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LIZHI INC. Reports First Quarter 2022 Unaudited Financial Results

·21-min read

GUANGZHOU, China, May 26, 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 first quarter ended March 31, 2022.

First Quarter 2022 Financial and Operational Highlights

  • Net revenues were RMB516.7 million (US$81.5 million) in the first quarter of 2022, representing a 4% increase from RMB495.1 million in the first quarter of 2021.

  • Average total mobile MAUs1 in the first quarter of 2022 was 51.5 million, compared to 59.7 million in the first quarter of 2021.

  • Average total monthly paying users2 in the first quarter of 2022 reached 482.2 thousand, representing an increase of 2% from 474.7 thousand in the first quarter of 2021.

“In the first quarter of 2022, we’re pleased to continue seeing the healthy improvement in our profitability, posting revenue growth of 4% and gross profit growth of 34% year-over-year,” said Mr. Jinnan (Marco) Lai, founder and CEO of LIZHI. “During the quarter, our strategic initiatives remained focused on optimizing operational efficiency and improving margins, as well as harnessing our technological capabilities to strengthen the competitiveness of our products and enrich the user experience. Moreover, in our continuous efforts to enhance the vitality of our audio community and boost user interactions, our average audio entertainment mobile MAUs increased by 11% from 8.27 million in the first quarter of 2021 to 9.14 million in the first quarter of 2022. As we move forward, we will explore more commercialization avenues in audio entertainment and social networking while also concentrating on achieving a sustainable growth.

“On the global front, we progressed with refining TIYA App’s features, introducing new functions to enhance its social networking capabilities and further boost TIYA’s user engagement, user activeness as well as its global appeal. In addition, we worked diligently to upgrade our proprietary suite of technologies, empowering us to persistently innovate and enrich product features and functions to align with users’ diverse needs. Looking ahead, we will steadfastly execute our globalization strategy, continue our efforts in developing our in-house technologies, and strive to advance product innovation. We believe that we are well poised to capture a vast array of opportunities in the global audio and social networking space and achieve greater success,” Mr. Lai concluded.

Ms. Chengfang Lu, Acting Chief Financial Officer of LIZHI, said, “Our first quarter results demonstrate our growth trajectory. Driven by the continuous improvements in our operating efficiency, in the first quarter, our gross margin grew to 32%, up 700 basis points year-over-year. More encouragingly, we achieved a net income of RMB16.4 million in this quarter, representing an 84% sequential increase. Going forward, we will carry on building a more competitive audio ecosystem, pursuing diversified commercialization avenues, and advancing our technology capabilities. We are confident that these endeavors will strengthen our core competencies and empower us to create greater value for our users and shareholders.”

First Quarter 2022 Unaudited Financial Results

Net revenues were RMB516.7 million (US$81.5 million) in the first quarter of 2022, representing an increase of 4% from RMB495.1 million in the first quarter of 2021, primarily due to the increases in the number of paying users and the average amount of user spend on our audio entertainment products, partially offset by the decrease in advertising revenue which was mainly due to the decrease in the number of advertising projects. While the COVID-19 resurgence in various parts of the world continues, the extent to which the pandemic impacts the Company’s operations beyond the first quarter of 2022 depends on COVID-19’s future development in China and across the globe, which is subject to change and substantial uncertainty, and therefore cannot be predicted.

Cost of revenues was RMB348.6 million (US$55.0 million) in the first quarter of 2022, representing a decrease of 6% from RMB370.0 million in the first quarter of 2021, mainly attributable to a decrease in the revenue sharing fees primarily due to the adjustment in revenue sharing policies, resulting in a decrease in the percentage of the revenue sharing fees in the first quarter of 2022.

Gross profit was RMB168.1 million (US$26.5 million) in the first quarter of 2022, representing an increase of 34% from RMB125.1 million in the first quarter of 2021.

Non-GAAP gross profit3 was RMB170.7 million (US$26.9 million) in the first quarter of 2022, representing an increase of 34% from RMB127.7 million in the first quarter of 2021.

Gross margin in the first quarter of 2022 was 32%, compared to 25% in the first quarter of 2021. Non-GAAP gross margin in the first quarter of 2022 was 33%, compared to 26% in the first quarter of 2021.

Operating expenses were RMB153.5 million (US$24.2 million) in the first quarter of 2022, representing a decrease of 22% from RMB197.3 million in the first quarter of 2021.

Research and development expenses were RMB71.1 million (US$11.2 million) in the first quarter of 2022, representing an increase of 25% from RMB56.9 million in the first quarter of 2021. The increase was primarily due to the higher salary and welfare benefits expenses and rental expenses.

