Losing more than revenues, 51 Talk Why listing in the US? -IPO, online education-IT information

Unit frequently announce privatization after the handover, few Chinese Internet companies choose United States capital markets as their market of choice. Eastern time on May 12 (May 13, Beijing time), only less than 5 years of online education platform 51Talk formal IPO Prospectus submitted to the SEC, if the IPO is successful, 51Talk will become the first Chinese Internet company listed in the United States this year.

But, capital markets and situations change 51Talk success in the United States market, remains to be seen how to tell stories in the capital markets.

Data loss exceeds the revenue

According to the prospectus can be seen from 2013-2015, 51Talk cash income for three consecutive years (Gross Billings) 36.1 million and 117 million, 353 million Yuan respectively, net revenues of 21.67 million respectively, 52.21 million and 155 million Yuan. Gross margin up to 57.1%, 57.5%, 61.4%. In 2016, the latest figures for Q1, cash income of 155 million 72.19 million Yuan RMB, net revenue, gross profit margin, 63.6%.

And as you can see, rapid growth in revenue at the same time, losses at 51Talk also very obvious in the first quarter ended March 31 2016, 51Talk net revenues of 72 million Yuan (about US $ 11.2 million), up from last year's 24.4 million Yuan ; The net loss attributable to common shareholders of 149 million Yuan (about US $ 23.1 million), compared with last year, the net loss for the period attributable to ordinary shareholders of 65.1 million Yuan; loss per share attributable to common stockholders were 2.06 trillion yuan (about US $ 0.32), compared to last year same period attributable to ordinary shareholders of 0.90 yuan per share.

Through 2015, 51Talk of net revenue for Yuan 155 million Yuan (about collection 23.9 million dollars), above 2014 of Yuan 52.2 million Yuan; belonging Yu General unit shareholders of net losses for Yuan 403 million Yuan (about collection 62.2 million dollars), compared with 2014 belonging Yu General unit shareholders of net losses for Yuan 130 million Yuan; belonging Yu General unit shareholders of each unit losses for Yuan 5.57 Yuan (about collection 0.86 dollars), compared with 2014 belonging Yu General unit shareholders of each unit losses for Yuan 1.71 Yuan.

From an earnings perspective, to support the 51Talk access to capital and market acceptance is likely to be "online education platforms," "pure foreign teachers" the main concepts, such as, and from revenue growth, 2013-2015, 51Talk per cent growth of 141% and 196.3%. However, compared to old traditional domestic education company New Oriental's total revenues of $ 346.9 million, is still a big gap.

In addition, the 2013-2015 three years, 51Talk gross, and 57.1%, and 61.4%. According to the latest figures, 2016 Q1 gross margin of 63.6% than 2015 Q1 59.7%, by 3.9%. In terms of cash flow, due to the fast-growing, 51Talk currently more stable cash flow situation, from 2015 Q1 through 2016, Q1, 5 consecutive quarters, cash flow significantly, latest figures show, 2016 51Talk cash income of 154.8 million yuan in the first quarter.

Why the huge losses?

51Talk high-speed growth at the same time, losses are also very obvious, partly from investment in sales and marketing, product research and development. According to statistics, the company 3 years sales markets respectively, 17.124 million 81.269 million, 297 million Yuan, this part of the expenditures brought expansion of the overall loss.

According to bulletin 51Talk explains, "our selling expenses include telemarketing sales and free trial course-related costs and marketing expenses including online and mobile marketing and promotion costs. Our sales and marketing staff numbers rose from 138 people on December 31, 2013 to December 31, 2014, 736, and further up by December 31, 2015 for 1837, due later on March 31, 2016 for 1936. ”

Meanwhile, 51Talk view, personnel costs, including high quality teachers need a good composition of the pay system is a business expense. For future profits expected, 51Talk said the losses will continue in the future, there is no timetable for determining profit.

The other hand, the online education industry General advances, that user is to pay tuition in advance, which is reflected in the cash income on this data, but because of United States GAAP net earnings confirmed that compared to the company's cash earnings have a time delay, overall losses also result in data dimensions.

