If You'd Invested $3,733 in Realty Income Stock 10 Years Ago, Here's How Much You'd Have Today
Realty Income (NYSE: O) is a wealth-creating machine. The real estate investment trust (REIT) dishes out a growing stream of dividend income. On top of that, its stock has steadily grown in value. These two value drivers have added up to a very attractive total return over the past decade.
Here’s a look at how much money an investor would have today if they spent $3,733 to buy 100 shares about 10 years ago.
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Realty Income pays a steadily rising monthly dividend. The REIT has raised its dividend payment 127 times since its initial public market listing in 1994, including the past 108 quarters in a row. Because of that, investors have collected a growing stream of dividend income over the past decade.
An investor who purchased 100 shares 10 years ago would have initially received about $219 in dividend income during the first year based on its payment at the time. That’s a nearly 5.9% dividend yield on an initial investment. That income stream would have steadily grown, reaching its current annualized level of $308. That’s a 40% increase from the initial annual level. They would have collected a cumulative $3,077 in dividends during that decade. Meanwhile, the initial investment now yields 8.2%.
That income is only part of the return. Shares of Realty Income have steadily appreciated as the REIT invested in expanding its portfolio of income-producing properties, which has increased its funds from operations (FFO) per share by around 5% per year. That has helped grow the REIT’s share price by over 50%. As a result, the initial investment is now worth about $5,742. That’s in addition to getting more than 80% of the initial investment back in dividend income. Add it up, and the 100-share purchase would have grown from $3,733 to $8,819 in total value. That investment is also throwing off about $310 (and growing) of annual dividend income.
Realty Income is a slow and steady wealth creator that generates a growing stream of dividend income from an increasingly more valuable investment.
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Cathie Wood Bets On Thriving IPO Market Under Trump: 'Will Give…Liquidity Events That They Have Not Enjoyed During The Last Four Years'
In a recent investor webinar, Cathie Wood shared her perspective on how a potential second term for Donald Trump might influence the IPO market.
What Happened: Wood expressed optimism about the future direction of the market.
“If the market continues to move forward in the way we believe it will…we believe that the IPO market will open up and that will give us a chance, lots of opportunities to diversify our portfolios and it will give our venture funds liquidity events that they have not enjoyed during the last four years,” she said.
Her comments, made during a session released on Friday, come at a time when the market is experiencing increased volatility that anticipated the effect of a second term of Trump on the Wall Street.
See Also: GOP Megadonor Ken Griffin Is ‘Open To The Possibility’ Of Selling Minority Stake In Citadel
Why It Matters: Wood’s comments contrast that of investor Chamath Palihapitiya who feels that there won’t be the mega IPOs expected.
“The IPO market is what the IPO market is. And if the 10 year is back to 4.5-5%, that’s not a compelling strategy for some SaaS company or some internet business that didn’t take an opportunity to go public when rates were at zero. So if you just look mathematically at what the actual fair value of these companies should be, I don’t know, it’s not like such a great IPO market,” he said during one of the recent episodes of the All-In Podcast.
Investors are keenly observing which of Trump’s campaign promises might translate into policy actions. While some pledges, like reducing corporate taxes and deregulation, could benefit the economy and stock prices, others, such as strict immigration policies and high tariffs, might pose economic challenges.
Former Treasury Secretary Larry Summers has warned that Trump’s proposed economic policies could lead to significant economic disruption. In a recent interview, Summers expressed concerns about the potential for a massive demand-side stimulus and substantial supply-side disruptions. He emphasized that if implemented, Trump’s program could result in a larger inflation stimulus than any measures enacted by President Joe Biden.
Price Action: Meanwhile, S&P 500 and NASDAQ tracked by SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust, Series 1 QQQ have gained 2.88% and 2.26% respectively, in the month of November.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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atNorth joins Danish Data Center Industry Association
The sustainable data center business reinforces its commitment to advancing Denmark’s digital infrastructure as part of its continued investment into the country.
COPENHAGEN, Denmark, Nov. 26, 2024 /PRNewswire/ — atNorth, the leading Nordic colocation, high-performance computing, and artificial intelligence service provider, has announced its joining of the Danish Data Center Association (DDI) as part of its continued investment into the country’s data center industry.
The business recently announced the development of its second site in Denmark, DEN02 and its first site, DEN01, is due to be operational by Q2 2025. atNorth has also recently announced the appointment of Jeff Kjeldsen as Operations Director for Denmark as it aims to deliver large-scale infrastructure operations that demonstrate leading technologies and adhere to stringent industry standards.
The DDI aims to create stakeholder opportunities by promoting sustainability, best practice operations and cross sector collaborations. These are factors that are a core part of atNorth’s business ethos and the business is proud to help shape a thriving future for the country.
“The Danish Data Center Industry is expanding rapidly but it is important that we evolve in a sustainable way,” says Henrik Hansen, CEO at the Danish Data Center Industry. “We welcome Nordic data center leader, atNorth, as a member of our organization and hope we can capitalize on a shared ethos of technical excellence and environmental protection.”
“We are proud to join the Danish Data Center Industry Association,” says Jeff Kjeldsen, Operations Director for Denmark at aNorth. “Denmark, alongside its Nordic neighbours boasts ideal conditions for data center development. The country’s beneficial climate, excellent connectivity and an abundance of renewable energy has fuelled the rapid expansion of the industry and we are delighted to help guide the process to ensure sustainability and best practice excellence.”
About atNorth
atNorth is a leading Nordic data center services company that offers sustainable, cost-effective, scalable colocation and high-performance computing services trusted by industry-leading organizations. The business acquired leading High Performance Computing (HPC) provider, Gompute, in 2023 enabling a compelling full stack offering tailored to AI and other critical high performance workloads.
With sustainability at its core, atNorth’s data centers run on renewable energy resources and support circular economy principles. All atNorth sites leverage innovative design, power efficiency, and intelligent operations to provide long-term infrastructure and flexible colocation deployments. The tailor-made solutions enable businesses to calculate, simulate, train and visualize data workloads in an efficient, cost-optimized way.
atNorth is headquartered in Reykjavik, Iceland and operates seven data centers in strategic locations across the Nordics, with additional sites to open in Helsinki, Finland in and Ballerup, Denmark in early 2025, as well as its tenth under construction in Kouvola, Finland and its eleventh site in Ølgod, Denmark.
For more information, visit atNorth.com or follow atNorth on LinkedIn or Facebook.
Press Contact:
Caroline Brunton
Kite Hill PR for atNorth
+44 (0) 7796 274 416
caroline@kitehillpr.com
This information was brought to you by Cision http://news.cision.com
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SOURCE atNorth
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SM Investments Receives Dual Accolades for Corporate Excellence and Sustainability
PASAY CITY, PHILIPPINES, Nov. 26, 2024 /PRNewswire/ — SM Investments Corporation (SM Investments) was recently recognized at the Asia Corporate Excellence and Sustainability Awards 2024 (ACES), earning the titles of Asia’s Most Influential Companies and Top Sustainability Advocates in Asia.
“We are grateful for the recognition and are inspired to continue to work even harder to grow responsibly and sustainably with the communities that we serve,” said Frederic C. DyBuncio, President and Chief Executive Officer of SM Investments.
The ACES Council praised SM Investments for its comprehensive approach to sustainability, which is embedded in all aspects of its operations. They noted, “Their influence extends beyond business operations, as they set benchmarks for sustainability in the Philippines and across Asia. By building integrated communities, fostering partnerships with MSMEs, and prioritizing corporate governance, SM Investments exemplifies leadership that positively impacts not just its stakeholders, but the broader socio-economic landscape.”
