1. iHuman reported Q4 2024 revenue of RMB232.7 million, down 7.1%. 2. The company maintained profitability for 12 consecutive quarters. 3. Special cash dividend of US$0.02 per ordinary share approved. 4. Average MAUs increased to 25.78 million, a year-on-year rise. 5. R&D expenses declined, indicating potential efficiency improvements.
Consistent profitability and a dividend signal resilience. Similar patterns saw stocks like COGN historically rise following positive earnings momentum.
The article highlights financial performance indicators critical for investor confidence.
The dividend approval and profit reports can immediately rile investor interest, affecting short-term valuations.
("iHuman" or the "Company"), a leading provider of tech-powered, intellectual development products in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.
[1] "Average total MAUs" refers to the monthly average of the sum of the MAUs of each of the Company's apps during a specific period, which is counted based on the number of unique mobile devices through which such app is accessed at least once in a given month, and duplicate access to different apps is not eliminated from the total MAUs calculation.
Dr. Peng Dai, Director and Chief Executive Officer of iHuman, commented, "As we navigated evolving market conditions, we concluded 2024 with a robust and diversified product portfolio, further enhanced with more AI-integrated features that reinforces our leadership in the industry."
At the heart of our success is our long-standing dedication to technological innovation, particularly in artificial intelligence. Since establishing our AI Lab in 2018, we have consistently invested in cutting-edge advancements and seamlessly integrated them into our product offerings.
By embracing transformative technologies such as AI-generated content (AIGC), we became one of the first companies in China to develop and launch a proprietary large language model (LLM), a breakthrough that now powers a comprehensive range of our offerings and elevates our user experience to new heights.
Take iHuman Smart Coder as an example. Leveraging our LLM, we have transformed a traditional coding course into a highly engaging, personalized learning experience that provides real-time tailored guidance and support.
Children benefit from a personalized virtual coding mentor by their side that can analyze their code, pinpoint bugs, and provide corrective feedback through features such as intuitive voice prompts, graphics, and animations, making learning more fun and accessible.
Additionally, we have introduced an innovative learning framework that combines challenge-based exploration, project-driven creativity, and immersive robotics sessions.
Our robotics session features a 3D interactive blueprint that enables users to visualize each step of the build, making it possible to assemble intricate robots online. Together, these innovations create a coding experience that not only inspires and engages users, but also delivers tangible outcomes.
Within months of its launch, some young users successfully passed the online exam administered by the Chinese Institute of Electronics, earning the Blocks Programming Level 1 Certificate.
While pushing the boundaries of innovation from within, we also closely monitor emerging market trends, swiftly embracing new technological breakthroughs to enhance our products and maintain a competitive edge.
As we look ahead to 2025, I am confident that our forward-thinking approach—anchored in technological excellence and creative content—will keep us at the forefront of the industry and pave the way for another promising year of growth and innovation," concluded Dr. Dai.
Ms. Vivien Weiwei Wang, Director and Chief Financial Officer of iHuman, added, "Despite facing some pressure from evolving market conditions, we are proud to report another quarter of profitability, marking our 12th consecutive quarter of positive earnings and our third consecutive year of profitability since our IPO in 2020."
This consistent performance reflects the resilience of our business model and our ability to deliver sustainable growth.
Revenues were RMB232.7 million (US$31.9 million), a decrease of 7.1% from RMB250.4 million in the same period last year, primarily due to the decline in China's newborn population and more conservative consumer spending.
Cost of revenues was RMB76.2 million (US$10.4 million), compared with RMB72.2 million in the same period last year.
Gross profit was RMB156.4 million (US$21.4 million), a decrease of 12.2% from RMB178.2 million in the same period last year. Gross margin was 67.2%, compared with 71.2% in the same period last year.
The decrease in gross margin was mainly due to the diversification and structural upgrades of the Company's product portfolio, especially with an increased focus on the offline component of its integrated online-offline strategy to boost the overall appeal of its offerings.
Total operating expenses were RMB141.5 million (US$19.4 million), a decrease of 9.5% from RMB156.4 million in the same period last year.
Net income was RMB26.5 million (US$3.6 million), compared with RMB33.3 million in the same period last year.
For more detailed financial results, please refer to the full unaudited condensed consolidated financial statements.
iHuman Inc. is a leading provider of tech-powered, intellectual development products in China that is committed to making the child-upbringing experience easier for parents and transforming intellectual development into a fun journey for children.
For more information about iHuman, please visit ir.ihuman.com.