BEIJING, Dec. 4, 2017 /PRNewswire/ --China Online
Education Group ("51Talk" or the "Company") (NYSE: COE), a leading
online education platform in China, with core expertise in English
education, today announced its unaudited financial results for the
third quarter ended September 30,
2017.
Third Quarter 2017 Financial
and Operational Highlights
- Net revenues were RMB236.1
million (US$35.5 million), a
95.1% increase from RMB121.0 million
for the third quarter of 2016.
- Gross billings were RMB353.4
million (US$53.1 million), a
51.5% increase from RMB233.2 million
for the third quarter of 2016.
- Gross margin was 61.8%, compared with 65.8% for the third
quarter of 2016.
- Percentage of gross billings contributed by K-12 students was
76.3%, compared with 58.1% for the third quarter of 2016.
- Net cash used in operating activities was RMB19.8 million (US$3.0
million).
Key Operating Data
|
For the three
months ended
|
|
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Y-o-Y
|
|
2016
|
|
2017
|
|
Change
|
|
|
|
|
|
|
Gross billings (in
RMB millions)
|
233.2
|
|
353.4
|
|
51.5%
|
Gross billings
contributed by K-12 students (in RMB millions)
|
135.4
|
|
269.8
|
|
99.2%
|
Active
students[2] (in thousands)
|
101.2
|
|
176.6
|
|
74.5%
|
|
|
|
|
|
|
Mr. Jack Jiajia Huang, Founder,
Director and Chief Executive Officer of 51Talk, said, "During the
third quarter of 2017, we decided to focus attention going forward
on our K-12 one-on-one mass-market product offering, which has a
better margin proposition and we believe is better suited to reach
the large market potential before us. Our premium American Academy
one-on-one program, which has a lower margin profile, will be
positioned as a complementary product in our K-12 offerings. We
believe this focus on the mass-market product offering will provide
us a clearer path to profitability for our one-on-one
business."
Mr. Huang continued, "The K-12 small class offering that was
piloted in late June, is also an important strategic product for
us. We are at the forefront of the market with this offering and
are encouraged by the market feedback with increasing student
enrollments and improving operating metrics. We will continue to
refine our small class offering with further improvements in
technology, curriculum and teacher training methodologies, which
will require ongoing investments in the coming quarters. We believe
our investments will be rewarded and this product will become a key
part of our product portfolio in the longer term."
Mr. Jimmy Lai, Chief Financial
Officer of 51Talk, added, "Our net revenues continued to show
dynamic growth in the third quarter of 2017, as our students booked
a record number of lessons on our platform. The number of quarterly
active students reached 176,600 and the number of foreign teachers
on our platform reached approximately 14,800[3] at the
end of the quarter. Our gross billings were flat on a sequential
basis, as growth from the K-12 one-on-one mass-market program was
offset by decreases in the American Academy and adult programs. The
gross billings contributed by K-12 students represented a
record-high 76.3% of our total gross billings in the quarter and
remain our growth driver. Ramping up the small class offering drove
the increase in operating expenses for the quarter. We are
confident that our strategy to focus on the K-12 one-on-one
mass-market program and develop our K-12 small class offering bodes
well with our operational and financial goals, and will provide
better visibility for our future profitability."
[1] Gross
billings for a specific period, which is one of the Company's key
operating data, is defined as the total amount of cash received for
the sale of course packages and services in such period, net of the
total amount of refunds in such period.
|
[2] An
"active student" for a specified period refers to a student who
booked at least one paid lesson, and excluding those students who
only attended paid live broadcasting lessons or trial
lessons.
|
[3] The
number of foreign teachers is defined as those who are qualified to
deliver lessons on our platform as of the end of the period,
including both office-based and home-based foreign
teachers.
|
Third Quarter 2017 Financial Results
Net Revenues
Net revenues for the third quarter of 2017 were RMB236.1 million (US$35.5
million), a 95.1% increase from RMB121.0 million for the same quarter last year.
The increase was primarily attributed to an increase in the number
of active students and, to a lesser extent, an increase in the
average revenue per active student. The number of active students
in the third quarter of 2017 was 176.6 thousand, a 74.5% increase
from 101.2 thousand for the same quarter last year.
