Third Quarter 2023 Financial and Operational Highlights
- Net revenues were
RMB425.1 million (US$58.3 million ) in the third quarter of 2023, compared withRMB565.2 million in the third quarter of 2022. - Average total mobile MAUs1 in the third quarter of 2023 was 42.1 million, compared with 49.7 million in the third quarter of 2022.
- Average total monthly paying users2 in the third quarter of 2023 was 402.6 thousand, compared with 476.7 thousand in the third quarter of 2022.
Mr.
Ms.
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1 Refers to the average monthly number of active users across our platforms and Apps in a given period, calculated by dividing (i) the sum of mobile active users for each month of such period, by (ii) the number of months in the same period.
2 Refers to the average monthly number of paying users in a given period, calculated by dividing (i) the total number of paying users in each month of such period by (ii) the number of months in the same period.
Third quarter 2023 Unaudited Financial Results
Net revenues were
Cost of revenues was
Gross profit was
Non-GAAP gross profit3 was
Gross margin in the third quarter of 2023 was 25%, compared with 33% in the third quarter of 2022, mainly due to an increase in the revenue sharing percentage resulting from the adjustment in revenue sharing policies in the third quarter of 2023.
Non-GAAP gross margin in the third quarter of 2023 was 25%, compared with 34% in the third quarter of 2022.
Operating expenses were
Research and development expenses were
Selling and marketing expenses were
General and administrative expenses were
Operating loss was
Non-GAAP operating loss4 was
___________________
3 Non-GAAP gross profit is a non-GAAP financial measure, which is defined as gross profit excluding share-based compensation expenses. This adjustment amounted to
4 Non-GAAP operating loss is a non-GAAP financial measure, which is defined as operating loss excluding share-based compensation expenses. This adjustment amounted to
Other expenses were
Net loss was
Non-GAAP net loss was
Net loss attributable to
Non-GAAP net loss attributable to
Basic and diluted net loss per ADS were both
Non-GAAP basic and diluted net loss per ADS7 were both
Balance Sheets
As of
___________________
5 ADS refers to American Depositary Share. Each ADS represents two hundred Class A ordinary shares of the Company. Basic and diluted net loss per ADS is net loss attributable to LIZHI INC.’s ordinary shareholders divided by the weighted average number of ADS.
6 Non-GAAP net loss attributable to LIZHI INC.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net loss attributable to LIZHI INC.’s ordinary shareholders, excluding share-based compensation expenses. These adjustments amounted to
7 Non-GAAP basic and diluted net loss per ADS is a non-GAAP financial measure, which is defined as non-GAAP net loss attributable to LIZHI INC.’s ordinary shareholders divided by the weighted average number of ADS used in the calculation of basic and diluted net income per ADS.
Conference Call
The Company’s management will host an earnings conference call at
For participants who wish to join the call, please access the link provided below to complete the online registration 20 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.
Registration Link: | https://register.vevent.com/register/BI23af8f892c1b4c1ab2e8f0ed20fdbcee |
Once registration is completed, please dial in 10 minutes before the scheduled start time of the earnings call and enter the personal PIN as instructed to connect to the call.
Additionally, a live webcast of the conference call and a replay of the webcast will be available on the Company’s investor relations website at http://ir.lizhi.fm.
