Scienjoy Reports Second Quarter 2023 Unaudited Financial Results
- Adjusted net income increased by 41.3% to RMB86.8 million ($12.0 million) for Q2 2023 compared to the same period in 2022.
- Total net revenues decreased to RMB363.2 million ($50.1 million) for Q2 2023 from RMB506.5 million in Q2 2022.
Second Quarter 2023 Adjusted Net Income Attributable to the Company's Shareholders up
Second Quarter 2023 Operating and Financial Highlights
- Total net revenues was
RMB363.2 million (US ) for the three months ended June 30, 2023, as compared with$50.1 million RMB506.5 million in the same period of 2022. - Gross profit was
RMB50.4 million (US ) for the three months ended June 30, 2023, as compared with$7.0 million RMB93.2 million in the same period of 2022. - Net income attributable to the Company's shareholders increased by
25.2% toRMB84.7 million (US ) for the three months ended June 30, 2023, from$11.7 million RMB67.7 million in the same period of 2022. - Adjusted net income attributable to the Company's shareholders increased by
41.3% toRMB86.8 million (US ) for the three months ended June 30, 2023, from$12.0 million RMB61.5 million in the same period of 2022. - Total paying users was 210,673 for the three months ended June 30, 2023, as compared with 268,722 in the same period of 2022.
First Half 2023 Operating and Financial Highlights
- Total net revenues was
RMB667.4 million (US ) for the six months ended June 30, 2023, as compared with$92.0 million RMB970.0 million in the same period of 2022. - Gross profit was
RMB90.5 million (US ) for the six months ended June 30, 2023, as compared with$12.5 million RMB207.6 million in the same period of 2022. - Net income attributable to the Company's shareholders was
RMB81.6 million (US ) for the six months ended June 30, 2023, as compared with$11.2 million RMB150.9 million in the same period of 2022. - Adjusted net income attributable to the Company's shareholders was
RMB92.0 million (US ) for the six months ended June 30, 2023, as compared with$12.7 million RMB139.2 million in the same period of 2022. - Total paying users was 325,924 for the six months ended June 30, 2023, as compared with 445,753 in the same period of 2022.
- As of June 30, 2023, the Company had
RMB202.8 million (US ) in cash and cash equivalents, which represented an increase of$28.0 million RMB27.5 million fromRMB175.3 million as of December 31, 2022.
Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "The rapid evolution of the Metaverse and AI technology is not only altering the landscape of online entertainment but reshaping the way we at Scienjoy see our future. The potential to immerse consumers in richer, more intelligent, and individualized experiences opens doors to boundless business horizons. Building on our earlier commitment, we're now doubling down on crafting our distinct open Metaverse platform and ecosystem. With our recent strategic investment in DVCC TECHNOLOGY L.L.C ("DVCC"), Scienjoy is taking bold steps to embrace the metaverse revolution. This collaboration is a testament to our forward-looking vision and commitment to innovation. By leveraging cutting-edge AI technology, we are excited to usher in a new era of entertainment experiences. The "
Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "During the second quarter of 2023, we have seen a significant increase of
We remain focused on growing our live streaming business, making every effort to enhance our user engagement and expand virtual scenarios to optimize our platforms. The investment in DVCC is not only a strategic move, but also an investment in the future of entertainment. As we expand our footprint into the metaverse, we believe this venture aligns perfectly with our growth strategy. We're excited about the potential synergies this collaboration brings to Scienjoy, as we capitalize on the evolving landscape of virtual experiences and interconnected platforms. Specifically, we will continue to invest in the development of our Metaverse platform and meanwhile expand our business on the global market. We have strong faith in the potential for our business growth as well as our value generation capacity."
Second Quarter 2023 Financial Results
Total net revenues decreased to RMB363.2 million (
Cost of revenues decreased to RMB312.7 million (
Gross profit decreased to RMB50.4 million (
Total operating expenses increased to RMB38.9 million (
- Sales and marketing expenses decreased to
RMB257,000 (US ) for the three months ended June 30, 2023 from$35,000 RMB452,000 in the same period of 2022, primarily due to fewer marketing activities. - General and administrative expenses increased to
RMB19.1 million (US2.6 million) for the three months ended June 30, 2023 fromRMB15.4 million in the same period of 2022, primarily caused by increase ofRMB3.9 million in share based compensation - Research and development expenses amounted to
RMB18.1 million (US ) and$2.5 million RMB18.3 million for the three months ended June 30, 2023 and 2022. - Provision for doubtful accounts decreased to
RMB1.4 million (US ) for the three months ended June 30, 2023 from$189,000 RMB3.4 million in the same period of 2022.
