAP diluted net income per share attributable to ordinary
shareholders for the first quarter of 2021 was RMB0.02 (US$0.00),
respectively.
Basic net income per American depositary share
("ADS") attributable to ordinary shareholders for the first
quarter of 2021 was RMB0.37
(US$0.06), compared with basic net
income per ADS of RMB2.43 for
the same quarter last year. Diluted net income per
ADS attributable to ordinary shareholders for the first
quarter of 2021 was RMB0.35
(US$0.05), compared with diluted net
income per ADS of RMB2.26 for
the same quarter last year. Each ADS represents 15 Class A ordinary
shares.
Non-GAAP basic net income per ADS attributable to
ordinary shareholders for the first quarter of 2021 was
RMB0.78 (US$0.12), compared with non-GAAP basic net
income per ADS attributable to ordinary shareholders of
RMB2.73 for the same quarter
last year. Non-GAAP diluted net income per
ADS attributable to ordinary shareholders for the first
quarter of 2021 was RMB0.73
(US$0.11), compared
with non-GAAP diluted net income per ADS attributable to
ordinary shareholders of RMB2.54 for the same quarter last year.
The favorable impact of coronavirus relief policies was
RMB10.7 million in the first quarter.
Excluding the favorable impact, basic net loss per ADS attributable
to ordinary shareholders for the first quarter of 2021 was
RMB0.13 (US$0.02) and non-GAAP basic net income per ADS
attributable to ordinary shareholders for the first quarter of 2021
was RMB0.28 (US$0.04), respectively. Excluding the favorable
impact, diluted net loss per ADS attributable to ordinary
shareholders for the first quarter of 2021 was RMB0.13 (US$0.02)
and non-GAAP diluted net income per ADS attributable to ordinary
shareholders for the first quarter of 2021 was RMB0.26 (US$0.04),
respectively.
Balance Sheet
As of March 31, 2021, the Company
had total cash, cash equivalents, time deposits and short-term
investments of RMB1,730.3 million (US$264.1 million), compared with
RMB1,727.7 million as of December 31, 2020. As a part of cash, cash
equivalents, time deposits and short-term investments, the Company
had non-current time deposits of RMB512.0
million (US$78.1 million),
compared with RMB414.0 million as of
December 31, 2020.
The Company had advances from students[4] (current
and non-current) of RMB2,762.0
million (US$421.6 million) as
of March 31, 2021, compared with
RMB2,721.0 million as of December 31, 2020.
[4]
"Advances from students", which is defined as the amount of
obligation to transfer good or service to students or business
partners for which consideration has been received from students in
advance. The deposits from students are also presented in the
total amount of "advances from students".
|
Outlook
For the second quarter of 2021, the Company currently expects
net revenues to be between RMB597
million and RMB603 million,
which would represent an increase of approximately 21.0% to 22.2 %
from RMB493.5 million for the same
quarter last year.
The above outlook is based on 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.
Share Repurchase Program
On September 8, 2020, 51Talk
announced that its board of directors had authorized a share
repurchase program of up to US$20.0
million between September 8,
2020 and September 7, 2021. As
of May 17, 2021, the Company had
repurchased 260,530 ADSs for approximately US$6.6 million under this program.
The Annual Report
On April 7, 2021, the Company
filed its annual report on Form 20-F for the fiscal year ended
December 31, 2020 with the Securities
and Exchange Commission (the "SEC"). The annual report can be
accessed on the Company's investor relations website at
http://ir.51talk.com and on the SEC's website at www.sec.gov. The
Company will provide a hard copy of the annual report containing
its audited consolidated financial statements for the fiscal year
ended December 31, 2020, free of
charge, to its shareholders and ADS holders upon request. Requests
should be submitted to ir@51talk.com.
Conference Call
The Company's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on
May 17, 2021 (8:00 PM
Beijing/Hong Kong time on
May 17, 2021).
Dial-in details for the earnings conference call are as
follows:
United States (toll
free):
|
1-866-264-5888
|
International:
|
1-412-317-5226
|
Mainland
China:
|
400-120-1203
|
Hong Kong (toll
free):
|
800-905-945
|
Hong Kong:
|
852-3018-4992
|
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
May 24, 2021, by dialing the
following telephone numbers:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10156395
|
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 operating income,
non-GAAP net income, non-GAAP net income attributable to ordinary
shareholders, and non-GAAP net income 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 compensation 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 RMB6.5518 to US$1.00, the rate in effect as of March 31, 2021as 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.
CHINA ONLINE
EDUCATION GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
Dec.
31,
|
|
Mar.
31
|
|
Mar.