Selling and marketing expenses were RMB60.0 million (US$9.5 million) in the first quarter of 2022, representing a decrease of 50% from RMB120.8 million in the first quarter of 2021, primarily attributable to the decrease in promotion and marketing expenses, and partially offset by the increased salary and welfare benefits expenses.

General and administrative expenses were RMB22.4 million (US$3.5 million) in the first quarter of 2022, representing an increase of 14% from RMB19.6 million in the first quarter of 2021. The increase was mainly due to increased salary and welfare benefits expenses and rental expenses.

Operating income was RMB14.6 million (US$2.3 million) in the first quarter of 2022, compared to operating loss of RMB72.2 million in the first quarter of 2021.

Non-GAAP operating income4 was RMB23.4 million (US$3.7 million) in the first quarter of 2022, compared to non-GAAP operating loss of RMB64.0 million in the first quarter of 2021.

Net income was RMB16.4 million (US$2.6 million) in the first quarter of 2022, compared to net loss of RMB70.0 million in the first quarter of 2021.

Non-GAAP net income was RMB25.2 million (US$4.0 million) in the first quarter of 2022, compared to non-GAAP net loss of RMB61.8 million in the first quarter of 2021.

Net income attributable to LIZHI INC.s ordinary shareholders was RMB16.4 million (US$2.6 million) in the first quarter of 2022, compared to net loss attributable to LIZHI INC.’s ordinary shareholders of RMB70.0 million in the first quarter of 2021.

Non-GAAP net income attributable to LIZHI INC.s ordinary shareholders5 was RMB25.2 million (US$4.0 million) in the first quarter of 2022, compared to non-GAAP net loss attributable to LIZHI INC.'s ordinary shareholders of RMB61.8 million in the first quarter of 2021.

Basic and diluted net income per ADS6 were RMB0.32 (US$0.05) in the first quarter of 2022, compared to basic and diluted net loss per ADS of RMB1.50 in the first quarter of 2021.

Non-GAAP basic and diluted net income per ADS7 were RMB0.49 (US$0.08) in the first quarter of 2022, compared to non-GAAP basic and diluted net loss of RMB1.33 per ADS in the first quarter of 2021.

Balance Sheets

As of March 31, 2022, the Company had cash and cash equivalents, short-term investments and restricted cash of RMB515.5 million (US$81.3 million).

Conference Call

The Company's management will host an earnings conference call at 9:00 PM U.S. Eastern Time on May 26, 2022 (9:00 AM Beijing/Hong Kong Time on May 27, 2022).

For participants who wish to join the call, please access the link provided below to complete the Direct Event online registration and dial in 10 minutes prior to the scheduled call start time.

Event Title:

LIZHI INC. First Quarter 2022 Earnings Conference Call

Conference ID:

8376836

Registration Link:

http://apac.directeventreg.com/registration/event/8376836

Upon registration, each participant will receive a set of dial-in numbers by location, a Direct Event passcode, a unique Registrant ID, and further detailed instructions, which will be used to join the conference call.

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

A replay of the conference call will be accessible approximately two hours after the conclusion of the call until June 2, 2022, by dialing the following telephone numbers:

United States:

+1-855-452-5696

International:

+61-2-8199-0299

Hong Kong, China:

800-963-117

Mainland, China:

400-820-9035

Replay Access Code:

8376836

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 accretions to preferred shares redemption value and 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 items 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 accretions to preferred shares redemption value and 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 RMB6.3393 to US$1.00, the exchange rate on March 31, 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. dollars 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

 

March
31,
2022

 

March
31,
2022

 

 

RMB

 

RMB

 

US$

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

533,293

 

490,136

 

77,317

Short-term investments

 

-

 

20,000

 

3,155

Restricted cash

 

4,155

 

5,327

 

840

Accounts receivable, net

 

6,458

 

3,553

 

560

Prepayments and other current assets

 

33,604

 

29,456

 

4,647

 

 

 

 

 

 

 

Total current assets

 

 577,510

 

 548,472

 

 86,519

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, equipment and leasehold improvement, net

 

33,391

 

33,787

 

5,330

Intangible assets, net

 

2,245

 

1,792

 

283

Right-of-use assets, net

 

28,941

 

31,479

 

4,966

Other non-current assets

 

799

 

681

 

107

 

 

 

 

 

 

 

Total non-current assets

 

 65,376

 

 67,739

 

 10,686

 

 

 

 

 

 

 