The council also highlighted SM Investments’ commitment to renewable energy and its focus on diversity and inclusion within its workforce. The company operates the Philippine Geothermal Production Company, which runs geothermal fields in Tiwi, Albay, and Makban, Quezon, while exploring additional sources across six provinces.
With a workforce exceeding 130,000, SM Investments is notable for its gender diversity, with 63% of its employees being women, and 58% of leadership roles filled by women.
Established in 2014, the ACES Awards aim to showcase the achievements of Asian companies to the global business community, supported by a council of experts in academia, sustainability, and public policy.
About SM Investments Corporation
SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.
SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.
For more information, please visit www.sminvestments.com
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SOURCE SM Investments Corporation
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Zhihu Inc. Reports Unaudited Third Quarter 2024 Financial Results
BEIJING, Nov. 26, 2024 /PRNewswire/ — Zhihu Inc. (“Zhihu” or the “Company”) ZH HKEX: 2390)), a leading online content community in China, today announced its unaudited financial results for the quarter ended September 30, 2024.
Third Quarter 2024 Highlights
- Total revenues were RMB845.0 million (US$120.4 million) in the third quarter of 2024, compared with RMB1,022.2 million in the same period of 2023.
- Gross margin expanded to 63.9% in the third quarter of 2024 from 53.7% in the same period of 2023.
- Net loss was RMB9.0 million (US$1.3 million) in the third quarter of 2024, narrowed by 96.8% from the same period of 2023.
- Adjusted net loss (non-GAAP)[1] was RMB13.1 million (US$1.9 million) in the third quarter of 2024, narrowed by 94.2% from the same period of 2023.
- Average monthly active users (MAUs)[2] were 81.1 million in the third quarter of 2024.
- Average monthly subscribing members[3] were 16.5 million in the third quarter of 2024.
“In the third quarter, we strengthened our commitment to reducing losses and executed our strategies with precision,” said Mr. Yuan Zhou, chairman and chief executive officer of Zhihu. “Our community ecosystem optimization has produced multiple positive outcomes, including steady improvements across key user health metrics and quarter-over-quarter MAU growth. We also revitalized our content creators’ confidence, leading to enhanced content quality, elevated engagement, and a thriving community atmosphere. Furthermore, user visits to Zhihu Zhida, our AI-powered search tool, have increased rapidly. Building on this momentum, we introduced the ‘Professional Search’ feature, which represents a meaningful step forward in building our differentiated approach in exploring deeper, specialized scenarios. Going forward, we will remain dedicated to enhancing the user experience and deepening community trustworthiness to unlock the full potential of Zhihu’s brand and user base.”
Mr. Han Wang, chief financial officer of Zhihu, added, “We continued to improve profitability and achieved another milestone, delivering our lowest quarterly loss since our U.S. IPO. In the third quarter, our gross profit margin expanded to 63.9%, with total costs and operating expenses decreasing year-over-year by 35.6% and 30.5%, respectively, driven by enhanced operational efficiency and disciplined cost management. Looking ahead, we will dedicate more resources to strategically exploring business models that reinforce Zhihu’s high-value brand image and distinctive user positioning. In the long-term, we aim to achieve sustainable profitability growth, empowering substantial value returns to our shareholders.”
Third Quarter 2024 Financial Results
Total revenues were RMB845.0 million (US$120.4 million) in the third quarter of 2024, compared with RMB1,022.2 million in the same period of 2023.
Marketing services revenue was RMB256.6 million (US$36.6 million), compared with RMB383.0 million in the same period of 2023. The decrease was primarily due to our proactive and ongoing refinement of service offerings to strategically focus on margin improvement.
Paid membership revenue was RMB459.4 million (US$65.5 million), compared with RMB466.8 million in the same period of 2023. The slight decrease was primarily attributable to a marginal decline in our average revenue per subscribing member.
Vocational training revenue was RMB105.1 million (US$15.0 million), compared with RMB144.8 million in the same period of 2023. The decrease was primarily driven by lower revenue contributions from our acquired businesses, partially offset by the growth of our self-operated course offerings.
Other revenues were RMB23.9 million (US$3.4 million), compared with RMB27.6 million in the same period of 2023.
Cost of revenues decreased by 35.6% to RMB304.9 million (US$43.4 million) from RMB473.7 million in the same period of 2023. The decrease was primarily due to reduced content and operating costs associated with the decline in our revenues, and a decrease in cloud services and bandwidth costs resulting from our improved technological efficiency.
Gross profit was RMB540.1 million (US$77.0 million), compared with RMB548.5 million in the same period of 2023. Gross margin expanded to 63.9% from 53.7% in the same period of 2023, primarily attributable to our monetization enhancements and improvements in our operating efficiency.
Total operating expenses decreased by 30.5% to RMB624.5 million (US$89.0 million) from RMB898.6 million in the same period of 2023.
Selling and marketing expenses decreased by 27.4% to RMB388.0 million (US$55.3 million) from RMB534.3 million in the same period of 2023. The decrease was primarily due to more disciplined promotional spending and a decrease in personnel-related expenses.
Research and development expenses decreased by 28.2% to RMB179.3 million (US$25.5 million) from RMB249.7 million in the same period of 2023. The decrease was primarily attributable to more efficient spending on technology innovation and a decrease in personnel-related expenses.
General and administrative expenses decreased by 50.1% to RMB57.2 million (US$8.1 million) from RMB114.6 million in the same period of 2023. The decrease was primarily attributable to lower share-based compensation expenses.
Loss from operations narrowed by 75.9% to RMB84.3 million (US$12.0 million) from RMB350.1 million in the same period of 2023.
Adjusted loss from operations (non-GAAP)[1] narrowed by 70.3% to RMB87.8 million (US$12.5 million) from RMB295.9 million in the same period of 2023.
Net loss narrowed by 96.8% to RMB9.0 million (US$1.3 million) from RMB278.4 million in the same period of 2023.
Adjusted net loss (non-GAAP)[1] narrowed by 94.2% to RMB13.1 million (US$1.9 million) from RMB225.3 million in the same period of 2023.
Diluted net loss per American depositary share (“ADS”) [4] was RMB0.11 (US$0.02), compared with RMB2.81 in the same period of 2023.
Cash and cash equivalents, term deposits, restricted cash and short-term investments
As of September 30, 2024, the Company had cash and cash equivalents, term deposits, restricted cash and short-term investments of RMB5,048.0 million (US$719.3 million), compared with RMB5,462.9 million as of December 31, 2023.
Share Repurchase Programs
As of September 30, 2024, the Company had repurchased 31.1 million Class A ordinary shares (including Class A ordinary shares underlying the ADSs) for a total price of US$66.5 million on both the New York Stock Exchange and The Stock Exchange of Hong Kong Limited under the Company’s existing US$100 million share repurchase program (the “2022 Repurchase Program”), established in May 2022 and extended until June 26, 2025. In addition, a concurrent share repurchase program (the “2024 Repurchase Program”) was established in June 2024 and will remain effective until June 26, 2025. The maximum number of shares (including shares underlying the ADSs) that can be repurchased under the 2024 Repurchase Program, together with the remaining number of shares (including shares underlying the ADSs) that can be repurchased under the 2022 Repurchase Program, will not exceed 10% of the total number of issued shares of the Company (excluding any treasury shares) as of June 26, 2024, the date of the resolution granting the general unconditional mandate to purchase the Company’s own shares approved by shareholders.