Cost of Revenues
Cost of revenues for the third quarter of 2017 was RMB90.2 million (US$13.6
million), a 118.0% increase from RMB41.4 million for the same quarter last year.
The increase was primarily driven by an increase in total service
fees paid to teachers, due to the delivery of an increased number
of paid lessons as well as the increased cost per lesson with the
expansion of western teachers.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2017 was RMB145.9 million (US$21.9
million), an 83.3% increase from RMB79.6 million for the same quarter last
year.
Gross margin for the third quarter of 2017 was 61.8%, compared
with 65.8% for the same quarter last year. The decrease was mainly
attributable to the expansion of the American Academy program,
which has a lower gross profit margin.
Operating Expenses
Total operating expenses for the third quarter of 2017 were
RMB285.7 million (US$42.9 million), a 40.3% increase from
RMB203.6 million for the same quarter
last year. The increase was mainly the result of increases in sales
and marketing, product development, and general and administrative
expenses.
Sales and marketing expenses for the third quarter of 2017 were
RMB167.1 million (US$25.1 million), a 38.5% increase from
RMB120.7 million for the same quarter
last year. The increase was mainly due to higher expenses related
to an increase in the number of sales and marketing personnel, as
well as increased marketing and branding promotional expenses.
Excluding share-based compensation expenses, non-GAAP sales and
marketing expenses for the third quarter of 2017 were RMB165.8 million (US$24.9
million), a 38.8% increase from RMB119.5 million for the same quarter last
year.
Product development expenses for the third quarter of 2017 were
RMB61.5 million (US$9.2 million), a 47.9% increase from
RMB41.6 million for the same quarter
last year. The increase was primarily the result of newly added
technology and course development-related personnel to further
strengthen technology platforms and expand curriculum offerings, as
well as higher technical services fees, partially offset by lower
recognized share-based compensation expenses. Excluding share-based
compensation expenses, non-GAAP product development expenses for
the third quarter of 2017 were RMB58.7
million (US$8.8 million), a
56.3% increase from RMB37.5 million
for the same quarter last year.
General and administrative expenses for the third quarter of
2017 were RMB57.0 million
(US$8.6 million), a 37.9% increase
from RMB41.3 million for the same
quarter last year. The increase was primarily due to additional
expenses for personnel necessary to support expanded operations, as
well as higher recruitment costs and costs related to compliance
and reporting obligations as a public company, partially offset by
lower recognized share-based compensation expenses. Excluding
share-based compensation expenses, non-GAAP general and
administrative expenses for the third quarter of 2017 were
RMB52.8 million (US$7.9 million), a 45.2% increase from
RMB36.4 million for the same quarter
last year.
Loss from Operations
Loss from operations for the third quarter of 2017 was
RMB139.8 million (US$21.0 million), compared with RMB124.0 million for the same quarter last
year.
Non-GAAP loss from operations for the third quarter of 2017 was
RMB131.4 million (US$19.8 million), compared with RMB113.8 million for the same quarter last
year.
Net Loss
Net loss for the third quarter of 2017 was RMB141.8 million (US$21.3
million), compared with RMB123.5
million for the same quarter last year.
Non-GAAP net loss for the third quarter of 2017 was RMB133.5 million (US$20.1
million), compared with RMB113.3
million for the same quarter last year.
Basic and diluted net loss per American depositary share ("ADS")
attributable to ordinary shareholders for the third quarter of 2017
was RMB7.05 (US$1.05), compared with basic and diluted net
loss per ADS attributable to ordinary shareholders of RMB6.17 for the same quarter last year. Each ADS
represents 15 Class A ordinary shares.
Non-GAAP basic and diluted net loss per ADS attributable to
ordinary shareholders for the third quarter of 2017 was
RMB6.60 (US$1.05), compared with non-GAAP basic and
diluted net loss per ADS attributable to ordinary shareholders of
RMB5.66 for the same quarter last
year.
Balance Sheet
As of September 30, 2017, the
Company had total cash, cash equivalents, time deposits and
short-term investments of RMB656.6
million (US$98.7 million),
compared with RMB647.0 million as of
December 31, 2016.
