iHuman Inc. Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results
BEIJING, March 25, 2025 /PRNewswire/ -- iHuman Inc. (NYSE: IH) ("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.
Fourth Quarter 2024 Highlights
-- Revenues were RMB232.7 million (US$31.9 million), compared with RMB250.4
million in the same period last year.
-- Gross profit was RMB156.4 million (US$21.4 million), compared with
RMB178.2 million in the same period last year.
-- Operating income was RMB14.9 million (US$2.0 million), compared with
RMB21.9 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.
-- Average total MAUs([1]) for the fourth quarter were 25.78 million,
compared with 25.38 million in the same period last year.
Fiscal Year 2024 Highlights
-- Revenues were RMB922.2 million (US$126.3 million), compared with
RMB1,018.1 million in fiscal year 2023.
-- Gross profit was RMB640.2 million (US$87.7 million), compared with
RMB721.3 million in fiscal year 2023.
-- Operating income was RMB71.9 million (US$9.9 million), compared with
RMB159.9 million in fiscal year 2023.
-- Net income was RMB98.6 million (US$13.5 million), compared with RMB180.9
million in fiscal year 2023.
-- Average total MAUs were 26.47 million, compared with 23.04 million in
the fiscal year 2023.
[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. Our proprietary high-intelligence controller and custom code editor further enhance the experience, allowing children to program more sophisticated and intelligent robot behaviors. 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. Our early adoption of the revolutionary DeepSeek models--beginning with the V2 model in May 2024 and now fully integrating the latest R1 model across our core offerings--demonstrates our agility and forward-thinking approach. By seamlessly integrating our extensive in-house AI expertise with best-in-class third-party solutions, we deliver a more personalized, dynamic, and intelligent product experience that is tailored to each child's unique developmental needs and preferences.
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. Meanwhile, our board of directors has approved a special cash dividend of US$0.02 per ordinary share, or US$0.10 per American Depositary Share (ADS) for the second consecutive year, which reflects our confidence in the financials and commitment to delivering shareholder value.
During the quarter, our animation studio, Kunpeng, made significant strides in both commercialization and global expansion. Capitalizing on the breakout success of the Rainbow Crew animated series, unveiled in October 2024, we introduced themed merchandise, including magic wands and stickers, with additional products currently in development. These initiatives have further enhanced the brand's presence and deepened fan engagement across multiple touchpoints. Additionally, we launched an official Rainbow Crew channel on YouTube, sharing select clips from the series. These videos have received warm feedback and strong engagement, helping build awareness among international audiences, laying the foundation for the overseas expansion of the series.
In addition to enriching our product portfolio, we have also effectively leveraged popular social media platforms to broaden our influence and expand our market reach. Our in-house IP, Two Cats (liamiao)--designed to spark interest in English and develop language awareness through engaging comics--has gained significant traction on Red Note, amassing over 240,000 followers and nearly 700,000 likes and saves in just a few months. This highlights our ability to engage audiences across diverse platforms and build meaningful connections with our users.
As we continue to make solid progress with our business, we remain focused on driving product innovation through ongoing advancements in content and technology. We are committed to translating our strategic investments into lasting value for our shareholders, users, and the broader industry."
Fourth Quarter 2024 Unaudited Financial Results
Revenues
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.
Average total MAUs for the quarter were 25.78 million, compared with 25.38 million in the same period last year.
Cost of Revenues
Cost of revenues was RMB76.2 million (US$10.4 million), compared with RMB72.2 million in the same period last year.
Gross Profit and Gross Margin
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.
Operating Expenses
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.
Research and development expenses were RMB63.3 million (US$8.7 million), a decrease of 4.5% from RMB66.3 million in the same period last year.
Sales and marketing expenses were RMB54.1 million (US$7.4 million), a decrease of 16.1% from RMB64.5 million in the same period last year, primarily due to strategic savings in spending on marketing activities in the fourth quarter.
General and administrative expenses were RMB24.1 million (US$3.3 million), a decrease of 5.6% from RMB25.5 million in the same period last year, primarily due to decreases in share-based compensation, as well as other administrative expenses.
