Executive Summary
Xuan Wu Cloud Technology delivered a revenue decline in QQ3 2024, with reported revenue of 251.9 million CNY, down 32.8% year over year and 22.2% quarter over quarter. Despite the top-line weakness, the company achieved a positive operating income of 3.49 million CNY and a net income of 6.68 million CNY, indicating an ongoing transformation toward better operating leverage. Gross margin remains modest at 21.54%, but showed QoQ improvement, underscoring initial efficiency gains from cost discipline and product mix shifts. Free cash flow remained negative at approximately -2.37 million CNY, and operating cash flow was a negative -2.35 million CNY, signaling working-capital challenges and ongoing investments typical of a growth-oriented SaaS business in its early scale.
Key Performance Indicators
QoQ: -22.15% | YoY:-32.76%
QoQ: 270.03% | YoY:114.37%
QoQ: 307.39% | YoY:125.86%
QoQ: 274.60% | YoY:123.85%
Key Insights
Revenue: 251,904,000 CNY (YoY -32.76%, QoQ -22.15%). Gross Profit: 54,264,000 CNY (YoY +4.60%, QoQ +7.24%), Gross Margin: 21.54%. Operating Income: 3,489,000 CNY (YoY +114.37%, QoQ +270.03%). Net Income: 6,679,000 CNY (YoY +125.86%, QoQ +307.39%). EBITDA: 4,296,000 CNY (EBITDA Margin: 1.71%). EPS: 0.011 CNY (YoY +123.85%, QoQ +274.60%). Net Cash from Operating Activities: -2,354,000 CNY. Free Cash Flow: -2,368,000 CNY. Cash and Short-Term Investments: 104,087,000 CNY. Total Current Assets: 104,0...
Financial Highlights
Revenue: 251,904,000 CNY (YoY -32.76%, QoQ -22.15%). Gross Profit: 54,264,000 CNY (YoY +4.60%, QoQ +7.24%), Gross Margin: 21.54%. Operating Income: 3,489,000 CNY (YoY +114.37%, QoQ +270.03%). Net Income: 6,679,000 CNY (YoY +125.86%, QoQ +307.39%). EBITDA: 4,296,000 CNY (EBITDA Margin: 1.71%). EPS: 0.011 CNY (YoY +123.85%, QoQ +274.60%). Net Cash from Operating Activities: -2,354,000 CNY. Free Cash Flow: -2,368,000 CNY. Cash and Short-Term Investments: 104,087,000 CNY. Total Current Assets: 104,087,000 CNY. Total Liabilities: -326,553,000 CNY. Total Stockholders' Equity: 326,553,000 CNY. Note: Several balance sheet lines show sign anomalies in the data; readers should treat balance sheet figures with caution and await audited reconciliation.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
251.90M |
-32.76% |
-22.15% |
| Gross Profit |
54.26M |
4.60% |
7.24% |
| Operating Income |
3.49M |
114.37% |
270.03% |
| Net Income |
6.68M |
125.86% |
307.39% |
| EPS |
0.01 |
123.85% |
274.60% |
Key Financial Ratios
operatingProfitMargin
1.39%
Management Commentary
No QQ3 2024 earnings call transcript was provided in the source data, so there are no management quotes or theme-based highlights available. Once transcripts are supplied, we will extract quotes by themes (strategy, operations, market conditions) and attribute them to management.
Forward Guidance
There is no formal forward guidance disclosed for QQ3 2024. Given the revenue contraction and a path to margin stabilization, management would likely emphasize strengthening ARR through deeper penetration in core verticals (FMCG, fintech, telecom, and government) and improving operating leverage. Our view: achievable only if revenue stabilization occurs and cost discipline translates into meaningful cash conversion improvements. Investors should monitor: (1) pipeline health and win-rate in flagship verticals, (2) customer retention and average revenue per user, (3) pricing discipline and module uptake, and (4) working-capital management and collections timing.