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TGL Nasdaq· Treasure Global Inc
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TGL Nasdaq· Treasure Global Inc
Earnings report Q4 2023

TGL Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

TGL's revenue in the latest quarter showed significant growth across its major revenue categories.

  • Product and loyalty program revenue: Gross profit increased from $83.4 million in the same period last year to $179.8 million, representing a substantial growth of 115.7%. This increase in gross profit can be attributed to the reduction in spending related rewards granted to customers in the ZCITY platform, resulting in higher gross profit in the current period.

  • Transaction revenue: Gross profit decreased slightly by $1.3 million, or 7.4%, from $17.1 million in the same period last year to $15.9 million. However, the gross margin remained stable at 100.0%.

  • Member subscription revenue: Gross profit increased by $14.7 million, or 11.0%, from $133.5 million in the same period last year to $148.2 million. This growth can be attributed to the increase in customers subscribing to the Zmember program.

  • Sublicense revenue: Gross profit of $1.7 million was generated in the latest quarter, compared to no revenue in the same period last year. This represents a 100.0% increase in gross profit.

Strengths

TGL demonstrated strong revenue growth in the latest quarter, particularly in the product and loyalty program revenue and member subscription revenue segments. The increase in gross profit in the product and loyalty program revenue segment can be attributed to the reduction in spending related rewards granted to customers, resulting in higher gross profit. Additionally, the growth in member subscription revenue indicates an increasing number of customers subscribing to the Zmember program.

Challenges

TGL experienced a slight decrease in gross profit in the transaction revenue segment. While the decrease was relatively small, it is worth monitoring to ensure sustained growth in this segment.

Noteworthy

TGL's overall gross profit for the six months ended December 31, 2023, increased by $237.1 million, or 87.5%, compared to the same period last year. This significant increase in gross profit was primarily driven by the reduction in spending related rewards granted to customers and the growth in member subscription revenue. The gross margin also improved from 0.8% to 2.5% during the same period.

Summary

TGL delivered strong revenue performance in the latest quarter, with notable growth in the product and loyalty program revenue and member subscription revenue segments. The reduction in spending related rewards and the increase in customers subscribing to the Zmember program contributed to the significant increase in gross profit. While there was a slight decrease in gross profit in the transaction revenue segment, overall, TGL's financial performance demonstrates positive momentum and potential for continued growth.

Source documents

Form 10-Q  filed on Feb 14, 2024
25 pages scanned

Reference data

Company financials Q4 revenue 6.7M
Analyst estimates Q4 EPS missed by NaN%
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