51Talk Online Education Group (COE) 2022 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for 51Talk Online Educational Group's Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions). Today's conference call is being recorded. I would now like to turn the call over to your host, Mr. David, Investor Relations for the company. Please go ahead, David.

女士們、先生們，大家好。感謝您出席51Talk線上教育集團2022年第四季財報電話會議。 （操作員說明）。今天的電話會議正在錄音。現在我想將電話轉給東道主公司投資者關係部門的大衛先生。請繼續，大衛。

Thank you, Anita. Hello, everyone, and welcome to the Fourth Quarter 2022 Earnings Conference Call for 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 the IR section of our website at 51talk.com.

謝謝你，安妮塔。大家好，歡迎參加51Talk 2022年第四季財報電話會議。該公司的業績今天早些時候由新聞通訊社發布並發佈在網上。您可以造訪我們網站 51talk.com 的 IR 部分，下載收益新聞稿並註冊公司的分發清單。

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.

我們的執行長黃傑克先生；我們的財務長 Cindy Tang 女士將首先發表一些準備好的演講。在準備好的發言之後，將進行問答環節。在我們繼續之前，請注意，討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. 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.

前瞻性陳述涉及固有風險和不確定性。因此，該公司的業績可能與今天表達的觀點有重大差異。有關此風險和其他風險和不確定性的更多資訊包含在公司向美國證券交易委員會提交的 20-F 表格和其他公開文件中。

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.

除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。另請注意，收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標的討論。

51Talk's press release contains a reconciliation of the unaudited non-GAAP measures to be audited most directly comparable GAAP measures. I will now turn the call over to our CEO, Jack Huang. Jack, please go ahead.

51Talk 的新聞稿包含未經審計的非 GAAP 指標的調整表，這些指標將與經過審計的最直接可比較的 GAAP 指標進行比較。我現在將把電話轉給我們的執行長 Jack Huang。傑克，請繼續。

Okay. Thank you, David. Hello, everyone. Thank you for joining our conference call today. On September 30, our Board approved our legal name change to 51Talk Online Education Group. This signifies our new journey and the current focus on the Asian markets and beyond from our headquarters in Singapore. In fact, since starting the international business in the second half of 2021, we derive revenues from over 50 markets as of now.

好的。謝謝你，大衛。大家好。感謝您今天參加我們的電話會議。 9月30日，董事會批准法定名稱變更為51Talk線上教育集團。這標誌著我們的新旅程以及目前我們新加坡總部對亞洲市場及其他地區的關注。事實上，自 2021 年下半年啟動國際業務以來，截至目前，我們的收入來自 50 多個市場。

As we continue to invest in localization in markets where we see a good population of middle-class families who value education, we expect further penetration into specific markets as well as the identification of new markets to drive growth in the short and the medium term. Based on the feedback from our customers, we believe we have a price competitive product with a best-in-class value proposition.

隨著我們繼續在重視教育的中產階級家庭人口眾多的市場進行在地化投資，我們預計將進一步滲透到特定市場，並確定新市場，以推動中短期成長。根據客戶的回饋，我們相信我們擁有具有價格競爭力的產品和一流的價值主張。

We believe our students learn more than less and are more motivated and enjoy classes more than students of competitor products. Specifically, our one-on-one live circular classes taught by well-trained Filipino tutors is a unique proposition in the market. Unlike many of our local competitors, we are working on a much larger and proven technology infrastructure, which gives us significant capacity to grow.

我們相信，與使用競爭對手產品的學生相比，我們的學生學得更多，更積極主動，更享受課程。具體來說，我們由訓練有素的菲律賓導師教授的一對一現場循環課程是市場上的獨特主張。與我們的許多本地競爭對手不同，我們正在開發規模更大且經過驗證的技術基礎設施，這為我們提供了巨大的成長能力。

In terms of technology, we believe AI-powered tutors will transform online education. The combination of tutor and AI will significantly improve user experience and greatly promote personalized education, specifically, adaptive learning or the creation of personalized teaching content and the provision of customized teaching tools for teachers and customized lesson feedback based on students learning situations, among others.

在技​​術方面，我們相信人工智慧輔導將改變線上教育。導師與人工智慧的結合將顯著改善使用者體驗，並極大促進個別化教育，特別是自適應學習或個人化教學內容的創建，為教師提供客製化的教學工具，根據學生的學習情況客製化的課程回饋等。

We have already begun integrating ChatGPT into our product and operations and continue to strategically build around our vision of personalized education. Finally, we have continued the trend of positive operating cash flow since May through the third and the fourth quarter, which reflects the strong execution of our sustainable growth strategy. With that, I will now turn the call over to our CFO, Cindy.

