Scienjoy Holding Corporation Reports Unaudited First Quarter 2025 Financial Results

Income from Operations up 33.3% Year Over Year

BEIJING, June 4, 2025 /PRNewswire/ -- Scienjoy Holding Corporation ("Scienjoy", the "Company", or "we") (NASDAQ: SJ), an interactive entertainment leader in the Chinese market, today announced its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Operating and Financial Summaries

    --  Total revenues decreased to RMB307.3 million (US$42.4 million) in the
        first quarter of 2025 from RMB316.3 million in the same period of 2024.


    --  Gross profit increased by 12.1% to RMB59.5 million (US$8.2 million) in
        the first quarter of 2025 from RMB53.1 million in the same period of
        2024. Gross margin increased to 19.4% in the first quarter of 2025 from
        16.8% in the same period of 2024.


    --  Income from operations increased by 33.3% to RMB13.7 million (US$1.9
        million) in the first quarter of 2025 from RMB10.3 million in the same
        period of 2024.


    --  Net loss was RMB13.0 million (US$1.8 million) in the first quarter of
        2025, as compared to a net income of RMB2.8 million in the same period
        of 2024.


    --  Net loss attributable to the Company's shareholders was RMB9.1 million
        (US$1.3 million) in the first quarter of 2025, as compared to a net
        income attributable to the Company's shareholders of RMB6.6 million in
        the same period of 2024.


    --  Adjusted net loss attributable to the Company's shareholders was RMB5.5
        million (US$0.8 million) in the first quarter of 2025, as compared to a
        net income adjusted attributable to the Company's shareholders of RMB9.0
        million in the same period of 2024.
    --  As of March 31, 2025, the Company had RMB286.5 million (US$39.5 million)
        in cash and cash equivalents, which represented an increase of RMB33.9
        million from RMB252.5 million as of December 31, 2024.

Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "Our first quarter results reflect our continued focus on operational efficiency and strategic cost management. Despite a slight decline in total revenues, we achieved a substantial increase in gross profit and gross margin. These results underscore our unwavering commitment to executing our long-term growth strategy, particularly advancing our global expansion through our Dubai hub and continuing to scale in the dynamic Middle East and beyond. Our Dubai subsidiary has established a strong foundation for our dual model in the AI sector, combining a compelling AI-focused app with a growing user base and a complementary offline presence that not only generates revenue but also serves as a marketing funnel. The momentum from late 2024 through the first quarter of 2025 reflects strong execution in this strategy and lays a solid platform for further global expansion in subsequent quarters. Moving forward, we remain confident in our ability to drive operational excellence, scale globally, and remain agile in response to market dynamics. With clear objectives in place, we believe we are well-positioned for sustainable long-term shareholder value creation."

Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "We are encouraged by the resilience of our business in the first quarter of 2025. Our income from operations increased by 33.3% year over year, demonstrating the ongoing effectiveness of our disciplined cost management and our capability to extract greater value from a more targeted paying user base. Although we reported a net loss this quarter, the strength of our core operations was not impacted, as evidenced by the significant increases in both income from operations and gross profit. Additionally, the increase in cash reserves reinforces our financial stability and ability to support future sustainable growth. We believe the progress we have achieved in fiscal year 2024 has laid a solid foundation for continued momentum in 2025. Looking ahead, we will remain focused on executing our strategic priorities while advancing our innovation roadmap, with renewed confidence and resolution to pursue high-quality growth and operational efficiency."

First Quarter 2025 Financial Results

Total revenues decreased to RMB307.3 million (US$42.4 million) in the first quarter of 2025 from RMB316.3 million in the same period of 2024, primarily caused by a decrease in paying users due to competitive landscape of China's mobile live streaming market. Total paying users were 151,971 in the first quarter of 2025, as compared to 164,044 in the same period of 2024.

Cost of revenues decreased to RMB247.8 million (US$34.2 million) in the first quarter of 2025 from RMB263.2 million in the same period of 2024. The decrease was primarily attributable to a decrease of RMB22.9 million in the Company's revenue sharing fees due to the fact that the Company already had a stable market share, offset by an increase of RMB7.0 million in the Company's user acquisition costs.

