The K-12 online education market in China is poised to grow by $18.93 bn during 2022-2026, progressing at a CAGR of 15.45{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.
This study identifies the outbreak of COVID-19 increased the demand for online education in China as one of the prime reasons driving the K-12 online education market growth in China during the next few years. The market is driven by the increased adoption of online test preparation courses in China and improved accessibility to quality education.
The report on the K-12 online education market in China provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.
The publisher’s robust vendor analysis is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading K-12 online education market vendors in China that include Ambow Education Holding Ltd., Beijing Huaxia Dadi Distance Learning, China Online Education Group, ChinaEDU Corp., EIC Education, iTutorGroup Ltd., Kaplan Inc., New Oriental Education and Technology, TAL Education Group, and Xueda Education.
Also, the K-12 online education market in China analysis report includes information on upcoming trends and challenges that will influence market growth. This is to help companies strategize and leverage all forthcoming growth opportunities.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to an analysis of the key vendors.
Key Topics Covered:
1. Executive Summary
1.1 Market Overview
2. Market Landscape
2.1 Market ecosystem
2.2 Value Chain Analysis
2.2.1 Inputs
2.2.2 Operations
2.2.3 Marketing and sales
2.2.4 Support activities
2.2.5 Innovations
3. Market Sizing
3.1 Market definition
3.2 Market segment analysis
3.3 Market size 2021
3.4 Market outlook: Forecast for 2021 – 2026
3.4.1 Estimating growth rates for emerging and high-growth markets
3.4.2 Estimating growth rates for mature markets
4. Five Forces Analysis
5. Market Segmentation by Product
5.1 Market segments
5.2 Comparison by Product
5.3 Online schools – Market size and forecast 2021-2026
5.4 Language learning courses – Market size and forecast 2021-2026
5.5 Test preparation services – Market size and forecast 2021-2026
5.6 Market opportunity by Product
6. Market Segmentation by End-user
6.1 Market segments
6.2 Comparison by End-user
6.3 Institutional learners – Market size and forecast 2021-2026
6.4 Individual learners – Market size and forecast 2021-2026
6.5 Market opportunity by End-user
7. Customer landscape
7.1 Overview
8. Drivers, Challenges, and Trends
8.1 Market Driver
8.1.1 Increased adoption of online test preparation courses in China
8.1.2 Improved accessibility to quality education
8.1.3 Outbreak of COVID-19 increased the demand for online education in china
8.2 Market challenges
8.2.1 Skewed interaction and socializing opportunities for students
8.2.2 Availability of low-priced and open educational resources
8.2.3 Rising number of unorganized private tutors
8.3 Market trends
8.3.1 Growing customization of online education services
8.3.2 Increasing use of cloud computing in K-12 online education system
In the news release, China Online Education Group Announces Full Year 2021 Results, issued 24-Mar-2022 by China Online Education Group over PR Newswire, we are advised by the company that there are some figures and words updates based on the original copy. The complete, corrected release follows:
China Online Education Group Announces Full Year 2021 Results
BEIJING, March 24, 2022 /PRNewswire/ — China Online Education Group (“51Talk” or the “Company”) (NYSE: COE), a leading online education platform in China, with core expertise in English education, announced its unaudited financial results for the third quarter ended September 30, 2021, as well as the fourth quarter and full year ended December 31, 2021.
Full Year 2021 Financial and Operating Highlights
Net revenues were RMB2,166.5 million (US$340.0 million), a 5.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB2,054.1 million for the full year 2020.
Gross margin was 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 71.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the full year 2020.
GAAP net income was RMB105.7 million(US$16.6 million), compared with GAAP net income RMB147.0 million for the full year 2020.
Non-GAAP net income1 was RMB132.7 million (US$20.8million), compared with non-GAAP net income RMB 173.7 million for the full year 2020.
Operating cash outflow was RMB676.1 million (US$106.1 million), compared with RMB719.2 million cash inflow for the full year 2020.
Fourth Quarter 2021 Financial and Operating Metrics
Net revenues were RMB412.8 million (US$64.8 million), a 22.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB535.1 million for the fourth quarter of 2020.
Gross margin was 78.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 72.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the fourth quarter of 2020.
Net income was RMB52.0million (US$8.2 million), compared with net income of RMB31.8 million for the fourth quarter of 2020.
Non-GAAP net income was RMB55.0 million (US$8.6 million), compared with non-GAAP net income of RMB38.6 million for the fourth quarter of 2020.
Operating cash outflow was RMB268.6 million (US$42.1 million), compared with RMB188.5 million of operating cash inflow for the fourth quarter of 2020.
Cash, cash equivalents, restricted cash, time deposits and short-term investments balance stood at RMB992.6 million (US$155.8 million) as of December 31, 2021.
Third Quarter 2021 Financial and Operating Metrics
Net revenues were RMB573.6 million (US$90.0 million), a 6.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB538.5 million for the third quarter of 2020.
Gross margin was 73.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 72.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the third quarter of 2020.
Net income was RMB 72.7 million (US$11.4 million), compared with net income of RMB31.6 million for the third quarter of 2020.
Non-GAAP net income1 was RMB78.7 million (US$12.3 million), compared with non-GAAP net income of RMB38.5 million for the third quarter of 2020.
Operating cash outflow was RMB376.7 million (US$59.1 million), compared with RMB186.1 million of operating cash inflow for the third quarter of 2020.
Cash, cash equivalents, time deposits and short-term investments balance stood at RMB1,265.7 million (US$198.6 million) as of September 30, 2021.