我們已經開始將 ChatGPT 整合到我們的產品和營運中，並繼續圍繞我們的個人化教育願景進行策略建立。最後，我們自五月以來一直保持正營運現金流的趨勢持續到第三和第四季度，這反映了我們可持續成長策略的強勁執行。現在，我將把電話轉給我們的財務長辛蒂。

Thank you, Jack. The momentum of our business continues into Q4 as net revenues were USD 5.1 million, representing 10% sequential growth. Gross margin for the fourth quarter was 79.0%. Gross billings was USD 7.5 million, and we will continue on our pathway of sustainable growth and a focus on delivering strong value proposition to our students in the development of the international markets.

謝謝你，傑克。我們的業務動能持續到第四季度，淨收入為 510 萬美元，季增 10%。第四季毛利率為79.0%。總收入為 750 萬美元，我們將繼續走可持續成長的道路，並專注於在國際市場的發展中為我們的學生提供強大的價值主張。

Q4 operating expenses were USD 6.2 million, flattish compared to the last quarter. Specifically, this has been driven by Q4 sales and marketing expenses of USD 4.0 million, a 7% sequential increase from Q3 due to increased branding and localization investments, such as increased local marketing and operations personnel and localized marketing efforts. Q4 product development expenses were USD 0.4 million, a 31% sequential decrease due to a reduction in research and development projects. Finally, Q4 general and administrative expenses were USD 1.7 million, a 5% sequential decrease compared to Q3. Overall, Q4 operating loss was USD 2.2 million, while net loss was $2.0 million, a 29% sequential decrease from Q3.

第四季營運費用為 620 萬美元，與上季持平。具體來說，這是由於第四季度銷售和行銷費用為 400 萬美元，比第三季度環比增長 7%，原因是品牌和本地化投資增加，例如增加本地行銷和營運人員以及本地化行銷力度。第四季產品開發費用為40萬美元，季減31%，原因是研發項目減少。最後，第四季的一般和管理費用為 170 萬美元，比第三季季減 5%。整體而言，第四季營運虧損為 220 萬美元，淨虧損為 200 萬美元，比第三季季減 29%。

And in March, the second consecutive quarter in which the company has managed to decrease net loss. Q4 GAAP and non-GAAP earning per ADS were both negative USD 0.36 and USD 0.34, respectively. The company's total cash, cash equivalents and time deposits were USD 23.1 million at the end of the fourth quarter. Advances from students were USD 15.2 million at the end of the fourth quarter.

3月份，該公司連續第二季淨虧損減少。第四季 GAAP 和非 GAAP 每美國存託股收益分別為負 0.36 美元和 0.34 美元。截至第四季末，公司現金、現金等價物及定期存款總額為2,310萬美元。截至第四季末，學生預付款為 1,520 萬美元。

For more of our 2022 full year financial results, please refer to our earnings press release for further details. Looking forward to the first quarter of 2023, we currently expect the net gross billings to be between USD 8.0 million and USD 8.2 million. The above outlook is based on our current market conditions and reflects the company's current and preliminary estimates of the market and operating conditions and customer demand, which are all subject to change. This concludes our prepared remarks. We will now open the line for questions. Operator, please go ahead.

有關我們 2022 年全年財務業績的更多信息，請參閱我們的收益新聞稿以了解更多詳細信息。展望 2023 年第一季度，我們目前預計淨總營收將在 800 萬美元至 820 萬美元之間。上述展望基於我們當前的市場狀況，反映了公司對市場和經營狀況以及客戶需求的當前和初步估計，這些估計都可能發生變化。我們準備好的演講到此結束。我們現在將開通提問熱線。接線員，請繼續。

We will now begin the question-and-answer session. (Operator Instructions). Since there appears to be no questions, I would like to turn the call back over to David for any closing remarks.

我們現在開始問答環節。 （操作員說明）。由於似乎沒有問題，我想將電話轉回給大衛，讓他發表結束語。

Okay. Thank you. So thank you once again for joining us today. If anyone has further questions, please contact 51Talk's Investor Relations for the contact information provided on our website. Thank you.

好的。謝謝。再次感謝您今天加入我們。如果有人還有其他疑問，請聯絡 51Talk 投資者關係部，以取得我們網站上提供的聯絡資訊。謝謝。

This concludes this conference call. You may now disconnect your lines. Thank you.

本次電話會議到此結束。現在您可以斷開線路。謝謝。