About
For more information, please visit: http://ir.lizhi.fm.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in
However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures in isolation from, superior to, or as an alternative to the financial measure prepared in accordance with
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
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
For investor and media inquiries, please contact:
In
IR Department
Tel: +86 (20) 8381-8791
E-mail: ir@lizhi.fm
Tel: +86 (10) 6508-0677
E-mail: Lizhi@tpg-ir.com
In
Tel: +1-212-481-2050
E-mail: Lizhi@tpg-ir.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||
December 31, 2022 | September 30, 2023 | September 30, 2023 | |||
RMB | RMB | US$ | |||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 568,192 | 605,436 | 82,982 | ||
Short-term investments | 111,353 | - | - | ||
Restricted cash | 10,323 | 10,409 | 1,427 | ||
Accounts receivable, net | 3,233 | 2,238 | 307 | ||
Prepayments and other current assets | 30,391 | 34,471 | 4,725 | ||
Total current assets | 723,492 | 652,554 | 89,441 | ||
Non-current assets | |||||
Property, equipment and leasehold improvement, net | 26,546 | 17,631 | 2,417 | ||
Intangible assets, net | 1,183 | 1,554 | 213 | ||
Right-of-use assets, net | 25,116 | 18,430 | 2,526 | ||
Other non-current assets | - | 10,864 | 1,489 | ||
Total non-current assets | 52,845 | 48,479 | 6,645 | ||
TOTAL ASSETS | 776,337 | 701,033 | 96,086 | ||
LIABILITIES | |||||
Current liabilities | |||||
Accounts payable | 53,832 | 43,943 | 6,023 | ||
Deferred revenue | 35,677 | 27,222 | 3,731 | ||
Salary and welfare payable | 136,837 | 136,241 | 18,673 | ||
Taxes payable | 5,421 | 4,616 | 633 | ||
Short-term loans | 73,765 | 7,180 | 984 | ||
Lease liabilities due within one year | 18,372 | 13,134 | 1,800 | ||
Accrued expenses and other current liabilities | 47,622 | 41,936 | 5,749 | ||
Total current liabilities | 371,526 | 274,272 | 37,593 | ||
Non-current liabilities | |||||
Lease liabilities | 8,195 | 5,780 | 792 | ||
Other non-current liabilities | 3,952 | - | - | ||
Total non-current liabilities | 12,147 | 5,780 | 792 | ||
TOTAL LIABILITIES | 383,673 | 280,052 | 38,385 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||
(All amounts in thousands, except for share, ADS, per share data and per ADS data) | ||||||||
December 31, 2022 | September 30, 2023 | September 30, 2023 | ||||||
RMB | RMB | US$ | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Class A Ordinary shares ( | ||||||||
shares authorized, 818,962,260 shares issued and 803,607,050 shares outstanding as of 1,268,785,000 shares authorized, 838,962,260 shares issued and 827,140,610 shares outstanding as of 2023). | 543 | 557 | 76 | |||||
Class | ||||||||
shares authorized, issued and outstanding as of 2022 and | 168 | 168 | 23 | |||||
(10 | ) | (8 | ) | (1 | ) | |||
Additional paid in capital | 2,657,433 | 2,683,447 | 367,797 | |||||
Statutory reserves | 529 | 529 | 73 | |||||
Accumulated deficit | (2,280,543 | ) | (2,277,859 | ) | (312,207 | ) | ||
Accumulated other comprehensive income | 14,557 | 20,612 | 2,826 | |||||
TOTAL LIZHI Inc.’s shareholders’ equity | 392,677 | 427,446 | 58,587 | |||||
Non-controlling interests | (13 | ) | (6,465 | ) | (886 | ) | ||
TOTAL SHAREHOLDERS’ EQUITY | 392,664 | 420,981 | 57,701 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 776,337 | 701,033 | 96,086 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(All amounts in thousands, except for share, ADS, per share data and per ADS data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2022 | June 30, 2023 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | ||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
Net revenues | ||||||||||||||||||||
Audio entertainment revenues | 562,573 | 590,530 | 423,110 | 57,992 | 1,589,613 | 1,642,406 | 225,110 | |||||||||||||
