LIZHI INC. Reports Second Quarter 2022 Unaudited Financial Results

·22 min read

GUANGZHOU, China, Aug. 18, 2022 (GLOBE NEWSWIRE) -- LIZHI INC. (“LIZHI” or the “Company” or “We”) (NASDAQ: LIZI), an audio-based social and entertainment platform, today announced its unaudited financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Financial and Operational Highlights

  • Net revenues were RMB515.7 million (US$77.0 million) in the second quarter of 2022, compared to RMB559.3 million in the second quarter of 2021.

  • Average total mobile MAUs1 in the second quarter of 2022 was 49.7 million, compared to 60.9 million in the second quarter of 2021, primarily due to reduced advertisement spending on users with lower commercialization capability.

  • Average total monthly paying users2 in the second quarter of 2022 was 485.1 thousand, compared to 494.4 thousand in the second quarter of 2021.

“In the second quarter of 2022, we remained focused on dual pillar approach of interactive entertainment and audio-based social networking business, and executing our diversified product matrix strategy. In addition to optimizing our business operations, we are pleased to achieve another quarter of profitability,” said Mr. Jinnan (Marco) Lai, founder and CEO of LIZHI. “Our optimization and iteration in product offerings, along with our in-house suite of advanced technology solutions, have paved the way for us to reinforce our ecosystem’s virtuous cycle in the international markets. Moving forward, coupled with our optimized operational strategy, we believe we are well-positioned to capture more global growth opportunities and build a solid foundation for our long-term sustainable growth, creating a compelling value proposition for our users and stakeholders,” Mr. Lai concluded.

Ms. Chengfang Lu, Acting Chief Financial Officer of LIZHI, said, “We are pleased to report improving profitability in the second quarter of 2022. 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. Moving forward, we will remain dedicated to executing our diversified product matrix strategy and enhancing core technology development to progress product innovation and commercialization.”

Second Quarter 2022 Unaudited Financial Results

Net revenues were RMB515.7 million (US$77.0 million) in the second quarter of 2022, compared to RMB559.3 million in the second quarter of 2021, primarily due to the decreases in the number of paying users and the average amount of user spending on our audio entertainment products.

Cost of revenues was RMB340.1 million (US$50.8 million) in the second quarter of 2022, compared to RMB400.5 million in the second quarter of 2021, primarily due to a decrease in the revenue sharing fees because of a decrease in net revenues, and a decrease in the percentage of the revenue sharing fees resulted from the adjustment in revenue sharing policies in the second quarter of 2022.

Gross profit was RMB175.6 million (US$26.2 million) in the second quarter of 2022, representing an increase of 11% from RMB158.8 million in the second quarter of 2021.

Non-GAAP gross profit3 was RMB176.8 million (US$26.4 million) in the second quarter of 2022, representing an increase of 9% from RMB161.9 million in the second quarter of 2021.

Gross margin in the second quarter of 2022 was 34%, compared to 28% in the second quarter of 2021. Non-GAAP gross margin in the second quarter of 2022 was 34%, compared to 29% in the second quarter of 2021.

Operating expenses were RMB161.6 million (US$24.1 million) in the second quarter of 2022, compared to RMB190.3 million in the second quarter of 2021.

Research and development expenses were RMB70.3 million (US$10.5 million) in the second quarter of 2022, representing an increase of 15% from RMB60.9 million in the second quarter of 2021. The increase was primarily due to the higher salary and welfare benefits expenses and rental expenses.

Selling and marketing expenses were RMB60.8 million (US$9.1 million) in the second quarter of 2022, compared to RMB106.3 million in the second quarter of 2021, primarily attributable to the decrease in branding and marketing expenses, partially offset by the increased salary and welfare benefits expenses. The Company will evaluate and adjust its marketing strategy and budget based on the Company's performance, operational needs and market conditions.

General and administrative expenses were RMB30.6 million (US$4.6 million) in the second quarter of 2022, representing an increase of 32% from RMB23.1 million in the second quarter of 2021. The increase was mainly due to increased salary and welfare benefits expenses, estimated litigation compensation related to copyrights action and other professional service fees.

