Technology
Squarespace Announces Fourth Quarter and Full Year 2023 Financial Results and $500 Million Share Repurchase Authorization
Published
3 years agoon
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Revenue Increased 18% in the Fourth Quarter and 17% for the Full Year 2023, Topping $1 Billion
Squarespace to Host Investor Day on May 15, 2024
NEW YORK, Feb. 28, 2024 /PRNewswire/ — Squarespace, Inc. (NYSE: SQSP), the design-driven platform helping entrepreneurs build brands and businesses online, today announced results for the fourth quarter and year ended December 31, 2023.
“Squarespace surpassed $1 billion in revenue for the first time in its 20-year history in 2023, driven by new customer growth across markets and strong retention, which speaks to our robust product offering,” said Anthony Casalena, Founder & CEO of Squarespace. “During 2023 we also made important strides in enhancing the foundation of our long-term growth through our acquisition of Google Domains, the launch of Squarespace Payments, and key product and feature introductions including new AI capabilities that expand our ecosystem and broaden accessibility to entrepreneurs wherever they are on their journey. Entering our third decade, we are in a strong position to capitalize across our core verticals of enabling small business, commerce and international expansion.”
“Squarespace delivered a record fourth quarter that exceeded our expectations across the board,” said Nathan Gooden, CFO of Squarespace. “We are combining increased scale and profitability with consistent execution and a relentless focus on innovation for entrepreneurs to set a strong foundation for sustainable growth and value creation. We view share repurchases as an integral part of our capital allocation strategy and the $500 million authorization announced today underscores the strong financial momentum in our business.”
Fourth Quarter 2023 Financial Highlights
Total revenue grew 18% year over year to $270.7 million in the fourth quarter, compared with $228.8 million in the fourth quarter of 2022, and 16% in constant currency.Presence revenue grew 20% year over year to $188.4 million and 18% in constant currency.Commerce revenue grew 14% year over year to $82.3 million and 13% in constant currency.Net income totaled $5.3 million, compared with a net loss of $234.0 million in the fourth quarter 2022. The 2022 result included a $225.2 million non-cash goodwill impairment charge. Excluding the impairment charge, net loss for the fourth quarter of 2022 was $8.8 million.Earnings per share totaled $0.04 based on 136,153,002 basic and 139,387,350 dilutive weighted average shares in the fourth quarter, compared with a loss per share of $1.72 based on 136,340,283 basic and dilutive weighted average shares in the fourth quarter of 2022.Cash flow from operating activities increased 56% to $61.1 million for the three months ended December 31, 2023, compared with $39.1 million for the three months ended December 31, 2022.Total bookings grew 23% year over year to $286.1 million in the fourth quarter, compared to $232.1 million in the fourth quarter of 2022.Unlevered free cash flow increased 57% to $65.0 million representing 24% of total revenue for the three months ended December 31, 2023, compared with $41.5 million for the three months ended December 31, 2022.Adjusted EBITDA increased to $64.7 million in the fourth quarter, compared with $63.1 million in the fourth quarter of 2022.
Full Year 2023 Financial Highlights
Total revenue grew 17% year over year to $1,012.3 million in 2023, compared with $867.0 million in 2022, and 16% in constant currency.Presence revenue grew 18% year over year to $704.3 million and 17% in constant currency.Commerce revenue grew 14% year over year to $308.0 million and 14% in constant currency.Net loss was $7.1 million, compared with a net loss of $252.2 million in 2022. The 2022 result included a $225.2 million non-cash goodwill impairment charge. Excluding the impairment charge, net loss for the full year 2022 was $27.1 million.Loss per share of $0.05 based on 135,531,363 basic and dilutive weighted average shares in 2023, compared with a loss per share of $1.82 based on 138,409,491 basic and dilutive weighted average shares in 2022.Cash flow from operating activities increased 41% to $231.1 million in 2023, compared with $164.2 million in 2022.Total bookings grew 19% year over year to $1,075.1 million in 2023, compared to $906.1 million in 2022.Unlevered free cash flow increased 46% to $241.0 million representing 24% of total revenue in 2023, compared with $165.6 million in 2022.Adjusted EBITDA increased to $235.4 million in 2023, compared with $147.5 million in 2022.Cash and cash equivalents at year-end 2023 of $257.7 million; total debt was $568.8 million, of which $49.0 million is current, debt net of cash and investments totaled $311.1 million.Total unique subscriptions increased 10% year over year to over 4.6 million in 2023, compared to 4.2 million in 2022.Average revenue per unique subscription (“ARPUS”) increased 9% year over year to $228.02 in 2023, compared to $209.16 in 2022.Annual run rate revenue (“ARRR”) grew 19% year over year to $1,105.7 million in 2023, compared to $931.7 million in 2022.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
2023 Business Highlights
Product Innovation
Squarespace provides superior design and ease of use technology for entrepreneurs everywhere. Our passion for innovation drove all areas of our business. In 2023, the Company:
Relaunched Squarespace Domains with a more complete domain management experience for domain-first customers following our acquisition of Google Domains Assets.Launched Squarespace Payments, which fully integrates with our customers’ online stores to accept fast and secure payments and provides a seamless purchase experience for their customers all in one place.Unveiled Squarespace Blueprint, our guided website design system that provides professionally-curated layouts and styling options.Advanced Acuity Scheduling’s platform technologies and introduced new branding to help streamline the client booking experience with a centralized dashboard, mobile app tools, and payment features.Invested in Squarespace AI to make it easier than ever for users to generate custom content. Generative AI integrations help populate websites, email campaigns, and commerce store descriptions, enabling customers to efficiently publish and specialize content for their brand identity.Released our annual compilation of new products and features, Squarespace Refresh, where we showcased new tools spanning commerce, client invoicing, courses, email marketing, enterprise customer collaboration, and more.Enhanced Tock’s User System with a new iOS app and new reservation features, and integrated Reserve with Google to help Tock customers increase their visibility and drive diners to their businesses.Established a partnership with SoundCloud to bring SoundCloud Next Pro artists the opportunity to create a beautiful website with unique, music-themed domains.
