Introduction
We last wrote about China Online Education (COE) early last month, arguing that a neutral stance was warranted given intense competition and lackluster profitability. Since then, the company's shares have dropped by 10% despite solid Q3 earnings results that show a marked improvement in the company's performance and financial position.
We are revising our stance on China Online Education partly due to strong results in Q3, a dramatically improved financial position, and improving bottom-line trends.
Financial overview (in millions USD)
China Online Education trades on the NYSE as an ADS (American Depository