iHuman Inc. Publicizes Third Quarter 2024 Unaudited Monetary Outcomes By Investing.com

BEIJING, Dec. 26, 2024 /PRNewswire/ — iHuman Inc. (NYSE: IH) (“iHuman” or the “Firm”), a number one supplier of tech-powered, mental improvement merchandise in China, as we speak introduced its unaudited monetary outcomes for the third  quarter ended September  30, 2024.  

Third Quarter 2024 Highlights

• Revenues had been RMB239.4 million (US$34.1 million), in contrast with RMB261.5 million in the identical interval final yr.
• Gross revenue was RMB163.9 million (US$23.4 million), in contrast with RMB186.6 million in the identical interval final yr.
• Working revenue was RMB20.7 million (US$2.9 million), in contrast with RMB40.4 million in the identical interval final yr.
• Web revenue was RMB25.1 million (US$3.6 million), in contrast with RMB51.9 million in the identical interval final yr.
• Common complete  MAUs^[1] reached a record-high of 29.12 million, a year-over-year improve of 14.8%.

Dr.  Peng Dai, Director and Chief Govt Officer of iHuman, commented, “Within the third quarter, we continued to see sturdy consumer demand for our merchandise, driving common complete MAUs to a different file excessive of 29.12 million, representing a year-over-year improve of 14.8%. This progress underscores the effectiveness of our product technique targeted on innovation, abroad market growth, and responsiveness to evolving market dynamics.

Domestically, we additional strengthened our market management by enhancing our product portfolio with the launch of iHuman Chinese language Studying. This new providing goals to domesticate an curiosity in Chinese language studying, improve literacy and verbal abilities, and deepen kids’s understanding of the Chinese language tradition. Developed by the identical group behind our extremely acclaimed  iHuman Chinese language app,  iHuman Chinese language Studying continues our proud custom and dedication to glorious content material and progressive design. The course incorporates a leveled studying system that facilitates gradual progress in Chinese language proficiency and provides a wealthy number of content material codecs, corresponding to historic Chinese language poems, interactive storybooks, and on-line research excursions.

Constructing on our basis, we expanded our content material library by strengthening ties with influential {industry} gamers and leveraged our superior know-how to create richer and extra immersive experiences for youngsters. As an illustration, via our beforehand introduced strategic partnership with Kids’s Enjoyable Publishing Co. Ltd., a number one kids’s ebook writer in China, we not too long ago launched a brand new “Frozen” theme inside iHuman Little Artists, the place kids can coloration their favourite Frozen characters and scenes, add their paintings, and watch them come to life in a narrated storybook. This integration gives kids with a inventive solution to expertise the favored Frozen story whereas providing a extremely interactive studying and drawing expertise.

We additionally continued to roll out updates throughout different app merchandise. For instance, we added two new themes to iHuman Magic Pondering: “Sudoku” and “Pondering Logic.” “Sudoku” introduces kids to Sudoku guidelines and mathematical ideas via brief, animated tales and interactive challenges, and “Pondering Logic” engages them with a detective story collection designed to sharpen judgment, analytical pondering, and problem-solving talents.

On the worldwide entrance, we enriched our portfolio with recent content material and options to spice up consumer engagement and broaden our world attain. Aha World  acquired a number of updates, including much more enjoyable and journey to its ever-expanding fantasy world. Kids can now discover the “Love Animal Shelter,” the place they’ll undertake, wash, and look after lovable digital pets and revel in an immersive and joyful pet possession expertise. For these captivated by the paranormal, we launched themes like “Magic College“ and “Magic Road,” which take kids on enchanting adventures and introduce magical retailers crammed with pleasant surprises. These efforts have additional boosted Aha World‘s recognition. By the tip of September, Aha World  achieved over 502 million cumulative views throughout numerous social media platforms and attracted greater than 1.4 million followers globally, reflecting its rising attraction amongst younger customers worldwide.  

Trying forward, we stay targeted on enhancing our various portfolio throughout markets to higher promote kids’s holistic improvement whereas advancing our sustainable progress initiatives,” concluded Dr. Dai.

Ms. Vivien Weiwei Wang, Director and Chief Monetary Officer of iHuman, added, “Within the third quarter of 2024, we achieved our eleventh consecutive quarter of profitability, with internet revenue reaching RMB25.1 million. This sustained monetary power allows us to proceed increasing our impression throughout various channels and buyer segments. As an illustration, our animation studio, Kunpeng, broadened its product lineup with the launch of a brand new animated collection, “Rainbow Crew,”  in October. The brand new collection swiftly gained traction following its launch, topping the charts for youngsters’s exhibits on main streaming platforms, together with Tencent Video, iQIYI, and Youku.