Gross profit increased by 12.1% to RMB59.5 million (US$8.2 million) in the first quarter of 2025 from RMB53.1 million in the same period of 2024. The gross margin increased to 19.4% in the first quarter of 2025 from 16.8% in the same period of 2024 due to higher average live streaming revenue per paying user ("ARPPU") during the first quarter of 2025, showing the Company's effectiveness in converting high-quality paying user to its profit growth.

Total operating expenses increased by 7.0% to RMB45.8 million (US$6.3 million) in the first quarter of 2025 from RMB42.8 million in the same period of 2024.

    --  Sales and marketing expenses increased by 6.3% to RMB2.1 million (US$0.3
        million) in the first quarter of 2025 from RMB2.0 million in the same
        period of 2024, primarily attributable to more marketing activities.


    --  General and administrative expenses increased by 17.2% to RMB23.4
        million (US$3.2 million) in the first quarter of 2025 from RMB19.9
        million in the same period of 2024. The increase was primarily due to an
        increase of RMB3.8 million in professional consultant fee.


    --  Research and development expenses decreased to RMB19.6 million (US$2.7
        million) in the first quarter of 2025 from RMB21.5 million in the same
        period of 2024, due to a decrease of RMB2.4 million in technical service
        fee.
    --  Provision for credit losses was RMB0.8 million (US$0.1 million) in the
        first quarter of 2025, as compared to a recovery of credit losses of
        RMB0.6 million in the same period of 2024, due to slow collection.

Income from operations increased by 33.3% to RMB13.7 million (US$1.9 million) in the first quarter of 2025 from RMB10.3 million in the same period of 2024.

Change in fair value of investment in marketable security increased by 654.1% to loss of RMB24.3 million (US$3.4 million) in the first quarter of 2025 from loss of RMB3.2 million in the same period of 2024. The change was primarily attributable to the fair value changes in investments in a publicly traded company.

Investment loss decreased to RMB0.4 million (US$0.1 million) in the first quarter of 2025, as compared to an investment loss of RMB2.2 million in the same period of 2024. The investment loss was primarily attributable to share of unrealized loss in long-term investments.

Net loss was RMB13.0 million (US$1.8 million) in the first quarter of 2025, as compared to a net income of RMB2.8 million in the same period of 2024. Despite delivering a 33.3% increase in income from operation, the Company reported a net loss for the first quarter of 2025, primarily attributable to an unrealized loss of RMB 24.3 million from change in fair value of investment in marketable security.

Net loss attributable to the Company's shareholders was RMB9.1 million (US$1.3 million) in the first quarter of 2025, as compared to a net income attributable to the Company's shareholders of RMB6.6 million in the same period of 2024.

Adjusted net loss attributable to the Company's shareholders was RMB5.5 million (US$0.8 million) in the first quarter of 2025, as compared to a net income adjusted attributable to the Company's shareholders of RMB9.0 million in the same period of 2024.

Basic and diluted net loss attributable to the Company's shareholders per ordinary share were both RMB0.22 (US$0.03) in the first quarter of 2025. In comparison, basic and diluted net income attributable to the Company's shareholders per ordinary share were both RMB0.16 in the same period of 2024.

Adjusted basic and diluted net loss attributable to the Company's shareholders per ordinary share were both RMB0.13 (US$0.02) in the first quarter of 2025. In comparison, adjusted basic and diluted net income attributable to the Company's shareholders per ordinary share were both RMB0.22 in the same period of 2024.

As of March 31, 2025, the Company had cash and cash equivalent balance of RMB286.5 million (US$39.5 million), which represented an increase of RMB33.9 million from RMB252.5 million as of December 31, 2024.

About Scienjoy Holding Corporation

Scienjoy is a pioneering Nasdaq-listed interactive entertainment leader. Driven by the vision of shaping a metaverse lifestyle, Scienjoy leverages AI-powered technology to create immersive experiences that resonate with global audiences, fostering meaningful connections and redefining entertainment. For more information, please visit http://ir.scienjoy.com/.

Use of Non-GAAP Financial Measures

Adjusted net income is calculated as net income adjusted for change in fair value of contingent consideration, change in fair value of warrant liability and share based compensation. Adjusted basic and diluted net income per ordinary share is non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with US GAAP.

