Financial Performance - Revenue for the six months ended June 30, 2024, reached $638.287 million, a 26.1% increase compared to $506.133 million in the same period of 2023[4]. - Net income for the same period was $166.536 million, reflecting a 22.1% growth from $136.365 million year-over-year[4]. - Gross profit increased by 27.4% to $131.201 million, up from $102.960 million in the previous year[4]. - Adjusted EBITDA for the six months was $62.881 million, a 21.4% increase from $51.802 million in 2023[4]. - The company achieved profitability for seven consecutive quarters since turning profitable in Q4 2022, driven by infrastructure upgrades and improved model training efficiency[42]. - The profit attributable to equity holders for H1 2024 was $9.3 million, a decrease from $10.2 million in the same period of 2023[88]. - The adjusted net profit for H1 2024 was $11.8 million, up 32.4% from $8.9 million in H1 2023[91]. - The company reported a total comprehensive income of $7,780 thousand for the period, compared to $8,303 thousand in the prior year[106]. Market Trends and Expansion - The global mobile application download volume reached 257 billion in 2023, with a 1% year-over-year growth, indicating a resilient mobile app market[9]. - Mobile advertising spending reached $362 billion in 2023, with an 8% year-over-year increase, and is projected to exceed $400 billion in 2024[9]. - The company is focusing on expanding its presence in emerging markets such as South Korea, Brazil, Mexico, and Turkey, where user spending has increased by 25% year-over-year[9]. - By 2025, overseas marketing for Chinese companies is expected to exceed $50 billion, indicating a strong trend in the mobile internet expansion abroad[10]. - The company is committed to becoming a Growth Hub for small and medium developers, addressing their globalization challenges through SaaS tools[44]. Advertising Technology and Services - The demand for advertising technology services is increasing as developers face challenges in user acquisition and monetization in a competitive mobile app ecosystem[5]. - Mintegral has established strong commercial relationships and industry recognition among Chinese mobile app developers, benefiting from the growing overseas marketing market[10]. - The advertising market in Europe and the US is showing stability and growth, with major platforms like Google and Meta performing well[6]. - The company covers the entire programmatic advertising industry chain, enhancing client relationships and improving algorithm capabilities through data integration[15]. - The platform's programmatic advertising model significantly improves ad efficiency and ROI for advertisers[20]. - The company has invested heavily in building an intelligent bidding system since the second half of 2021 to enhance its algorithm capabilities[12]. - The company launched the Target ROAS smart bidding feature in May 2023, which has contributed over 60% of Mintegral's total revenue in H1 2024[42]. Client Base and Revenue Sources - Mintegral's client base spans approximately 130 countries, with 72.2% of revenue coming from gaming clients[27]. - Over 97% of devices reached by Mintegral are from overseas markets, highlighting the platform's global reach[28]. - The Ad-tech segment accounts for over 90% of total net income, while Mar-tech is still in early product development stage[22]. - Game-related revenue on the Mintegral platform was $436.2 million, accounting for 72.2% of total Mintegral revenue, with a year-over-year increase of 16.4%[70]. - Non-game category revenue surged to $167.5 million, marking an 80.2% year-on-year growth from $92.9 million in the same period of 2023, driven by advancements in the smart bidding system[46]. Operational Efficiency and Cost Management - The company expects to continuously lower server costs as scale increases and optimize algorithm efficiency, enhancing future gross margins[26]. - The unit cost of server resources has been reduced to around 5% in H1 2024, down from 9% at the beginning of 2022, through optimization of the cloud-native platform[42]. - The overall accounts receivable turnover days for the group in H1 2024 was 44 days, down from 51 days in 2023 and 52 days in 2022[85]. - The accounts payable turnover days remained stable at 86 days in H1 2024, consistent with 2023 and improved from 90 days