The Company had deferred revenues (current and non-current) of
RMB1,089.1 million (US$163.7 million) as of September 30, 2017, compared with RMB687.1 million as of December 31, 2016.
Outlook
For the fourth quarter of 2017, the Company currently
expects:
- Net revenues to be between RMB253
million to RMB260 million,
which would represent an increase of approximately 97% to 103% from
RMB128.2 million for the same quarter
last year; and
- Gross billings to be between RMB382
million to RMB390 million,
which would represent an increase of approximately 34% to 37% from
RMB285.5 million for the same quarter
last year.
The above outlook is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions and customer demand, which are all subject
to change.
Conference Call
The Company's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on
December 4, 2017 (9:00 PM Beijing/Hong
Kong time on December 4,
2017).
Dial-in details for the earnings conference call are as
follows:
United States (toll
free):
|
1-866-264-5888
|
International:
|
1-412-317-5226
|
Hong Kong (toll
free):
|
800-905-945
|
Hong Kong:
|
852-3018-4992
|
China:
|
400-120-1203
|
Participants should dial-in at least 5 minutes before the
scheduled start time and ask to be connected to the call for "China
Online Education Group."
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website at
http://ir.51talk.com.
A replay of the conference call will be accessible until
December 11, 2017, by dialing the
following telephone numbers:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10114653
|
About China Online Education Group
China Online Education Group (NYSE: COE) is a leading online
education platform in China, with
core expertise in English education. The Company's mission is to
make quality education accessible and affordable. The Company's
online and mobile education platforms enable students across
China to take live interactive
English lessons with overseas foreign teachers, on demand. The
Company connects its students with a large pool of highly qualified
foreign teachers that it assembled using a shared economy approach,
and employs student and teacher feedback and data analytics to
deliver a personalized learning experience to its students.
For more information, please visit http://ir.51talk.com.
Use of Non-GAAP Financial Measures
In evaluating its business, 51Talk considers and uses the
following measures defined as non-GAAP financial measures by the
SEC as supplemental metrics to review and assess its operating
performance: non-GAAP sales and marketing expenses, non-GAAP
product development expenses, non-GAAP general and administrative
expenses, non-GAAP operating expenses, non-GAAP loss from
operations, non-GAAP income tax expenses, non-GAAP net loss,
non-GAAP net loss attributable to ordinary shareholders, and
non-GAAP net loss attributable to ordinary shareholders per share
and per ADS. To present each of these non-GAAP measures, the
Company excludes share-based compensation expenses. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see
the table captioned "Reconciliations of non-GAAP measures to the
most comparable GAAP measures" set forth at the end of this press
release.
51Talk believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance by
excluding share-based expenses that may not be indicative of its
operating performance from a cash perspective. 51Talk believes that
both management and investors benefit from these non-GAAP financial
measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to 51Talk's historical
performance. 51Talk computes its non-GAAP financial measures using
the same consistent method from quarter to quarter and from period
to period. 51Talk believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision-making. A limitation of using
non-GAAP measures is that these non-GAAP measures exclude
share-based compensation expenses that have been and will continue
to be for the foreseeable future a significant recurring expense in
the 51Talk's business. Management compensates for these limitations
by providing specific information regarding the GAAP amounts
excluded from each non-GAAP measure. The accompanying table at the
end of this press release provides more details on the
reconciliations between GAAP financial measures that are most
directly comparable to non-GAAP financial measures.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB
to U.S. dollars are made at a rate of RMB6.6533 to US$1.00, the rate in effect as of September 30, 2017 as certified for customs
purposes by the Federal Reserve Bank of New York.
