iHuman Inc. Announces First Quarter 2024 Unaudited Financial Results

Core Insights - iHuman Inc. reported a decline in revenues and net income for Q1 2024 compared to the same period last year, with revenues at RMB235.0 million (US$32.5 million), down 11.4$23.3 million), down from RMB185.6 million in the same period last year, with a gross margin of 71.5%, up from 70.0% [10] - Operating income decreased significantly to RMB17.5 million (US$2.4 million) from RMB56.7 million in the same period last year [12] - Net income also fell to RMB22.3 million (US$3.1 million) compared to RMB53.6 million in the same period last year [13][30] Operating Expenses - Total operating expenses increased by 16.9% to RMB150.6 million (US$20.9 million) from RMB128.8 million in the same period last year [11] - Research and development expenses rose by 10.1$9.4 million), while sales and marketing expenses surged by 36.0% to RMB55.0 million (US$7.6 million) [11] Product Development and Strategy - The company launched a new product, iHuman Smart Coder, aimed at enhancing children's digital literacy and problem-solving skills through a structured curriculum [3] - iHuman is focusing on integrating AI technologies into its products, enhancing user engagement through features like the AI-powered "Challenge" in iHuman Magic Thinking [4] - The company is expanding its international presence with new products like Aha Makeover and bekids Library, targeting markets beyond mainland China [5][6] User Engagement - The increase in average total MAUs to 26.38 million reflects strong user engagement and satisfaction, which the company attributes to its commitment to product excellence [7] - The company aims to maintain this engagement by continuously enhancing its product offerings and investing in AI research and development [7]