iHuman Inc. Announces Second Quarter 2023 Unaudited Financial Results
- Revenues increased by 4.5% to RMB241.0 million
- Gross profit increased by 4.7% to RMB170.8 million
- Operating income increased by 80.8% to RMB40.9 million
- Net income increased by 93.1% to RMB42.1 million
- Average total MAUs increased by 11.7% to 20.33 million
- None.
Second Quarter 2023 Highlights
- Revenues were
RMB241.0 million (US ), compared with$33.2 million RMB230.6 million in the same period last year. - Gross profit was
RMB170.8 million (US ), compared with$23.6 million RMB163.2 million in the same period last year. - Operating income was
RMB40.9 million (US ), a year-over-year increase of$5.6 million 80.8% . - Adjusted operating income[1] was
RMB43.3 million (US ), a year-over-year increase of$6.0 million 75.7% . - Net income was
RMB42.1 million (US ), a year-over-year increase of$5.8 million 93.1% . - Adjusted net income[1] was
RMB44.5 million (US ), a year-over-year increase of$6.1 million 86.8% . - Average total MAUs[2] for the second quarter were 20.33 million, a year-over-year increase of
11.7% .
Dr. Peng Dai, Director and Chief Executive Officer of iHuman, commented, "Despite the impact of seasonality on our business, we are pleased to deliver another quarter of solid results, marked by year-over-year revenue improvement and enhanced profitability. This performance underscores the resilience of our business model and the effective execution by our team to further solidify our industry-leading position. During the quarter, we remained committed to our product-driven strategy and to strengthening our portfolio through a combination of cutting-edge technological innovation and captivating content. Domestically, we further optimized our comprehensive portfolio, rolling out enhancements to both newer releases and well-established core offerings. For example, within iHuman Little Artists, we launched "Interactive Art Gallery", an innovative module designed to introduce children to art and nurture their creativity through an integrated online-offline experience. Leveraging advanced technologies such as key point recognition, image segmentation and an AI-driven assessment engine, the module provides children with extensive support throughout their creative journey, including step-by-step instructions, instant and personalized feedback, and guidance from seasoned art professionals. Within our long-standing flagship app, iHuman Chinese, which is the prominent market leader in the category, we introduced a new module named "Chinese Characters in Daily Life." By integrating Chinese characters into everyday life scenarios and weaving them into intriguing short stories that resonate with children, the module strengthens children's familiarity and proficiency with Chinese characters in a fun way. Internationally, we continued to boost our market presence by diligently enriching our product offerings with enlightening content and innovative features. In particular, we expanded Aha World with two more highly engaging modules, "My World" and "City." Designed to further unleash children's creativity, these modules offer children a wide array of elements with which they can use their imagination to custom-design scenes from daily life in the virtual world. The open-ended creative experience offered by these modules received an enthusiastic reception from our young audience. Looking ahead, we will continue to focus on technological innovation and content excellence to secure the long-term success of our products and sustainable growth of our business."
Ms. Vivien Weiwei Wang, Director and Chief Financial Officer of iHuman, added, "We reported another solid set of results which reflects our commitment and continued focus on driving sustainable growth and profitability. Our revenues continued to grow year-over-year and our net income nearly doubled, marking our sixth consecutive quarter of profitability. Our strong and balanced financial position enables us to continue investing in innovation and cutting-edge technologies to support the sustainable growth of our business. The solid foundation created by our user base is an integral driver for our long-term growth. During the quarter, our average total MAUs increased by
Second Quarter 2023 Unaudited Financial Results
Revenues
Revenues were
Average total MAUs for the quarter were 20.33 million, an increase of
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
Excluding share-based compensation expenses, adjusted operating income was
Net Income
Net income was
Adjusted net income was
Basic and diluted net income per ADS were
Adjusted diluted net income per ADS was
Deferred Revenue and Customer Advances
Deferred revenue and customer advances were
Cash, Cash Equivalents and Time Deposits
Cash, cash equivalents and time deposits were
[1] "Adjusted operating income" and "adjusted net income" exclude share-based compensation expenses. Please see "Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and non-GAAP Results" at the end of this press release. |
[2] "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. |
[3] "Paying users" refers to users who paid subscription fees for premium content on any of the Company's apps during a specific period; a user who makes payments across different apps using the same registered account is counted as one paying user, and a user who makes payments for the same app multiple times in the same period is counted as one paying user. |
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 iHuman Inc.
iHuman Inc. is a leading provider of tech-powered, intellectual development products in
For more information about iHuman, please visit https://ir.ihuman.com/.
