iHuman Inc. Reports Plummeting Earnings Amid Revenue Drop

iHuman Inc. has announced a significant decline in third-quarter earnings, primarily due to reduced revenue compared to the previous year, raising concerns among investors regarding the company's financial health.

Date: 26-12-2024

AI Rating: 4

The report highlights several concerning metrics regarding iHuman Inc.'s financial performance in the third quarter. Firstly, the net income decreased sharply from RMB51.9 million to RMB25.1 million, which indicates diminished profitability and could lead to a lack of investor confidence.

Additionally, the company's earnings per share (EPS) saw a decline. It reported earnings per ADS of RMB0.48 ($0.07), down from RMB0.98 in the previous year. This significant reduction in EPS could negatively impact the stock price, especially if investors perceive this as a trend rather than a temporary setback.

Moreover, revenue has also taken a hit, falling from RMB261.5 million to RMB239.4 million year-over-year. This reduced revenue stream raises red flags about the company’s ability to sustain growth and meet market expectations.

Despite these negatives, it's worth mentioning that the report indicates an increase in average monthly active users (MAUs) by 14.8 percent to 29.12 million. This growth in user engagement might offer some positive sentiment, but it does not outweigh the financial declines.

Stocks: IH