Q2 2024 Treasure Global Inc Earnings Call

Participants

Erika Kay; IR; KCSA Strategic Communications

Sam Teo; CEO, Director; Treasure Global Inc

Michael Chan; CFO; Treasure Global Inc

Presentation

Operator

Good day, everyone, and welcome to Treasure Global , Inc. Second Quarter of Fiscal Year 2024 conference call. (Operator Instructions) I will now hand the call over to Erika Kay, Vice President, Investor Relations at KCSA for instructions and the reading of the Safe Harbor statement. Please go ahead.

Erika Kay

Thank you, operator. Good morning, everyone, and welcome to Treasure Global Second Quarter Fiscal 2024 Results Conference Call. With us on today's call, our Sam Teo, Chief Executive Officer; Michael Chan, Chief Financial Officer; and Jeremy Roberts, Independent Director.
Before we begin, I would like to remind you that today's call contains certain forward-looking statements from pressure Global's management made within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended concerning future events, words such as may, should predict, intends, plans, believes anticipates holds, May and variations of such words and similar expressions are intended to identify forward-looking statements.
These statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's Form 10 K for the year ended June 30th, 2023, and subsequent filings filed with the SEC. Copies of this document are available on SEC's website at www.SEC.gov. So results may differ materially from those expressed or implied by such forward-looking statements.
The company undertakes no obligation to update these statements for revisions or changes after the date of this call, except as required by law.
Now it's my pleasure to introduce Sam Teo, Chief Executive Officer of TGI. Sam please go ahead.

Sam Teo

Thanks, Erica, and thank you, everyone, for joining us today on our second quarter of fiscal 2024 earnings conference call for the period ended December 31, 2023. I'm pleased to be with you today to update you on the progress that we are making to our Treasure Global business strategy and to provide you with our results for them quarter.
Before I review some of the exciting innovation that we announced during the quarter, I want to update you on some steps that we took that we believe we have treasure cover to achieve our growth and enhance shareholder value. This action, which has centered on our ability to leverage new cutting edge artificial intelligence capabilities. Further, our strategy to be a leading innovator in our region create new opportunity for profitable growth.
We believe this action has made us a stronger company and will lead to a new stage of growth for Treasure Global supporting our operation growth.
In the second quarter, we announced a public offering raising USD4 million less fee and expenses reduce a portion of the funds to retire the remaining USD2.1 million of convertible notes. These actions helped us to fortify our financial position and to optimize our capital structure, free our funds so that we can continue to develop new innovative products and services for customer.
I shift our focus to higher margin businesses. Much of Treasure global assist is built on our ability to innovate.
Throughout the quarter, we announced several initiatives that utilize artificial intelligence or AI to enhance our product offering and to engage more meaningful with our customer tour, our use of AI, we have been able to anticipate a shift in consumer demand, which has lead to increases in market share for our businesses. This effort has allowed us to identify new business opportunity and allow us to focus our growth on our higher margin products.
On our last call, we announced that we have developed an AI robot to the acquisition of a technology of [10], and we believe this will transform the e-commerce landscape on TikTok by offering dynamic interactive shopping experience for customers across the region.
This innovative approach to product marketing has been successful as these catch the attention of the TikTok community and create a unique shopping experience for viewers by providing a platform that can answer customer carry for our product.
It's used and offer personalized recommendation. This new way of shopping was expected to not only drive increased revenue for Zenuity, our e-commerce subsidiary, but is setting new standards in the live commerce industry later in the quarter, we made history by half a first event as suggested, he became the first business in Malaysia to contact a live commerce section on TikTok. This well attended event desk was co-hosted by human and AI Robot surpassed Internet expedition with over 6,400 viewer.
We were participating infrastructure because of the potential of this innovative technology in reshaping the way consumers interact with brand, we demonstrated our ability to enhance consumers' shopping experience, leading to more consumer engagement and approximately 1,100 purchaser, US was a significant leap forward for digital shopping experience because of its popularity. TikTok, right.
Commerce provides a significant opportunity for treasure global to diversify our revenue stream, a showcase product on z city in a more innovative and engaging manner kicked off status at the world's highest traffic live commerce platform. In the idea stage projects ready to unveil our groundbreaking technology and to showcase SCBA product and services throughout the quarter, we continue to look for a new way to reach consumer and to push the traditional boundary of e-commerce following the success of our first live commerce events.
We hosted another event on meta platform with an AI robot equipped with advanced line question capability to encase with thousands of new work in multiple languages, breaking down language barrier and enhancing accessibility.
This successful event into lucrative market that are reshaping the future of e-commerce with Malaysia, e-commerce market projected to reach USD20.9 billion by 2029. Treasury Global, is strategically positioned to play a low in this anticipate the explanation growth in the second quarter, we unveiled a new executive premium style offering and user experience with diverse package, including top brand for our strategy partner, creating a robust and diversified offering for user powered by our cutting edge technology.
That is actually the previous strong offer innovative feature such as personalized recommendation, a driven discount and real-time transaction tracking, providing user different Ampyra and seamless shopping experience, Premiere Star and to drive transaction as well as increased gross profit for Tri-Shield Crova. We also announced the launch of Bang mini game in ZXTD. 3D., powered by Tricia grow.
But again, clearly that we incorporate the high-powered game creators. We didn't as Zack 3D. 3D. work so that you selected customer and play that 10 game integrator mini games. This strategy will not only enhance the gaming experience for user, but also positions Essity. But it's the rapidly growing USD 200 sharp billion global gaming market by offering in-game purchase and which, of course, our interest into gaming and aligned with our commitment to diversify our revenue stream. I'm proud to say that our reputation for innovation has been recognized during the quarter. Tricia Gruber Verisity received placebo trophy for the best e-commerce solution, marketing, interactive Asia, e-commerce and what 2023 The award recognizes our commitment to excellence in the dynamic landscape of digital commerce.
Finally, we recently announced that we have entered into strategic alliance with AIO synergy, a pioneering IT services developer company.
Through this collaboration, we are focused on reshaping the landscape of the eye by working toward the development of next generation a solution and developing an SOC, especially of the update us in the creator, specifically for application, which will serve as a hub for cutting edge AI, data analytics and the creation of a generator, a human experience.
The initial focus of this partnership is on the Malaysian market where both Czech Republic and AIO. synergy are committed to providing transformative a solution to businesses across our various industry.
We expect to capitalize on the South East Asian market project growth and leverage the region burgeoning interest and investment in AI.
This collaboration on the map, a milestone for the two company, but it is also a significant step towards fostering innovation and technology to accelerate in the South East Asian region and operation plan. Throughout the first half of our fiscal year 2024, we have demonstrated our commitment to developing innovative products and advancing new market opportunity to strategy partnership.
We continue to make progress on our key priority, growing our addressable market and developing innovative new revenue generation opportunity.
We have clearly established ourselves as leader in e-commerce and continue to release innovative services offerings, which are increasing user engagement. I believe this opportunity has positioned treasure global to deliver continued growth and innovation and allow us to pursue higher margin activity.
In closing, I'm pleased with the progress that we are on our business strategy, and I am excited about the opportunity ahead for Changsha scrubber. We continue to prove ourselves as a leading innovator in the region, positioning us to continue as new customer and attract more partner and investor. I believe we are well positioned for the future, and we will continue to innovate and generate more profitable growth.
I will now pass the call over to Michael to discuss our financial results in greater detail.

