BEIJING, June 21,
2022 /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
first quarter ended March 31, 2022.
First Quarter 2022 Highlights
- Revenues were RMB242.7 million
(US$38.3 million), a year-over-year
increase of 7.1%.
- Gross profit was RMB169.9 million
(US$26.8 million), a year-over-year
increase of 5.4%.
- Operating income was RMB11.3
million (US$1.8 million), a
year-over-year increase of 209.7%.
- Adjusted operating income[1] was RMB13.3
million (US$2.1 million), a
year-over-year increase of 23.8%.
- Net income was RMB13.1 million
(US$2.1 million), a year-over-year
increase of 83.6%.
- Adjusted net income[1] was RMB15.1
million (US$2.4 million), a
year-over-year increase of 6.1%.
- Average total MAUs[2] reached a record high of 18.39
million, a year-over-year increase of 14.1%.
Dr. Peng Dai, Director and Chief
Executive Officer of iHuman, commented, "We kicked off 2022 with
another solid quarter as average total MAUs reached a record high
of 18.39 million during the period. The robust user growth was
driven largely by word-of-mouth referrals which reflects our strong
brand recognition and effective user retention strategies. As we
continue to progress on achieving our vision of making the
child-upbringing experience easier for parents and transforming
cognitive development into a fun journey for children, we continued
to build upon our market-leading products and technological
capabilities and enhanced our portfolio to better assist parents
with fun tools to support their kids' well-rounded development. For
example, we expanded the content of iHumanpedia with a new
dinosaur module, a highly popular theme amongst children. While
solidifying our leading position in the domestic market, we have
simultaneously increased our efforts in exploring new growth
opportunities in international markets to fulfill the increasing
demand for high-quality and easily accessible products like ours.
Leveraging our extensive industry know-how, market-proven products,
and cross-market synergies, we expect that our international
business will further broaden our market reach and become a new
growth engine going forward."
Ms. Vivien Weiwei Wang, Director
and Chief Financial Officer of iHuman, added, "We are pleased with
our performance in the first quarter and believe we are off to a
good start in 2022. During the quarter, we continued to see robust
underlying demand among families for our self-directed and
interactive products that engage children in ways that stimulate
their natural curiosity for the world and promote healthy and
all-around development. We maintained a keen focus on cementing our
market-leading position by expanding the product lineup and
enhancing our technological capabilities. We have also taken
initiatives and further broadened our investments in smart devices
in order to better support the needs of children and parents.
Looking ahead, we will work diligently to develop new products to
keep up with the growing market demand and offer our users a more
flexible and holistic experience when they use our products, which
we believe will ultimately lead to an increase in their lifetime
value. We will strive to continue scaling our business and creating
more value for our shareholders."
First Quarter 2022 Unaudited Financial Results
Revenues
Revenues were RMB242.7 million
(US$38.3 million), an increase of
7.1% from RMB226.7 million in the
same period last year, primarily driven by further user growth and
enhanced user engagement.
Average total MAUs for the quarter were 18.39 million, an
increase of 14.1% year-over-year from 16.12 million in the same
period last year. The number of paying users[3] for the quarter was 1.61
million.
Cost of Revenues
Cost of revenues was RMB72.8
million (US$11.5 million), an
increase of 11.3% from RMB65.4
million in the same period last year, primarily due to an
increase in channel costs and payroll-related expenses, which was
in line with the Company's revenue expansion.
Gross Profit and Gross Margin
Gross profit was RMB169.9 million
(US$26.8 million), an increase of
5.4% from RMB161.3 million in the
same period last year. Gross margin was 70.0%, compared with 71.1%
in the same period last year.
Operating Expenses
Total operating expenses were RMB158.6
million (US$25.0 million), an
increase of 0.6% from RMB157.6
million in the same period last year. Excluding share-based
compensation expenses, total operating expenses were RMB156.7 million, an increase of 3.9% from the
same period last year.
Research and development expenses were RMB96.6 million (US$15.2
million), an increase of 17.7% from RMB82.1 million in the same period last year.
Excluding share-based compensation expenses, the research and
development expenses were RMB95.7
million, an increase of 22.0% from the same period last
year, primarily due to a rise in payroll-related expenses and
rental expenses as the Company continued to expand its research and
development capabilities, and enhance and develop its tech-powered,
intellectual development products.
Sales and marketing expenses were RMB35.9
million (US$5.7 million), a
decrease of 32.2% from RMB52.9
million in the same period last year. Excluding share-based
compensation expenses, the sales and marketing expenses were
RMB36.0 million, a decrease of 30.4%
from the same period last year, primarily due to an economical and
optimized advertising strategy.
General and administrative expenses were RMB26.1 million (US$4.1 million), an increase of 15.5% from
RMB22.6 million in the same period
last year. Excluding share-based compensation expenses, the general
and administrative expenses were RMB25.0
million, an increase of 21.2% from the same period last
year, primarily due to an increase in payroll-related
expenses.
