Cheer Holding Reports Full Year 2024 Financial Results
BEIJING, March 10, 2025 (GLOBE NEWSWIRE) -- Cheer Holding, Inc. $(CHR)$ ("Cheer Holding," or the "Company"), a leading provider of advanced mobile internet infrastructure and platform services, today announced its financial results for the full year ended December 31, 2024.
Operating Highlights For The Year Ended December 31, 2024
Total downloads of CHEERS Apps were approximately 523.3 million as of December 31, 2024, representing a growth of 10.4% from December 31, 2023. Specifically:
CHEERS Video
-- Accumulated downloads of CHEERS Video grew by 6.3% YoY to approximately
436 million as of December 31, 2024.
-- Monthly Active Users of CHEERS Video increased by 4.4% to approximately
52.3 million.
-- Daily Time Spent for using CHEERS Video during 2024 was approximately 60
minutes.
CHEERS e-Mall
-- Accumulated downloads of CHEERS e-Mall grew by 13.5% YoY to approximately
60.7 million as of December 31, 2024.
-- Monthly Active Users of the CHEERS e-Mall increased by 6.2% YoY to
approximately 6.9 million.
-- Repurchase Rate on CHEERS e-Mall for the 360 days period during 2024 was
39.7%.
Cheer Real
-- Accumulated downloads of CheerReal grew by 57.6% YoY to approximately
14.5 million as of December 31, 2024.
-- Monthly Active Users of CheerReal increased by 7.7% to approximately 1.4
million.
-- Digital Art Collections listed on CheerReal during 2024 were 25,856
units.
CHEERS Telepathy
-- Accumulated downloads of CHEERS Telepathy grew by 830.8% YoY to
approximately 12.1 million as of December 31, 2024.
-- Monthly Active Users of CHEERS Telepathy platform increased by 733.3% to
approximately 2.5 million.
-- Average Monthly Visits during 2024 were approximately 3.4 million.
Financial Highlights For The Year Ended December 31, 2024
-- Revenues reached $147.2 million.
-- Net Income reached $26 million.
-- Net cash provided by operating activities was approximately $22.9
million.
Selected Financial Results
Revenues
Our revenues were about $147.2 million for the year ending December 31, 2024, down approximately $5.1 million or 3.37% from $152.3 million in 2023. This decline was primarily driven by a $4.8 million drop in advertising revenue, as customers reduced their advertising orders in response to cost-saving measures amid a challenging macroeconomic environment.
Operating expenses
Operating expenses consist of cost of revenues, selling and marketing, general and administrative and research and development expense.
-- Our cost of revenues decreased slightly by about $0.1 million or 0.41%,
from approximately $39.5 million in 2023 to approximately $39.4 million
in 2024, aligning with revenue trends. However, our gross margin fell due
to reduced service fees charged to advertising customers. We anticipate
increased advertising revenues from continuous investments in advertising
business, though it may take time to see results.
-- Sales and marketing expenses mainly include salaries and benefits for the
sales team, user acquisition costs, advertising fees, travel expenses,
and CHEERS e-Mall marketing costs. These expenses fell by about $0.9
million, from approximately $76.2 million in 2023 to around $75.3 million
in 2024. This decrease was primarily due to the depreciation of the RMB,
which reduced the USD value of revenues when converted. Excluding foreign
exchange effects, these expenses rose by about 0.41%.
-- General and administrative expenses consist primarily of salaries and
benefits for members of our management and bad debt provision expense for
accounts receivable and professional service fees. Our general and
administrative expenses decreased by approximately $2.2 million, to
approximately $3.5 million for the year ended December 31, 2024 from
approximately $5.7 million for the year ended December 31, 2023. The
change was primarily caused by provision of expected credit losses
against accounts receivable of approximately $2.1 million in the year of
2023, while we reversed the provision of $19,516 in the year of 2024.
-- Research and development expenses rose significantly from $1.6 million in
2023 to approximately $3.4 million in 2024, driven by continued
investment in IT infrastructure, user-friendliness upgrades, and
continual implementation on content driven strategies.
Net income
As a result of the foregoing, we had a net income of approximately $26.0 million in the year ended December 31, 2024, as compared to a net income of approximately $30.5 million in the year ended December 31, 2023.
Cash, cash equivalents and working capital
As of December 31, 2024 and 2023, our principal sources of liquidity were cash and cash equivalents of approximately $197.7 million and $194.2 million, respectively. Working capital at December 31, 2024 was approximately $265.7 million.
About Cheer Holding, Inc.
