TI Cloud Inc (2167) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose 10.5% YoY to RMB212.917m, led by SaaS growth; gross margin increased to 47.9% from 47.7%.

• Net loss narrowed to RMB2.029m from RMB3.808m, while adjusted net profit declined to RMB1.254m from RMB5.720m.

• Total clients increased 58.8% to 4,222; SaaS client retention was 74.7% and net revenue retention improved to 105.4% from 80.7%.

Financial highlights

• Revenue increased 10.5% to RMB212.917m; SaaS revenue rose 18.5% to RMB198.641m.

• Gross profit increased 11.1% to RMB102.067m; gross margin was 47.9% versus 47.7%.

• Loss before tax narrowed to RMB2.323m from RMB3.937m; basic and diluted loss per share was RMB1.17 cents versus RMB2.54 cents.

• Adjusted net profit, excluding share-based compensation, acquisition-related intangible amortization and listing expenses, fell 78.1% to RMB1.254m from RMB5.720m.

• Selling and distribution expenses rose 23.8% to RMB50.9m and R&D expenses rose 18.5% to RMB42.9m; administrative expenses fell 27.2% to RMB14.2m.

Outlook and guidance

• Priorities include deepening AI, cloud and communications integration, developing AI-enabled customer-contact solutions and expanding automation use cases.

• H2 focus includes improving R&D efficiency, strengthening customer retention and growing SaaS users.

• Plans include expanding sales coverage in the Bohai Rim, East China, Pearl River Delta and Chengdu-Chongqing regions, while selectively pursuing strategic acquisitions and investments.