Marketing & Brand
Our marketing investments, design-centric ethos, and go-to-market channels bolster our brand recognition and keep Squarespace top of mind for new audiences. This year, Squarespace:
Continued to globalize our product suite by increasing our currency options by 5x.Introduced the second edition of Squarespace Collection (formerly Squarespace Icons) with Magnum Photos, where we partnered with six world renowned photographers to create signature website designs inspired by each photographer’s creativity and built on our website editor, Fluid Engine™.Teamed up with Adam Driver for our 9th Big Game campaign, “The Singularity,” where we honored Squarespace’s founding history as a pioneer in website building.Hosted our second Circle Day where we engaged thousands of members of our Circle partner program from around the world. Members shared advice and strategies on how to leverage strengths, skills, and connections to expand every web designer’s professional toolkit.Received multiple Fast Company awards, including Fast Company’s Most Innovative Companies and Innovation by Design, won two Webby Awards and our Big Game commercial won top honors from ADC, AICP, Cannes Lions, Ciclope, D&AD and the One Show.
Corporate
Squarespace is focused on creating and delivering value to entrepreneurs, partners, and investors. In 2023, the Company:
Acquired Google’s Domains business, representing millions of domains, and established an exclusive reseller agreement for any customer purchasing a domain along with their Google Workspace subscription from Google directly.Won multiple awards recognizing the excellence of our organization including Comparably’s Best Places to Work in New York.Celebrated our 20th anniversary; across two decades the Squarespace platform has been used by millions to build beautiful brands and businesses online.Returned approximately $26.0 million to shareholders under our share repurchase program as of December 31, 2023, which represents approximately 1.3 million shares.
Share Repurchase Program
Squarespace’s board of directors authorized a general share repurchase program of the Company’s Class A common stock of up to $500 million with no fixed expiration. These Class A common stock repurchases may occur in the open market, through privately negotiated transactions, through block purchases, other purchase techniques including the establishment of one or more plans under Rule 10b5-1 of the Securities Exchange Act of 1934 or by any combination of such methods. The timing and actual amount of shares repurchased will depend on a variety of different factors and may be modified, suspended or terminated at any time at the discretion of the board of directors.
Outlook & Guidance
For the first quarter of fiscal year 2024, Squarespace currently expects:
Revenue of $274 million to $277 million, or year-over-year growth of 16% to 17%.Non-GAAP unlevered free cash flow of $83 million to $86 million. This is the result of:Cash flow from operating activities of $77 million to $81 million, minusCapital expenditures, expected to be approximately $2 million to $3 million; plusCash paid for interest expense net of associated tax benefit, expected to be approximately $8 million.
For the full fiscal year 2024, Squarespace currently expects:
Revenue of $1,170 million to $1,190 million, or year-over-year growth of 16% to 18%, which includes contributions in the range of $85 million to $88 million related to our acquisition of Google Domains Assets.Non-GAAP unlevered free cash flow of $290 million to $310 million. This is the result of:Cash flow from operating activities of $266 million to $288 million, minusCapital expenditures, expected in the range of $4 million to $6 million; plusCash paid for interest expense net of associated tax benefit, expected to be approximately $28 million.
Webcast Conference Call & Shareholder Letter Information
Squarespace will host a conference call on February 28, 2024 at 8:30 a.m. ET to discuss its financial results. A live webcast of the event will be available in the Events & Presentations section of the Squarespace Investor Relations website. An archived replay of the webcast will be available following the conclusion of the call. Additionally, we invite you to read our shareholder letter available on our Investor Relations website.
Squarespace to Host Investor Day
Squarespace will host an Investor Day on May 15, 2024 in New York City. A live webcast of the event will be available in the Events & Presentations section of the Squarespace Investor Relations website. Interested investors and analysts are encouraged to email investors@squarespace.com for an invitation.
Non-GAAP Financial Measures
Revenue growth in constant currency is being provided to increase transparency and align our disclosures with companies in our industry that receive material revenues from international sources. Revenue constant currency has been adjusted to exclude the effect of year-over-year changes in foreign currency exchange rate fluctuations. We believe providing this information better enables investors to understand our operating performance irrespective of currency fluctuations.
We calculate constant currency information by translating current period results from entities with foreign functional currencies using the comparable foreign currency exchange rates from the prior fiscal year. To calculate the effect of foreign currency translation, we apply the same weighted monthly average exchange rate as the comparative period. Our definition of constant currency may differ from other companies reporting similarly named measures, and these constant currency performance measures should be viewed in addition to, and not as a substitute for, our operating performance measures calculated in accordance with GAAP.
Adjusted EBITDA is a supplemental performance measure that our management uses to assess our operating performance. We calculate adjusted EBITDA as net income/(loss) excluding interest expense, other income/(loss), net (provision for)/benefit from income taxes, depreciation and amortization, stock-based compensation expense and other items that we do not consider indicative of our ongoing operating performance.
Unlevered free cash flow is a supplemental liquidity measure that Squarespace’s management uses to evaluate its core operating business and its ability to meet its current and future financing and investing needs. Unlevered free cash flow is defined as cash flow from operating activities, including one-time expenses related to Squarespace’s direct listing, less cash paid for capital expenditures increased by cash paid for interest expense net of the associated tax benefit.
Adjusted EBITDA, unlevered free cash flow and revenue constant currency are not prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and have important limitations as an analytical tool. Non-GAAP financial measures are supplemental, should only be used in conjunction with results presented in accordance with GAAP and should not be considered in isolation or as a substitute for such GAAP results.
