Scienjoy Holding Corporation Reports Unaudited First Quarter 2025 Financial Results

Rhea-AI Summary

Scienjoy Holding Corporation (NASDAQ: SJ) reported mixed Q1 2025 financial results. While total revenues decreased to RMB307.3M ($42.4M) from RMB316.3M in Q1 2024, the company showed operational improvements with income from operations increasing 33.3% YoY to RMB13.7M ($1.9M). Gross profit rose 12.1% to RMB59.5M ($8.2M), with gross margin expanding to 19.4% from 16.8%. However, the company recorded a net loss of RMB13.0M ($1.8M), primarily due to a RMB24.3M loss from changes in fair value of marketable securities. Total paying users decreased to 151,971 from 164,044 YoY. Cash position strengthened to RMB286.5M ($39.5M), up RMB33.9M from December 2024. The company continues to focus on global expansion through its Dubai hub and AI initiatives while maintaining operational efficiency and strategic cost management.

Positive

• Income from operations increased 33.3% YoY to RMB13.7M
• Gross profit grew 12.1% YoY to RMB59.5M
• Gross margin improved to 19.4% from 16.8% YoY
• Cash and cash equivalents increased by RMB33.9M to RMB286.5M
• Higher average live streaming revenue per paying user (ARPPU)

Negative

• Total revenues decreased to RMB307.3M from RMB316.3M YoY
• Net loss of RMB13.0M compared to net income of RMB2.8M YoY
• Total paying users declined to 151,971 from 164,044
• RMB24.3M loss from changes in fair value of marketable securities
• Operating expenses increased 7.0% to RMB45.8M

Insights

Financial Analyst

Scienjoy shows operational improvement despite net loss, with higher margins and operational income counterbalanced by investment losses.

Scienjoy's Q1 2025 results present a mixed financial picture with both strengths and challenges. The company achieved noteworthy operational improvements, with 33.3% year-over-year growth in income from operations to RMB13.7 million and a 12.1% increase in gross profit to RMB59.5 million. The gross margin expanded significantly from 16.8% to 19.4%, indicating more efficient monetization of their user base.

However, these operational gains were overshadowed by a substantial RMB24.3 million unrealized loss from changes in fair value of marketable securities investments, which drove the company to a net loss of RMB13.0 million compared to a net income of RMB2.8 million in Q1 2024. This highlights the volatility introduced by the company's investment portfolio.

The decline in total revenues to RMB307.3 million (down from RMB316.3 million) coupled with a 7.3% decrease in paying users (151,971 versus 164,044) suggests competitive pressure in China's mobile live streaming market. However, the higher ARPPU (average revenue per paying user) indicates the company is successfully focusing on higher-value users, a potentially sustainable strategy in a maturing market.

The 17.2% increase in general and administrative expenses to RMB23.4 million, primarily due to higher professional consultant fees, may reflect investments in strategic initiatives, though it bears monitoring for efficiency. The company's cash position strengthened to RMB286.5 million, a RMB33.9 million increase from year-end 2024, providing financial flexibility for their global expansion strategy.

Scienjoy's dual focus on AI initiatives through their Dubai subsidiary and operational efficiency improvements represents a balanced approach to navigating market challenges while pursuing growth opportunities beyond their core Chinese market. The operational metrics show resilience, but investment performance volatility remains a risk factor worth monitoring.

Income from Operations up 33.3% Year Over Year

BEIJING, June 4, 2025 /PRNewswire/ -- Scienjoy Holding Corporation ("Scienjoy", the "Company", or "we") (NASDAQ: SJ), an interactive entertainment leader in the Chinese market, today announced its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Operating and Financial Summaries

• Total revenues decreased to RMB307.3 million (US$42.4 million) in the first quarter of 2025 from RMB316.3 million in the same period of 2024.
  
  
• Gross profit increased by 12.1% to RMB59.5 million (US$8.2 million) in the first quarter of 2025 from RMB53.1 million in the same period of 2024. Gross margin increased to 19.4% in the first quarter of 2025 from 16.8% in the same period of 2024.
  
  
• Income from operations increased by 33.3% to RMB13.7 million (US$1.9 million) in the first quarter of 2025 from RMB10.3 million in the same period of 2024.
  
  
• Net loss was RMB13.0 million (US$1.8 million) in the first quarter of 2025, as compared to a net income of RMB2.8 million in the same period of 2024.
  
  
• Net loss attributable to the Company's shareholders was RMB9.1 million (US$1.3 million) in the first quarter of 2025, as compared to a net income attributable to the Company's shareholders of RMB6.6 million in the same period of 2024.
  
