Good day, and welcome to Q3 Investor Summit virtual. We appreciate your participation in today's virtual event. Up next, we are pleased to introduce the 51Talk Online Education Group. If you would like to ask a question during the webcast, you may drop them into the chat box button on the left side of your screen. Please type your question into the box and click "Send" to submit it. At this time, it is my pleasure to hand over the session to David Chung, Vice President of Investor Relations at 51Talk Online Education Group, who will lead the presentation. Sir, the floor is yours.
Okay. Hello. Thank you. My name is David Chung, and I'm the Vice President of Investor Relations at 51Talk Online Education Group. Thank you for joining us today. In the next 5 to 10 minutes, I'll be walking you through how 51Talk, as a NYSE American-listed company with ticker code COE, is combining localization, technology, and people in building an online education business globally. After that, we'll open the floor for questions. Let's start with the big picture. 51Talk Online Education Group is an AI-driven edtech platform serving young learners around the world. We are not just offering English lessons; we're providing an integrated, adaptive learning experience that combines proprietary curriculum, high-quality tutors, and advanced technology. Our goal is to make high-impact education accessible and relevant in every market we enter. What makes our platform different is our integrated approach.
We've built our solution on four pillars: a proprietary curriculum with over 500 hours of refined content, a rigorous AI-enhanced tutor recruitment process, $100 million invested in our proprietary technology, and a free 360-degree parent and student support model. In the next couple of slides, you'll see how each pillar reinforces the others to deliver results. First, our curriculum is fully animated, interactive, and aligned with CEFR global standards. Second, our tutors are selected through a stringent process, with only the best making it through. Every tutor benefits from AI-powered tools and ongoing training, ensuring quality and consistency at scale. Third, our technology platform is robust and scalable. We have low-latency video, gamified classrooms, and features like virtual makeup for tutors. Finally, free 360-degree support ensures every student has a personalized learning path and ongoing guidance from a dedicated learning partner, maximizing both engagement and satisfaction.
Global presence means local adaptation. In every market, our curriculum is customized to fit local school requirements and cultural expectations. Local teams provide direct support and guidance, and our marketing is tailored to reach parents and students where they are. This proven approach has helped us build trust and drive engagement in diverse regions from East Asia to the Middle East and beyond. AI powers every part of our operations. Our tech stack includes LLMs, proprietary infrastructure, and advanced automation, supporting everything from telemarketing to personalized student support. We've developed tools for tutors, screening, lesson personalization, and adaptive feedback, all designed to improve efficiency and outcomes. Let's look at some AI application highlights. In tutor recruitment, AI evaluates pronunciation and accent. For every new hire, AI assists in screening, interviewing, and training, reducing costs and speeding up onboarding while maintaining high standards. AI also enables truly personalized learning.
Every student receives an individualized model and learning path with real-time feedback through features like AI coaches, lesson memos, and situational practice. This personalization drives better engagement, faster progress, and higher satisfaction. Our sales process is also optimized by AI, which has already improved our conversion rates and reduced idle times during the sales process. AI supports tutors during lessons, helping them deliver high-quality instruction. We recently saw our first paying student complete an AI-powered trial class. Turning to our numbers, following our China divestment, we're now fully focused on international markets. Audited in the U.S. and headquartered in Singapore, revenues are growing, margins consistently exceed 70%, and our cash position is strong. We're expanding with discipline, focusing on profitable and sustainable growth, not just headline numbers. To close, 51Talk Online Education Group is uniquely positioned at the intersection of global reach, local expertise, and cutting-edge applications of AI.
We're committed to unlocking long-term value in the edtech sector, one student, one market at a time. Thank you for your time. We'll open up for questions. I see some questions in the chat box. We'll start with those questions first. The first question is, what are the key markets that we operate in and the plans to open new markets in the next few years? Expanding to new markets is definitely a key part of our growth. Right now, we are active in Southeast Asia, including Thailand and Malaysia, and we're also testing new markets like Vietnam and Indonesia. We're also in the Arabic markets, in the Middle East, and we're also looking at Spanish-speaking regions such as Mexico as opportunities in the future.
In selecting markets, we generally look for a relatively large middle-class children population base with low cost of acquisitions to justify the unit economics and operating cash flow. The focus is to make sure our marketing and services fit each location. That's where the localization comes in. We build local offices with experienced leaders and train new staff with our proven methods. We also adapt our product to match local languages, customs, and styles. All these take time, but once we're set in the market, it's hard for local competitors to match our mix of central strength and underground teams. The second question we have in the chat box is, any products or services that are coming in next year, and how do we distinguish ourselves against competitors?
When we look at new products or services, we obviously look at what our current students' needs are, and we make sure that the products and services that we develop fit with our current core product, which is the one-on-one K-12 English online class. In different markets, it could mean different subjects or exam preparation or different types of product services. What we find is, compared to before in China, we're now operating in many different markets, and each market has their own unique needs. We do offer very market-specific programs or services in the markets that we operate. For every initiative that we do, we do check the market size, whether we have the ability and capability to do the product and service well, the competition around that product and service, and why 51Talk Online Education Group ourselves is the best to take on that product and service.
Education is actually a very local business. Every market has a different school system. Every market is different in terms of where and when students study after school, different student learning habits and behaviors as well. What we're good at is really sending our experienced people to new markets and building up those local teams that can adapt our products and marketing to fit the needs of the local students and parents. We haven't seen anyone in the market doing this better than us. One more question is, how does AI affect our business? AI is definitely going to change the online education industry, and it will change a lot of the things that we do right now, but exactly when and how is still anyone's guess. It will happen faster than a lot of us expect.
Right now, there's a lot of really good and bright people working around the world to see how to apply AI in education. Some of them, they work for us. In order for us to make sure we don't fall behind, we're already using AI to improve everything we do in our existing product. For example, as discussed in the presentation earlier, we already have partial AI tutors. We use AI sales agents. We create AI study reports. We use AI to customize courses for each student. If you imagine what's possible and how AI can be applied to our niche, which is the one-to-one, K-12 English online classes learning model, we are probably doing a lot of it right now. As a second stream, we have also made soft launches of products that don't use human teachers at all.
This helps us to continue to learn and improve, and maybe in the longer term, even replace some of the existing products and services that we have right now. Ultimately, we believe who will decide the best way going forward are the students. The key here is really, it's not easy to keep a five-year-old child motivated and engaged to learn a new language in a 25-minute time frame. It is not just about knowledge transfer. It is about the interaction, keeping the child engaged, and making them really open their mouth and interact and speak in a new language. This is what parents expect from us, and it's also one of our key KPIs or performance objectives for our business and operational team. We are very experienced, and we are good at that, and we believe that by applying AI, it will continue to make us the product better.
Okay, I see no more questions for now. Thank you for having us on the call.
This is the end of David Chung's session. Thank you to everyone joining here today.
Thank you.
That concludes 51Talk Online Education Group's presentation. You may now disconnect. For details on upcoming presentations, please refer to the conference agenda. Thank you for your participation, and we look forward to welcoming you to the next session.