Further information on these non-GAAP items and reconciliation to their closest GAAP measure is provided below under, “Reconciliation of Non-GAAP Financial Measures.”
Definitions of Key Operating Metrics
On September 7, 2023, we closed an asset purchase agreement between us and Google LLC (“Google”) to acquire, among other things, Google’s domain assets (the “Google Domains Asset Acquisition “). Unique subscriptions and average revenue per unique subscription do not account for single domain subscriptions originally sold by Google as a part of the Google Domains Asset Acquisition (the “Acquired Domain Assets”).
Annual run rate revenue (“ARRR”). We calculate ARRR as the monthly revenue from subscription fees and revenue generated in conjunction with associated fees (fees taken or assessed in conjunction with commerce transactions) in the last month of the period multiplied by 12. We believe that ARRR is a key indicator of our future revenue potential. However, ARRR should be viewed independently of revenue, and does not represent our GAAP revenue on an annualized basis, as it is an operating metric that can be impacted by subscription start and end dates and renewal rates. ARRR is not intended to be a replacement or forecast of revenue.
Unique subscriptions represent the number of unique sites, standalone scheduling subscriptions, Unfold (social) and hospitality subscriptions, as of the end of a period. A unique site represents a single subscription and/or group of related subscriptions, including a website subscription and/or a domain subscription, and other subscriptions related to a single website or domain. Every unique site contains at least one domain subscription or one website subscription. For instance, an active website subscription, a custom domain subscription and a Google Workspace subscription that represent services for a single website would count as one unique site, as all of these subscriptions work together and are in service of a single entity’s online presence. Unique subscriptions do not account for one-time purchases in Unfold or for hospitality services nor do they account for our Acquired Domain Assets. The total number of unique subscriptions is a key indicator of the scale of our business and is a critical factor in our ability to increase our revenue base.
Average revenue per unique subscription (“ARPUS”). We calculate ARPUS as the total revenue during the preceding 12-month period divided by the average of the number of total unique subscriptions at the beginning and end of the period. ARPUS does not account for Acquired Domain Assets or the revenue from Acquired Domain Assets. We believe ARPUS is a useful metric in evaluating our ability to sell higher-value plans and add-on subscriptions.
Total bookings represents cash receipts for all subscriptions purchased, as well as payments due under the terms of contractual agreements for obligations to be fulfilled.
Gross merchandise value (“GMV”) represents the value of physical goods, content and time sold, including hospitality services, net of refunds, on our platform over a given period of time.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding Squarespace’s future operating results and financial position, including for its first fiscal quarter ending March 31, 2024 and its fiscal year ending December 31, 2024. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to: Squarespace’s ability to attract and retain customers and expand their use of its platform; Squarespace’s ability to anticipate market needs and develop new solutions to meet those needs; Squarespace’s ability to improve and enhance the functionality, performance, reliability, design, security and scalability of its existing solutions; Squarespace’s ability to compete successfully in its industry against current and future competitors; Squarespace’s ability to manage growth and maintain demand for its solutions; Squarespace’s ability to protect and promote its brand; Squarespace’s ability to generate new customers through its marketing and selling activities; Squarespace’s ability to successfully identify, manage and integrate any existing and potential acquisitions or achieve the expected benefits of such acquisitions; Squarespace’s ability to hire, integrate and retain highly skilled personnel; Squarespace’s ability to adapt to and comply with existing and emerging regulatory developments, technological changes and cybersecurity needs; Squarespace’s compliance with privacy and data protection laws and regulations as well as contractual privacy and data protection obligations; Squarespace’s ability to establish and maintain intellectual property rights; Squarespace’s ability to manage expansion into international markets; and the expected timing, amount, and effect of Squarespace’s share repurchases. It is not possible for Squarespace’s management to predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Squarespace may make. In light of these risks, uncertainties, and assumptions, Squarespace’s actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results are included in Squarespace’s filings with the Securities and Exchange Commission. Except as required by law, Squarespace assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
About Squarespace
Squarespace (NYSE: SQSP) is a design-driven platform helping entrepreneurs build brands and businesses online. We empower millions in more than 200 countries and territories with all the tools they need to create an online presence, build an audience, monetize, and scale their business. Our suite of products range from websites, domains, ecommerce, and marketing tools, as well as tools for scheduling with Acuity, creating and managing social media presence with Bio Sites and Unfold, and hospitality business management via Tock. For more information, visit www.squarespace.com.
