BEIJING, March 10, 2025 (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, 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.