China Online Education Group (NYSE:COE) Q3 2023 Earnings Call Transcript

China Online Education Group (NYSE:COE) Q3 2023 Earnings Call Transcript December 18, 2023

Operator: Hello, ladies and gentlemen. Thank you for standing by for 51Talk Online Education Group's Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Mr. David Chung, Investor Relations for the Company. Please go ahead, David.

David Chung: Hello, everyone, and welcome to the third quarter 2023 earnings conference call of 51Talk. The Company's results were issued by newswire services earlier today and are posted online. You can download the earnings press release and sign up for the Company's distribution list by visiting ir.51talk.com. Mr. Jack Huang, our CEO; and Ms. Cindy Tang, our CFO, will begin with some prepared remarks. Following the prepared remarks, there will be a Q&A session. Before we continue, please note that the discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may be materially different from the views expressed today.

An instructor in a virtual classroom, interacting with students around the world through the company's courses.

Further information regarding this and other risks and uncertainties is included in the Company's Form 20-F and other public filings as filed with the U.S. Securities and Exchange Commission. The Company does not assume any obligation to update any forward-looking statements, except as required under the applicable law. Please also note that earnings press release and this conference call include discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. 51Talk's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. I will now turn the call over to our CEO, Jack Huang. Jack, please go ahead.

Jack Huang: Thank you, David. Hello, everyone. Thank you for joining our conference call today. Our growth continued in the third quarter with the gross billings coming in at the high end of guidance. During the quarter, we focused on our growth activities in our selected markets where we see high potential and benefit from an early-mover advantage. In fact, we have continued to localize our materials to adapt to the local audiences. Although we are still very much in an expansion mode, we are achieving positive cash flow. Our cash increased by US$1.2 million compared to the previous quarter. We remain committed to our sustainable growth approach. In terms of technology, we focus on how Generative AI can firstly further enhance our products through more personalized and interactive functionality to help our customers practice in a more engaging way.

Secondly, we deploy Generative AI to empower our service teams to guide our students and their parents more effectively through the course cycle. We equally use large language models to enhance our curriculum by creating more personalized adaptive course materials. With that, I will now turn the call over to Cindy, our CFO.

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