Investor Relations

Cheer Holding Reports Full Year 2023 Financial Results

BEIJING, March 14, 2024 (GLOBE NEWSWIRE) -- Cheer Holding, Inc. (NASDAQ: 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, 2023.

Full Year 2023 Operating Highlights

Total Downloads of CHEERS Apps was approximately 474 million as of December 31, 2023, compared to approximately 377 million as of December 31, 2022. Specifically:

CHEERS Video

  • Monthly Active Users of CHEERS Video increased by 5% to approximately 50.1 million.

  • Daily Time Spent on CHEERS Video was 59 minutes during the commercial year of 2023.

CHEERS e-Mall

  • Monthly Active Users of CHEERS e-Mall increased by 71% to approximately 6.5 million.

  • Repurchase Rate on CHEERS e-Mall was 39.6% during the commercial year of 2023.

CheerReal

  • Monthly Active Users of CheerReal platform was approximately 1.3 million.

  • Number of Digital Art Collections listed on CheerReal platform was 767 units.

CHEERS Telepathy

  • Monthly Active Users of CHEERS Telepathy platform was approximately 300 thousand.

CHEERS Open Data

  • Total Number of User Engagement was 27 million.

  • Platform Daily Usage was more than 150 thousand.

Full Year 2023 Financial Highlights

  • Revenues reached $152.3 million.

  • Net Income reached $30.5 million.

  • Net Cash Provided by Operating Activities was approximately $42.2 million.

Full Year 2023 Selected Financial Results

Revenues

Our revenues for the year ended December 31, 2023 were approximately $152.3 million, representing a decrease of approximately $4.8 million, or 3.03% from approximately $157.1 million for the year ended December 31, 2022. The change in revenues was mainly affected by depreciation of RMB during the year ended December 31, 2023, leading to a lower USD amount in translation of revenues from RMB into USD.

Without the impact of fluctuation of foreign exchange rates, our revenues for the year ended December 31, 2023 increased by approximately RMB22.1 million (approximately $3.1 million), or 2.09% as compared with the revenues for the same period of 2022. The increase in the revenues was primarily attributable to increase in advertising revenues of approximately RMB32.4 million as a result of continuous efforts to expand our customer base through improving our content production quality.

For the years ended December 31, 2023 and 2022, 97.9% and 96.8% of our revenues derived from advertising services.

Operating expenses

Operating expenses consists of cost of revenues, selling and marketing, general and administrative and research and development expense.

  • Cost of revenues decreased by approximately $1.0 million, or 2.54%, from approximately $40.6 million for the year ended December 31, 2022 to approximately $39.5 million for the year ended December 31, 2023. Similar to the changes in revenues, the decrease in cost of revenues was primarily caused by depreciation of RMB during the year ended December 31, 2023.

  • Sales and marketing expenses decreased by approximately $6.3 million, to approximately $76.2 million for the year ended December 31, 2023 from approximately $82.5 million for the year ended December 31, 2022. The decrease was mainly due to a decrease in promotion service charge of approximately $5.9 million because the Company reduced cost in marketing and promotion.

  • General and administrative expenses was stable at approximately $5.7 million and $5.9 million, respectively, for the year ended December 31, 2023 and 2022.

  • Research and development expenses for the years ended December 31, 2023 and 2022 were approximately $1.6 million and approximately $1.3 million, respectively. Such increase was primarily due to the continued investment in the IT infrastructure, user-friendliness upgrades, and continual implementation on content driven strategies.

Net income

We had a net income of approximately $30.5 million in the year ended December 31, 2023, as compared to a net income of approximately $26.4 million in the year ended December 31, 2022.

Cash, cash equivalents and working capital

As of December 31, 2023 and 2022, the Company’s principal sources of liquidity were cash and cash equivalents of approximately $194.2 million and $70.5 million, respectively. Working capital at December 31, 2023 was approximately $260.7 million.