Operating income was RMB14.1 million (US$2.1 million) in the second quarter of 2022, compared to an operating loss of RMB31.6 million in the second quarter of 2021.

Non-GAAP operating income4 was RMB21.2 million (US$3.2 million) in the second quarter of 2022, compared to non-GAAP operating loss of RMB21.7 million in the second quarter of 2021.

Net income was RMB18.9 million (US$2.8 million) in the second quarter of 2022, compared to net loss of RMB29.0 million in the second quarter of 2021.

Non-GAAP net income was RMB26.0 million (US$3.9 million) in the second quarter of 2022, compared to non-GAAP net loss of RMB19.2 million in the second quarter of 2021.

Net income attributable to LIZHI INC.s ordinary shareholders was RMB18.8 million (US$2.8 million) in the second quarter of 2022, compared to net loss attributable to LIZHI INC.’s ordinary shareholders of RMB 29.0 million in the second quarter of 2021.

Non-GAAP net income attributable to LIZHI INC.s ordinary shareholders5 was RMB26.0 million (US$3.9 million) in the second quarter of 2022, compared to non-GAAP net loss attributable to LIZHI INC.’s ordinary shareholders of RMB19.2 million in the second quarter of 2021.

Basic and diluted net income per ADS6 were RMB0.37 (US$0.05) and RMB0.36 (US$0.05) in the second quarter of 2022, respectively, compared to basic and diluted net loss per ADS of RMB0.58 in the second quarter of 2021.

Non-GAAP basic and diluted net income per ADS7 were RMB0.50 (US$0.08) and RMB0.50 (US$0.07) in the second quarter of 2022, respectively, compared to non-GAAP basic and diluted net loss of RMB0.38 per ADS in the second quarter of 2021.

Balance Sheets

As of June 30, 2022, the Company had cash and cash equivalents and restricted cash of RMB588.1 million (US$87.8 million).

Conference Call

The Company’s management will host an earnings conference call at 9:00 PM U.S. Eastern Time on August 18, 2022 (9:00 AM Beijing/Hong Kong Time on August 19, 2022).

For participants who wish to join the call, please access the link provided below to complete online registration 20 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Once complete the registration, please dial-in 10 minutes before the scheduled start time of the earnings call and enter the personal PIN as instructed to connect to the call.

Additionally, a live webcast of the conference call and a replay of the webcast will be available on the Company's investor relations website at http://ir.lizhi.fm.

About LIZHI INC.

LIZHI INC. has created a comprehensive audio-based social ecosystem with a global presence. The Company aims to cater to users’ interests in audio entertainment and social networking through its product portfolios. LIZHI INC. envisions an audio ecosystem where everyone can be connected and interact through voices. LIZHI INC. has been listed on Nasdaq since January 2020.

For more information, please visit: http://ir.lizhi.fm.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

LIZHI uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss/income, non-GAAP net loss/income, non-GAAP net loss/income attributable to LIZHI INC.’s ordinary shareholders and non-GAAP basic and diluted net loss/income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses. Non-GAAP gross margin is non-GAAP gross profit as a percentage of net revenues. Non-GAAP operating loss/income is operating loss/income excluding share-based compensation expenses. Non-GAAP net loss/income is net loss/income, excluding share-based compensation expenses. Non-GAAP net loss/income attributable to LIZHI INC.’s ordinary shareholders is net loss/income attributable to LIZHI INC.’s ordinary shareholders, excluding share-based compensation expenses. Non-GAAP basic and diluted net loss/income per ADS is non-GAAP net loss/income attributable to LIZHI INC.’s ordinary shareholders divided by the weighted average number of ADS used in the calculation of basic and diluted net loss/income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of the above reconciling item adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of share-based compensation expenses.

