iClick Interactive Asia Group Limited Reports 2024 Half-Year Unaudited Financial Results

Rhea-AI Summary

iClick Interactive Asia Group reported unaudited financial results for H1 2024. Total revenue from continuing operations decreased 16% to US$14.2 million. Marketing Solutions revenue declined 26% to US$9.3 million, while Enterprise Solutions revenue grew 13% to US$4.9 million. The company's gross margin improved to 56.9% from 54.6% year-over-year. Net loss from continuing operations significantly improved to US$1.3 million from US$10.3 million in H1 2023. Cash position strengthened to US$70.2 million as of June 30, 2024, up from US$41.3 million at end-2023. The company completed the disposal of its mainland China Enterprise Solutions and demand side Marketing Solutions businesses.

Positive

• Gross margin improved to 56.9% from 54.6% YoY
• Enterprise Solutions revenue increased 13% YoY to US$4.9 million
• Net loss from continuing operations reduced significantly to US$1.3 million from US$10.3 million
• Cash position increased to US$70.2 million from US$41.3 million
• Operating expenses decreased from US$14.1 million to US$12.4 million

Negative

• Total revenue declined 16% YoY to US$14.2 million
• Marketing Solutions revenue dropped 26% YoY to US$9.3 million
• Gross billing decreased 23% YoY to US$23.1 million
• Net loss from discontinued operations of US$5.1 million

Insights

Financial Analyst

The H1 2024 results reveal a mixed financial picture for iClick. While total revenue declined by 16% to $14.2 million, there are several positive developments worth noting. The Enterprise Solutions segment grew 13% and gross margin improved to 56.9% from 54.6%. Most significantly, net loss from continuing operations narrowed substantially to $1.3 million from $10.3 million.

The company's strategic shift away from lower-margin, higher-risk businesses has impacted top-line growth but improved profitability metrics. The strong cash position of $70.2 million provides significant operational flexibility. The disposal of mainland China operations signals a strategic realignment that could lead to more sustainable growth, though near-term revenue may remain under pressure as the transformation continues.

Market Research Analyst

The company's strategic pivot reflects broader market dynamics in the Asian digital advertising space. The 26% decline in Marketing Solutions revenue to $9.3 million indicates both macro-economic headwinds and a deliberate move to reduce exposure to riskier segments. The growth in Enterprise Solutions, despite market challenges, suggests increasing demand for digital transformation services in the region.

The reduction in operating expenses by $1.7 million through cost optimization demonstrates management's commitment to operational efficiency. The improved cash position and reduced credit loss provisions indicate stronger risk management practices, though market uncertainty continues to affect client advertising spending.

HONG KONG, Nov. 27, 2024 /PRNewswire/ -- iClick Interactive Asia Group Limited ("iClick" or the "Company") (Nasdaq: ICLK), a renowned online marketing and enterprise solutions provider in Asia that empowers worldwide brands with full-stack consumer lifecycle solutions, today announced unaudited financial results for the six months ended June 30, 2024.

		Six Months Ended June 30,
		2024		2023		Percentage change
		(US$ in thousands)
		(Unaudited)
Financial Metrics:
Revenue from continuing operations
Marketing Solutions		9,324		12,663		(26) %
Enterprise Solutions		4,896		4,330		13 %
Total revenue from continuing operations		14,220		16,993		(16) %
Gross profit from continuing operations		8,096		9,276		(13) %
Net loss from continuing operations		(1,269)		(10,275)		N/M
Net loss from discontinued operations		(5,104)		(18,294)		N/M
Diluted net loss from continuing operations per American Depositary Shares ("ADS")		(0.12)		(1.01)		N/M
Operating Metrics:
Gross billing		23,060		29,983		(23) %

"I am pleased to report that our continuing operations recorded an improvement in gross margin to 56.9% in the first half of 2024 from 54.6% in the first half of 2023, and we saw the increase in enterprise solutions revenue by 13% year-over-year. The Company will continue to focus on improving the financial performance and cash flows, while exploring strategic opportunities for broader business growth.", said Mr. Jian Tang, Chairman, Chief Executive Officer and Co-Founder of iClick.

"We continue monitoring and evaluating operations and market trends proactively in order to optimize our business and enhance profitability. We have recently completed the disposal of our mainland China Enterprise Solutions business and demand side Marketing Solutions business. The results of these businesses are presented under discontinued operations."

First Half Year of 2024 Results on Continuing Operations:

Revenue for the first half of 2024 was US$14.2 million, compared with US$17.0 million for the first half of 2023. Revenue from Marketing Solutions declined to US$9.3 million for the first half of 2024, compared with US$12.7 million for the first half of 2023. It was resulted from our strategic contraction of lower margin and higher risk businesses, with weaker demand from clients on advertising spending due to uncertainty in the macro-economic environment. Revenue from Enterprise Solutions was US$4.9 million for the first half of 2024, improved from US$4.3 million in the first half of 2023 due to the increasing demand for digital transformation and services.

