- Scienjoy Holding Corporation (SJ, Financial) reports a decrease in total revenue for Q1 2025 but shows operational improvements.
- The company reported a net loss of RMB13.0M due to losses on marketable securities despite higher gross profit.
- Scienjoy continues its global expansion strategy, focusing on its Dubai hub and AI initiatives.
Scienjoy Holding Corporation (NASDAQ: SJ) released its unaudited financial results for the first quarter of 2025, showing a mixed performance. Total revenues fell to RMB307.3 million ($42.4 million), down from RMB316.3 million in the same quarter of 2024. Despite the decline in revenues, the company demonstrated a strong operational performance with income from operations increasing 33.3% year over year to RMB13.7 million ($1.9 million).
The gross profit rose by 12.1% to RMB59.5 million ($8.2 million), and the gross margin improved from 16.8% to 19.4%. However, the company reported a net loss of RMB13.0 million ($1.8 million), attributed mainly to a RMB24.3 million loss from changes in the fair value of marketable securities.
Scienjoy faced a decline in the number of total paying users to 151,971, compared to 164,044 in the previous year. However, the company managed to increase its cash position to RMB286.5 million ($39.5 million), a rise of RMB33.9 million from December 2024.
To counteract these challenges, Scienjoy is focusing on operational efficiency and strategic cost management. The company is also continuing its global expansion through its Dubai hub and enhancing its AI initiatives in the Middle East and other regions. This approach seeks to capitalize on the synergies between digital and physical channels while maintaining agility in response to market dynamics.
