Treasure Global Q3 2024 Earnings Call Transcript

Quartr
Provided by Quartr
May 15, 2024

There are 3 speakers on the call.

Operator

Good day, everyone, and welcome to Treasure Global Inc. 3rd Quarter Fiscal Year 20 24 Earnings Call. At this time, participants are in a listen only mode. A question and answer session will follow management's remarks. This conference call is being recorded.

Operator

A replay of today's call will be available on the Investor Relations section of TGL's website and will remain posted there for the next 30 days. I will now hand the call over to Sue Sha, Chief Marketing Officer of Treasure Global Inc. For introduction and the reading of the Safe Harbor statement. Please go ahead. Good day, everyone, and welcome to Treasure Global Inc.

Operator

3rd Quarter Fiscal Year 2024 Earnings Call. At this time, participants are in a listen only mode. A replay of today's call will be available on the Investor Relations section of TGL's website and will remain posted there for the next 30 days. I will now hand the call over to Sue Schua, Chief Marketing Officer of Treasure Global Inc. For introductions and the reading of the Safe Harbor statement.

Operator

Please go ahead.

Speaker 1

Thank you, operator. Good morning, everyone, and welcome to the Treasures Global's 3rd quarter fiscal year 2024 results conference call. With us today, we have our Chief Executive Officer, Sam Teo. 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. Works such as may, should, project, expect, intend, plans, believe, anticipate, hopes, estimates and variations of such words and similar expressions are intended to identify forward looking statements.

Speaker 1

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 ks for the year ended June 30, 2023 and subsequent filings filed with the SEC. Copies of this document is available on the SEC's website at www.sec.gov. Actual 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 is my pleasure to introduce Sam Teo, CEO of PJL.

Speaker 1

Sam, you may now begin.

Speaker 2

Thanks, Su, and good morning and thank you, everyone, for joining us today on our Q3 of fiscal 2024 earnings conference call covering the period ended March 31, 2024. I will start with the highlights of our 3rd quarter business performance followed by our financial results. At Treasure Global, we maintain a positive outlook and grow steadily in this ever changing macro environment. We are proud to say that we have developed a strategy that work in all condition, allowing us to grow regardless of the situation. Our focus remains on delivering value to our customers and consumers, which ultimately enabled us to drive sustainable growth for all our shareholders.

Speaker 2

Before I begin, I'm happy to announce the achievement of the new Zecity premium store, which we've discussed last quarter. This addition has not only broadened our product portfolio, but had also significantly boosted our gross profit margin. This growth perfectly aligned with our strategy vision and path forward. In this quarter, we have successfully filed an S3 and initiated an ATM offering, securing an aggregate offering price of up to US2.99 million dollars This strategic financing effort has provided us with the necessary capital while maintaining flexibility and alignment with our growth strategy. The fund will be put toward driving forward our business initiative, fostering innovation and ultimately creating more value for our shareholder.

Speaker 2

We'll dig deeper into our AI initiative, market expansion effort and key achievements shortly. Additionally, we are pleased to further solidify our competitive advantage in the blockchain market and opening up new avenue for revenue expansion and portfolio growth. Our recent partnership as the exclusive provider of an AI blockchain wallet on TeleClamp places us at the forefront of innovation in the blockchain sector. This strategy decision not only expand our portfolio, but also reinforce our competitive edge by securing the 1st right of refusal. Furthermore, this unlock promising new business opportunity within the blockchain market.

Speaker 2

Let's now proceed to explore the highlight of our Q3. In the Q3 of 2024, Treasure Global remained laser focused on innovation, utilizing artificial intelligence to enhance product and foster better customer connection. Our AI initiative empower us to anticipate customer needs, strengthen market share and identify lucrative opportunity in high profit sector. Expanding on this AI enhancement success, we ventured into meta platform for our live shopping event. Utilizing AI powered robot equipped with advanced language capability, we hosted events in multiple language, breaking down language barrier and engaging thousands of viewer.

