51Talk Online Education Group · AMEX:COE
51Talk Online Education — China Online Education Group — Q2 2020 Earnings Presentation
16 slides from 51Talk Online Education's earnings presentation, Sep 8, 2020
Slide 1: Earnings Presentation Second Quarter 2020
China Online Education Group Earnings Presentation Second Quarter 2020 NYSE: COE
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
Slide 3: 2020 Q2 Highlights
2020 Q2 Highlights Non-GAAP net income of RMB 39.6M GAAP net income of RMB 32.8M Net revenues: RMB 493.5M, 40.0% y/y growth Gross billings: RMB 676.4M, 35.7% y/y growth Gross margin: 70.9%, compared with 69.5% for 2Q19 Operating cash inflow: RMB 172.1M Cash, time deposits and short-term investments:
Slide 4: Brand New Level-K Courses Targeting Kindergarten Students
Brand New Level-K Courses Targeting Kindergarten Students 3
Slide 5: New Brand Ambassador in the Philippines
New Brand Ambassador in the Philippines 4
Slide 6: First-ever Enterprise Standards for the K-12 Online Education Industry
51Talk Announced the First-ever Enterprise Standards for the K-12 Online Education Industry K-12 Online Education Service and Evaluation Standard Conference on Sept. 2 5
Slide 7: Gross Billings Summary
Gross Billings Summary 1.9% 3.1% 6.3% 3.7% 1Q20 2Q20 6.9% 94.4% 90.6% 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 gross billings 6
Slide 8: Net Revenues Summary
Net Revenues Summary 4.7% 5.8% 12.3% 9.5% 1Q20 2Q20 6.9% 83.0% 84.7% 1x1 K-12 Mass- Market 1x1 Others K-12 Small Class Total Net Revenues K-12 PH 1x1 Net Revenues (RMB million) (RMB million) Note: 1. The percentage represents net revenues 7
Slide 9: Significant Operating Leverage
Significant Operating Leverage Industry-leading Gross Margins Total Gross Margins 69.5% 71.6% 72.1% 70.4% 70.9% 2Q19 3Q19 4Q19 1Q20 2Q20 1x1 and Small Class Gross Margins 71.1% 72.7% 73.5% 71.2% 71.6% 56.0% 58.9% 54.5% 52.7% 54.0% 2Q19 3Q19 4Q19 1Q20 2Q20 1x1 Small Class 8
Slide 10: 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% 67.4% 62.3% 66.5% 62.6% 61.5% 56.2% 54.7% 49.5% 52.8% 49.1% 332 315 316 299 282 280 288 54 278 51 262 61 46 52 50 49 39 51 36 54 43 3
Slide 11: Significant Operating Leverage (Cont'd)
Significant Operating Leverage (Cont’d) Stable Non-GAAP Operating Expenses Allow for Sustainable Growth (RMB million) (%) 104.3% 90.6% 90.7% 103.2% 85.7% 77.8% 72.4% 71.7% 63.4% 66.0% 77.1% 60.7% 64.8% 61.1% 60.6% 55.1% 54.1% 48.9% 51.7% 48.1% 326 308 309 296 285 51 274 275 274 274 47 56 44 255 46 3
Slide 12: Operating Income/(Loss)
Operating Income/(Loss) GAAP Non-GAAP (RMB million) (RMB million) 11
Slide 13: Net Income/(Loss)
Net Income/(Loss) GAAP Non-GAAP (RMB million) (RMB million) 12
Slide 14: EPS in ADS - Diluted
EPS in ADS - Diluted GAAP Non-GAAP (RMB) (RMB) 13
Slide 15: 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) 1,427 1,214 1,053 167 173 172 906 786 99 123 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Strong Operating Cash Flow Solid Cash Balance Operational Flexibi
Slide 16: 2020 Q3 Guidance
2020 Q3 Guidance (RMB million) 3Q 2019 2Q 2020 3Q 2020 Outlook Y/Y Growth Net Revenues 408.7 493.5 525-532 28.5%~30.2% 15
China Online Education Group — Q2 2020 Earnings Presentation on 6ix