For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB amounts could have been, or could be, converted, realized or settled in U.S. dollars at that rate on March 31, 2025, or at any other rate.

Safe Harbor Statement

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission ("SEC") from time to time. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.

For investor and media inquiries, please contact:

Investor Relations Contacts

Denny Tang
Chief Financial Officer
Scienjoy Holding Corporation
+86-10-64428188
ir@scienjoy.com

Ascent Investor Relations LLC

Tina Xiao
+1-646-932-7242
investors@ascent-ir.com


                                                                       
            
              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                                                             
            (All amounts in thousands, except share and per share data or otherwise stated)




                                                                                                                                                                As of                
     
             As of

                                                                                                                                                                December 31
                                                                                                                                                                          ,                      March 31,


                                                                                                                                                         2024               2025         2025


                                                                                                                                                                RMB                      RMB               US$



           
              ASSETS



           
              Current assets



           Cash and cash equivalents                                                                                                                   252,540              286,482         39,478



           Accounts receivable, net                                                                                                                    226,060              208,242         28,697



           Prepaid expenses and other current assets                                                                                                    28,415               30,424          4,193



           Amounts due from related parties                                                                                                                                    100             14



           Investment in marketable security                                                                                                            37,629               13,295          1,832



           
              Total current assets                                                                                                             544,644              538,543         74,214





           
              Non-current assets



           Property and equipment, net                                                                                                                   1,981                1,839            253



           Intangible assets, net                                                                                                                      405,256              403,519         55,606



           Goodwill                                                                                                                                    182,661              182,619         25,166



           Long term investments                                                                                                                       257,387              256,890         35,400



           Long term deposits and other assets                                                                                                             906                  906            125



           Right-of-use assets-operating lease                                                                                                           4,845               19,614          2,703



           Deferred tax assets                                                                                                                           7,505                7,600          1,047



           
              Total non-current assets                                                                                                         860,541              872,987        120,300



           
              TOTAL ASSETS                                                                                                                   1,405,185            1,411,530        194,514





           
              LIABILITIES AND EQUITY



           
              Current liabilities



           Accounts payable                                                                                                                             36,015               29,623          4,079



           Accrued salary and employee benefits                                                                                                         22,346               24,367          3,358



           Accrued expenses and other current liabilities                                                                                                6,840                9,585          1,321



           Income tax payable                                                                                                                           11,284               12,960          1,786



           Lease liabilities-operating lease -current                                                                                                    4,098                5,693            785



           Deferred revenue                                                                                                                             80,186               82,276         11,338



           
              Total current liabilities                                                                                                        160,769              164,504         22,667





           
              Non-current liabilities



           Deferred tax liabilities                                                                                                                     58,400               58,045          7,999



           Lease liabilities-operating lease -non-current                                                                                                  700               12,725          1,754



           
              Total non-current liabilities                                                                                                     59,100               70,770          9,753



           
              TOTAL LIABILITIES                                                                                                                219,869              235,274         32,420





           
              Commitments and contingencies





           
              EQUITY



           Ordinary share, no par value, unlimited Class A ordinary shares and
      Class B ordinary shares authorized, 38,922,726 Class A ordinary
      shares and 2,925,058 Class B ordinary shares issued and outstanding
      as of December 31, 2024, respectively. 39,078,340 Class A ordinary
      shares and 2,925,058 Class B ordinary shares issued and outstanding
      as of March 31, 2025, respectively.



           Class A ordinary shares                                                                                                                     444,162              447,737         61,700



           Class B ordinary shares                                                                                                                      23,896               23,896          3,293



           Shares to be issued                                                                                                                          20,817               20,817          2,869



           Treasury stocks                                                                                                                            (19,952)            (19,952)       (2,749)



           Statutory reserves                                                                                                                           50,705               51,326          7,073



           Retained earnings                                                                                                                           662,499              652,788         89,957



           Accumulated other comprehensive income                                                                                                       16,967               17,339          2,389



           
              Total shareholders' equity                                                                                                     1,199,094            1,193,951        164,532



           Non-controlling interests                                                                                                                  (13,778)            (17,695)       (2,438)



           
              Total equity                                                                                                                   1,185,316            1,176,256        162,094



