Executive Summary

Q2 2024 unaudited revenue is estimated at $6.9M, derived from H1 revenue of $15.6M and Q1 revenue of $8.7M; gross profit is estimated at $4.2M with gross margin roughly ~60% consistent with company commentary, indicating healthy unit economics despite sequential deceleration versus Q1 .
Strong content monetization continued: “Mr. Williams! Madame is Dying” exceeded $9.0M in unaudited top-ups and 201.3M views, underscoring hit-driven revenue leverage .
Geographic traction improved with FlexTV reaching top-10 Free Entertainment ranks in Thailand, Japan, France, South Korea, and Indonesia through July–August; U.S. streaming revenue represented 51.7% of H1, reflecting strategic emphasis on English content and U.S. market .
Balance sheet bolstered by private placements: $3.7M common stock closed May 9 at $2.20/share, and $1.5M equity/warrants closed Aug 1, providing incremental investment capacity for content and growth .
Wall Street consensus via S&P Global was unavailable in our session; no formal guidance ranges were disclosed, so estimate and guidance comparison is not included .

What Went Well and What Went Wrong

What Went Well

Hit content monetization: “Mr. Williams! Madame is Dying” generated an unaudited total user top-up amount exceeding $9.0M and 201.3M views, demonstrating strong willingness to pay and repeat engagement .
Geographic traction: FlexTV broke into top-10 rankings across multiple countries in July–August, evidencing expanding brand awareness and app-store discovery funnels .
Management execution focus: CEO emphasized pipeline scale-up, studio partnerships, and production cadence of “over 5 short dramas per month” post-July, aligning operating investments with monetization momentum .
- “We are committed to expanding our content library, nurturing studios… and enhancing user engagement features” .

What Went Wrong

Sequential revenue deceleration: Q2 revenue implied at $6.9M vs $8.7M in Q1 as the content slate mix shifted and H1 total reached $15.6M, requiring ongoing hit frequency to sustain growth .
Transparency limits: No EPS, detailed P&L line items beyond revenue and gross profit in press materials; lack of formal guidance ranges constrains near-term modeling precision .
External funding reliance: Two private placements ($3.7M and $1.5M) highlight need for external capital to fund expansion, raising dilution considerations for shareholders .

Financial Results

Summary Financials (Unaudited)

Metric	Q1 2024	Q2 2024 (derived)
Revenue ($USD Millions)	$8.7	$6.9 (H1 $15.6 – Q1 $8.7)
Gross Profit ($USD Millions)	$5.2	$4.2 (H1 $9.4 – Q1 $5.2)
Gross Profit Margin %	~60.0% (company commentary)	~60.9% (computed: $4.2/$6.9)
EPS ($USD)	Not disclosed	Not disclosed

Notes: Q2 values are derived from H1 totals and Q1 disclosures; company states “almost 60.0%” gross margin for both periods .

Revenue Mix

Metric	Q1 2024	Q2 2024 (derived)
Membership & Top-up Streaming ($USD Millions)	>$8.0	~$6.3 (H1 $14.3 – Q1 $8.0)
Online Advertising ($USD Millions)	~$0.7	~$0.6 (H1 ~$1.3 – Q1 ~$0.7)
U.S. Streaming Revenue ($USD Millions)	$4.4 (54.6% mix)	~$3.0 (H1 $7.4 – Q1 $4.4; H1 mix 51.7%)

KPIs

Metric	Q1 2024	H1 2024
Quarterly Active Users (QAU) / Total Active Users (TAU)	2.62M QAU	4.1M TAU
Quarterly Paying Users (QPU) / Total Active Paying Users (TPU)	0.32M QPU	0.5M TPU
ARPU ($)	$3.07 (Q1)	$3.5 (H1 reported)
ARPPU ($)	$24.94 (Q1)	$28.8 (H1 reported)
User Recharge ($USD Millions)	$9.3 (Q1)	$15.8 (H1; 62% U.S.)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3/Q4 2024	Not disclosed	Not disclosed	N/A
Margins	FY/Q3/Q4 2024	Not disclosed	Not disclosed	N/A
OpEx, OI&E, Tax Rate	FY/Q3/Q4 2024	Not disclosed	Not disclosed	N/A
Segment Guidance	FY/Q3/Q4 2024	Not disclosed	Not disclosed	N/A

Note: No formal quantitative guidance was provided in the Q1 or Q2 press releases/8-Ks reviewed .

