Scienjoy Holding Corporation Reports Fiscal Year 2023 Financial Results
Scienjoy Holding , a leading interactive entertainment company in China, reported its fiscal year 2023 financial results. Total revenues decreased to RMB1,464.9 million, gross profit declined to RMB192.7 million, and income from operations decreased to RMB22.8 million. The net loss attributable to shareholders was RMB30.8 million. The company had cash and cash equivalents of RMB205.5 million and total paying users were 557,692 in 2023. The company's strategic initiatives in the metaverse and AI technologies aim for long-term growth.
- Total revenues decreased to RMB1,464.9 million
- Gross profit declined to RMB192.7 million
- Income from operations decreased to RMB22.8 million
- Net loss attributable to shareholders was RMB30.8 million
- Cash and cash equivalents of RMB205.5 million
- Total paying users were 557,692 in 2023
- Strategic initiatives in metaverse and AI technologies for long-term growth
- Decrease in revenue and profit margins
- Net loss for the fiscal year
- Decrease in total paying users compared to the previous year
Insights
Fiscal Year 2023 Operating and Financial Summary
- Total revenues decreased to
RMB1,464.9 million (US ) for the year ended December 31, 2023 from$206.3 million RMB1,953.3 million for the year ended December 31, 2022. - Gross profit decreased to
RMB192.7 million (US ) for the year ended December 31, 2023 from$27.1 million RMB283.2 million for the year ended December 31, 2022. - Income from operations decreased to
RMB22.8 million (US ) for the year ended December 31, 2023 from$3.2 million RMB149.8 million for the year ended December 31, 2022. Excluding one-time provision for credit loss ofRMB16.3 million , income from operation would amount toRMB39.1 million (US ) for the year ended December 31, 2023.$5.5 million - Net loss attributable to the Company's shareholders was
RMB30.8 million (US ) for the year ended December 31, 2023, as compared with a net income attributable to the Company's shareholders of$4.3 million RMB193.3 million for the year ended December 31, 2022. Excluding one-time expenses amounting toRMB58.8 million including investment impairment, share of unrealized loss, and provision for credit loss, the Company would have net income attributable to the Company's shareholders ofRMB28.0 million (US ) for the year ended December 31, 2023.$3.9 million - Adjusted net loss attributable to the Company's shareholders was
RMB11.7 million (US ) for the year ended December 31, 2023, as compared with a net income adjusted attributable to the Company's shareholders of$1.6 million RMB181.4 million for the year ended December 31, 2022. - As of December 31, 2023, the Company had cash and cash equivalent balance of
RMB205.5 million (US ), increased by$28.9million 17.2% fromRMB175.3 million as of December 31, 2022. - Total paying users were 557,692 for the year ended December 31, 2023, compared to 702,372 for the year ended December 31, 2022.
Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "It gives me great pleasure to look back on the past fiscal year 2023, a milestone year with remarkable progresses in our globalization and metaverse vision. We are steadily moving forward towards building a personalized and intelligent metaverse lifestyle through AI-powered technologies and strategic initiatives in
Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "For the fiscal year 2023, our total net revenue witnessed a moderate decline in the face of business transition and market fluctuations. Nevertheless, our technological capacity and strategic initiatives have enabled us to maintain stable operation and financial fundamentals. Excluding the impact of one-time expenses and losses, we would see a net income in fiscal year 2023, contrary to the loss-making situation. Moreover, our cost structure is being optimized to maximize our investment and potential returns in the metaverse business and global expansion. Our cash and cash equivalents steadily rose by
Fiscal Year 2023 Financial Results
Total revenues decreased by
Cost of revenues decreased by
Gross profit decreased by
Total operating expenses increased by
- Sales and marketing expenses decreased by
36.3% toRMB1.4 million (US ) for the year ended December 31, 2023 from$0.2 million RMB2.1 million for the year ended December 31, 2022, primarily due to fewer marketing activities as the Company tightened the budget based on current operating needs. - General and administrative expenses increased by23.
9% toRMB75.6 million (US ) for the year ended December 31, 2023 from$10.6 million RMB61.0 million for the year ended December 31, 2022. The increase was primarily due to an increase ofRMB4.9 million in employee salary and welfare, an increase ofRMB4.0 million in share base compensations and an increase ofRMB2.5 million office renovation expenses. - Research and development expenses increased by
11.2% toRMB75.1 million (US ) for the year ended December 31, 2023 from$10.6 million RMB67.5 million for the year ended December 31, 2022, due to an increase ofRMB7.5 million in employee salary and welfare. - Provision for doubtful accounts increased by
552.2% toRMB17.9 million (US ) for the year ended December 31, 2023 from$2.5 million RMB2.7 million for the year ended December 31, 2022, primary due to one-time credit loss provision ofRMB16.3 million for the loan receivable.