in 2022[86]. Research and Development - Research and development expenses rose by 49.4% to $62.8 million, reflecting increased costs associated with the development of smart bidding systems[79]. - The company has a top-tier R&D team with members from prestigious universities and experience in leading tech companies, enhancing its technical capabilities in data science and cloud computing[33]. - The company has embraced AI trends by integrating large model technology into its cloud-native platform, MaxCloud, enhancing DevOps processes and product delivery efficiency[52]. Financial Position and Liabilities - Total assets as of June 30, 2024, were $745.0 million, an increase from $691.6 million as of December 31, 2023[93]. - Total liabilities amounted to $505.8 million, up from $432.4 million as of December 31, 2023, resulting in a debt-to-asset ratio of 67.9%[93]. - The company reported a net cash flow from operating activities of $118.7 million in H1 2024, representing a significant increase of 147.4% year-over-year from $48.0 million in 2023[88]. - The company incurred a net cash outflow from investing activities of $71,281 thousand, compared to $37,833 thousand in the same period last year, indicating an increase in investment activities[114]. Shareholder Information and Corporate Governance - The company’s executive director, Duan Wei, holds a controlling interest of 64.65% in the company[180]. - The total number of issued shares is 1,590,857,164, with a major shareholder, Shunliu, holding 1,028,464,229 shares, representing 64.65% of the total issued shares[185]. - The employee restricted share unit plan was adopted on September 27, 2018, to incentivize employees and retain talent for future growth[187]. - The plan allows for participation from existing employees and consultants, excluding directors and senior management[188].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a revenue of USD 638 million in H1 2024, representing a year-on-year increase of 26.1%. The adjusted net profit was USD 11.84 million, up 32.4% year-on-year, and adjusted EBITDA was USD 62.88 million, reflecting a 21.4% increase year-on-year. The growth is primarily driven by the advertising technology business centered around Mintegral [4][5] - The company maintains its profit forecast for 2024-2026, expecting net profits of USD 40 million, USD 72 million, and USD 88 million for the respective years, with corresponding EPS of USD 0.03, USD 0.05, and USD 0.06. The current stock price corresponds to P/E ratios of 8.0, 4.4, and 3.6 for the years 2024, 2025, and 2026 respectively [4][6] Revenue and Profit Growth - In H1 2024, the advertising technology business generated USD 630 million in revenue, accounting for 98.6% of total revenue, with a gross margin of 19.7%. Programmatic advertising revenue from Mintegral was USD 604 million, up 29% year-on-year, while non-programmatic advertising revenue decreased by 16.4% [5][6] - The marketing technology business generated USD 8.7 million in revenue, with a gross margin of 78.9% [5] Strategic Developments - The company is focusing on platform scale growth and multi-vertical expansion as mid-term strategic goals. Non-gaming category revenue reached USD 167 million in H1 2024, up 80.2% year-on-year, indicating the effectiveness of the multi-vertical expansion strategy [6] - In July 2024, Mintegral launched a new Target-CPE feature for event-based ad optimization, enhancing algorithm capabilities and innovative ad strategies, which is expected to further drive revenue growth [6] Financial Projections - The company projects revenue growth from USD 1.054 billion in 2023 to USD 1.617 billion in 2026, with a compound annual growth rate (CAGR) of 20.1% [7] - Net profit is expected to grow from USD 22 million in 2023 to USD 88 million in 2026, with a significant increase in net profit margin from 2.1% to 5.5% over the same period [7]