Safe Harbor Statement
This press release 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 such as "will", "expects", "anticipates", "aims",
"future", "intends", "plans", "believes", "estimates", "likely to"
and similar statements. Among other things, 51Talk's business
outlook and quotations from management in this announcement, as
well as 51Talk's strategic and operational plans, contain
forward-looking statements. 51Talk may also make written or oral
forward-looking statements in its periodic reports to the
Securities and Exchange Commission ("SEC"), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about 51Talk's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: 51Talk's goals and strategies; 51Talk's expectations
regarding demand for and market acceptance of its brand and
platform; 51Talk's ability to retain and increase its student
enrollment; 51Talk's ability to offer new courses; 51Talk's ability
to engage, train and retain new teachers; 51Talk's future business
development, results of operations and financial condition;
51Talk's ability to maintain and improve infrastructure necessary
to operate its education platform; competition in the online
education industry in China; the
expected growth of, and trends in, the markets for 51Talk's course
offerings in China; relevant
government policies and regulations relating to 51Talk's corporate
structure, business and industry; general economic and business
condition in China, the Philippines and elsewhere and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in 51Talk's filings
with the SEC. All information provided in this press release is as
of the date of this press release, and 51Talk does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please contact:
China Online Education Group
Investor Relations
+86 (10) 5692-8909
ir@51talk.com
The Piacente Group, Inc.
Brandi Piacente
+86 (10) 5730-6200
+1-212-481-2050
51talk@tpg-ir.com
CHINA ONLINE
EDUCATION GROUP
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
As
of
|
|
Dec.
31,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
274,873
|
|
287,041
|
|
43,143
|
Time deposits
|
372,150
|
|
291,560
|
|
43,822
|
Short-term investments
|
-
|
|
78,015
|
|
11,726
|
Prepaid expenses and other current assets
|
65,766
|
|
84,715
|
|
12,733
|
Total current
assets
|
712,789
|
|
741,331
|
|
111,424
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Held-to-maturity securities
|
6,943
|
|
6,814
|
|
1,024
|
Property, plant and equipment, net
|
41,576
|
|
47,777
|
|
7,181
|
Intangible assets, net
|
4,629
|
|
10,535
|
|
1,583
|
Goodwill
|
4,223
|
|
4,223
|
|
635
|
Other non-current assets
|
5,367
|
|
5,523
|
|
830
|
Total non-current
assets
|
62,738
|
|
74,872
|
|
11,253
|
|
|
|
|
|
|
Total
assets
|
775,527
|
|
816,203
|
|
122,677
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY
|
|
|
|
|
|
AND STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Deferred revenues
|
653,413
|
|
1,057,959
|
|
159,013
|
Accrued expenses and other current
liabilities
|
166,524
|
|
213,602
|
|
32,105
|
Taxes payable
|
18,923
|
|
22,775
|
|
3,423
|
Total current
liabilities
|
838,860
|
|
1,294,336
|
|
194,541
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Deferred revenues
|
33,706
|
|
31,091
|
|
4,673
|
Deferred tax liabilities
|
226
|
|
149
|
|
22
|
Other non-current liabilities
|
1,918
|
|
2,151
|
|
323
|
Total non-current
liabilities
|
35,850
|
|
33,391
|
|
5,018
|
|
|
|
|
|
|
Total
liabilities
|
874,710
|
|
1,327,727
|
|
199,559
|
CHINA ONLINE
EDUCATION GROUP
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
Dec.
31,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
deficit
|
|
(99,183)
|
|
(511,524)
|
|
(76,882)
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and
|
|
|
|
|
|
|
|
|
shareholders'
deficit
|
|
775,527
|
|
816,203
|
|
122,677
|
|
CHINA
ONLINE EDUCATION GROUP
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
For the three
months ended
|
|
For the nine
months ended
|
|
|
Sept.