In addition, as previously announced, the Company recently conducted an all cash tender offer and repurchased a total of 33,016,016 Class A ordinary shares tendered (including 19,877,118 Class A ordinary shares in the form of 6,625,706 ADSs), representing approximately 11.2% of the Company’s total issued and outstanding ordinary shares before the repurchase. The total consideration for these Class A ordinary shares is approximately HK$300 million. These shares were repurchased and canceled on November 8, 2024.
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[1] Adjusted loss from operations and adjusted net loss are non-GAAP financial measures. For more information on the non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release. |
|
[2] MAUs refers to the sum of the number of mobile devices that launch our mobile apps at least once in a given month, or mobile MAUs, and the number of logged-in users who visit our PC or mobile website at least once in a given month, after eliminating duplicates. |
|
[3] Monthly subscribing members refers to the number of our Yan Selection members in a specified month. Average monthly subscribing members for a period is calculated by dividing the sum of monthly subscribing members for each month during the specified period by the number of months in such period. |
|
[4] On May 10, 2024, we effected a change in the ratio of our ADSs to Class A ordinary shares from two ADSs representing one Class A ordinary share to a new ratio of one ADS representing three Class A ordinary shares. Basic and diluted net loss per ADS have been retrospectively adjusted to reflect this ADS ratio change for all periods presented. |
Conference Call
The Company’s management will host an earnings conference call at 6:00 a.m. U.S. Eastern Time on November 26, 2024 (7:00 p.m. Beijing/Hong Kong time on November 26, 2024).
All participants wishing to join the conference call must pre-register online using the link provided below. Once the pre-registration has been completed, each participant will receive a set of dial-in numbers, a passcode, and a unique registrant ID which can be used to join the conference call. Participants may pre-register at any time, including up to and after the call start time.
Participant Online Registration: https://dpregister.com/sreg/10194497/fdf969aff8
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.zhihu.com.
A replay of the conference call will be accessible approximately one hour after the conclusion of the live call, until December 3, 2024, by dialing the following telephone numbers:
|
United States (toll free): |
+1-877-344-7529 |
|
International: |
+1-412-317-0088 |
|
Replay Access Code: |
3486495 |
About Zhihu Inc.
Zhihu Inc. ZH HKEX: 2390)) is a leading online content community in China where people come to find solutions, make decisions, seek inspiration, and have fun. Since the initial launch in 2010, we have grown from a Q&A community into one of the top comprehensive online content communities and the largest Q&A-inspired online content community in China. For more information, please visit https://ir.zhihu.com.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted loss from operations and adjusted net loss, to supplement the review and assessment of its operating performance. The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisitions and the tax effects of the non-GAAP adjustments, which are non-cash expenses. The Company believes that the non-GAAP financial measures facilitate comparisons of operating performance from period to period and company to company by adjusting for potential impacts of items, which the Company’s management considers to be indicative of its operating performance. The Company believes that the non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s consolidated results of operations in the same manner as they help the Company’s management.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of the non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. The use of the non-GAAP financial measures has limitations as an analytical tool, and investors should not consider them in isolation from or as a substitute for analysis of our results of operations or financial condition as reported under U.S. GAAP. For more information on the non-GAAP financial measures, please see the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at a rate of RMB7.0176 to US$1.00, the exchange rate in effect as of September 30, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Zhihu Inc.
Email: ir@zhihu.com
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
Email: zhihu@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Phone: +1-212-481-2050
Email: zhihu@tpg-ir.com
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ZHIHU INC. |
|||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||
|
(All amounts in thousands, except share, ADS, per share data and per ADS data) |
|||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
|
September 30, 2023 |
June 30, 2024 |
September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
|||||||||
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
|
Revenues: |
|||||||||||||
|
Marketing services |
382,962 |
343,979 |
256,631 |
36,570 |
1,187,839 |
931,152 |
132,688 |
||||||
|
Paid membership |
466,784 |
432,652 |
459,387 |
65,462 |
1,370,651 |
1,341,763 |
191,200 |
||||||
|
Vocational training |
144,795 |
133,633 |
105,058 |
14,971 |
396,313 |
384,127 |
54,738 |
||||||
|
Others |
27,622 |
23,546 |
23,944 |
3,412 |
105,789 |
82,651 |
11,778 |
||||||
|
Total revenues |
1,022,163 |
933,810 |
845,020 |
120,415 |
3,060,592 |
2,739,693 |
390,404 |
||||||
|
Cost of revenues |
(473,712) |
(377,266) |
(304,879) |
(43,445) |
(1,437,844) |
(1,099,529) |
(156,682) |
||||||
|
Gross profit |
548,451 |
556,544 |
540,141 |
76,970 |
1,622,748 |
1,640,164 |
233,722 |
||||||
|
Selling and marketing expenses |
(534,328) |
(416,985) |
(388,049) |
(55,297) |
(1,520,486) |
(1,282,988) |
(182,824) |
||||||
|
Research and development expenses |
(249,662) |
(209,323) |
(179,261) |
(25,544) |
(668,867) |
(585,940) |
(83,496) |
||||||
|
General and administrative expenses |
(114,564) |
(114,107) |
(57,161) |
(8,145) |
(327,462) |
(264,185) |
(37,646) |
||||||
|
Total operating expenses |
(898,554) |
(740,415) |
(624,471) |
(88,986) |
(2,516,815) |
(2,133,113) |
(303,966) |
||||||
|
Loss from operations |
(350,103) |
(183,871) |
(84,330) |
(12,016) |
(894,067) |
(492,949) |
(70,244) |
||||||
|
Other income/(expenses): |
|||||||||||||
|
Investment income |
11,617 |
21,811 |
13,679 |
1,949 |
29,416 |
52,392 |
7,466 |
||||||
|
Interest income |
40,363 |
26,754 |
31,136 |
4,437 |
119,843 |
88,653 |
12,633 |
||||||
|
Fair value change of financial instruments |
(7,352) |
31,412 |
6,887 |
981 |
(19,950) |
47,707 |
6,798 |
||||||
|
Exchange (losses)/gains |
(393) |
289 |
(1,097) |
(156) |
1,034 |
(688) |
(98) |
||||||
|
Others, net |
27,227 |
15,947 |
23,799 |
3,391 |
34,204 |
42,789 |
6,097 |
||||||
|
Loss before income tax |
(278,641) |
(87,658) |
(9,926) |
(1,414) |
(729,520) |
(262,096) |
(37,348) |
||||||
|
Income tax benefits/(expenses) |
256 |
7,063 |
949 |
135 |
(6,903) |
6,728 |
959 |
||||||
|
Net loss |
(278,385) |
(80,595) |
(8,977) |