For investor and media enquiries, please contact:
iHuman Inc.
Mr. Justin Zhang
Investor Relations Director
Phone: +86 10 5780-6606
E-mail: ir@ihuman.com
Christensen
In
Mr. Eric Yuan
Phone: +86-13801110739
E-mail: eric.yuan@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com
iHuman Inc. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Amounts in thousands of Renminbi ("RMB") and | |||||
except for number of shares, ADSs, per share and per ADS data) | |||||
December 31, | June 30, | June 30, | |||
2022 | 2023 | 2023 | |||
RMB | RMB | US$ | |||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 1,049,999 | 967,472 | 133,420 | ||
Time deposits | - | 137,290 | 18,933 | ||
Accounts receivable, net | 79,614 | 58,982 | 8,134 | ||
Inventories, net | 19,127 | 15,144 | 2,088 | ||
Amounts due from related parties | 2,286 | 1,780 | 245 | ||
Prepayments and other current assets | 102,765 | 92,630 | 12,774 | ||
Total current assets | 1,253,791 | 1,273,298 | 175,594 | ||
Non-current assets | |||||
Property and equipment, net | 9,205 | 7,284 | 1,005 | ||
Intangible assets, net | 24,872 | 24,707 | 3,407 | ||
Operating lease right-of-use assets | 12,782 | 3,626 | 500 | ||
Long-term investment | 26,333 | 26,333 | 3,631 | ||
Other non-current assets | 6,416 | 6,659 | 922 | ||
Total non-current assets | 79,608 | 68,609 | 9,465 | ||
Total assets | 1,333,399 | 1,341,907 | 185,059 | ||
LIABILITIES | |||||
Current liabilities | |||||
Accounts payable | 24,206 | 20,198 | 2,785 | ||
Deferred revenue and customer advances | 379,063 | 325,828 | 44,934 | ||
Amounts due to related parties | 6,944 | 3,529 | 487 | ||
Accrued expenses and other current liabilities | 144,717 | 110,440 | 15,230 | ||
Current operating lease liabilities | 6,123 | 1,566 | 216 | ||
Total current liabilities | 561,053 | 461,561 | 63,652 | ||
Non-current liabilities | |||||
Non-current operating lease liabilities | 2,894 | 2,267 | 313 | ||
Total non-current liabilities | 2,894 | 2,267 | 313 | ||
Total liabilities | 563,947 | 463,828 | 63,965 | ||
SHAREHOLDERS' EQUITY | |||||
Ordinary shares (par value of | 185 | 185 | 26 | ||
Additional paid-in capital | 1,079,099 | 1,083,937 | 149,482 | ||
Treasury stock | (7,123) | (15,592) | (2,150) | ||
Statutory reserves | 7,967 | 7,967 | 1,099 | ||
Accumulated other comprehensive income | 10,497 | 27,035 | 3,728 | ||
Accumulated deficit | (321,173) | (225,453) | (31,091) | ||
Total shareholders' equity | 769,452 | 878,079 | 121,094 | ||
Total liabilities and shareholders' equity | 1,333,399 | 1,341,907 | 185,059 |
iHuman Inc. | |||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
(Amounts in thousands of Renminbi ("RMB") and | |||||||||||||
except for number of shares, ADSs, per share and per ADS data) | |||||||||||||
For the three months ended | For the six months ended | ||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | June 30, | June 30, | |||||||
2022 | 2023 | 2023 | 2023 | 2022 | 2023 | 2023 | |||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Revenues | 230,607 | 265,203 | 240,993 | 33,234 | 473,286 | 506,196 | 69,808 | ||||||
Cost of revenues | (67,417) | (79,636) | (70,160) | (9,676) | (140,214) | (149,796) | (20,658) | ||||||
Gross profit | 163,190 | 185,567 | 170,833 | 23,558 | 333,072 | 356,400 | 49,150 | ||||||
Operating expenses | |||||||||||||