Operating Income
Operating income was RMB14.9 million (US$2.0 million), compared with RMB21.9 million in the same period last year.
Net Income
Net income was RMB26.5 million (US$3.6 million), compared with RMB33.3 million in the same period last year.
Basic and diluted net income per ADS were RMB0.51 (US$0.07) and RMB0.49 (US$0.07), respectively, compared with RMB0.63 and RMB0.61 in the same period last year. Each ADS represents five Class A ordinary shares of the Company.
Deferred Revenue and Customer Advances
Deferred revenue and customer advances were RMB283.3 million (US$38.8 million) as of December 31, 2024, compared with RMB318.6 million as of December 31, 2023.
Cash, Cash Equivalents and Short-term Investments
Cash, cash equivalents and short-term investments were RMB1,168.7 million (US$160.1 million) as of December 31, 2024, compared with RMB1,213.8 million as of December 31, 2023.
Fiscal Year 2024 Unaudited Financial Results
Revenues
Revenues were RMB922.2 million (US$126.3 million), a decrease of 9.4% from RMB1,018.1 million in fiscal year 2023, primarily due to the decline in China's newborn population and more conservative consumer spending.
Average total MAUs were 26.47 million, an increase of 14.9% year-over-year from 23.04 million in fiscal year 2023, primarily due to the effective execution of our user acquisition strategy, particularly with the user expansion in overseas markets.
Cost of Revenues
Cost of revenues was RMB282.0 million (US$38.6 million), a decrease of 5.0% year-over-year from RMB296.9 million in fiscal year 2023, primarily due to decreased channel costs.
Gross Profit and Gross Margin
Gross profit was RMB640.2 million (US$87.7 million), a decrease of 11.2% from RMB721.3 million in fiscal year 2023. Gross margin was 69.4%, compared with 70.8% in fiscal year 2023. 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.
Operating Expenses
Total operating expenses were RMB568.2 million (US$77.8 million), compared with RMB561.4 million in fiscal year 2023.
Research and development expenses were RMB247.8 million (US$33.9 million), a decrease of 3.8% from RMB257.5 million in fiscal year 2023.
Sales and marketing expenses were RMB221.2 million (US$30.3 million), an increase of 10.9% from RMB199.5 million in fiscal year 2023, primarily due to increased strategic spending on promotional activities, brand enhancement, and overseas expansion.
General and administrative expenses were RMB99.3 million (US$13.6 million), a decrease of 4.9% from RMB104.3 million in fiscal year 2023.
Operating Income
Operating income was RMB71.9 million (US$9.9 million), compared with RMB159.9 million in fiscal year 2023.
Net Income
Net income was RMB98.6 million (US$13.5 million), compared with RMB180.9 million in fiscal year 2023.
Basic and diluted net income per ADS were RMB1.88 (US$0.26) and RMB1.82 (US$0.25), respectively, compared with RMB3.43 and RMB3.30 in fiscal year 2023. Each ADS represents five Class A ordinary shares of the Company.
Special Cash Dividend
To deliver return of capital to shareholders, the Company's board of directors (the "Board") approved a special cash dividend of US$0.02 per ordinary share, or US$0.10 per ADS, to holders of ordinary shares and holders of ADSs as of the close of business on April 17, 2025 New York Time, payable in U.S. dollars. The aggregate amount of the special dividend will be approximately US$5.2 million. The payment date is expected to be on or around May 8, 2025 and May 15, 2025 for holders of ordinary shares and holders of ADSs, respectively.
Exchange Rate Information
The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 31, 2024, which was RMB7.2993 to US$1.00. The percentages stated in this press release are calculated based on the RMB amounts.
Non-GAAP Financial Measures
iHuman considers and uses non-GAAP financial measures, such as adjusted operating income, adjusted net income and adjusted diluted net income per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). iHuman defines adjusted operating income, adjusted net income and adjusted diluted net income per ADS as operating income, net income and diluted net income per ADS excluding share-based compensation expenses, respectively. Adjusted operating income, adjusted net income and adjusted diluted net income per ADS enable iHuman's management to assess its operating results without considering the impact of share-based compensation expenses, which are non-cash charges. iHuman believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose.
Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of the non-GAAP financial measures. In addition, the non-GAAP financial measures iHuman uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about iHuman's beliefs and expectations, are forward-looking statements. Among other things, the description of the management's quotations in this announcement contains forward-looking statements. iHuman may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iHuman's growth strategies; its future business development, financial condition and results of operations; its ability to continue to attract and retain users, convert non-paying users into paying users and increase the spending of paying users, the trends in, and size of, the market in which iHuman operates; its expectations regarding demand for, and market acceptance of, its products and services; its expectations regarding its relationships with business partners; general economic and business conditions; regulatory environment; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in iHuman's filings with the SEC. All information provided in this press release is as of the date of this press release, and iHuman does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About iHuman Inc.
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. Benefiting from a deep legacy that combines over two decades of experience in the parenthood industry, superior original content, advanced high-tech innovation DNA and research & development capabilities with cutting-edge technologies, iHuman empowers parents with tools to make the child-upbringing experience more efficient. iHuman's unique, fun and interactive product offerings stimulate children's natural curiosity and exploration. The Company's comprehensive suite of innovative and high-quality products include self-directed apps, interactive content and smart devices that cover a broad variety of areas to develop children's abilities in speaking, critical thinking, independent reading and creativity, and foster their natural interest in traditional Chinese culture. Leveraging advanced technological capabilities, including 3D engines, AI/AR functionality, and big data analysis on children's behavior & psychology, iHuman believes it will continue to provide superior experience that is efficient and relieving for parents, and effective and fun for children, in China and all over the world, through its integrated suite of tech-powered, intellectual development products.
For more information about iHuman, please visit https://ir.ihuman.com/.
For investor and media enquiries, please contact:
iHuman Inc.
Mr. Justin Zhang
Investor Relations Director
Phone: +86-10-5780-6606
E-mail: ir@ihuman.com
Christensen
In China
Ms. Alice Li
Phone: +86-10-5900-1548
E-mail: alice.li@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: linda.bergkamp@christensencomms.com
iHuman Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
except for number of shares, ADSs
,
per share and per ADS data)
December December
3 3
1 1
December 31, , ,
2023 2024 2024
RMB RMB US$
ASSETS
Current assets
Cash and cash equivalents 1,213,767 1,123,292 153,890
Short-term investments - 45,457 6,228
Accounts receivable, net 60,832 52,030 7,128
Inventories, net 16,518 23,475 3,216
Amounts due from related parties 1,810 2,051 281
Prepayments and other current assets 89,511 89,512 12,263
Total current assets 1,382,438 1,335,817 183,006
Non-current assets
Property and equipment, net 6,169 3,476 476
Intangible assets, net 23,245 16,429 2,251
Operating lease right-of-use assets 3,648 14,885 2,039
Long-term investment 26,333 26,333 3,608
Other non-current assets 8,662 22,701 3,110
Total non-current assets 68,057 83,824 11,484
Total assets 1,450,495 1,419,641 194,490
LIABILITIES
Current liabilities
Accounts payable 22,139 30,233 4,142
Deferred revenue and customer advances 318,587 283,251 38,805
Amounts due to related parties 4,428 1,734 238
Accrued expenses and other current liabilities 143,677 126,501 17,331
Dividend payable - 2,164 296
Current operating lease liabilities 1,927 3,661 502
Total current liabilities 490,758 447,544 61,314
Non-current liabilities
Non-current operating lease liabilities 1,933 11,252 1,542
