China Online Education Group (NYSE: COE) was one of the top gainers at the close of the week, and has been gaining upside momentum for the better part of the month. Some days back, the company reported some impressive Q3 results that showed significant growth in revenues.
The company announced that, it had net revenues of $57.2 million representing an increase of 35% compared to a similar quarter in the last financial year. Gross billings for the quarter stood at $76.6 million representing an increase of 28.9% compared to a similar quarter in the last financial year The company also reported an increase in gross margins to hit 71.7%, as compared to a gross margin of 63.8% in the last financial year. On top of that, the company reported that its GAAP net loss decreased by 94.1% year-over-year and 83.6% compared to Q2 of 2019. In the quarter, cash and cash equivalents hit $126.8 million.
The company noted that Q3 of this year was strong just like its previous third-quarter results. It noted that, this was the result of a strong focus on strategy execution. The CEO, Jack Jiajia noted that, they managed to exceed the high end of their net revenues and gross billings by 2.3% and 5.7% respectively. He further added that, the company’s primary growth driver was its K-12 mass-market one-one offering.
The CEO added that in quarter three, the company launched a mobile-friendly interactive curriculum for Classic English Junior, the company’s flagship program. He also added that, the company was happy to have delivered its key milestone of more than 100 million 1-on-1 online English lessons since it started in 2011.
Going by its price action, the stock has been gaining upside momentum for the better part of December. In Friday’s session, the stock gained by 37.36% to close the day at $10.00. Volumes in the day stood at 45.37k.
About China Online Education Group
China Online Education Group offers online English education in China and the Philippines. It is based in Beijing, China.