51Talk Online Education Group · AMEX:COE

51Talk Online Education — China Online Education Group — Q1 2020 Earnings Presentation

13 slides from 51Talk Online Education's earnings presentation, May 27, 2020

  1. Slide 1: Earnings Presentation First Quarter 2020

    China Online Education Group Earnings Presentation First Quarter 2020 NYSE: COE

  2. Slide 2: Important Information

    Important Information Safe Harbor Statement This presentation 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

  3. Slide 3: 2020 Q1 Highlights

    2020 Q1 Highlights Non-GAAP net income of RMB 57.0M GAAP net income of RMB 50.8M Net revenues: RMB 487.1M, 52.2% y/y growth Gross billings: RMB 596.9M, 31.9% y/y growth Gross margin: 70.4%, compared with 67.0% for 1Q19 Operating cash flow: RMB 172.7M Cash, time deposits and short-term investments: R

  4. Slide 4: Gross Billings Summary

    Gross Billings Summary 1.9% 6.9% 6.9% 3.7% 4Q19 1Q20 6.9% 86.2% 94.4% 1x1 K-12 Mass- Market 1x1 Others K-12 Small Class Total Gross Billings K-12 PH 1x1 Gross Billings (RMB million) (RMB million) Note: 1. The percentage represents net revenues 3

  5. Slide 5: Net Revenues Summary

    Net Revenues Summary 4.7% 6.6% 12.8% 12.3% 4Q19 1Q20 6.9% 80.6% 83.0% 1x1 K-12 Mass- Market 1x1 Others K-12 Small Class Net Revenues Overall K-12 PH 1x1 Net Revenues (RMB million) (RMB million) Note: 1. The percentage represents net revenues 4

  6. Slide 6: Significant Operating Leverage

    Significant Operating Leverage Industry-leading Gross Margins that Continue to Improve Total Gross Margins 69.5% 71.6% 72.1% 70.4% 67.0% 1Q19 2Q19 3Q19 4Q19 1Q20 1x1 and Small Class Gross Margins 71.1% 72.7% 73.5% 71.2% 66.6% 69.0% 54.5% 56.0% 52.7% 54.0% 45.7% 27.9% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 1x

  7. Slide 7: Significant Operating Leverage (Cont’d)

    Significant Operating Leverage (Cont’d) Stable GAAP Operating Expenses Allow for Sustainable Growth (RMB million) (%) 105.7% 92.9% 93.1% 86.9% 79.4% 73.3% 72.6% 64.7% 62.3% 66.5% 62.6% 61.5% 56.2% 54.7% 49.5% 52.8% 315 316 299 282 278 280 288 262 61 51 46 52 50 49 51 36 54 43 38 37 46 41 41 45 212 2

  8. Slide 8: Significant Operating Leverage (Cont’d)

    Significant Operating Leverage (Cont’d) Stable Non-GAAP Operating Expenses Allow for Sustainable Growth (RMB million) (%) 103.2% 90.6% 90.7% 85.7% 77.8% 72.4% 71.7% 63.4% 60.7% 64.8% 61.1% 60.6% 51.7% 55.1% 54.1% 48.9% 308 309 296 285 275 274 274 255 56 47 44 49 47 46 48 36 50 41 37 37 43 40 40 43 2

  9. Slide 9: Operating Income/(Loss)

    Operating Income/(Loss) GAAP Non-GAAP (RMB million) (RMB million) 9

  10. Slide 10: Net Income/(Loss)

    Net Income/(Loss) GAAP Non-GAAP (RMB million) (RMB million) 10

  11. Slide 11: EPS in ADS - Diluted

    EPS in ADS - Diluted GAAP Non-GAAP (RMB) (RMB) 11

  12. Slide 12: Positive Operating Cash Flow and Healthy Liquidity Position

    Positive Operating Cash Flow and Healthy Liquidity Position Net Cash from Operating Activities Cash Balance (1) (RMB million) (RMB million) 1,214 1,053 906 167 173 786 697 123 99 8 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Strong Operating Cash Flow Solid Cash Balance Operational Flexibility

  13. Slide 13: 2020 Q2 Guidance

    2020 Q2 Guidance (RMB million) 2Q 2019 1Q 2020 2Q 2020 Outlook Y/Y Growth Net Revenues 352.6 487.1 460-470 30.5%~33.3% 13

China Online Education Group — Q1 2020 Earnings Presentation on 6ix