Past consumer-facing merchandise, we have now additionally constructed a strong B2B mannequin that at present helps almost 10,000 kindergartens and establishments throughout China. Our tailor-made content material assets and options empower these establishments with a complete suite of various, ready-to-use merchandise that successfully meet the developmental wants of younger kids, selling the high-quality improvement of kindergartens  and establishments. Recently, we have now opened an expertise middle in Zhongshan, Guangdong Province, which mixes schooling, leisure, hands-on expertise, and a few distinctive options. Designed as a one-stop demonstration hub for institutional clients and distributors, the middle is organized into six key areas”core content material, specialty content material, prolonged companies, a multi-functional corridor, indoor play areas, and out of doors exercise zones”showcasing our interactive merchandise and progressive method to supporting early childhood improvement in a okindergarten setting. This hands-on expertise allows establishments to achieve a deeper understanding of how our choices can seamlessly combine into their academic environments. Transferring ahead, we are going to leverage our strong monetary basis and progressive product ecosystem to deepen our impression in each the patron and enterprise segments, reinforcing our industry-leading place and creating worth for our shareholders.”

Third Quarter 2024 Unaudited Monetary Outcomes

Revenues

Revenues had been RMB239.4 million (US$34.1 million), a lower of 8.4% from RMB261.5  million in the identical interval final yr, primarily because of extra conservative shopper spending.  

Common complete MAUs for the quarter had been 29.12 million, a rise of 14.8% year-over-year from 25.36 million in the identical interval final yr, primarily because of the efficient execution of our consumer acquisition technique and ongoing product innovation.

Price of Revenues

Price of revenues  was RMB75.5 million (US$10.8 million), in contrast with RMB74.9  million in the identical interval final yr.

Gross Revenue and Gross Margin

Gross revenue was RMB163.9 million (US$23.4 million), in contrast with RMB186.6  million in the identical interval final yr. Gross margin was 68.4%, in contrast with 71.4% in the identical interval final yr. The slight lower in gross margin was primarily because of our elevated give attention to the offline element within the built-in online-offline product technique to reinforce the attractiveness of the product.

Working Bills

Whole (EPA:) working bills had been RMB143.2 million (US$20.4 million), in comparison with RMB146.2  million in the identical interval final yr.

Analysis and improvement bills had been RMB59.3 million (US$8.5 million), a lower of 10.4% from  RMB66.2  million in the identical interval final yr, primarily because of financial savings in payroll associated bills.  

Gross sales and advertising bills had been RMB60.9 million (US$8.7 million), a rise of 12.7% from RMB54.0  million in the identical interval final yr, primarily because of elevated strategic spending on promotional actions, model enhancement, and abroad growth.

Normal and administrative bills  had been RMB23.0 million  (US$3.3 million), a lower of 11.8% from RMB26.1  million in the identical interval final yr, primarily because of financial savings in payroll associated bills, share-based compensation bills, in addition to different administrative bills.  

Working Earnings

Working revenue was RMB20.7 million (US$2.9 million), in contrast with RMB40.4  million in the identical interval final yr.

Web Earnings

Web revenue was RMB25.1 million (US$3.6 million), in contrast with RMB51.9  million in the identical interval final yr.

Primary and diluted internet revenue per ADS  had been RMB0.48 (US$0.07) and RMB0.47 (US$0.07), respectively, in contrast with RMB0.98  and RMB0.95  in the identical interval final yr. Every ADS represents 5 Class A unusual shares of the Firm.

Deferred Revenue and Buyer Advances

Deferred income and buyer advances had been RMB298.9  million (US$42.6  million) as of September  30, 2024, in contrast with RMB318.6  million as of December 31, 2023.

Money, Money Equivalents and Quick-term Investments

Money, money equivalents and short-term investments had been RMB1,168.6  million (US$166.5 million) as of September 30, 2024, in contrast with RMB1,213.8  million as of December 31, 2023.

Extension of Share Repurchase Program

Given its confidence within the Firm’s enterprise prospects, the board of administrators (the “Board”) has licensed an extension of the Firm’s current share repurchase program, as licensed in December 2021 and prolonged to stay efficient to the tip of December 2024, by one other twelve months via December 31, 2025. Pursuant to the prolonged share repurchase program, the Firm’s proposed repurchases could also be made once in a while via open market transactions at prevailing market costs, in privately negotiated transactions, in block trades and/or via different legally permissible means, relying available on the market situations and in accordance with relevant guidelines and laws. The timing and greenback quantity of repurchase transactions will probably be topic to the Securities and Change Fee Rule 10b-18 and Rule 10b5-1 necessities. The Board will proceed to assessment the prolonged share repurchase program periodically, and will authorize changes to its phrases and dimension. The Firm expects to proceed to fund the repurchases underneath the prolonged share repurchase program with its current money stability.

Change Fee Data

The U.S. greenback (US$) quantities disclosed on this press launch, aside from these transaction quantities that had been really settled in U.S. {dollars}, are introduced solely for the comfort of the reader. The conversion of (RMB) into US$ on this press launch relies on the change charge set forth within the H.10 statistical launch of the Board of Governors of the Federal Reserve System as of September 30, 2024, which was RMB7.0176  to US$1.00. The odds said on this press launch are calculated based mostly on the RMB quantities.

