Executive Summary

Revenue grew to $13.291M, +10.8% year over year and +3.3% sequential; gross margin expanded to 78.8% and operating loss improved to $(0.799)M, near breakeven .
Adjusted income from operations turned positive at $0.043M, reflecting cost rationalization; GAAP loss from operations improved 72% YoY .
Reported net loss and EPS were driven by a $(6.510)M unrealized loss on Kaixin investment; EPS was $(0.008) versus $(0.046) a year ago .
No formal financial guidance was issued; governance changes and buyback extension are near‑term narrative drivers (new interim CFO; buyback authorization increased to $15M and extended to 12/31/2024) .

What Went Well and What Went Wrong

What Went Well
- Subscription revenue growth: Lofty and Trucker Path subscriptions rose to $12.288M in Q3; Lofty seats increased to 50,000; gross margin expanded to 78.8% .
- Cost controls: Operating expenses fell 7.6% YoY to $11.277M; selling & marketing down 9.2% YoY .
- Adjusted operating profitability: “We are…encouraged by our return to profitability…on an adjusted income (loss) from operations basis, as we continue to rationalize our cost structure” — Interim CFO Michael Schifsky .
What Went Wrong
- Advertising weakness: Ad revenue declined 30% YoY to $0.853M in Q3 .
- Investment mark‑to‑market: $(6.510)M unrealized loss on Kaixin drove net loss despite better operations .
- Internal controls: Management reported continuing material weaknesses in financial reporting processes as of Q3 .

Financial Results

Metric	Q1 2023	Q2 2023	Q3 2023
Revenue ($USD Millions)	$12.149	$12.868	$13.291
Gross Profit ($USD Millions)	$9.426	$10.247	$10.478
Gross Margin %	78%	79.6%	78.8%
Loss from Operations ($USD Millions)	$(3.419)	$(2.831)	$(0.799)
Net (Loss) Income attributable to Company ($USD Millions)	$5.970	$(8.411)	$(6.850)
Basic/Diluted EPS ($USD)	$0.005	$(0.008)	$(0.008)
Adjusted income (loss) from operations ($USD Millions)	N/A	N/A	$0.043

Segment revenue and margins

Segment	Q2 2023 Revenue ($M)	Q2 2023 Cost of Rev ($M)	Q2 2023 Gross Margin ($M)	Q3 2023 Revenue ($M)	Q3 2023 Cost of Rev ($M)	Q3 2023 Gross Margin ($M)
Lofty (real estate SaaS)	$7.213	$1.025	$6.188	$7.262	$1.047	$6.215
Trucker Path (transport SaaS)	$5.638	$1.581	$4.057	$5.995	$1.729	$4.266
Other Operations	$0.017	$0.015	$0.002	$0.034	$0.037	$(0.003)
Total	$12.868	$2.621	$10.247	$13.291	$2.813	$10.478

Key KPIs and liquidity

KPI	Q1 2023	Q2 2023	Q3 2023
Paying subscriptions (Lofty)	3,700	3,695	3,700
Paying subscriptions (Trucker Path)	99,000	97,100	99,200
Lofty purchased seats	39,500	42,500	50,000
Total cash & cash equivalents ($M)	$25.613	$20.799	$45.459
Short-term investments ($M)	$24.267	$19.061	$4.393

Drivers vs prior periods and estimates

YoY revenue +10.8% and sequential +3.3%, driven by subscription growth across both segments; gross margin expansion reflects mix and scale effects .
Operating loss narrowed materially vs Q2 and Q1 on lower opex; selling & marketing and G&A decreased YoY as cost actions took hold .
Reported EPS remained negative due to investment fair value losses on Kaixin .
Analyst consensus (S&P Global) was unavailable for MTBL this quarter; comparison to Street estimates cannot be provided (S&P Global mapping missing).

Guidance Changes

Moatable did not issue formal quantitative guidance in its Q3 press release or 10‑Q. Governance and capital allocation updates include buyback extension and management changes.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2023	Not provided	Not provided	Maintained (no guidance)
Gross Margin %	FY/Q4 2023	Not provided	Not provided	Maintained (no guidance)
OpEx	FY/Q4 2023	Not provided	Opex reductions continuing (qualitative)	Qualitative only
Buyback Authorization	Program	$10.0M (exp. 1/15/2024)	Increased to $15.0M; extended to 12/31/2024	Raised/extended
Management	Q4 2023	CFO departure announced	Interim CFO appointed (Vaco engagement)	Transition

Earnings Call Themes & Trends

No Q3 2023 earnings call transcript was available in the document set; themes are synthesized from 10‑Qs and press releases across Q1–Q3.