TOTAL ASSETS

 

 642,886

 

 616,211

 

 97,205

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

80,793

 

63,033

 

9,943

Deferred revenue

 

20,657

 

22,530

 

3,554

Salary and welfare payable

 

123,075

 

104,630

 

16,505

Taxes payable

 

5,564

 

5,549

 

875

Short-term loans

 

68,999

 

50,000

 

7,887

Lease liabilities due within one year

 

13,929

 

16,649

 

2,626

Accrued expenses and other current liabilities

 

53,486

 

54,273

 

8,561

 

 

 

 

 

 

 

Total current liabilities

 

 366,503

 

 316,664

 

 49,951

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Lease liabilities

 

17,076

 

16,968

 

2,677

Other non-current liabilities

 

4,452

 

4,225

 

666

 

 

 

 

 

 

 

Total non-current liabilities

 

 21,528

 

 21,193

 

 3,343

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 388,031

 

 337,857

 

 53,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

March
31,
2022

 

March
31,
2022

 

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

LIZHI Inc.’s 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 784,879,970 shares outstanding as of March 31, 2022).

 

530

 

 

543

 

 

86

 

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

 

168

 

 

168

 

 

27

 

Treasury stock

 

(11

)

 

(22

)

 

(3

)

Additional paid in capital

 

2,630,456

 

 

2,638,753

 

 

416,253

 

Accumulated deficit

 

(2,366,531

)

 

(2,350,103

)

 

(370,720

)

Accumulated other comprehensive loss

 

(9,757

)

 

(10,975

)

 

(1,730

)

TOTAL LIZHI Inc.’s shareholders’ equity

 

254,855

 

 

278,364

 

 

43,913

 

 

 

 

 

 

 

Non-controlling interests

 

-

 

 

(10

)

 

(2

)

 

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

254,855

 

 

278,354

 

 

43,911

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

642,886

 

 

616,211

 

 

97,205

 


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

 

 

March
31,
2021

 

December
31,
2021

 

March
31,
2022

 

March
31,
2022

 

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

Audio entertainment revenues

 

489,306

 

 

556,304

 

 

514,022

 

 

81,085

 

Podcast, advertising and other revenues

 

5,747

 

 

4,028

 

 

2,691

 

 

424

 

Total net revenues

 

495,053

 

 

560,332

 

 

516,713

 

 

81,509

 

Cost of revenues(1)

 

(369,993

)

 

(378,406

)

 

(348,621

)

 

(54,994

)

Gross profit

 

125,060

 

 

181,926

 

 

168,092

 

 

26,515

 

 

 

 

 

 

 

 

 

 

Operating expenses(1)

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

(120,790

)

 

(70,859

)

 

(60,009

)

 

(9,466

)

General and administrative expenses

 

(19,617

)

 

(32,192

)

 

(22,378

)

 

(3,530

)

Research and development expenses

 

(56,868

)

 

(73,523

)

 

(71,094

)

 

(11,215

)

Total operating expenses

 

(197,275

)

 

(176,574

)

 

(153,481

)

 

(24,211

)

 

 

 

 

 

 

 

 

 

Operating (loss)/income

 

(72,215

)

 

5,352

 

 

14,611

 

 

2,304

 

 

 

 

 

 

 

 

 

 

Interest expenses, net

 

(248

)

 

(154

)

 

(55

)

 

(9

)

Foreign exchange losses

 

(149

)

 

(311

)

 

(386

)

 

(61

)

Investment income

 

407

 

 

-

 

 

94

 

 

15

 

Government grants

 

2,917

 

 

3,832

 

 

2,626

 

 

414

 

Others, net

 

(749

)

 

572

 

 

(429

)

 

(68

)

 

 

 

 

 

 

 

 

 

(Loss)/income before income taxes

 

(70,037

)

 

9,291

 

 

16,461

 

 

2,595

 

 

 

 

 

 

 

 

 

 

Income tax expenses

 

-

 

 

(376

)

 

(43

)

 

(7

)

 

 

 

 

 

 

 

 

 

Net (loss)/income

 

(70,037

)

 

8,915

 

 

16,418

 

 

2,588

 

 

 

 

 

 

 

 

 

 

Net loss attributable to the non-controlling interests shareholders

 

-

 

 

-

 

 

10

 

 

2

 

 

 

 

 

 

 

 

 

 

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

 

(70,037

)

 

8,915

 

 

16,428

 

 

2,590

 

 

 

 

 

 

 

 

 

 


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

 

 

March
31,
2021

 

December
31,
2021

 