Active students with attended lesson consumption [2]
(in thousands)
376.5
299.1
455.9
Active students with general lesson consumption[3]
(in thousands)
338.0
406.2
20.2
353.8
363.8
2.8
470.7
483.5
2.7
“In response to the changes in regulations related to After-School Tutoring (“AST”) promulgated by the Chinese government, we have taken measures to restructure our business so that the Company’s 2022 strategy will keenly focus on overseas business. In the fourth quarter, net gross billings of overseas business have reached $2.9 million, representing 222.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} sequential growth,” said Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk.,
“As the overseas business momentum continue to build, we have extended our product offerings to students in more than 50 countries and regions outside Mainland China. We have been able to leverage our strength in high quality teacher resources, interactive curriculum, and advanced technology platform to quickly establish presence in a new market. We will stick with our business model which balances growth with profitability and was proven in Mainland China market. We are excited in exploring opportunities in oversea markets and allow our Filipino teachers to help more students to be able to talk to the world,” concluded Mr. Huang.
[1] For more information on non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures” and the table captioned “Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures” set forth in this press release.
[2] An “active student with attended lesson consumption” for a specified period refers to a student who attended at least one paid lesson, excluding those students who only attended paid live broadcasting lessons or trial lessons.
[3] An “active student with general lesson consumption” for a specified period refers to a student who consumed at least one paid lesson credit, in attendance or due to minimum consumption or expiration,excluding those students who only attended paid live broadcasting lessons or trial lessons.
Third Quarter 2021 Financial Results
Net Revenues
Net revenues for the third quarter of 2021 were RMB573.6 million (US$90.0 million), a 6.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB538.5 million for the same quarter last year. The increase was primarily attributed to an increase in the number of active students, partially offset by a decrease in average revenue per active student. The number of active students with general lesson consumption in the third quarter of 2021 was 406,200, a 20.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from 338,000 for the same quarter last year. The number of active students with attended lesson consumption in the third quarter of 2021 was 376,500.
Cost of Revenues
Cost of revenues for the third quarter of 2021 was RMB151.9 million (US$23.8 million), a 3.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB146.7 million for the same quarter last year. The increase was primarily driven by an increase in total service fees paid to teachers, mainly due to an increased number of paid lessons.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2021 was RMB421.8 million (US$66.2 million), a 7.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB391.8 million for the same quarter last year.
Gross margin for the third quarter of 2021 was 73.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 72.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year. The increase was mainly attributable to the decrease of the cost per lesson, partially offset by the decrease of the revenue per lesson.
Operating Expenses
Total operating expenses for the third quarter of 2021 were RMB369.3 million (US$58.0 million), a 2.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB379.6 million for the same quarter last year. The decrease was mainly due to a decrease in sales and marketing expenses and product development expenses, partially offset by an increase of general and administrative expenses and goodwill and intangibles impairment.
Sales and marketing expenses for the third quarter of 2021 were RMB191.9 million (US$30.1 million), a 32.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB282.8 million for the same quarter last year. The decrease was mainly due to decrease in the number of personnel and lower marketing and branding expenses. Excluding share-based compensation expenses, non-GAAP sales and marketing expenses for the third quarter of 2021 were RMB191.0 million (US$30.0 million), a 31.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB280.6 million for the same quarter last year.
Product development expenses for the third quarter of 2021 were RMB40.7 million (US$6.4 million), a 6.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB43.8 million for the same quarter last year. The decrease was primarily due to lower product development personnel costs related to decrease in the number of personnel. Excluding share-based compensation expenses, non-GAAP product development expenses for the third quarter of 2021 were RMB39.3 million (US$6.2 million), a 6.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB42.1 million for the same quarter last year.
General and administrative expenses for the third quarter of 2021 were RMB104.9 million (US$16.5 million), a 97.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB53.0 million for the same quarter last year. The increase was primarily due to restructuring cost of RMB 51.4 million during the quarter. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for the third quarter were RMB101.1 million (US$15.9 million), a 102.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB50.0 million for the same quarter last year. Excluding restructuring cost and share-based compensation expenses, general and administrative expenses for the third quarter would have been RMB 49.7 million (US$7.8 million), a 0.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB50.0 million for the same quarter last year.
Goodwill and intangibles impairment for the third quarter of 2021 was RMB31.8 million (US$4.9 million), compared with nil for the same quarter last year. The goodwill and intangible impairment was mainly due to the decline of fair value related to the intangible assets and goodwill in connection with the acquisition of 91waijiao.com completed in January 2015, assets acquisition of GKid completed in December 2020, and business combination of Kaola Reading completed in the second quarter of 2021. Considering recent regulatory policies on further alleviating the burden of homework and after-school tutoring for students and the changes in operating environment, the Company recognized impairment losses of the intangible assets and goodwill in the third quarter of 2021.
Other income
The exemption for the value added tax (VAT) of consumer services has been stopped as of March 31, 2021. This exemption, which covers a wide range of consumer services, was part of the Chinese government’s effort to ease the burden of businesses affected by the COVID-19 pandemic. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of such COVID-19 relief policies was nil and RMB7.6 million in the third quarter of 2021 and 2020 respectively.
On September 30, 2019, the Ministry of Finance and the State Taxation Administration announced that from October 1, 2019 to December 31, 2021, taxpayers engaging in the provision of essential services are allowed to deduct an extra 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the deductible input value-added tax for the current period from the payable value-added tax. The impact of the policy of additional value-added tax credit for the income generated by the essential services provided by enterprises was RMB6.0 million and RMB1.7 million in the third quarter of 2021 and 2020 respectively.