30,
|
|
June
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
120,997
|
|
191,753
|
|
236,100
|
|
35,486
|
|
290,062
|
|
587,372
|
Cost of
revenues
|
(41,383)
|
|
(71,150)
|
|
(90,198)
|
|
(13,557)
|
|
(101,734)
|
|
(216,100)
|
Gross
profit
|
79,614
|
|
120,603
|
|
145,902
|
|
21,929
|
|
188,328
|
|
371,272
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(120,693)
|
|
(153,619)
|
|
(167,121)
|
|
(25,119)
|
|
(326,277)
|
|
(466,817)
|
|
Product development
expenses
|
(41,599)
|
|
(50,686)
|
|
(61,519)
|
|
(9,246)
|
|
(106,641)
|
|
(162,806)
|
|
General and
administrative expenses
|
(41,348)
|
|
(54,095)
|
|
(57,032)
|
|
(8,572)
|
|
(116,896)
|
|
(159,491)
|
Total operating
expenses
|
(203,640)
|
|
(258,400)
|
|
(285,672)
|
|
(42,937)
|
|
(549,814)
|
|
(789,114)
|
Loss from
operations
|
(124,026)
|
|
(137,797)
|
|
(139,770)
|
|
(21,008)
|
|
(361,486)
|
|
(417,842)
|
Interest and other
income/(expenses), net
|
1,007
|
|
(409)
|
|
(1,091)
|
|
(164)
|
|
2,081
|
|
(537)
|
Loss before income
tax expenses
|
(123,019)
|
|
(138,206)
|
|
(140,861)
|
|
(21,172)
|
|
(359,405)
|
|
(418,379)
|
Income tax
expenses
|
(465)
|
|
(1,058)
|
|
(973)
|
|
(146)
|
|
(1,207)
|
|
(2,759)
|
Net loss
|
(123,484)
|
|
(139,264)
|
|
(141,834)
|
|
(21,318)
|
|
(360,612)
|
|
(421,138)
|
|
Accretions to
preferred shares redemption value
|
-
|
|
-
|
|
-
|
|
-
|
|
(91,631)
|
|
-
|
|
Deemed contribution
from preferred shares
|
-
|
|
-
|
|
-
|
|
-
|
|
2,618
|
|
-
|
Net loss attributable
to ordinary shareholders
|
(123,484)
|
|
(139,264)
|
|
(141,834)
|
|
(21,318)
|
|
(449,625)
|
|
(421,138)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
|
|
|
|
|
|
|
|
|
|
|
|
|
computing basic and
diluted loss per share
|
300,385,644
|
|
301,352,242
|
|
301,570,803
|
|
301,570,803
|
|
165,006,216
|
|
301,263,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and
diluted
|
(0.41)
|
|
(0.46)
|
|
(0.47)
|
|
(0.07)
|
|
(2.72)
|
|
(1.40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA
ONLINE EDUCATION GROUP
|
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
|
|
(In thousands
except for number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the nine
months ended
|
|
|
|
|
Sept.
30,
|
|
June
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ADS
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and
diluted
|
(6.17)
|
|
(6.90)
|
|
(7.05)
|
|
(1.05)
|
|
(40.87)
|
|
(21.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(123,484)
|
|
(139,264)
|
|
(141,834)
|
|
(21,318)
|
|
(360,612)
|
|
(421,138)
|
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
2,499
|
|
(6,064)
|
|
(7,364)
|
|
(1,107)
|
|
7,273
|
|
(19,439)
|
|
|
Total comprehensive
loss
|
(120,985)
|
|
(145,328)
|
|
(149,198)
|
|
(22,425)
|
|
(353,339)
|
|
(440,577)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses are included in the operating expenses as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(1,187)
|
|
(863)
|
|
(1,283)
|
|
(193)
|
|
(4,058)
|
|
(3,338)
|
|
|
Product development
expenses
|
(4,056)
|
|
1,221
|
|
(2,840)
|
|
(427)
|
|
(12,467)
|
|
(6,765)
|
|
|
General and
administrative expenses
|
(4,991)
|
|
(6,465)
|
|
(4,238)
|
|
(637)
|
|
(22,531)
|
|
(17,488)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA ONLINE
EDUCATION GROUP
|
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
|
(In
thousands except for number of shares and per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the nine
months ended
|
|
|
|
|
Sept.
