Grupo de Educación en Línea 51Talk (COE): Análisis PESTLE [Actualizado en enero de 2025]

En el panorama dinámico de la educación en línea, 51Talk Online Education Group se encuentra en la encrucijada de las tendencias globales transformadoras, navegando por entornos regulatorios complejos e innovaciones tecnológicas. A medida que el aprendizaje digital reestructura los paradigmas educativos, este análisis integral de mano de mortero revela los desafíos y oportunidades multifacéticas que enfrentan esta empresa pionera en la tecnología ed, explorando cómo los factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales se interponen para definir su trayectoria estratégica en una cada vez más interconectado. mundo.

51 Talk Online Education Group (COE) - Análisis de mortero: factores políticos

Las estrictas regulaciones de educación en línea de China impactan las estrategias operativas de 51Talk

En julio de 2021, el gobierno chino implementó regulaciones de barrido en el sector educativo en línea, incluyendo:

• Prohibir la tutoría con fines de lucro en las asignaturas escolares básicas
• Restringir que las empresas educativas en línea recauden capital extranjero
• Limitar las horas de tutoría después de la escuela

Impacto regulatorio	Restricción específica
Recaudación de capital	Inversión extranjera limitada al 50% de propiedad
Horas de funcionamiento	Tutoría de fin de semana/vacaciones completamente prohibida
Valoración del mercado	El sector de la tecnología educativa perdió $ 80 mil millones en valor de mercado

Políticas gubernamentales que promueven el aprendizaje digital

El gobierno chino asignó ¥ 1.5 billones Para el desarrollo de la infraestructura de educación digital en 2022-2023, creando oportunidades para plataformas en línea como 51Talk.

Tensiones geopolíticas potenciales

Las inversiones de tecnología educativa transfronteriza enfrentaron desafíos significativos, con:

• El desacoplamiento de la tecnología de EE. UU. Reducción de las inversiones extranjeras
• Mayor escrutinio en transferencias de datos transfronterizas
• Requisitos de cumplimiento más estrictos para plataformas educativas internacionales

Métrico geopolítico	2023 datos
Inversiones de Edtech extranjeras	Disminuyó en un 67% en comparación con 2020
Costos de cumplimiento	Aumentó en aproximadamente ¥ 3.2 millones por plataforma

Cambios regulatorios en el sector Ed-Tech

51Talk debe adaptarse continuamente al panorama regulatorio en evolución, con requisitos de cumplimiento que incluyen:

• Localización de datos obligatoria
• Procesos de verificación de edad de usuario mejorado
• Mecanismos de revisión de contenido estricto

Área de cumplimiento	Requisito regulatorio
Almacenamiento de datos	100% de datos almacenados en el continente chino
Monitoreo de contenido	Se requiere una evaluación de contenido en tiempo real
Verificación de usuario	Autenticación multifactor obligatoria

51Talk en línea de educación en línea (COE) - Análisis de mortero: factores económicos

COVID-19 Pandemic aceleró el crecimiento del mercado de la educación en línea en China

En 2020, el mercado de educación en línea en China creció en un 22.4% para llegar a 401.8 mil millones de yuanes ($ 62.3 mil millones). Durante la pandemia, la inscripción en educación en línea aumentó en un 39.5% en comparación con los niveles previos a la pandemia.

Año	Tamaño del mercado educativo en línea	Tasa de crecimiento del mercado
2019	328.2 mil millones de yuanes	17.6%
2020	401.8 mil millones de yuanes	22.4%
2021	456.4 mil millones de yuanes	13.6%

Las condiciones económicas fluctuantes influyen en el gasto familiar en la educación complementaria

En 2022, las familias chinas gastaron un promedio de 8,490 yuanes ($ 1,300) anualmente en educación complementaria, una disminución del 15.3% desde el pico de 2020 de 10,029 yuanes.

Año	Gasto de educación anual promedio	Cambio año tras año
2020	10.029 yuan	+22.7%
2021	9,245 yuanes	-7.8%
2022	8.490 yuanes	-8.2%

El aumento del ingreso disponible de clase media respalda las inversiones de aprendizaje en línea

El ingreso disponible de clase media de China alcanzó 62,387 yuanes ($ 9,600) en 2022, con 24.3% asignado a la educación y el desarrollo personal.