Income from operations decreased to RMB11.5 million (
Change in fair value of contingent consideration decreased to a gain of
Change in fair value of warrant liabilities decreased to a gain of RMB2.1 million (
Change in fair value of investment in marketable security increased to a gain of
Investment loss amounted to a loss of
Net income increased to RMB84.9 million (
Net income attributable to the Company's shareholders increased to
Adjusted net income attributable to the Company's shareholders increased to RMB86.8 million (
Basic and diluted net income per ordinary share was
Adjusted basic and diluted net income per ordinary share were both RMB2.15 (
First Half 2023 Financial Results
Total net revenues decreased to RMB667.4 million (
Cost of revenues decreased to RMB576.9 million (
Gross profit decreased to RMB90.5 million (
Total operating expenses increased to RMB74.1 million (
- Sales and marketing expenses decreased to
RMB466,000 (US ) for the six months ended June 30, 2023 from$64,000 RMB1.0 million in the same period of 2022, primarily due to fewer marketing activities. - General and administrative expenses increased to
RMB36.5 million (US ) for the six months ended June 30, 2023 from$5.0 million RMB34.5 million in the same period of 2022, primarily caused by increase ofRMB3.3 million in share based compensation andRMB2.5 million decoration expenses, offset by decrease ofRMB3.8 million in consulting and professional fees. - Research and development expenses amounted to
RMB34.9 million (US ) and$4.8 million RMB35.1 million for the six months ended June 30, 2023 and 2022. - Provision for doubtful accounts decreased to
RMB2.2 million (US ) for the six months ended June 30, 2023 from$308,000 RMB3.1 million in the same period of 2022.
Income from operations decreased to RMB16.4 million (
Change in fair value of contingent consideration decreased to a loss of
Change in fair value of warrant liabilities decreased to a gain of
Change in fair value of investment in marketable security increased to a gain of
Investment loss amounted to a loss of
Net income decreased to RMB79.3 million (
Net income attributable to the Company's shareholders decreased to RMB81.6 million (
Adjusted net income attributable to the Company's shareholders decreased to RMB92.0 million (
Basic and diluted net income per ordinary share was
Adjusted basic and diluted net income per ordinary share was
As of June 30, 2023, the Company had
Business Outlook
The Company expects its total net revenues to be in the range of RMB330 million to RMB360 million in the third quarter of 2023. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change, particularly with respect to the potential impact of COVID-19 on the economy in China and other markets around the world.
Recent Development
On September 6, 2023, the Company announced its strategic investment of
About Scienjoy Holding Corporation
Scienjoy Holdings Corporation (NASDAQ: SJ) 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.