Contacts
Investors
investors@squarespace.com
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
Revenue
$ 270,718
$ 228,812
$ 1,012,336
$ 866,972
Cost of revenue(1)
69,650
40,106
207,520
152,655
Gross profit
201,068
188,706
804,816
714,317
Operating expenses:
Research and product development(1)
61,715
56,828
242,188
227,297
Marketing and sales(1)
91,513
66,154
349,574
322,051
General and administrative(1)
29,922
37,942
129,326
151,620
Impairment charge
—
225,163
—
225,163
Total operating expenses
183,150
386,087
721,088
926,131
Operating income/(loss)
17,918
(197,381)
83,728
(211,814)
Interest expense
(10,718)
(7,230)
(36,768)
(18,207)
Other (loss)/income, net
(4,163)
(9,567)
3,362
5,030
Income/(loss) before benefit from/(provision for) income
taxes
3,037
(214,178)
50,322
(224,991)
Benefit from/(provision for) income taxes
2,219
(19,784)
(57,403)
(27,230)
Net income/(loss)
$ 5,256
$ (233,962)
$ (7,081)
$ (252,221)
Net income/(loss) per share, basic and dilutive
$ 0.04
$ (1.72)
$ (0.05)
$ (1.82)
Weighted-average shares used in computing net income/
(loss) per share, basic
136,153,002
136,340,283
135,531,363
138,409,491
Weighted-average shares used in computing net income/
(loss) per share, dilutive
139,387,350
136,340,283
135,531,363
138,409,491
(1) Includes stock-based compensation as follows:
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
Cost of revenue
$ 1,451
$ 944
$ 5,536
$ 3,414
Research and product development
13,868
11,099
54,806
42,237
Marketing and sales
2,921
2,450
10,856
8,696
General and administrative
9,587
12,989
36,551
48,186
Total stock-based compensation
$ 27,827
$ 27,482
$ 107,749
$ 102,533
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(unaudited)
December 31, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$ 257,702
$ 197,037
Restricted cash
36,583
35,583
Investment in marketable securities
—
31,757
Accounts receivable
24,894
10,748
Due from vendors
6,089
4,442
Prepaid expenses and other current assets
48,947
48,326
Total current assets
374,215
327,893
Property and equipment, net
58,211
51,633
Operating lease right-of-use assets
77,764
86,824
Goodwill
210,438
210,438
Intangible assets, net
190,103
42,808
Other assets
11,028
10,921
Total assets
$ 921,759
$ 730,517
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Current liabilities:
Accounts payable
$ 12,863
$ 12,987
Accrued liabilities
99,435
64,360
Deferred revenue
333,191
269,689
Funds payable to customers
42,672
38,845
Debt, current portion
48,977
40,758
Operating lease liabilities, current portion
12,640
11,514
Total current liabilities
549,778
438,153
Deferred income taxes, non-current portion
1,039
788
Debt, non-current portion
519,816
473,167
Operating lease liabilities, non-current portion
97,714
110,169
Other liabilities
13,764
11,231
Total liabilities
1,182,111
1,033,508
Commitments and contingencies
Redeemable convertible preferred stock, par value of $0.0001; zero shares authorized as of December 31,
2023 and 2022, respectively; zero shares issued and outstanding as of December 31, 2023 and 2022,
respectively
—
—
Preferred stock, par value of $0.0001; 100,000,000 shares authorized as of December 31, 2023 and 2022,
respectively; zero shares issued and outstanding as of December 31, 2023 and 2022, respectively
—
—
Stockholders’ deficit:
Class A common stock, par value of $0.0001; 1,000,000,000 shares authorized as of December 31, 2023
and 2022, respectively; 88,545,012 and 87,754,534 shares issued and outstanding as of December 31, 2023
and 2022, respectively
9
8
Class B common stock, par value of $0.0001; 100,000,000 shares authorized as of December 31, 2023 and
2022, respectively; 47,844,755 shares issued and outstanding as of December 31, 2023 and 2022,
respectively
5
5
Class C common stock (authorized March 15, 2021), par value of $0.0001; zero shares authorized as of
December 31, 2023 and 2022, respectively; zero shares issued and outstanding as of December 31, 2023
and 2022, respectively
—
—
Class C common stock (authorized May 10, 2021), par value of $0.0001; 1,000,000,000 shares authorized
as of December 31, 2023 and 2022, respectively; zero shares issued and outstanding as of December 31,
2023 and 2022, respectively
—
—
Additional paid in capital
924,634
875,737
Accumulated other comprehensive loss
(843)
(1,665)
Accumulated deficit
(1,184,157)
(1,177,076)
Total stockholders’ deficit
(260,352)
(302,991)
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit
$ 921,759
$ 730,517
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Years Ended December 31,
2023
2022
OPERATING ACTIVITIES:
Net loss
$ (7,081)
$ (252,221)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
43,927
31,617
Stock-based compensation
107,749
102,533
Impairment charge
—
225,163
Deferred income taxes
251
788
Non-cash lease (income)/expense
(2,286)
2,227
Other
831
832
Changes in operating assets and liabilities:
Accounts receivable and due from vendors
(15,678)
(5,461)
Prepaid expenses and other current assets
(458)
3,699
Accounts payable and accrued liabilities
33,519
(2,215)
Deferred revenue
61,364
39,464
Funds payable to customers
3,827
8,707
Other operating assets and liabilities
5,152
9,086
Net cash provided by operating activities
231,117
164,219
INVESTING ACTIVITIES:
Proceeds from the sale and maturities of marketable securities
39,664
27,193
Purchases of marketable securities
(7,824)
(27,681)
Cash paid for acquisitions, net of acquired cash
(176,721)
—
Purchase of property and equipment
(16,998)
(11,543)
Net cash used in operating activities
(161,879)
(12,031)
FINANCING ACTIVITIES:
Borrowings on Term Loan
99,444
—
Payments of debt issuance costs
(637)
—
Principal payments on debt
(44,867)
(13,586)
Payments for repurchase and retirement of Class A common stock
(25,989)
(120,193)
Taxes paid related to net share settlement of equity awards
(36,366)
(21,268)
Proceeds from exercise of stock options
228
2,211
Net cash used in financing activities
(8,187)
(152,836)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