Podcast, advertising and other revenues | 2,655 | 2,327 | 1,992 | 273 | 8,022 | 6,544 | 897 | |||||||||||||
Total net revenues | 565,228 | 592,857 | 425,102 | 58,265 | 1,597,635 | 1,648,950 | 226,007 | |||||||||||||
Cost of revenues (1) | (376,159 | ) | (418,446 | ) | (317,302 | ) | (43,490 | ) | (1,064,843 | ) | (1,170,307 | ) | (160,404 | ) | ||||||
Gross profit | 189,069 | 174,411 | 107,800 | 14,775 | 532,792 | 478,643 | 65,603 | |||||||||||||
Operating expenses (1) | ||||||||||||||||||||
Selling and marketing expenses | (71,167 | ) | (67,522 | ) | (59,098 | ) | (8,100 | ) | (191,932 | ) | (185,468 | ) | (25,421 | ) | ||||||
General and administrative expenses | (27,093 | ) | (23,934 | ) | (25,075 | ) | (3,437 | ) | (80,021 | ) | (71,977 | ) | (9,865 | ) | ||||||
Research and development expenses | (78,320 | ) | (75,184 | ) | (83,767 | ) | (11,481 | ) | (219,676 | ) | (230,862 | ) | (31,642 | ) | ||||||
Total operating expenses | (176,580 | ) | (166,640 | ) | (167,940 | ) | (23,018 | ) | (491,629 | ) | (488,307 | ) | (66,928 | ) | ||||||
Operating income/(loss) | 12,489 | 7,771 | (60,140 | ) | (8,243 | ) | 41,163 | (9,664 | ) | (1,325 | ) | |||||||||
Interest expense | (468 | ) | (554 | ) | (70 | ) | (10 | ) | (1,826 | ) | (1,463 | ) | (201 | ) | ||||||
Foreign exchange losses | (311 | ) | (352 | ) | (283 | ) | (39 | ) | (1,121 | ) | (894 | ) | (123 | ) | ||||||
Interest income and investment income | 2,198 | 2,973 | 2,090 | 286 | 4,221 | 8,367 | 1,147 | |||||||||||||
Government grants | 4,178 | 2,005 | 2,290 | 314 | 10,973 | 7,484 | 1,026 | |||||||||||||
Others, net | 1,736 | 142 | (5,851 | ) | (802 | ) | 1,787 | (5,441 | ) | (746 | ) | |||||||||
Income/(loss) before income taxes | 19,822 | 11,985 | (61,964 | ) | (8,494 | ) | 55,197 | (1,611 | ) | (222 | ) | |||||||||
Income tax expenses | - | (424 | ) | (37 | ) | (5 | ) | (104 | ) | (500 | ) | (69 | ) | |||||||
Net income/(loss) | 19,822 | 11,561 | (62,001 | ) | (8,499 | ) | 55,093 | (2,111 | ) | (291 | ) | |||||||||
Net loss attributable to the non-controlling interests shareholders | 1 | 1,646 | 2,116 | 290 | 4 | 4,795 | 657 | |||||||||||||
Net income/(loss) attributable to LIZHI INC.’s ordinary shareholders | 19,823 | 13,207 | (59,885 | ) | (8,209 | ) | 55,097 | 2,684 | 366 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) | |||||||||||||||||
(All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2022 | June 30, 2023 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | |||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||
Net income/(loss) | 19,822 | 11,561 | (62,001 | ) | (8,499 | ) | 55,093 | (2,111 | ) | (291 | ) | ||||||
Other comprehensive income/(loss): | |||||||||||||||||
Foreign currency translation adjustments | 14,602 | 10,428 | (1,309 | ) | (179 | ) | 28,728 | 5,894 | 808 | ||||||||
Total comprehensive income/(loss) | 34,424 | 21,989 | (63,310 | ) | (8,678 | ) | 83,821 | 3,783 | 517 | ||||||||
Comprehensive loss attributable to non‑controlling interests shareholders | 1 | 1,811 | 2,085 | 286 | 4 | 4,956 | 679 | ||||||||||
Comprehensive income/(loss) attributable to LIZHI INC.’s ordinary shareholders | 34,425 | 23,800 | (61,225 | ) | (8,392 | ) | 83,825 | 8,739 | 1,196 | ||||||||
Net income/(loss) attributable to LIZHI INC.’s ordinary shareholders per share | |||||||||||||||||
—Basic | 0.02 | 0.01 | (0.06 | ) | (0.01 | ) | 0.05 | 0.00 | 0.00 | ||||||||
—Diluted | 0.02 | 0.01 | (0.06 | ) | (0.01 | ) | 0.05 | 0.00 | 0.00 | ||||||||
Weighted average number of ordinary shares | |||||||||||||||||
—Basic | 1,040,595,117 | 1,074,052,668 | 1,087,902,701 | 1,087,902,701 | 1,031,562,237 | 1,073,716,117 | 1,073,716,117 | ||||||||||
—Diluted | 1,045,863,031 | 1,079,619,876 | 1,087,902,701 | 1,087,902,701 | 1,035,643,138 | 1,078,497,199 | 1,078,497,199 | ||||||||||
Net income/(loss) attributable to LIZHI INC.’s ordinary shareholders per ADS | |||||||||||||||||