           
              TOTAL LIABILITIES AND EQUITY                                                                                                   1,405,185            1,411,530        194,514


                                   
              
                UNAUDITED CONDENSED 
                CONSOLIDATED STATEMENTS OF OPERATIONS AND
                                                                       COMPREHENSIVE INCOME (LOSS)


                                       
              (All amounts in thousands, except share and per share data or otherwise stated)




                                                                                                                                            For three months ended


                                                                                                                                      March 31,                               March 31,     March 31,


                                                                                                                      2024                    2025                 2025


                                                                                                                                      RMB                                RMB            US$



             Live streaming - consumable virtual items                                                              309,015                   294,474                 40,580
      revenue



             Live streaming - time based virtual item revenue                                                         5,974                     4,858                    669



             Technical services and others                                                                            1,310                     8,003                  1,103



             
                Total revenue                                                                             316,299                   307,335                 42,352



             Cost of revenues                                                                                     (263,212)                (247,842)              (34,154)



             
                Gross profit                                                                               53,087                    59,493                  8,198



             Sales and marketing expenses                                                                           (1,988)                  (2,113)                 (291)



             General and administrative expenses                                                                   (19,930)                 (23,352)               (3,218)



             Research and development expenses                                                                     (21,527)                 (19,562)               (2,696)



             Recovery of (provision for) credit losses                                                                  643                     (754)                 (102)



             
                Income from operations                                                                     10,285                    13,712                  1,891



             Change in fair value of investment in marketable                                                       (3,227)                 (24,334)               (3,353)
      security



             Investments loss                                                                                       (2,240)                    (412)                  (57)



             Interest income, net                                                                                     1,979                       539                     74



             Other income, net                                                                                          113                     1,433                    197



             Foreign exchange (loss) gain, net                                                                          534                   (1,016)                 (140)



             
                Income (loss) before income taxes                                                           7,444                  (10,078)               (1,388)



             Income tax expense                                                                                     (4,638)                  (2,880)                 (397)



             
                Net income (loss)                                                                           2,806                  (12,958)               (1,785)



             
                Less: net loss attributable to noncontrolling                                             (3,774)                  (3,868)                 (533)
      interest



             
                Net income (loss) attributable to the                                                       6,580                   (9,090)               (1,252)
      Company's shareholders





             
                Other comprehensive income(loss):



             Other comprehensive (loss) income - foreign                                                              (436)                      323                     45
      currency translation adjustment



             
                Comprehensive income (loss)                                                                 2,370                  (12,635)               (1,740)



             Less: comprehensive loss attributable to non-                                                          (3,774)                  (3,917)                 (533)
      controlling interests



             
                Comprehensive income (loss) attributable to                                                 6,144                   (8,718)               (1,207)
      the Company's shareholders





             
                Weighted average number of shares



             
                Basic                                                                                  41,164,872                41,563,935             41,563,935



             
                Diluted                                                                                41,164,872                41,563,935             41,563,935





             
                E
                arnings
                 (loss)
                 per share



             
                Basic                                                                                        0.16                    (0.22)                (0.03)



             
                D
                iluted                                                                         0.16                    (0.22)                (0.03)


                                                                   
              
                Reconciliations of Non-GAAP Results


                                                   
              (All amounts in thousands, except share and per share data or otherwise stated)




                                                                                                                                                      For the three months ended


                                                                                                                                                      March 31,                               March 31,     March 31,


                                                                                                                                               2024      2025                  2025


                                                                                                                                                      RMB                                 RMB           US$



             
                Net income (loss) attributable to the Company's shareholders                                                         6,580     (9,090)                 (1,252)



             Less:



             Share based compensation                                                                                                        (2,435)     (3,575)                   (493)



             
                Adjusted net income (loss) attributable to the Company's                                                             9,015     (5,515)                   (759)
      shareholders*





             
                Adjusted net income (loss) per ordinary share



             Basic                                                                                                                              0.22      (0.13)                 (0.02)



             Diluted                                                                                                                            0.22      (0.13)                 (0.02)

"Adjusted net income (loss) attributable to the Company's shareholders" is defined as net income (loss) attributable to the Company's shareholders excluding share based compensation. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" at the end of this press release.

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SOURCE Scienjoy Holding Corporation