614
(412)
Net increase/(decrease) in cash, cash equivalents and restricted cash
61,665
(1,060)
Cash, cash equivalents and restricted cash at the beginning of the period
232,620
233,680
Cash, cash equivalents and restricted cash at the end of the period
$ 294,285
$ 232,620
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents
$ 257,702
$ 197,037
Restricted cash
36,583
35,583
Cash, cash equivalents and restricted cash at the end of the period
$ 294,285
$ 232,620
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
Cash paid during the year for interest
$ 35,668
$ 17,088
Cash paid during the year for income taxes, net of refunds
$ 41,747
$ 10,664
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchases of property and equipment included in accounts payable and accrued liabilities
$ 129
$ 1,784
Accrued taxes related to net share settlement of equity awards
$ 377
$ 176
Non-cash leasehold improvements
$ —
$ (5,864)
Capitalized stock-based compensation
$ 3,940
$ 980
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(in thousands)
(unaudited)
The following tables reconcile each non-GAAP financial measure to its most directly comparable GAAP financial
measure:
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
Net income/(loss)
$ 5,256
$ (233,962)
$ (7,081)
$ (252,221)
Interest expense
10,718
7,230
36,768
18,207
(Benefit from)/provision for income taxes
(2,219)
19,784
57,403
27,230
Depreciation and amortization
18,952
7,844
43,927
31,617
Stock-based compensation expense
27,827
27,482
107,749
102,533
Other loss/(income), net
4,163
9,567
(3,362)
(5,030)
Impairment charge
—
225,163
—
225,163
Adjusted EBITDA
$ 64,697
$ 63,108
$ 235,404
$ 147,499
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
Cash flows from operating activities
$ 61,090
$ 39,102
$ 231,117
$ 164,219
Cash paid for capital expenditures
(3,857)
(2,691)
(16,998)
(11,543)
Free cash flow
$ 57,233
$ 36,411
$ 214,119
$ 152,676
Cash paid for interest, net of the associated tax
benefit
7,788
5,105
26,894
12,874
Unlevered free cash flow
$ 65,021
$ 41,516
$ 241,013
$ 165,550
December 31, 2023
December 31, 2022
Total debt outstanding
$ 568,793
$ 513,925
Less: total cash and cash equivalents and marketable securities
257,702
228,794
Total net debt
$ 311,091
$ 285,131
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
Revenue, as reported
$ 270,718
$ 228,812
$ 1,012,336
$ 866,972
Revenue year-over-year growth rate, as reported
18.3 %
10.3 %
16.8 %
10.6 %
Effect of foreign currency translation ($)(1)
$ 4,664
$ (8,252)
$ 7,010
$ (28,318)
Effect of foreign currency translation (%)(1)
2.0 %
(4.0) %
0.8 %
(3.6) %
Revenue constant currency growth rate
16.3 %
14.3 %
16.0 %
14.2 %
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
Commerce revenue, as reported
$ 82,285
$ 71,983
$ 307,987
$ 269,672
Revenue year-over-year growth rate, as reported
14.3 %
12.1 %
14.2 %
17.5 %
Effect of foreign currency translation ($)(1)
$ 796
$ (1,451)
$ 1,204
$ (4,960)
Effect of foreign currency translation (%)(1)
1.1 %
(2.3) %
0.4 %
(2.2) %
Commerce constant currency growth rate
13.2 %
14.4 %
13.8 %
19.7 %
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
Presence revenue, as reported
$ 188,433
$ 156,829
$ 704,349
$ 597,300
Revenue year-over-year growth rate, as reported
20.2 %
9.5 %
17.9 %
7.7 %
Effect of foreign currency translation ($)(1)
$ 3,867
$ (6,801)
$ 5,806
$ (23,358)
Effect of foreign currency translation (%)(1)
2.5 %
(4.7) %
1.0 %
(4.2) %
Presence constant currency growth rate
17.7 %
14.2 %
16.9 %
11.9 %
(1) To calculate the effect of foreign currency translation, we apply the same weighted monthly average exchange
rate as the comparative period.
Amounts may not sum due to rounding.
SUMMARY OF SHARES OUTSTANDING
(unaudited)
Years Ended December 31,
2023
2022
Shares outstanding:
Class A common stock
88,545,012
87,754,534
Class B common stock
47,844,755
47,844,755
Class C common stock
0
0
Total shares outstanding
136,389,767
135,599,289
KEY PERFORMANCE INDICATORS AND NON-GAAP FINANCIAL MEASURES
(unaudited)
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
Unique subscriptions (in thousands)
4,631
4,204
4,631
4,204
Total bookings (in thousands)
$ 286,123
$ 232,145
$ 1,075,096
$ 906,056
ARRR (in thousands)
$ 1,105,743
$ 931,708
$ 1,105,743
$ 931,708
ARPUS
$ 228.02
$ 209.16
$ 228.02
$ 209.16
Adjusted EBITDA (in thousands)
$ 64,697
$ 63,108
$ 235,404
$ 147,499
Unlevered free cash flow (in thousands)
$ 65,021
$ 41,516
$ 241,013
$ 165,550
GMV (in thousands)
$ 1,654,126
$ 1,556,004
$ 6,211,823
$ 6,058,832
Unique subscriptions and average revenue per unique subscription (“ARPUS”) do not account for single domain
subscriptions originally sold by Google as a part of the Google Domains Asset Acquisition.
View original content to download multimedia:https://www.prnewswire.com/news-releases/squarespace-announces-fourth-quarter-and-full-year-2023-financial-results-and-500-million-share-repurchase-authorization-302073481.html
SOURCE Squarespace, Inc.
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Midea Brings “Simply ideal” to Life at IFA 2026
Published
2 hours agoon
September 4, 2026By
BERLIN, Sept. 4, 2026 /PRNewswire/ — At IFA 2026, Midea brings its “Simply ideal” vision to life through the latest innovations, designed to bring greater intelligence, comfort, efficiency and ease to the home.
The exhibition also highlights Midea’s new five-year partnership with FC Barcelona.
The Midea Suites: Ways to Master the Home
The new SMART MASTER showcases Midea’s AI-powered home ecosystem. The AI Agent enables more natural, intuitive interaction with appliances across daily household scenarios. Midea Robot brings AI into the physical world through cooking, cleaning, laundry, care and whole-home control.
At IFA 2026, Midea unveiled its new AI voice-controlled air conditioner. Cliff Liang, General Manager of Enterprise Commercial for the China Region at Microsoft, joined the Midea event and shared Microsoft’s perspective on the next phase of AI.
