iHuman Inc. Announces First Quarter 2024 Unaudited Financial Results
First Quarter 2024 Highlights
- Revenues were
RMB235.0 million (US$32.5 million ), compared withRMB265.2 million in the same period last year. - Gross profit was
RMB168.1 million (US$23.3 million ), compared withRMB185.6 million in the same period last year. - Operating income was
RMB17.5 million (US$2.4 million ), compared withRMB56.7 million in the same period last year. - Net income was
RMB22.3 million (US$3.1 million ), compared withRMB53.6 million in the same period last year. - Average total MAUs[1] reached a record-high of 26.38 million, a year-over-year increase of 25.1%.
[1] "Average total MAUs" refers to the monthly average of the sum of the MAUs of each of the Company's apps during a specific period, which is counted based on the number of unique mobile devices through which such app is accessed at least once in a given month, and duplicate access to different apps is not eliminated from the total MAUs calculation. |
Dr. Peng Dai, Director and Chief Executive Officer of iHuman, commented, "We started 2024 on a positive note, as our team precisely and efficiently executed our product roadmap to ensure our continued leadership in capturing user engagement. Central to our industry-leading product offerings are our high-quality content and advanced technological capabilities. In the first quarter, we continued to drive meaningful enhancements to our portfolio by leveraging these two strengths. Specifically, we intensified efforts to enhance our AI technologies and deepened their integration into our products to provide more dynamic and personalized experiences for our users. In June, we launched a brand-new product, iHuman Smart Coder, a full-year course developed and designed by iHuman's stellar team that was led by graduates from
We have also enriched our existing products with more AI-enabled experiences. Within iHuman Magic Thinking, we introduced "Challenge", a new AI-powered feature that focuses on number literacy. Leveraging advanced AI algorithms, the new feature dynamically adapts the difficulty of questions to users' level, ensuring that young learners remain appropriately challenged. This facilitates effective practice while preventing kids from becoming excessively frustrated, thus maintaining their engagement and enthusiasm.
Beyond our domestic efforts, expanding our presence in international markets continues to be our strategic priority. Adhering to our product-driven strategy, we continued to drive market penetration by strengthening our product pipeline to meet the unique needs of international users. We recently expanded the Aha World brand with Aha Makeover, a customizable, DIY-fashion design app that offers young children a dynamic platform to unlock their creativity through personalized virtual styling experiences. Kids can choose from a diverse array of avatars, personalize their hairstyles, decorate their avatar with different accessories, and experiment with an extensive wardrobe for various occasions. Our cutting-edge AR technology then seamlessly integrates virtual and physical elements, offering kids an interactive experience where their creations come to life.
Furthermore, we are making more selected domestic products which we believe have cross-border appeal and audiences available beyond the Chinese mainland market. For example, we have recently rolled out bekids Library, the adapted version of iHuman Readers, a comprehensive leveled English reading app that we collaborate on with
Moving forward, our focus remains on enhancing our core competencies and creating high-quality and popular products to promote the holistic development of young children."
Ms.
First Quarter 2024 Unaudited Financial Results
Revenues
Revenues were
Average total MAUs for the quarter reached a record-high of 26.38 million, an increase of 25.1% year-over-year from 21.09 million in the same period last year.
Cost of Revenues
Cost of revenues was
Gross Profit and Gross Margin
Gross profit was
Operating Expenses
Total operating expenses were
Research and development expenses were
Sales and marketing expenses were
General and administrative expenses were
Operating Income
Operating income was
Net Income
Net income was
Basic and diluted net income per ADS were
Deferred R evenue and Customer Advances
Deferred revenue and customer advances were
Cash, Cash Equivalents and Time Deposits
Cash, cash equivalents and time deposits were
Exchange Rate Information
The
Non-GAAP Financial Measures
iHuman considers and uses non-GAAP financial measures, such as adjusted operating income, adjusted net income and adjusted diluted net income per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in
Non-GAAP financial measures are not defined under
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about iHuman's beliefs and expectations, are forward-looking statements. Among other things, the description of the management's quotations in this announcement contains forward-looking statements. iHuman may also make written or oral forward-looking statements in its periodic reports to the
About
For more information about iHuman, please visit https://ir.ihuman.com/.
For investor and media enquiries, please contact:
Mr. Justin Zhang
Investor Relations Director
Phone: +86 10 5780-6606
E-mail: ir@ihuman.com
Christensen
In
Ms.
Phone: +86-10-5900-1548
E-mail: alice.li@christensencomms.com
In the US
Ms.