Investor Relations Contacts
Denny Tang
Chief Financial Officer
Scienjoy Holding Corporation
+86-10-64428188
ir@scienjoy.com
Tina Xiao
Ascent Investor Relations
+1 (917) 609-0333
tina.xiao@ascent-ir.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||
As of | As of | |||||||||||
2022 | 2023 | |||||||||||
RMB | RMB | USD | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 175,292 | 202,760 | 27,962 | |||||||||
Accounts receivable, net | 316,657 | 255,101 | 35,179 | |||||||||
Prepaid expenses and other current assets | 115,170 | 95,373 | 13,153 | |||||||||
Amounts due from related parties | 1,115 | 63 | 9 | |||||||||
Investment in marketable security | 40,548 | 105,697 | 14,576 | |||||||||
Total current assets | 648,782 | 658,994 | 90,879 | |||||||||
Property and equipment, net | 2,735 | 2,303 | 318 | |||||||||
Intangible assets, net | 419,055 | 415,597 | 57,313 | |||||||||
Goodwill | 172,781 | 172,781 | 23,828 | |||||||||
Long term investment | 234,176 | 234,588 | 32,351 | |||||||||
Long term deposits and other assets | 953 | 955 | 132 | |||||||||
Right-of-use assets-operating lease | 19,209 | 15,725 | 2,169 | |||||||||
Deferred tax assets | 4,337 | 5,347 | 737 | |||||||||
Total non-current assets | 853,246 | 847,296 | 116,848 | |||||||||
TOTAL ASSETS | 1,502,028 | 1,506,290 | 207,727 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Bank loan | 5,000 | 5,000 | 690 | |||||||||
Accounts payable | 116,251 | 57,236 | 7,892 | |||||||||
Accrued salary and employee benefits | 12,428 | 9,234 | 1,273 | |||||||||
Accrued expenses and other current liabilities | 13,264 | 4,840 | 668 | |||||||||
Contingent consideration – earn-out liability | 4,336 | 6,314 | 871 | |||||||||
Warrant liabilities | 166 | 15 | 2 | |||||||||
Income tax payable | 13,531 | 10,399 | 1,434 | |||||||||
Lease liabilities-operating lease -current | 7,174 | 7,527 | 1,038 | |||||||||
Deferred revenue | 93,383 | 86,384 | 11,913 | |||||||||
Total current liabilities | 265,533 | 186,949 | 25,781 | |||||||||
Non-current liabilities | ||||||||||||
Deferred tax liabilities | 61,236 | 60,527 | 8,347 | |||||||||
Lease liabilities-operating lease -non-current | 12,773 | 8,874 | 1,224 | |||||||||
Total non-current liabilities | 74,009 | 69,401 | 9,571 | |||||||||
TOTAL LIABILITIES | 339,542 | 256,350 | 35,352 | |||||||||
Commitments and contingencies | ||||||||||||
EQUITY | ||||||||||||
Ordinary share, no par value, unlimited Class A ordinary shares and | ||||||||||||
Class A ordinary shares | 396,880 | 418,599 | 57,728 | |||||||||
Class B ordinary shares | 23,896 | 23,896 | 3,295 | |||||||||
Shares to be issued | 33,923 | 20,817 | 2,871 | |||||||||
Treasury stocks | (16,482) | (16,482) | (2,273) | |||||||||
Statutory reserves | 39,208 | 42,949 | 5,923 | |||||||||
Retained earnings | 665,099 | 742,944 | 102,457 | |||||||||
Accumulated other comprehensive income | 18,070 | 17,572 | 2,423 | |||||||||
Total shareholders' equity | 1,160,594 | 1,250,295 | 172,424 | |||||||||
Non-controlling interests | 1,892 | (355) | (49) | |||||||||
Total equity | 1,162,486 | 1,249,940 | 172,375 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,502,028 | 1,506,290 | 207,727 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | 2023 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Livestreaming - consumable | 497,330 | 349,629 | 48,216 | 940,768 | 640,740 | 88,362 | ||||||||||||||||||
Livestreaming - time based | 6,917 | 6,379 | 880 | 14,382 | 11,890 | 1,640 | ||||||||||||||||||
Technical services and others | 2,281 | 7,143 | 985 | 14,823 | 14,812 | 2,042 | ||||||||||||||||||
Total revenues | 506,528 | 363,151 | 50,081 | 969,973 | 667,442 | 92,044 | ||||||||||||||||||
Cost of revenues | (413,376) | (312,718) | (43,126) | (762,345) | (576,913) | (79,560) | ||||||||||||||||||
