iHuman (IH) Q2 2024 earnings summary

Executive summary

• Revenues for Q2 2024 were RMB215.1 million (US$29.6 million), down 10.7% year-over-year due to more conservative consumer spending.

• Net income was RMB24.7 million (US$3.4 million), compared to RMB42.1 million in Q2 2023.

• Achieved tenth consecutive quarter of profitability and ended the quarter with RMB1.13 billion in cash, cash equivalents, and time deposits.

• Average total MAUs reached 24.57 million, up 20.8% year-over-year, driven by effective user acquisition.

• Expanded product lineup domestically and internationally, including new smart devices and content themes.

Financial highlights

• Gross profit was RMB151.7 million (US$20.9 million), down from RMB170.8 million a year ago.

• Gross margin was 70.5%, compared to 70.9% in Q2 2023.

• Operating income was RMB18.8 million (US$2.6 million), down from RMB40.9 million year-over-year.

• Basic and diluted net income per ADS were RMB0.47 and RMB0.45, respectively, versus RMB0.80 and RMB0.77 last year.

• Adjusted net income for the quarter was RMB25.5 million (US$3.5 million), with adjusted diluted net income per ADS at RMB0.47 (US$0.06).

Outlook and guidance

• Plans to continue investing in product innovation and global brand recognition in the second half of 2024.

• Strategic focus on expanding market coverage through partnerships with device manufacturers and pre-installation of apps.