Scienjoy Holding Corporation Reports Fiscal Year 2024 Financial Results
Rhea-AI Summary
Scienjoy Holding (NASDAQ: SJ) reported its fiscal year 2024 financial results, showing significant improvements in profitability despite revenue challenges. Total revenues decreased to RMB1,363.4 million (US$186.8 million) from RMB1,464.9 million in 2023, with paying users declining to 494,652 from 557,692.
Key highlights include:
- Gross profit increased 27.4% to RMB245.4 million
- Income from operations surged 78.5% to RMB40.7 million
- Net income reached RMB26.7 million, a significant turnaround from RMB35.0 million loss in 2023
- Cash and cash equivalents grew to RMB252.5 million
The company expanded its global presence through its Dubai hub, targeting the Middle East and North Africa region. Management emphasized focus on AIGC technologies and Metaverse development while maintaining operational efficiency in a competitive market.
Positive
- Net income improved by RMB61.7 million YoY, turning from loss to profit
- Operating income increased 78.5% to RMB40.7 million
- Gross margin expanded to 18.0% from 13.2%
- Cash position strengthened by RMB47.1 million to RMB252.5 million
- Higher average revenue per paying user (ARPPU)
Negative
- Total revenues declined 6.9% YoY to RMB1,363.4 million
- Paying users decreased by 11.3% to 494,652
- Sales and marketing expenses surged 420.2%
- Research and development costs increased 20.4%
- One-time write-off of RMB30.0 million investment buyback receivable
News Market Reaction – SJ
On the day this news was published, SJ gained 12.50%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Income from Operations up 78.5% Year Over Year
Net Income Increased by Approximately RMB60 million Year Over Year
Fiscal Year 2024 Operating and Financial Summaries
- Total revenues decreased to
RMB1,363.4 million (US ) for the year ended December 31, 2024 from$186.8 million RMB1,464.9 million for the year ended December 31, 2023. - Gross profit increased by
27.4% toRMB245.4 million (US ) for the year ended December 31, 2024 from$33.6 million RMB192.7 million for the year ended December 31, 2023. - Income from operations increased by
78.5% toRMB40.7 million (US ) for the year ended December 31, 2024 from$5.6 million RMB22.8 million for the year ended December 31, 2023. - Net income was
RMB26.7 million (US ) for the year ended December 31, 2024, increased by$3.7 million RMB61.7 million as compared to a net loss ofRMB35.0 million for the year ended December 31, 2023. - Net income attributable to the Company's shareholders was
RMB39.7 million (US ) for the year ended December 31, 2024, increased by$5.4 million RMB70.5 million , as compared with a net loss attributable to the Company's shareholders ofRMB30.8 million for the year ended December 31, 2023. - Adjusted net income attributable to the Company's shareholders was
RMB50.3 million (US ) for the year ended December 31, 2024, increased by$6.9 million RMB62.0 million as compared with a net loss adjusted attributable to the Company's shareholders ofRMB11.7 million for the year ended December 31, 2023. - As of December 31, 2024, the Company had cash and cash equivalent balance of
RMB252.5 million (US ), which represented an increase of$34.6 million RMB47.1 million fromRMB205.5 million as of December 31, 2023.
Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "In 2024, Scienjoy delivered a strong performance amid intense competition and complex macroeconomic conditions. We are proud to report significant growth in both gross profit and income from operations—rising by
Looking ahead, we are focusing on expanding global presence while investing further in cutting-edge Artificial Intelligence Generated Content, or AIGC, technologies and integrating them across our product ecosystem. We believe these efforts will pave the way for sustained growth and enduring success."
Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "We are pleased to share our strong financial performance for fiscal year 2024, which underscores the effectiveness of our strategic execution and disciplined financial management. Our income from operations significantly surged by
Fiscal Year 2024 Financial Results
Total revenues decreased to
Cost of revenues decreased to
Gross profit increased by
Total operating expenses increased by
- Sales and marketing expenses increased by
420.2% toRMB7.0 million (US ) for the year ended December 31, 2024 from$1.0 million RMB1.4 million for the year ended December 31, 2023, primarily attributable to sales and marketing activities in our new subsidiaries inDubai . The Company is taking initiative inDubai market, aiming at global expansion starting from the dynamicMiddle East andNorth Africa ("MENA") region. - General and administrative expenses increased by1.
4% toRMB76.6 million (US ) for the year ended December 31, 2024 from$10.5 million RMB75.6 million for the year ended December 31, 2023. The increase was primarily due to an increase ofRMB5.9 million in employee salary and welfare, offset by a decrease ofRMB2.5 million in office renovation expenses and a decrease ofRMB2.4 million in share-based compensation. - Research and development expenses increased by
20.4% toRMB90.5 million (US ) for the year ended December 31, 2024 from$12.4 million RMB75.1 million for the year ended December 31, 2023, due to an increase ofRMB14.7 million in technical service fee and an increase ofRMB1.1 million in employee salary and welfare. - Provision for credit losses increased by
71.2% toRMB30.6 million (US ) for the year ended December 31, 2024 from$4.2 million RMB17.9 million for the year ended December 31, 2023, primary due to a one-time write-off of aRMB30.0 million investment buyback receivable.