Income from operations decreased by
Change in fair value of contingent consideration amounted to a loss of
Change in fair value of warrants liability decreased to a gain of
Change in fair value of investment in marketable security amounted to a loss of
Investment loss amounted to
Impairment of long-term investments amounted to
Net loss amounted to
Net loss attributable to the Company's shareholders amounted to
Adjusted net loss attributable to the Company's shareholders amounted to
Basic and diluted net loss attributable to the Company's shareholders per ordinary share were both
Adjusted basic and diluted net loss attributable to the Company's shareholders per ordinary share were both
As of December 31, 2023, the Company had cash and cash equivalents of
Business Outlook
The Company expects its total revenues to be in the range of
About Scienjoy Holding Corporation
Scienjoy is a pioneering Nasdaq-listed interactive entertainment leader. Driven by the vision of shaping a metaverse lifestyle, Scienjoy leverages AI-powered technology to create immersive experiences that resonate with global audiences, fostering meaningful connections and redefining entertainment. For more information, please visit http://ir.scienjoy.com/.
Use of Non-GAAP Financial Measures
Adjusted net income is calculated as net income adjusted for change in fair value of contingent consideration, change in fair value of warrant liability and share based compensation. Adjusted basic and diluted net income per ordinary share is non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission ("SEC") from time to time. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
For investor and media inquiries, please contact:
Investor Relations Contacts
Denny Tang
Chief Financial Officer
Scienjoy Holding Corporation
+86-10-64428188
ir@scienjoy.com
Ascent Investor Relations LLC
Tina Xiao
+1-646-932-7242
investors@ascent-ir.com
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||
As of December 31, | ||||||||||||
2022 | 2023 | 2023 | ||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 175,292 | 205,465 | 28,939 | |||||||||
Accounts receivable, net | 316,657 | 260,979 | 36,758 | |||||||||
Prepaid expenses and other current assets | 115,170 | 78,653 | 11,078 | |||||||||
Amounts due from related parties | 1,115 | 355 | 50 | |||||||||
Investment in marketable security | 40,548 | 31,525 | 4,440 | |||||||||
Total current assets | 648,782 | 576,977 | 81,265 | |||||||||
Property and equipment, net | 2,735 | 2,193 | 309 | |||||||||
Intangible assets, net | 419,055 | 412,154 | 58,051 | |||||||||
Goodwill | 172,781 | 182,467 | 25,700 | |||||||||
Long term investment | 234,176 | 254,411 | 35,833 | |||||||||
Long term deposits and other assets | 953 | 726 | 102 | |||||||||
Right-of-use assets-operating lease | 19,209 | 12,157 | 1,712 | |||||||||
Deferred tax assets | 4,337 | 7,379 | 1,039 | |||||||||
Total non-current assets | 853,246 | 871,487 | 122,746 | |||||||||
TOTAL ASSETS | 1,502,028 | 1,448,464 | 204,011 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Bank loan | 5,000 | - | - | |||||||||
Accounts payable | 116,251 | 73,183 | 10,306 | |||||||||
Accrued salary and employee benefits | 12,428 | 14,763 | 2,079 | |||||||||
Accrued expenses and other current liabilities | 13,264 | 27,610 | 3,889 | |||||||||
Contingent consideration – earn-out liability | 4,336 | - | - | |||||||||
Warrant liabilities | 166 | - | - | |||||||||
Income tax payable | 13,531 | 13,005 | 1,832 | |||||||||
Lease liabilities-operating lease -current | 7,174 | 7,974 | 1,123 | |||||||||
Deferred revenue | 93,383 | 97,586 | 13,745 | |||||||||
Total current liabilities | 265,533 | 234,121 | 32,974 | |||||||||
Non-current liabilities | ||||||||||||
Deferred tax liabilities | 61,236 | 59,818 | 8,425 | |||||||||
Lease liabilities-operating lease -non-current | 12,773 | 4,798 | 676 | |||||||||
Total non-current liabilities | 74,009 | 64,616 | 9,101 | |||||||||
TOTAL LIABILITIES | 339,542 | 298,737 | 42,075 | |||||||||
Commitments and contingencies | ||||||||||||
EQUITY | ||||||||||||
Ordinary share, no par value, unlimited Class A ordinary shares | ||||||||||||
Class A ordinary shares | 396,880 | 423,623 | 59,666 | |||||||||
Class B ordinary shares | 23,896 | 23,896 | 3,366 | |||||||||
Shares to be issued | 33,923 | 30,777 | 4,335 | |||||||||
Treasury stocks | (16,482) | (19,216) | (2,707) | |||||||||
