EQS-News / 04/07/2022 / 11:20 GMT+8
51Talk Reports First Quarter Results, Announces Split with Listed Company Targeting Overseas Market
On June 24, 2022, 51Talk (COE.US) announced its first quarter 2022 financial results. The report said 51Talk has restructured its mainland and overseas business and completed its operational restructuring. By separating its mainland business from the listed company, 51Talk will focus on developing its overseas English services for children and become a listed international online education company. After divesting its Continental business, the negative net asset position of $137 million at the end of the quarter changed to a positive position. In March 2022, overseas business revenue reached positive cash flow for the first time in a single month, showing strong business performance.
Spin-off and restructuring to focus on foreign markets
After the “double discount” policy was announced in early July 2021, 51Talk launched global expansion efforts in response to off-campus tutoring regulations. Prior to the release of the 2021 annual report, 51Talk CEO Huang Jiajia also indicated that internal measures would be taken to restructure the company’s business. Now, 51Talk is sending a positive signal through the split, as all revenue will be generated from overseas markets, thus achieving positive equity. 51Talk will focus more on the overseas business of one-to-one online English lessons for children and accelerate the implementation of its overall strategy, reduce costs and increase efficiency to optimize organizational efficiency.
The reason for targeting the overseas market was that overseas tuition was a market yet to be developed. According to the Grand View Research report, the global online education market scale in 2021 was USD 107.3 billion and the estimated CAGR for 2028 is 19.9%. Learning English remains a rigid demand for education abroad, especially in Southeast Asia, and alongside the impacts of the recent pandemic, online education is increasingly popular among overseas users. As such, 51Talk has launched its global expansion strategy in Southeast Asia and will continue to expand into markets such as the Middle East, Asia, Europe and America.
As a key international player in online education, 51Talk will accelerate the implementation of its global strategy, rely on quality teachers, premium service and product experience, and create mechanisms for growth sustainable innovations to create a leading global online English brand and add more value. to users around the world. 51Talk has grown to cover more than 50 countries and regions, providing English lesson services to users around the world.
Overseas profit model recognized as cash flow turns positive
51Talk CFO Xu Min said, “An education company has to go through three phases before making a profit. First, achieve positive operating cash flow. According to our financial statements, in the first quarter ended in 2022, 51Talk’s overseas business only operated for 8 months, and cash flow already turned positive in March 2022. This marks 51Talk’s first step towards profit making.
According to the financial statements, net cash inflow reached $5.30 million, up 79.9% quarter-on-quarter, showing strong business performance. Industry insiders said 51Talk’s rapid global development was due to a sound business mode and the core advantage of “Teacher + Product + Technology + Brand” combination. 51Talk is one of the first internet education companies in China and is dedicated to providing online English lessons for children. 51Talk is also the first online education company in China to be listed on the US stock exchange. Building on decades of experience in online teaching, 51Talk has a sound business model and is the first online English teaching company to make a profit in China. Additionally, 51Talk has a global supply chain of quality native English teachers and in terms of research and development, 51Talk has independently developed AirClass to provide personalized learning solutions to each student to ensure results. of learning.
51Talk CEO Huang Jiajia said, “The rapid growth of our overseas business has confirmed overseas market demand and shown that its business model is similar to that of mainland enterprises. The success achieved in the Chinese market is an example that we have learned from and which has helped us to solve many solutions while entering global markets. We believe that our overseas business can experience healthy and rapid growth, as can our business on the mainland.
In the future, 51Talk will continue to expand its global education business, accelerate its globalization and strengthen its global competitiveness while maintaining rapid growth and creating more value, so that students around the world can enjoy quality English educational resources and communicate with the world. .
Brand Name: 51Talk
File: 51Talk releases first quarter results, announcing split with listed company targeting overseas market
04/07/2022 Dissemination of a financial press release, transmitted by EQS Group.
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