Part I. FINANCIAL INFORMATION Item 1. Financial Statements Q1 2025 financials show decreased assets from a special dividend, offset by revenue growth and a narrowed net loss Condensed Consolidated Balance Sheets Total assets decreased to $57.0 million by March 31, 2025, primarily due to reduced cash and equity Balance Sheet Items (in thousands) | Balance Sheet Items | Dec 31, 2024 (in thousands) | Mar 31, 2025 (in thousands) | | :--- | :--- | :--- | | Current Assets | | | | Cash and cash equivalents | $26,642 | $18,773 | | Total current assets | $43,942 | $31,318 | | Total Assets | $69,468 | $57,001 | | Current Liabilities | | | | Total current liabilities | $23,590 | $23,031 | | Total Liabilities | $24,707 | $24,205 | | Total Equity | $44,761 | $32,796 | Condensed Consolidated Statements of Operations Q1 2025 saw a 28.4% revenue increase to $18.0 million and a significant narrowing of net loss to $1.1 million Income Statement Items (in thousands) | Income Statement Items | Q1 2024 (in thousands) | Q1 2025 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $14,023 | $18,000 | +28.4% | | Gross Profit | $10,707 | $13,414 | +25.3% | | Loss from Operations | $(1,432) | $(974) | Improvement | | Net Loss | $(3,130) | $(1,094) | Improvement | | Net Loss Attributable to Moatable, Inc. | $(3,103) | $(818) | Improvement | | Basic and Diluted EPS | $(0.004) | $(0.001) | Improvement | Condensed Consolidated Statements of Cash Flows Q1 2025 cash flows reflect increased operating cash usage and a significant outflow from a $11.1 million special dividend Cash Flow Items (in thousands) | Cash Flow Items | Q1 2024 (in thousands) | Q1 2025 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(886) | $(1,737) | | Net cash (used in) provided by investing activities | $(106) | $4,933 | | Net cash provided by (used in) financing activities | $885 | $(11,163) | | Net decrease in cash | $(107) | $(7,967) | - The primary use of cash in financing activities for Q1 2025 was the payment of a special cash dividend amounting to $11.1 million28 Notes to Condensed Consolidated Financial Statements Notes detail SaaS operations, a prior period financial revision, revenue breakdown, dividend declaration, and a subsequent acquisition - The company operates two main SaaS businesses: Lofty (real estate platform) and Trucker Path (transportation management platform), which generate the majority of revenue from the U.S. market30 - A revision was made to prior period financial statements after discovering an understated sales tax liability of $2.65 million as of March 31, 20244043 Revenue by Segment (in thousands) | Revenue by Segment | Q1 2024 (in thousands) | Q1 2025 (in thousands) | | :--- | :--- | :--- | | Lofty | $7,949 | $9,811 | | Trucker Path | $6,033 | $8,147 | | Other Operations | $41 | $42 | | Total Revenues | $14,023 | $18,000 | - On March 5, 2025, the company declared a special cash dividend of approximately $11 million, which was paid on March 27, 202579 - Subsequent to the quarter end, on May 1, 2025, a subsidiary of Trucker Path entered into an agreement to acquire Truckers Best Insurance LLC for approximately $3.0 million110 Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes Q1 2025 revenue growth to SaaS performance, notes increased operating expenses, and confirms sufficient liquidity - Total revenues increased by 28.6% from $14.0 million in Q1 2024 to $18.0 million in Q1 2025, primarily due to growth in the SaaS businesses116132 - Subscription services revenue grew 23.5% YoY, driven by an expanded Trucker Path subscriber base, which increased by 7.1% from Q4 2024 to 135,000 paying subscriptions as of March 31, 2025132 - Operating expenses increased 19.0% YoY to $14.4 million, driven by a 39.0% increase in selling and marketing expenses and a 28.9% increase in R&D expenses, both primarily due to higher headcount135140 - The company had cash and cash equivalents of $18.8 million as of March 31, 2025, and management expects this to be sufficient to meet operating needs for at least the next twelve months143 Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, Moatable, Inc. is not required to provide the information for this item - The company is exempt from this disclosure requirement as it qualifies as a smaller reporting company159 Controls and Procedures Management concluded disclosure controls were ineffective due to three unremediated material weaknesses, with remediation plans underway - The CEO and CFO concluded that the company's disclosure controls and procedures were not effective as of March 31, 2025161 - Three material weaknesses in internal control over financial reporting remain unremediated, relating to: - Lack of a systematic risk assessment process for financial reporting - Lack of evaluation in assessing sales tax applicability, leading to an understated accrual - Lack of evaluations to ensure internal control components are present and functioning162163 - Management is implementing remediation plans, which include recruiting personnel with U.S. GAAP knowledge, engaging external experts, designing a better control environment, and implementing a consolidated general ledger system162163167 Part II. OTHER INFORMATION Legal Proceedings The company is not currently a party to any material legal proceedings - As of the report date, the company is not involved in any material legal proceedings168 Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes to risk factors from the most recent Form 10-K were reported169 Unregistered Sales of Equity Securities and Use of Proceeds The company continued its stock repurchase program, repurchasing 33,720 ADSs for $57,000 in Q1 2025 - The Board has authorized a stock repurchase program of up to $15.0 million, extended through December 31, 2026170 Stock Repurchases (in thousands) | Period | Total ADSs Purchased | Average Price Paid Per ADS | Total Cost (in thousands) | | :--- | :--- | :--- | :--- | | January 2025 | 29,667 | $1.71 | $50 | | February 2025 | 4,053 | $1.76 | $7 | | March 2025 | 0 | $0.00 | $0 | | Total Q1 2025 | 33,720 | - | $57 |
Moatable(MTBL) - 2025 Q1 - Quarterly Report