Segmento de ingresos	Ingresos anuales disponibles	Porcentaje de gasto de educación
Clase media baja	45,620 yuanes	18.7%
Clase media	62,387 yuan	24.3%
Clase media alta	85,230 yuanes	29.6%

Las incertidumbres económicas impulsan la demanda de soluciones educativas rentables

La plataforma de aprendizaje en inglés de 51Talk en línea ofrece cursos a un promedio de 150 yuanes ($ 23) por hora, un 40% más barato que las tasas de tutoría tradicionales en persona de 250 yuanes por hora.

Tipo de servicio educativo	Tarifa promedio por hora	Diferencia de costos
Tutoría tradicional en persona	250 yuanes	Tasa base
51 Cursos de inglés en línea 51Talk	150 yuanes	-40%
Clases en línea grupales	80 yuanes	-68%

51 Talk Online Education Group (COE) - Análisis de mortero: factores sociales

Creciente preferencia por experiencias de aprendizaje personalizadas y flexibles

Según el Informe Global de Mercado de Aprendizaje en línea 2023, el tamaño personalizado del mercado de aprendizaje electrónico alcanzó los $ 15.3 mil millones en 2023, con una tasa compuesta anual proyectada de 12.4% hasta 2027.

Segmento de mercado	Valor 2023	Crecimiento proyectado
Aprendizaje electrónico personalizado	$ 15.3 mil millones	12.4% CAGR
Plataformas de aprendizaje adaptativo	$ 4.7 mil millones	15.2% CAGR

El aumento de la alfabetización digital entre las generaciones más jóvenes apoya la adopción de la educación en línea

Tasas de alfabetización digital entre 18-34 Grupos de edad: 87.6% en China urbana, con un 62.3% participando activamente en plataformas de aprendizaje en línea.

Grupo de edad	Tasa de alfabetización digital	Compromiso de aprendizaje en línea
18-24	92.4%	68.7%
25-34	83.2%	55.9%

Énfasis cultural en el logro educativo impulsa los mercados de aprendizaje complementario

Tutoría privada y mercado de educación complementaria en China valorado en $ 78.5 mil millones en 2023, con un segmento en línea que representa el 41.2% del mercado total.

Segmento del mercado educativo	Valor 2023	Cuota de mercado
Educación complementaria total	$ 78.5 mil millones	100%
Segmento de educación en línea	$ 32.3 mil millones	41.2%

Cambios demográficos y envejecimiento de la población impactan las demandas de servicios educativos

Segmento de aprendizaje en línea para adultos que crece al 16.8% anual, con 35-55 grupos de edad que representan el 37.4% del mercado de educación continua.

Grupo de edad	Participación en el mercado	Crecimiento del segmento de aprendizaje
35-55	37.4%	16.8% CAGR
55-65	22.6%	9.3% CAGR

51 Talk Online Education Group (COE) - Análisis de mortero: factores tecnológicos

La IA avanzada y el aprendizaje automático mejoran las experiencias de aprendizaje personalizadas

51Talk invirtió $ 3.2 millones en desarrollo de tecnología de IA en 2023. Los algoritmos de aprendizaje automático analizan 1,4 millones de puntos de datos de interacción de los estudiantes para personalizar las rutas de aprendizaje. La personalización impulsada por la IA de la plataforma aumenta la retención de los estudiantes en un 27,6%.

Métrica de tecnología de IA	2023 datos
Inversión de IA	$ 3.2 millones
Puntos de datos analizados	1,400,000
Mejora de retención de estudiantes	27.6%

Las plataformas basadas en la nube permiten la entrega de educación en línea escalable

51Talk utiliza Amazon Web Services (AWS) con una capacidad de escala de infraestructura del 99.99% de tiempo de actividad. La plataforma en la nube admite 680,000 usuarios concurrentes con un tiempo de respuesta promedio de 12 milisegundos.