(1,279) |
(736,423) |
(255,368) |
(36,389) |
||||||
|
Net income attributable to |
(289) |
(2,144) |
(1,514) |
(216) |
(3,447) |
(2,708) |
(386) |
||||||
|
Net loss attributable to Zhihu Inc.’s |
(278,674) |
(82,739) |
(10,491) |
(1,495) |
(739,870) |
(258,076) |
(36,775) |
||||||
|
Net loss per share |
|||||||||||||
|
Basic |
(0.94) |
(0.30) |
(0.04) |
(0.01) |
(2.45) |
(0.92) |
(0.13) |
||||||
|
Diluted |
(0.94) |
(0.30) |
(0.04) |
(0.01) |
(2.45) |
(0.92) |
(0.13) |
||||||
|
Net loss per ADS (One ADS represents |
|||||||||||||
|
Basic |
(2.81) |
(0.89) |
(0.11) |
(0.02) |
(7.35) |
(2.77) |
(0.39) |
||||||
|
Diluted |
(2.81) |
(0.89) |
(0.11) |
(0.02) |
(7.35) |
(2.77) |
(0.39) |
||||||
|
Weighted average number of ordinary |
|||||||||||||
|
Basic |
297,742,064 |
279,241,647 |
277,309,431 |
277,309,431 |
302,063,397 |
279,367,448 |
279,367,448 |
||||||
|
Diluted |
297,742,064 |
279,241,647 |
277,309,431 |
277,309,431 |
302,063,397 |
279,367,448 |
279,367,448 |
||||||
|
ZHIHU INC. |
|||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) |
|||||||||||||
|
(All amounts in thousands, except share, ADS, per share data and per ADS data) |
|||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
|
September 30, 2023 |
June 30, 2024 |
September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
|||||||||
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
|
Share-based compensation expenses included in: |
|||||||||||||
|
Cost of revenues |
1,630 |
750 |
1,016 |
145 |
8,176 |
4,263 |
608 |
||||||
|
Selling and marketing expenses |
5,741 |
(6,063) |
547 |
78 |
20,883 |
(2,244) |
(320) |
||||||
|
Research and development expenses |
13,758 |
4,439 |
6,233 |
888 |
49,904 |
14,352 |
2,045 |
||||||
|
General and administrative expenses |
27,662 |
33,515 |
(14,767) |
(2,104) |
78,193 |
35,111 |
5,003 |
||||||
|
ZHIHU INC. |
|||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
|
(All amounts in thousands) |
|||||
|
As of December 31, 2023 |
As of September 30, 2024 |
||||
|
RMB |
RMB |
US$ |
|||
|
ASSETS |
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
2,106,639 |
3,214,074 |
458,002 |
||
|
Term deposits |
1,586,469 |
993,111 |
141,517 |
||
|
Short-term investments |
1,769,822 |
789,020 |
112,434 |
||
|
Restricted cash |
– |
51,774 |
7,378 |
||
|
Trade receivables |
664,615 |
445,288 |
63,453 |
||
|
Amounts due from related parties |
18,319 |
48,498 |
6,911 |
||
|
Prepayments and other current assets |
232,016 |
207,843 |
29,617 |
||
|
Total current assets |
6,377,880 |
5,749,608 |
819,312 |
||
|
Non-current assets: |
|||||
|
Property and equipment, net |
10,849 |
9,625 |
1,372 |
||
|
Intangible assets, net |
122,645 |
58,048 |
8,272 |
||
|
Goodwill |
191,077 |
126,344 |
18,004 |
||
|
Long-term investments, net |
44,621 |
51,177 |
7,292 |
||
|
Right-of-use assets |
40,211 |
13,327 |
1,899 |
||
|
Other non-current assets |
7,989 |
456 |
65 |
||
|
Total non-current assets |
417,392 |
258,977 |
36,904 |
||
|
Total assets |
6,795,272 |
6,008,585 |
856,216 |
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||
|
Current liabilities |
|||||
|
Accounts payable and accrued liabilities |
1,038,531 |
893,532 |
127,327 |
||
|
Salary and welfare payables |
342,125 |
226,866 |
32,328 |
||
|
Taxes payables |
21,394 |
15,093 |
2,151 |
||
|
Contract liabilities |
303,574 |
278,735 |
39,719 |
||
|
Amounts due to related parties |
26,032 |
7,849 |
1,119 |
||
|
Short-term lease liabilities |
42,089 |
16,031 |
2,284 |
||
|
Short-term borrowings |
– |
51,774 |
7,378 |
||
|
Other current liabilities |
171,743 |
148,584 |
21,173 |
||
|
Total current liabilities |
1,945,488 |
1,638,464 |
233,479 |
||
|
Non-current liabilities |
|||||
|
Long-term lease liabilities |
3,642 |
2,630 |
375 |
||
|
Deferred tax liabilities |
22,574 |
7,430 |
1,059 |
||
|
Other non-current liabilities |
121,958 |
14,998 |
2,137 |
||
|
Total non-current liabilities |
148,174 |
25,058 |
3,571 |
||
|
Total liabilities |
2,093,662 |
1,663,522 |
237,050 |
||
|
Total Zhihu Inc.’s shareholders’ equity |
4,599,810 |
4,289,054 |
611,185 |
||
|
Noncontrolling interests |
101,800 |
56,009 |
7,981 |
||
|
Total shareholders’ equity |
4,701,610 |
4,345,063 |
619,166 |
||
|
Total liabilities and shareholders’ equity |
6,795,272 |
6,008,585 |
856,216 |
||
|
ZHIHU INC. |
|||||||||||||
|
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
|||||||||||||
|
(All amounts in thousands) |
|||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
|
September 30, 2023 |
June 30, 2024 |
September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
|||||||||
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
|
Loss from operations |
(350,103) |
(183,871) |
(84,330) |
(12,016) |
(894,067) |
(492,949) |
(70,244) |
||||||
|
Add: |
|||||||||||||
|
Share-based compensation expenses |
48,791 |
32,641 |
(6,971) |
(993) |
157,156 |
51,482 |
7,336 |
||||||
|
Amortization of intangible assets resulting from business acquisitions |
5,365 |
4,115 |
3,490 |
497 |
14,220 |
12,970 |
1,848 |
||||||
|
Adjusted loss from operations |
(295,947) |
(147,115) |
(87,811) |
(12,512) |
(722,691) |
(428,497) |
(61,060) |
||||||
|
Net loss |
(278,385) |
(80,595) |
(8,977) |
(1,279) |
(736,423) |
(255,368) |
(36,389) |
||||||
|
Add: |
|||||||||||||
|
Share-based compensation expenses |
48,791 |
32,641 |
(6,971) |
(993) |
157,156 |
51,482 |
7,336 |
||||||
|
Amortization of intangible assets resulting from business acquisitions |
5,365 |
4,115 |
3,490 |
497 |
14,220 |
12,970 |
1,848 |
||||||
|
Tax effects on non-GAAP adjustments |
(1,069) |
(756) |
(600) |
(85) |
(2,738) |
(2,425) |
(346) |
||||||
|
Adjusted net loss |
(225,298) |
(44,595) |
(13,058) |
(1,860) |
(567,785) |
(193,341) |
(27,551) |
||||||
View original content:https://www.prnewswire.com/news-releases/zhihu-inc-reports-unaudited-third-quarter-2024-financial-results-302316322.html
SOURCE Zhihu Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Should You Buy Nvidia Before Dec. 3?
Nvidia (NASDAQ: NVDA) stock has roared higher in recent years — and it’s continued with that momentum this year, as it’s heading for a gain of more than 185%. There’s good reason for this top performance. The company has become the leader in a key product to serve a market that may be worth $1 trillion by the end of the decade. I’m talking about chips for the artificial intelligence (AI) market.
But Nvidia hasn’t stopped with chips. Instead, the company has built an entire portfolio of AI products and services — from networking elements to an enterprise software system. Nvidia has become the “go to” company for AI and counts the world’s top tech companies as its customers. All of this has led to triple-digit revenue growth for its data center business and high profitability — with gross margin greater than 70% — on those sales.
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This strength along with the growth forecast for the entire AI market make Nvidia a great long-term stock to own. If you haven’t yet gotten in on this story, though, you may be wondering about when to make the move. After all, if you buy before an upcoming catalyst, you could benefit from an immediate boost. And that next catalyst might be on Dec. 3. Should you buy Nvidia before then? Let’s find out.
