IHuman reports Q1 2020 financial results, total revenues rose by 190.6% YOY
2021-06-10 16:54:59

iHuman Inc. (NYSE: IH) ("Human" or the "Company"), a leading childhood edutainment company in China, today announced its unaudited financial results for the first quarter ended March 31, 2021.

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iHuman Q1 2020 Financial Report

According to the report, total revenues for Q1 2021 were RMB226.7 million(US$34.6 million), a year-over-year increase of 190.6%, mainly driven by user expansion and enhanced user engagement. Revenues from learning services reached a quarterly record of RMB191.9 million, compared to RMB57.7 million for the same period last year, an increase of 232.7%. In Q1 2021, gross margin went up to 71.1% from 66.3% for Q1 2020, primarily driven by the strong revenue contribution from the higher-margin learning services business(75.5%).

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iHuman Q1 2020 Earning Call Presentation

Total operating expenses for Q1 2021 were RMB157.6 million(US$24.1 million), leaping 190.5% from RMB54.3 million for Q1 2020. Research and development expenses were RMB82.1 million, up 137.9% year-over-year, due to a rise in payroll-related expenses and outsourcing expenses to expand the research and development capabilities and enhance and develop its educational products and services. Sales and marketing expenses were RMB 52.9million, up 237.2% year-over-year, primarily due to an increase in advertising and promotion expenses as the Company strategically strengthened its brand recognition as a publicly listed company and marketing efforts to supplement organic user growth. 

Despite the surging operating expenses, net income achieved RMB7.1 million(US$1.1 million) for Q1 2021, compared with a net loss of RMB1.6 million for Q1 2020, mainly attributed to the higher than expected revenues. 

As of March 31, 2021, cash and cash equivalents were RMB841.5 million (US$128.4 million), compared with RMB861.7 million as of December 31, 2020.

In Q1 2021, the average total MAUs achieved RMB16.12 million, nearly doubled compared to Q1 2020. MAUs for the year of 2020 were 10.61 million, 65.8% of that for Q1 2021 alone. The number of paying users for this quarter hit a record high of 1.68 million, compared with 1.32 million in Q1 2020 and 3.74 million for the entire year of 2020. 

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iHuman Q1 2020 Earning Call Presentation

Founded in 2016, iHuman's products and services cater to kids' educational needs at school and at home, both online and offline, and cover diverse subjects, including Chinese culture, literacy and reading, logical and critical thinking, STEM, and others.

For Q2 2021, the Company expected to generate total revenues between RMB217 million to RMB227 million, representing an increase of 102% to 111% year-over-year. In addition, more products are in the pipeline. For example, in summer, the Company will launch "iHumanpedia" helping illustrate hard-to-understand STEM-related material with short and captivating cartoons and videos.

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