China Online Education Group (NYSE: COE) reported Q1 EPS of $0.05, in-line with the analyst estimate of $0.05. Revenue for the quarter came in at $91.6 million versus the consensus estimate of $92.73 million.

"We are delighted to report another solid quarter as first quarter net revenue reached RMB600.4 million, a 23.3% year-over-year increase that once again beat the top end of our guidance," said Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk. "Remarkably, our net revenues from K12 one-on-one mass market offering grew 36.0% compared to first quarter last year. This performance was mainly driven by an increase in the number of active students, which rose 37.0% year-over-year. These results illustrate the massive opportunity that exists in K12 one-on-one mass market with the growing acceptance of online education.

"In addition to organic growth through our existing strategies, we have also been pursuing external opportunities with our recent acquisition of Koala Reading. We are leveraging its expertise in Chinese reading assessments, and plan to further develop a trailblazing English reading skill evaluation system that allows us to improve our product offerings. Furthermore, this acquisition widens our course offerings with additional Chinese courses, which is in line with the long term strategy of diversifying our curriculum portfolio. Along with our efforts in enhancing teacher operations, optimizing curriculums and developing AI-powered robotic tutors, the acquisition of Koala Reading is a testament to our commitment in providing the best learning experience to our students.

"In order to solidify our leadership in K12 one-on-one mass market English education, we are focused on ramping up our branding and marketing efforts and improving student satisfaction while also investing in product development and upgrading course offerings and services. We are excited to announce the appointment of Ms. Maine Mendoza as our latest Brand Ambassador and 51Talk Guest Teacher. Ms. Maine Mendoza is a well-known Filipino actress and social media influencer. Her appointment instantly became the most tweeted event in the Philippines and further strengthens our brand recognition in the country. I look forward to continuing to execute our mission to deliver long term benefits to all stakeholders," concluded Mr. Huang.

"Starting off 2021 with such a solid financial and operating performance is well within our expectations," said Mr. Min Xu, Chief Financial Officer of 51Talk. "I am pleased to report that in addition to robust growth in net revenues, we delivered another profitable quarter with GAAP net income of RMB8.0 million and non-GAAP net income of RMB16.8 million, primarily resulting from significantly higher lesson consumption and improved operating efficiency. In order to keep the Company on track for healthy growth and profitability, we are proactively refining our operations to maintain high efficiency at all levels, ultimately stimulating student growth and brand awareness, as a leading and dependable online education platform in China."

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