Research and development expenses | (78,201) | (61,673) | (63,412) | (8,745) | (174,826) | (125,085) | (17,250) | ||||||
Sales and marketing expenses | (33,530) | (40,435) | (40,564) | (5,594) | (69,436) | (80,999) | (11,170) | ||||||
General and administrative expenses | (28,849) | (26,735) | (25,982) | (3,583) | (54,907) | (52,717) | (7,270) | ||||||
Total operating expenses | (140,580) | (128,843) | (129,958) | (17,922) | (299,169) | (258,801) | (35,690) | ||||||
Operating income | 22,610 | 56,724 | 40,875 | 5,636 | 33,903 | 97,599 | 13,460 | ||||||
Other income, net | 2,917 | 6,082 | 8,132 | 1,121 | 6,264 | 14,214 | 1,960 | ||||||
Income before income taxes | 25,527 | 62,806 | 49,007 | 6,757 | 40,167 | 111,813 | 15,420 | ||||||
Income tax expenses | (3,737) | (9,160) | (6,933) | (956) | (5,259) | (16,093) | (2,219) | ||||||
Net income | 21,790 | 53,646 | 42,074 | 5,801 | 34,908 | 95,720 | 13,201 | ||||||
Net income per ADS: | |||||||||||||
- Basic | 0.41 | 1.01 | 0.80 | 0.11 | 0.66 | 1.81 | 0.25 | ||||||
- Diluted | 0.40 | 0.98 | 0.77 | 0.11 | 0.64 | 1.75 | 0.24 | ||||||
Weighted average number of ADSs: | |||||||||||||
- Basic | 53,308,924 | 52,953,297 | 52,804,594 | 52,804,594 | 53,392,158 | 52,878,535 | 52,878,535 | ||||||
- Diluted | 53,958,284 | 54,763,570 | 54,725,528 | 54,725,528 | 54,009,098 | 54,744,139 | 54,744,139 | ||||||
Total share-based compensation expenses included in: | |||||||||||||
Cost of revenues | 39 | 98 | 70 | 10 | 103 | 168 | 23 | ||||||
Research and development expenses | 801 | 638 | 1,142 | 157 | 1,768 | 1,780 | 245 | ||||||
Sales and marketing expenses | 430 | 379 | 59 | 8 | 342 | 438 | 60 | ||||||
General and administrative expenses | 762 | 1,292 | 1,160 | 160 | 1,776 | 2,452 | 338 | ||||||
iHuman Inc. | |||||||||||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |||||||||||||||
(Amounts in thousands of Renminbi ("RMB") and | |||||||||||||||
except for number of shares, ADSs, per share and per ADS data) | |||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | June 30, | June 30, | |||||||||
2022 | 2023 | 2023 | 2023 | 2022 | 2023 | 2023 | |||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
Operating income | 22,610 | 56,724 | 40,875 | 5,636 | 33,903 | 97,599 | 13,460 | ||||||||
Share-based compensation expenses | 2,032 | 2,407 | 2,431 | 335 | 3,989 | 4,838 | 666 | ||||||||
Adjusted operating income | 24,642 | 59,131 | 43,306 | 5,971 | 37,892 | 102,437 | 14,126 | ||||||||
Net income | 21,790 | 53,646 | 42,074 | 5,801 | 34,908 | 95,720 | 13,201 | ||||||||
Share-based compensation expenses | 2,032 | 2,407 | 2,431 | 335 | 3,989 | 4,838 | 666 | ||||||||
Adjusted net income | 23,822 | 56,053 | 44,505 | 6,136 | 38,897 | 100,558 | 13,867 | ||||||||
Diluted net income per ADS | 0.40 | 0.98 | 0.77 | 0.11 | 0.64 | 1.75 | 0.24 | ||||||||
Impact of non-GAAP adjustments | 0.04 | 0.04 | 0.04 | 0.00 | 0.08 | 0.09 | 0.01 | ||||||||
Adjusted diluted net income per ADS | 0.44 | 1.02 | 0.81 | 0.11 | 0.72 | 1.84 | 0.25 | ||||||||
Weighted average number of ADSs – diluted | 53,958,284 | 54,763,570 | 54,725,528 | 54,725,528 | 54,009,098 | 54,744,139 | 54,744,139 | ||||||||
Weighted average number of ADSs – adjusted | 53,958,284 | 54,763,570 | 54,725,528 | 54,725,528 | 54,009,098 | 54,744,139 | 54,744,139 |
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SOURCE iHuman Inc.