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TG

TREASURE GLOBAL INC (TGL)·Q4 2024 Earnings Summary

Executive Summary

  • FY24 audit finalized: revenue $22.07M and net loss $(6.59)M; preliminary 8‑K figures were $22.1M revenue and $(6.2)M net loss, later revised in the 10‑K after audit .
  • Q4 FY24 (quarter ended 6/30) slowed sharply: revenue ~$0.29M (FY minus 9M), but gross margin rose to ~31% as the mix shifted away from low‑margin e‑vouchers and rewards were reduced .
  • Management cut marketing/rewards to preserve cash, improving margins but contracting users and sales; going‑concern risk remains given low cash ($0.20M at 6/30) and operating cash outflows .
  • Strategic updates: discontinued TAZTE smart F&B program in June 2024; leadership changes named a new CEO and CFO in June 2024 .
  • No formal guidance or earnings call transcript found; Street consensus unavailable via S&P Global API, so no beat/miss assessment this quarter .

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin improved (company-wide FY24 margin 3.7% vs 0.8% in FY23; Q4 margin ~31%), driven by reduced customer rewards and mix shift away from low‑margin e‑vouchers .
    • Operating expenses fell YoY (selling expense $1.76M in FY24 vs $4.72M in FY23) as the company tightened marketing spend and optimized promotions .
    • Management completed the FY24 audit and provided full-year metrics; 8‑K preliminaries were followed by audited 10‑K results .

  • What Went Wrong

    • Demand/usage weakened: active users declined from 156,979 (Dec) to 26,819 (June); registered user growth slowed (2.68M → 2.70M) .
    • Revenue collapse into Q4: ~$0.29M vs $1.60M in Q3 and $6.71M in Q2 as e‑voucher volumes and marketing incentives were reduced .
    • Liquidity and going concern: cash fell to $0.20M and FY24 operating cash outflow was $(4.71)M; auditor flagged substantial doubt about going concern .

Management quotes:

  • “The decrease in revenue was primarily attributable to our strategic decision to reduce spending on customer rewards and marketing campaigns…” .
  • “Management has determined that there is a significant doubt about its ability to continue as a going concern.” .
  • “Due to insufficient participation… management has decided to discontinue [TAZTE] as of June 2024.” .

Financial Results

Revenue, profitability and margins (quarters chronologically ordered)

MetricQ2 FY24 (3 mo to 12/31/23)Q3 FY24 (3 mo to 3/31/24)Q4 FY24 (3 mo to 6/30/24)
Revenue ($)6,713,805 1,596,129 293,000 = FY24 $22,066,829 − 9M FY24 $21,773,829
Gross Profit ($)345,603 217,006 90,819 = FY24 $816,062 − 9M FY24 $725,243
Gross Margin (%)5.1% 13.6% ~31.0% (= 90,819 / 293,000)
Operating Expenses ($)2,289,806 1,587,560 1,775,224 = FY24 $6,879,044 − 9M FY24 $5,103,820
Operating Income (Loss) ($)(1,089,316) (1,370,554) (1,684,405) = FY24 $(6,062,982) − 9M $(4,378,577)
Other Income (Expense), net ($)(104,192) (342,761) +161,186 = FY24 $(483,926) − 9M $(645,112)
Pre‑Tax Income (Loss) ($)(1,193,508) (1,713,315) (1,523,219) = FY24 $(6,546,908) − 9M $(5,023,689)
Tax Expense ($)(6,006) 0 (18,863) = FY24 $(39,715) − 9M $(20,852)
Net Income (Loss) ($)(1,199,514) (1,713,315) (1,542,082) = FY24 $(6,586,623) − 9M $(5,044,541)

Segment/disaggregated revenue – Q4 FY24 (derived from FY minus 9M)

CategoryQ4 FY24 ($)FY24 ($)9M FY24 ($)
Gift card / E‑voucher(41,075)20,042,191 20,083,266
Health/computer/F&B products336,9931,289,846 952,853
Loyalty program754123,825 123,071
Transaction11,50061,241 49,741
Member subscription(29,710)375,949 405,659
Sublicense14,538173,777 159,239
Total293,00022,066,829 21,773,829

