Chinese online language-training platform 51Talk continued to make money in the third quarter, as the company ramped up its marketing spend to enhance its brand awareness.
In the quarter through September, the U.S.-listed company reported net profit of 31.6 million yuan ($4.7 million), compared with a 32.8 million yuan net profit in the previous quarter and a 5.8 million yuan net loss a year ago, according to its latest earnings report.
During the period, 51Talk’s net revenue grew by 31.8% year-on-year to 538.5 million yuan, nearly 88% of which came from sales of its K-12 one-on-one courses, which generated 471.8 million yuan in revenue, up 46% year-on-year.
The healthy financial figures came as 51Talk’s quarterly marketing spending grew by 31.3% year-on-year, which the Beijing-based company’s chief financial officer Xu Min said helped “capture more market opportunities.” Product development expenses also increased by 14% year-on-year, the financial report said.
51Talk’s active user count reached 338,000 in the third quarter, compared with 258,200 in the same period last year.
The company said it expects its fourth-quarter net revenue to reach between 525 million yuan and 530 million yuan, representing a year-on-year increase of 32.2% to 33.4%.
Contact reporter Ding Yi (firstname.lastname@example.org)