Here Group (HERE) Q4 2024 earnings summary

Executive summary

• Q4 FY2024 revenue reached RMB 1,001 million, up 20.7% year-over-year, with adjusted net income at a record RMB 193.6 million, more than doubling year-over-year.

• Registered users grew 35.3% year-over-year to 127.6 million as of June 30, 2024, with 0.4 million paying users in the quarter.

• Strategic pivot to the silver economy, targeting China's middle-aged and elderly demographic, with a comprehensive ecosystem spanning online learning, offline experiences, and e-commerce.

• Management highlighted strong early growth in wellness products and alignment with the silver economy.

• Net income for Q4 FY2024 was RMB 196.6 million, up from RMB 52.7 million a year ago.

Financial highlights

• Q4 FY2024 revenues were RMB 1,000.1 million (+20.7% YoY, +5.8% QoQ); FY2024 revenues were RMB 3,795.3 million (+23.2% YoY).

• Individual online learning services revenue grew 25.7% YoY in Q4 FY2024 to RMB 906.7 million, accounting for 90.7% of total revenue.

• Gross profit was RMB 858.8 million in Q4 FY2024, with a gross margin of 85.9%.

• Adjusted net income for Q4 FY2024 was RMB 193.6 million, with an adjusted net margin of 19.4%.

• Cash, cash equivalents, restricted cash, and short-term investments totaled RMB 1,026.3 million as of June 30, 2024.

Outlook and guidance

• Management is focused on long-term value creation, leveraging expertise in adult learning and expanding into wellness and experiential learning for the silver demographic.

• Discontinued specific guidance to align with the strategic shift to the silver economy.

• Committed to prudent financial management and transparent communication with shareholders.

• Growth strategy includes expanding the user base, investing in technology, enriching course offerings, and pursuing global expansion.