Global Mofy Reports YoY $9.8 million Increase in Net Income for the Six Months Ended March 31, 2024
Rhea-AI Summary
Global Mofy Metaverse (Nasdaq: GMM) reported impressive financial results for the six months ended March 31, 2024. Revenue surged 55.3% to $19.9 million, while gross profit increased by 135.1% to $11.8 million. The company's EPS soared by 1537.9% to $0.37. These record-breaking results were attributed to strong demand for high-quality digital content and 3D digital assets.
CEO Haogang Yang highlighted the company's focus on AI-driven solutions, including their generative AI platform Gausspeed. Global Mofy has expanded globally, establishing a North American subsidiary, GMM DISCOVERY. The company also plans to launch a $69 million fund for growth opportunities in AI, digital economy, and entertainment sectors.
Positive
- Revenue increased by 55.3% to $19.9 million
- Gross profit surged by 135.1% to $11.8 million
- Gross margin expanded from 39.2% to 59.3%
- EPS increased by 1537.9% to $0.37
- Net income grew by 1859.5% to $10.3 million
- Operating income surged by 811.7% to $6.7 million
- Digital assets surpassed 100,000, enhancing profitability
- Established North American subsidiary GMM DISCOVERY for global expansion
- Entered LOI to launch a $69 million fund for growth opportunities
Negative
- Total operating expenses increased by 17.5% to $5.1 million
- R&D investments decreased from $3.3 million to $0.8 million
News Market Reaction 1 Alert
On the day this news was published, GMM gained 6.62%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Company to Host Investor Call on Tuesday, July 23, 2024, at 8.30 am ET
- Revenue achieved a record of
$19.9 million , up55.3% from$12.8 Million . - Gross Profit Increased by
135.1% to$11.8 Million from$5.0 Million . - Gross Margin Expanded to
59.3% from39.2% . - EPS Surged by
1537.9% to$0.37 from$0.02 .
BEIJING, July 23, 2024 (GLOBE NEWSWIRE) -- Global Mofy Metaverse Limited (the "Company" or "Global Mofy") (Nasdaq: GMM), a technology solutions provider engaged in virtual content production and the development of 3D digital assets for use in the broader digital content industry, today reported financial results for the six months ended March 31, 2024, with revenue, gross margin, and EPS all surging on a year-over-year basis to new company records.
“The digital revolution is transforming industries worldwide, and Global Mofy is at the forefront, partnering with leading technology firms to transform traditional content creation into an AI-powered, efficient, and innovative process,” said Haogang Yang, founder and CEO of Global Mofy. “AI, and notably, AIGC, is set to bring substantial productivity improvements to the digital content industry, enabling companies, including ours, to become more cost- and energy-efficient while unlocking new revenue streams.
“Our impressive performance was primarily driven by the industry’s strong demand for our high-quality digital contents and 3D digital assets, reflecting the value we provide to our clients, and our mission to set new standards in the industry. Additionally, the results are a testament to the continuous efforts of our dedicated team across all sectors. Our AI generative platform, Gausspeed, remains a central focus of our future R&D initiatives. We are excited about its potential, along with other innovations in our pipeline, to streamline traditional industry processes, enhance creativity, and deliver greater services to both our established and newly acquired clients.
“Given our outstanding financial results for the first half of 2024, we are more confident than ever in our decision to pursue an aggressive strategic transformation towards AI-Driven solutions. Additionally, the recent establishment of our North American subsidiary, GMM DISCOVERY, marks a significant step for our company towards globalization and expanding our market reach. With our commitment to excellence and a clear vision for the future, we are poised for sustained growth and success in the evolving digital content industry, ensuring meaningful value to our shareholders in the future.”
Financial Results for the Six Months Ended Mar 31, 2024
Total revenue for the six months ended March 31, 2024 increased by
Cost of revenues increased slightly to
Gross profit for the six months ended March 31, 2024 increased by
Total operating expenses for the six months ended March 31, 2024 increased by
Operating income for the six months ended March 31, 2024 surged by
Net income for the six months ended March 31, 2024 increased by
R&D investments for the six months ended March 31, 2024, were
Total current assets were
Operational and Strategic Highlights
Global Mofy achieved progress since its previous earnings announcement in these areas:
- Strategic Transformation: Global Mofy has undergone a significant strategic transformation to embrace the changing market and rising innovation and involvement of AI technology. This initiative aims to position the Company as an AI-driven technology solutions provider, focusing on integrating AI technologies across our operations. Key initiatives include the development of new AI tools and platforms, such as our generative AI platform Gausspeed, developed in collaboration with NVIDIA Omniverse. These advancements have significantly enhanced the company’s content creation efficiency and reduced production costs, while also helping the broader digital content industry by improving overall productivity and reducing costs.
