Mobvista (1860) Q4 2024 earnings summary

Executive summary

• Revenue grew 43% year-over-year to US$1,507.8 million, driven by strong performance in the Ad-tech segment, especially the Mintegral platform.

• Adjusted net profit surged 158.1% year-over-year to US$49.3 million, while reported net profit declined 25.7% to US$13.8 million due to one-off items.

• The company reinforced its position as a leading global programmatic advertising platform, with 72% of Mintegral revenue from gaming and rapid expansion in non-gaming verticals.

• AI-driven product innovation, including smart bidding features, contributed to over 70% of Mintegral's revenue and supported margin improvements.

• The company remains focused on serving small and medium-sized developers globally, with a mission to be a "Growth Hub" for this segment.

Financial highlights

• Total revenue: US$1,507.8 million, up 43% year-over-year; Ad-tech revenue: US$1,490.3 million (+43.5%), Mar-tech revenue: US$17.5 million (+12.3%).

• Gross profit: US$316.3 million (+45.6% YoY); gross margin stable at 21.0%.

• Adjusted EBITDA: US$138.3 million (+31.3% YoY); adjusted net profit: US$49.3 million (+158.1% YoY).

• Net profit: US$13.8 million (-25.7% YoY), impacted by a US$14.5 million impairment loss on Reyun goodwill and other one-off items.

• Operating cash flow: US$285.5 million, up 164.4% year-over-year.

Outlook and guidance

• The company expects continued growth in Ad-tech, driven by AI-powered bidding and expansion into non-gaming verticals.

• Mar-tech is anticipated to increase its revenue contribution as product refinement and overseas expansion continue.

• Management is closely monitoring regulatory and geopolitical risks, especially in the US and EU, and is evaluating measures to mitigate potential impacts.