However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures in isolation from, superior to, or as an alternative to the financial measure prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” near the end of this release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.6981 to US$1.00, the exchange rate on June 30, 2022, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollar or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: LIZHI’s goals and strategies; LIZHI’s future business development, results of operations and financial condition; the expected growth of the online audio market; the expectation regarding the rate at which to gain active users, especially paying users; LIZHI’s ability to monetize the user base; fluctuations in general economic and business conditions in China and overseas markets; the impact of the COVID-19 to LIZHI’s business operations and the economy in China and elsewhere generally; any adverse changes in laws, regulations, rules, policies or guidelines applicable to LIZHI; and assumptions underlying or related to any of the foregoing. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the Securities Exchange Commission. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

LIZHI INC.
IR Department
Tel: +86 (20) 3866-4265
E-mail: ir@lizhi.fm

The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: Lizhi@tpg-ir.com

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: Lizhi@tpg-ir.com

LIZHI INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except for share, ADS, per share data and per ADS data)

 

 

December
31,
2021

 

June
30,
2022

 

June
30,
2022

 

 

RMB

 

RMB

 

US$

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

533,293

 

582,665

 

86,990

Restricted cash

 

4,155

 

5,425

 

810

Accounts receivable, net

 

6,458

 

2,824

 

422

Prepayments and other current assets

 

33,604

 

24,578

 

3,669

 

 

 

 

 

 

 

Total current assets

 

 577,510

 

 615,492

 

 91,891

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, equipment and leasehold improvement, net

 

33,391

 

32,432

 

4,842

Intangible assets, net

 

2,245

 

1,477

 

221

Right-of-use assets, net

 

28,941

 

28,510

 

4,256

Other non-current assets

 

799

 

296

 

44

 

 

 

 

 

 

 

Total non-current assets

 

 65,376

 

 62,715

 

 9,363

 

 

 

 

 

 

 

TOTAL ASSETS

 

 642,886

 

 678,207

 

 101,254

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

80,793

 

60,960

 

9,101

Deferred revenue

 

20,657

 

23,804

 

3,554

Salary and welfare payable

 

123,075

 

116,843

 

17,444

Taxes payable

 

5,564

 

6,206

 

927

Short-term loans

 

68,999

 

45,950

 

6,860

Lease liabilities due within one year

 

13,929

 

17,052

 

2,546

Accrued expenses and other current liabilities

 

53,486

 

70,951

 

10,594

 

 

 

 

 

 

 

Total current liabilities

 

 366,503

 

 341,766

 

51,026

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Lease liabilities

 

17,076

 

13,505

 

2,016

Other non-current liabilities

 

4,452

 

4,248

 

634

 

 

 

 

 

 

 

Total non-current liabilities

 

 21,528

 

 17,753

 

 2,650

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 388,031

 

 359,519

 

53,676

 

 

 

 

 

 

 


LIZHI INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except for share, ADS, per share data and per ADS data)

 

 

December
31,
2021

 

June
30,
2022

 

June
30,
2022

 

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Class A Ordinary shares (US$0.0001 par value, 1,268,785,000 shares authorized, 798,962,260 shares
issued and 782,801,250 shares outstanding as of December 31, 2021; 1,268,785,000 shares authorized,
818,962,260 shares issued and 788,966,390 shares outstanding as of June 30, 2022).

 

530

 

 

543

 

 

81

 

Class B Ordinary shares (US$0.0001 par value, 231,215,000 shares authorized, issued and
outstanding as of December 31, 2021 and June 30, 2022, respectively).

 

168

 

 

168

 

 

25

 

Treasury stock

 

(11

)

 

(20

)

 

(3

)

Additional paid in capital

 

2,630,456

 

 

2,644,888

 

 

394,871

 

Accumulated deficit

 

(2,366,531

)

 

(2,331,257

)

 

(348,048

)

Accumulated other comprehensive (loss)/income

 

(9,757

)

 

4,369

 

 

652

 

TOTAL LIZHI Inc.’s shareholders’equity

 

254,855

 

 

318,691

 

 

47,578

 

 

 

 

 

 

 

 

Non-controlling interests

 

-

 

 

(3

)

 

-

 

 

 

 

 

 

 

 

TOTAL SHAREHOLDERS’EQUITY

 

254,855

 

 