Gross profit for the first half of 2024 was US$8.1 million, compared with US$9.3 million for the first half of 2023. With the effort of reducing lower margin and higher risk businesses, and a rising revenue contribution from the higher-margin Enterprise Solutions business, gross profit margin increased to 56.9% for the first half of 2024 from 54.6% for the first half of 2023.

Total operating expenses were US$12.4 million for the first half of 2024, decreased from US$14.1 million for the first half of 2023. The change was primarily due to our cost optimization execution, which resulted in reduction of staff cost and savings on promotional expenses. The expected credit losses provision of trade receivables was also reduced because of our close monitoring of cash collection.

Net loss from continuing operations was US$1.3 million for the first half of 2024, significantly improved from the net loss of US$10.3 million for the first half of 2023, mainly due to no impairment of equity investments in the first half of 2024, which we recorded US$5.6 million in the first half of 2023. Operating loss was reduced by US$0.6 million.

Net loss from continuing operations attributable to the Company's shareholders per basic and diluted ADS for the first half of 2024 was US$0.12, compared with a net loss attributable to the Company's shareholders per basic and diluted ADS of US$1.01 for the first half of 2023.

Gross billing¹ from continuing operations was US$23.1 million for the first half of 2024, compared with US$30.0 million for the first half of 2023, mainly as a result of our continued strategy of reducing lower margin and higher risk businesses, as well as clients' reduced advertising spending.

Net loss from discontinued operations was US$5.1 million for the first half of 2024, compared with the net loss of US$18.3 million for the first half of 2023, mainly due to cost optimization, and gain on disposal of discontinued operations amounting to US$2.6 million in the first half of 2024.

As of June 30, 2024, the continuing operations of the Company had cash and cash equivalents, time deposits and restricted cash of US$70.2 million, compared with US$41.3 million as of December 31, 2023.

About iClick Interactive Asia Group Limited

Founded in 2009, iClick Interactive Asia Group Limited (NASDAQ: ICLK) is a renowned online marketing and enterprise solutions provider in Asia. With its leading proprietary technologies, iClick's full suite of data-driven solutions helps brands drive significant business growth and profitability throughout the full consumer lifecycle. For more information, please visit https://ir.i-click.com.

1 Gross billing is defined as the aggregate dollar amount that clients pay the Company after deducting rebates paid and discounts given to.

 

Safe Harbor Statement

This announcement contains forward-looking statements, including those related to the Company's business strategies, operations and financial performance. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. 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," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve inherent risks and uncertainties. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

For investor and media inquiries, please contact:

In China:	In the United States:
iClick Interactive Asia Group Limited	Core IR
Catherine Chau	Tom Caden
Phone: +852 3700 9100	Tel: +1-516-222-2560
E-mail: ir@i-click.com	E-mail: tomc@coreir.com

 

(financial tables follow)

 