Michael Chan

Thank you, Sam, and good morning, everyone. Today, I will review our financial results for the second quarter of fiscal year 2024, ended December 31, 2023 compared to the same period in 2022. For the second quarter, total revenue was $6.7 million compared to $20.4 million for the same period last year. Revenue were down year over year as we continued to shift our focus to growing our higher-margin business channel, including case as far as new higher-margin offerings for that city.
As we discussed last quarter, case offering of higher-margin plus increased user engagement and stickiness by providing merchants with a product that they come to rely on for their business needs.
As Sam mentioned, we are also focused on growing was it exited product through our utilization of the lead to increase revenue at higher margins. We believe this action will translate into increased revenue and high margin for the company in the long term.
Gross profit for the second quarter of fiscal 2024 was approximately $346,000 from $234,000 compared to the same period last year, demonstrating that initiative to grow gross profit that we implemented. I've already started two our net loss of exports to nearly $1.2 million for the second quarter of fiscal year 2021 compared to approximately $2 million in the second quarter of fiscal year 2023.
As of December 31, 2023 our cash balance was approximately $1.2 million compared to a cash balance of approximately $4.7 million as of December 31, 2022. As Sam mentioned that Citi had over 2.68 million registered users and over 2027 projects at merchant as of December 31, 2023, quarterly active user for the quarter ending December 31, 2023. 156,979, while paid user were down by 64%, a total of 0.58 million transaction. We'll transact that by our registered user over the current quarter. As we have mentioned, we remain laser focused on increasing gross profit and margin and measures. We have introduced so far are already working and we expect further improvement going forward. You continue to expand sales and high-margin solution for Nexity.
Now I will turn the call back to Sam to highlight our growth strategy.

Sam Teo

Thanks, Michael. I'm excited about the opportunity ahead for treasure drupa. We have made significant progress on our business strategy and remain a leading innovator in the region. The success of our growth initiative has allowed us to add new customer, a new partner and investor to support our business. We raised fund and retire our convertible notes, putting us on solid footing for the future.
I believe we are well positioned for the future and remain focused on achieving profitable growth as part of this focus over the last five months, you have seen us intentionally move away from our lower margin solutions like our new Asha products.
While this naturally as to a decreasing of the registered user and active user base more strategically allow us to reserve more working capital so that we can invest in developing our pace, smartphone and beverage system, our one-stop solution for food and beverage outlets and in our specialty solutions that utilize a allowing us to leverage this technology to capture higher margins.
As we move to fiscal 2024, you will see us continue to innovate and develop new products and services with a focus on solution that will generate more profitable growth.
Thank you again to everyone for joining us on today's call and for your continued support.
This concludes our prepared remarks. I will now ask the operator to close the line. Thank you and have a great day.

Operator

Thank you for joining. I will now close the line.