iHuman Inc. Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
Fourth Quarter 2023 Highlights
- Revenues were
RMB250.4 million (US$35.3 million ), compared withRMB260.7 million in the same period last year. - Gross profit was
RMB178.2 million (US$25.1 million ), compared withRMB181.0 million in the same period last year. - Operating income was
RMB21.9 million (US$3.1 million ), compared withRMB39.1 million in the same period last year. - Net income was
RMB33.3 million (US$4.7 million ), compared withRMB35.4 million in the same period last year. - Average total MAUs[1] reached a record-high of 25.38 million, a year-over-year increase of 14.2%.
Fiscal Year 2023 Highlights
- Revenues were
RMB1,018.1 million (US$143.4 million ), compared withRMB985.5 million in fiscal year 2022. - Gross profit was
RMB721.3 million (US$101.6 million ), compared withRMB691.2 million in fiscal year 2022. - Operating income was
RMB159.9 million (US$22.5 million ), compared withRMB111.6 million in fiscal year 2022. - Net income was
RMB180.9 million (US$25.5 million ), compared withRMB109.8 million in fiscal year 2022. - Average total MAUs were 23.04 million, a year-over-year increase of 16.0%.
[1] "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. |
Dr. Peng Dai, Director and Chief Executive Officer of iHuman, commented, "As we look back on 2023, I am truly inspired by the accomplishments that we have achieved, especially considering the decline in
"We are also thrilled to announce the acquisition of intellectual property assets related to "Cosmicrew" from Kunpeng, an animation production studio within the
"As we continue to progress on our strategic initiatives, we remain fully dedicated to strengthening our core competencies through ongoing product enhancement. We have been enriching the content and functionality of our app products to elevate the digital experience of our users and have made further strides in integrating our online and offline offerings to create a more immersive and holistic journey for users. For example, we rolled out both multi-leveled physical books and a specially developed smart reading pen that complement our leveled English reading app, iHuman Fantastic Friends. This combination allows kids to explore captivating original English stories tailored to their proficiency level in physical and digital formats, offering them a flexible and simple reading experience while enhancing their understanding and engagement with the content."
"In 2023, we further strengthened our comprehensive product suite, significantly expanded our international presence, and earned increased market recognition with several prestigious industry accolades. We achieved all these milestones despite a highly volatile and challenging macroeconomic climate, which I believe is a testament to the caliber of our products, the effectiveness of our strategies, and the resilience of our team in overcoming diverse economic challenges. As we enter 2024, I am filled with anticipation for the continued success that lies ahead."
Ms.
Fourth Quarter 2023 Unaudited Financial Results
Revenues
Revenues were
Average total MAUs for the quarter were 25.38 million, an increase of 14.2% year-over-year from 22.22 million in the same period last year. The number of paying users[2] was 1.45 million.
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
Net Income
Net income was
Basic and diluted net income per ADS were
Deferred R evenue and Customer Advances
Deferred revenue and customer advances were
Cash and Cash Equivalents
Cash and cash equivalents were
Fiscal Year 2023 Unaudited Financial Results
Revenues
Revenues were
Average total MAUs were 23.04 million, an increase of 16.0% year-over-year from 19.86 million in fiscal year 2022. The number of paying users for the year was 4.27 million.
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
Net Income
Net income was
Basic and diluted net income per ADS were
Special Cash Dividend
To deliver return of capital to shareholders, the Company's board of directors (the "Board") approved a special cash dividend of
Acquisition of IP Assets
The Company, through one of its consolidated affiliated entities, entered into an asset transfer agreement (the "Asset Transfer Agreement") with Kunpeng, an animation production studio within the Perfect World Group (the "Transferors"). Pursuant to the Asset Transfer Agreement, the Company will acquire intellectual property assets related to "Cosmicrew" from Kunpeng, including copyrights and trademarks, among others, for a total consideration of
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
For more information about iHuman, please visit https://ir.ihuman.com/.
For investor and media enquiries, please contact:
Mr. Justin Zhang
Investor Relations Director
Phone: +86 10 5780-6606
E-mail: ir@ihuman.com
Christensen
In
Ms.