How the ownership structure?

51Talk was established in 2011, headquartered in Beijing, with branch offices in Shanghai, Wuhan, and the Philippines, or office location. 51Talk now has paid more than 100,000 people, teachers more than 6000 people worldwide, and employs more than 2000 people worldwide. Year more than 7.3 million, has over 82.3% users with mobile phone APP for some class. 51Talk have access to actually Fund, DCM, Shun capital, Sequoia Capital's investment.

Documents show directors and executives, the company founder and CEO Huang Jiajia held about 40.89 million shares, share is 16.8%; Shu Ting held about 17.52 million shares, shares for 7.2%. Company directors and executives held about 58.4 million shares in total, stake to 24%.

In the company's main shareholder, DCM holding about 58.7 million shares, ownership is 24.1%; International Holdings Limited holds about 58.4 million shares, stake 24%; Sequoia holds about 47.03 million shares, stake 19.3%; Shun for about 39.33 million shares from holders, stake 15.3%; approximately 25.38 million shares, shares for 10.4%. Prospectus showed that 51Talk listed to raise funds up to 100 million dollars, the underwriters as MORGAN STANLEY and CREDIT SUISSE.

Why choose us listings?

51Talk said that this year officially lands in United States capital markets, but has not finalized the details of an Exchange; was chosen in the United States market, but also taking into account the influence of factors such as policy adjustments, domestic capital markets is not encouraging.

According to the Frost & Sullivan report forecast that from 2015 to 2020, the cash generated by the online education market in China will be high speed 37.9% annually to reach 655 billion yuan, and the number of users will grow to 28.1% by 2020 will be as high as 383 million, while cash income in online English language education market in China will grow to 54.5% at 160.9 billion yuan, And users of online English education market will increase rate of 31.2% per year, more than 140 million people. Analysis of one of the major reasons is that Chinese recognition of the importance of learning English has steadily increased, while online English language education in schools is often less than satisfactory.

If the IPO market is prone to successfully the Matthew effect, accelerating the construction of platforms, and in the past only, Hui people listed are not favoured by outsiders such as credit, 51Talk the future development will be very critical.

亏损超过营收，51 Talk为何赴美上市？ - IPO,在线教育 - IT资讯

就在中概股频频宣布私有化回归之后，鲜有中国互联网公司会选择美国资本市场作为自己上市的首选。美东时间5月12日（北京时间5月13日），成立仅不到5年的在线教育平台51Talk正式向SEC递交IPO招股书，如果IPO成功，51Talk将会成为今年赴美上市的第一家中国互联网公司。

但，资本市场风云变化，51Talk能否成功赴美上市，还要看如何在资本市场上讲故事。

数据：亏损超过了营收

根据招股书可以看到自2013至2015年，51Talk连续三年的现金收入（Gross Billings）分别为3610万、1.17亿、3.53亿人民币，净营收分别为2167万、5221万、1.55亿人民币。毛利率达57.1%、57.5%、61.4%。2016年Q1的最新数字为，现金收入1.55亿人民币、净营收7219万人民币、毛利率63.6%。

同时可以看到，在营收快速增长的同时，目前51Talk的亏损也极为明显，在截至3月31日的2016年第一季度，51Talk的净营收为人民币7200万元（约合1120万美元），高于去年同期的人民币2440万元；归属于普通股股东的净亏损为人民币1.49亿元（约合2310万美元），相比之下去年同期归属于普通股股东的净亏损为人民币6510万元；归属于普通股股东的每股亏损为人民币2.06元（约合0.32美元），相比之下去年同期归属于普通股股东的每股亏损为人民币0.90元。

在整个2015年，51Talk的净营收为人民币1.55亿元（约合2390万美元），高于2014年的人民币5220万元；归属于普通股股东的净亏损为人民币4.03亿元（约合6220万美元），相比之下2014年归属于普通股股东的净亏损为人民币1.30亿元；归属于普通股股东的每股亏损为人民币5.57元（约合0.86美元），相比之下2014年归属于普通股股东的每股亏损为人民币1.71元。