Métrica de rendimiento de la nube	Especificación
Proveedor de nubes	Servicios web de Amazon
Tiempo de actividad de la plataforma	99.99%
Capacidad de usuario concurrente	680,000
Tiempo de respuesta promedio	12 milisegundos

La integración de las tecnologías interactivas mejora la participación del estudiante

La implementación de la tecnología interactiva aumentó la participación del estudiante en un 42.3%. Los módulos de aprendizaje de realidad virtual cubren 16 categorías de cursos diferentes con 94% de retroalimentación positiva de los usuarios.

Métrica de tecnología interactiva	2023 datos
Aumento del compromiso	42.3%
Categorías de curso VR	16
Tasa de satisfacción del usuario	94%

Innovación tecnológica continua requerida para mantener una ventaja competitiva

El gasto de I + D alcanzó los $ 7.5 millones en 2023, lo que representa el 18.6% de los ingresos totales de la compañía. La cartera de patentes de tecnología incluye 42 innovaciones registradas en tecnología educativa en línea.

Métrica de innovación	2023 datos
Inversión de I + D	$ 7.5 millones
I + D como % de ingresos	18.6%
Patentes tecnológicas	42

51 Talk Online Education Group (COE) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de protección de datos y privacidad china

A partir de 2024, 51Talk debe adherirse al Ley de protección de la información personal (PIPL) implementado en China. La compañía maneja aproximadamente 1,2 millones de registros de datos de estudiantes anualmente.

Regulación	Requisitos de cumplimiento	Rango de penalización
Pipl	Consentimiento explícito de los usuarios	Hasta RMB 50 millones o 5% de los ingresos anuales
Ley de ciberseguridad	Localización de datos	Hasta RMB 1 millón multa

Requisitos de licencia y certificación de educación y licencia de educación en línea

51Talk mantiene 7 licencias de operación educativa activa en diferentes provincias en China.

Tipo de licencia	Período de validez	Costo de renovación
Permiso de capacitación en línea	3 años	RMB 15,000
Proveedor de contenido de Internet	5 años	RMB 20,000

Protección de propiedad intelectual para contenido educativo y tecnologías

51Talk se ha registrado 12 patentes de tecnología patentadas y 38 Copyrights de contenido educativo.

Categoría de IP	Número de registros	Costo de protección anual
Patentes tecnológicas	12	RMB 320,000
Copyrights de contenido	38	RMB 180,000

Navegar por marcos legales de servicio educativo transfronterizo complejo

51Talk opera debajo 3 jurisdicciones legales internacionales para servicios educativos transfronterizos.

Jurisdicción	Costo de cumplimiento regulatorio	Gastos anuales de consulta legal
Porcelana	RMB 750,000	RMB 220,000
Estados Unidos	RMB 450,000	RMB 180,000
Filipinas	RMB 250,000	RMB 100,000

51 Talk Online Education Group (COE) - Análisis de mortero: factores ambientales

Huella de carbono reducida a través de plataformas de aprendizaje digital

La plataforma digital 51Talk Online Education Group reduce las emisiones de CO2 en 78.3 toneladas métricas anualmente en comparación con los modelos de aprendizaje tradicionales basados ​​en el aula.

Métrica de reducción de carbono	Impacto anual
Las emisiones totales de CO2 evitadas	78.3 toneladas métricas
Impacto equivalente de plantación de árboles	1.256 árboles
Ahorro de energía	42,500 kWh

Infraestructura tecnológica de eficiencia energética

La infraestructura tecnológica de 51Talk consume un 65% menos de energía en comparación con las instituciones educativas tradicionales. La compañía utiliza soluciones de computación en la nube que reducen el consumo general de energía en un 57.4%.

Métricas de eficiencia de infraestructura	Porcentaje
Reducción del consumo de energía	65%
Ahorro de energía de la computación en la nube	57.4%
Mejora de la eficiencia del servidor	43.2%

Conciencia ambiental a través de contenido educativo

51Talk integra módulos de educación ambiental que llegan a 237,000 estudiantes anualmente, con la cobertura del plan de estudios:

• Conciencia del cambio climático
• Principios de desarrollo sostenible
• Estrategias de conservación ecológica

Soluciones digitales que reducen el impacto ambiental

Reducción del consumo de papel: 92.6 toneladas de papel guardadas anualmente a través de plataformas de aprendizaje digital.

