China's Scienjoy Q1 revenue falls on fewer paying users

Scienjoy Holding

21/05/2026 13:40

Overview

China interactive entertainment firm's Q1 revenue fell yr/yr due to fewer paying users

Company returned to profitability in Q1, posting positive net income and adjusted net income

Lower marketing and administrative expenses supported Q1 profit turnaround

Outlook

Company did not provide specific guidance for the current quarter or full year

Result Drivers

FEWER PAYING USERS - Revenue declined due to a decrease in paying users amid competitive market conditions

COST MANAGEMENT - Profit turnaround attributed to disciplined cost management and reduced operating expenses, especially in sales, marketing, and general administration

GROSS MARGIN PRESSURE - Gross margin narrowed as revenue declined but certain fixed costs did not decrease proportionally

Company press release: ID:nPnVqkz6a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
RMB 282.60 mln
Q1 Adjusted Net Income
RMB 9.40 mln
Q1 Net Income
RMB 7.60 mln
Q1 Gross Profit
RMB 50.20 mln
Q1 Income from Operations
RMB 11.30 mln
Q1 Operating Expenses
RMB 38.80 mln


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)