Financial Performance - Revenue for the six months ended June 30, 2024, reached $638.287 million, a 26.1% increase compared to $506.133 million in the same period of 2023[2] - Net income for the same period was $166.536 million, reflecting a 22.1% growth from $136.365 million year-over-year[2] - Gross profit increased to $131.201 million, up 27.4% from $102.960 million in the previous year[2] - Adjusted EBITDA for the period was $62.881 million, representing a 21.4% increase from $51.802 million in 2023[2] - The company has achieved profitability for seven consecutive quarters since Q4 2022, with revenue continuing to rise quarter-over-quarter in 2023 and into the first half of 2024[41] - In 2023, Mintegral's revenue increased by 29.0% year-over-year, while non-programmatic advertising revenue decreased by 16.4%, yet the advertising technology business net income grew by 22.3%[42] - The company recorded a profit attributable to equity holders of $9.3 million, down from $10.2 million in the same period last year[89] - The net profit for the six months ended June 30, 2024, was $7.337 million, down from $8.522 million in 2023, indicating a decrease of about 14%[108] - The basic earnings per share for the period was $0.61, compared to $0.66 in the same period last year[108] Advertising Technology - The Ad-tech segment, centered around Mintegral, accounts for over 90% of the company's net revenue, while the Mar-tech segment is still in the early stages of product development[20] - The Ad-tech segment generated $629.6 million in revenue, accounting for 98.6% of total revenue, with a year-on-year growth of 26.2%[64] - Programmatic advertising revenue was $603.7 million, making up 95.9% of Ad-tech revenue, with a 29.0% increase compared to the previous year[67] - The company aims to integrate its Ad-tech and Mar-tech capabilities to create a comprehensive product matrix covering various stages of developer growth[19] - The company has invested heavily in building a smart bidding system since the second half of 2021 to enhance its algorithm capabilities[12] - The Target ROAS smart bidding feature launched in May 2023 has contributed over 60% of Mintegral's total revenue in the first half of 2024[42] - The Mintegral platform processes over 200 billion daily ad requests, serving more than 10,000 global top advertisers and 100,000 leading apps[18] Market Trends - The global mobile advertising expenditure reached $362 billion in 2023, with an expected growth to over $400 billion in 2024, indicating a compound annual growth rate (CAGR) of 16.2% from 2019 to 2024[9] - The trend of hybrid monetization is becoming mainstream among top mobile games, requiring higher demands on advertising algorithms[12] - The trend of Chinese companies expanding overseas is expected to see marketing expenditures surpassing $50 billion by 2025, indicating a robust growth trajectory[10] - The advertising market in Europe and the US is showing resilience, with major platforms like Google and Meta continuing to perform well, contributing to a stable upward trend in the overall advertising market[5] Customer Base and Global Presence - Mintegral's main customers are in the gaming sector, accounting for 72.2% of total revenue, while non-gaming sectors increased from 19.9% in H1 2023 to 27.8%[26] - Over 97% of devices reached by Mintegral are from overseas regions, indicating a strong international presence[27] - Mintegral operates in approximately 130 countries, showcasing its global customer distribution[25] - Currently, 40% of the company's clients are from China, while 97% of traffic originates from overseas markets, indicating a strong global presence[49] Research and Development - The company has a strong R&D team with expertise from top universities and experience from leading tech firms, enhancing its technological capabilities[32] - Capitalized R&D expenses combined with expensed R&D expenses totaled $96.7 million, a 21.2% increase compared to the same period last year[81] - The increase in expensed R&D was 49.4% year-on-year, reaching $62.8 million, mainly due to the development of an intelligent bidding system[81] Financial Position - The company's total assets as of June 30, 2024, amounted to $745.0 million, an increase from $691.6 million as of December 31, 2023[93] - The total liabilities were $505.8 million as of June 30, 2024, compared to $432.4 million as of December 31, 2023, resulting in a debt-to-asset ratio of 67.9%[93] - Cash and cash equivalents decreased to $84.0 million as of June 30, 2024, down from $146.3 million as of December 31, 2023[94] - The company reported a net current liability of $71,176,000, raising concerns about its ability to continue as a going concern[114] Strategic Goals - The company aims to expand its platform scale and diversify its