Speaker 2

The Malaysian e commerce market projected to reach US20.93 billion dollars by 2029 and Meta platform boosting millions of active users, our presence of meta represents a significant opportunity. The move to Meta Life open up West market with unparalleled reach and engagement potential. With its extensive user base and robust infrastructure, Meta Platform provides an ideal platform to showcase our product and engage with a global audience. By leveraging Meta Life, we aim to not only drive sales, but also enhance brand visibility and customer engagement on a scale previously unseen. Fresh Air Global and AIO Synergy have joined force to revolutionize the AI landscape, capitalizing on the booming digital economy of Southeast Asia, with the Southeast Asia AI market expected to grow significantly at an anticipated annual rate of 17.83% by 2,030.

Speaker 2

Our collaboration is strategically positioned for success. Our strategy at LION highlight our commitment to delivering innovative AI solution and establish a state of the art data center dedicated to AI application, catering to the evolving mix of businesses across various industry. By leveraging our creative expertise and resources, we aim to drive transformative changes in the Southeast Asian and Island scale, positioning ourselves as a key player in this dynamic market. We have taken a significant step forward by announcing a strategic partnership to become the exclusive partner for an AI blockchain model on TeleClamp. This move forward further strengthen our competitive edge in the blockchain industry, securing treasury global position as the leader in innovation with the global Clicktop wallet market projected to grow significantly.

Speaker 2

This collaboration positions us for significant expansion. Treasure Global, strong focus on innovation and partnership put us ahead in the world of the new technology. We are dedicated to exploring and creating more advanced AI to grow our business. Another exciting development is our recent milestone, which we have secured a US2 $1,000,000 marketing contract with Satria, Dunia, Sangir and Bahad. The objective is to showcase premium Coriant Beauty product using ZXcity advanced AI marketing engine.

Speaker 2

This strategy partnership marked a significant achievement for us as we expand ZEC City influence and capability in the beauty sector. By utilizing ZEC City's state of the art AI technology, we are well positioned to increase brand exposure and boost sales, thereby creating a new revenue stream for the company. Moving on. We have got more exciting news about Zexcity. We are talking with the Shanghai Guangxi Chamber of Commerce about running the Malaysia Pavilion.

Speaker 2

This is a bit new because this is a chance to sell great Malaysian product on huge platform like Taobao and Towing. With China live shopping market growing fast and over 1,400,000,000 potential customer, this is an opportunity for us. This move fit perfectly with our goal to make digital shopping better and grow in new market. As I mentioned earlier, the launch of Jet City Premium Store has surpassed the expectation since inception. Leveraging advanced AI tools, the premium store not only exceeded sales expectation but also significantly enhanced our user engagement.

Speaker 2

In just 4 months, the premium store has sold over 6,000 bill salebonanza pack. This notable self achievement highlight the platform effectiveness in driving transaction and enhancing gross profit stream. ZexCity has gained valuable insight into user spending habits and preferences, enabling the premium store to offer highly personalized package tailored to individual user needs and preferences. As a result, the premium store has significantly contributed to our gross profit growth, reflecting its strategy important in driving business expansion and profitability for Treasure Global. In addition to the success of the Zech City Premium Store, we also made by launching them exciting minigame integrated with our AI game creator in Zec City 3 d world.

Speaker 2

This mini game not only enhance the gaming experience for user but also position us to assess the rapidly growing global gaming market, which is projected to reach a revenue of US212 billion dollars by 2026 Through in game purchaser, virtual goods and AI driven marketing strategy, ZexCity 3D World is poised to become a dynamic digital marketplace, capturing a significant share of the booming global gaming industry. And we are proud to share our significant achievement in this quarter, a notable win at the Marketing Interactive Asian E Commerce Award 2023, where Jazz City has been honored to have won the silver trophy for best e commerce solution. This recognition highlight our excellence in the fast changing landscape of online shopping. This achievement demonstrate our firm commitment to innovation and delivering top notch solution that cater to the ever changing mix of our online customer. This quarter, we showcased our dedication to stay ahead of the curve, expanding our reach and putting our customer first.