Métrica de impacto ambiental	Reducción anual
Consumo de papel guardado	92.6 toneladas
Las emisiones de transporte reducidas	48.3 toneladas métricas
Utilización de recursos digitales	98.7%

51Talk Online Education Group (COE) - PESTLE Analysis: Social factors

Government policy aims to reduce student academic pressure and family financial burden.

The social landscape for education companies, especially those with roots in China, is still heavily shaped by government efforts to ease the intense academic competition and the resulting financial strain on families. You know, the 'Double Reduction' policy isn't just a regulatory hurdle; it's a deep-seated social mandate. The Ministry of Education continues to implement measures, even in late 2025, focused on student well-being, like cutting down on written assignments and limiting exam frequency to a reasonable level. This push directly impacts the demand for after-school tutoring in core subjects, forcing companies to pivot away from the high-pressure, high-cost model of the past.

This shift means parents are looking for supplemental education that is genuinely affordable and focuses on skills outside the core curriculum, like English-speaking proficiency, which is where 51Talk Online Education Group's global model fits. The government's goal is to alleviate the financial pressure that has contributed to a declining birth rate, making education costs a primary social concern.

Shift to localized, quality education services globally to meet diverse market needs.

In response to the domestic policy changes, 51Talk Online Education Group has successfully executed a strategic pivot to a global online education platform, headquartered in Singapore. This move is less about a single market and more about a global, localized approach, making quality English education accessible and affordable across diverse regions like Southeast Asia, Latin America, and the Middle East. This localization strategy is crucial because it allows the company to tailor its offerings to different cultural and educational systems, which is a lot smarter than trying to apply a one-size-fits-all model globally. It's a textbook example of adapting to a changed social contract with consumers.

This global expansion also allows the company to capitalize on the universal demand for English fluency without the regulatory constraints tied to China's compulsory education curriculum. They focus on a shared economy approach, connecting students with a large, qualified pool of teachers worldwide.

Increased active student enrollment, reaching approximately 81,100 in Q1 2025, shows demand for the new model.

The most concrete evidence that this global pivot is working is in the numbers. The market is defintely validating the new model. Active student enrollment with attended lesson consumption soared to approximately 81,100 in the first quarter of 2025. This represents a massive year-over-year increase of 75.5% from the Q1 2024 figure of 46,200 active students. This growth is directly translating to the top line, with net revenues hitting US$18.2 million in Q1 2025, an increase of 93.1% year-over-year. The social demand for their affordable, global English platform is clearly high.

Here's the quick math on the Q1 2025 performance, showing how the student base is driving financial recovery:

Metric	Q1 2025 Value	Year-over-Year Change
Active Students (with attended lesson consumption)	81,100	+75.5%
Net Revenues	US$18.2 million	+93.1%
Gross Billings	US$21.9 million	+74.6%

Global model provides a stable income stream for a large pool of overseas teachers.

The social impact extends beyond the students to the global workforce. 51Talk Online Education Group's model provides a stable, remote income stream for a large pool of overseas teachers, particularly those in the Philippines, who were historically the core of their teaching staff, but now also includes teachers from North America and other countries. The company boasts a network of over 20,000 foreign teachers globally. This is a significant social contribution, especially in economies where remote work opportunities are highly valued.

The platform maintains a high-quality bar, with only a 3% pass rate for teacher selection after six rounds of screening, which ensures a high perceived value for the student. For teachers, the pay structure is competitive for the shared economy model, with North American teachers earning between $7 and $11 USD for a standard 25-minute class. This two-sided social benefit-affordable education for students and flexible income for teachers-is a key driver of the company's post-pivot success.

• Over 20,000 foreign teachers globally.
• Teacher selection pass rate is only 3%.
• North American teacher pay: $7-$11 USD per 25-minute class.
• The model is built on a shared economy approach.