318,688

 

 

47,578

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

642,886

 

 

678,207

 

 

101,254

 


LIZHI INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except for share, ADS, per share data and per ADS data)

 

 

Three Months Ended

 

Six Months Ended

 

 

June
30,
2021

 

March
31,
2022

 

June
30,
2022

 

June
30,
2022

 

June
30,
2021

 

June
30,
2022

 

June
30,
2022

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Audio entertainment revenues

 

555,073

 

 

514,022

 

 

513,018

 

 

76,592

 

 

1,044,379

 

 

1,027,040

 

 

153,333

 

Podcast, advertising and other revenues

 

4,212

 

 

2,691

 

 

2,676

 

 

400

 

 

9,959

 

 

5,367

 

 

801

 

Total net revenues

 

559,285

 

 

516,713

 

 

515,694

 

 

76,992

 

 

1,054,338

 

 

1,032,407

 

 

154,134

 

Cost of revenues(1)

 

(400,531

)

 

(348,621

)

 

(340,063

)

 

(50,770

)

 

(770,524

)

 

(688,684

)

 

(102,818

)

Gross profit

 

158,754

 

 

168,092

 

 

175,631

 

 

26,222

 

 

283,814

 

 

343,723

 

 

51,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

(106,325

)

 

(60,009

)

 

(60,756

)

 

(9,071

)

 

(227,115

)

 

(120,765

)

 

(18,030

)

General and administrative expenses

 

(23,072

)

 

(22,378

)

 

(30,550

)

 

(4,561

)

 

(42,689

)

 

(52,928

)

 

(7,902

)

Research and development expenses

 

(60,938

)

 

(71,094

)

 

(70,262

)

 

(10,490

)

 

(117,806

)

 

(141,356

)

 

(21,104

)

Total operating expenses

 

(190,335

)

 

(153,481

)

 

(161,568

)

 

(24,122

)

 

(387,610

)

 

(315,049

)

 

(47,036

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss)/income

 

(31,581

)

 

14,611

 

 

14,063

 

 

2,100

 

 

(103,796

)

 

28,674

 

 

4,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest (losses)/income, net

 

(308

)

 

(55

)

 

480

 

 

72

 

 

(556

)

 

425

 

 

63

 

Foreign exchange gains/(losses)

 

1

 

 

(386

)

 

(424

)

 

(63

)

 

(148

)

 

(810

)

 

(121

)

Investment income

 

53

 

 

94

 

 

146

 

 

22

 

 

460

 

 

240

 

 

36

 

Government grants

 

2,663

 

 

2,626

 

 

4,169

 

 

622

 

 

5,580

 

 

6,795

 

 

1,014

 

Others, net

 

144

 

 

(429

)

 

480

 

 

72

 

 

(605

)

 

51

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/income before income taxes

 

(29,028

)

 

16,461

 

 

18,914

 

 

2,825

 

 

(99,065

)

 

35,375

 

 

5,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expenses

 

-

 

 

(43

)

 

(61

)

 

(9

)

 

-

 

 

(104

)

 

(16

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income

 

(29,028

)

 

16,418

 

 

18,853

 

 

2,816

 

 

(99,065

)

 

35,271

 

 

5,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss/(income) attributable to the non-controlling interests shareholders

 

-

 

 

10

 

 

(7

)

 

(1

)

 

-

 

 

3

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income attributable to LIZHI INC.’s ordinary shareholders

 

(29,028

)

 

16,428

 

 

18,846

 

 

2,815

 

 

(99,065

)

 

35,274

 

 

5,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


LIZHI INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except for share, ADS, per share data and per ADS data)

 

 

Three Months Ended

 

Six Months Ended

 

 

June
30,
2021

 

March
31,
2022

 

June
30,
2022

 

June
30,
2022

 

June
30,
2021

 

June
30,
2022

 

June
30,
2022

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income

 

(29,028

)

 

16,418

 

 

18,853

 

 

2,816

 

 

(99,065

)

 

35,271

 

5,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss)/income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

(5,016

)

 

(1,218

)

 

