Moatable (MTBLY) Q3 2024 earnings summary

Executive summary

• Total revenues rose 25.5% year-over-year to $16.7M for Q3 2024, with net income of $1.5M versus a net loss of $7.0M in Q3 2023.

• For the nine months ended September 30, 2024, revenues increased 20.1% to $46.0M, and net income was $1.5M, compared to a net loss of $10.4M in the prior year period.

• Growth was driven by expansion in SaaS businesses, Lofty and Trucker Path, with Lofty purchased seats up 65% and Trucker Path subscriptions up 21% year-over-year.

• Loss from operations improved to $0.2M in Q3 2024 from $0.8M in Q3 2023, and to $1.9M for the nine months from $7.0M in the prior year.

• Net income benefited from $0.4M other income, $0.4M interest income, and a $0.6M tax benefit in Q3 2024.

Financial highlights

• Q3 2024 revenue: $16.7M (+25.5% YoY); nine months: $46.0M (+20.1% YoY).

• Q3 2024 net income: $1.5M; nine months: $1.5M (vs. net losses in 2023).

• Gross margin for Q3 2024: 75.7% (down from 78.8% YoY); nine months: 76.4% (down from 78.7%).

• Cost of revenues increased 44.1% YoY in Q3 2024, mainly due to higher software and cloud hosting expenses.

• Operating expenses for Q3 2024: $12.9M (+14.1% YoY); nine months: $37.0M (down 0.6% YoY).

Outlook and guidance

• Cash and cash equivalents of $33.2M (excluding $5.2M restricted cash) as of September 30, 2024, expected to meet operating needs for at least the next 12 months.

• Management notes that persistent negative cash flow from operations could impact future liquidity.