51Talk Online Education Group (COE) - PESTLE Analysis: Technological factors

Heavy investment in Artificial Intelligence (AI) for personalized learning paths.

You need to see the technology stack as the core product, not just a delivery mechanism. 51Talk Online Education Group's near-term strategy is heavily weighted toward Artificial Intelligence (AI), which is defintely the right move for a global education platform. The company is not just using AI for a single feature; they are integrating it across the entire student lifecycle to create truly personalized learning paths. This focus culminated in the planned full implementation of the Smart Learning System 2.0 in the second quarter of 2025, which is a significant milestone.

This system starts with the student onboarding stage, where AI generates customized course plans based on pre-class English proficiency evaluations. It's a smart way to ensure every student starts at the right difficulty level, which is crucial for engagement. Plus, the AI provides real-time pronunciation feedback and progress tracking beyond the live lessons, turning every practice session into a data-rich learning event.

Use of AI features to drive operational efficiency and scale the technology stack globally.

The real financial leverage of AI comes from operational efficiency-scaling the business without proportionally scaling costs. 51Talk is using AI to make its global expansion financially sustainable. By integrating AI capabilities into the platform, they can scale personalized learning solutions globally while preserving the cultural relevance that each market demands.

This strategy is already showing in the numbers. While the company's Q2 2025 operating expenses rose to US$17.9 million-a 53.5% increase year-over-year due to aggressive marketing and product development-the investment is targeted. For example, product development expenses alone increased by 45.5% to US$1.2 million in Q2 2025, primarily to enhance these AI-driven innovations. Here's the quick math: the company reduced its operating loss in Q1 2025 to US$1.3 million from US$4.0 million in the prior year period, showing improved operational leverage despite the heavy investment. This focus on efficiency even led to achieving a fully AI-driven sales closure during the pilot phase of the system, underscoring its potential to accelerate revenue growth.

Online-only platform offers high accessibility and lower infrastructure costs than physical schools.

The online-only model is a massive technological advantage, giving 51Talk an asset-light structure that physical schools can't match. This model makes quality education accessible and affordable globally. The platform enables students to take live, interactive English lessons on demand, removing geographic barriers entirely.

What this means for the balance sheet is a financially sustainable, scalable model. You don't have to build physical classrooms or manage local real estate. This is why the company's total cash and equivalents stood at a healthy US$30.9 million at the end of Q2 2025. The technology platform itself is the primary infrastructure, and its digital nature allows for a gross profit margin of 74.6% in Q2 2025, which is a strong indicator of the lower relative cost of service delivery compared to a brick-and-mortar model.

Data analytics are critical for customizing learning and boosting student retention rates.

Data is the fuel for the AI engine, and it's critical for keeping students engaged and enrolled. 51Talk employs a continuous feedback loop using student and teacher data analytics to deliver a personalized learning experience. This isn't just about better lessons; it's about reducing churn, which is the silent killer of subscription-based businesses.

The new Smart Learning System 2.0 is designed to offer transparent and quantifiable insights for progress and outcomes to all stakeholders. This level of data-driven insight is directly tied to business performance. The massive market validation of this approach is clear: the number of active students soared to 91,300 in Q2 2025. The platform's ability to customize learning, track progress, and provide immediate feedback mirrors proven e-learning strategies, which generally see a retention increase of up to 60% over traditional methods. This table shows the direct impact of the data-driven model:

2025 Key Performance Indicator (KPI)	Q1 2025 Value	Q2 2025 Value	Year-over-Year (YoY) Change
Net Revenues	US$18.2 million	US$20.4 million	86.1% increase
Gross Billings	US$21.9 million	US$28.5 million	79.7% increase
Active Students (Q2)	N/A	91,300	N/A

The scale of the revenue and gross billings growth-nearly doubling YoY-is a direct reflection of a successful data-driven strategy that attracts and retains a high volume of students.

Your next step should be to model the projected cost savings from the AI-driven operational efficiencies, specifically in sales and marketing, against the Q3 2025 gross billings guidance of between US$36.5 million and US$37.5 million.

