Treasure (TGL) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics - Gross profit for Q2 FY2024 was approximately $346,000, up from$234,000 in the same period last year, reflecting a 47.9% increase [6] - Net loss for Q2 FY2024 was approximately $1.2 million, compared to$2 million in Q2 FY2023, showing a 40% reduction in losses [6] - Total revenue for Q2 FY2024 was $6.7 million, down from$20.4 million in the same period last year, a 67.2% decline [27] - Cash balance as of December 31, 2023, was approximately $1.2 million, compared to$4.7 million as of December 31, 2022 [28] Business Line Data and Key Metrics - ZCITY had over 2.68 million registered users and 2,027 registered merchants as of December 31, 2023 [28] - Quarterly active users for Q2 FY2024 were 156,979, with paid users down by 64% [28] - A total of $0.58 million in transactions were conducted by registered users in Q2 FY2024 [31] - The Premium Store and ZCITY 3D World, powered by AI, have driven higher gross profit and user engagement [12][33] Market Data and Key Metrics - The global gaming market is valued at$212 billion, and ZCITY is positioning itself to capture this market through in-game purchases and virtual goods [12] - The Malaysian e-commerce market is projected to reach USD 20.9 billion by 2029, and the company is leveraging AI to enhance its presence in this market [14] Company Strategy and Industry Competition - The company is focusing on higher-margin businesses, such as TAZTE and ZCITY, and has moved away from lower-margin solutions like e-voucher products [24][35] - Strategic partnerships, such as the one with AIO Synergy, aim to develop next-generation AI solutions and data centers, focusing on the Malaysian market [22][26] - The company is leveraging AI to enhance product offerings, anticipate consumer demand, and increase market share [11][20] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the company's future, citing progress in business strategy and innovation, which has attracted new customers, partners, and investors [2][5] - The company expects to capitalize on the growing Southeast Asian AI market and is committed to developing innovative products and advancing new market opportunities [34] - Management believes the company is well-positioned for future growth and will continue to innovate and generate profitable growth [5][30] Other Important Information - The company raised $4 million through a public offering, using a portion to retire$2.1 million in convertible notes, strengthening its financial position [13] - ZCITY received a silver trophy for the best e-commerce solution at the Marketing Interactive Asia E-commerce Awards 2023 [4] - The company hosted a successful Live Commerce event on TikTok, engaging over 6,400 viewers and leading to approximately 1,100 purchases [21] Q&A Session Summary - No specific questions or answers were provided in the transcript [3][29]