China Online Education Registers 90% Revenue Decline In Q1

  • China Online Education Group COE (51Talk) reported a first-quarter FY22 revenue decline of 89.7% year-on-year to $9.5 million.
  • COE did not recognize $48.0 million in non-compliant lesson consumptions as revenues.
  • The number of active students with general lesson consumption was 298,600, down 24.0% Y/Y.
  • Gross margin loss was (14.0)% versus 73.4% a year ago.
  • Non-GAAP loss from operations was $(21.4) million, versus $2.3 million a year ago.
  • Non-GAAP net loss per ADS was $(0.94).
  • 51Talk held $126.4 million in cash and equivalents.
  • COE founder, Chair, and CEO Jiajia Jack Huang said, "With the rapid growth of our overseas business, we exceeded our target on gross billings in the first quarter. Our first-quarter net gross billings have reached $5.3 million, representing 79.9% sequential growth."
  • Huang agreed to acquire COE's online English tutoring businesses in the China mainland via Dasheng Holding (HK) Limited for $1.
  • RelatedChina Online Education Spins Off China Mainland Business
  • COE has changed its reporting currency from the Renminbi (RMB) to the U.S. dollar ($) to focus on its overseas business.
  • Outlook: COE expects Q2 net gross billings from the oversea business of $7.2 million - $7.5 million, representing sequential growth of 36.1% - 41.8%.
  • Regulatory Crackdown: China's internet security watchdog has launched an investigation into the China National Knowledge Infrastructure (CNKI), Reuters reports.
  • China Cyberspace Administration aimed to preempt security risks of national data, protecting national security and safeguarding public interest through scrutiny and summoned CNKI management for a meeting.
  • On May 13, the State Administration for Market Regulation launched an antitrust investigation into CNKI after China's top research group, the Chinese Academy of Sciences, decided to suspend its use of CNKI, citing high subscription fees.
  • Price Action: COE shares traded higher by 5.19% at $1.42 in the premarket on the last check Friday.

Posted In: BriefsEarningsGovernmentNewsPenny StocksRegulationsGuidanceTechMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.