Operating Income
Operating income was RMB11.3
million (US$1.8 million), an
increase of 209.7% from RMB3.6
million in the same period last year.
Excluding share-based compensation expenses, adjusted operating
income was RMB13.3 million
(US$2.1 million), an increase of
23.8% from RMB10.7 million in the
same period last year.
Net Income
Net income was RMB13.1 million
(US$2.1 million), an increase of
83.6% from RMB7.1 million in the same
period last year.
Adjusted net income was RMB15.1
million (US$2.4 million), an
increase of 6.1% from RMB14.2 million
in the same period last year.
Basic and diluted net income per ADS were RMB0.25 (US$0.04) and RMB0.24 (US$0.04), respectively, compared
with RMB0.13 and RMB0.13 in the same period last year. Each ADS
represents five Class A ordinary shares of the Company.
Adjusted diluted net income per ADS was RMB0.28 (US$0.04),
compared with RMB0.26 in the same
period last year.
Deferred Revenue and Customer
Advances
Deferred revenue and customer advances were RMB317.9 million (US$50.1
million) as of March 31, 2022,
compared with RMB303.0 million as of
December 31, 2021.
Cash, Cash Equivalents and Time Deposits
Cash, cash equivalents and time deposits were RMB794.1 million (US$125.3
million) as of March 31, 2022,
compared with RMB855.4 million as of
December 31, 2021.
[1] "Adjusted operating
income" and "adjusted net income" exclude share-based compensation
expenses. Please see "Non-GAAP Financial Measures" and "Unaudited
Reconciliation of GAAP and non-GAAP Results" at the end of this
press release.
|
[2] "Average total
MAUs" refers to the monthly average of the sum of the MAUs of each
of the Company's apps during a specific period, which is counted
based on the number of unique mobile devices through which such app
is accessed at least once in a given month, and duplicate access to
different apps is not eliminated from the total MAUs
calculation.
|
[3] "Paying users"
refers to users who paid subscription fees for premium content on
any of the Company's apps during a specific period; a user who
makes payments across different apps using the same registered
account is counted as one paying user, and a user who makes
payments for the same app multiple times in the same period is
counted as one paying user.
|
Exchange Rate Information
The U.S. dollar (US$) 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 March 31, 2022,
which was RMB6.3393 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-rearing experience easier for
parents and transforming cognitive 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
Mr. Eric Yuan
Phone: +86-13801110739
E-mail: Eyuan@christensenir.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: lbergkamp@christensenir.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
31,
|
|
March
31,
|
|
March
31,
|
|
2021
|
|
2022
|
|
2022
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
855,362
|
|
717,908
|
|
113,247
|
Time
deposits
|
-
|
|
76,178
|
|
12,017
|
Accounts receivable,
net
|
56,132
|
|
88,455
|
|
13,953
|
Inventories,
net
|
28,054
|
|
24,347
|
|
3,841
|
Amounts due from
related parties
|
2,845
|
|
2,969
|
|
468
|
Prepayments and other
current assets
|
72,851
|
|
79,628
|
|
12,561
|
Total current
assets
|
1,015,244
|
|
989,485
|
|
156,087
|
Non-current
assets
|
|
|
|
|
|
Property and
equipment, net
|
12,286
|
|
11,662
|
|
1,840
|
Intangible assets,
net
|
27,287
|
|
27,673
|
|
4,365
|
Operating
lease right-of-use assets
|
38,237
|
|
32,759
|
|
5,168
|
Long-term
investment
|
-
|
|
26,333
|
|
4,154
|
Amounts due from
related parties
|
4,223
|
|
3,426
|
|
540
|
Other non-current
assets
|
3,604
|
|
2,822
|
|
446
|
Total non-current
assets
|
85,637
|
|
104,675
|
|
16,513
|
Total
assets
|
1,100,881
|
|
1,094,160
|
|
172,600
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
30,536
|
|
24,805
|
|
3,913
|
Deferred revenue and
customer advances
|
302,980
|
|
317,853
|
|
50,140
|
Amounts due to related
parties
|
8,853
|
|
17,458
|
|
2,754
|
Accrued expenses and
other current liabilities
|
115,895
|
|
87,204
|
|
13,756
|