AI ECOMASTER coordinates appliances and connected systems through intelligent power management. It learns household routines and adapts to changing needs for greater flexibility and comfort.
For homes where every inch counts, SPACE MASTER delivers more usable capacity within the same external dimensions, as demonstrated by the refrigerator’s expanded storage.
Alongside the MASTER Suites, the BUILT-IN Series includes the Milanese-inspired Ispira Series, combining cohesive design with intelligent functionality for an integrated cooking experience.
The Midea Scenarios: Innovation for Everyday Living
Comfort begins with the air around us. Midea’s R290 Series responds to growing demand for efficient cooling. It combines advanced compressor and safety-sealing technologies with ultra-low-GWP R290 refrigerant, delivering around 10% higher energy efficiency. Residential applications include H-Pack and PortaSplit, with PortaSplit set to adopt R290 in 2027.
In the kitchen, technology simplifies daily routines, from food storage and cooking to after-meal care. The Visionary Series refrigerators make food easier to see and access through GlassVision, hands-free lighting and clear, even illumination.
The InfiniteFit Series hobs feature an ultra-slim design for seamless integration into European kitchens, while OmniFlex enables flexible cookware placement. The PizzaPro built-in oven combines rapid heating with an 81L cavity, balancing speed with capacity.
After the meal, the Tri-GreenApex System brings washing, drying and storage together while using around 50% less energy than required for Europe’s highest A rating.
Laundry brings its own everyday needs. Midea’s family laundry room concept combines multi-drum solutions for different garment-care needs, allowing separate loads to run at the same time. The OMNI SERIES offers flexible combinations to suit different household routines.
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Partnership and Brand Portfolio
At IFA 2026, Midea celebrated its partnership through an immersive FC Barcelona experience at its booth. FC Barcelona legend Carles Puyol made a special appearance, sharing insights from his career on leadership, teamwork and the pursuit of excellence. His presence reflected Midea and FC Barcelona’s shared commitment to world-class performance.
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SOURCE Midea Group
Technology
Cheche Group Reports First Half 2026 Unaudited Financial Results
Published
2 hours agoon
September 4, 2026By
BEIJING, Sept. 4, 2026 /PRNewswire/ — Cheche Group Inc. (NASDAQ: CCG) (“Cheche”, “the Company” or “we”), China’s leading auto insurance technology platform, today announced its unaudited financial results for the six months ended June 30, 2026.
Key Business Highlights
Partnerships with New Energy Vehicle (NEV) companies numbered 18 in the first half 2026 and led to 1,049,000 policies with corresponding written premium of RMB3.2 billion (US$472.0 million), representing an increase of 29.5% and 23.7%, respectively, compared to the prior-year period.
Net revenues decreased 34.4% to RMB885.0 million (US$130.4 million) as we have been proactively restructuring business portfolio to focus on high-margin segments.
Gross margin increased to 6.5% from 4.9% in the prior-year period, driven by an improved business mix, with NEV premiums increasing to 31.0% of total written premiums from 22.5% in the prior-year period.
Management Comments
“In the first half of 2026, Cheche made meaningful progress in reshaping our business for the next phase of growth,” said Lei Zhang, Founder, CEO and Chairman of Cheche. “We made deliberate choices to shift away from lower-margin, less strategic revenue streams and concentrate our resources on the business and capabilities where we believe we can create greater long-term value through technology, data and differentiated solutions. As a result, while net revenues declined 34.4% to RMB885.0 million, gross margin expanded by 160 basis points, reflecting a fundamentally stronger revenue mix.
“This transformation is now visibly expressed in our recent launch of the ABAO Agent Family – a suite of five specialized AI agents, built on Cheche’s proprietary vertical insurance large language model that spans the full NEV insurance lifecycle from dynamic pricing to claims processing. Together with our Cheche Score and proprietary NEV intelligent pricing model, ABAO marks our strategic evolution from a digital insurance transaction platform into an AI-driven insurance infrastructure provider. These capabilities are deepening our relationships with insurance carrier partners, improving the economics of our core operations and expanding the ways in which our technology can be applied.
“Transformation requires discipline, and we remain focused on streamlining operations, strengthening our foundation and directing resources toward our highest-value opportunities. We are also exploring ways to broaden our platform and enhance the scale and resilience of our operations as we enter the next phase of our evolution. Our objective is to build a more diversified enterprise with the flexibility to pursue compelling opportunities while maintaining disciplined execution and a clear focus on shareholder value.”
Unaudited First Half Year 2026 Financial Results
Net Revenues were RMB885.0 million (US$130.4 million), representing a 34.4% year-over-year decrease from the prior-year period as a result of the restructuring of our business portfolio.
Cost of Revenues decreased 35.5% year-over-year to RMB827.6 million (US$122.0 million) from the prior-year period due to a decline in net revenues and higher gross margin driven by the restructuring of our business portfolio.
Gross profit decreased 12.6% to RMB57.5 million (US$8.5 million) compared to the prior-year period due to the decrease of net revenues, partially offset by the improved business structure which led to a higher gross margin.
Selling and Marketing Expenses decreased 4.3% to RMB35.6 million (US$5.3 million) from RMB37.3 million in the prior-year period, mainly due to the decrease in staff cost and share-based compensation expenses. Excluding share-based compensation expenses, selling and marketing expenses were RMB34.5 million (US$5.1 million), a decrease of 2.5% compared to the prior-year period.
General and Administrative Expenses increased 55.4% to RMB57.9 million (US$8.5 million) from RMB37.3 million for the prior-year period due to the recognition of RMB35.1 million (US$5.2 million) specific allowance of credit losses for long-aged and high-risk receivables, partially offset by the decrease in share-based compensation expenses and professional service fees. Excluding share-based compensation expenses, general and administrative expenses increased 112.7% year over year, from RMB26.6 million to RMB56.5 million (US$8.3 million).