Total non-current liabilities 1,933 11,252 1,542
Total liabilities 492,691 458,796 62,856
SHAREHOLDERS' EQUITY
Ordinary shares (par value of US$0.0001 per share, 185 185 25
700,000,000 Class A shares authorized as of
December 31, 2023 and December 31, 2024;
125,122,382 Class A shares issued and 119,704,787
outstanding as of December 31, 2023; 125,122,382
Class A shares issued and 116,084,207 outstanding as
of December 31, 2024; 200,000,000 Class B shares
authorized, 144,000,000 Class B ordinary shares
issued and outstanding as of December 31, 2023 and
December 31, 2024; 100,000,000 shares
(undesignated) authorized, nil shares (undesignated)
issued and outstanding as of December 31, 2023 and
December 31, 2024)
Additional paid-in capital 1,088,628 996,657 136,541
Treasury stock (16,665) (26,296) (3,603)
Statutory reserves 8,164 8,395 1,150
Accumulated other comprehensive income 17,955 24,009 3,289
Accumulated deficit (140,463) (42,105) (5,768)
Total shareholders' equity 957,804 960,845 131,634
Total liabilities and shareholders' equity 1,450,495 1,419,641 194,490
iHuman Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
except for number of shares, ADSs, per share and per ADS data)
For the three months ended For the year ended
December 31, September 30, December 31, December 31, December 31, December 31, December 31,
2023 2024 2024 2024 2023 2024 2024
RMB RMB RMB US$ RMB RMB US$
Revenues 250,447 239,407 232,684 31,878 1,018,139 922,201 126,341
Cost of revenues (72,201) (75,541) (76,243) (10,445) (296,868) (282,048) (38,640)
Gross profit 178,246 163,866 156,441 21,433 721,271 640,153 87,701
Operating expenses
Research and development expenses (66,293) (59,307) (63,308) (8,673) (257,546) (247,757) (33,943)
Sales and marketing expenses (64,511) (60,863) (54,109) (7,413) (199,504) (221,230) (30,308)
General and administrative expenses (25,547) (22,998) (24,106) (3,303) (104,334) (99,254) (13,598)
Total operating expenses (156,351) (143,168) (141,523) (19,389) (561,384) (568,241) (77,849)
Operating income 21,895 20,698 14,918 2,044 159,887 71,912 9,852
Other income, net 8,965 8,024 12,245 1,678 42,686 38,689 5,300
Income before income taxes 30,860 28,722 27,163 3,722 202,573 110,601 15,152
Income tax benefits (expenses) 2,411 (3,579) (682) (93) (21,666) (12,012) (1,646)
Net income 33,271 25,143 26,481 3,629 180,907 98,589 13,506
Net income per ADS:
- Basic 0.63 0.48 0.51 0.07 3.43 1.88 0.26
- Diluted 0.61 0.47 0.49 0.07 3.30 1.82 0.25
Weighted average number of ADSs:
- Basic 52,740,067 52,283,334 52,097,127 52,097,127 52,810,587 52,400,383 52,400,383
- Diluted 54,753,503 54,011,420 53,965,183 53,965,183 54,753,025 54,239,751 54,239,751
Total share-based compensation expenses included in:
Cost of revenues 64 22 18 2 299 106 15
Research and development expenses 1,115 225 273 37 4,055 1,303 179
Sales and marketing expenses 122 39 34 5 707 164 22
General and administrative expenses 817 329 229 31 4,374 1,251 171
iHuman Inc.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
except for number of shares, ADSs, per share and per ADS data)
For the three months ended For the year ended
December 31, September 30, December 31, December 31, December 31, December 31, December 31,
2023 2024 2024 2024 2023 2024 2024
RMB RMB RMB US$ RMB RMB US$
Operating income 21,895 20,698 14,918 2,044 159,887 71,912 9,852
Share-based compensation expenses 2,118 615 554 75 9,435 2,824 387
Adjusted operating income 24,013 21,313 15,472 2,119 169,322 74,736 10,239
Net income 33,271 25,143 26,481 3,629 180,907 98,589 13,506
Share-based compensation expenses 2,118 615 554 75 9,435 2,824 387
Adjusted net income 35,389 25,758 27,035 3,704 190,342 101,413 13,893
Diluted net income per ADS 0.61 0.47 0.49 0.07 3.30 1.82 0.25
Impact of non-GAAP adjustments 0.04 0.01 0.01 0.00 0.18 0.05 0.01
Adjusted diluted net income per ADS 0.65 0.48 0.50 0.07 3.48 1.87 0.26
Weighted average number of ADSs - diluted 54,753,503 54,011,420 53,965,183 53,965,183 54,753,025 54,239,751 54,239,751
Weighted average number of ADSs - adjusted 54,753,503 54,011,420 53,965,183 53,965,183 54,753,025 54,239,751 54,239,751
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SOURCE iHuman Inc.