offerings as part of its mid-term strategic goals[70] - Mintegral aims to become a Growth Hub for small and medium developers, focusing on addressing their globalization challenges and enhancing their market penetration[43] - The company is committed to a globalization strategy, actively expanding its market share in the Asia-Pacific, EMEA, and Americas regions[50] Legal and Regulatory Matters - The company reached a settlement agreement with a shareholder (Seller A) regarding the acquisition of an 18.56% stake in Beijing Hot Cloud Technology, agreeing to pay a total of $25,684,000, which includes $23,512,000 as settlement and $2,172,000 in related costs[139] - The company is currently involved in an ongoing dispute with another shareholder (Seller B) regarding a 15.30% stake in Beijing Hot Cloud Technology, with a court ruling requiring the company to pay approximately $32,249,000 plus additional penalties and fees[140] - The company has applied to the National Development and Reform Commission (NDRC) for a security review related to the acquisition of Beijing Hot Cloud Technology, which is currently under review[140]

Investment Rating - Buy rating maintained for the company [3][4] Core Views - Mintegral contributes to revenue growth, with six consecutive quarters of profitability, supporting the Buy rating [4][5] - The company achieved record-high revenue and profits in 2024Q1, with revenue of USD 301 million (YoY +23.3%, QoQ +8.2%) and adjusted net profit of USD 8.868 million (YoY +96.6%, QoQ +45.0%) [5] - Mintegral's revenue reached USD 284 million (YoY +25.4%, QoQ +10.3%), accounting for 94.1% of total revenue [5] - The company is expected to achieve net profits of USD 40/72/88 million for 2024-2026, with EPS of USD 0.03/0.05/0.06, and PE ratios of 16.8/9.3/7.6x [5] Financial Summary and Valuation Metrics - 2024Q1 revenue: USD 301 million (YoY +23.3%, QoQ +8.2%) [5] - 2024Q1 adjusted EBITDA: USD 30.697 million (YoY +17.7%, QoQ +2.7%) [5] - 2024Q1 gross margin: 20.5% (YoY +1.3 pct) [6] - 2024Q1 net margin: 2.35% (YoY +1.0 pct) [6] - 2024-2026 revenue forecast: USD 1.266/1.456/1.617 billion, with YoY growth of 20.1%/15.0%/11.1% [7] - 2024-2026 net profit forecast: USD 40/72/88 million, with YoY growth of 83.3%/80.7%/22.2% [7] Business Highlights - Mintegral's non-gaming revenue reached USD 80.8 million (YoY +83.2%, QoQ +8.8%), accounting for 28.5% of Mintegral's total revenue (YoY +9.0 pct) [5] - Gaming revenue remained the core, contributing USD 203 million (YoY +11.4%, QoQ +10.9%), accounting for 71.5% of Mintegral's total revenue [5] - E-commerce and mid-to-hardcore gaming clients are expected to drive Mintegral's growth [5] - The company increased R&D investment in ROAS, with R&D expenses reaching USD 29.52 million (YoY +57.8%) [6] Industry Insights - Mid-to-hardcore games accounted for 59% of the global mobile gaming market in 2023, indicating potential for further growth in this segment [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company achieved record high performance in Q1 2024, with revenue of $301 million, a year-on-year increase of 23.3% and a quarter-on-quarter increase of 8.2%. Adjusted net profit reached $8.868 million, up 96.6% year-on-year and 45.0% quarter-on-quarter [6] - The programmatic advertising platform Mintegral contributed significantly to revenue, generating $284 million, which accounts for 94.1% of total revenue. The growth in profit is attributed to the strong performance of Mintegral [6] - The company is expected to maintain its profitability, with projected net profits of $40 million, $72 million, and $88 million for 2024, 2025, and 2026 respectively, corresponding to EPS of $0.03, $0.05, and $0.06 [6][8] Revenue and Profitability - The company's revenue structure is diversifying, with non-gaming categories generating approximately $80.8 million, a year-on-year increase of 83.2%. E-commerce clients are becoming a significant growth driver [6] - The gaming category remains the core revenue source, generating $203 million, a year-on-year increase of 11.4% [6] - The gross margin for the advertising technology business improved to 19.7%, contributing to an overall gross margin increase to 20.5% [7] Financial Metrics - For 2024, the company expects revenue to reach $1.266 billion, with a year-on-year growth rate of 20.1%. The net profit is projected to be $40 million, reflecting an 83.3% increase year-on-year [8] - The company's net profit margin is expected to improve to 3.2% in 2024, with a return on equity (ROE) projected at 13.8% [8] - The current price-to-earnings (P/E) ratio is 16.8 for 2024, decreasing to 7.6 by 2026, indicating a favorable valuation trend [8]