ICLICK INTERACTIVE ASIA GROUP LIMITED
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(US$'000, except share data and per share data, or otherwise noted, unaudited)
		Six Months Ended    June 30,
		2024		2023
Continuing operations
Revenue		14,220		16,993
Cost of revenue		(6,124)		(7,717)
Gross profit		8,096		9,276
Operating expenses
Research and development expenses		(311)		(265)
Sales and marketing expenses		(4,381)		(8,826)
General and administrative expenses		(7,704)		(5,052)
Total operating expenses		(12,396)		(14,143)
Interest expense		(32)		(117)
Interest income		598		591
Other gains/(losses), net		2,560		(5,756)
Loss before income tax expense and share of losses from an equity investee		(1,174)		(10,149)
Share of losses from an equity investee		(37)		(19)
Loss before income tax expense		(1,211)		(10,168)
Income tax expense		(58)		(107)
Net loss from continuing operations		(1,269)		(10,275)
Net loss attributable to non-controlling interests		111		9
Net loss from continuing operations attributable to iClick Interactive Asia Group Limited's ordinary shareholders		(1,158)		(10,266)
Discontinued operations
Loss from operations of discontinued operations		(7,666)		(18,305)
Income tax (expense)/credit		(23)		11
Gain on disposal of discontinued operations		2,585		-
Net loss from discontinued operations		(5,104)		(18,294)
Net loss attributable to non-controlling interests		32		49
Net loss from discontinued operations attributable to iClick Interactive Asia Group Limited's ordinary shareholders		(5,072)		(18,245)
Net loss		(6,373)		(28,569)
Net loss attributable to iClick Interactive Asia Group Limited's ordinary shareholders		(6,230)		(28,511)
Net loss from continuing operations		(1,269)		(10,275)
Other comprehensive loss:
Foreign currency translation adjustment, net of US$nil tax		(13)		(131)
Comprehensive loss from continuing operations		(1,282)		(10,406)
Comprehensive loss from continuing operations attributable to non-controlling interests		111		49
Comprehensive loss from continuing operations attributable to iClick Interactive Asia Group Limited's ordinary shareholders		(1,171)		(10,357)
Net loss from discontinued operations		(5,104)		(18,294)
Other comprehensive income:
Foreign currency translation adjustment, net of US$nil tax		-		301
Comprehensive loss from discontinued operations		(5,104)		(17,993)
Comprehensive loss from discontinued operations attributable to non -controlling interests		32		20
Comprehensive loss from discontinued operations attributable to iClick Interactive Asia Group Limited's ordinary shareholders		(5,072)		(17,973)
Comprehensive loss attributable to iClick Interactive Asia Group Limited's ordinary shareholders		(6,243)		(28,330)
Net loss from continuing operations per ADS attributable to iClick Interactive Asia Group Limited's ordinary shareholders
— Basic		(0.12)		(1.01)
— Diluted		(0.12)		(1.01)
Net loss from discontinued operations per ADS attributable to iClick Interactive Asia Group Limited's ordinary shareholders
— Basic		(0.51)		(1.79)
— Diluted		(0.51)		(1.79)
Net loss per ADS attributable to iClick Interactive Asia Group Limited's ordinary shareholders
— Basic		(0.63)		(2.80)
— Diluted		(0.63)		(2.80)
Weighted average number of ADS used in per share calculation:
— Basic		9,955,943		10,178,966
— Diluted		9,955,943		10,178,966

 

 

ICLICK INTERACTIVE ASIA GROUP LIMITED
Unaudited Condensed Consolidated Balance Sheets
(US$'000, except share data and per share data, or otherwise noted, unaudited)
		As of June 30, 2024		As of December 31, 2023
Assets
Current assets
Cash and cash equivalents, time deposits and restricted cash		70,239		41,264
Accounts receivable, net of allowance for credit losses of US$1,558 and    US$1,571 as of June 30, 2024 and December 31, 2023 respectively		11,210		13,535
Other current assets		15,813		11,516
Discontinued operations		54,454		93,488
Total current assets		151,716		159,803
Non-current assets
Other assets		3,727		3,596
Discontinued operations		112		305
Total non-current assets		3,839		3,901
Total assets		155,555		163,704
Liabilities and equity
Current liabilities
Accounts payable		3,310		4,462
Bank borrowings		36,932		1,965
Other current liabilities		23,830		20,200
Discontinued operations		56,607		93,445
Total current liabilities		120,679		120,072
Non-current liabilities
Other liabilities		221		551
Discontinued operations		1,463		1,829
Total non-current liabilities		1,684		2,380
Total liabilities		122,363		122,452
Equity
Ordinary shares – Class A (US$0.001 par value; 80,000,000 shares authorized    as of June 30, 2024 and December 31, 2023, respectively; 38,752,446    shares and 44,477,356 shares issued and outstanding as of June 30, 2024    and December 31, 2023, respectively)		39		45
Ordinary shares – Class B (US$0.001 par value; 20,000,000 shares authorized as     of June 30, 2024 and December 31, 2023, respectively; 5,034,427 shares issued    and outstanding as of June 30, 2024 and December 31, 2023, respectively)		5		5
Treasury shares (218,396 shares and 6,398,616 shares as of June 30, 2024    and December 31, 2023, respectively)		(39)		(28,656)
Other reserves		31,853		65,731
Total iClick Interactive Asia Group Limited shareholders' equity		31,858		37,125
Non-controlling interests		1,334		4,127
Total equity		33,192		41,252
Total liabilities and equity		155,555		163,704

 

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SOURCE iClick Interactive Asia Group Limited

FAQ

What was iClick's (ICLK) revenue for H1 2024?

iClick's total revenue from continuing operations for H1 2024 was US$14.2 million, representing a 16% decrease from H1 2023.

How much did iClick's (ICLK) Enterprise Solutions revenue grow in H1 2024?

iClick's Enterprise Solutions revenue grew 13% year-over-year to US$4.9 million in H1 2024.

What was iClick's (ICLK) net loss from continuing operations in H1 2024?

iClick reported a net loss from continuing operations of US$1.3 million in H1 2024, improved from a US$10.3 million loss in H1 2023.

What was iClick's (ICLK) cash position as of June 30, 2024?

iClick had cash and cash equivalents, time deposits and restricted cash of US$70.2 million as of June 30, 2024.