Statutory reserves | 39,208 | 44,698 | 6,296 | |||||||||
Retained earnings | 665,099 | 628,821 | 88,568 | |||||||||
Accumulated other comprehensive income | 18,070 | 17,965 | 2,530 | |||||||||
Total shareholders' equity | 1,160,594 | 1,150,564 | 162,054 | |||||||||
Non-controlling interests | 1,892 | (837) | (118) | |||||||||
Total equity | 1,162,486 | 1,149,727 | 161,936 | |||||||||
TOTAL LIABILITIES AND EQUITY | 1,502,028 | 1,448,464 | 204,011 |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||||
For the years ended December 31 | ||||||||||||||
2022 | 2023 | 2023 | ||||||||||||
RMB | RMB | US$ | ||||||||||||
Live streaming - consumable virtual items revenue | 1,886,179 | 1,420,258 | 200,040 | |||||||||||
Live streaming - time based virtual item revenue | 27,683 | 25,004 | 3,522 | |||||||||||
Technical services and others | 39,395 | 19,609 | 2,761 | |||||||||||
Total revenue | 1,953,257 | 1,464,871 | 206,323 | |||||||||||
Cost of revenues | (1,670,068) | (1,272,145) | (179,178) | |||||||||||
Gross profit | 283,189 | 192,726 | 27,145 | |||||||||||
Sales and marketing expenses | (2,127) | (1,355) | (191) | |||||||||||
General and administrative expenses | (61,005) | (75,582) | (10,646) | |||||||||||
Research and development expenses | (67,538) | (75,116) | (10,580) | |||||||||||
Recovery of (provision for) doubtful accounts | (2,739) | (17,865) | (2,516) | |||||||||||
Income from operations | 149,780 | 22,808 | 3,212 | |||||||||||
Change in fair value of contingent consideration | 13,071 | (5,624) | (792) | |||||||||||
Change in fair value of warrant liabilities | 10,776 | 170 | 24 | |||||||||||
Change in fair value of investment | 1,760 | (9,023) | (1,271) | |||||||||||
Investments income (loss) | 25,449 | (31,328) | (4,412) | |||||||||||
Impairment of long-term investments | - | (11,800) | (1,662) | |||||||||||
Interest income, net | 2,506 | 2,739 | 386 | |||||||||||
Other income (loss), net | 11,443 | 7,449 | 1,049 | |||||||||||
Foreign exchange gain (loss), net | (1,493) | (1,887) | (266) | |||||||||||
Income (loss) before income taxes | 213,292 | (26,496) | (3,732) | |||||||||||
Income tax expense | (18,067) | (8,480) | (1,194) | |||||||||||
Net income (loss) | 195,225 | (34,976) | (4,926) | |||||||||||
Less: net income (loss) attributable to noncontrolling | 1,892 | (4,188) | (590) | |||||||||||
Net income (loss) attributable to the Company's | 193,333 | (30,788) | (4,336) | |||||||||||
Other comprehensive income (loss): | ||||||||||||||
Other comprehensive income (loss) - foreign currency | 955 | (105) | (15) | |||||||||||
Comprehensive income (loss) | 196,180 | (35,081) | (4,941) | |||||||||||
Less: comprehensive income (loss) attributable to non- | 1,892 | (4,188) | (590) | |||||||||||
Comprehensive income (loss) attributable to the | 194,288 | (30,893) | (4,351) | |||||||||||
Weighted average number of shares* | ||||||||||||||
Basic | 39,263,147 | 40,649,414 | 40,649,414 | |||||||||||
Diluted | 39,263,147 | 40,649,414 | 40,649,414 | |||||||||||
Earnings (loss) per share | ||||||||||||||
Basic | 4.92 | (0.76) | (0.11) | |||||||||||
Diluted | 4.92 | (0.76) | (0.11) |
Reconciliations of Non-GAAP Results | ||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||
For the years ended December 31, | ||||||||||||
2022 | 2023 | 2023 | ||||||||||
RMB | RMB | US$ | ||||||||||
Net income (loss) attributable to the Company's | 193,333 | (30,788) | (4,336) | |||||||||
Less: | ||||||||||||
Change in fair value of contingent consideration | 13,071 | (5,624) | (792) | |||||||||
Change in fair value of warrants liability | 10,776 | 170 | 24 | |||||||||
Share based compensation | (11,954) | (13,637) | (1,921) | |||||||||
Adjusted net income (loss) attributable to the Company's | 181,440 | (11,697) | (1,647) | |||||||||
Adjusted net income (loss) per ordinary share | ||||||||||||
Basic | 4.62 | (0.29) | (0.04) | |||||||||
Diluted | 4.62 | (0.29) | (0.04) |
"Adjusted net income (loss) attributable to the Company's shareholders" is defined as net income (loss) attributable to the Company's shareholders excluding change in fair value of contingent consideration, change in fair value of warrant liability and share based compensation. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" at the end of this press release.
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SOURCE Scienjoy Holding Corporation
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