15,344

 

 

2,291

 

 

(3,880

)

 

14,126

 

2,109

Total comprehensive (loss)/income

 

(34,044

)

 

15,200

 

 

34,197

 

 

5,107

 

 

(102,945

)

 

49,397

 

7,373

Comprehensive loss/(income) attributable to non‑controlling interests shareholders

 

-

 

 

10

 

 

(7

)

 

(1

)

 

-

 

 

3

 

-

Comprehensive (loss)/income attributable to LIZHI INC.’s ordinary shareholders

 

(34,044

)

 

15,210

 

 

34,190

 

 

5,106

 

 

(102,945

)

 

49,400

 

7,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income attributable to LIZHI INC.’s ordinary shareholders per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

(0.03

)

 

0.02

 

 

0.02

 

 

0.00

 

 

(0.10

)

 

0.03

 

0.01

—Diluted

 

(0.03

)

 

0.02

 

 

0.02

 

 

0.00

 

 

(0.10

)

 

0.03

 

0.01

Weighted average number of ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

997,522,794

 

 

1,022,743,151

 

 

1,031,036,519

 

 

1,031,036,519

 

 

964,367,302

 

 

1,026,970,940

 

1,026,970,940

—Diluted

 

997,522,794

 

 

1,027,560,107

 

 

1,035,130,441

 

 

1,035,130,441

 

 

964,367,302

 

 

1,030,795,632

 

1,030,795,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income attributable to LIZHI INC.’s ordinary shareholders per ADS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

(0.58

)

 

0.32

 

 

0.37

 

 

0.05

 

 

(2.05

)

 

0.69

 

0.10

—Diluted

 

(0.58

)

 

0.32

 

 

0.36

 

 

0.05

 

 

(2.05

)

 

0.68

 

0.10

Weighted average number of ADS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

49,876,140

 

 

51,137,158

 

 

51,551,826

 

 

51,551,826

 

 

48,218,365

 

 

51,348,547

 

51,348,547

—Diluted

 

49,876,140

 

 

51,378,005

 

 

51,756,522

 

 

51,756,522

 

 

48,218,365

 

 

51,539,782

 

51,539,782


LIZHI INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except for share, ADS, per share data and per ADS data)

(1) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

 

 

Three Months Ended

 

Six Months Ended

 

 

June
30,
2021

 

March
31,
2022

 

June
30,
2022

 

June
30,
2022

 

June
30,
2021

 

June
30,
2022

 

June
30,
2022

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

3,112

 

2,606

 

1,211

 

181

 

5,782

 

3,817

 

570

Selling and marketing expenses

 

1,025

 

1,007

 

267

 

40

 

1,308

 

1,274

 

190

General and administrative expenses

 

3,421

 

2,789

 

2,644

 

395

 

6,649

 

5,433

 

811

Research and development expenses

 

2,278

 

2,361

 

2,993

 

447

 

4,342

 

5,354

 

799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


LIZHI INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for share, ADS, per share data and per ADS data)

 

 

Three Months Ended

 

Six Months Ended

 

 

June
30,
2021

 

March
31,
2022

 

June
30,
2022

 

June
30,
2022

 

June
30,
2021

 

June
30,
2022

 

June
30,
2022

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

158,754

 

 

168,092

 

175,631

 

26,222

 

283,814

 

 

343,723

 

51,316

Share-based compensation expenses

 

3,112

 

 

2,606

 

1,211

 

181

 

5,782

 

 

3,817

 

570

Non-GAAP gross profit

 

161,866

 

 

170,698

 

176,842

 

26,403

 

289,596

 

 

347,540

 

51,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss)/income

 

(31,581

)

 

14,611

 

14,063

 

2,100

 

(103,796

)

 

28,674

 

4,280

Share-based compensation expenses

 

9,836

 

 

8,763

 

7,115

 

1,063

 

18,081

 

 

15,878

 

2,370

Non-GAAP operating (loss)/income

 

(21,745

)

 

23,374

 

21,178

 

3,163

 

(85,715

)

 

44,552

 