Research and Development Expenses decreased 21.0% to RMB14.5 million (US$2.1 million) from RMB18.3 million in the prior-year period, mainly due to the decrease in staff costs and professional service fees. Excluding share-based compensation expenses, research and development expenses decreased 21.0% to RMB14.1 million (US$2.1 million) from RMB17.8 million in the prior-year period.
Total Operating Expenses increased 16.4% to RMB108.0 million (US$15.9 million) from RMB92.8 million in the prior-year period, mainly due to the recognition of specific allowance of credit losses for long-aged and high-risk receivables, partially offset by the decrease in staff cost, share-based compensation expenses and professional service fees. Excluding share-based compensation expenses, total operating expenses increased 31.8% to RMB105.1 million (US$15.5 million) from RMB79.8 million in the prior-year period.
Net Loss increased 72.3% to RMB44.1 million (US$6.5 million) from RMB25.6 million in the prior-year period. Excluding non-GAAP expenses, the Adjusted Net Loss increased 257.7% to RMB37.7 million (US$5.6 million) from RMB10.5 million in the prior-year period.
Net Loss Per Share, basic and diluted, was RMB18.57 (US$2.74), increasing RMB7.68 from a loss of RMB10.89 for the prior-year period.
Adjusted Net Loss Per Share, basic and diluted, was RMB15.89 (US$2.34), increasing RMB11.4 from a loss of RMB4.49 for the prior-year period.
First Half Year 2026 Business Developments
On January 29, 2026, Cheche announced that Volkswagen (Anhui) Digital Sales and Services Co., Ltd (“DSSO”), Beijing Cardif Airstar Property & Casualty Insurance Co., Ltd. (“Cardif Airstar Insurance”), and Cheche Group Inc. held a strategic cooperation signing ceremony on January 29, 2026. They will collaborate to develop digital insurance services for Volkswagen owners and expand into areas such as intelligent pricing, intelligent-driving insurance, and non-auto insurance. The partnership aims to establish a digital financial and insurance service system covering the full lifecycle of electric vehicle ownership.
On May 28, 2026, Cheche announced the official launch of its proprietary, AI large model-driven intelligent connected vehicle pricing product. Targeting China’s expanding market of approximately 20 million intelligent connected NEVs, the platform utilizes advanced machine learning and multi-dimensional data analytics. By analyzing real-time driving behavior, usage patterns, and localized risk scenarios, the technology delivers precise, personalized insurance pricing tailored to individual drivers.
On June 22, 2026, Cheche announced the official launch of “ABAO Agent,” an AI-powered intelligent underwriting agent. ABAO Agent is now commercially deployed in auto insurance renewal scenarios at scale. Its 24/7 autonomous capabilities allow the agent to independently execute the complete renewal workflow—customer outreach, needs identification, policy follow-up, and conversion—functions that previously required dedicated human teams. The result is a reduction in labor and operational costs for carrier partners, with no compromise to service continuity.
On June 24, 2026, Cheche announced the launch of “Cheche Score,” a proprietary AI-powered dynamic pricing solution for NEV insurance. Cheche Score is fully commercialized and functioning across multiple cities in China. Cheche has entered into dedicated AI-powered renewal cooperation agreements with several of China’s largest insurance carriers, jointly building a digital operating ecosystem that connects intelligent pricing, precision renewal, and closed-loop customer service.
On September 1, 2026, Cheche announced the launch of the ABAO Agent Family, a suite of five specialized AI agents built on Cheche’s proprietary vertical insurance large language model. Spanning the full NEV insurance lifecycle, from dynamic pricing optimization to claims processing and specialized diagnostics, the ABAO Agent Family marked Cheche’s strategic evolution from a digital insurance transaction platform into an AI-driven insurance infrastructure provider.
Balance Sheet
As of June 30, 2026, the Company had RMB173.7 million (US$25.6 million) in total cash and cash equivalents, restricted cash and short-term investments.
Business Outlook
For the full year 2026:
Cheche is revising its Net Revenue guidance to an approximate range of RMB1.5 billion to RMB1.8 billion, from the previously announced approximate range of RMB3.0 billion to RMB3.2 billion, to reflect the impact of its ongoing business restructuring.
Cheche is revising its NEV Written Premiums Placed guidance to an approximate range of RMB8.0 billion to RMB10.0 billion from the previously announced approximate range of RMB10.5 billion to RMB 12.0 billion, to reflect the change of NEV sales in the domestic market.
Cheche ceased using Total Written Premiums Placed as a key business performance indicator as a result of its strategic pivot.
Cheche is estimating an Adjusted Net Loss range of RMB42.7 million to RMB47.4 million for the full year 2026, due primarily to the ongoing restructuring.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the reader’s convenience. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referenced could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.
About Cheche Group Inc.
Established in 2014 and headquartered in Beijing, China, Cheche is a leading auto insurance technology platform with a nationwide network of around 101 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities in China. Capitalizing on its leading position in auto insurance transaction services, Cheche has evolved into a comprehensive, data-driven technology platform that offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions in China. Learn more at https://www.chechegroup.com/en.
Cheche Group Inc.:
Crocker Coulson
crocker.coulson@aummedia.org
(646) 652-7185
Non-GAAP Financial Measures
Cheche has provided non-GAAP financial measures in this press release that have not been prepared in accordance with generally accepted accounting principles (GAAP) in the United States.
Cheche uses adjusted selling and marketing expenses, adjusted general and administrative expenses, adjusted research and development expenses, adjusted total operating expenses, adjusted net loss, and adjusted net loss per share, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes.