Income from Operations
Operating income for the third quarter of 2021 was RMB58.4 million (US$9.2 million), compared with operating income of RMB21.4 million for the same quarter last year. Operating margin for the third quarter was 10.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with operating margin of 4.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Non-GAAP operating income for the third quarter of 2021 was RMB64.4 million (US$10.1million), compared with non-GAAP operating income of RMB28.3 million for the same quarter last year. Non-GAAP operating margin for the third quarter was 11.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP operating margin of 5.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Net income
Net income for the third quarter of 2021 was RMB72.7 million (US$11.4 million), compared with net income of RMB31.6 million for the same quarter last year. Net margin for the third quarter was 12.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with net margin of 5.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Non-GAAP net income for the third quarter of 2021 was RMB78.7 million (US$12.3 million), compared with non-GAAP net income of RMB38.5 million for the same quarter last year. Non-GAAP net margin for the third quarter was 13.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP net margin of 7.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Interest income for the third quarter of 2021 was negative RMB7.0 million, due to RMB15.0 million reversal of interest income accrual from the time-deposits early withdraw, partially offset by interest income of RMB8.0 million.
Income tax benefits for the third quarter of 2021 was RMB20.5 million.
Basic net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.22(US$0.03), compared with basic net income per share of RMB0.10 for the same quarter last year. Diluted net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.21(US$0.03), compared with diluted net income per share of RMB0.09 for the same quarter last year.
Non-GAAP basic net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.24(US$0.04), compared with non-GAAP basic net income per share attributable to ordinary shareholders of RMB0.12 for the same quarter last year. Non-GAAP diluted net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.23(US$0.04), compared with non-GAAP diluted net income per share attributable to ordinary shareholders of RMB0.11 for the same quarter last year.
Basic net income per American depositary share (“ADS”) attributable to ordinary shareholders for the third quarter of 2021 was RMB3.28(US$0.51), compared with basic net income per ADS of RMB1.46 for the same quarter last year. Diluted net income per ADS attributable to ordinary shareholders for the third quarter of 2021 was RMB3.22(US$0.51), compared with diluted net income per ADS of RMB1.38 for the same quarter last year. Each ADS represents 15 Class A ordinary shares.
Non-GAAP basic net income per ADS attributable to ordinary shareholders for the third quarter of 2021 was RMB3.56(US$0.56), compared with non-GAAP basic net income per ADS attributable to ordinary shareholders of RMB1.78 for the same quarter last year. Non-GAAP diluted net income per ADS attributable to ordinary shareholders for the third quarter of 2021 was RMB3.49(US$0.55), compared with non-GAAP diluted net income per ADS attributable to ordinary shareholders of RMB1.68 for the same quarter last year.
Balance Sheet
As of September 30, 2021, the Company had total cash, cash equivalents, time deposits and short-term investments of RMB1,265.7 million (US$198.6 million), compared with RMB1,727.7 million as of December 31, 2020. As a part of cash, cash equivalents, time deposits and short-term investments, the Company had non-current time deposits of RMB30.0 million (US$4.7 million), compared with RMB414.0 million as of December 31, 2020.
As of September 30, 2021, the Company has a consolidated net current liability of RMB919.9 million, compared with net current liability of RMB1,400.4 million as of December 31, 2020. The Company had advances from students[4] (current and non-current) of RMB2,262.5 million (US$355.0 million) as of September 30, 2021, compared with RMB2,721.0 million as of December 31, 2020.
[4] “Advances from students,” which is defined as the amount of obligation to transfer good or service to students or business partners for which consideration has been received from students in advance. The deposits from students are also presented in the total amount of “advances from students”.
Fourth Quarter 2021 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2021 were RMB412.8 million (US$64.8 million), a 22.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB535.1 million for the same quarter last year. The decrease was primarily attributed to a decrease in the number of lessons booked, partially offset by an increase in the number of active students with general lesson consumption. The number of active students with general lesson consumption in the fourth quarter of 2021 was 363,800, a 2.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from 353,800 for the same quarter last year. The number of active students with attended lesson consumption in the fourth quarter of 2021 was 299,100.
Cost of Revenues
Cost of revenues for the fourth quarter of 2021 was RMB 88.3 million (US$13.9 million), a 39.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB146.1 million for the same quarter last year. The decrease was primarily driven by a decrease in total service fees paid to teachers, mainly due to a decreased number of paid lessons.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2021 was RMB324.5 million (US$50.9 million), a 16.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB388.9million for the same quarter last year.
Gross margin for the fourth quarter of 2021 was 78.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 72.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year. The increase was mainly attributable to the decrease of the cost per lesson and the increase of the revenue per lesson.
Operating Expenses
Total operating expenses for the fourth quarter of 2021 were RMB321.2 million (US$50.4 million), a 16.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB385.7 million for the same quarter last year. The decrease was mainly due to a decrease in sales and marketing expenses and product development expenses, partially offset by an increase in general and administrative expenses.
Sales and marketing expenses for the fourth quarter of 2021 were RMB235.8 million (US$37.0 million), a 17.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB284.5 million for the same quarter last year. The decrease was mainly due to decrease in the number of personnel and lower marketing and branding expenses. Excluding share-based compensation expenses, non-GAAP sales and marketing expenses for the fourth quarter of 2021 were RMB235.4 million (US$36.9 million), a 16.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB282.6 million for the same quarter last year.
Product development expenses for the fourth quarter of 2021 were RMB15.3 million (US$2.4 million), a 65.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB44.6 million for the same quarter last year. The decrease was primarily due to lower product development personnel costs related to decrease in the number of personnel. Excluding share-based compensation expenses, non-GAAP product development expenses for the fourth quarter of 2021 were RMB15.6 million (US$2.4 million), a 64.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB43.3 million for the same quarter last year.
