Foxit Software(SH:688095)2024-04-30 02:32Investment Rating - The investment rating for the company is "Buy" (maintained) [13] Core Views - The company reported a revenue of 611 million yuan for 2023, a year-on-year increase of 5.3%, while the net profit attributable to the parent company was -91 million yuan, indicating an expanded loss but better than previous performance forecasts [13] - In Q1 2024, the company achieved a revenue of 169 million yuan, a year-on-year growth of 16.9%, with a net profit of -11 million yuan, slightly narrowing the loss compared to the same period last year [13] - The subscription business continues to show strong growth, with Q4 2023 and Q1 2024 subscription revenue accounting for 40% and 44% respectively, and the Annual Recurring Revenue (ARR) reaching 250 million yuan and 281 million yuan, with year-on-year growth rates of 80.6% and 75.2% [13] - The company is expected to see its subscription revenue exceed 50% in 2024, driven by product upgrades and a shift towards subscription models [13] - The company benefits from strong overseas market demand, with Q1 2024 revenue from North America, Europe, and other regions showing significant growth [13] - The integration of AI capabilities into PDF functionalities is enhancing the company's competitive edge, with over 100 AI-driven PDF commands implemented [13] Financial Summary - Total revenue for 2023 was 611 million yuan, with projected revenues of 676 million yuan for 2024, 808 million yuan for 2025, and 991 million yuan for 2026 [6][15] - The net profit for 2024 is projected to be -52 million yuan, with a turnaround expected in 2025 with a profit of 40 million yuan and 112 million yuan in 2026 [6][15] - The gross margin remains high at approximately 94% for 2023 and Q1 2024, indicating strong profitability potential [15]