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com
iHuman Inc. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Amounts in thousands of Renminbi ("RMB") and except for number of shares, ADSs , per share and per ADS data) |
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|
|
|
|
|
|
|
|
|
2023 |
|
2024 |
|
2024 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
1,213,767 |
|
890,805 |
|
123,375 |
Time deposits |
|
- |
|
240,521 |
|
33,312 |
Accounts receivable, net |
|
60,832 |
|
68,068 |
|
9,427 |
Inventories, net |
|
16,518 |
|
17,247 |
|
2,389 |
Amounts due from related parties |
|
1,810 |
|
2,850 |
|
395 |
Prepayments and other current assets |
|
89,511 |
|
93,567 |
|
12,959 |
Total current assets |
|
1,382,438 |
|
1,313,058 |
|
181,857 |
Non-current assets |
|
|
|
|
|
|
Property and equipment, net |
|
6,169 |
|
5,504 |
|
762 |
Intangible assets, net |
|
23,245 |
|
22,080 |
|
3,058 |
Operating lease right-of-use assets |
|
3,648 |
|
3,235 |
|
448 |
Long-term investment |
|
26,333 |
|
26,333 |
|
3,647 |
Other non-current assets |
|
8,662 |
|
8,286 |
|
1,146 |
Total non-current assets |
|
68,057 |
|
65,438 |
|
9,061 |
Total assets |
|
1,450,495 |
|
1,378,496 |
|
190,918 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
22,139 |
|
21,556 |
|
2,985 |
Deferred revenue and customer advances |
|
318,587 |
|
313,790 |
|
43,459 |
Amounts due to related parties |
|
4,428 |
|
22,710 |
|
3,145 |
Accrued expenses and other current liabilities |
|
143,677 |
|
94,054 |
|
13,026 |
Dividend payable |
|
- |
|
37,525 |
|
5,197 |
Current operating lease liabilities |
|
1,927 |
|
1,823 |
|
252 |
Total current liabilities |
|
490,758 |
|
491,458 |
|
68,064 |
Non-current liabilities |
|
|
|
|
|
|
Non-current operating lease liabilities |
|
1,933 |
|
1,495 |
|
207 |
Total non-current liabilities |
|
1,933 |
|
1,495 |
|
207 |
Total liabilities |
|
492,691 |
|
492,953 |
|
68,271 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Ordinary shares (par value of |
|
185 |
|
185 |
|
26 |
Additional paid-in capital |
|
1,088,628 |
|
994,532 |
|
137,741 |
|
|
(16,665) |
|
(17,922) |
|
(2,482) |
Statutory reserves |
|
8,164 |
|
8,164 |
|
1,131 |
Accumulated other comprehensive income |
|
17,955 |
|
18,745 |
|
2,596 |
Accumulated deficit |
|
(140,463) |
|
(118,161) |
|
(16,365) |
Total shareholders' equity |
|
957,804 |
|
885,543 |
|
122,647 |
Total liabilities and shareholders' equity |
|
1,450,495 |
|
1,378,496 |
|
190,918 |
iHuman Inc. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Amounts in thousands of Renminbi ("RMB") and |
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For the three months ended |
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|
|
|
|
|
|
|
|
|
2023 |
|
2024 |
|
2024 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
Revenues |
|
265,203 |
|
235,003 |
|
32,548 |
Cost of revenues |
|
(79,636) |
|
(66,892) |
|
(9,264) |
|
|
|
|
|
|
|
Gross profit |
|
185,567 |
|
168,111 |
|
23,284 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research and development expenses |
|
(61,673) |
|
(67,923) |
|
(9,407) |
Sales and marketing expenses |
|
(40,435) |
|
(54,995) |
|
(7,617) |
General and administrative expenses |
|
(26,735) |
|
(27,724) |
|
(3,840) |
Total operating expenses |
|
(128,843) |
|
(150,642) |
|
(20,864) |
Operating income |
|
56,724 |
|
17,469 |
|
2,420 |
Other income, net |
|
6,082 |
|
9,010 |
|
1,248 |
Income before income taxes |
|
62,806 |
|
26,479 |
|
3,668 |
Income tax expenses |
|
(9,160) |
|
(4,177) |
|
(579) |
Net income |
|
53,646 |
|
22,302 |
|
3,089 |
|
|
|
|
|
|
|
Net income per ADS: |
|
|
|
|
|
|
- Basic |
|
1.01 |
|
0.42 |
|
0.06 |
- Diluted |
|
0.98 |
|
0.41 |
|
0.06 |
|
|
|
|
|
|
|
Weighted average number of ADSs: |
|
|
|
|
|
|
- Basic |
|
52,953,297 |
|
52,729,148 |
|
52,729,148 |
- Diluted |
|
54,763,570 |
|
54,691,599 |
|
54,691,599 |
|
|
|
|
|
|
|
Total share-based compensation expenses included in: |
|
|
|
|
|
|
Cost of revenues |
|
98 |
|
40 |
|
6 |
Research and development expenses |
|
638 |
|
457 |
|
63 |
Sales and marketing expenses |
|
379 |
|
46 |
|
6 |
General and administrative expenses |
|
1,292 |
|
301 |
|
42 |
iHuman Inc. |
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UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
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|
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(Amounts in thousands of Renminbi ("RMB") and |
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|
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|
|
For the three months ended |
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|
|
|
|
|
|
|
|
|
2023 |
|
2024 |
|
2024 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
Operating income |
|
56,724 |
|
17,469 |
|
2,420 |
Share-based compensation expenses |
|
2,407 |
|
844 |
|
117 |
Adjusted operating income |
|
59,131 |
|
18,313 |
|
2,537 |
|
|
|
|
|
|
|
Net income |
|
53,646 |
|
22,302 |
|
3,089 |
Share-based compensation expenses |
|
2,407 |
|
844 |
|
117 |
Adjusted net income |
|
56,053 |
|
23,146 |
|
3,206 |
|
|
|
|
|
|
|
Diluted net income per ADS |
|
0.98 |
|
0.41 |
|
0.06 |
Impact of non-GAAP adjustments |
|
0.04 |
|
0.01 |
|
0.00 |
Adjusted diluted net income per ADS |
|
1.02 |
|
0.42 |
|
0.06 |
|
|
|
|
|
|
|
Weighted average number of ADSs – diluted |
|
54,763,570 |
|
54,691,599 |
|
54,691,599 |
Weighted average number of ADSs – adjusted |
|
54,763,570 |
|
54,691,599 |
|
54,691,599 |
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