General and administrative expenses for the fourth quarter of 2021 were RMB69.7 million (US$10.9 million), a 23.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB56.6 million for the same quarter last year. The increase was primarily due to restructuring cost of RMB 25.8 million during the quarter. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for the fourth quarter were RMB66.7 million (US$10.5 million), a 26.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB53.0 million for the same quarter last year. Excluding restructuring cost and share-based compensation expenses, general and administrative expenses for the fourth quarter would have been RMB40.9 million (US$6.4 million), a 22.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB53.0 million for the same quarter last year.
Goodwill and intangibles impairment for the fourth quarter of 2021 was RMB0.4 million (US$0.1 million), compared with nil for the same quarter last year. The goodwill and intangibles impairment was mainly due to the decline of fair value related to the system for employee performance evaluation. Considering recent regulatory policies on further alleviating the burden of homework and after-school tutoring for students and the changes in operating environment, the Company recognized impairment losses of the intangible assets in the fourth quarter of 2021.
Other income
The exemption for the VAT of consumer services has been stopped as of March 31, 2021. This exemption, which covers a wide range of consumer services, was part of the Chinese government’s effort to ease the burden of businesses affected by the COVID-19 pandemic. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of such COVID-19 relief policies was nil and RMB7.5 million in the fourth quarter of 2021 and 2020 respectively.
On December 31, 2019, the Ministry of Finance and the State Taxation Administration announced that from October 1, 2019 to December 31, 2021, taxpayers engaging in the provision of essential services are allowed to deduct an extra 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the deductible input value-added tax for the current period from the payable value-added tax. The impact of the policy of additional value-added tax credit for the income generated by the essential services provided by enterprises was RMB0.6 million and RMB0.3 million in the fourth quarter of 2021 and 2020 respectively.
Income from Operations
Operating income for the fourth quarter of 2021 was RMB3.9 million (US$0.6 million), compared with operating income of RMB11.0 million for the same quarter last year. Operating margin for the fourth quarter was 0.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with operating margin of 2.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Non-GAAP operating income for the fourth quarter of 2021 was RMB6.9 million (US$1.1 million), compared with non-GAAP operating income of RMB17.8 million for the same quarter last year. Non-GAAP operating margin for the fourth quarter was 1.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP operating margin of 3.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Net income
Net income for the fourth quarter of 2021 was RMB52.0 million (US$8.2 million), compared with net income of RMB31.8million for the same quarter last year. Net margin for the fourth quarter was 12.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with net margin of 5.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Non-GAAP net income for the fourth quarter of 2021 was RMB55.0 million (US$8.6 million), compared with non-GAAP net income of RMB38.6 million for the same quarter last year. Non-GAAP net margin for the fourth quarter was 13.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP net margin of 7.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Income tax benefits for the fourth quarter of 2021 was RMB34.7 million.
Basic net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.16(US$0.02), compared with basic net income per share of RMB0.10 for the same quarter last year. Diluted net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.15(US$0.02), compared with diluted net income per share of RMB0.09 for the same quarter last year.
Non-GAAP basic net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.17(US$0.03), compared with non-GAAP basic net income per share attributable to ordinary shareholders of RMB0.12 for the same quarter last year. Non-GAAP diluted net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.16(US$0.03), compared with non-GAAP diluted net income per share attributable to ordinary shareholders of RMB0.11 for the same quarter last year.
Basic net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.34(US$0.37), compared with basic net income per ADS of RMB1.48 for the same quarter last year. Diluted net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.31(US$0.36), compared with diluted net income per ADS of RMB1.39 for the same quarter last year. Each ADS represents 15 Class A ordinary shares.
Non-GAAP basic net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.48(US$0.39), compared with non-GAAP basic net income per ADS attributable to ordinary shareholders of RMB1.79 for the same quarter last year. Non-GAAP diluted net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.45(US$0.38), compared with non-GAAP diluted net income per ADS attributable to ordinary shareholders of RMB1.68 for the same quarter last year.
Balance Sheet
As of December 31, 2021, the Company had total cash, cash equivalents,restricted cash, time deposits and short-term investments of RMB992.6 million (US$155.8 million)and among which RMB50.6 million of restricted cash, compared with RMB1,727.7 million as of December 31, 2020 with nil of restricted cash. As a part of cash, cash equivalents, time deposits and short-term investments, the Company had non-current time deposits of RMB100.9 million (US$15.8 million), compared with RMB414.0 million as of December 31, 2020.
As of December 31, 2021, the Company has a consolidated net current liability of RMB944.4 million, compared with net current liability of RMB1,400.4 million as of December 31, 2020. The Company had advances from students (current and non-current) of RMB1,767.2 million (US$277.3 million) as of December 31, 2021, compared with RMB2,721.0 million as of December 31, 2020.
Full Year 2021 Financial Results
Net Revenues
Net revenues for 2021 were RMB2,166.5 million (US$340.0 million), a 5.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB2,054.1 million for 2020. The increase was primarily attributed to an increase in the number of active students with general lesson consumption.
Cost of Revenues
Cost of revenues for 2021 was RMB558.0 million (US$87.6 million), a 3.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB580.4 million for 2020. The decrease was primarily driven by a decrease in total service fees paid to teachers, mainly due to the decrease of cost per lesson driven from cost control.
Gross Profit and Gross Margin
Gross profit for 2021 was RMB1,608.6 million (US$252.4 million), a 9.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB1,473.7 million for 2020.
Gross margin for 2021 was 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 71.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
Operating Expenses
Total operating expenses for 2021 were RMB1,597.4 million (US$250.7 million), a 13.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB1,412.7 million for 2020. The increase was mainly the result of the increases in sales and marketing expenses, general and administrative expenses, product development expenses and goodwill and intangibles impairment.
