iHuman (IH) Q4 2024 earnings summary

Executive summary

• Revenues for Q4 2024 were RMB232.7 million, down 7.1% year-over-year, and full-year revenues were RMB922.2 million, down 9.4% from 2023, mainly due to a declining newborn population and conservative consumer spending.

• Net income for Q4 2024 was RMB26.5 million, compared to RMB33.3 million in Q4 2023; full-year net income was RMB98.6 million, down from RMB180.9 million in 2023.

• Average total MAUs increased to 25.78 million in Q4 and 26.47 million for the year, reflecting effective user acquisition and overseas expansion.

• The company maintained profitability for the 12th consecutive quarter and third consecutive year since IPO.

Financial highlights

• Q4 gross profit was RMB156.4 million, down 12.2% year-over-year; gross margin declined to 67.2% from 71.2%.

• Full-year gross profit was RMB640.2 million, down 11.2% year-over-year; gross margin was 69.4%, compared to 70.8% in 2023.

• Q4 operating income was RMB14.9 million, down from RMB21.9 million in Q4 2023; full-year operating income was RMB71.9 million, down from RMB159.9 million in 2023.

• Basic and diluted net income per ADS for Q4 were RMB0.51 and RMB0.49, respectively; for the year, RMB1.88 and RMB1.82.

• Deferred revenue and customer advances as of year-end were RMB283.3 million, down from RMB318.6 million a year earlier.

• Cash, cash equivalents, and short-term investments totaled RMB1,168.7 million at year-end.

Outlook and guidance

• Management expects continued growth and innovation in 2025, driven by technological excellence and creative content.

• The company remains focused on product innovation and translating strategic investments into lasting value.