Phone: +86-10-5900-1548
E-mail: alice.li@christensencomms.com
In the US
Ms.
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) |
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2022 |
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2023 |
|
2023 |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
1,049,999 |
|
1,213,767 |
|
170,956 |
Accounts receivable, net |
79,614 |
|
60,832 |
|
8,568 |
Inventories, net |
19,127 |
|
16,518 |
|
2,327 |
Amounts due from related parties |
2,286 |
|
1,810 |
|
255 |
Prepayments and other current assets |
102,765 |
|
89,511 |
|
12,607 |
Total current assets |
1,253,791 |
|
1,382,438 |
|
194,713 |
Non-current assets |
|
|
|
|
|
Property and equipment, net |
9,205 |
|
6,169 |
|
869 |
Intangible assets, net |
24,872 |
|
23,245 |
|
3,274 |
Operating lease right-of-use assets |
12,782 |
|
3,648 |
|
514 |
Long-term investment |
26,333 |
|
26,333 |
|
3,709 |
Other non-current assets |
6,416 |
|
8,662 |
|
1,218 |
Total non-current assets |
79,608 |
|
68,057 |
|
9,584 |
Total assets |
1,333,399 |
|
1,450,495 |
|
204,297 |
|
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|
|
LIABILITIES |
|
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|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
24,206 |
|
22,139 |
|
3,118 |
Deferred revenue and customer advances |
379,063 |
|
318,587 |
|
44,872 |
Amounts due to related parties |
6,944 |
|
4,428 |
|
624 |
Accrued expenses and other current liabilities |
144,717 |
|
143,677 |
|
20,236 |
Current operating lease liabilities |
6,123 |
|
1,927 |
|
271 |
Total current liabilities |
561,053 |
|
490,758 |
|
69,121 |
Non-current liabilities |
|
|
|
|
|
Non-current operating lease liabilities |
2,894 |
|
1,933 |
|
272 |
Total non-current liabilities |
2,894 |
|
1,933 |
|
272 |
Total liabilities |
563,947 |
|
492,691 |
|
69,393 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Ordinary shares (par value of |
185 |
|
185 |
|
26 |
Additional paid-in capital |
1,079,099 |
|
1,088,628 |
|
153,330 |
|
(7,123) |
|
(16,665) |
|
(2,347) |
Statutory reserves |
7,967 |
|
8,164 |
|
1,150 |
Accumulated other comprehensive income |
10,497 |
|
17,955 |
|
2,529 |
Accumulated deficit |
(321,173) |
|
(140,463) |
|
(19,784) |
Total shareholders' equity |
769,452 |
|
957,804 |
|
134,904 |
Total liabilities and shareholders' equity |
1,333,399 |
|
1,450,495 |
|
204,297 |
iHuman Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
except for number of shares, ADSs, per share and per ADS data) |
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For the three months ended |
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For the year ended |
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|
2022 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
260,704 |
|
261,496 |
|
250,447 |
|
35,275 |
|
985,517 |
|
1,018,139 |
|
143,402 |
Cost of revenues |
(79,707) |
|
(74,871) |
|
(72,201) |
|
(10,169) |
|
(294,343) |
|
(296,868) |
|
(41,813) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
180,997 |
|
186,625 |
|
178,246 |
|
25,106 |
|
691,174 |
|
721,271 |
|
101,589 |
|
|
|
|
|
|
|
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|
|
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Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
(66,796) |
|
(66,168) |
|
(66,293) |
|
(9,337) |
|
(313,481) |
|
(257,546) |
|
(36,275) |
Sales and marketing expenses |
(45,811) |
|
(53,994) |
|
(64,511) |
|
(9,086) |
|
(156,916) |
|
(199,504) |
|
(28,100) |
General and administrative expenses |
(29,253) |
|
(26,070) |
|
(25,547) |
|
(3,598) |
|
(109,195) |
|
(104,334) |
