On Wednesday, China Online Education Group - ADR (NYSE: COE) started its trading session with the price $19.91 and closed at price of $19.07 by scoring -1.75%. Day range of the stock was $19.07 - $20.55. COE stock traded with total volume of 3734 shares while the average trading capacity remained 25.22K shares. Earnings per share was $0.48. COE has total market capitalization of $413.63M. China Online Education Group (COE) reported its unaudited financial results for the second quarter ended June 30, 2020. Second Quarter 2020 Financial and Operating Highlights Net revenues were RMB493.5M (US$69.8M), a 40.0% increase from RMB352.6M for the second quarter of 2019. Gross margin was 70.9%, contrast with 69.5% for the second quarter of 2019. GAAP net income was RMB32.8M, representing GAAP net margin of 6.6%, contrast with GAAP net loss RMB33.2M and GAAP net margin of negative 9.4% for the second quarter of 2019. Non-GAAP net income was RMB39.6mmm, representing non-GAAP net margin of 8.0% contrast with non-GAAP net loss RMB27.6M and non-GAAP net margin of negative 7.8% for the second quarter of 2019. Operating cash inflow was RMB172.1M (US$24.4M), contrast with RMB99.2M operating cash inflow for the second quarter of 2019. Cash, cash equivalents, time deposits and short-term investments balance reached RMB1,426.7M (US$201.9M) as of June 30, 2020. Gross billings were RMB676.4M (US$95.7M), a 35.7% increase from RMB498.5M for the second quarter of 2019, the highest year-over-year growth rate since the first quarter of 2018. "We extended our outstanding performance by delivering another quarter of robust across-the-board results in the second quarter," stated Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk. "These results were fueled by the continued optimization of our K-12 one-on-one mass market strategy in non-tier-one cities as well as the overall growing market awareness and acceptance of online education brought about by the effects of the COVID-19 pandemic. Financial highlights of the second quarter include our net revenues increasing 40.0% year-over-year to reach RMB493.5M, a figure 5.0% above the high end of our guidance. Net revenues from our core K-12 one-on-one mass market offerings increased 61.0% year-over-year to reach RMB417.9M. Furthermore, our gross billings reached RMB676.4M, growing 35.7% year-over-year and recording the highest growth rate since the first quarter of 2018. Our K-12 one-on-one mass market gross billings grew 46.4% year-over-year to RMB612.5M, accounting for 90.6% of our total gross billings. Second Quarter 2020 Financial Results Net Revenues Net revenues for the second quarter of 2020 were RMB493.5M (US$69.8M), a 40.0% increase from RMB352.6M for the same quarter last year. The increase was primarily attributed to the increases in the number of active students and the average revenue per active student. The number of active students in the second quarter of 2020 was 298,200, a 27.8% increase from 233,400 for the same quarter last year. The average revenue per active student in the second quarter of 2020 increased by 9.5% year-over-year. Net revenues from one-on-one offerings for the second quarter of 2020 were RMB464.9M (US$65.8M), a 45.5% increase from RMB319.5M for the same quarter last year. Net revenues from small class offerings for the second quarter of 2020 were RMB28.5M (US$4.0M), a 13.8% decrease from RMB33.1M for the same quarter last year. Cost of Revenues Cost of revenues for the second quarter of 2020 was RMB143.6M (US$20.3M), a 33.5% increase from RMB107.6M for the same quarter last year. The increase was primarily driven by a raise in total service fees paid to teachers, mainly Because of a raised number of paid lessons. As part of Chinese government's effort to ease the burden of businesses affected by the coronavirus (COVID-19) outbreak, the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration temporarily reduced and exempted employer obligation on social security contributions from February 2020. The impact of coronavirus policies on cost of revenues was RMB0.4M in the second quarter. Not Including the impact, total cost of revenues for the second quarter would have been RMB144.0M (US$20.4M), representing a 33.8% year-over-year increase. Cost of revenues of one-on-one offerings for the second quarter of 2020 was RMB131.8M (US$18.7M), a 42.5% increase from RMB92.5M for the same quarter last year. Cost of revenues of small class offering for the second quarter of 2020 was RMB11.7M (US$1.7M), a 22.1% decrease from RMB15.1M for the same quarter last year. Its earnings per share (EPS) expected to touch remained 75.30% for this year while earning per share for the next year is expected to reach at 77.11. COE has a gross margin of 71.20% and an operating margin of 3.30% while its profit margin remained 4.20% for the last 12 months.