Non-GAAP Monetary Measures

iHuman considers and makes use of non-GAAP monetary measures, corresponding to adjusted working revenue, adjusted internet revenue and adjusted diluted internet revenue per ADS, as supplemental metrics in reviewing and assessing its working efficiency and formulating its marketing strategy. The presentation of non-GAAP monetary measures isn’t supposed to be thought-about in isolation or as an alternative choice to the monetary info ready and introduced in accordance with accounting ideas typically accepted in the US of America (“U.S. GAAP”). iHuman defines adjusted working revenue, adjusted internet revenue and adjusted diluted internet revenue per ADS as working revenue, internet revenue and diluted internet revenue per ADS excluding share-based compensation bills, respectively. Adjusted working revenue, adjusted internet revenue and adjusted diluted internet revenue per ADS allow iHuman’s administration to evaluate its working outcomes with out contemplating the impression of share-based compensation bills, that are non-cash expenses. iHuman believes that these non-GAAP monetary measures present helpful info to buyers in understanding and evaluating the Firm’s present working efficiency and prospects in the identical method as administration does, in the event that they so select.

Non-GAAP monetary measures will not be outlined underneath U.S. GAAP and will not be introduced in accordance with U.S. GAAP. Non-GAAP monetary measures have limitations as analytical instruments, which probably don’t replicate all gadgets of expense that have an effect on our operations. Share-based compensation bills have been and will proceed to be incurred in our enterprise and will not be mirrored within the presentation of the non-GAAP monetary measures. As well as, the non-GAAP monetary measures iHuman makes use of could differ from the non-GAAP measures utilized by different corporations, together with peer corporations, and subsequently their comparability could also be restricted. The presentation of those non-GAAP monetary measures isn’t supposed to be thought-about in isolation from or as an alternative choice to the monetary info ready and introduced in accordance with GAAP.

Secure Harbor Assertion

This announcement incorporates forward-looking statements. These statements are made underneath the “secure harbor” provisions of the US Personal Securities Litigation Reform Act of 1995. These forward-looking statements might be recognized by terminology corresponding to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and related statements. Statements that aren’t historic info, together with statements about iHuman’s beliefs and expectations, are forward-looking statements. Amongst different issues, the outline of the administration’s quotations on this announcement incorporates forward-looking statements. iHuman can also make written or oral forward-looking statements in its periodic experiences to the U.S. Securities and Change Fee (the “SEC“), in its annual report back to shareholders, in press releases and different written supplies, and in oral statements made by its officers, administrators or workers to 3rd events. Ahead-looking statements contain inherent dangers and uncertainties. A lot of components may trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: iHuman’s progress methods; its future enterprise improvement, monetary situation and outcomes of operations; its capability to proceed to draw and retain customers, convert non-paying customers into paying customers and improve the spending of paying customers, the traits in, and dimension of, the market through which iHuman operates; its expectations concerning demand for, and market acceptance of, its services and products; its expectations concerning its relationships with enterprise companions; common financial and enterprise situations; regulatory setting; and assumptions underlying or associated to any of the foregoing. Additional info concerning these and different dangers is included in iHuman’s filings with the SEC. All info supplied on this press launch is as of the date of this press launch, and iHuman doesn’t undertake any obligation to replace any forward-looking assertion, besides as required underneath relevant regulation.

About iHuman Inc.

iHuman Inc. is a number one supplier of tech-powered, mental improvement merchandise in China that’s dedicated to creating the child-upbringing expertise simpler for fogeys and reworking mental improvement right into a enjoyable journey for youngsters. Benefiting from a deep legacy that mixes over 20 years of expertise within the parenthood {industry}, superior unique content material, superior high-tech innovation DNA and analysis & improvement capabilities with cutting-edge applied sciences, iHuman empowers mother and father with instruments to make the child-upbringing expertise extra environment friendly. iHuman’s distinctive, enjoyable and interactive product choices stimulate kids’s pure curiosity and exploration. The Firm’s complete suite of progressive and high-quality merchandise embrace self-directed apps, interactive content material and sensible units that cowl a broad number of areas to develop kids’s talents in talking, vital pondering, unbiased studying and creativity, and foster their pure curiosity in conventional Chinese language tradition. Leveraging superior technological capabilities, together with 3D engines, AI/AR performance, and large information evaluation on kids’s habits & psychology, iHuman believes it should proceed to supply superior expertise that’s environment friendly and relieving for fogeys, and efficient and enjoyable for youngsters, in China and all around the world, via its built-in suite of tech-powered, mental improvement merchandise.

For extra details about iHuman, please go to https://ir.ihuman.com/.

For investor and media enquiries, please contact:

iHuman Inc.
Mr. Justin  Zhang
Investor Relations Director
Telephone: +86 10 5780-6606
E-mail: ir@ihuman.com  

Christensen
In China
Ms. Alice LiTelephone: +86-10-5900-1548
E-mail: alice.li@christensencomms.com  

Within the US
Ms. Linda BergkampTelephone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com