Investment Rating - The report maintains a "BUY" rating for Mobvista Inc. with a target price of HK$6.00, indicating a potential upside of 92.9% from the current price of HK$3.11 [2][4]. Core Insights - Mobvista reported strong 1Q24 results with revenue and adjusted net profit increasing by 23% and 97% year-over-year, respectively. The non-gaming business revenue contribution rose to 29% in 1Q24 from 19.5% in 1Q23 [2]. - The upgraded smart bidding system has significantly improved revenue growth, particularly in the Mintegral platform, which saw a revenue increase of 25.4% year-over-year in 1Q24 [2]. - A settlement agreement regarding Reyun transactions has eased previous overhangs, allowing investors to focus on Mobvista's organic growth and profitability improvements [2]. Summary by Sections Earnings Summary - Mobvista's revenue for 1Q24 was US$301.5 million, reflecting a 23% increase year-over-year. The adjusted net profit surged to US$8.9 million, a 97% increase compared to the previous year [2][8]. - The gross profit margin reached 20.5%, up 1.3 percentage points year-over-year, driven by higher advertising efficiency and controlled costs in the mar-tech business [2][8]. Revenue Breakdown - The adtech/mar-tech segment reported revenue growth of 23% and 19% year-over-year, with programmatic advertising growing by 25% [2][9]. - Non-gaming revenue share increased significantly, with e-commerce and social media being key growth drivers [2][10]. Financial Forecasts - The report forecasts revenue growth of 20% year-over-year for FY24E, with adjusted net profit expected to grow by 91% [2][11]. - The financial outlook for FY24E includes projected revenue of US$1.265 billion and adjusted net profit of US$37 million [13][15]. Valuation - The report employs a sum-of-the-parts (SOTP) valuation method, assigning a 20x FY24E P/E to the ad-tech business and a 3.0x FY24E P/S to the mar-tech business, leading to a total equity value of HK$6.00 per share [12][2].

Investment Rating - The report maintains a "Buy" rating for Mvagista Inc. with a target price of HKD 6.00, representing a potential upside of 92.9% from the current price of HKD 3.11 [2][3]. Core Insights - Mvagista Inc. reported strong first-quarter performance with a year-on-year net profit growth of 23% and an adjusted net profit growth of 97%. The non-gaming business revenue contribution reached 29%, up from 19.5% in the same quarter of the previous year [2][3]. - The upgraded smart bidding system has significantly contributed to revenue, with the Mitegral platform's revenue accelerating to a year-on-year growth of 25.4% in Q1 [2][3]. - The company is optimistic about its overall momentum for FY24E, forecasting a revenue growth of 20% and a profit growth of 91% [2][3]. Summary by Sections Financial Performance - Q1 revenue reached USD 301.5 million, reflecting a 23% year-on-year increase. Adjusted net profit for the same period was USD 8.87 million, exceeding expectations by 4% [2][3][8]. - The gross profit margin (GPM) for Q1 was 20.5%, up 1.3 percentage points year-on-year, driven by improved advertising efficiency and disciplined cost management [2][3][8]. Revenue Breakdown - The advertising technology segment saw a year-on-year revenue growth of 23%, with programmatic advertising growing by 25% [2][3]. - Non-gaming revenue, particularly from e-commerce and social media, has become a key growth driver, contributing significantly to the overall revenue [2][3]. Future Outlook - The report projects a revenue increase to USD 1.265 billion for FY24E, with a continued focus on enhancing profitability and expanding into new verticals [10][12]. - The company has reached a settlement regarding the Reyun acquisition, which is expected to alleviate uncertainties surrounding the deal [2][3]. Valuation Metrics - The report provides a sum-of-the-parts (SOTP) valuation, assigning a 20x FY24E P/E to the advertising technology business and a 3.0x FY24E P/S to the majority technology business, leading to a target price of HKD 6.00 [2][3][11].