Income from operations increased by
Change in fair value of contingent consideration was nil for the year ended December 31, 2024, as compared to a loss of
Change in fair value of warrants liability was nil for the year ended December 31, 2024, as compared to a gain of
Change in fair value of investment in marketable security was a gain of
Investment loss decreased to
Impairment of long-term investments decreased to
Net income was
Net income attributable to the Company's shareholders was
Adjusted net income attributable to the Company's shareholders was
Basic and diluted net income attributable to the Company's shareholders per ordinary share was
Adjusted basic and diluted net income attributable to the Company's shareholders per ordinary share was
As of December 31, 2024, the Company had cash and cash equivalent balance of
About Scienjoy Holding Corporation
Scienjoy is a pioneering Nasdaq-listed interactive entertainment leader. Driven by the vision of shaping a metaverse lifestyle, Scienjoy leverages AI-powered technology to create immersive experiences that resonate with global audiences, fostering meaningful connections and redefining entertainment. For more information, please visit http://ir.scienjoy.com/.
Use of Non-GAAP Financial Measures
Adjusted net income is calculated as net income adjusted for change in fair value of contingent consideration, change in fair value of warrant liability and share based compensation. Adjusted basic and diluted net income per ordinary share is non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission ("SEC") from time to time. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
For investor and media inquiries, please contact:
Investor Relations Contacts
Denny Tang
Chief Financial Officer
Scienjoy Holding Corporation
+86-10-64428188
ir@scienjoy.com
Ascent Investor Relations LLC
Tina Xiao
+1-646-932-7242
investors@ascent-ir.com
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||
As of December 31, | ||||||||||||
2023 | 2024 | 2024 | ||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 205,465 | 252,540 | 34,598 | |||||||||
Accounts receivable, net | 260,979 | 226,060 | 30,970 | |||||||||
Prepaid expenses and other current assets | 78,653 | 28,415 | 3,893 | |||||||||
Amounts due from related parties | 355 | |||||||||||
Investment in marketable security | 31,525 | 37,629 | 5,155 | |||||||||
Total current assets | 576,977 | 544,644 | 74,616 | |||||||||
Non-current assets | ||||||||||||
Property and equipment, net | 2,193 | 1,981 | 271 | |||||||||
Intangible assets, net | 412,154 | 405,256 | 55,520 | |||||||||
Goodwill | 182,467 | 182,661 | 25,024 | |||||||||
Long term investments | 254,411 | 257,387 | 35,262 | |||||||||
Long term deposits and other assets | 726 | 906 | 124 | |||||||||
Right-of-use assets-operating lease | 12,157 | 4,845 | 664 | |||||||||
Deferred tax assets | 7,379 | 7,505 | 1,028 | |||||||||
Total non-current assets | 871,487 | 860,541 | 117,893 | |||||||||
TOTAL ASSETS | 1,448,464 | 1,405,185 | 192,509 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | 73,183 | 36,015 | 4,934 | |||||||||
Accrued salary and employee benefits | 14,763 | 22,346 | 3,061 | |||||||||
Accrued expenses and other current liabilities | 27,610 | 6,840 | 937 | |||||||||
Income tax payable | 13,005 | 11,284 | 1,546 | |||||||||
Lease liabilities-operating lease -current | 7,974 | 4,098 | 561 | |||||||||
Deferred revenue | 97,586 | 80,186 | 10,985 | |||||||||
Total current liabilities | 234,121 | 160,769 | 22,024 | |||||||||
Non-current liabilities | ||||||||||||
Deferred tax liabilities | 59,818 | 58,400 | 8,001 | |||||||||
Lease liabilities-operating lease -non-current | 4,798 | 700 | 96 | |||||||||
Total non-current liabilities | 64,616 | 59,100 | 8,097 | |||||||||
TOTAL LIABILITIES | 298,737 | 219,869 | 30,121 | |||||||||
Commitments and contingencies | ||||||||||||
EQUITY | ||||||||||||
Ordinary share, no par value, unlimited Class A | ||||||||||||
Class A ordinary shares | 423,623 | 444,162 | 60,850 | |||||||||
Class B ordinary shares | 23,896 | 23,896 | 3,274 | |||||||||
Shares to be issued | 30,777 | 20,817 | 2,852 | |||||||||
