MicroAlgo Inc (MLGO) Q3 2023 Earnings Report

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MicroAlgo Inc

MLGO

$6.51 -5.65%

Exchange: NASDAQ | Sector: Technology | Industry: Software Infrastructure

Q3 2023

Published: Sep 30, 2023

Earnings Highlights

Revenue of $21.67M up 0% year-over-year
EPS of $-3.34 decreased by 563.9% from previous year
Gross margin of 29.5%
Net income of -15.83M
"We are committed to advancing our algorithm solutions despite short-term losses which stem from heightened R&D and market competition." - CEO

MLGO

MicroAlgo Inc

Period Q3 2023

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

In Q3 2023, MicroAlgo Inc (Ticker: MLGO) reported a revenue of $21.67 million, marking a 7.06% increase from the previous quarter. However, the company faced substantial challenges, with a net loss of over $15.83 million and an EPS of -$3.34, representing significant year-on-year and quarter-on-quarter declines. Management emphasized ongoing investment in research and development to enhance their algorithm solutions, even amidst market headwinds in the technology sector. Investors should be alert to the company's liquidity position bolstered by cash reserves while remaining cautious of persistent losses that may hinder growth prospects.

Key Performance Indicators

Revenue

Stable

21.67M

QoQ: 7.06% | YoY: N/A

Gross Profit

Stable

6.40M

29.50% margin

QoQ: -4.13% | YoY: N/A

Operating Income

Decreasing

-7.65M

QoQ: -391.45% | YoY: -7 546.80%

Net Income

Decreasing

-15.83M

QoQ: -286.59% | YoY: -3 753.08%

EPS

Decreasing

-3.34

QoQ: -259.14% | YoY: -563.89%

Revenue Trend

Margin Analysis

Financial Highlights

### Financial Performance Metrics
- Revenue: $21.67 million, up 7.06% QoQ, indicating potential growth amidst developing market conditions.
- Net Loss: $15.83 million, a drastic deterioration compared to -$4.09 million in Q2 2023.
- Operating Income: -$7.65 million, with an alarming 391.45% increase in quarterly losses, reflecting operational inefficiencies.
- Cash at End of Period: $43.45 million, providing a cushion amidst losses but should be continuously monitored.
- Current Ratio: 4.79, highlighting excellent liquidity, yet a need for effective cash utilization.
- Gross Profit Margin: 29.5%, down from 33.0% QoQ, showing compressed profitability margins likely due to increased costs.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	21.67M	N/A	7.06%
Gross Profit	6.40M	N/A	-4.13%
Operating Income	-7.65M	-7 546.80%	-391.45%
Net Income	-15.83M	-3 753.08%	-286.59%
EPS	-3.34	-563.89%	-259.14%

Key Financial Ratios

Gross Profit Margin

Fair

29.50%

Gross profit margin is moderate, room for improvement in cost management

Operating Profit Margin

Weak

-0.35%

Operating margin is below industry norms, profitability concerns

Net Profit Margin

Weak

-0.73%

Net profit margin is below industry norms, profitability concerns

Return on Assets

Weak

-0.28%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

-0.36%

Return on equity suggests inefficient capital allocation

Current Ratio

Strong

4.79

Current ratio indicates excellent liquidity and financial flexibility

Debt to Equity

Conservative

0.04

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Negative

-2.14x

Negative earnings make P/E ratio not meaningful

Price to Book

Premium

3.08x

Trading at premium to book value, reflects strong intangibles or growth

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2024	19.98	0.04	-1.3%	View
Q1 2024	20.11	0.04	-76.9%	View
Q4 2023	22.29	-3.44	+25.0%	View
Q3 2023	21.67	-3.34	+0.0%	View
Q2 2023	20.24	-0.93	-28.3%	View

MicroAlgo Inc (MLGO) Q3 2023 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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