  
• Adjusted net loss attributable to the Company's shareholders was RMB5.5 million (US$0.8 million) in the first quarter of 2025, as compared to a net income adjusted attributable to the Company's shareholders of RMB9.0 million in the same period of 2024.
  
  
• As of March 31, 2025, the Company had RMB286.5 million (US$39.5 million) in cash and cash equivalents, which represented an increase of RMB33.9 million from RMB252.5 million as of December 31, 2024.

Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "Our first quarter results reflect our continued focus on operational efficiency and strategic cost management. Despite a slight decline in total revenues, we achieved a substantial increase in gross profit and gross margin. These results underscore our unwavering commitment to executing our long-term growth strategy, particularly advancing our global expansion through our Dubai hub and continuing to scale in the dynamic Middle East and beyond. Our Dubai subsidiary has established a strong foundation for our dual model in the AI sector, combining a compelling AI-focused app with a growing user base and a complementary offline presence that not only generates revenue but also serves as a marketing funnel. The momentum from late 2024 through the first quarter of 2025 reflects strong execution in this strategy and lays a solid platform for further global expansion in subsequent quarters. Moving forward, we remain confident in our ability to drive operational excellence, scale globally, and remain agile in response to market dynamics. With clear objectives in place, we believe we are well-positioned for sustainable long-term shareholder value creation."

Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "We are encouraged by the resilience of our business in the first quarter of 2025. Our income from operations increased by 33.3% year over year, demonstrating the ongoing effectiveness of our disciplined cost management and our capability to extract greater value from a more targeted paying user base. Although we reported a net loss this quarter, the strength of our core operations was not impacted, as evidenced by the significant increases in both income from operations and gross profit. Additionally, the increase in cash reserves reinforces our financial stability and ability to support future sustainable growth. We believe the progress we have achieved in fiscal year 2024 has laid a solid foundation for continued momentum in 2025. Looking ahead, we will remain focused on executing our strategic priorities while advancing our innovation roadmap, with renewed confidence and resolution to pursue high-quality growth and operational efficiency."

First Quarter 2025 Financial Results 

Total revenues decreased to RMB307.3 million (US$42.4 million) in the first quarter of 2025 from RMB316.3 million in the same period of 2024, primarily caused by a decrease in paying users due to competitive landscape of China's mobile live streaming market. Total paying users were 151,971 in the first quarter of 2025, as compared to 164,044 in the same period of 2024.

Cost of revenues decreased to RMB247.8 million (US$34.2 million) in the first quarter of 2025 from RMB263.2 million in the same period of 2024. The decrease was primarily attributable to a decrease of RMB22.9 million in the Company's revenue sharing fees due to the fact that the Company already had a stable market share, offset by an increase of RMB7.0 million in the Company's user acquisition costs. 

Gross profit increased by 12.1% to RMB59.5 million (US$8.2 million) in the first quarter of 2025 from RMB53.1 million in the same period of 2024. The gross margin increased to 19.4% in the first quarter of 2025 from 16.8% in the same period of 2024 due to higher average live streaming revenue per paying user ("ARPPU") during the first quarter of 2025, showing the Company's effectiveness in converting high-quality paying user to its profit growth.

Total operating expenses increased by 7.0% to RMB45.8 million (US$6.3 million) in the first quarter of 2025 from RMB42.8 million in the same period of 2024.

• Sales and marketing expenses increased by 6.3% to RMB2.1 million (US$0.3 million) in the first quarter of 2025 from RMB2.0 million in the same period of 2024, primarily attributable to more marketing activities.
  
  
• General and administrative expenses increased by 17.2% to RMB23.4 million (US$3.2 million) in the first quarter of 2025 from RMB19.9 million in the same period of 2024. The increase was primarily due to an increase of RMB3.8 million in professional consultant fee.
  
  
• Research and development expenses decreased to RMB19.6 million (US$2.7 million) in the first quarter of 2025 from RMB21.5 million in the same period of 2024, due to a decrease of RMB2.4 million in technical service fee.
  
  
• Provision for credit losses was RMB0.8 million (US$0.1 million) in the first quarter of 2025, as compared to a recovery of credit losses of RMB0.6 million in the same period of 2024, due to slow collection.

Income from operations increased by 33.3% to RMB13.7 million (US$1.9 million) in the first quarter of 2025 from RMB10.3 million in the same period of 2024.

