COE Intrinsic Value Calculator – 51Talk Online Education Group Reports Negative Non-GAAP EPS of -$0.64, Revenue of $7.8M

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51 ($NYSEAM:COE)Talk Online Education Group provides online English language courses to students in China, ranging from young learners to professionals. The weak Non-GAAP EPS was primarily driven by a decrease in enrollment year-over-year and an increase in costs. Costs for the quarter increased 8% year-over-year, as the company invested heavily in marketing and product development. Overall, the reported numbers were below analyst expectations and the stock price fell significantly following the announcement.

These weak results raise questions about the company’s ability to continue to grow and remain competitive in the online education space. Management will need to focus on increasing enrollment and controlling costs in order to improve performance in future quarters.

Earnings

51 Talk Online Education Group recently released their second-quarter report for FY2023, stating they had earned a total revenue of $7.8 million, and non-GAAP earnings per share of -$0.64. Compared to the same quarter last year, there has been a significant decrease in total revenue, with figures dropping from $89.67 million to $6.26 million in the past three years. This can be attributed to the global pandemic and its associated economic effects, as well as the disruption of the traditional education system. The company is attempting to address this issue by investing heavily in online education, particularly in China where the market for this type of education is expected to grow significantly in the years to come.

51 Talk Online Education Group is also focused on improving its online learning platform and increasing its portfolio of courses offered. It remains to be seen how quickly 51 Talk Online Education Group will be able to recover from this decline. With an increased focus on online education and improved technology, the company may be able to recover from recent losses and continue to grow its total revenue in the coming years.

About the Company

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Share Price

On Monday, the stock of 51 TALK ONLINE EDUCATION opened at $7.8 and closed at $7.8, down by 2.5% from prior closing price of 8.0. This followed the group’s release of its latest financial result, which reported a negative Non-GAAP EPS of -$0.64, on revenue of $7.8M. The negative Non-GAAP EPS was attributable to higher operating expenses, which ate into the company’s profits. This was further compounded by the fact that the company’s online education service is heavily reliant on the student body’s ability to pay for such services, which has been disrupted due to the ongoing pandemic. Live Quote…

Analysis – COE Intrinsic Value Calculator

At GoodWhale, we have analyzed the fundamentals of 51 TALK ONLINE EDUCATION and have assigned an intrinsic value of around $5.6. This value has been calculated using our proprietary Valuation Line. Currently, the stock is being traded at $7.8, which is an overvaluation of 39.1%. Hence, there is potential to gain from investing in 51 TALK ONLINE EDUCATION shares at this time. More…

Summary

51Talk Online Education Group recently reported their Non-GAAP earnings per share (EPS) to be -$0.64 and total revenue to be $7.8 million. Investors should take into consideration the company’s current performance when assessing its future potential. Additionally, it is important to consider the company’s long-term growth strategy, as well as potential risks associated with investing in 51Talk Online Education Group.