SenseTime Group (20) H2 2024 earnings summary

Executive summary

• Revenue reached RMB 3,772 million in FY2024, up 10.8% year-over-year, with gross profit of RMB 1,620 million and gross margin of 43%.

• Net loss narrowed to 33.7% of revenue, or RMB 4,306.6 million, reflecting improved operational efficiency and cost control.

• Generative AI revenue surged 103.1% to RMB 2,404 million, now comprising 64% of total revenue.

• SenseCore's managed computing power surged 92% year-over-year to over 23,000 Petaflops, reinforcing market leadership in AI infrastructure.

• Cash reserves at year-end were RMB 12,752.2 million, with a net cash position and gearing ratio of -2.0%.

Financial highlights

• Gross profit margin remained strong at 43%, with gross profit up 7.9% to RMB 1,619.7 million.

• EBITDA loss narrowed to RMB 3,406 million, and adjusted EBITDA loss improved 29.3% to RMB 3,089.2 million.

• Operating expenses (excluding share-based compensation) decreased by 10.6%, while R&D expenses rose 19.2% to RMB 4,131.9 million.

• Selling and administrative expenses decreased by 20.0% and 3.1% respectively.

• Net impairment losses on financial assets dropped 57.4% to RMB 781.0 million.

Outlook and guidance

• Strategic focus on scaling AI infrastructure (SenseCore), advancing large models (SenseNova), and expanding applications.

• Continued development of industry-leading multimodal large models, with SenseNova 6.0 to launch in Q2 2025.

• Upgrading Computer Vision business model to target high-value, recurring clients and proven use cases.

• Plans to further commercialize Computer Vision and ecosystem companies in smart auto, healthcare, and retail.

• Five ecosystem companies completed external capital raises from late 2024 to early 2025.