Change in fair value of investment in marketable security increased by 654.1% to loss of RMB24.3 million (US$3.4 million) in the first quarter of 2025 from loss of RMB3.2 million in the same period of 2024. The change was primarily attributable to the fair value changes in investments in a publicly traded company.

Investment loss decreased to RMB0.4 million (US$0.1 million) in the first quarter of 2025, as compared to an investment loss of RMB2.2 million in the same period of 2024. The investment loss was primarily attributable to share of unrealized loss in long-term investments.

Net loss was RMB13.0 million (US$1.8 million) in the first quarter of 2025, as compared to a net income of RMB2.8 million in the same period of 2024. Despite delivering a 33.3% increase in income from operation, the Company reported a net loss for the first quarter of 2025, primarily attributable to an unrealized loss of RMB 24.3 million from change in fair value of investment in marketable security.

Net loss attributable to the Company's shareholders was RMB9.1 million (US$1.3 million) in the first quarter of 2025, as compared to a net income attributable to the Company's shareholders of RMB6.6 million in the same period of 2024.

Adjusted net loss attributable to the Company's shareholders was RMB5.5 million (US$0.8 million) in the first quarter of 2025, as compared to a net income adjusted attributable to the Company's shareholders of RMB9.0 million in the same period of 2024.

Basic and diluted net loss attributable to the Company's shareholders per ordinary share were both RMB0.22 (US$0.03) in the first quarter of 2025. In comparison, basic and diluted net income attributable to the Company's shareholders per ordinary share were both RMB0.16 in the same period of 2024.

Adjusted basic and diluted net loss attributable to the Company's shareholders per ordinary share were both RMB0.13 (US$0.02) in the first quarter of 2025. In comparison, adjusted basic and diluted net income attributable to the Company's shareholders per ordinary share were both RMB0.22 in the same period of 2024.

As of March 31, 2025, the Company had cash and cash equivalent balance of RMB286.5 million (US$39.5 million), which represented an increase of RMB33.9 million from RMB252.5 million as of December 31, 2024. 

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 U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with US GAAP.

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 U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB amounts could have been, or could be, converted, realized or settled in U.S. dollars at that rate on March 31, 2025, or at any other rate.

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

 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share and per share data or otherwise stated)
		As of December 31,				As of March 31,
		2024				2025				2025
		RMB				RMB				US$
ASSETS
Current assets
Cash and cash equivalents			252,540				286,482				39,478
Accounts receivable, net			226,060				208,242				28,697
Prepaid expenses and other current assets			28,415				30,424				4,193
Amounts due from related parties			-				100				14
Investment in marketable security			37,629				13,295				1,832
Total current assets			544,644				538,543				74,214
Non-current assets
Property and equipment, net			1,981				1,839				253
Intangible assets, net			405,256				403,519				55,606
Goodwill			182,661				182,619				25,166
Long term investments			257,387				256,890				35,400
Long term deposits and other assets			906				906				125
Right-of-use assets-operating lease			4,845				19,614				2,703
Deferred tax assets			7,505				7,600				1,047
Total non-current assets			860,541				872,987				120,300
TOTAL ASSETS			1,405,185				1,411,530				194,514
LIABILITIES AND EQUITY
Current liabilities
Accounts payable			36,015				29,623				4,079
Accrued salary and employee benefits			22,346				24,367				3,358
Accrued expenses and other current liabilities			6,840				9,585				1,321
Income tax payable			11,284				12,960				1,786
Lease liabilities-operating lease -current			4,098				5,693				785
Deferred revenue			80,186				82,276				11,338
Total current liabilities			160,769				164,504				22,667
Non-current liabilities
Deferred tax liabilities			58,400				58,045				7,999
Lease liabilities-operating lease -non-current			700				12,725				1,754
Total non-current liabilities			59,100				70,770				9,753
TOTAL LIABILITIES			219,869				235,274				32,420
Commitments and contingencies
EQUITY
Ordinary share, no par value, unlimited Class A ordinary shares and    Class B ordinary shares authorized, 38,922,726 Class A ordinary    shares and 2,925,058 Class B ordinary shares issued and outstanding    as of December 31, 2024, respectively. 39,078,340 Class A ordinary    shares and 2,925,058 Class B ordinary shares issued and outstanding    as of March 31, 2025, respectively.
Class A ordinary shares			444,162				447,737				61,700
Class B ordinary shares			23,896				23,896				3,293
Shares to be issued			20,817				20,817				2,869
Treasury stocks			(19,952)				(19,952)				(2,749)
Statutory reserves			50,705				51,326				7,073
Retained earnings			662,499				652,788				89,957
Accumulated other comprehensive income			16,967				17,339				2,389
Total shareholders' equity			1,199,094				1,193,951				164,532
Non-controlling interests			(13,778)				(17,695)				(2,438)
Total equity			1,185,316				1,176,256				162,094
TOTAL LIABILITIES AND EQUITY			1,405,185				1,411,530				194,514