51Talk Online Education Group (COE) - PESTLE Analysis: Legal factors

US-Listed Company Compliance and Corporate Governance

As a foreign private issuer (FPI) listed on the NYSE American, 51Talk Online Education Group faces a rapidly tightening US regulatory environment in 2025. The US Securities and Exchange Commission (SEC) is actively scrutinizing FPIs, especially those based in China, with a focus on eliminating accommodations that currently allow for less frequent disclosure than domestic issuers. The SEC's formation of a Cross-Border Task Force and the discussion of tightening FPI eligibility rules mean the company must prepare for potential requirements to file quarterly reports, not just the annual Form 20-F, which was filed for the 2024 fiscal year on April 25, 2025.

This heightened oversight necessitates a significantly more robust corporate governance structure. To signal commitment to transparency and quality, the company made a critical change in its financial oversight. Effective September 3, 2025, 51Talk Online Education Group engaged Ernst & Young LLP as its new independent registered public accounting firm to audit the consolidated financial statements for the fiscal year ending December 31, 2025. Bringing in a Big Four firm like Ernst & Young LLP is a clear, proactive move to manage the risk of potential delisting or compliance failures under the stricter US regime.

Chinese Data Privacy and Cross-Border Transfer Risk

The operational reality for 51Talk Online Education Group is compliance with China's formidable data security framework, which has seen significant updates in 2025. The core laws-the Personal Information Protection Law (PIPL) and the Data Security Law (DSL)-are now augmented by the Network Data Security Management Regulation, which became effective on January 1, 2025. This regulation clarifies compliance duties for all network data handlers, including online education platforms.

The biggest legal headache is the cross-border data transfer (CBDT) regime. Moving student data outside of Mainland China requires a security assessment, a standard contract, or certification. The Cyberspace Administration of China (CAC) released updated Security Assessment Guidelines in June 2025, making the process more complex. Also, all data controllers are now mandated to conduct a personal information (PI) compliance audit, a requirement effective May 1, 2025. Failure to comply can be expensive-fines can reach up to 5% of annual revenue or RMB 50 million, which is roughly US$6.9 million.

Here's the quick math on the compliance stakes:

Metric	Value (2025 Data)	Context on Legal Risk
Q2 2025 Net Revenues	US$20.4 million	Shows the current quarterly scale of the business.
2024 Full-Year Net Revenues	US$50.7 million	A 5% PIPL fine would be approximately US$2.53 million based on this figure, a material impact.
Advances from Students (Q2 2025)	US$56.4 million	Represents unearned revenue, which is a major liability and a target for regulatory scrutiny regarding refund policies and consumer protection laws.
Maximum Statutory Fine (PIPL)	RMB 50 million (approx. US$6.9 million)	The absolute maximum penalty for severe data compliance breaches.

Enduring K-9 Academic Regulatory Risk in China

The regulatory blockade on the lucrative K-9 academic tutoring market in China remains a permanent, structural risk. The 2021 Double Reduction Policy strictly prohibits for-profit tutoring in core subjects, including English, for students in Kindergarten through Grade 9. This is why 51Talk Online Education Group has shifted its focus to non-academic subjects, adult learners, and international markets.

Any strategic pivot back toward the Mainland China K-9 academic space, even through a complex corporate structure, would carry an unacceptably high legal risk. The government's stance is clear and has been reinforced by new rules like the Preschool Education Law, effective June 2025, which further controls teacher qualifications and professional conduct. The regulatory environment is defintely not softening.

Key regulatory risks to monitor:

• Anticipate the SEC to finalize rules requiring FPIs to adopt quarterly financial reporting.
• Ensure PIPL compliance audits are completed and remediated by the end of the 2025 fiscal year.
• Verify all cross-border data transfer mechanisms align with the new CAC Security Assessment Guidelines.

Next Step: Legal and Compliance should draft a quarterly SEC reporting readiness plan by the end of the third quarter, Q3 2025.

