China Online Education Group (NYSE:COE) Q3 2019 Earnings Conference Call - Preliminary Transcript
Dec 09, 2019 • 08:00 am ET
Hello, ladies and gentlemen, thank you for standing by for China Online Education Group's Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answers.
Session. Today's conference call is being recorded. I will now turn the call over to your host, Ms Judy Piao, Investor Relations for the company. Please go ahead. Judy.
Thank you. Hello, everyone, and welcome to the third quarter earnings conference call of China Online Education Group also know as 51Talk, the Company's results were issued via newswire services earlier today and are posted online you can download the earnings press release and sign up for the Company's distribution list by visiting the IR section of its website at ir.51Talk.com.
Mr Jack Huang, our Chief as Executive Officer and Mr Min Xu, our CFO, will begin with some prepared remarks. Following the prepared remarks, Mr Liming Zhang, our Chief Operating Officer, will also join the call for our Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities and Litigation Reform Act of 1995.
Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the Company's Form 20-F and other public filings as filed with the US Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under the applicable law.
Please also note that 51Talk's earnings press release and this conference call include discussions of (ph) unaudited GAAP financial information as well as audited non-GAAP financial measure. 51Talk's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.
I will now turn the call over to our CEO Jack Huang. Please go ahead.
Hello, everyone. Thank you very much for joining our conference call. This third quarter is seasonally strong quarter for us and our results for Q3 are reflected consistent execution of our focused strategy, our net revenues and gross billings results exceeded the high end of our guidance ranges. By 2.3%
And the 5.7% respectively.
We also recorded robust active student growth in the quarter, up 23% year-over-year. And (inaudible) our primary growth driver remains our K-12 mass-market one-on-one offering in non-tier-one cities. K-12 mass-market one-on-one gross billings grew 52% year-over-year to reach RMB504.6 million and represented 92.2% of our total gross billings.
The improvement in our fundamentals reflected our consistent strategy of focusing on K-12 mass-market in non-tier-one cities. In the third quarter, we launched our mobile-friendly interactive curriculum for levels from 0 to 2 of our flagship course, Classic English Junior. The enhanced curriculum improves learning effectiveness and leads to a better learning outcomes through several new features including interactive games, virtual teaching aids, improved facial emotional recognition and engaging role-play