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(All amounts in thousands, except share and per share data or otherwise stated)
		For three months ended
		March 31,				March 31,				March 31,
		2024				2025				2025
		RMB				RMB				US$
Live streaming - consumable virtual items    revenue			309,015				294,474				40,580
Live streaming - time based virtual item revenue			5,974				4,858				669
Technical services and others			1,310				8,003				1,103
Total revenue			316,299				307,335				42,352
Cost of revenues			(263,212)				(247,842)				(34,154)
Gross profit			53,087				59,493				8,198
Sales and marketing expenses			(1,988)				(2,113)				(291)
General and administrative expenses			(19,930)				(23,352)				(3,218)
Research and development expenses			(21,527)				(19,562)				(2,696)
Recovery of (provision for) credit losses			643				(754)				(102)
Income from operations			10,285				13,712				1,891
Change in fair value of investment in marketable    security			(3,227)				(24,334)				(3,353)
Investments loss			(2,240)				(412)				(57)
Interest income, net			1,979				539				74
Other income, net			113				1,433				197
Foreign exchange (loss) gain, net			534				(1,016)				(140)
Income (loss) before income taxes			7,444				(10,078)				(1,388)
Income tax expense			(4,638)				(2,880)				(397)
Net income (loss)			2,806				(12,958)				(1,785)
Less: net loss attributable to noncontrolling    interest			(3,774)				(3,868)				(533)
Net income (loss) attributable to the    Company's shareholders			6,580				(9,090)				(1,252)
Other comprehensive income(loss):
Other comprehensive (loss) income - foreign    currency translation adjustment			(436)				323				45
Comprehensive income (loss)			2,370				(12,635)				(1,740)
Less: comprehensive loss attributable to non-    controlling interests			(3,774)				(3,917)				(533)
Comprehensive income (loss) attributable to    the Company's shareholders			6,144				(8,718)				(1,207)
Weighted average number of shares
Basic			41,164,872				41,563,935				41,563,935
Diluted			41,164,872				41,563,935				41,563,935
Earnings (loss) per share
Basic			0.16				(0.22)				(0.03)
Diluted			0.16				(0.22)				(0.03)

 

 

Reconciliations of Non-GAAP Results
(All amounts in thousands, except share and per share data or otherwise stated)
		For the three months ended
		March 31,				March 31,				March 31,
		2024				2025				2025
		RMB				RMB				US$
Net income (loss) attributable to the Company's shareholders			6,580				(9,090)				(1,252)
Less:
Share based compensation			(2,435)				(3,575)				(493)
Adjusted net income (loss) attributable to the Company's    shareholders*			9,015				(5,515)				(759)
Adjusted net income (loss) per ordinary share
Basic			0.22				(0.13)				(0.02)
Diluted			0.22				(0.13)				(0.02)

"Adjusted net income (loss) attributable to the Company's shareholders" is defined as net income (loss) attributable to the Company's shareholders excluding share based compensation. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" at the end of this press release.

 

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SOURCE Scienjoy Holding Corporation

FAQ

What were Scienjoy's (SJ) key financial results for Q1 2025?

Scienjoy reported revenues of RMB307.3M, income from operations of RMB13.7M (up 33.3%), and a net loss of RMB13.0M. Gross profit increased 12.1% to RMB59.5M with improved margins of 19.4%.

Why did Scienjoy (SJ) report a net loss in Q1 2025 despite improved operations?

The net loss was primarily due to a RMB24.3M loss from changes in fair value of marketable securities, despite a 33.3% increase in income from operations.

How many paying users did Scienjoy (SJ) have in Q1 2025?

Scienjoy had 151,971 total paying users in Q1 2025, down from 164,044 in the same period of 2024.

What is Scienjoy's (SJ) cash position as of March 31, 2025?

Scienjoy had RMB286.5M (US$39.5M) in cash and cash equivalents, an increase of RMB33.9M from December 31, 2024.

What is Scienjoy's (SJ) international expansion strategy?

Scienjoy is focusing on global expansion through its Dubai hub, combining an AI-focused app with offline presence to scale in the Middle East and beyond.