30,
|
|
June
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(120,693)
|
|
(153,619)
|
|
(167,121)
|
|
(25,119)
|
|
(326,277)
|
|
(466,817)
|
|
Less: Share-based
compensation expenses
|
|
(1,187)
|
|
(863)
|
|
(1,283)
|
|
(193)
|
|
(4,058)
|
|
(3,338)
|
|
Non-GAAP sales and
marketing expenses
|
|
(119,506)
|
|
(152,756)
|
|
(165,838)
|
|
(24,926)
|
|
(322,219)
|
|
(463,479)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
expenses
|
|
(41,599)
|
|
(50,686)
|
|
(61,519)
|
|
(9,246)
|
|
(106,641)
|
|
(162,806)
|
|
Less: Share-based
compensation expenses
|
|
(4,056)
|
|
1,221
|
|
(2,840)
|
|
(427)
|
|
(12,467)
|
|
(6,765)
|
|
Non-GAAP product
development expenses
|
|
(37,543)
|
|
(51,907)
|
|
(58,679)
|
|
(8,819)
|
|
(94,174)
|
|
(156,041)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(41,348)
|
|
(54,095)
|
|
(57,032)
|
|
(8,572)
|
|
(116,896)
|
|
(159,491)
|
|
Less: Share-based
compensation expenses
|
|
(4,991)
|
|
(6,465)
|
|
(4,238)
|
|
(637)
|
|
(22,531)
|
|
(17,488)
|
|
Non-GAAP general and
administrative expenses
|
|
(36,357)
|
|
(47,630)
|
|
(52,794)
|
|
(7,935)
|
|
(94,365)
|
|
(142,003)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
(203,640)
|
|
(258,400)
|
|
(285,672)
|
|
(42,937)
|
|
(549,814)
|
|
(789,114)
|
|
Less: Share-based
compensation expenses
|
|
(10,234)
|
|
(6,107)
|
|
(8,361)
|
|
(1,257)
|
|
(39,056)
|
|
(27,591)
|
|
Non-GAAP operating
expenses
|
|
(193,406)
|
|
(252,293)
|
|
(277,311)
|
|
(41,680)
|
|
(510,758)
|
|
(761,523)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(124,026)
|
|
(137,797)
|
|
(139,770)
|
|
(21,008)
|
|
(361,486)
|
|
(417,842)
|
|
Less: Share-based
compensation expenses
|
|
(10,234)
|
|
(6,107)
|
|
(8,361)
|
|
(1,257)
|
|
(39,056)
|
|
(27,591)
|
|
Non-GAAP loss from
operations
|
|
(113,792)
|
|
(131,690)
|
|
(131,409)
|
|
(19,751)
|
|
(322,430)
|
|
(390,251)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA ONLINE
EDUCATION GROUP
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(In
thousands except for number of shares and per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the nine
months ended
|
|
|
|
|
Sept.
30,
|
|
June
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
(465)
|
|
(1,058)
|
|
(973)
|
|
(146)
|
|
(1,207)
|
|
(2,759)
|
|
Less: Tax impact of
share-based compensation expenses
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Non-GAAP income tax
expenses
|
|
(465)
|
|
(1,058)
|
|
(973)
|
|
(146)
|
|
(1,207)
|
|
(2,759)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(123,484)
|
|
(139,264)
|
|
(141,834)
|
|
(21,318)
|
|
(360,612)
|
|
(421,138)
|
|
Less: Share-based
compensation expenses
|
|
(10,234)
|
|
(6,107)
|
|
(8,361)
|
|
(1,257)
|
|
(39,056)
|
|
(27,591)
|
|
Non-GAAP net
loss
|
|
(113,250)
|
|
(133,157)
|
|
(133,473)
|
|
(20,061)
|
|
(321,556)
|
|
(393,547)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to ordinary shareholders
|
|
(123,484)
|
|
(139,264)
|
|
(141,834)
|
|
(21,318)
|
|
(449,625)
|
|
(421,138)
|
|
Less: Share-based
compensation expenses, net of tax
|
|
(10,234)
|
|
(6,107)
|
|
(8,361)
|
|
(1,257)
|
|
(39,056)
|
|
(27,591)
|
|
Non-GAAP net loss
attributable to ordinary shareholders
|
(113,250)
|
|
(133,157)
|
|
(133,473)
|
|
(20,061)
|
|
(410,569)
|
|
(393,547)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
computing basic and
diluted loss per share
|
|
300,385,644
|
|
301,352,242
|
|
301,570,803
|
|
301,570,803
|
|
165,006,216
|
|
301,263,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
share attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and
diluted
|
|
(0.38)
|
|
(0.44)
|
|
(0.44)
|
|
(0.07)
|
|
(2.49)
|
|
(1.31)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
ADS attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and
diluted
|
|
(5.66)
|
|
(6.60)
|
|
(6.60)
|
|
(1.05)
|
|
(37.32)
|
|
(19.65)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/china-online-education-group-announces-third-quarter-2017-results-300565774.html
SOURCE China Online Education Group