Before looking at what’s coming up on that day next week, let’s first consider the Nvidia story so far. As mentioned, the company’s chips — graphics processing units (GPUs) — now dominate the AI market, holding 80% share. The GPU has the ability to process many tasks at once, and Nvidia has pledged to update its GPUs on an annual basis. This commitment to innovation should help the company maintain its leadership position.
Nvidia’s GPUs are the fastest around, making them the ideal engine for AI projects. And since tech companies are racing to win in the field of AI — aiming to produce the best AI platforms or to use AI to develop game-changing products — they need the very best chip to get the job done. In recent times, Oracle co-founder Larry Ellison said he and Tesla leader Elon Musk even “begged” Nvidia for more GPUs.
Why would Ellison and Musk have to beg? Because so many players have ordered Nvidia’s new Blackwell GPU, demand has surpassed supply. So, even though Nvidia products and services are widely available on every public cloud, it isn’t exactly easy for customers to get their hands on the very latest GPU right away. All of this is reason to be optimistic about Nvidia’s sales as this AI boom continues.
How a breakup could upend Google (and the tech world)
Google has a lot at stake if the Justice Department succeeds in breaking up its empire, from control over its search data and Android operating system to the loss of its Chrome browser.
But the biggest threat the company faces is to a search business that is deeply woven into the technology ecosystem of its parent company Alphabet (GOOG, GOOGL).
Of the $307.3 billion in revenue Google made in 2023, $175 billion came solely from that ad-driven search engine business. The DOJ wants to impose dozens of limitations on the way that Google connects that engine with consumers.
Other parts of Alphabet could also be affected. The DOJ also asked for the company to be prohibited from favoring its video subsidiary, YouTube, which is part of its YouTube Ads business unit.
That unit, which generated $31.3 billion in revenue in 2023, earns money through ads that appear on and around YouTube videos. Google search promotes YouTube video links in response user queries.
Google’s digital ads business, a division that generated $31.5 billion in revenue in 2023, could also be imperiled by a limitation on search favoring YouTube. Advertisers as well as content creators use Google’s buyer- and seller-side platforms to target consumers and monetize video content.
It will be up to District of Columbia Judge Amit Mehta, who sided with the DOJ’s monopoly argument in a trial that wrapped up earlier this year, to approve any of the proposals submitted by prosecutors. That could include the sale of Google’s Chrome browser and a divestment of its Android mobile operating system.
Even artificial-intelligence investments designed to pay off in the future could be under threat. Prosecutors also called for Google to divest within six months any investment or ownership in rival query-based AI products, as well as rival search text advertising technology products.
That would force Google to unwind its partnership with generative AI startup Anthropic. Google has invested $2 billion in Anthropic, while also hiring the founders of another AI startup, Character.AI.
Taken together, the Justice Department’s requests would dramatically alter the tech landscape. Some legal experts said there is a slim chance Mehta will grant all of the prosecutors’ proposals.
“I think it’s pretty unlikely that the government will be successful in getting these things,” Columbia Law School antitrust professor Erik Hovenkamp told Yahoo Finance.
“In particular, I do not expect the court to order any divestiture. Contrary to popular misconception, antitrust rarely breaks up monopolies.”
Economist Steve Hanke Brushes Off Trump Economic Worries As 'Nonsense,' Predicts Fed Will Bring Prices Below 2% In 2025
Contrary to growing concerns about potential inflationary pressures under President-elect Donald Trump‘s administration, top economist Steve Hanke dismisses fears of a significant price surge, citing monetary policy and money supply as critical factors.
What Happened: In a recent interview with CNBC, Hanke argued that the inflation trajectory depends more on Federal Reserve actions than proposed economic policies. “All this talk about Trump’s policies causing inflation to kick up again is just nonsense,” Hanke stated.
Hanke highlighted a critical economic indicator: the U.S. money supply, which has contracted since 2022. Historically, such contractions have preceded economic downturns. “The money supply is growing at 2.6% year-over-year, below my golden growth rate of 6%,” he explained.
The economist predicts inflation will fall below the Fed’s 2% target in 2025, challenging warnings from economists like former Treasury Secretary Larry Summers, who anticipates potential inflationary risks from proposed tax cuts and trade policies.
Why It Matters: Hanke praised the potential administration’s focus on economic deregulation, suggesting it could enhance GDP growth without triggering significant inflation. He referenced Scott Bessent, Trump’s potential Treasury Secretary pick, who has proposed strategies to mitigate potential inflationary impacts.
Market indicators currently show resilience. S&P 500 tracked by the SPDR S&P 500 ETF Trust SPY has gained 3.61% since Nov. 5, trading at $597.53 on Monday, while Nasdaq-100 Index tracked by Invesco QQQ Trust, Series 1 QQQ increased 2.92% during the same period to $506.59, data from Benzinga Pro.
The potential economic shifts come amid a complex fiscal landscape, with the U.S. federal budget deficit projected to reach $1.7 trillion in 2024 and the debt-to-GDP ratio approaching 120%.
Read Next:
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Earnings Scheduled For November 26, 2024
Companies Reporting Before The Bell
• Icecure Medical ICCM is projected to report quarterly loss at $0.08 per share on revenue of $708 thousand.
• Tsakos Energy Navigation TEN is projected to report quarterly earnings at $0.66 per share on revenue of $164.00 million.
• Manchester United MANU is expected to report quarterly loss at $0.29 per share on revenue of $194.49 million.
• Best Buy Co BBY is projected to report quarterly earnings at $1.29 per share on revenue of $9.63 billion.
• Kohl’s KSS is likely to report quarterly earnings at $0.27 per share on revenue of $3.71 billion.
• JM Smucker SJM is estimated to report quarterly earnings at $2.51 per share on revenue of $2.26 billion.
• Dick’s Sporting Goods DKS is expected to report quarterly earnings at $2.69 per share on revenue of $3.03 billion.
• Analog Devices ADI is projected to report quarterly earnings at $1.64 per share on revenue of $2.41 billion.
• Titan Machinery TITN is projected to report quarterly earnings at $0.05 per share on revenue of $675.30 million.
• Embecta EMBC is projected to report quarterly earnings at $0.36 per share on revenue of $276.88 million.
• Ucloudlink Group UCL is expected to report quarterly earnings at $0.07 per share on revenue of $26.70 million.
• Zhihu ZH is estimated to report earnings for its third quarter.
• Macy’s M is expected to report quarterly loss at $0.01 per share on revenue of $4.72 billion.
• Burlington Stores BURL is estimated to report quarterly earnings at $1.55 per share on revenue of $2.56 billion.
• H World Group HTHT is estimated to report quarterly earnings at $0.69 per share on revenue of $933.86 million.
• Cadeler CDLR is likely to report earnings for its third quarter.
• Abercrombie & Fitch ANF is projected to report quarterly earnings at $2.22 per share on revenue of $1.18 billion.
• American Woodmark AMWD is projected to report quarterly earnings at $2.37 per share on revenue of $458.29 million.
• Cheche Group CCG is projected to report earnings for its third quarter.
• MediWound MDWD is projected to report quarterly loss at $0.44 per share on revenue of $6.01 million.
Companies Reporting After The Bell
• JOYY YY is expected to report quarterly earnings at $0.92 per share on revenue of $562.00 million.
• Iris Energy IREN is estimated to report quarterly loss at $0.07 per share on revenue of $54.75 million.
