Mobvoi (2438) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was RMB162.7m; excluding the RMB138.8m Automotive Sub A IP-rights revenue recognized in H1 2023, revenue rose 32.2% YoY as AIGC expanded and traditional project-based revenue was deprioritized.

• AIGC revenue reached RMB92.3m, up 123.8% YoY, and contributed 56.7% of total revenue versus 23.2% in 2023.

Financial highlights

• Reported revenue fell 37.9% to RMB162.7m from RMB261.8m; excluding the prior-year IP-rights arrangement, revenue increased 32.2% from RMB123.0m.

• Reported gross profit was RMB105.3m versus RMB197.1m; margin was 64.7% versus 75.3%. Excluding the IP-rights arrangement, gross profit rose 80.6% from RMB58.3m and margin improved from 47.4%.

• Operating loss was RMB98.1m versus operating profit of RMB32.8m; net loss was RMB578.8m versus RMB218.3m, driven substantially by remeasurement of redeemable shares.

• Adjusted net loss was RMB55.9m in H1 2024; the comparable ex-IP-rights basis cited in the highlights was RMB83.0m in H1 2023, down 32.7%. The reported adjusted measure was a RMB55.8m profit in H1 2023.

• Basic and diluted loss per share was RMB0.55 versus RMB0.30; excluding changes in carrying amounts of redeemable ordinary shares, adjusted loss per share was RMB0.30 versus RMB0.15.

Outlook and guidance

• Priorities remain user- and product-driven growth, product/model integration, commercialization, and scaling AIGC applications; AIGC users and revenue are expected to grow more significantly.

• Global expansion and existing overseas technology partnerships are intended to support sustainable growth as overseas market share develops.

• Paying users increased nearly 30% YoY in H1; product revenue streams include subscriptions, in-app purchases, and software-hardware integration.