Sales and marketing expenses for 2021 were RMB1,062.5 million (US$166.7 million), a 2.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB1,035.6 million for 2020. The increase was mainly due to increase in the sales and marketing personnel costs. Excluding share-based compensation expenses, non-GAAP sales and marketing expenses for 2021 were RMB1,056.3 million (US$165.8 million), a 2.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB1,026.8 million for 2020.
Product development expenses for 2021 were RMB178.8 million (US$28.1 million), a 9.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB162.8 million for 2020. Excluding share-based compensation expenses, non-GAAP product development expenses for 2021 were RMB174.3 million (US$27.4 million), a 10.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB158.4 million for 2020.
General and administrative expenses for 2021 were RMB324.0 million (US$50.8 million), a 51.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB214.2 million for 2020. The increase was primarily due to restructuring cost of RMB 85.9 million during the year. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for 2021 were RMB307.5 million (US$48.3 million), a 53.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB200.8 million for 2020. Excluding restructuring cost and share-based compensation expenses, general and administrative expenses for 2021 would have been RMB221.6 million (US$34.8 million), a 10.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB200.8 million for 2020.
Goodwill and intangibles impairment for 2021 was RMB32.2 million (US$5.0 million), compared with nil for the same quarter last year. The goodwill and intangibles impairment was mainly due to the decline of fair value related to the acquisition of 91waijiao.com completed in January 2015, the assets acquisition of GKid completed in December 2020, the acquisition of Kaola Reading completed in the second quarter of 2021, and the system for employee performance evaluation. Considering recent regulatory policies on further alleviating the burden of homework and after-school tutoring for students and the changes in operating environment, the company recognized impairment losses of the intangible assets in 2021.
Other income
As part of Chinese government’s effort to ease the burden of businesses affected by the coronavirus (COVID-19) outbreak, the State Taxation Administration (STA) exempted a wide range of consumer services from VAT from January 2020. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of coronavirus relief policies was RMB10.7 million and RMB32.3 million in 2021 and 2020, respectively.
On September 30, 2019, Ministry of Finance and the State Taxation Administration announced that from October 1,2019 to December 31, 2021, the taxpayers engaging in the provision of essential services are allowed to deduct an extra 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the deductible input tax for the current period from the payable tax. The impact of the policy of additional value-added tax credit for the income generated by the essential services provided by enterprises was RMB12.5 million and RMB11.1 million in 2021 and 2020, respectively.
Income from Operations
Operating income for 2021 was RMB34.4 million (US$5.4 million), compared with RMB104.4 million for 2020. Operating margin for 2021 was 1.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with operating margin of 5.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
Non-GAAP operating income for 2021 was RMB61.4 million (US$9.6 million), compared with RMB131.2 million for 2020. Non-GAAP operating margin for 2021 was 2.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP operating margin of 6.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, operating income and non-GAAP operating income for 2021 would have been RMB23.7 million (US$3.7 million) and RMB50.7 million (US$8.0 million), representing operating margin of 1.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 2.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} respectively.
Net income
Net income for 2021 was RMB105.7 million (US$16.6 million), compared with RMB147.0 million for 2020. Net margin for 2021 was 4.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with net margin of 7.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
Non-GAAP net income for 2021 was RMB132.7 million (US$20.8 million), compared with RMB173.7 million for 2020. Non-GAAP net margin for 2021 was 6.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP net margin of 8.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, net income and non-GAAP net income for 2021 would have been RMB95.0 million (US$14.9 million) and RMB122.0 million (US$19.1 million), representing net margin of 4.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 5.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} respectively.
Income tax benefits for the fourth quarter of 2021 was RMB46.1 million.
Basic net income per ADS attributable to ordinary shareholders for 2021 was RMB4.82(US$0.76), compared with basic net income per ADS of RMB6.90 for 2020. Diluted net income per ADS attributable to ordinary shareholders for 2021 was RMB4.66(US$0.73), compared with diluted net income per ADS of RMB6.46 for 2020. Each ADS represents 15 Class A ordinary shares.
Non-GAAP basic net income per ADS attributable to ordinary shareholders for 2021 was RMB6.06(US$0.95), compared with non-GAAP basic net income per ADS of RMB8.15 for 2020. Non-GAAP diluted net income per American depositary share (“ADS”) attributable to ordinary shareholders for 2021 was RMB5.86(US$0.92), compared with non-GAAP diluted net income per ADS of RMB7.63 for 2020. Each ADS represents 15 Class A ordinary shares.
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, basic net income per ADS attributable to ordinary shareholders for 2021 was RMB4.33(US$0.68) and non-GAAP basic net income ADS attributable to ordinary shareholders for 2021 was RMB5.57(US$0.87), respectively. Excluding the favorable impact, diluted net income ADS attributable to ordinary shareholders for 2021 was RMB4.19(US$0.66) and non-GAAP diluted net income per American depositary share (“ADS”) attributable to ordinary shareholders for 2020 was RMB5.38(US$0.84), respectively.
Outlook
For the first quarter of 2022, the Company currently expects net gross billings of oversea business to be between $4.4 million and $4.6 million,representing sequential growth of 51.7 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 58.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.
In addition, the Company’s future operational and financial performance depends on the future development of the implementation of the Opinion and the success of the Company’s business adjustment plans, which is subject to inherent uncertainties at this time.
Conference Call
The Company’s management will host an earnings conference call at 8:30 AM U.S. Eastern Time on March 24, 2022 (8:30 PM Beijing/Hong Kong time on March 24, 2022).