Investment Rating - The report maintains a "Buy" rating for Mobvista (1860 HK) with a target price of HKD 6 2 [1][3][5] Core Views - Mobvista delivered strong Q1 2024 results with revenue reaching $301 million, up 23 3% YoY, and net profit surging 1 2x YoY to $7 154 million, both hitting record highs [1][2] - The programmatic advertising platform Mintegral remains the primary growth driver, contributing $284 million in Q1 revenue, up 25 4% YoY, with its smart bidding products accounting for over 60% of Mintegral's revenue [2] - Non-gaming revenue grew significantly by 83 2% YoY to $81 million in Q1, driven by expansion into higher-margin mid-core and hardcore games as well as non-gaming verticals like e-commerce and social [2] - Gross margin improved by 1 3pp YoY to 20 5% in Q1, supported by higher margins in both advertising technology (up 1 4pp to 19 7%) and marketing technology (up 2 6pp to 79 3%) [2] - R&D expenses increased by 57 8% YoY to $30 million in Q1, reflecting investments in smart bidding systems and model training [2] - The company has achieved six consecutive quarters of profitability since Q4 2022, with operating leverage continuing to expand [2] Industry Analysis - The EU's Digital Markets Act (DMA), effective March 6, 2024, is expected to foster a more competitive digital advertising market by regulating "gatekeeper" platforms, creating opportunities for smaller players like Mobvista [3] - The DMA is likely to encourage innovation and provide advertisers with more compliant and effective ways to reach target audiences, benefiting companies with advanced advertising technologies [3] Financial Projections - Revenue is projected to grow from $1 2655 billion in 2024E to $1 8721 billion in 2026E, with a CAGR of 18 5% [4][9] - Net profit is expected to increase from $39 1 million in 2024E to $82 7 million in 2026E, with a CAGR of 31 2% [4][9] - Gross margin is forecasted to rise steadily from 20 8% in 2024E to 21 0% in 2026E [4][12] - ROE is projected to improve from 8 2% in 2024E to 13 3% in 2026E, reflecting stronger profitability and efficiency [12]

Financial Performance - For the three months ended March 31, 2024, Mobvista reported total revenue of $301.5 million, a year-over-year increase of 23.3% and a quarter-over-quarter increase of 8.2%[3]. - The net profit for the same period was $7.2 million, representing a significant year-over-year growth of 123.5% and a quarter-over-quarter increase of 5.1%[6]. - The adjusted net profit amounted to $8.9 million, up 96.6% year-over-year and 45.0% quarter-over-quarter[3]. - The gross profit for the quarter was $61.8 million, representing a year-over-year increase of 31.8%[3]. - The adjusted EBITDA for the quarter was $30.7 million, reflecting a year-over-year growth of 17.7%[3]. - Operating profit for the three months ended March 31, 2024, was $10,262 thousand, representing a 98.4% increase from $5,172 thousand in the same period of 2023[25]. - Revenue for the three months ended March 31, 2024, reached $301,482 thousand, up 23.2% from $244,544 thousand in the same period of 2023[27]. - Gross profit for the same period was $61,819 thousand, compared to $46,912 thousand in the prior year, reflecting a 31.8% increase[27]. - Adjusted EBITDA for the three months ended March 31, 2024, was $29,146 thousand, a 24.7% increase from $23,373 thousand in the same