- Global Market Expansion: The Company has expanded its global footprint with offices established in Beijing, Zhejiang, and now in California, United States, along with the establishment of its North American subsidiary, GMM DISCOVERY LLC. This strategic expansion enhances the ability to serve a diverse client base and explore new market opportunities, solidifying its aim to become a global leader in virtual content production and 3D digital asset development.
- Establishment of
Conference Call and Webcast Information
Global Mofy will host a conference call and webcast to discuss its financial results for the six months ended March 31, 2024, and provide a business outlook on Tuesday, July 23, at 8:30 a.m. Eastern Time.
Participants can register for the live audio call using the following link: https://register.vevent.com/register/BIee49e05ca8f24b4fb8584ff585a1fddd. Upon successful registration, participants will receive a conference PIN and dial-in number.
A live webcast of the conference call will be available at https://edge.media-server.com/mmc/p/3t6xp7iz. Full recording of the call will be available on the Company’s investor relations website immediately after the event: https://ir.globalmofy.cn/.
About Global Mofy Metaverse Limited
Global Mofy Metaverse Limited (Nasdaq: GMM) is an AI-technology driven technology solutions provider engaged in virtual content production, and the development of digital assets for the digital content industry. Utilizing its proprietary "Mofy Lab" technology platform, which consists of interactive 3D and artificial intelligence ("AI") technology, the Company creates high-definition virtual versions of a wide range of physical world objects in 3D ranging from characters, objects to scenes and more. The digital assets can be used in different applications, including movies, TV series, AR/VR, animation, advertising, gaming, and more. Global Mofy Metaverse is one of the leading digital asset banks in China, which consists of more than 100,000 high-precision 3D digital assets. For more information, please visit www.globalmofy.cn/ or ir.globalmofy.cn.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
| Global Mofy Metaverse Ltd. Investor Relations Department ir@mof-vfx.com | Global IR Partners David Pasquale GMM@globalirpartners.com |
| GLOBAL MOFY METAVERSE LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars, except for the number of shares) | ||||||||
| March 31, 2024 | September 30, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 7,359,109 | $ | 10,437,580 | ||||
| Short-term investments | 795,000 | 780,000 | ||||||
| Accounts receivable, net | 3,178,548 | 3,286,330 | ||||||
| Advance to vendors | 781,628 | 2,593,887 | ||||||
| Loans receivable – current | 5,156,070 | 287,829 | ||||||
| Prepaid expenses and other current assets, net | 578,260 | 507,336 | ||||||
| Total current assets | 17,848,615 | 17,892,962 | ||||||
| Non-current assets | ||||||||
| Long-term investment | 276,997 | — | ||||||
| Property and equipment, net | 29,938 | 34,431 | ||||||
| Intangible assets, net | 28,752,921 | 6,505,792 | ||||||
| Operating lease right-of-use assets | 954,342 | 954,771 | ||||||
| Loans receivable – noncurrent | — | 447,505 | ||||||
| Advance to vendor – noncurrent | 1,858,357 | 1,020,874 | ||||||
| Other non-current assets, net | 6,313 | 262,986 | ||||||
| Total non-current assets | 31,878,868 | 9,226,359 | ||||||
| Total Assets | $ | 49,727,483 | $ | 27,119,321 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Short-term bank loans | $ | 1,931,933 | $ | 2,442,609 | ||||
| Loans from third parties | 22,852 | 22,615 | ||||||
| Accounts payable | 1,944,374 | 531,091 | ||||||