• 3D Sys DDD is expected to report quarterly loss at $0.09 per share on revenue of $113.65 million.
• Guess GES is expected to report quarterly earnings at $0.37 per share on revenue of $747.44 million.
• Pinstripes Holdings PNST is projected to report quarterly loss at $0.21 per share on revenue of $30.59 million.
• Urban Outfitters URBN is likely to report quarterly earnings at $0.85 per share on revenue of $1.34 billion.
• Nordstrom JWN is estimated to report quarterly earnings at $0.22 per share on revenue of $3.35 billion.
• CrowdStrike Holdings CRWD is estimated to report quarterly earnings at $0.81 per share on revenue of $983.03 million.
• Dell Technologies DELL is estimated to report quarterly earnings at $2.06 per share on revenue of $24.72 billion.
• Nutanix NTNX is likely to report quarterly earnings at $0.32 per share on revenue of $572.16 million.
• Arrowhead Pharma ARWR is expected to report quarterly loss at $0.92 per share on revenue of $58.91 million.
• Autodesk ADSK is likely to report quarterly earnings at $2.12 per share on revenue of $1.56 billion.
• Workday WDAY is projected to report quarterly earnings at $1.76 per share on revenue of $2.13 billion.
• Ambarella AMBA is expected to report quarterly earnings at $0.04 per share on revenue of $79.03 million.
• Yxt.Com Group Holding YXT is likely to report earnings for its third quarter.
• Noah Holdings NOAH is estimated to report earnings for its third quarter.
• PagerDuty PD is projected to report quarterly earnings at $0.17 per share on revenue of $116.39 million.
• HP HPQ is expected to report quarterly earnings at $0.93 per share on revenue of $14.00 billion.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
UCLOUDLINK GROUP INC. Announces Unaudited Third Quarter 2024 Financial Results
HONG KONG, Nov. 26, 2024 (GLOBE NEWSWIRE) — UCLOUDLINK GROUP INC. (“UCLOUDLINK” or the “Company”) UCL, the world’s first and leading mobile data traffic sharing marketplace, today announced its unaudited financial results for the three months ended September 30, 2024.
Third Quarter 2024 Financial Highlights
- Total revenues were US$25.2 million, representing an increase of 5.6% from US$23.9 million in the third quarter of 2023.
- Gross profit was US$12.19 million, representing a decrease of 0.1% from US$12.21 million in the third quarter of 2023.
- Income from operations was US$3.3 million, compared to US$3.3 million in the third quarter of 2023.
- Net income was US$3.4 million, compared to US$3.5 million in the third quarter of 2023.
- Adjusted net income (non-GAAP) was US$3.7 million, compared to US$3.8 million in the third quarter of 2023.
- Adjusted EBITDA (non-GAAP) was US$4.4 million, compared to US$4.1 million in the third quarter of 2023.
Third Quarter 2024 Operational Highlights
- Total data consumed in the third quarter through the Company’s platform was 44,994 terabytes (7,755 terabytes procured by the Company and 37,239 terabytes procured by our business partners), representing a decrease of 3.5% from 46,630 terabytes in the third quarter of 2023.
- Average daily active terminals in the third quarter were 320,452 (20,177 owned by the Company and 300,275 owned by our business partners), representing a decrease of 1.4% from 325,078 in the third quarter of 2023. 55.4% of daily active terminals were from uCloudlink 1.0 international data connectivity services and 44.6% of daily active terminals were from uCloudlink 2.0 local data connectivity services during the third quarter of 2024. Average daily data usage per terminal was 1.52 GB in September 2024.
- As of September 30, 2024, the Company had served 2,759 business partners in 61 countries and regions. The Company had 183 patents with 158 approved and 25 pending approval, while the pool of SIM cards was from 389 MNOs globally as of September 30, 2024.
Executive Commentary
Mr. Chaohui Chen, Director and Chief Executive Officer of UCLOUDLINK, said, “Revenues were in-line with our expectations during the third quarter of 2024, increasing 5.6% year-over-year to US$25.2 million as we drive growth momentum. Our financial position remains solid, with a net income reaching US$3.4 million and a positive net cash inflow from operations of US$2.0 million. Our 1.0 international data connectivity services business continued to grow, with full-speed 5G network coverage increasing to 75 countries and regions, fueled by the recovery of international travel and increasing demand across key markets. We further consolidated our leading position in the roaming market and expanded our market share in mainland China and Japan.”
“Following the introduction of our GlocalMe Life products series at Viva Technology in May and their commercial launch in July 2024, we further enhanced our market exposure by attending other leading global expos such as Travel Meet Asia, Pet & Vet Expo, and IFA Berlin 2024. Additionally, we made breakthroughs in developing retail channels, signing with one of North America’s largest airport retail channels to make UniCord, RoamPlug, and KeyTracker, among other products, available at airports across the U.S. We will develop strategic partnerships with other key channel partners across the U.S. and Europe in the coming quarters. In terms of GlocalMe SIM, we continued to expand the market presence of over-the-air (OTA) SIM as more users resubscribed to our data plan service, paving the way for our innovative “ALL SIM” solutions. Our innovative “ALL SIM” solution is under commercial testing and is expected to commercially launch in the near future. In terms of GlocalMe IoT, we are leveraging our soft cloud SIM technology, which is compatible with various chipset platforms, to engage with several leading manufacturers in the security camera, dashboard camera, and related sectors. Some products with our embedded technology are already in small-scale commercial application, demonstrating the strength and capabilities of our solutions to a broader audience in the Internet of Things (IoT) industry.”
“Looking ahead, we will continue to leverage GlocalMe Life, GlocalMe SIM, GlocalMe IoT and their integrated innovative core HyperConn and cloud SIM solutions, to expand our global presence and cooperate with additional business partners and channels. This will allow us to scale up and diversify our end user base in the future. This transition will diversify our revenue streams from primarily mobile data traffic solutions to a mix of value-added services and mobile data traffic solutions, and will drive the ongoing consolidation and development of our GlocalMe ecosystem, positioning UCLOUDLINK as a leading global mobile data traffic sharing marketplace while creating long-term sustainable value for our shareholders.”
Third Quarter 2024 Financial Results
Revenues
Total Revenues were US$25.2 million, representing an increase of 5.6% from US$23.9 million in the same period of 2023.
- Revenues from services were US$17.3 million, representing an increase of 3.9% from US$16.6 million in the same period of 2023. This increase was primarily attributable to increases in revenues from data connectivity services and from PaaS and SaaS services.
- Revenues from data connectivity services were US$14.0 million, representing an increase of 1.9% from US$13.8 million in the same period of 2023. This increase was primarily attributable to (i) an increase in revenues from international data connectivity services to US$11.5 million in the third quarter of 2024 from US$11.4 million in the same period of 2023, as the recovery of international travel accelerated, and (ii) an increase in revenues from local data connectivity services to US$2.5 million in the third quarter of 2024 from US$2.4 million in the same period of 2023, as the Company continued to develop the local data connectivity services business.
- Revenues from PaaS and SaaS services were US$3.0 million, representing an increase of 29.1% from US$2.3 million in the same period of 2023. This increase was primarily attributable to business partners increasingly utilizing PaaS and SaaS services to enhance operational efficiency.
- Revenues from sales of products were US$7.9 million, representing an increase of 9.3% from US$7.3 million in the same period of 2023. This increase was primarily attributable to the increase of US$2.4 million in sales of data related products, which was partially offset by the decrease of US$1.7 million in sales of terminals.