31,
|
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
326,647
|
|
293,358
|
|
44,775
|
|
|
Time
deposits
|
|
477,408
|
|
475,938
|
|
72,642
|
|
|
Short-term
investments
|
|
509,636
|
|
448,975
|
|
68,527
|
|
|
Inventory
|
|
1,935
|
|
1,051
|
|
160
|
|
|
Prepaid expenses and
other current assets
|
|
302,057
|
|
314,682
|
|
48,030
|
|
Total current
assets
|
|
1,617,683
|
|
1,534,004
|
|
234,134
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
21,175
|
|
34,127
|
|
5,209
|
|
|
Intangible assets,
net
|
|
20,302
|
|
18,742
|
|
2,861
|
|
|
Goodwill
|
|
4,223
|
|
4,223
|
|
645
|
|
|
Right-of-use
assets
|
|
98,001
|
|
109,824
|
|
16,762
|
|
|
Time
deposits
|
|
414,000
|
|
512,000
|
|
78,146
|
|
|
Deferred tax
assets
|
|
10,268
|
|
6,544
|
|
999
|
|
|
Other non-current
assets
|
|
23,896
|
|
25,053
|
|
3,824
|
|
Total non-current
assets
|
|
591,865
|
|
710,513
|
|
108,446
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
2,209,548
|
|
2,244,517
|
|
342,580
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
AND SHAREHOLDERS'
DEFICIT
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Advances from
students
|
|
2,718,776
|
|
2,760,021
|
|
421,261
|
|
|
Accrued expenses and
other current liabilities
|
|
237,101
|
|
216,583
|
|
33,057
|
|
|
Lease
liability
|
|
42,949
|
|
51,352
|
|
7,838
|
|
|
Taxes
payable
|
|
19,288
|
|
22,209
|
|
3,390
|
|
Total current
liabilities
|
|
3,018,114
|
|
3,050,165
|
|
465,546
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Advances from
students
|
|
2,270
|
|
1,957
|
|
299
|
|
|
Lease
liability
|
|
53,594
|
|
58,136
|
|
8,873
|
|
|
Other non-current
liabilities
|
|
2,508
|
|
2,593
|
|
396
|
|
Total non-current
liabilities
|
|
58,372
|
|
62,686
|
|
9,568
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,076,486
|
|
3,112,851
|
|
475,114
|
|
|
|
|
|
|
|
|
|
Total shareholders'
deficit
|
|
(866,938)
|
|
(868,334)
|
|
(132,534)
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' deficit
|
|
2,209,548
|
|
2,244,517
|
|
342,580
|
|
CHINA ONLINE
EDUCATION GROUP
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Mar.
31,
|
|
Mar.
31,
|
|
|
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
Net
revenues
|
|
487,084
|
|
535,074
|
|
600,404
|
|
91,640
|
|
Cost of
revenues
|
|
(144,031)
|
|
(146,134)
|
|
(159,713)
|
|
(24,377)
|
|
Gross
profit
|
|
343,053
|
|
388,940
|
|
440,691
|
|
67,263
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(228,387)
|
|
(284,493)
|
|
(318,944)
|
|
(48,680)
|
|
|
Product development
expenses
|
|
(35,867)
|
|
(44,577)
|
|
(57,726)
|
|
(8,811)
|
|
|
General and
administrative expenses
|
|
(50,689)
|
|
(56,626)
|
|
(69,208)
|
|
(10,563)
|
|
Total operating
expenses
|
|
(314,943)
|
|
(385,696)
|
|
(445,878)
|
|
(68,054)
|
|
Other
income
|
|
16,761
|
|
7,766
|
|
11,094
|
|
1,693
|
|
Income from
operations
|
|
44,871
|
|
11,010
|
|
5,907
|
|
902
|
|
Interest
income
|
|
7,577
|
|
11,711
|
|
11,620
|
|
1,774
|
|
Interest expenses and
other expenses, net
|
|
(209)
|
|
193
|
|
(3,408)
|
|
(520)
|
|
Income before income
tax expenses
|
|
52,239
|
|
22,914
|
|
14,119
|
|
2,156
|
|
Income tax
(expenses)/benefits
|
|
(1,447)
|
|
8,905
|
|
(6,097)
|
|
(931)
|
|
Net income, all
attributable to the Company's ordinary shareholders
|
|
50,792
|
|
31,819
|
|
8,022
|
|
1,225
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing basic
income per share
|
|
313,197,499
|
|
323,458,483
|
|
322,796,828
|
|
322,796,828
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing diluted
income per share
|
|
336,903,081
|
|
344,354,904
|
|
342,150,096
|
|
342,150,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA ONLINE
EDUCATION GROUP
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Mar.
31,
|
|
Mar.
