Luilishuo (流利说) announces its unaudited financial report for the first quarter of 2019 which lasted till March 31. The company said that the fiscal quarter revenue was CNY 253 million, an increase of 161.7%; net loss was CNY 67.3 million which reduced by 26.6% as compared to the same period last year (CNY 92.4 million).
• Revenue was CNY 253 million, an increase of 161.7% over the same period of last year;
• Net loss was CNY 67.3 million, a decrease of CNY 25.1 million as compared to the same period last year (CNY 92.4 million);
• Gross profit was CNY 194 million, an increase of 164.6% over CNY 73.2 million in the first quarter of 2018;
• 76% gross profit margin, which was 75.6% in the same period last year;
• The total number of registered users as of March 31, 2019, was 123.4 million, and the total number of registered users as of December 31, 2018, was 110.3 million;
• As of March 31, 2019, the company's current deferred income was CNY 594 million;
• Sales and marketing expenses were CNY 194 million, an increase of 52.5% from CNY 127 million in the same period last year.
Liulishuo’s founder, chairman and CEO Wang WEI (王翌) said: "Compared with the same period last year, the total number of paying users in the first quarter of 2019 has doubled. This outstanding performance reflects the growing popularity of our products and our continued leadership in the Chinese artificial intelligence English learning market. ”
He further added, “In the first quarter, we made further progress in user diversity through the new product 'Kids Liulishuo', a mobile-based voice online course designed for 3-8-year-old users and received very positive feedback. A considerable amount of intelligent user data combined with our advanced AI algorithm allows us to capture and provide personalized feedback on the pronunciation development of young users."
YU Bin chief financial officer of Liulishuo said, "Our operational efficiency has improved this quarter. In the first quarter, the company's sales and marketing expenses as a percentage of revenue decreased significantly from 131.2% in the same period last year to 76.4%."
“Our robust top-line growth for the first quarter was primarily fueled by healthy growth -- user growth through broadened brand recognition and engaging product experience. We also saw improvements in our operating efficiency with sales in the marketing expenses as a percentage of net revenues falling significantly for the first quarter of 2019 from a year ago period” he added.
The company stated that the net income in the second quarter of 2019 is expected to be between CNY 280 million and CNY 300 million, an increase of 106.6% to 121.4% compared with CNY135.5 million in the second quarter of 2018.