- Geographic Distribution
During the third quarter of 2024, as a percentage of our total revenues, Japan contributed 46.6%, mainland China contributed 27.8%, North America contributed 12.8%, and other countries and regions contributed the remaining 12.8%, compared to 44.2%, 17.2%, 26.3% and 12.3%, respectively, in the same period of 2023.
Cost of Revenues
Cost of revenues was US$13.0 million, representing an increase of 11.5% from US$11.7 million in the same period of 2023. This increase was primarily due to an increase in cost of products sold.
- Cost of services was US$6.9 million, representing a decrease of 5.5% from US$7.3 million in the same period of 2023.
- Cost of products sold was US$6.1 million, representing an increase of 40.4% from US$4.4 million in the same period of 2023, primarily due to product mix.
Gross Profit
Overall gross profit was US$12.19 million, compared to US$12.21 million in the same period of 2023. Overall gross margin was 48.4% in the third quarter of 2024, compared to 51.2% in the same period of 2023.
Gross profit on services was US$10.4 million, compared to US$9.3 million in the same period of 2023. Gross margin on services was 60.0% in the third quarter of 2024, compared to 55.9% in the same period of 2023.
Gross profit on sales of products was US$1.8 million, compared to US$2.9 million in the same period of 2023. Gross margin on sales of products was 23.1% in the third quarter of 2024, compared to 40.1% in the same period of 2023.
Operating Expenses
Total operating expenses were US$10.0 million, compared to US$9.2 million in the same period of 2023.
- Research and development expenses were US$1.4 million, representing a decrease of 10.3% from US$1.6 million in the same period of 2023, primarily attributable to a decrease of US$0.3 million in staff costs, which was partially offset by an increase of US$0.2 million in professional service fees.
- Sales and marketing expenses were US$5.4 million, representing an increase of 41.5% from US$3.8 million in the same period of 2023, primarily due to an increase of US$1.2 million in promotional fees and an increase of US$0.2 million in staff costs.
- General and administrative expenses were US$3.2 million, representing a decrease of 16.2% from US$3.8 million in the same period of 2023, primarily attributable to decreases of US$0.7 million in staff costs and US$0.2 million in share-based compensation expenses, which was partially offset by an increase of US$0.2 million in professional service fees.
Income from Operations
Income from operations was US$3.3 million, compared to US$3.3 million in the same period of 2023.
Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA (Non-GAAP), which excludes the impact of share-based compensation, fair value gain/loss in other investments, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization, was US$4.4 million, compared to US$4.1 million in the same period of 2023.
Net Interest Expenses
Net interest expenses were US$0.03 million, compared to US$0.01 million in the same period of 2023.
Net Income
Net income was US$3.4 million, compared to US$3.5 million in the same period of 2023.
Adjusted Net Income (Non-GAAP)
Adjusted net income, which excludes the impact of share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax, was US$3.7 million, compared to US$3.8 million in the same period of 2023.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.09 in the third quarter of 2024, compared to US$0.09 in the same period of 2023.
Cash and Cash Equivalents and Short-Term Deposits
As of September 30, 2024, the Company had cash and cash equivalents of US$27.7 million, compared to US$26.8 million as of June 30, 2024. This increase was primarily attributable to the net inflow of US$2.0 million from operations and net proceeds of US$1.1 million from bank borrowings, which were partially offset by a repayment of US$1.8 million for bank borrowings and a cash outflow of US$1.1 million for procurement of property and equipment.
Capital Expenditures (“CAPEX”)
CAPEX was US$1.1 million, compared to US$0.8 million in the same period of 2023.
Business Outlook
For the fourth quarter of 2024, UCLOUDLINK expects total revenues to be between US$25.0 million and US$30.0 million, representing an increase of 15.2% to 38.2% compared to the same period of 2023.
The above outlook is based on current market conditions and reflects the Company’s preliminary estimates of market and operating conditions and customer demand.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents, adjusted net income/(loss) and adjusted EBITDA, as supplemental measures to review and assess the Company’s operating performance. The presentation of these 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 U.S. GAAP. Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax. Adjusted EBITDA is defined as net income/(loss) excluding share-based compensation, fair value gain/loss in other investments, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization.
The Company believes that adjusted net income/(loss) and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in income/(loss) from operations and net income/(loss). The Company believes that adjusted net income/(loss) and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non- GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net income/(loss) and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation, fair value gain/loss in other investments and share of profit/loss in equity method investment, net of tax, have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of adjusted net income/(loss). Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.
The Company compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.
Conference Call
The Company will host a conference call to discuss its financial results at 8:30 a.m. U.S. Eastern Time on Tuesday, November 26, 2024 (9:30 p.m. Beijing Time on the same day).
Listeners may access the call by dialing:
| International: | +1-412-902-4272 |
| US (Toll Free): | +1-888-346-8982 |
| UK (Toll Free): | 0-800-279-9489 |
| UK (Local Toll): | 0-207-544-1375 |
| Mainland China (Toll Free): | 400-120-1203 |
| Hong Kong (Toll Free): | 800-905-945 |
| Hong Kong (Local Toll): | +852-3018-4992 |
| Singapore (Toll Free): | 800-120-6157 |
| Australia (Toll Free): | 1-800-121301 |
Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for “UCLOUDLINK GROUP INC.”
Additionally, a live and archived webcast of the conference call will be available at https://ir.ucloudlink.com.
A telephone replay will be available one hour after the end of the conference until December 3, 2024 by dialing:
| US (Toll Free): | +1-877-344-7529 |
| International: | +1-412-317-0088 |
| Canada (Toll Free): | 855-669-9658 |
| Replay Passcode: | 4843023 |
About UCLOUDLINK GROUP INC.
UCLOUDLINK is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. 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,” “confident” and similar statements. Among other things, the financial guidance and quotations from management in this announcement, as well as UCLOUDLINK’s strategic and operational plans, contain forward-looking statements. UCLOUDLINK may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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. Statements that are not historical facts, including but not limited to statements about UCLOUDLINK’s beliefs and expectations, are forward-looking statements. 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: UCLOUDLINK’s strategies; UCLOUDLINK’s future business development, financial condition and results of operations; UCLOUDLINK’s ability to increase its user base and usage of its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service industry; changes in UCLOUDLINK’s revenues, costs or expenditures; governmental policies and regulations relating to the global mobile data connectivity service industry, general economic and business conditions globally and in China; the impact of the COVID-19 pandemic to UCLOUDLINK’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and UCLOUDLINK undertakes no duty to update such information, except as required under applicable law.