Gross profit | 93,152 | 50,433 | 6,955 | 207,628 | 90,529 | 12,484 | ||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Sales and marketing expenses | (452) | (257) | (35) | (1,036) | (466) | (64) | ||||||||||||||||||
General and administrative | (15,406) | (19,148) | (2,641) | (34,514) | (36,457) | (5,028) | ||||||||||||||||||
Provision for doubtful accounts | (3,353) | (1,369) | (189) | (3,094) | (2,230) | (308) | ||||||||||||||||||
Research and development | (18,313) | (18,135) | (2,501) | (35,128) | (34,945) | (4,819) | ||||||||||||||||||
Total operating expenses | (37,524) | (38,909) | (5,366) | (73,772) | (74,098) | (10,219) | ||||||||||||||||||
Income from operations | 55,628 | 11,524 | 1,589 | 133,856 | 16,431 | 2,265 | ||||||||||||||||||
Change in fair value of | 6,050 | 2,540 | 350 | 10,790 | (1,978) | (273) | ||||||||||||||||||
Change in fair value of warrants | 3,883 | 2,085 | 288 | 8,382 | 153 | 21 | ||||||||||||||||||
Change in fair value of | 406 | 63,570 | 8,767 | 867 | 65,148 | 8,984 | ||||||||||||||||||
Investment income (loss) | 346 | (3,870) | (534) | 597 | (4,088) | (564) | ||||||||||||||||||
Interest income | 755 | 745 | 103 | 1,251 | 1,182 | 163 | ||||||||||||||||||
Interest expense | (13) | (54) | (7) | (13) | (87) | (12) | ||||||||||||||||||
Other income, net | 26 | 354 | 49 | 86 | 525 | 72 | ||||||||||||||||||
Foreign exchange gain (loss), | (513) | 1,454 | 201 | (453) | 1,421 | 196 | ||||||||||||||||||
Income before income taxes | 66,568 | 78,348 | 10,806 | 155,363 | 78,707 | 10,852 | ||||||||||||||||||
Income tax benefits (expenses) | 807 | 6,526 | 900 | (4,762) | 632 | 87 | ||||||||||||||||||
Net income | 67,375 | 84,874 | 11,706 | 150,601 | 79,339 | 10,939 | ||||||||||||||||||
Less: net income (loss) | (299) | 138 | 19 | (299) | (2,247) | (310) | ||||||||||||||||||
Net income attributable to the | 67,674 | 84,736 | 11,687 | 150,900 | 81,586 | 11,249 | ||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Other comprehensive income | 602 | (511) | (70) | 566 | (498) | (69) | ||||||||||||||||||
Comprehensive income | 67,977 | 84,363 | 11,636 | 151,167 | 78,841 | 10,870 | ||||||||||||||||||
Less: comprehensive income | (299) | 138 | 19 | (299) | (2,247) | (310) | ||||||||||||||||||
Comprehensive income | 68,276 | 84,225 | 11,617 | 151,466 | 81,088 | 11,180 | ||||||||||||||||||
Weighted average number of | ||||||||||||||||||||||||
Basic | 38,602,936 | 40,447,415 | 40,447,415 | 37,122,362 | 40,447,415 | 40,447,415 | ||||||||||||||||||
Diluted | 38,602,936 | 40,771,279 | 40,771,279 | 37,122,362 | 40,660,023 | 40,660,023 | ||||||||||||||||||
Earnings per share | ||||||||||||||||||||||||
Basic | 1.75 | 2.09 | 0.29 | 4.06 | 2.02 | 0.28 | ||||||||||||||||||
Diluted | 1.75 | 2.08 | 0.29 | 4.06 | 2.01 | 0.28 |
Reconciliations of Non-GAAP Results | ||||||||||||||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | 2023 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Net income attributable to the | 67,674 | 84,736 | 11,687 | 150,900 | 81,586 | 11,249 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Change in fair value of | 6,050 | 2,540 | 350 | 10,790 | (1,978) | (273) | ||||||||||||||||||
Change in fair value of warrants | 3,883 | 2,085 | 288 | 8,382 | 153 | 21 | ||||||||||||||||||
Share based compensation | (3,711) | (6,720) | (927) | (7,437) | (8,613) | (1,188) | ||||||||||||||||||
Adjusted net income | 61,452 | 86,831 | 11,976 | 139,165 | 92,024 | 12,689 | ||||||||||||||||||
Adjusted net income | ||||||||||||||||||||||||
Basic | 1.59 | 2.15 | 0.30 | 3.75 | 2.28 | 0.31 | ||||||||||||||||||
Diluted | 1.59 | 2.13 | 0.29 | 3.75 | 2.26 | 0.31 |
"Adjusted net income attributable to the Company's shareholders" is defined as net income 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" above.
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SOURCE Scienjoy Holding Corporation
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