iHuman (IH) Q3 2024 earnings summary

Executive summary

• Revenues for Q3 2024 were RMB239.4 million (US$34.1 million), down 8.4% year-over-year due to more conservative consumer spending.

• Net income reached RMB25.1 million (US$3.6 million), marking the eleventh consecutive quarter of profitability, though down from RMB51.9 million a year ago.

• Average total MAUs hit a record 29.12 million, up 14.8% year-over-year, reflecting strong user demand and effective product strategy.

• Product innovation included new app features, expanded content, and a new B2B experience center for institutional clients.

Financial highlights

• Gross profit was RMB163.9 million (US$23.4 million), down from RMB186.6 million year-over-year.

• Gross margin declined to 68.4% from 71.4% due to increased focus on offline components.

• Operating income was RMB20.7 million (US$2.9 million), down from RMB40.4 million year-over-year.

• Basic and diluted net income per ADS were RMB0.48 (US$0.07) and RMB0.47 (US$0.07), respectively, compared to RMB0.98 and RMB0.95 last year.

• Cash, cash equivalents, and short-term investments totaled RMB1,168.6 million (US$166.5 million) as of September 30, 2024.

Outlook and guidance

• Management remains focused on enhancing the product portfolio, expanding internationally, and promoting sustainable growth.

• Continued investment in innovation and B2B expansion is expected to reinforce industry leadership.