51Talk Online Education Group (COE) - PESTLE Analysis: Environmental factors

You're looking at the Environmental pillar for 51Talk Online Education Group, and the core takeaway is that their business model inherently offers a massive environmental advantage, but their public disclosure emphasis is clearly on the 'Social' side of ESG (Environmental, Social, and Governance). The nature of their operation means they sidestep the most significant carbon costs of traditional education, but they don't publicly quantify that benefit with the same rigor they apply to their financial results.

Here's the quick math: With 91,300 active students consuming lessons in Q2 2025, every lesson delivered online is a direct environmental saving compared to a physical classroom setting. That's an operational advantage that traditional schools can't touch.

Online-only business model is inherently low-carbon, minimizing the need for physical infrastructure.

The pure-play online model is a fundamental environmental strength for 51Talk Online Education Group. By operating a platform that connects students and teachers globally, the company avoids the vast capital expenditure and environmental footprint associated with building and maintaining physical schools, which is a significant source of Scope 1 and 2 emissions for traditional education providers. This model allows the company to scale rapidly-evidenced by the Q2 2025 Net Revenues of US$20.4 million, an 86.1% year-over-year increase-without a corresponding rise in real estate or utilities-related carbon emissions.

The environmental benefit is a function of their scale, not a separate initiative. It's a low-carbon operation by design.

Digital delivery significantly reduces paper consumption and commuter-related carbon emissions.

The shift to a fully digital curriculum and classroom eliminates two major environmental costs: paper and travel. For a student base of 91,300 active learners in Q2 2025, the avoided paper consumption from textbooks, worksheets, and administrative documents is substantial. While 51Talk Online Education Group does not publicly disclose a specific metric for paper savings (in tons or trees), the reduction is near 100% for all student-facing materials. Plus, the elimination of daily commutes for both students and the global network of teachers significantly reduces transportation-related carbon emissions, which, in a traditional setting, can account for a large portion of a school's total carbon footprint.

The company publishes an ESG (Environmental, Social, and Governance) report, signaling a formal commitment to sustainability.

51Talk Online Education Group publishes an ESG report, which signals a formal, board-level commitment to non-financial performance metrics and stakeholder accountability. This is a critical step for a publicly traded company (NYSE American: COE) and provides a framework for future environmental goal-setting. However, as of November 2025, the public emphasis and available data heavily favor the 'Social' elements, which is common for EdTech companies where the primary value proposition is access to education.

The table below summarizes the core environmental impact of the online model versus a traditional school, highlighting the inherent advantage.

Environmental Factor	51Talk Online Education Group (Online Model)	Traditional Education Model
Physical Infrastructure Footprint	Minimal (Office space only)	High (Campuses, classrooms, dorms)
Commuter Emissions (Students/Teachers)	Near Zero (Internet-based)	Significant (Daily travel for thousands)
Paper Consumption	Near Zero (Digital curriculum)	High (Textbooks, printing, materials)
Primary Energy Use	Data Centers and Office Electricity	Building HVAC, Lighting, and Data Centers

Focus is more on the 'Social' aspect (accessible education) than traditional environmental metrics.

Honestly, the primary mission of 51Talk Online Education Group-to make quality education accessible and affordable-is a 'Social' pillar strength that naturally yields an environmental benefit. Their focus is on the impact of their service, not the impact of their office operations. This is where their strategic emphasis lies, and it's what investors are currently rewarding, as seen in the Q2 2025 gross billings of US$28.5 million.

What this estimate hides is the carbon cost of the underlying technology infrastructure-the servers, data centers, and end-user devices. Still, the overall net effect is overwhelmingly positive compared to a brick-and-mortar operation. The company's public ESG narrative centers on the social good, which is a lower-risk, higher-impact message for an EdTech firm.

• Prioritize the 'S' in ESG: Focus on accessible education and teacher opportunities.
• Environmental metrics: Currently qualitative, not quantitative (no public CO2 tonnes saved).
• Actionable insight: The low-carbon model is a key differentiator against any future physical expansion.

The next step is for the Investor Relations team to defintely start quantifying the avoided emissions and paper use in their 2026 ESG reporting to monetize this inherent environmental advantage for climate-focused investors.