Scienjoy Holding Corporation Reports Nine Months ended September 30, 2024 Unaudited Financial Results

Core Viewpoint - Scienjoy Holding Corporation reported significant financial improvements for the nine months ended September 30, 2024, including a substantial increase in income from operations and net income, despite a slight decline in total revenues compared to the previous year [1][3][20]. Financial Performance - Total revenues decreased to RMB1,012.5 million (US$144.3 million) for the nine months ended September 30, 2024, down from RMB1,036.6 million in the same period of 2023 [2][7]. - Gross profit increased by 29.6% to RMB179.6 million (US$25.6 million) for the nine months ended September 30, 2024, compared to RMB138.6 million in the same period of 2023 [2][9]. - Income from operations surged by 313.7% to RMB35.3 million (US$5.0 million) for the nine months ended September 30, 2024, up from RMB8.5 million in the same period of 2023 [3][14]. - Net income was RMB34.2 million (US$4.9 million) for the nine months ended September 30, 2024, a significant turnaround from a net loss of RMB37.3 million in the same period of 2023 [20][21]. Shareholder Returns - Net income attributable to the Company's shareholders was RMB42.7 million (US$6.1 million) for the nine months ended September 30, 2024, compared to a net loss of RMB34.7 million in the same period of 2023 [4][21]. - Adjusted net income attributable to the Company's shareholders was RMB50.8 million (US$7.2 million) for the nine months ended September 30, 2024, a significant increase from an adjusted net loss of RMB22.0 million in the same period of 2023 [5][22]. Operational Insights - The increase in average revenue per paying user (ARPPU) contributed to the gross profit growth, indicating effective conversion of high-quality paying users into profit [6][9]. - The Company is focusing on global expansion, particularly in the Dubai market, and investing in AI-Generated Content technologies to enhance user experiences [6][11]. Cost Management - Cost of revenues decreased to RMB832.9 million (US$118.7 million) for the nine months ended September 30, 2024, down from RMB898.0 million in the same period of 2023 [8]. - Total operating expenses increased by 11.0% to RMB144.3 million (US$20.6 million) for the nine months ended September 30, 2024, compared to RMB130.0 million in the same period of 2023 [10]. Future Outlook - The Company expects total net revenues to be in the range of RMB300 million to RMB330 million in the fourth quarter of 2024, reflecting current market and operational conditions [24].