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MI

Moatable, Inc. (MTBLY)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered strong topline growth with revenue up 29% year over year to $18.0M, while gross profit rose 25% to $13.4M; operating loss narrowed to $0.97M as management emphasized a continued path to profitability .
  • No formal guidance was provided; key capital allocation actions in the quarter included a special cash dividend of $0.6057 per ADS paid March 27, 2025 .
  • The company disclosed restatements and a material weakness in internal controls tied to sales tax liabilities, later presenting revisions in an Item 2.02 8-K filing on April 24, 2025; remediation is underway .
  • Consensus estimates from S&P Global were unavailable for Q1 2025 (EPS and revenue); results should be evaluated against internal trajectory and prior quarters rather than Street expectations. Values retrieved from S&P Global where noted*.
  • Stock reaction catalysts: ongoing profitability improvements, execution in Lofty and Trucker Path, and clarity around internal-control remediation and capital returns (special dividend).

What Went Well and What Went Wrong

What Went Well

  • Sustained revenue momentum: Q1 revenue increased 29% YoY to $18.0M, extending double-digit growth seen through 2024 and into 2025 .
  • Operating loss improvement: Loss from operations improved to $0.97M in Q1, from $1.43M a year ago, demonstrating better cost discipline despite higher S&M and R&D investments .
  • Management tone focused on growth and productivity: “We are pleased with our continued steady revenue growth over the past thirteen quarters… as we continue to strengthen our productivity and maintain our path to profitability,” said CFO Scott Stone .

What Went Wrong

  • Adjusted EBITDA remained negative at -$0.49M in Q1 2025, deteriorating versus -$0.04M in Q1 2024, reflecting elevated go-to-market and product investment despite operating loss improvement .
  • Internal control material weakness and restatement: management concluded prior financial statements should no longer be relied upon due to sales tax accounting errors; revisions and remediation plans were disclosed (non-reliance 8-K on Apr 4; revisions 8-K on Apr 24) .
  • Cash levels declined sequentially to $24.1M at Q1-end from $31.9M at year-end 2024, partly reflecting the March special dividend; investors should monitor runway and capital allocation balance .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$16.686 $17.461 $18.000
Gross Profit ($USD Millions)$12.633 $13.181 $13.414
EBIT / Loss from Operations ($USD Millions)$(0.235) $(0.169) $(0.974)
Diluted EPS - Continuing Ops ($USD)$0.08*$(0.04)*$(0.05)*
Gross Margin (%)75.71%*75.49%*74.52%*
EBITDA ($USD Millions)$(0.15)*$(0.98)*$(0.79)*

Values with asterisks retrieved from S&P Global.*

Segment/Revenue Mix

MetricQ3 2024Q4 2024Q1 2025
SaaS Revenue ($USD Millions)$16.641 $17.958
Other Services Revenue ($USD Millions)$0.045 $0.042
Total Revenue ($USD Millions)$16.686 $17.461 $18.000

Key KPIs

KPIQ3 2024Q4 2024Q1 2025
Adjusted EBITDA ($USD Millions)$0.252 $0.339 $(0.493)
Cash & Cash Equivalents + Restricted Cash ($USD Millions)$38.4 $31.9 $24.1
Loss from Operations ($USD Millions)$(0.235) $(0.169) $(0.974)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial Guidance (Revenue/EPS/Margins)FY/Q1 2025None providedNone providedMaintained (no formal guidance)
DividendQ1 2025Special cash dividend of $0.6057 per ADS paid Mar 27, 2025New action

No formal quantitative guidance was provided in Q1 materials; capital return via special dividend was the notable change .

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 2025.

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Profitability path (Adjusted EBITDA, operating loss)Q3 2024 Adjusted EBITDA $0.252M; operating loss $(0.235)M . Q4 2024 Adjusted EBITDA $0.339M; operating loss $(0.169)M .Operating loss improved to $(0.974)M; Adjusted EBITDA turned to $(0.493)M as investments increased .Mixed: operating loss narrowing, Adjusted EBITDA negative due to higher OpEx.
Growth execution in Lofty and Trucker PathContinued revenue growth across 2024 press releases .29% YoY revenue growth and 25% YoY gross profit growth .Positive growth momentum.
Capital allocationYear-end cash $31.9M .Special dividend $0.6057/ADS; Q1-end cash $24.1M .Return of capital reduces cash buffer.
Internal control and restatementNon-reliance 8-K (sales tax accounting errors) .Revisions disclosed in Item 2.02 8-K; remediation plan initiated .Remediation in progress; governance under scrutiny.

Management Commentary

  • “We are pleased with our continued steady revenue growth over the past thirteen quarters… as we continue to strengthen our productivity and maintain our path to profitability.” — Scott Stone, CFO, Q1 2025 press release .
  • “Moatable has achieved remarkable growth in revenue, cash flows and productivity… Adjusted EBITDA of $1.7 million profit in 2024 shows significant improvement… as we continue to increase our productivity and maintain our path to profitability.” — Scott Stone, CFO, 2024 annual results .

Q&A Highlights

No Q1 2025 earnings call transcript was found; thus, no Q&A highlights or clarifications are available.

Estimates Context

  • S&P Global consensus for Q1 2025 EPS and revenue was unavailable; number of estimates also unavailable. Values retrieved from S&P Global.*
  • Actual results versus estimates: not applicable due to lack of coverage. Consider internal pacing and sequential/YoY comparisons (see Financial Results tables).

Key Takeaways for Investors

  • Revenue growth remains robust (+29% YoY) with gross profit up 25% YoY, reinforcing traction in Lofty and Trucker Path .
  • Operating loss improvement alongside negative Adjusted EBITDA suggests near-term margin trade-off for growth; monitor S&M and R&D intensity for inflection in 2H’25 .
  • Capital returns (special dividend) and lower cash ($24.1M at Q1-end) sharpen focus on liquidity runway versus growth investments .
  • Internal-control remediation following restatement elevates governance risk; successful remediation is a potential re-rating catalyst .
  • With no Street coverage, results are likely judged on sequential progress and narrative consistency; continued revenue scale and clear margin path are key stock drivers.
  • Watch for segment/product KPIs (subscription growth, pricing, churn) and any formal guidance initiation to frame expectations.
  • Near-term trading: sensitivity to profitability headlines and any updates on remediation; medium-term thesis hinges on converting growth to sustainable positive EBITDA and operating income.