6,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income

 

(29,028

)

 

16,418

 

18,853

 

2,816

 

(99,065

)

 

35,271

 

5,264

Share-based compensation expenses

 

9,836

 

 

8,763

 

7,115

 

1,063

 

18,081

 

 

15,878

 

2,370

Non-GAAP net (loss)/income

 

(19,192

)

 

25,181

 

25,968

 

3,879

 

(80,984

)

 

51,149

 

7,634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income attributable to LIZHI INC.’s ordinary shareholders

 

(29,028

)

 

16,428

 

18,846

 

2,815

 

(99,065

)

 

35,274

 

5,264

Share-based compensation expenses

 

9,836

 

 

8,763

 

7,115

 

1,063

 

18,081

 

 

15,878

 

2,370

Non-GAAP net (loss)/income attributable to LIZHI INC.’s ordinary shareholders

 

(19,192

)

 

25,191

 

25,961

 

3,878

 

(80,984

)

 

51,152

 

7,634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net(loss)/income attributable to LIZHI INC.’s ordinary shareholders per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

(0.02

)

 

0.02

 

0.03

 

0.00

 

(0.08

)

 

0.05

 

0.01

—Diluted

 

(0.02

)

 

0.02

 

0.03

 

0.00

 

(0.08

)

 

0.05

 

0.01

Weighted average number of ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

997,522,794

 

 

1,022,743,151

 

1,031,036,519

 

1,031,036,519

 

964,367,302

 

 

1,026,970,940

 

1,026,970,940

—Diluted

 

997,522,794

 

 

1,027,560,107

 

1,035,130,441

 

1,035,130,441

 

964,367,302

 

 

1,030,795,632

 

1,030,795,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net(loss)/income attributable to LIZHI INC.’s ordinary shareholders per ADS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

(0.38

)

 

0.49

 

0.50

 

0.08

 

(1.68

)

 

1.00

 

0.15

—Diluted

 

(0.38

)

 

0.49

 

0.50

 

0.07

 

(1.68

)

 

0.99

 

0.15

Weighted average number of ADS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

49,876,140

 

 

51,137,158

 

51,551,826

 

51,551,826

 

48,218,365

 

 

51,348,547

 

51,348,547

—Diluted

 

49,876,140

 

 

51,378,005

 

51,756,522

 

51,756,522

 

48,218,365

 

 

51,539,782

 

51,539,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

__________________________

1 Refers to the average monthly number of active users across our platforms and Apps in a given period, calculated by dividing (i) the sum of mobile active users for each month of such period, by (ii) the number of months in the same period.
2 Refers to the average monthly number of paying users in a given period, calculated by dividing (i) the total number of paying users in each month of such period by (ii) the number of months in the same period.
3 Non-GAAP gross profit is a non-GAAP financial measure, which is defined as gross profit excluding share-based compensation expenses. This adjustment amounted to RMB1.2 million (US$0.2 million) in the second quarter of 2022. Please refer to the section below titled “Unaudited Reconciliations of GAAP and Non-GAAP Results” for details.
4 Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses. This adjustment amounted to RMB7.1 million (US$1.1 million) in the second quarter of 2022. Please refer to the section below titled “Unaudited Reconciliations of GAAP and Non-GAAP Results” for details.
5 Non-GAAP net income attributable to LIZHI INC.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income attributable to LIZHI INC.’s ordinary shareholders excluding share-based compensation expenses. These adjustments amounted to RMB7.1 million (US$1.1 million) and RMB 9.8 million in the second quarter of 2022 and 2021, respectively. Please refer to the section below titled “Unaudited Reconciliations of GAAP and Non-GAAP Results” for details.
6 ADS refers to American Depositary Share. Each ADS represents twenty Class A ordinary shares of the Company. Basic and diluted net income per ADS is net income attributable to LIZHI INC.’s ordinary shareholders divided by weighted average number of ADS.
7 Non-GAAP basic and diluted net income per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to LIZHI INC.’s ordinary shareholders divided by weighted average number of ADS used in the calculation of basic and diluted net income per ADS.