Mobvoi (2438) H2 2024 earnings summary

Executive summary

• Strategic pivot away from traditional project-based enterprise work accelerated the shift to AIGC; AIGC generated 56.8% of 2024 revenue and grew 88.5% YoY to RMB221.7 million.

• Total revenue was RMB390.3 million; reported operating loss was RMB207.1 million and net loss was RMB721.5 million, including a RMB480.5 million charge from remeasurement of redeemable shares.

• AIGC registered users exceeded 10 million and paying users exceeded 1 million at year-end; the listing converted redeemable share liabilities into equity and materially improved the balance sheet.

Financial highlights

• Revenue fell 23.0% YoY to RMB390.3 million on a reported basis; excluding RMB138.8 million of 2023 Automotive Sub A IP-rights revenue, revenue rose 6.0%.

• Gross profit declined 37.6% to RMB203.4 million; reported gross margin was 52.1% versus 64.3%, while 2023 margin excluding the high-margin IP arrangement was 50.9%.

• Cost of sales increased 3.3% to RMB186.9 million; R&D expenses fell to RMB136.9 million, selling and marketing rose to RMB196.0 million, and administrative expenses were RMB88.3 million.

• IFRS net loss was RMB721.5 million versus RMB802.6 million in 2023; basic and diluted loss per share was RMB0.59 versus RMB1.28 loss.

• Operating cash flow was an outflow of RMB168.7 million versus an inflow of RMB28.4 million in 2023; year-end cash and cash equivalents were RMB156.5 million.

Outlook and guidance

• Priorities include product-and-model integration, using product feedback to improve models, expanding Agent applications and AI hardware, and growing global localized operations; no numerical targets were stated.

• Plans include broader subscription services and hardware-software-service offerings, continued TicWatch iteration, and AI Agent integration with consumer and enterprise hardware scenarios.

• Management expects no future remeasurement of redeemable-share liabilities, which were derecognized and reclassified to equity upon listing.