KPIs

MetricQ2 FY24 (as of 12/31/23)Q3 FY24 (as of 3/31/24)Q4 FY24 (as of 6/30/24)
Registered users2,683,850 2,696,255 2,701,189
Active users156,979 41,458 26,819

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY25 / next quarterNone issuedNone issuedN/A (no formal guidance provided in 8‑K/10‑K)
Margins/OpEx/TaxFY25 / next quarterNone issuedNone issuedN/A

Earnings Call Themes & Trends

(No Q4 earnings call transcript located; themes reflect 10‑Q/10‑K commentary.)

TopicPrevious Mentions (Q2–Q3)Current Period (Q4)Trend
Demand, users & engagementActive users fell from 378K (Jun’23) to 157K (Dec’23); marketing/rewards reductions cited Active users down to 26,819; registered user growth minimal Deteriorating engagement
Mix & marginsMargins improved as rewards/marketing were cut; Q3 GM 13.6% Q4 GM ~31% as e‑voucher mix shrank, rewards cut Improving margins via mix
Liquidity/going concernSignificant doubt raised; operations funded by equity/notes Substantial doubt reiterated; cash $0.20M, op cash outflow $(4.71)M FY24 Persistent risk
TAZTE programFree trial through 1H FY24; no revenue Discontinued as of June 2024 De‑prioritized
Corporate actionsPrefunded warrants exercised; convertible note repaid CEO/CFO changes (June 2024) Leadership reset
AI/software initiativesVCI Global agreement; marketable securities loss recorded Intangible amortization ramped; software acquisitions in Mar–May Continued development

Management Commentary

  • “The decrease in revenue was primarily attributable to our strategic decision to reduce spending on customer rewards and marketing campaigns…” (Q3 MD&A) .
  • “There is a significant doubt about its ability to continue as a going concern… management is trying to alleviate [it] through equity financing… other financing… and related party support.” (Q3 10‑Q) .
  • “Due to insufficient participation from merchant clients, management has decided to discontinue [TAZTE] as of June 2024.” (10‑K) .

Q&A Highlights

No Q4 earnings call transcript was found; there were no published analyst Q&A in our document corpus. The analysis above draws on MD&A sections of the 10‑Q/10‑K for qualitative color .

Estimates Context

  • Wall Street consensus (S&P Global) could not be retrieved due to API rate limits this period; we therefore cannot assess beat/miss vs estimates for revenue or EPS [GetEstimates error].
  • Company did not issue formal guidance in the Q4 period; 8‑K provided preliminary FY24 figures only, later finalized in the 10‑K .

Key Takeaways for Investors

  • Revenue trough with improving margins: Q4 revenue collapsed to ~$0.29M, but gross margin improved (~31%) as low‑margin e‑vouchers and costly rewards were reduced .
  • Liquidity remains the gating factor: cash was $0.20M at year‑end and operating cash outflow was $(4.71)M in FY24—raising urgency around funding actions and cost discipline .
  • User engagement under pressure: active users fell markedly through FY24; stabilizing the user base without re‑inflating incentives is the key execution challenge .
  • Strategic reset: discontinuation of TAZTE and leadership changes suggest a refocus; monitor path to monetization of software/AI initiatives and any asset monetization .
  • Operating expense cadence: Q4 OpEx ($1.78M) outpaced the smaller revenue base; tangible reductions in G&A (e.g., intangible amortization run‑rate, professional fees) may be necessary to align with mix .
  • No guidance/limited Street coverage: with no formal outlook and unavailable consensus, stock may be headline‑driven around financing, cost actions, or user trends rather than earnings surprises .
  • Audit complete; preliminary to final deltas modest: FY24 audited revenue $22.07M vs $22.1M prelim; net loss $(6.59)M vs prelim $(6.2)M—investors should anchor on audited 10‑K .

Notes: All Q4 figures not explicitly reported by the company were derived from audited FY24 and 9M FY24 filings (Q4 = FY − 9M), as shown in the tables with source citations.