Keep (3650) H1 2024 earnings summary

Executive summary

• H1 2024 revenue and gross profit grew YoY, while adjusted net loss narrowed 28.0% as operating efficiency improved.

• MAUs edged up to 29.66 million and monthly subscribers rose to 3.282 million; membership penetration reached 11.1%.

Financial highlights

• Revenue was RMB1,037.3 million, up 5.4% YoY; gross profit rose 12.7% to RMB477.3 million.

• Reported net loss was RMB163.4 million versus profit of RMB1,195.1 million in H1 2023; adjusted net loss narrowed to RMB160.7 million from RMB223.1 million.

• Selling and marketing expenses increased 25.8% to RMB323.4 million, while R&D expenses fell 19.6% to RMB195.7 million.

Outlook and guidance

• 2024 priorities include improving online offerings, expanding outdoor and offline activity, growing self-branded products, and developing AI-driven overseas fitness apps.

• Focus remains on improving commercialization efficiency and user experience amid gradually recovering consumer confidence.