Current operating
lease liabilities
|
24,669
|
|
24,636
|
|
3,886
|
Total current
liabilities
|
482,933
|
|
471,956
|
|
74,449
|
Non-current
liabilities
|
|
|
|
|
|
Non-current operating
lease liabilities
|
9,577
|
|
3,788
|
|
598
|
Total non-current
liabilities
|
9,577
|
|
3,788
|
|
598
|
Total
liabilities
|
492,510
|
|
475,744
|
|
75,047
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share,
700,000,000 Class A shares authorized as of December
31, 2021
and March 31, 2022; 125,122,382 Class A
shares
issued and 123,852,667 outstanding as of
December
31, 2021; 125,122,382 Class A shares issued
and
122,911,712 outstanding as of March 31, 2022;
200,000,000 Class B shares authorized, 144,000,000
Class B
ordinary shares issued and outstanding as of
December
31, 2021 and March 31, 2022; 100,000,000
shares
(undesignated) authorized, nil shares
(undesignated) issued and outstanding as of December 31,
2021 and
March 31, 2022)
|
185
|
|
185
|
|
29
|
Additional paid-in
capital
|
1,066,052
|
|
1,068,012
|
|
168,475
|
Treasury
stock
|
(164)
|
|
(3,104)
|
|
(490)
|
Accumulated other
comprehensive loss
|
(34,677)
|
|
(36,770)
|
|
(5,800)
|
Accumulated
deficit
|
(423,025)
|
|
(409,907)
|
|
(64,661)
|
Total shareholders'
equity
|
608,371
|
|
618,416
|
|
97,553
|
Total liabilities
and shareholders' equity
|
1,100,881
|
|
1,094,160
|
|
172,600
|
iHuman Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
except for number of
shares, ADSs, per share and per ADS data)
|
|
|
For the three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
2021
|
|
2022
|
|
2022
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
Revenues
|
226,658
|
|
242,679
|
|
38,282
|
Cost of
revenues
|
(65,404)
|
|
(72,797)
|
|
(11,484)
|
|
|
|
|
|
|
Gross
profit
|
161,254
|
|
169,882
|
|
26,798
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Research and
development expenses
|
(82,112)
|
|
(96,625)
|
|
(15,242)
|
Sales and marketing
expenses
|
(52,927)
|
|
(35,906)
|
|
(5,664)
|
General and
administrative expenses
|
(22,569)
|
|
(26,058)
|
|
(4,111)
|
Total operating
expenses
|
(157,608)
|
|
(158,589)
|
|
(25,017)
|
Operating
income
|
3,646
|
|
11,293
|
|
1,781
|
Other income,
net
|
3,545
|
|
3,347
|
|
528
|
Income before income
taxes
|
7,191
|
|
14,640
|
|
2,309
|
Income tax
expenses
|
(45)
|
|
(1,522)
|
|
(240)
|
Net
income
|
7,146
|
|
13,118
|
|
2,069
|
|
|
|
|
|
|
Net income per
ADS:
|
|
|
|
|
|
-
Basic
|
0.13
|
|
0.25
|
|
0.04
|
-
Diluted
|
0.13
|
|
0.24
|
|
0.04
|
|
|
|
|
|
|
Weighted average
number of ADSs:
|
|
|
|
|
|
-
Basic
|
53,324,476
|
|
53,476,316
|
|
53,476,316
|
-
Diluted
|
55,132,687
|
|
54,060,837
|
|
54,060,837
|
|
|
|
|
|
|
Total share-based
compensation expenses included
in:
|
|
|
|
|
|
Cost of
revenues
|
267
|
|
64
|
|
10
|
Research and
development expenses
|
3,711
|
|
967
|
|
153
|
Sales and marketing
expenses
|
1,177
|
|
(88)
|
|
(14)
|
General and
administrative expenses
|
1,903
|
|
1,014
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iHuman Inc.
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
except for number of
shares, ADSs, per share and per ADS data)
|
|
|
For the three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Operating
income
|
3,646
|
|
11,293
|
|
1,781
|
|
Share-based
compensation expenses
|
7,058
|
|
1,957
|
|
309
|
|
Adjusted operating
income
|
10,704
|
|
13,250
|
|
2,090
|
|
|
|
|
|
|
|
|
Net
income
|
7,146
|
|
13,118
|
|
2,069
|
|
Share-based
compensation expenses
|
7,058
|
|
1,957
|
|
309
|
|
Adjusted net
income
|
14,204
|
|
15,075
|
|
2,378
|
|
|
|
|
|
|
|
|
Diluted net income per
ADS
|
0.13
|
|
0.24
|
|
0.04
|
|
Impact of non-GAAP
adjustments
|
0.13
|
|
0.04
|
|
0.00
|
|
Adjusted diluted net
income per ADS
|
0.26
|
|
0.28
|
|
0.04
|
|
|
|
|
|
|
|
|
Weighted average number
of ADSs – diluted
|
55,132,687
|
|
54,060,837
|
|
54,060,837
|
|
Weighted average
number of ADSs – adjusted
|
55,132,687
|
|
54,060,837
|
|
54,060,837
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ihuman-inc-announces-first-quarter-2022-unaudited-financial-results-301571570.html
SOURCE iHuman Inc.