China Online Education Group (NYSE: COE) reported Q1 EPS of ($0.07), $0.07 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $23.2 million versus the consensus estimate of $26.52 million.

Outlook

For the second quarter of 2017, the Company currently expects:

• Net revenues to be between RMB179 million to RMB184 million, which would represent an increase of approximately 85% to 90% from RMB96.9 million for the same quarter last year; and
• Gross billings to be between RMB352 million to RMB359 million, which would represent an increase of approximately 80% to 84% from RMB195.2 million for the same quarter last year.

First Quarter 2017 Financial and Operational Highlights

• Gross billings were RMB325.1 million (US$47.2 million), a 110.1% increase from RMB154.8 million for the first quarter of 2016.
• Net revenues were RMB159.5 million (US$23.2 million), a 121.0% increase from RMB72.2 million for the first quarter of 2016.
• Gross margin was 65.7%, compared with 63.6% for the first quarter of 2016.
• Percentage of gross billings contributed by K-12 students was 68.7%, compared with 42.2% for the first quarter of 2016.
• Net cash provided by operating activities reached RMB30.5 million (US$4.4 million).

For earnings history and earnings-related data on China Online Education Group (COE) click here.