- Lizhi ( NASDAQ: LIZI ) shares slid 18% after the company reported year-over-year decline in monthly active users for Q2 2022 in its latest earnings release.
- The China-based audio streaming platform said its average mobile monthly active users dropped 18.4% Y/Y to 49.7M, primarily due to reduced advertisement spending on users with lower commercialization capability.
- Average total monthly paying users were 485.1K, compared to 494.4K in Q2 2021.
- Revenue declined 11.1% Y/Y to $77M.
- Gross profit reached $26.2M with adjusted gross margin of 34% vs. 29% a year-ago.
- "With our diligent efforts to enhance operational efficiency, our gross margin hit a record high at 34% in the second quarter, up 600 basis points year-over-year. More excitingly, we have achieved a profit on a GAAP basis for the third consecutive quarter, with net income growing 15% sequentially to RMB18.85 million," noted CFO Chengfang Lu.
- Q2 Non-GAAP EPS was $0.07.
- The company ended the quarter with $87.8M in cash and cash equivalents and restricted cash.
For further details see:
Lizhi tumbles as active users signal lower ad spending: Q2 Earnings