Dial-in details for the earnings conference call are as follows:
United States (toll free):
1-800-239-9838
International:
1-323-794-2551
Mainland China:
400-120-9101
Hong Kong (toll free):
800-961-105
Hong Kong:
852-3008-1527
Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for “China Online Education Group.”
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.51talk.com.
A replay of the conference call will be accessible until December3, 2021, by dialing the following telephone numbers:
United States (toll free):
1-888-203-1112
International:
1-719-457-0820
Replay Access Code:
8412792
About China Online Education Group
China Online Education Group (NYSE: COE) is a leading online education platform in China, with core expertise in English education. The Company’s mission is to make quality education accessible and affordable. The Company’s online and mobile education platforms enable students to take live interactive English lessons, on demand. The Company connects its students with a large pool of highly qualified teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.
Use of Non-GAAP Financial Measures
In evaluating its business, 51Talk considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders, and non-GAAP net income attributable to ordinary shareholders per share and per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” set forth at the end of this press release.
51Talk believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. 51Talk believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to 51Talk’s historical performance. 51Talk computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. 51Talk believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in the 51Talk’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table at the end of this press release provides more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the rate in effect as of December 31, 2021 as certified for customs purposes by the Federal Reserve Bank of New York.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “aims”, “future”, “intends”, “plans”, “believes”, “estimates”, “likely to” and similar statements. Among other things, 51Talk’s quotations from management in this announcement, as well as 51Talk’s strategic and operational plans, contain forward-looking statements. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including statements about 51Talk’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 51Talk’s goals and strategies; 51Talk’s expectations regarding demand for and market acceptance of its brand and platform; 51Talk’s ability to retain and increase its student enrollment; 51Talk’s ability to offer new courses; 51Talk’s ability to engage, train and retain new teachers; 51Talk’s future business development, results of operations and financial condition; 51Talk’s ability to maintain and improve infrastructure necessary to operate its education platform; competition in the online education industry in China; the expected growth of, and trends in, the markets for 51Talk’s course offerings in China; relevant government policies and regulations relating to 51Talk’s corporate structure, business and industry; general economic and business condition in China, the Philippines and elsewhere and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 51Talk’s filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
CHINA ONLINE EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of
Dec. 31,
Sep.30,
Dec. 31,
Dec. 31,
2020
2021
2021
2021
RMB
RMB
RMB
US$
ASSETS
Current assets
Cash and cash equivalents
326,647
412,462
214,732
33,696
Restricted cash
–
–
50,550
7,932
Time deposits
477,408
212,436
48,437
7,601
Short-term investments
509,636
610,843
577,970
90,696
Inventory
1,935
1,656
1,080
169
Prepaid expenses and other current assets
302,057
295,309
72,450
11,369
Total current assets
1,617,683
1,532,706
965,219
151,463
Non-current assets
Property and equipment, net
21,175
28,973
17,017
2,670
Intangible assets, net
20,302
12,187
11,211
1,759
Goodwill
4,223
–
–
–
Right-of-use assets
98,001
57,312
36,907
5,792
Time deposits
414,000
30,000
100,868
15,828
Deferred tax assets
10,268
23,694
56,868
8,924
Other non-current assets
23,896
17,572
5,496
862
Total non-current assets
591,865
169,738
228,367
35,835
Total assets
2,209,548
1,702,444
1,193,586
187,298
LIABILITIES
AND SHAREHOLDERS’ DEFICIT
Current liabilities
Advances from students
2,718,776
2,261,052
1,766,032
277,129
Accrued expenses and other current liabilities
237,101
139,860
96,205
15,097
Lease liability
42,949
25,680
19,400
3,044
Taxes payable
19,288
26,001
28,027
4,398
Total current liabilities
3,018,114
2,452,593
1,909,664
299,668
Non-current liabilities
Advances from students
2,270
1,438
1,126
177
Lease liability
53,594
33,894
19,340
3,035
Other non-current liabilities
2,508
2,723
1,547
243
Total non-current liabilities
58,372
38,055
22,013
3,455
Total liabilities
3,076,486
2,490,648
1,931,677
303,123
Total shareholders’ deficit
(866,938)
(788,204)
(738,091)
(115,825)
Total liabilities and shareholders’ deficit
2,209,548
1,702,444
1,193,586
187,298
CHINA ONLINE EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands except for number of shares and per share data)
For the three months ended
For the year ended
Dec. 31,
Sep. 30,
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
2020
2021
2021
2021
2020
2021
2021
RMB
RMB
RMB
US$
RMB
RMB
US$
Net revenues
535,074
573,621
412,773
64,773
2,054,095
2,166,549
339,979
Cost of revenues
(146,134)
(151,852)
(88,276)
(13,852)
(580,417)
(557,974)
(87,558)
Gross profit
388,940
421,769
324,497
50,921
1,473,678
1,608,575
252,421
Operating expenses
Sales and marketing expenses
(284,493)
(191,909)
(235,838)
(37,008)
(1,035,620)
(1,062,523)
(166,733)
Product development expenses
(44,577)
(40,735)
(15,260)
(2,395)
(162,829)
(178,750)
(28,050)
General and administrative expenses
(56,626)
(104,907)
(69,681)
(10,934)
(214,224)
(323,968)
(50,838)
Goodwill and intangibles impairment
–
(31,780)
(396)
(62)
–
(32,176)
(5,049)
Total operating expenses
(385,696)
(369,331)
(321,175)
(50,399)
(1,412,673)
(1,597,417)
(250,670)
Other income
7,766
5,962
552
87
43,414
23,223
3,644
Income from operations
11,010
58,400
3,874
609
104,419
34,381
5,395
Interest income
11,711
(6,972)
5,735
900
38,508
21,120
3,314
Interest expense and other expenses, net
193
785
7,683
1,206
(66)
4,014
630
Income before income tax expenses
22,914
52,213
17,292
2,715
142,861
59,515
9,339
Income tax benefits
8,905
20,452
34,691
5,444
4,101
46,139
7,240
Net income attributable to ordinary shareholders
31,819
72,665
51,983
8,159
146,962
105,654
16,579
Weighted average number of ordinary shares used in computing basic income per share
Cannot I just go to the market place and get a quart of actual milk, without the need of possessing to navigate a sea of cows who are in a recreation wherever if I never milk them rapid enough, the cows will revolt and stampede my firm, producing the HR office to have to deal with issues of animal cruelty by PETA?
