Sound Group (SOGP) Q2 2024 earnings summary

Executive summary

• Net revenues for H1 2024 were RMB924.0 million (US$127.1 million), down from RMB1,223.8 million year-over-year, mainly due to fewer paying users.

• Net loss was RMB36.5 million (US$5.0 million) for H1 2024, compared to net income of RMB59.9 million in H1 2023.

• Average total mobile MAUs dropped to 35.7 million from 47.6 million year-over-year.

• Management emphasized ongoing investment in content, technology, and operational efficiency to drive future growth.

Financial highlights

• Gross profit for H1 2024 was RMB246.3 million (US$33.9 million), down from RMB370.8 million year-over-year.

• Gross margin declined to 27% from 30% year-over-year.

• Operating loss was RMB44.3 million (US$6.1 million) versus operating income of RMB50.5 million in H1 2023.

• Non-GAAP net loss was RMB27.1 million (US$3.7 million), compared to non-GAAP net income of RMB75.8 million in H1 2023.

• Cash and cash equivalents plus restricted cash totaled RMB464.9 million (US$64.0 million) as of June 30, 2024.

Outlook and guidance

• Management remains focused on improving efficiency, advancing globalization, and delivering long-term value despite market uncertainties.

• The company will continue to monitor and adjust discretionary advertising and promotion expenses based on market conditions.