Moatable Reports 28.6% Revenue Growth to $18.0 Million in Q1 2025

Moatable, Inc. reported a significant increase in its financial performance for the first quarter of 2025, with total revenues rising to $18.0 million, up 28.6% from $14.0 million in the same period last year. The company's SaaS revenue, which constitutes the majority of its income, increased from $13.98 million to $17.96 million. Despite this growth, Moatable recorded a net loss of $1.1 million for the quarter, a reduction from a net loss of $3.1 million in the prior year. The decrease in net loss was attributed to improved operational efficiency, with the loss from operations narrowing from $1.4 million to $1.0 million.

In terms of operational metrics, Moatable's customer base showed mixed results. The number of paying subscriptions for Trucker Path increased by 7.1% to 135,000, while Lofty saw a slight decline in its paying subscriptions, dropping to 4,000. The overall engagement metrics reflected a stable user base, although the number of purchased seats for Lofty decreased marginally. The company continues to focus on expanding its market presence, primarily in the U.S., where it generates most of its revenue.

Strategically, Moatable has been active in enhancing its product offerings and operational capabilities. The company has invested in research and development, with expenses rising to $5.8 million, reflecting a 28.9% increase from the previous year. This investment is aimed at improving existing services and developing new features for its SaaS platforms. Additionally, Moatable declared a special cash dividend of approximately $11 million, reflecting its commitment to returning value to shareholders, although this contributed to a net cash outflow of $11.2 million in financing activities for the quarter.

The company's balance sheet showed a decline in total assets from $69.5 million at the end of 2024 to $57.0 million by March 31, 2025, primarily due to a decrease in cash and cash equivalents. Moatable's cash reserves stood at $18.8 million, excluding restricted cash, which is expected to support its operational needs for at least the next twelve months. The company also reported a decrease in total equity from $44.8 million to $32.8 million, influenced by the net loss and dividend payments.

Looking ahead, Moatable remains focused on leveraging its SaaS platforms to capture a larger share of the market. The company anticipates continued growth in subscription revenues, driven by the expansion of its customer base and enhancements to its service offerings. However, it also acknowledges the challenges posed by market conditions and operational costs, which may impact profitability in the near term. The management is committed to addressing internal control weaknesses and enhancing operational efficiencies to support sustainable growth.