For more information, please contact:
| UCLOUDLINK GROUP INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (In thousands of US$, except for share and per share data) |
|||||
| As of December 31, | As of September | ||||
| 2023 | 30, 2024 | ||||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | 23,371 | 27,678 | |||
| Accounts receivable, net | 6,489 | 7,982 | |||
| Inventories | 2,183 | 2,085 | |||
| Prepayments and other current assets | 6,416 | 6,348 | |||
| Other investments | 7,613 | 6,973 | |||
| Amounts due from related parties | 2,945 | 472 | |||
| Total current assets | 49,017 | 51,538 | |||
| Non-current assets | |||||
| Prepayments | 228 | – | |||
| Long-term investments | 1,956 | 1,966 | |||
| Property and equipment, net | 2,433 | 4,235 | |||
| Right-of-use assets, net | 2,321 | 1,520 | |||
| Intangible assets, net | 652 | 555 | |||
| Total non-current assets | 7,590 | 8,276 | |||
| TOTAL ASSETS | 56,607 | 59,814 | |||
| LIABILITIES | |||||
| Current liabilities | |||||
| Short term borrowings | 5,297 | 3,996 | |||
| Accrued expenses and other liabilities | 24,755 | 23,192 | |||
| Accounts payable | 5,314 | 6,976 | |||
| Amounts due to related parties | 1,250 | 531 | |||
| Contract liabilities | 1,425 | 991 | |||
| Operating lease liabilities | 1,082 | 1,015 | |||
| Total current liabilities | 39,123 | 36,701 | |||
| Non-current liabilities | |||||
| Operating lease liabilities | 1,286 | 566 | |||
| Other non-current liabilities | 145 | 102 | |||
| Total non-current liabilities | 1,431 | 668 | |||
| TOTAL LIABILITIES | 40,554 | 37,369 | |||
| SHAREHOLDERS’ EQUITY | |||||
| Class A ordinary shares | 13 | 13 | |||
| Class B ordinary shares | 6 | 6 | |||
| Additional paid-in capital | 240,137 | 241,156 | |||
| Accumulated other comprehensive income | 2,463 | 1,776 | |||
| Accumulated losses | (226,566 | ) | (220,506 | ) | |
| TOTAL SHAREHOLDERS’ EQUITY | 16,053 | 22,445 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 56,607 | 59,814 | |||
| UCLOUDLINK GROUP INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands of US$, except for share and per share data) |
||||||||||||
| For the three months ended | For the nine months ended | |||||||||||
| September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
|||||||||
| Revenues | 23,863 | 25,192 | 63,846 | 65,675 | ||||||||
| Revenues from services | 16,631 | 17,285 | 43,643 | 44,987 | ||||||||
| Sales of products | 7,232 | 7,907 | 20,203 | 20,688 | ||||||||
| Cost of revenues | (11,656 | ) | (13,002 | ) | (33,173 | ) | (32,488 | ) | ||||
| Cost of services | (7,326 | ) | (6,921 | ) | (18,355 | ) | (17,287 | ) | ||||
| Cost of products sold | (4,330 | ) | (6,081 | ) | (14,818 | ) | (15,201 | ) | ||||
| Gross profit | 12,207 | 12,190 | 30,673 | 33,187 | ||||||||
| Research and development expenses | (1,600 | ) | (1,436 | ) | (4,457 | ) | (4,404 | ) | ||||
| Sales and marketing expenses | (3,786 | ) | (5,356 | ) | (10,223 | ) | (13,698 | ) | ||||
| General and administrative expenses | (3,824 | ) | (3,206 | ) | (11,125 | ) | (9,890 | ) | ||||
| Other income/(expense), net | 322 | 1,148 | (423 | ) | 908 | |||||||
| Income from operations | 3,319 | 3,340 | 4,445 | 6,103 | ||||||||
| Interest income | 12 | 11 | 36 | 51 | ||||||||
| Interest expenses | (25 | ) | (42 | ) | (105 | ) | (145 | ) | ||||
| Income before income tax | 3,306 | 3,309 | 4,376 | 6,009 | ||||||||
| Income tax (expense)/credit | (23 | ) | 2 | (67 | ) | (66 | ) | |||||
| Share of profit in equity method investment, net of tax | 202 | 80 | 333 | 117 | ||||||||
| Net income | 3,485 | 3,391 | 4,642 | 6,060 | ||||||||
| Attributable to: | ||||||||||||
| Equity holders of the Company | 3,485 | 3,391 | 4,642 | 6,060 | ||||||||
| Earnings per share for Class A and Class B ordinary shares | ||||||||||||
| Basic | 0.01 | 0.01 | 0.01 | 0.02 | ||||||||
| Diluted | 0.01 | 0.01 | 0.01 | 0.02 | ||||||||
| Earnings per ADS (10 Class A shares equal to 1 ADS) | ||||||||||||
| Basic | 0.09 | 0.09 | 0.13 | 0.16 | ||||||||
| Diluted | 0.09 | 0.09 | 0.13 | 0.16 | ||||||||
| Shares used in earnings per Class A and Class B ordinary share computation: | ||||||||||||
| Basic | 372,334,114 | 377,117,817 | 370,796,417 | 375,798,078 | ||||||||
| Diluted | 372,334,114 | 377,117,817 | 370,796,417 | 375,798,078 | ||||||||
| Net income | 3,485 | 3,391 | 4,642 | 6,060 | ||||||||
| Other comprehensive income, net of tax | ||||||||||||
| Foreign currency translation adjustment | (200 | ) | (828 | ) | 1,111 | (687 | ) | |||||
| Total comprehensive income | 3,285 | 2,563 | 5,753 | 5,373 | ||||||||
| UCLOUDLINK GROUP INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of US$) |
||||||||||||
| For the three months ended | For the nine months ended | |||||||||||
| September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
|||||||||
| Net cash generated from operating activities | 2,765 | 1,989 | 7,820 | 8,646 | ||||||||
| Net cash used in investing activities | (834 | ) | (992 | ) | (1,511 | ) | (3,178 | ) | ||||
| Net cash used in financing activities | (252 | ) | (704 | ) | (394 | ) | (1,329 | ) | ||||
| Increase in cash and cash equivalents | 1,679 | 293 | 5,915 | 4,139 | ||||||||
| Cash and cash equivalents at beginning of the period | 18,628 | 26,831 | 14,921 | 23,371 | ||||||||
| Effect of exchange rates on cash and cash equivalents | (51 | ) | 554 | (580 | ) | 168 | ||||||
| Cash and cash equivalents at end of the period | 20,256 | 27,678 | 20,256 | 27,678 | ||||||||
| UCLOUDLINK GROUP INC. UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS (In thousands of US$) |
||||||||||||
| For the three months ended | For the nine months ended | |||||||||||
| September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
|||||||||
| Reconciliation of Net Income to Adjusted Net Income | ||||||||||||
| Net income | 3,485 | 3,391 | 4,642 | 6,060 | ||||||||
| Add: share-based compensation | 520 | 250 | 2,854 | 1,019 | ||||||||
| fair value (gain)/loss in other investments | (12 | ) | 141 | 272 | 639 | |||||||
| Less: share of profit in equity method investment, net of tax | (202 | ) | (80 | ) | (333 | ) | (117 | ) | ||||
| Adjusted net income | 3,791 | 3,702 | 7,435 | 7,601 | ||||||||
| For the three months ended | For the nine months ended | |||||||||||
| September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
|||||||||
| Reconciliation of Income to Adjusted EBITDA | ||||||||||||
| Net income | 3,485 | 3,391 | 4,642 | 6,060 | ||||||||
| Add: | ||||||||||||
| Interest expense | 25 | 42 | 105 | 145 | ||||||||
| Income tax expense/(credit) | 23 | (2 | ) | 67 | 66 | |||||||
| Depreciation and amortization | 303 | 665 | 750 | 1,604 | ||||||||
| EBITDA | 3,836 | 4,096 | 5,564 | 7,875 | ||||||||
| Add: share-based compensation | 520 | 250 | 2,854 | 1,019 | ||||||||
| fair value (gain)/loss in other investments | (12 | ) | 141 | 272 | 639 | |||||||
| Less: share of profit in equity method investment, net of tax | (202 | ) | (80 | ) | (333 | ) | (117 | ) | ||||
| Adjusted EBITDA | 4,142 | 4,407 | 8,357 | 9,416 | ||||||||
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