Marketingforce Management (2556) H2 2024 earnings summary

Executive summary

• Achieved revenue of RMB 1,558.6 million in 2024, up 26.5% year-over-year, driven by growth in both AI+SaaS and precision marketing services.

• Adjusted net profit (non-IFRS) turned positive at RMB 79.2 million, a 385.6% improvement from a loss last year, while net loss under IFRS was RMB 876.7 million due to fair value changes of convertible redeemable preferred shares.

• Operating cash flow turned positive to RMB 140 million, up 213.6% year-over-year.

• Listed on the Hong Kong Main Board in May 2024, entered the Hang Seng Composite Index, and completed two share placings raising over HK$1.3 billion for AI development, M&A, and global expansion.

• Recognized with multiple industry awards, including top AI SaaS and intelligent marketing rankings for consecutive years.

Financial highlights

• AI+SaaS business revenue reached RMB 842.2 million, up 19.9% year-over-year, with a gross margin of 86.3%.

• Precision marketing services revenue grew 35.2% to RMB 716.4 million, with gross margin at 14.0%.

• Recurring revenue accounted for RMB 780 million, 92.2% of AI+SaaS revenue; paying users increased 4.4% to 26,606.

• Free cash flow turned positive to RMB 127.9 million in 2024 from negative RMB 27.7 million in 2023.

• Gross profit grew 16.9% year-over-year to RMB 825.8 million; gross margin declined to 53.0% from 57.3% due to higher costs.

Outlook and guidance

• 2025 is positioned as the commercial launch year for AI-Agent, leveraging industry experience and large model capabilities to drive enterprise customer acquisition and sales conversion.

• Plans to complete at least two acquisitions or investments in 2025 to enhance product, talent, and customer base.

• International expansion underway, with localization for overseas clients and plans to enter Middle East, Japan, Korea, Europe, and Southeast Asia, especially supporting Chinese enterprises overseas.

• Intends to fully utilize recent capital raises by end of 2026 for AI R&D, M&A, global expansion, and working capital.