Speaker 2

Moving forward, we are dedicated to driving growth, sizing opportunity and delivering value to our shareholder. Next, I will now share our financial results for the Q3 of fiscal year 2024. For the quarter, our gross profit reached US217000 dollars marking a substantial increase of 47% compared to the same period last year. This notable improvement is primarily attributable to our ongoing initiative and optimizing spending and capitalizing on higher profit margin stream, while our total revenue for quarter were $1,600,000 compared to $6,700,000 for the Q2 of fiscal 2024, reflecting a decrease of approximately 76%. It is important to view this figure in the context of our strategy shift toward higher margin business channel and long term value creation.

Speaker 2

We are pleased to announce a substantial decrease in our net losses, approximately $1,700,000 compared to approximately $2,900,000 in the Q3 of fiscal year 2023. This strategy positive shift was primarily driven by our focus on optimizing cost management, including reduction in selling and administrative expenses. Our disciplined approach to cost management and operational efficiency has enabled us to achieve significant improvement in our bottom line compared to previous year despite the challenging market condition. As of March 31, 2024, our cash balance was approximately $300,000 compared to a cash balance of approximately $4,100,000 as of March 31, 2023. This position is expected to strengthen following future sales of ATM share.

Speaker 2

Flexity had over 2,690,000 registered users and over 20 27 registered merchants as of March 31, 2024. Quarterly active users for the quarter ending March 31, 2024 were 41,450 5, a total of KRW 400,000 transactions were transacted by our registered users in the quarter ended March 31, 2020 4. Despite the decline in quarterly active user and paid user compared to a previous quarter, we remain confident in the long term growth potential of laxity, especially as we continue to enhance its features and offering to meet the evolving mix of our user and merchant. In summary, our financial results for the Q3 demonstrate significant improvement in gross profit, reduction in net losses and strengthened financial position despite the decrease in overall revenue. We remain committed to executing our strategy initiative and delivering value to our shareholder in the quarter ahead.

Speaker 2

We are also happy to say that we are back in good standing with Nasdaq. This achievement reflect our commitment to upholding the highest standard of corporate governance and transparency. By meeting next step maintenance requirement for this thing, we demonstrate our dedication to operating in according with regulatory standard. This positions us to manage and grow our business more productively, and we also encourage investor interest improving the market ability of our common stock to an even broader range of investor. Looking forward, I have a positive outlook on the development showcased in our quarter 3 fiscal year 2024 highlight, our unwavering focus on innovation and market expansion has led to significant progress.

Speaker 2

In recent months, we have strategically taken intentional steps to reallocate resources away from lower margin offering like our eVoucher product despite the anticipated short term impact on results. We recognize this move as essential for long term gain. This strategy move is aimed to enhance our working capital and reorienting our strategy branding toward reducing dependency on such offering. By doing so, we can channel our resources into the development of high margin solution, empowering us to capture higher margin and drive sustained growth. As we navigate through fiscal 2024, our focus remains squarely on innovation and the development of products and services that promise more profitable growth.

Speaker 2

With an unwavering dedication to excellence and a keen eye on imaging strength, we are well positioned to capitalize on the diverse opportunity that lies ahead. 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 today. I will now close the lines.

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Key Takeaways

  • Zecity Premium Store has sold over 6,000 “Bonanza” packs in four months using AI-driven personalization, significantly boosting gross profit.
  • Raised up to $2.99 M through an S-3 ATM offering to fund growth, innovation, and strategic initiatives while maintaining capital flexibility.
  • Exclusive AI blockchain wallet partnership on TeleClamp secures first right of refusal and positions Treasure Global at the forefront of blockchain innovation.
  • Q3 financial highlights include a 47% year-over-year gross profit increase to $217 K, net loss reduction to $1.7 M, and a strategic shift to higher-margin revenue despite a 76% revenue decline.
  • AI and market expansion efforts include AI-powered Meta live shopping events, a Southeast Asia AI data-center joint venture, and a $2.1 M AI-driven beauty marketing contract.
AI Generated. May Contain Errors.
Earnings Conference Call
Treasure Global Q3 2024
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