period of 2023[25]. - Net profit for the period was $7,154 thousand, up 123.5% from $3,201 thousand in the same period of 2023[27]. - Basic earnings per share for the three months ended March 31, 2024, was $0.50, compared to $0.21 in the same period of 2023[27]. Revenue Breakdown - The programmatic advertising platform Mintegral generated revenue of $283.6 million, reflecting a year-over-year growth of 25.4% and a quarter-over-quarter increase of 10.3%[6]. - Game category revenue reached $202.8 million, accounting for 71.5% of total revenue, with a year-over-year growth of 11.4%[12]. - Non-game category revenue was $80.8 million, representing 28.5% of total revenue, significantly up from 19.5% in the same period last year, marking an 83.2% year-over-year increase[12]. - Non-gaming categories contributed significantly to revenue, with Mintegral's non-gaming revenue reaching $80.8 million, a year-over-year increase of 83.2%[6]. - The advertising technology business accounted for 98.6% of total revenue, with $297.3 million reported, up 23.3% from the previous year[7]. - The revenue from the marketing technology business was $4.2 million, an increase of 18.5% year-over-year[7]. Expenses and Costs - Cost of sales increased by 21.3% year-over-year to $239.7 million, primarily driven by rising traffic and server costs in the advertising technology business[14]. - Research and development expenses surged by 57.8% year-over-year to $29.5 million, mainly due to increased costs associated with developing smart bidding systems[19]. - Sales and marketing expenses increased by 5.1% year-over-year to $13.2 million, attributed to rising bidding costs[18]. - Total operating expenses amounted to $60.7 million, with variable costs rising due to increased model training expenses related to the smart bidding system[21]. Assets and Liabilities - Total assets as of March 31, 2024, amounted to $420,176 thousand, an increase from $400,204 thousand as of December 31, 2023[29]. - The company reported a net current asset position of $14,388 thousand as of March 31, 2024, down from $43,641 thousand as of December 31, 2023[29]. - As of March 31, 2024, the company's net assets amounted to $264,118 thousand, an increase from $259,110 thousand as of December 31, 2023, reflecting a growth of approximately 1.5%[30]. - Non-current liabilities decreased significantly from $75,878 thousand to $44,592 thousand, indicating a reduction of approximately 41.2%[30]. - The company's total equity attributable to equity shareholders rose to $255,538 thousand from $250,092 thousand, representing a growth of about 2.0%[30]. - Lease liabilities increased from $9,330 thousand to $10,806 thousand, marking an increase of approximately 15.8%[30]. Company Performance and Management - Mobvista has achieved profitability for six consecutive quarters since Q4 2022, with the first quarter of 2024 marking a historical high in both revenue and profit[5]. - The company experienced a foreign exchange loss of $23 thousand, a decrease of 98.3% from $1,389 thousand in the same period of 2023[25]. - The company expressed gratitude to management and employees for their efforts during the reporting period, highlighting the importance of teamwork and dedication[31]. - The board of directors includes key executives such as the Chairman and CEO, indicating strong leadership presence[32].