Together with crypto and NFT, and a myriad of other factors in worlds that may perhaps or may perhaps not genuinely exist, there has constantly been just one party in our lives that up until finally now, could not be outsourced to a application software downloaded from Apple or the metaverse. Dying.
Nope, I’m improper once again. It turns out that there is no shortage of entrepreneurial innovation that is searching to disintermediate the afterlife. Engineering has arrived now that is made to make it less complicated to depart this mortal coil. Welcome to a new application developed to democratize demise by giving immediate-to-consumer cremation.
Michael Waters of The New York Moments writes, “Less than two several hours immediately after you e book a cremation with Eirene, a begin-up in Toronto, Canada, the enterprise will dispatch a mortuary transit driver to select up your liked 1.”
I cannot assist but smile, imagining that the founders of Eirene viewed as a little bit of internet marketing humor in its identify, a reminder of the famed tune by Guide Tummy, “Goodnight, Irene.” The terms of the music contain, “I’ll see you in my desires.” Dying created quick with a double entendre.
However, the application is not really immediate to consumer. It is much more direct to your brother-in-legislation who under no circumstances liked you in the initial location. Or greater nevertheless, your beloved bride, who is familiar with the well known Alan King monologue, “Survived by his spouse.”
Walters goes on. “The overall body is ferried to a cold storage facility, exactly where it stays even though the paperwork is completed , and then a funeral director will tidy up the cremation and deliver the ashes to you in a 7 days or so.”
In the United States, cremated remains are legally required to be shipped through the Postal Service (that need to make you experience self-confident), and to that conclude, they created a distinctive tag, a Label 139, so your Aunt Tilly doesn’t finish up in Oregon alternatively of Ohio. Now prior to you get started to chuckle, herewith a statistic: The cremation fee in 2020 was 56 p.c of all fatalities, developing to 72 p.c in 2030. Alright, and who can make the cremation conclusion?
Careful right here. You may possibly imagine that you do. But it is incredibly attainable that conclusion is getting made by your Gen X, Y or Z siblings or offspring, whose lives are on the internet and digital, and the prospect of their understanding wherever the closest funeral house is much less than being aware of wherever the closest Starbucks is.
The firms, Eirene, Solace, Tulip, to title a handful of, use their software to strengthen the cremation practical experience, and aid you get rid of the corpse quick and quick. The firms just take a unpleasant, psychological, heart-felt, human second and merely do a no muss, no fuss take care of. They disintermediate the middle guy, your father, who was hoping you could say a couple of phrases in advance of you distribute his ashes in the backyard compost pit.
The providers have all raised funds and I do have an understanding of the economics at scale, especially if you command 170 + funeral homes, but I want to ask the globe, meta, digital or alternate, to think about that not every thing requirements to be built much more successful. I am likely to argue for some tears and some moments of reflection.
I know I am out of stage, but ruthless effectiveness is not generally the respond to. My wife already thinks I stay in an alternate fact environment anyway, and the huge arrive at of technological innovation operates the danger in my opinion of disintermediating thoughts, the stuff of currently being human, the “Tuesdays with Morrie” emotions. I know I’m an aged person, so I inquire you to basically roll your eyes and humor me.
But you know software package has glitches, and the internet does go down from time to time, so possibly would it eliminate you (no pun) to choose a few of minutes to glimpse at the overall body 1st. What if they got the wrong male?
Rule No. 702: How massive an urn will I will need?
Senturia is a serial entrepreneur who invests in early stage technology providers. You can listen to his weekly podcast on innovation and entrepreneurship at imthereforyoubaby.com. Be sure to e mail suggestions to Neil at neil@blackbirdv.com.
Minor ROCK, Ark., February 24, 2022–(Small business WIRE)–Arkansas Virtual Academy (ARVA), a comprehensive-time online and blended public charter university serving K-12 students all through the condition, is beginning renovations on its freshly obtained headquarters in Downtown Minimal Rock. The new 50-thousand sq. foot office environment constructing will keep its corporate places of work but also act as residence base for blended in-particular person lessons, job training, a STEM lab, and even a 3-D printer.
Pupils throughout the point out will be invited for schooling and upskilling, can take their point out assessments, and have opportunities to meet up with with area organizations desperate to uncover, practice, and employ the service of new workforce in today’s speedily growing financial state. The setting up is expecting to be open up by January 2023.
“Certainly, we are a virtual university, but we want this to be a location wherever all Arkansas students can appear for coaching and tests, a risk-free location to do their schoolwork, and a area in which they can expand and learn new career techniques,” claimed Amy Johnson, head of college at ARVA. “By means of our community partnerships, we hope to give students what they have to have to be prosperous in the upcoming period of their lives.”
ARVA is at this time on the lookout for partners to assist form and practice the up coming era of Arkansas’ do the job force. Intrigued enterprises ought to contact Amy Johnson at amyjohnson@k12.com.