|
(14,695) |
Total operating expenses |
(141,860) |
|
(146,232) |
|
(156,351) |
|
(22,021) |
|
(579,592) |
|
(561,384) |
|
(79,070) |
Operating income |
39,137 |
|
40,393 |
|
21,895 |
|
3,085 |
|
111,582 |
|
159,887 |
|
22,519 |
Other income, net |
5,315 |
|
19,507 |
|
8,965 |
|
1,263 |
|
21,190 |
|
42,686 |
|
6,012 |
Income before income taxes |
44,452 |
|
59,900 |
|
30,860 |
|
4,348 |
|
132,772 |
|
202,573 |
|
28,531 |
Income tax (expenses) / benefits |
(9,019) |
|
(7,984) |
|
2,411 |
|
340 |
|
(22,953) |
|
(21,666) |
|
(3,052) |
Net income |
35,433 |
|
51,916 |
|
33,271 |
|
4,688 |
|
109,819 |
|
180,907 |
|
25,479 |
|
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Net income per ADS: |
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|
- Basic |
0.67 |
|
0.98 |
|
0.63 |
|
0.09 |
|
2.06 |
|
3.43 |
|
0.48 |
- Diluted |
0.66 |
|
0.95 |
|
0.61 |
|
0.09 |
|
2.03 |
|
3.30 |
|
0.46 |
|
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Weighted average number of ADSs: |
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|
- Basic |
53,205,925 |
|
52,747,426 |
|
52,740,067 |
|
52,740,067 |
|
53,307,044 |
|
52,810,587 |
|
52,810,587 |
- Diluted |
54,033,560 |
|
54,772,536 |
|
54,753,503 |
|
54,753,503 |
|
54,040,908 |
|
54,753,025 |
|
54,753,025 |
|
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|
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Total share-based compensation expenses included in: |
|
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|
|
|
|
|
|
|
|
|
Cost of revenues |
168 |
|
67 |
|
64 |
|
9 |
|
348 |
|
299 |
|
42 |
Research and development expenses |
2,564 |
|
1,160 |
|
1,115 |
|
157 |
|
6,377 |
|
4,055 |
|
571 |
Sales and marketing expenses |
559 |
|
147 |
|
122 |
|
17 |
|
1,599 |
|
707 |
|
100 |
General and administrative expenses |
1,757 |
|
1,105 |
|
817 |
|
115 |
|
4,720 |
|
4,374 |
|
616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
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For the three months ended |
|
For the year ended |
||||||||||
|
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|
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|
|
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|
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|
|
2022 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
39,137 |
|
40,393 |
|
21,895 |
|
3,085 |
|
111,582 |
|
159,887 |
|
22,519 |
Share-based compensation expenses |
5,048 |
|
2,479 |
|
2,118 |
|
298 |
|
13,044 |
|
9,435 |
|
1,329 |
Adjusted operating income |
44,185 |
|
42,872 |
|
24,013 |
|
3,383 |
|
124,626 |
|
169,322 |
|
23,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
35,433 |
|
51,916 |
|
33,271 |
|
4,688 |
|
109,819 |
|
180,907 |
|
25,479 |
Share-based compensation expenses |
5,048 |
|
2,479 |
|
2,118 |
|
298 |
|
13,044 |
|
9,435 |
|
1,329 |
Adjusted net income |
40,481 |
|
54,395 |
|
35,389 |
|
4,986 |
|
122,863 |
|
190,342 |
|
26,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per ADS |
0.66 |
|
0.95 |
|
0.61 |
|
0.09 |
|
2.03 |
|
3.30 |
|
0.46 |
Impact of non-GAAP adjustments |
0.09 |
|
0.04 |
|
0.04 |
|
0.00 |
|
0.24 |
|
0.18 |
|
0.03 |
Adjusted diluted net income per ADS |
0.75 |
|
0.99 |
|
0.65 |
|
0.09 |
|
2.27 |
|
3.48 |
|
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ADSs – diluted |
54,033,560 |
|
54,772,536 |
|
54,753,503 |
|
54,753,503 |
|
54,040,908 |
|
54,753,025 |
|
54,753,025 |
Weighted average number of ADSs – adjusted |
54,033,560 |
|
54,772,536 |
|
54,753,503 |
|
54,753,503 |
|
54,040,908 |
|
54,753,025 |
|
54,753,025 |
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