Earnings Call Themes & Trends

Note: No Q2 earnings call transcript was found in our document catalog [List: earnings-call-transcript 0 results].

Topic	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
Content pipeline and production cadence	Strengthened script team “~10x” to produce 5–10 short dramas/month starting June	“Successfully stabilized production at over 5 short dramas per month” since July	Execution progressing
Hit monetization	“Mr. Williams! Madame is Dying” top-ups >$6.3M and 4.8M views as of Apr 30	Same title top-ups >$9.0M and 201.3M views by Jul 31	Strengthening
U.S. market focus	Q1 U.S. streaming $4.4M (54.6% mix)	H1 U.S. streaming $7.4M (51.7% mix)	Sustained focus; diversified mix
App store rankings / regional traction	8th position in U.S. Apple App Store (Jan 20)	Top ranks across Thailand, Japan, France, South Korea, Indonesia (Jul–Aug)	Broadening internationally
Capital and funding	N/A	$3.7M placement (May 9) and $1.5M placement (Aug 1)	Incremental funding
Guidance & disclosure	Limited; no formal ranges	Limited; no formal ranges	Unchanged

Management Commentary

“In Q2 of 2024, our efforts to bolster FlexTV’s development were validated as we witnessed significant tractions and engagement on the platform. The rapid uptake by users underscores the appeal of our curated short drama content” — CEO Yucheng Hu .
“We are committed to expanding our content library, nurturing studios… forging strategic partnerships, and enhancing user engagement features” .
“Since July 2024, our newly reinforced team has successfully stabilized production at over 5 short dramas per month” .

Q&A Highlights

No Q2 2024 earnings call transcript was identified; thus, no Q&A themes or guidance clarifications are available from a call record [List: earnings-call-transcript 0 results].

Estimates Context

Wall Street consensus (EPS, revenue, EBITDA) via S&P Global was unavailable in our session; therefore, estimate comparisons and beat/miss analysis are not included. Values would be retrieved from S&P Global if accessible.

Key Takeaways for Investors

Content flywheel strengthening: Hit-driven monetization is robust, with top-ups >$9.0M for a single series, reinforcing ROI potential of high-quality short dramas .
International distribution is scaling: Top-10 app-store ranks across multiple countries point to expanding TAM and discoverability beyond the U.S. .
U.S. monetization remains a core anchor: 51.7% H1 streaming revenue from the U.S. supports a thesis focused on English-language content economics .
Sequential revenue variability underscores slate dependency: Q2 implied revenue ($6.9M) below Q1 ($8.7M) suggests quarterly outcomes hinge on timing and success of hit releases .
Margin profile resilient: Gross margin commentary of “almost 60.0%” and derived Q2 margin ~60.9% imply attractive unit economics that can scale with user growth .
Capital raised to fund growth: $3.7M (May) and $1.5M (Aug) placements bolster liquidity for content development, studio partnerships, and marketing .
Modeling caution: Lack of formal guidance and unavailable consensus adds uncertainty; monitor near-term content slate, App Store rankings, and subsequent disclosures for volume and pricing signals .

Additional Relevant Disclosures

“User recharge totaled $15.8M in H1 2024, with 62.0% generated from the U.S.” .
“Gross profit for the first six months of 2024 reached $9.4M, with an almost 60.0% gross profit margin” .
“In Q1 2024, revenue reached $8.7M, gross profit $5.2M, and ARPU $3.07; QPU 0.32M; ARPPU $24.94” .

Notes: All figures are unaudited, drawn from company press releases and 8-K materials; no 10-Q/10-K line-item detail or call transcript was available in the documents read .

Mega Matrix Corp. (MPU)·Q2 2024 Earnings Summary