Workflow
Treasure (TGL) - 2024 Q3 - Earnings Call Transcript
TGLTreasure (TGL)2024-05-15 21:34
Filings

Financial Data and Key Metrics Changes - The gross profit for the third quarter reached 217,000,markingasubstantialincreaseof47217,000, marking a substantial increase of 47% compared to the same period last year [29] - Total revenue for the quarter was 1.6 million, reflecting a decrease of approximately 76% compared to 6.7millionforthesecondquarteroffiscalyear2024[29]−Netlossesdecreasedtoapproximately6.7 million for the second quarter of fiscal year 2024 [29] - Net losses decreased to approximately 1.7 million from approximately 2.9millioninthethirdquarteroffiscalyear2023,drivenbyoptimizedcostmanagement[9]BusinessLineDataandKeyMetricsChanges−TheZCITYPremiumStoresignificantlycontributedtogrossprofitgrowth,withover6,000BillSaverBonanzaPackssoldinjust4months[7]−ZCITYhadover2.69millionregisteredusersandover2,027registeredmerchantsasofMarch31,2024[24]−QuarterlyactiveusersforthequarterendingMarch31,2024,were41,455,withatotalof0.19milliontransactionsprocessed[24]MarketDataandKeyMetricsChanges−TheSoutheastAsiaAImarketisexpectedtogrowsignificantlyatananticipatedannualrateof17.832.9 million in the third quarter of fiscal year 2023, driven by optimized cost management [9] Business Line Data and Key Metrics Changes - The ZCITY Premium Store significantly contributed to gross profit growth, with over 6,000 Bill Saver Bonanza Packs sold in just 4 months [7] - ZCITY had over 2.69 million registered users and over 2,027 registered merchants as of March 31, 2024 [24] - Quarterly active users for the quarter ending March 31, 2024, were 41,455, with a total of 0.19 million transactions processed [24] Market Data and Key Metrics Changes - The Southeast Asia AI market is expected to grow significantly at an anticipated annual rate of 17.83% by 2030 [5] - The Malaysian e-commerce market is projected to reach 20.93 billion by 2029 [19] - The global gaming market is projected to reach a revenue of 212billionby2026[22]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusedoninnovation,particularlythroughAIinitiativestoenhanceproductofferingsandcustomerengagement[4][20]−AstrategicpartnershipwasestablishedastheexclusiveproviderofanAIforcingwalletonTelegram,positioningthecompanyattheforefrontofblockchaininnovation[18]−Thecompanyisreallocatingresourcesawayfromlower−marginofferingstofocusonhigh−marginsolutionsforsustainedgrowth[26]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedapositiveoutlookonthedevelopmentshowcasedinthethirdquarter,emphasizingacommitmenttoinnovationandmarketexpansion[26]−Despiteadeclineinquarterlyactiveusersandpaidusers,managementremainsconfidentinthelong−termgrowthpotentialofZCITY[10]−Thecompanyisdedicatedtodrivinggrowthanddeliveringvaluetoshareholderswhilenavigatingachallengingmacroenvironment[17][23]OtherImportantInformation−ThecompanyhasinitiatedanATMoffering,securinganaggregateofferingpriceofupto212 billion by 2026 [22] Company Strategy and Development Direction - The company is focused on innovation, particularly through AI initiatives to enhance product offerings and customer engagement [4][20] - A strategic partnership was established as the exclusive provider of an AI forcing wallet on Telegram, positioning the company at the forefront of blockchain innovation [18] - The company is reallocating resources away from lower-margin offerings to focus on high-margin solutions for sustained growth [26] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook on the development showcased in the third quarter, emphasizing a commitment to innovation and market expansion [26] - Despite a decline in quarterly active users and paid users, management remains confident in the long-term growth potential of ZCITY [10] - The company is dedicated to driving growth and delivering value to shareholders while navigating a challenging macro environment [17][23] Other Important Information - The company has initiated an ATM offering, securing an aggregate offering price of up to 2.99 million [3] - A $2 million marketing contract was secured with Satria Dunia Sdn Bhd to showcase premium Korean beauty products using ZCITY's AI marketing engine [21] - The company is in discussions with the Shanghai Guangxi Chamber of Commerce about running the Malaysia Pavilion, aiming to tap into the growing Chinese online shopping market [31] Q&A Session Summary Question: What are the expectations for the future growth of ZCITY? - Management remains confident in the long-term growth potential of ZCITY despite recent declines in active users and paid users [10] Question: How is the company addressing the decline in revenue? - The company is focusing on reallocating resources to higher-margin business channels and optimizing spending to drive long-term value creation [29][26] Question: What are the strategic partnerships the company is pursuing? - The company has established a partnership for an AI blockchain model on Telegram and secured a marketing contract to enhance brand exposure in the beauty sector [18][21]