Shares of iHuman Inc. (IH) plummeted 5.79% in intraday trading on Tuesday after the company reported declines in revenue and profit for the fourth quarter of 2024. The Chinese provider of tech-powered intellectual development products saw its financial performance impacted by demographic trends and cautious consumer spending.
iHuman's fourth-quarter revenue fell 7.1% year-over-year to RMB232.7 million (US$31.9 million), down from RMB250.4 million in the same period last year. The company attributed this decline to China's shrinking newborn population and more conservative consumer spending habits. Net income for the quarter dropped to RMB26.5 million (US$3.6 million), compared to RMB33.3 million in the year-ago period, representing a 20.4% decrease.
Despite the challenging market conditions, iHuman maintained its user base, with average total monthly active users (MAUs) slightly increasing to 25.78 million in Q4, up from 25.38 million in the same quarter last year. The company also highlighted its ongoing efforts in AI integration and product innovation, including the development of a proprietary large language model and enhancements to its coding education platform. However, these initiatives did not appear to offset investor concerns about the company's financial performance in the near term.
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