—Basic | 3.81 | 2.46 | (11.01 | ) | (1.51 | ) | 10.68 | 0.50 | 0.07 | ||||||||
—Diluted | 3.79 | 2.45 | (11.01 | ) | (1.51 | ) | 10.64 | 0.50 | 0.07 | ||||||||
Weighted average number of ADS | |||||||||||||||||
—Basic | 5,202,976 | 5,370,263 | 5,439,514 | 5,439,514 | 5,157,811 | 5,368,581 | 5,368,581 | ||||||||||
—Diluted | 5,229,315 | 5,398,099 | 5,439,514 | 5,439,514 | 5,178,216 | 5,392,486 | 5,392,486 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) | |||||||||||||
(All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||||||||||
(1) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, 2022 | June 30, 2023 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | |||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Cost of revenues | 1,728 | 1,219 | 109 | 15 | 5,545 | 3,076 | 422 | ||||||
Selling and marketing expenses | 455 | 456 | 485 | 66 | 1,729 | 1,566 | 215 | ||||||
General and administrative expenses | 2,157 | 1,912 | 2,019 | 277 | 7,590 | 7,425 | 1,018 | ||||||
Research and development expenses | 3,359 | 2,194 | 2,479 | 340 | 8,713 | 8,963 | 1,228 |
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | |||||||||||||||||
(All amounts in thousands, except for share, ADS, per share data and per ADS data) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2022 | June 30, 2023 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | |||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||
Gross profit | 189,069 | 174,411 | 107,800 | 14,775 | 532,792 | 478,643 | 65,603 | ||||||||||
Share-based compensation expenses | 1,728 | 1,219 | 109 | 15 | 5,545 | 3,076 | 422 | ||||||||||
Non-GAAP gross profit | 190,797 | 175,630 | 107,909 | 14,790 | 538,337 | 481,719 | 66,025 | ||||||||||
Operating income/(loss) | 12,489 | 7,771 | (60,140 | ) | (8,243 | ) | 41,163 | (17,435 | ) | (1,325 | ) | ||||||
Share-based compensation expenses | 7,699 | 5,781 | 5,092 | 698 | 23,577 | 15,249 | 2,883 | ||||||||||
Non-GAAP operating income/(loss) | 20,188 | 13,552 | (55,048 | ) | (7,545 | ) | 64,740 | (2,186 | ) | 1,558 | |||||||
Net income/(loss) | 19,822 | 11,561 | (62,001 | ) | (8,499 | ) | 55,093 | (13,672 | ) | (291 | ) | ||||||
Share-based compensation expenses | 7,699 | 5,781 | 5,092 | 698 | 23,577 | 15,249 | 2,883 | ||||||||||
Non-GAAP net income/(loss) | 27,521 | 17,342 | (56,909 | ) | (7,801 | ) | 78,670 | 1,577 | 2,592 | ||||||||
Net income/(loss) attributable to LIZHI INC.’s ordinary shareholders | |||||||||||||||||
Share-based compensation expenses | 7,699 | 5,781 | 5,092 | 698 | 23,577 | 15,249 | 2,883 | ||||||||||
Non-GAAP net income/(loss) attributable to LIZHIINC.’s ordinary shareholders | 27,522 | 18,988 | (54,793 | ) | (7,511 | ) | 78,674 | 4,726 | 3,249 | ||||||||
Non-GAAP net income/(loss) attributable to LIZHI INC.’s ordinary shareholders per share | |||||||||||||||||
—Basic | 0.03 | 0.02 | (0.05 | ) | (0.01 | ) | 0.08 | 0.00 | 0.00 | ||||||||
—Diluted | 0.03 | 0.02 | (0.05 | ) | (0.01 | ) | 0.08 | 0.00 | 0.00 | ||||||||
Weighted average number of ordinary shares | |||||||||||||||||
—Basic | 1,040,595,117 | 1,074,052,668 | 1,087,902,701 | 1,087,902,701 | 1,031,562,237 | 1,073,716,117 | 1,073,716,117 | ||||||||||
—Diluted | 1,045,863,031 | 1,079,619,876 | 1,087,902,701 | 1,087,902,701 | 1,035,643,138 | 1,078,497,199 | 1,078,497,199 | ||||||||||
Non-GAAP net income/(loss) attributable to LIZHI INC.’s ordinary shareholders per ADS | |||||||||||||||||
—Basic | 5.29 | 3.54 | (10.07 | ) | (1.38 | ) | 15.25 | 0.88 | 0.61 | ||||||||
—Diluted | 5.26 | 3.52 | (10.07 | ) | (1.38 | ) | 15.19 | 0.88 | 0.60 | ||||||||
Weighted average number of ADS | |||||||||||||||||
—Basic | 5,202,976 | 5,370,263 | 5,439,514 | 5,439,514 | 5,157,811 | 5,368,581 | 5,368,581 | ||||||||||
—Diluted | 5,229,315 | 5,398,099 | 5,439,514 | 5,439,514 | 5,178,216 | 5,392,486 | 5,392,486 |
Source:
2023 GlobeNewswire, Inc., source