iHuman (IH) Q1 2024 earnings summary

Executive summary

• Revenues for Q1 2024 were RMB235.0 million (US$32.5 million), down 11.4% year-over-year, reflecting normalization after pandemic-driven demand.

• Net income was RMB22.3 million (US$3.1 million), a decrease from RMB53.6 million in Q1 2023.

• Average total MAUs reached a record 26.38 million, up 25.1% year-over-year.

• Continued investment in AI-driven product enhancements and international expansion, including new product launches and market entries.

Financial highlights

• Gross profit was RMB168.1 million (US$23.3 million), down from RMB185.6 million year-over-year.

• Gross margin improved to 71.5% from 70.0% in Q1 2023.

• Operating income was RMB17.5 million (US$2.4 million), down from RMB56.7 million year-over-year.

• Basic and diluted net income per ADS were RMB0.42 (US$0.06) and RMB0.41 (US$0.06), respectively.

• Cash, cash equivalents, and time deposits totaled RMB1,131.3 million (US$156.7 million) as of March 31, 2024.

Outlook and guidance

• Management expects continued investment in AI R&D, product range expansion, and international marketing, which may temporarily impact short-term profitability but are aimed at sustaining long-term growth.