TI Cloud Inc (2167) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 16.6% YoY to RMB446.8m, led by SaaS solutions and AI-related products; gross profit increased 16.1% to RMB214.8m.

• Net loss widened to RMB8.6m from RMB7.5m; adjusted net loss was RMB2.4m versus adjusted net profit of RMB4.0m in 2022.

Financial highlights

• SaaS revenue reached RMB413.4m, up 17.8% YoY and 92.5% of total revenue; total revenue was RMB446.8m.

• Gross profit rose to RMB214.8m, while gross margin eased to 48.1% from 48.3%; cost of sales increased 17.0% to RMB232.1m.

• Operating expenses included selling and distribution of RMB110.1m (+23.6% YoY), R&D of RMB91.8m (+16.7%) and administration of RMB30.7m (-14.7%).

• Basic and diluted loss per share was RMB4.96 cents, compared with RMB4.63 cents in 2022.

Outlook and guidance

• 2024 priorities include improving R&D efficiency, expanding AI-native customer contact solutions and growing SaaS subscribers, user engagement and net retention.

• Sales coverage is planned to expand in the Bohai Rim, East China, Pearl River Delta and Chengdu-Chongqing regions; strategic acquisitions and investments may be pursued selectively.

• Management expects AI adoption and replacement of on-premise systems to expand demand, while competition in customer contact solutions is increasing.