March
31,
2022

 

March
31,
2022

 

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

Net (loss)/income

 

(70,037

)

 

8,915

 

 

16,418

 

 

2,588

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

1,136

 

 

(5,152

)

 

(1,218

)

 

(192

)

Total comprehensive (loss)/income

 

(68,901

)

 

3,763

 

 

15,200

 

 

2,396

 

Comprehensive loss attributable to non‑controlling interests shareholders

 

-

 

 

-

 

 

10

 

 

2

 

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

 

(68,901

)

 

3,763

 

 

15,210

 

 

2,398

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

—Basic

 

(0.08

)

 

0.01

 

 

0.02

 

 

0.00

 

—Diluted

 

(0.08

)

 

0.01

 

 

0.02

 

 

0.00

 

Weighted average number of ordinary shares

 

 

 

 

 

 

 

 

—Basic

 

930,843,416

 

 

1,022,278,296

 

 

1,022,743,151

 

 

1,022,743,151

 

—Diluted

 

930,843,416

 

 

1,026,331,428

 

 

1,027,560,107

 

 

1,027,560,107

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

—Basic

 

(1.50

)

 

0.17

 

 

0.32

 

 

0.05

 

—Diluted

 

(1.50

)

 

0.17

 

 

0.32

 

 

0.05

 

Weighted average number of ADS

 

 

 

 

 

 

 

 

—Basic

 

46,542,171

 

 

51,113,915

 

 

51,137,158

 

 

51,137,158

 

—Diluted

 

46,542,171

 

 

51,316,571

 

 

51,378,005

 

 

51,378,005

 


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

 

 

March
31,
2021

 

December
31,
2021

 

March
31,
2022

 

March
31,
2022

 

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

Cost of revenues

 

2,670

 

2,519

 

2,606

 

411

Selling and marketing expenses

 

283

 

1,039

 

1,007

 

159

General and administrative expenses

 

3,228

 

2,879

 

2,789

 

440

Research and development expenses

 

2,064

 

2,898

 

2,361

 

372

 

 

 

 

 

 

 

 

 


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

 

 

March
31,
2021

 

December
31,
2021

 

March
31,
2022

 

March
31,
2022

 

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

Gross profit

 

125,060

 

 

181,926

 

168,092

 

26,515

Share-based compensation expenses

 

2,670

 

 

2,519

 

2,606

 

411

Non-GAAP gross profit

 

127,730

 

 

184,445

 

170,698

 

26,926

 

 

 

 

 

 

 

 

 

Operating (loss)/income

 

(72,215

)

 

5,352

 

14,611

 

2,304

Share-based compensation expenses

 

8,245

 

 

9,335

 

8,763

 

1,382

Non-GAAP operating (loss)/income

 

(63,970

)

 

14,687

 

23,374

 

3,686

 

 

 

 

 

 

 

 

 

Net (loss)/income

 

(70,037

)

 

8,915

 

16,418

 

2,588

Share-based compensation expenses

 

8,245

 

 

9,335

 

8,763

 

1,382

Non-GAAP net (loss)/income

 

(61,792

)

 

18,250

 

25,181

 

3,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(70,037

)

 

8,915

 

16,428

 

2,590

Share-based compensation expenses

 

8,245

 

 

9,335

 

8,763

 

1,382

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

 

(61,792

)

 

18,250

 

25,191

 

3,972

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

—Basic

 

(0.07

)

 

0.02

 

0.02

 

0.00

—Diluted

 

(0.07

)

 

0.02

 

0.02

 

0.00

Weighted average number of ordinary shares

 

 

 

 

 

 

 

 

—Basic

 

930,843,416

 

 

1,022,278,296

 

1,022,743,151

 

1,022,743,151

—Diluted

 

930,843,416

 

 

1,026,331,428

 

1,027,560,107

 

1,027,560,107

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

—Basic

 

(1.33

)

 

0.36

 

0.49

 

0.08

—Diluted

 

(1.33

)

 

0.36

 

0.49

 

0.08

Weighted average number of ADS

 

 

 

 

 

 

 

 

—Basic

 

46,542,171

 

 

51,113,915

 

51,137,158

 

51,137,158

—Diluted

 

46,542,171

 

 

51,316,571

 

51,378,005

 

51,378,005

 

 

 

 

 

 

 

 

 

___________________________

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 RMB2.6 million (US$0.4 million) in the first 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 RMB8.8 million (US$1.4 million) in the first 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 RMB8.8 million (US$1.4 million) and RMB8.2 million in the first 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.


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