As a preeminent provider of next-generation mobile internet infrastructure and platform services in China, Cheer Holding is dedicated to building a digital ecosystem that integrates "platforms, applications, technology, and industry" into a cohesive system, thereby creating a new, open business environment for web3.0 that leverages AI technology. The Company is developing a 5G+VR+AR+AI shared universe space that builds on cutting-edge technologies including blockchain, cloud computing, extended reality, and digital twin.
Cheer Holding's portfolio includes a wide range of products and services, such as Polaris Intelligent Cloud, CHEERS Telepathy, CHEERS Open Data Platform, CHEERS Video, CHEERS e-Mall, CheerReal, CheerCar, CheerChat, CHEERS Fresh Group-Buying E-commerce Platform, Digital Innovation Research Institute, CHEERS Livestreaming, variety show series, IP short video matrix, and more. These offerings provide diverse application scenarios that seamlessly blend "online/offline" and "virtual/reality" elements.
With "CHEERS+" at the core of Cheer Holding's ecosystem, the Company is committed to consolidating and strengthening its core competitiveness, and achieving long-term sustainable and scalable growth.
For more information, please visit http://ir.gsmg.co/.
Safe Harbor Statement
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; the occurrence of any event, change or other circumstances that could affect the Company's ability to continue successful development and launch of its metaverse experience centers, AI initiatives and technology infrastructure; the possibility that the Company may not succeed in developing its new lines of businesses due to, among other things, changes in the business environment and technological developments, competition, changes in regulation, or other economic and policy factors; disruptions or other business interruptions that may affect the operations of our products and services, the possibility that the Company's new lines of business may be adversely affected by other economic, business, and/or competitive factors; other factors, risks and uncertainties set forth in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's latest Annual Report on Form 20-F filed with the SEC on March 10, 2025. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
For investor and media inquiries, please contact:
Wealth Financial Services LLC
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 $(CN)$
CHEER HOLDING, INC.
CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands, except share and per share data)
December 31, December 31,
2024 2023
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 197,660 $ 194,227
Restricted cash - 298
Accounts receivable, net 77,074 81,170
Prepayment and other current
assets, net 30,834 31,179
---------- ----------
Total current assets 305,568 306,874
---------- ----------
Property, plant and equipment, net 33 85
Intangible assets, net 40,531 20,255
Deferred tax assets 72 41
Unamortized produced content, net 16 -
Right-of-use assets 371 377
---------- ----------
Total non-current assets 41,023 20,758
---------- ----------
TOTAL ASSETS $ 346,591 $ 327,632
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Short-term bank loans $ 9,590 $ 4,216
Accounts payable 2,039 9,599
Contract liabilities 27 130
Accrued liabilities and other
payables 1,941 3,764
Due to related parties 1,100 -
Other taxes payable 25,095 28,178
Lease liabilities current 109 330
---------- ----------
Total current liabilities 39,901 46,217
---------- ----------
Long-term bank loan 1,370 1,408
Lease liabilities non-current 250 -
---------- ----------
Total non-current liabilities 1,620 1,408
---------- ----------
TOTAL LIABILITIES $ 41,521 $ 47,625
---------- ----------
Shareholders' Equity
Preferred shares (par value of
$0.0001 per share; 2,000,000 shares
authorized as of December 31, 2024
and 2023; nil and nil shares issued
and outstanding as of December 31,
2024 and 2023, respectively) $ - $ -
Class A Ordinary shares (par value
of $0.001 per share; 200,000,000
shares authorized as of December
31, 2024 and 2023; 10,285,568 and
10,070,012 shares issued and
outstanding as of December 31,
2024 and 2023, respectively)* 10 10
Class B Ordinary shares (par value
of $0.001 per share; 500,000 shares
and nil shares authorized as of
December 31, 2024 and 2023; 500,000
and nil shares issued and
outstanding as of December 31, 2024
and 2023, respectively) - -
Additional paid-in capital 113,485 106,215
Statutory reserve 1,411 1,411
Retained earnings 207,128 181,162
Accumulated other comprehensive
loss (17,041) (8,869)
---------- ----------
TOTAL CHEER HOLDING, INC SHAREHOLDERS'
EQUITY 304,993 279,929
Non-controlling interest 77 78
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 305,070 280,007
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 346,591 $ 327,632
========== ==========
CHEER HOLDING, INC.
CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
(In U.S. dollars in thousands, except share and per share data)
For the Years Ended December 31,
-------------------------------------
2024 2023 2022
----------- ---------- ----------
Revenues $ 147,196 $ 152,327 $ 157,079
Operating expenses:
Cost of revenues (39,388) (39,549) (40,580)
Selling and
marketing (75,289) (76,200) (82,534)
General and
administrative (3,499) (5,658) (5,908)
Research and
development (3,428) (1,635) (1,331)
---------- --------- ---------
Total operating
expenses (121,604) (123,042) (130,353)
---------- --------- ---------
Income from operations 25,592 29,285 26,726
Other income
(expenses):
Interest income
(expense), net 262 3 (93)
Change in fair
value of warrant
liability - 86 (62)
Other income, net 80 1,215 282
---------- --------- ---------
Total other income 342 1,304 127
---------- --------- ---------
Income before income
tax 25,934 30,589 26,853
---------- --------- ---------
Income tax benefit
(expense) 34 (61) (413)
---------- --------- ---------
Net income 25,968 30,528 26,440
Less: net gain (loss)
attributable to
non-controlling
interest 2 51 $(450.UK)$
---------- --------- ---------
Net income
attributable to Cheer
Holding, Inc.'s
shareholders $ 25,966 $ 30,477 $ 26,890
========== ========= =========
Other comprehensive
loss
Unrealized foreign
currency translation
loss (8,175) (2,233) (13,357)
---------- --------- ---------
Comprehensive income 17,793 28,295 13,083
Less: comprehensive
(loss) gain
attributable to
non-controlling
interests (1) 3 (478)
---------- --------- ---------
Comprehensive income
attributable to Cheer
Holding, Inc.'s
shareholders $ 17,794 $ 28,292 $ 13,561
========== ========= =========
Earnings per ordinary
share
Basic and dilutive $ 2.51 $ 3.53 $ 3.95
Weighted average
shares used in
calculating earnings
per ordinary share
Basic and dilutive 10,327,198 8,637,504 6,812,387
CHEER HOLDING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. dollars in thousands)
For the Years Ended December
31,
-------------------------------
2024 2023 2022
-------- -------- ---------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 25,968 $ 30,528 $ 26,440
Adjustments to reconcile
net income to net cash
provided by operating
activities:
(Reversal of provision)
provision for doubtful
accounts (20) 2,096 440
Provision for
unamortized produced
content - 112 770
Depreciation and
amortization 3,781 3,385 2,884
Amortization of
right-of-use assets 41 394 454
Loss from early
termination of
right-of-use assets 15 - -
Deferred income tax
(benefits) expense (33) 63 (53)
Share based compensation
for employees 1,745 - -
Share based compensation
for non-employees - - 391
Written off of property
and equipment 2 2 -
Amortization of loan
origination fees 10 16 76
Change in fair value of
warrant liability - (86) 62
Income from waive of
other payables (156) - -
Changes in assets and
liabilities
Accounts receivable 1,924 15,205 (42,105)
Prepayment and other
current assets (514) (22,270) 16,872
Unamortized produced
content (16) 682 170
Accounts payable (7,402) 3,325 (5,576)
Contract liabilities (101) (14) (356)
Accrued liabilities and
other payables - (370) 565
Other taxes payable (2,347) 9,477 7,346
Lease liabilities (22) (371) (641)
------- ------- --------
Net cash provided by
operating activities 22,875 42,174 7,739
------- ------- --------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property,
plant and equipment (1) (3) (25)
Purchase of intangible
assets (24,861) - -
Prepayments for
acquisition of
intangible assets - - (7,964)
------- ------- --------
Net cash used in investing
activities (24,862) (3) (7,989)
------- ------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from short-term
bank loans 12,507 4,660 6,096
Repayments of short-term
bank loans (6,949) (4,802) (6,244)
Proceeds from long-term
bank loans - 1,412 -
Payment of loan
origination fees (32) (58) (87)
Contribution (withdrawal
of) from shareholders 5,525 (791) 743
Borrowings from related
parties - 1,600 -
Repayments to related
parties $(500.SI)$ - -
Proceeds from issuance
of ordinary shares in
connection with a
private placement - 80,000 -
------- ------- --------
Net cash provided by
financing activities 10,551 82,021 508
------- ------- --------
Effect of exchange rate
changes (5,429) (149) (7,078)
------- ------- --------
Net increase (decrease) in
cash and cash equivalents 3,135 124,043 (6,820)
------- ------- --------
Cash, cash equivalents and
restricted cash, at
beginning of year 194,525 70,482 77,302
------- ------- --------
Cash, cash equivalents and
restricted cash, at end of
year $197,660 $194,525 $ 70,482
======= ======= ========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Interests paid $ 325 $ 271 $ 247
Income tax paid $ - $ - $ -
SUPPLEMENTAL DISCLOSURE OF
NON-CASH FLOW INFORMATION:
Acquisition of
intangible assets from
prepayments $ 4,464 $ 4,464 $ -
Right-of-use assets
obtained in exchange
for operating lease
liabilities $ 385 $ - $ -
(END) Dow Jones Newswires
March 10, 2025 07:16 ET (11:16 GMT)
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