从财报数据上看，能够支撑51Talk获得资本和市场认可的很可能是“在线教育平台”、“纯外教”等主打概念，同时从营收增长来看，2013-2015年，51Talk同比增速为141%、196.3%。不过，相比国内老牌传统教育公司新东方的3.469亿美元总营收，仍有较大差距。

此外，2013-2015年三年时间，51Talk毛利率为57.1%、57.5%、61.4%。另根据最新数据显示，2016年Q1毛利率为63.6%，相比2015年Q1的59.7%，提升了3.9%。在现金流方面，由于业务快速增长，51Talk目前现金流状况比较稳定，从2015年Q1到2016年Q1，连续5个季度，现金流变化明显，最新数据显示，2016年一季度51Talk现金收入1.548亿元人民币。

为何巨亏？

目前51Talk高速增长的同时，亏损同样非常明显，其中部分原因来自销售和市场投入、产品研发。根据数据显示，该公司3年时间销售市场投入分别为，1712.4万、8126.9万、2.97亿元人民币，这部分的支出带来了整体亏损的扩大。

根据公告51Talk解释到，“我们的销售费用包括电话营销销售和免费试听课程相关的费用和营销费用包括在线和移动营销和品牌推广费用。我们的销售和营销人员的数量从2013年12月31日的138人上升到2014年12月31日的736人，并进一步上升截止2015年12月31日为1837人，截止最新2016年3月31日为并1936。”

同时，51Talk认为，人员成本，包括优质师资资源需要不错的薪酬体系等都是业务支出的构成。对于未来的盈利期待，51Talk表示，未来将会继续保持亏损，目前无法确定盈利的时间表。

另一方面，在线教育行业通用为预付款，即用户都是预先缴纳学费，因此这部分体现在现金收入这个数据上，但因美国通用会计准则净收入的确认相较于公司的现金收入有一段时间的延迟，也导致数据层面呈现整体亏损。

股权结构如何？

51Talk成立于2011年，总部位于北京，在上海、武汉和菲律宾设有分公司或办公地点。51Talk目前拥有付费用户超过10万人，全球教师超过6000人，全球员工2000多人。年课程量超过730万节，有超过82.3%的用户用手机APP进行约课上课。51Talk曾获得真格基金、DCM、顺为资本、红杉资本的投资。

文件显示，在董事和高管中，公司创始人兼CEO黄佳佳持有约4089万股股票，持股比例为16.8%；舒婷持有约1752万股股票，持股比例为7.2%。公司董事和高管总共持有约5840万股股票，持股比例为24.0%。

公司主要股东中，DCM持有约5870万股股票，持股比例为24.1%；大盛国际控股有限公司持有约5840万股股票，持股比例为24.0%；红杉持有约4703万股股票，持股比例为19.3%；顺为持有约3933万股股票，持股比例为15.3%；多玩持有约2538万股股票，持股比例为10.4%。招股书显示，51Talk上市将最多募集资金1亿美金，承销商为MORGAN STANLEY与CREDIT SUISSE。

为何选择赴美上市？

51Talk称，计划今年正式登陆美国资本市场，但目前并未敲定具体的交易所；之所以选择在美国市场，也是考虑到受政策等因素调整的影响，国内资本市场并不乐观。

根据Frost & Sullivan报告预计，从2015年至2020年，中国在线教育市场的现金收入将以每年37.9%的速度高速递增，达到6550亿人民币，而用户数量将以28.1%的速度增长，到2020年将高达3.83亿人；同时，中国在线英语教育市场的现金收入将以54.5%的速度增长，达到1609亿人民币，而在线英语教育市场用户也将以每年31.2%的速度递增，超过1.4亿人。报告分析其中重要原因在于，中国人对学习英语重要性的认可度还在不断提高，同时线下学校英语教育效果往往不尽如人意。

如果IPO成功市场很容易出现马太效应，加速其平台化的建设，并且参考中概股过去唯品会、惠人贷等并不被外界看好的上市，51Talk未来的自身发展将非常关键。