Meitu (1357) H2 2024 earnings summary

Executive summary

• Revenue grew 23.9% year-over-year to RMB 3.34 billion in 2024, led by productivity and globalization strategies and strong performance in photo, video, and design products, which now comprise 62.4% of total revenue.

• Net profit (IFRS) reached RMB 810 million, up 113% year-over-year, with adjusted net profit attributable to owners at RMB 586 million, driven by AI integration and high-margin product growth.

• International market revenue grew 42%, now accounting for 32% of total revenue, up from 28% in 2023, with international MAU up 21.7% to 94.5 million.

• Monthly active users reached 266 million in December 2024, up 6.7% year-over-year.

• Subscription penetration rates for key products continue to rise, with Meitu Studio at 12.8% and overall core product subscription rate at 4.7%.

Financial highlights

• Gross profit for 2024 was RMB 2.29 billion, up 39% year-over-year, with gross margin at 68.7%, 7.2 percentage points higher than 2023.

• Advertisement revenue grew 12.5% to RMB 853.5 million, mainly from programmatic ads.

• Beauty industry solutions revenue declined 33.4% to RMB 380 million as focus shifted to higher-margin segments.

• R&D expenses rose 43.3% to RMB 911 million, driven by investment in visual large model training.

• Net cash from operating activities was RMB 746 million, up from RMB 413 million year-over-year.

Outlook and guidance

• Overseas productivity tools and AI-powered photo, video, and design products are expected to drive future growth, with 2026 anticipated as a potential explosive period.

• Focus remains on increasing subscription penetration and expanding core visual and design products globally.

• R&D costs expected to stabilize as foundational model training completes and focus shifts to scenario-specific training.

• E-commerce identified as the primary sector for deep development of productivity tools.