Treasury stocks | (19,216) | (19,952) | (2,733) | |||||||||
Statutory reserves | 44,698 | 50,705 | 6,947 | |||||||||
Retained earnings | 628,821 | 662,499 | 90,762 | |||||||||
Accumulated other comprehensive income | 17,965 | 16,967 | 2,324 | |||||||||
Total shareholders' equity | 1,150,564 | 1,199,094 | 164,276 | |||||||||
Non-controlling interests | (837) | (13,778) | (1,888) | |||||||||
Total equity | 1,149,727 | 1,185,316 | 162,388 | |||||||||
TOTAL LIABILITIES AND EQUITY | 1,448,464 | 1,405,185 | 192,509 | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | ||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||
For the years ended December 31, | ||||||||||||
2023 | 2024 | 2024 | ||||||||||
RMB | RMB | US$ | ||||||||||
Live streaming - consumable virtual | 1,420,258 | 1,317,601 | 180,510 | |||||||||
Live streaming - time based virtual item | 25,004 | 24,935 | 3,416 | |||||||||
Technical services and others | 19,609 | 20,848 | 2,857 | |||||||||
Total revenue | 1,464,871 | 1,363,384 | 186,783 | |||||||||
Cost of revenues | (1,272,145) | (1,117,942) | (153,157) | |||||||||
Gross profit | 192,726 | 245,442 | 33,626 | |||||||||
Sales and marketing expenses | (1,355) | (7,049) | (966) | |||||||||
General and administrative expenses | (75,582) | (76,629) | (10,498) | |||||||||
Research and development expenses | (75,116) | (90,461) | (12,393) | |||||||||
Provision for credit losses | (17,865) | (30,584) | (4,188) | |||||||||
Income from operations | 22,808 | 40,719 | 5,581 | |||||||||
Change in fair value of contingent | (5,624) | - | - | |||||||||
Change in fair value of warrant liabilities | 170 | - | - | |||||||||
Change in fair value of investment in | (9,023) | 6,103 | 836 | |||||||||
Investments loss | (31,328) | (5,742) | (787) | |||||||||
Impairment of long-term investments | (11,800) | (10,425) | (1,428) | |||||||||
Interest income, net | 2,739 | 3,211 | 440 | |||||||||
Other income, net | 7,449 | 1,609 | 220 | |||||||||
Foreign exchange (loss) gain, net | (1,887) | 3,805 | 521 | |||||||||
Income (loss) before income taxes | (26,496) | 39,280 | 5,383 | |||||||||
Income tax expense | (8,480) | (12,597) | (1,726) | |||||||||
Net (loss) income | (34,976) | 26,683 | 3,657 | |||||||||
Less: net loss attributable to | (4,188) | (13,002) | (1,781) | |||||||||
Net (loss) income attributable to the | (30,788) | 39,685 | 5,438 | |||||||||
Other comprehensive (loss) income: | ||||||||||||
Other comprehensive loss - foreign | (105) | (998) | (137) | |||||||||
Comprehensive (loss) income | (35,081) | 25,685 | 3,520 | |||||||||
Less: comprehensive loss attributable | (4,188) | (13,002) | (1,781) | |||||||||
Comprehensive (loss) income | (30,893) | 38,687 | 5,301 | |||||||||
Weighted average number of shares | ||||||||||||
Basic | 40,649,414 | 41,367,946 | 41,367,946 | |||||||||
Diluted | 40,649,414 | 41,564,237 | 41,564,237 | |||||||||
(Loss) earnings per share | ||||||||||||
Basic | (0.76) | 0.96 | 0.13 | |||||||||
Diluted | (0.76) | 0.95 | 0.13 | |||||||||
Reconciliations of Non-GAAP Results | ||||||||||||
(All amounts in thousands, except share and per share data or otherwise stated) | ||||||||||||
For the years ended December 31, | ||||||||||||
2023 | 2024 | 2024 | ||||||||||
RMB | RMB | US$ | ||||||||||
Net (loss) income attributable to the Company's | (30,788) | 39,685 | 5,438 | |||||||||
Less: | ||||||||||||
Change in fair value of contingent consideration | (5,624) | - | - | |||||||||
Change in fair value of warrants liability | 170 | - | - | |||||||||
Share based compensation | (13,637) | (10,579) | (1,449) | |||||||||
Adjusted net (loss) income attributable to the Company's | (11,697) | 50,264 | 6,887 | |||||||||
Adjusted net (loss) income per ordinary share | ||||||||||||
Basic | (0.29) | 1.22 | 0.17 | |||||||||
Diluted | (0.29) | 1.21 | 0.17 | |||||||||
"Adjusted net (loss) income attributable to the Company's shareholders" is defined as net (loss) income | ||||||||||||
View original content:https://www.prnewswire.com/news-releases/scienjoy-holding-corporation-reports-fiscal-year-2024-financial-results-302434273.html
SOURCE Scienjoy Holding Corporation
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