| Advance from customers | 1,025,481 | 345,838 | ||||||
| Tax payable – current | 4,589 | 1,555,059 | ||||||
| Accrued expenses and other liabilities | 553,299 | 555,440 | ||||||
| Operating lease liabilities – current | 318,824 | 293,040 | ||||||
| Total current liabilities | 5,801,352 | 5,745,692 | ||||||
| Non-current Liabilities | ||||||||
| Operating lease liabilities – noncurrent | 449,726 | 556,674 | ||||||
| Tax payable – noncurrent | 3,489,981 | — | ||||||
| Warrant liability | 1,028,821 | — | ||||||
| Total non-current liabilities | 4,968,528 | 556,674 | ||||||
| Total Liabilities | 10,769,880 | 6,302,366 | ||||||
| Commitments | ||||||||
| Equity: | ||||||||
| Ordinary shares (US | 57 | 52 | ||||||
| Additional paid-in capital | 23,061,726 | 16,035,229 | ||||||
| Statutory reserves | 1,086,591 | 368,271 | ||||||
| Retained earnings | 15,529,581 | 5,158,115 | ||||||
| Accumulated other comprehensive (loss) | (578,311 | ) | (604,182 | ) | ||||
| Total Global Mofy Metaverse Limited shareholders’ equity | 39,099,644 | 20,957,485 | ||||||
| Non-controlling interests | (142,041 | ) | (140,530 | ) | ||||
| Total equity | 38,957,603 | 20,816,955 | ||||||
| Total liabilities and equity | $ | 49,727,483 | $ | 27,119,321 | ||||
| GLOBAL MOFY METAVERSE LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
| For the Six Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenues | $ | 19,918,959 | $ | 12,823,586 | ||||
| Cost of revenues | (8,100,554 | ) | (7,798,985 | ) | ||||
| Gross profit | 11,818,405 | 5,024,601 | ||||||
| Operating expenses: | ||||||||
| Selling expenses | (361,792 | ) | (98,893 | ) | ||||
| General and administrative expenses | (3,907,045 | ) | (933,617 | ) | ||||
| Research and development expenses | (839,388 | ) | (3,316,680 | ) | ||||
| Total operating expenses | (5,108,225 | ) | (4,349,190 | ) | ||||
| Income from operations | 6,710,180 | 675,411 | ||||||
| Other income (expenses): | ||||||||
| Interest income | 204,254 | 36,693 | ||||||
| Interest expenses | (117,858 | ) | (46,312 | ) | ||||
| Issuance costs allocated to warrant liability | (823,846 | ) | — | |||||
| Change of fair value of warrant liability | 6,743,319 | — | ||||||
| Other income, net | 40,134 | 36,748 | ||||||
| Total other income, net | 6,046,003 | 27,129 | ||||||
| Income before income taxes | 12,756,183 | 702,540 | ||||||
| Income tax expense | (2,436,804 | ) | (175,917 | ) | ||||
| Net income | 10,319,379 | 526,623 | ||||||
| Net loss attributable to non-controlling interest | (39 | ) | (39 | ) | ||||
| Net income attributable to Global Mofy Metaverse Limited | $ | 10,319,418 | $ | 526,662 | ||||
| Comprehensive income (loss) | ||||||||
| Net income | $ | 10,319,379 | $ | 526,623 | ||||
| Foreign currency translation gain | 24,399 | 131,185 | ||||||
| Total comprehensive income | 10,343,778 | 657,808 | ||||||
| Comprehensive loss attributable to non-controlling interests | (1,511 | ) | (5,180 | ) | ||||
| Comprehensive income attributable to Global Mofy Metaverse Limited | $ | 10,345,289 | $ | 662,988 | ||||
| Earnings per common share | ||||||||
| – Basic* | $ | 0.37 | $ | 0.02 | ||||
| – Diluted* | $ | 0.36 | $ | 0.02 | ||||
| Weighted average number of common shares outstanding | ||||||||
| – Basic* | 27,830,578 | 24,254,421 | ||||||
| – Diluted* | 28,658,166 | 24,254,421 | ||||||
FAQ
What was Global Mofy's (GMM) revenue for the six months ended March 31, 2024?
How much did Global Mofy's (GMM) EPS increase in the first half of 2024?
What is the name of Global Mofy's (GMM) AI generative platform?
How much is the fund that Global Mofy (GMM) plans to launch for growth opportunities?
What was Global Mofy's (GMM) net income for the six months ended March 31, 2024?
