Moatable Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Moatable Inc. (OTC: MTBLY) reported strong financial results for Q2 2024, showcasing significant improvements in revenue and profitability. Key highlights include:

- Revenue increased 19% year-over-year to $15.3 million in Q2 2024
- Gross profit rose 15% to $11.8 million
- Loss from operations improved 83% to $0.5 million
- Adjusted EBITDA turned positive, reaching $0.8 million, a 146% improvement

The company's CFO, Scott Stone, expressed satisfaction with the steady revenue growth and emphasized the significant improvement in profitability. Moatable's cash position remained stable at $39.2 million as of Q2 2024 end.

Positive

• Revenue increased 19% year-over-year to $15.3 million in Q2 2024
• Gross profit rose 15% to $11.8 million in Q2 2024
• Adjusted EBITDA turned positive, reaching $0.8 million, a 146% improvement from Q2 2023
• Loss from operations improved 83% to $0.5 million in Q2 2024
• Cash position remained stable at $39.2 million as of Q2 2024 end

Negative

• Company still reported an operating loss of $0.5 million in Q2 2024

PHOENIX, Aug. 14, 2024 /PRNewswire/ -- Moatable, Inc. (OTC: MTBLY) ("Moatable" or the "Company"), a leading US-based SaaS company, today reported its second quarter 2024 financial results.

Second Quarter 2024 Financial Highlights

• Revenue increased 19% over Q2 2023 to $15.3 million in Q2 2024; Revenue for the six months ended June 30, 2024 increased 17%, to $29.3 million, compared to the same period last year.
• Gross profit increased 15% over Q2 2023 to $11.8 million; Gross profit for the six months ended June 30, 2024 increased 14% to $22.5 million, compared to the same period last year.
• Loss from operations improved 83% from a loss of $2.8 million in Q2 2023 to a loss of $0.5 million in Q2 2024; loss from operations for the six months ended June 30, 2024 improved 74% to $1.6 million compared to $6.3 million in the same period last year.
• Adjusted EBITDA^* improved 146% from a loss of $1.8 million in Q2 2023 to a profit of $0.8 million in Q2 2024; adjusted EBITDA for the six months ended June 30, 2024 improved 126% to a profit of $1.1 million compared to a loss of $4.3 million in the same period last year.
• Total cash & cash equivalents and restricted cash of $39.2 million as of the end of Q2 2024 compared to $39.0 million as of the end of 2023.

"We are very pleased with the continued steady revenue growth over the past six quarters and are particularly encouraged by our profitability, on an Adjusted EBITDA basis, in the first half of 2024, especially the second quarter. Our Adjusted EBITDA of $836 thousand in Q2 2024 shows significant improvement over the $1.8 million loss in the same quarter of 2023, as we continue to rationalize our cost structure and maintain our path to profitability. The profitability continues the trend in Q1 2024 when we had an Adjusted EBITDA of $251 thousand," said Scott Stone, the chief financial officer of Moatable.

*  Adjusted EBITDA is a non-GAAP measure. We define adjusted EBITDA as loss from operations excluding share-based compensation expenses, depreciation and amortization expenses, impairment of intangibles, and certain other non-recurring expenses. See the table "Reconciliation of Non-GAAP Financial Measure to the Comparable GAAP Financial Measure" below for details.

About Moatable Inc.

Moatable, Inc. (OTC Pink: MTBLY) operates two US-based SaaS businesses including Lofty and Trucker Path. Moatable's American depositary shares, each of which currently represents forty-five Class A ordinary shares, trade on OTC Pink open market under the symbol "MTBLY". For more news and information on Moatable, please visit Moatable.com.

Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. 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 Moatable's beliefs and expectations, including statements on making investments and operating businesses that generate long-term returns for investors, and expectations for future growth and innovation are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Moatable's goals and strategies; Moatable's future business development, financial condition and results of operations; Moatable's expectations regarding demand for and market acceptance of its services; Moatable's plans to enhance user experience, infrastructure and service offerings. Further information regarding these and other risks is included in our recent annual and quarterly reports on Form 10-K and Form 10-Q and other documents filed with the SEC. All information provided in this press release is as of the date of this press release, and Moatable does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Non-GAAP Financial Information

This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("GAAP"), including Adjusted EBITDA.  We define Adjusted EBITDA as loss from operations excluding equity-based compensation, depreciation and amortization, impairment of intangibles, and certain other non-recurring expenses. See "Reconciliation of Non-GAAP Financial Measure to the Comparable GAAP Financial Measure" below.

We believe that these non-GAAP financial measures are provided to enhance the reader's understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company's performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies.

For more information, please contact:
Investor Relations Department
Moatable, Inc.
Email: ir@moatable.com

 

 

 

MOATABLE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 and 2024 (In thousands of US dollars)
		For the three months ended June 30,						For the six months ended June 30,
		2023			2024				2023			2024
Revenues:
SaaS revenue		$	12,851		$	15,249		$	24,931		$	29,231
Other services			17			40			86			81
Total revenues			12,868			15,289			25,017			29,312
Cost of revenues:
SaaS business			2,606			3,464			5,261			6,744
Other services			15			36			83			72
Total cost of revenues			2,621			3,500			5,344			6,816
Gross profit			10,247			11,789			19,673			22,496
Operating expenses
Selling and marketing			4,639			4,576			9,535			8,363
Research and development			4,911			4,555			9,813			9,013
General and administrative			3,528			3,136			6,575			6,534
Impairment of intangible assets			—			—			—			207
Total operating expenses			13,078			12,267			25,923			24,117
Loss from operations		$	(2,831)		$	(478)		$	(6,250)		$	(1,621)

 

 

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO THE COMPARABLE GAAP FINANCIAL MEASURE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 and 2024 (In thousands of US dollars, except share data and per share data)
		For the three months ended June 30,						For the six months ended June 30,
		2023			2024				2023			2024
Loss from operations		$	(2,831)		$	(478)		$	(6,250)		$	(1,621)
Plus (minus)
Share-based compensation expense			713			653			1,478			1,325
Depreciation and amortization expenses			289			192			518			425
Impairment of intangibles			—			—			—			207
Correction of prior period error			—			(283)			—			(833)
Provision for insurance reimbursements    receivable			—			737			—			737
Arbitration fees			—			15			—			847
Adjusted EBITDA			(1,829)			836			(4,254)			1,087

 

 

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SOURCE Moatable, Inc.

FAQ

What was Moatable's (MTBLY) revenue growth in Q2 2024?

Moatable (MTBLY) reported a 19% year-over-year revenue growth, reaching $15.3 million in Q2 2024.

Did Moatable (MTBLY) achieve profitability in Q2 2024?

While Moatable (MTBLY) still reported an operating loss of $0.5 million, it achieved profitability on an Adjusted EBITDA basis, with $0.8 million in Q2 2024.

How much did Moatable's (MTBLY) Adjusted EBITDA improve in Q2 2024?

Moatable's (MTBLY) Adjusted EBITDA improved by 146%, from a loss of $1.8 million in Q2 2023 to a profit of $0.8 million in Q2 2024.

What was Moatable's (MTBLY) cash position at the end of Q2 2024?

Moatable (MTBLY) reported a total cash & cash equivalents and restricted cash of $39.2 million as of the end of Q2 2024.