China Online Education Group Posts Adj. Loss In Q2; Issues Q3 Guidance

(RTTNews) - China Online Education Group (COE) said it recorded a net loss for the second quarter mainly due to higher operating expenses. The company reported a 17.5% increase of net revenue primarily driven by a 35.7% year-over-year increase in the number of active students.

Net loss for the second quarter was RMB 27.0 million, compared with net income of RMB 32.8 million, last year. Net loss per ADS was RMB 1.24, compared to profit of RMB 1.44.

Non-GAAP net loss was RMB 17.8 million, compared to non-GAAP net income of RMB 39.6 million, previous year. Non-GAAP net loss per ADS was RMB 0.82, compared to net income per ADS of RMB 1.75.

Net revenues were RMB 579.8 million, up 17.5% from a year ago. The number of active students was 404,700, a 35.7% increase from 298,200, prior year.

For the third quarter, the company currently expects net revenues to be between RMB 550.0 million and RMB 555.0 million, an increase of approximately 2.1% to 3.1% from last year.