31,
|
|
|
|
|
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
Basic
|
|
0.16
|
|
0.10
|
|
0.02
|
|
0.00
|
|
|
|
Diluted
|
|
0.15
|
|
0.09
|
|
0.02
|
|
0.00
|
|
|
Net income per ADS
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
Basic
|
|
2.43
|
|
1.48
|
|
0.37
|
|
0.06
|
|
|
|
Diluted
|
|
2.26
|
|
1.39
|
|
0.35
|
|
0.05
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
50,792
|
|
31,819
|
|
8,022
|
|
1,225
|
|
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
4,544
|
|
(14,319)
|
|
1,802
|
|
275
|
|
|
Total comprehensive
income
|
|
55,336
|
|
17,500
|
|
9,824
|
|
1,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses are included in the operating expenses as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(2,302)
|
|
(1,875)
|
|
(2,487)
|
|
(380)
|
|
|
|
Product development
expenses
|
|
101
|
|
(1,281)
|
|
(1,733)
|
|
(265)
|
|
|
|
General and
administrative expenses
|
|
(4,000)
|
|
(3,636)
|
|
(4,516)
|
|
(689)
|
|
|
|
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,
|
|
|
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(228,387)
|
|
(284,493)
|
|
(318,944)
|
|
(48,680)
|
|
Less: Share-based
compensation expenses
|
|
(2,302)
|
|
(1,875)
|
|
(2,487)
|
|
(380)
|
|
Non-GAAP sales and
marketing expenses
|
|
(226,085)
|
|
(282,618)
|
|
(316,457)
|
|
(48,300)
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
expenses
|
|
(35,867)
|
|
(44,577)
|
|
(57,726)
|
|
(8,811)
|
|
Less: Share-based
compensation expenses
|
|
101
|
|
(1,281)
|
|
(1,733)
|
|
(265)
|
|
Non-GAAP product
development expenses
|
|
(35,968)
|
|
(43,296)
|
|
(55,993)
|
|
(8,546)
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(50,689)
|
|
(56,626)
|
|
(69,208)
|
|
(10,563)
|
|
Less: Share-based
compensation expenses
|
|
(4,000)
|
|
(3,636)
|
|
(4,516)
|
|
(689)
|
|
Non-GAAP general and
administrative expenses
|
|
(46,689)
|
|
(52,990)
|
|
(64,692)
|
|
(9,874)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
(314,943)
|
|
(385,696)
|
|
(445,878)
|
|
(68,054)
|
|
Less: Share-based
compensation expenses
|
|
(6,201)
|
|
(6,792)
|
|
(8,736)
|
|
(1,334)
|
|
Non-GAAP operating
expenses
|
|
(308,742)
|
|
(378,904)
|
|
(437,142)
|
|
(66,720)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
44,871
|
|
11,010
|
|
5,907
|
|
902
|
|
Less: Share-based
compensation expenses
|
|
(6,201)
|
|
(6,792)
|
|
(8,736)
|
|
(1,334)
|
|
Non-GAAP income from
operations
|
|
51,072
|
|
17,802
|
|
14,643
|
|
2,236
|
|
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,
|
|
|
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expenses)/benefits
|
|
(1,447)
|
|
8,905
|
|
(6,097)
|
|
(931)
|
|
Less: Tax impact of
Share-based compensation expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Non-GAAP income tax
(expenses)/benefits
|
|
(1,447)
|
|
8,905
|
|
(6,097)
|
|
(931)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, all
attributable to the Company's ordinary shareholders
|
|
50,792
|
|
31,819
|
|
8,022
|
|
1,225
|
|
Add back: Share-based
compensation expenses
|
|
6,201
|
|
6,792
|
|
8,736
|
|
1,334
|
|
Non-GAAP net
income, all attributable to the Company's ordinary
shareholders
|
|
56,993
|
|
38,611
|
|
16,758
|
|
2,559
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing basic income per
share
|
|
313,197,499
|
|
323,458,483
|
|
322,796,828
|
|
322,796,828
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing diluted income per
share
|
|
336,903,081
|
|
344,354,904
|
|
342,150,096
|
|
342,150,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per share attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
basic
|
|
0.18
|
|
0.12
|
|
0.05
|
|
0.01
|
|
|
diluted
|
|
0.17
|
|
0.11
|
|
0.05
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per ADS attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
basic
|
|
2.73
|
|
1.79
|
|
0.78
|
|
0.12
|
|
|
diluted
|
|
2.54
|
|
1.68
|
|
0.73
|
|
0.11
|
|
View original
content:http://www.prnewswire.com/news-releases/china-online-education-group-announces-first-quarter-2021-results-301292353.html
SOURCE China Online Education Group