The making was secured working with federal ESSER resources furnished by the American Rescue Program passed by Congress in March 2021. ESSER funds are “presented to State educational organizations and college districts to assist safely and securely reopen and maintain the harmless operation of educational institutions and address the influence of the coronavirus pandemic on the Nation’s pupils.”
In addition, for family members searching to enroll in on line faculty, ARVA is now accepting enrollments for the 2022-2023 school 12 months. To understand far more and how to enroll, check out arva.k12.com, or obtain the Stride K12 cellular application for iOS and Android units – where by family members can enroll, prepare for the 1st day of faculty, and observe students’ academic progress through the university 12 months.
About Arkansas Virtual Academy
Arkansas Virtual Academy is a complete-time community charter school serving pupils in grades K by 12. As aspect of the Arkansas public school process, ARVA is tuition-totally free and gives family members the decision to accessibility the partaking curriculum and resources presented by Stride Inc. (NYSE: LRN). For a lot more info about ARVA, take a look at arva.k12.com.
Congressman Juan Vargas to Tackle Importance of Fiscal Well being at “Score a Superior Foreseeable future” Event
SAN DIEGO, February 17, 2022–(Business WIRE)–Leading analytics program agency FICO (NYSE:FICO) will host a free of charge on-line economic training function with national and nearby nonprofit associates for San Diego-region shoppers on February 22. Congressman Juan Vargas (CA-51) will offer remarks on the importance of money education.
The function is section of FICO’s “Score A Greater Long run” program, which focuses on serving to individuals make improvements to their knowledge of their credit score and in general economic wellbeing. Buyers will find out from credit history professionals what the essential substances are that make up the FICO® Rating, and the myths and points about FICO Scores, which are utilised by 90 percent of the best U.S. loan companies.
“I am thrilled that FICO selected San Diego to be the upcoming halt for their ‘Score a Greater Future’ system,” claimed Congressman Vargas. “For many in my district and throughout the region, sturdy credit rating scores provide as the doorway to a to start with residence, wanted transportation, and eventually having cost of one’s economical wellbeing. It is vital that my constituents request financial training possibilities to better recognize their credit history scores.”
FICO has partnered with Procedure HOPE to provide attendees with the chance to make appointments for free of charge just one-on-one credit history coaching from non-earnings money well-getting coaches to enable attendees build a strategy to deal with their financial goals.
Other FICO associates for the occasion involve:
Buyer Motion
Nationwide City League
Countrywide People League
Procedure HOPE
Diversified Useful resource Community
Countrywide Association of Women Enterprise House owners
US Hispanic Chamber of Commerce
Tiny Enterprise Roundtable
San Diego Public Library
San Diego Urban League Younger Industry experts
San Diego & Imperial Women’s Company Centre
Urban League San Diego County
To sign up for the party or get a lot more data about the Rating A Much better Upcoming program, pay a visit to http://www.scoreabetterfuture.com/
Who: FICO and Operation HOPE credit history counselors
What: ‘Rating A Greater Future’ is a free community education and learning and money empowerment plan by FICO in partnership with regional and national nonprofits.
When: Tuesday, February 22, 2022 from 12:00-1:15 pm Pacific
FICO (NYSE: FICO) powers decisions that assist persons and organizations close to the earth prosper. Started in 1956 and based mostly in Silicon Valley, the organization is a pioneer in the use of predictive analytics and knowledge science to increase operational selections. FICO holds much more than 200 US and foreign patents on technologies that increase profitability, buyer fulfillment and development for companies in money expert services, telecommunications, health and fitness treatment, retail and quite a few other industries. Using FICO options, companies in more than 100 nations around the world do all the things from protecting 2.6 billion payment cards from fraud, to serving to people get credit score, to guaranteeing that hundreds of thousands of airplanes and rental cars and trucks are in the right area at the proper time. Discover a lot more at http://www.fico.com.
FAIRFIELD, CT – Very long-time resident Deborah Pratt Burns, recognized individual finance professional and sought-following enterprise and brand strategist, is launching her complimentary on-line “2022 Literacy to Legacy Mentors® Monetary Liberty Education” occasion collection this Wednesday, February 9, at 5:30pm, EST.
In an entertaining and insightful 50 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}-hour Q&A job interview format, Burns will element market leading lawful, tax, insurance, expense and money aid training specialists talking on a extensive range of particular and enterprise finance matters. She will also function CEOs of corporations that have attained anniversary milestones and that are fiscally and socially accountable in her quarterly “Entrepreneur Spotlight” series. An RSVP is essential to attend: https://literacytolegacymentors.web/impending-situations.
According to Nationwide Endowment for Monetary Schooling surveys:

Only 40{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of Individuals have significantly less than $300 in discounts

Only 30{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of Us residents have a long-time period economic strategy

63{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of Us residents experienced their personalized finances afflicted by the Covid-19 pandemic

“In a report large-inflation, expanding fascination rate setting, significant demand from customers is building among the younger pros to retirees for a finance instruction they never ever acquired in faculty. Based on my 30 a long time of working experience mentoring young grown ups, aspiring businesspeople, business owners, executives, households and retirees, people today are hungry to understand additional revolutionary and artistic techniques to receive, help save, spend, and invest their money, nevertheless are confused and don’t know how or wherever to start. I offer you monetary instruction and mentoring tools to empower them to achieve their plans, all in one particular place.”
In addition to her working experience as an efficient business and fiscal mentor, Burns leverages a few many years of expertise as a successful personal trader, builder of 6- and 7-determine corporations and brand names, and as an affluent advertising pro to two of the world’s most prestigious wealth management corporations, U.S. Believe in and Rockefeller & Co., Inc.
Her mission is to educate, inspire, and inspire people today to master their financial life and stay prosperously by way of private finance education and learning and mentoring.