Financial Performance - Revenue for 2023 reached $1,054,092 thousand, representing a 17.9% increase from $894,405 thousand in 2022[9] - Net income for 2023 was $18,588 thousand, an increase of 82.4% compared to $10,190 thousand in 2022[9] - Adjusted EBITDA for 2023 was $105,270 thousand, a significant increase of 191.3% from $36,135 thousand in 2022[9] - The total gross profit for 2023 was $217,291 thousand, reflecting a 22.7% increase from $177,029 thousand in 2022[9] - The company reported an adjusted net profit of $19,120 thousand for 2023, a 97.1% increase from $9,699 thousand in 2022[9] - The company achieved a net income of $268.6 million from its Ad-tech business, up from $212.1 million in the previous year[129] - The adjusted EBITDA for 2023 was $102.4 million, reflecting a 60.5% increase from $63.8 million in 2022[199] - The operating profit surged to $29.6 million, a remarkable increase of 1,217.5% from $2.2 million in the previous year[199] - The net cash flow from operating activities for the reporting period was $108.0 million, representing a year-over-year increase of 10.3% from $97.9 million in 2022[192][194] Business Segments - Advertising business profits reached a historical high of $51,110 thousand in 2023, while the marketing technology segment incurred a loss of $19,890 thousand[12] - The Ad-tech segment generated $1,038.5 million in revenue, accounting for 98.5% of total revenue, with a year-over-year growth of 17.8%[127] - The programmatic advertising business within Ad-tech reached $980.4 million, representing 94.4% of Ad-tech revenue and an 18.8% increase compared to $825.2 million in 2022[132] - The marketing technology segment contributed $15.6 million, which is 1.5% of total revenue, showing a growth of 23.9% from $12.6 million in 2022[127] Market Trends and Strategy - The company aims to focus on creating long-term value for developers, transitioning from a fast-growing mobile traffic company to a service-oriented business[12] - The ongoing trend of Chinese companies expanding overseas remains strong, with a shift from "Copy From China" to "Born Global" strategies[27] - The implementation of the EU's Digital Markets Act (DMA) is expected to enhance competition and innovation in the advertising market, benefiting advertisers with more options and compliance[20] - The mobile app ecosystem is facing increased competition, with the number of available applications exceeding 5.37 million as of February 2024[26] - Emerging markets such as South Korea, Brazil, Mexico, and Turkey saw a 25% year-on-year increase in mobile user spending, aligning with Mobvista's strategic focus on these regions[26] Client and Revenue Diversification - The revenue contribution from non-gaming sectors is 24% in 2023, indicating diversification in revenue streams[34] - The company has a balanced revenue distribution between overseas and Chinese clients, demonstrating its capability to serve a global customer base[109] - The contribution from medium-sized enterprise clients (revenue between $1 million and $10 million) increased from 35.1% to 47.7% year-over-year[146] - Total revenue contribution from small, medium, and large enterprise clients was $127.9 million, $467.3 million, and $346.2 million respectively[146] Technological Advancements - The average user of the "DevOps Copilot" system generated over 90 lines of effective code daily, representing a tenfold increase compared to the beginning of the year, while software failure rates were halved and repair times reduced to one-sixth[14] - The company has invested heavily in building an intelligent bidding system since the second half of 2021, achieving significant progress by Q4 2022[31] - The integration of machine learning with programmatic advertising is a key trend, allowing for more precise ad targeting and improved ROI optimization[112] - The company is embracing generative AI technology to enhance its advertising services, including automated ad creative production and campaign optimization[113] Operational Efficiency - The unit server cost decreased to 5% by the end of 2023, down from 9% at the beginning of 2022, due to optimization of the cloud-native platform[94] - The platform's operational leverage is improving, with decreasing unit costs for research and development, sales, and management expenses, contributing to overall profitability[78] - Research and development expenses decreased by 11.8% year-over-year to $94.3 million, reflecting reduced model training costs[176] - General and administrative expenses rose by 9.8% to $53.6 million, compared to $48.8 million in the previous year[178] Customer Retention and Growth - The retention rate for enterprise clients contributing over $100,000 was 93.3% for the twelve months ending December 31, 2023[143] - Small business customer retention rate is 87.6% with a net dollar expansion rate of 160.9%[149] - Medium business customer retention rate is 98.3% with a net dollar expansion rate of 124.7%[149] - Large business customer retention rate is 100.0% with a net dollar expansion rate of 80.6%[149] Future Outlook - The company plans to continue focusing on the growth of its programmatic advertising business due to its rapid industry development and strong cash flow[133] - The company aims to expand its market presence by providing comprehensive solutions covering both Chinese and overseas markets, becoming a global leader in this space[52] - The company aims to expand its platform scale and diversify its offerings as part of its mid-term strategic goals[135]