Topic	Previous Mentions (Q1 2023)	Previous Mentions (Q2 2023)	Current Period (Q3 2023)	Trend
Subscription growth & seats	Subscriptions up; Lofty seats 39.5k; Trucker Path subs 99k	Subscriptions up; Lofty seats 42.5k; Trucker Path subs 97.1k	Subscriptions up; Lofty seats 50k; Trucker Path subs 99.2k	Improving utilization
Advertising revenue	Mixed; modest growth in Trucker Path	Down YoY; ad softness	Down 30% YoY in Q3	Pressure persists
Gross margin	~78% in Q1	79.6% in Q2	78.8% in Q3	Stable/high 70s
Cost discipline	G&A down; opex moderate	Loss from operations improved	Opex down 7.6% YoY; S&M down 9.2%	Positive
Kaixin investment impact	+$8.276M unrealized gain	$(7.755)M unrealized loss	$(6.510)M unrealized loss	Volatile headwind
Buyback & capital allocation	Program active (Q1 repurchases)	SoftBank repurchase; change of control; ongoing repurchases	Authorization increased/extended	Supportive
Governance & management	N/A	N/A	Interim CFO; new independent director on board	Strengthening oversight
Internal controls	Material weaknesses disclosed	Material weaknesses continue	Material weaknesses continue	Remediation ongoing

Management Commentary

“We are pleased with our continued steady growth in year-over-year revenue and are particularly encouraged by our return to profitability during the third quarter, on an adjusted income (loss) from operations basis, as we continue to rationalize our cost structure while on our path to profitability” — Michael Schifsky, Interim CFO .
“We are pleased to have named Ms. Rebecca Polak to join our Board of Directors and Mr. Michael Schifsky as our interim Chief Financial Officer. Both of them bring a wealth of expertise and experience to our organization.” — Joseph Chen, Chairman & CEO .

Q&A Highlights

No Q3 2023 earnings call transcript was available; Q&A highlights and analyst clarifications could not be sourced from primary transcripts [ListDocuments showed none for 2023; see 0 results in earnings-call-transcript for Q3 2023].

Estimates Context

Wall Street consensus (S&P Global Capital IQ) could not be retrieved due to missing company mapping for MTBL; as a result, comparisons vs Street estimates are unavailable this quarter (tool returned Missing CIQ mapping error).
Implication: Given near‑breakeven operating results and positive adjusted operating income, estimates may need to reflect improving core operations but consider volatility from investment fair value changes .

Key Takeaways for Investors

Core SaaS growth: Subscription revenue growth and seat expansion (Lofty to 50k seats) underpin durable gross margins in the high 70s .
Operating leverage: Opex reductions drove a sharp improvement in operating loss to $(0.799)M, positioning for potential GAAP breakeven absent investment mark‑to‑market impacts .
Non‑operating noise: Kaixin unrealized losses continue to dominate reported EPS; focus on operating income trajectory and adjusted metrics .
Capital allocation: Buyback authorization increased/extended; prior SoftBank repurchase concentrated control with the CEO, simplifying governance dynamics .
Governance upgrade: New independent director and interim CFO add oversight and reporting expertise as internal control remediation proceeds .
Liquidity: Cash rose to $45.459M with $4.393M in short‑term investments, providing runway despite negative operating cash flow YTD .
Near‑term trading lens: Positive adjusted operating income and improved opex should support sentiment; watch ad revenue recovery and any further Kaixin FV swings around prints .

Citations:
Revenue, margins, EPS, segment and KPI data from Q3 2023 10‑Q and Q2/Q1 10‑Qs . Adjusted operating income and highlights from Q3 press release . Buyback extension from Q3 10‑Q . SoftBank repurchase and change of control from Q2 10‑Q . Management changes from October 26, 2023 press release/8‑K . Internal control disclosures from Q1–Q3 10‑Qs .

Moatable, Inc. (MTBL)·Q3 2023 Earnings Summary