Cheche defines adjusted total operating expenses as total operating expenses adjusted for the impact of share-based compensation. Cheche defines adjusted net loss as net loss adjusted for the impact of share-based compensation expenses, amortization of intangible assets, and changes in fair value of amounts due to a related party related to the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), and change in fair value of warrants. Adjusted net loss per share, basic and diluted, is calculated as adjusted net loss divided by weighted-average ordinary shares outstanding.
Cheche believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the impact of share-based compensation expenses, amortization of intangible assets related to acquisition, and change in fair value of amounts due to a related party related to the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), and change in fair value of warrants. Cheche believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects, and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other measure of performance or as an indicator of Cheche’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Cheche encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Cheche mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance.
Safe Harbor Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements also include, but are not limited to, statements regarding projections, estimations, and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its business, the Company’s advantages and expected growth, and its ability to source and retain talent, as applicable. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management and are not predictions of actual performance. These statements involve risks, uncertainties, and other factors that may cause the Company’s actual results, levels of activity, performance, or achievements to materially differ from those expressed or implied by these forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. The forward-looking statements in this press release represent the views of the Company as of the date of this press release. Subsequent events and developments may cause those views to change. Except as may be required by law, the Company does not undertake any duty to update these forward-looking statements.
Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share and per
share data)
December 31,
June 30,
June 30,
2025
2026
2026
RMB
RMB
USD
ASSETS
Current assets:
Cash and cash equivalents
144,511
131,730
19,415
Restricted cash
5,000
41,779
6,157
Short-term investments
226
226
33
Amounts due from related parties
–
14,303
2,108
Accounts receivable, net
1,145,752
665,931
98,146
Prepayments and other current assets
60,059
64,256
9,470
Total current assets
1,355,548
918,225
135,329
Non-current assets:
Restricted cash
21,086
–
–
Property, equipment and leasehold improvement, net
831
893
132
Intangible assets, net
3,850
2,800
413
Right-of-use assets
6,453
5,016
739
Goodwill
84,609
84,609
12,470
Other non-current assets
2,477
1,981
292
Total non-current assets
119,306
95,299
14,046
Total assets
1,474,854
1,013,524
149,375
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
842,728
430,847
63,499
Short-term borrowings
80,500
98,190
14,471
Contract liabilities
1,044
1,238
182
Salary and welfare benefits payable
83,686
79,321
11,690
Tax payable
22,657
18,320
2,700
Amounts due to a related party
50,626
52,949
7,804
Accrued expenses and other current liabilities
19,206
20,167
2,974
Short-term lease liabilities
4,727
3,510
517
Total current liabilities
1,105,174
704,542
103,837
Non-current liabilities:
Deferred tax liabilities
963
700
103
Long-term borrowings
9,800
–
–
Long-term lease liabilities
801
604
89
Deferred revenue
1,432
1,432
211
Warrant
1,512
1,544
228
Total non-current liabilities
14,508
4,280
631
Total liabilities
1,119,682
708,822
104,468
Ordinary shares
6
6
1
Treasury stock
(1,025)
(1,025)
(151)
Additional paid-in capital
2,550,197
2,553,093
376,279
Accumulated deficit
(2,192,846)
(2,236,903)
(329,679)
Accumulated other comprehensive loss
(1,160)
(10,469)
(1,543)
Total the Company’s shareholders’ equity
355,172
304,702
44,907
Total liabilities and shareholders’ equity
1,474,854
1,013,524
149,375
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (All amounts in
thousands, except for share and per share data)
For the Six Months Ended
June 30,
June 30,
June 30,
2025
2026
2026
RMB
RMB
USD
Net revenues
1,348,652
885,048
130,440
Cost of revenues
(1,282,869)
(827,573)
(121,969)
Gross profit
65,783
57,475
8,471
Operating expenses:
Selling and marketing expenses
(37,250)
(35,637)
(5,252)
General and administrative expenses
(37,255)
(57,902)
(8,534)
Research and development expenses
(18,293)
(14,457)
(2,131)
Total operating expenses
(92,798)
(107,996)
(15,917)
Operating loss
(27,015)
(50,521)
(7,446)
Other expenses:
Interest income
1,669
1,112
164
Interest expense
(1,213)
(1,396)
(206)
Foreign exchange gains
893
6,630
977
Government grants
1,295
2,839
418
Changes in fair value of warrant
1,114
(80)
(12)
Changes in fair value of amounts due to related party
(2,052)
(2,330)
(343)
Others, net
(454)
(552)
(81)
Loss before income tax
(25,763)
(44,298)
(6,529)
Income tax benefit
195
241
36
Net loss
(25,568)
(44,057)
(6,493)
Other comprehensive loss:
Foreign currency translation adjustments, net of nil tax
(1,302)
(9,316)
(1,373)
Fair value changes of amounts due to related party due to own credit risk
(453)
7
1
Total other comprehensive loss
(1,755)
(9,309)
(1,372)
Total comprehensive loss
(27,323)
(53,366)
(7,865)
Net loss per ordinary shares outstanding(1)
Basic
(10.89)
(18.57)
(2.74)
Diluted
(10.89)
(18.57)
(2.74)
Weighted average number of ordinary shares outstanding(1)
Basic
2,348,249
2,372,032
2,372,032
Diluted
2,348,249
2,372,032
2,372,032
(1) The shares and per share information are presented on a retroactive basis to reflect the 35-for-1 share consolidation of its Class A ordinary shares and Class B ordinary shares effective on July 20, 2026.
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)
(All amounts in thousands)
For the Six Months Ended
June 30,
June 30,
June 30,
2025
2026
2026
RMB
RMB
USD
Selling and marketing expenses
(37,250)
(35,637)
(5,252)
Add: Share-based compensation expenses
1,851
1,135
167
Adjusted Selling and marketing expenses
(35,399)
(34,502)
(5,085)
General and administrative expenses
(37,255)
(57,902)
(8,534)
Add: Share-based compensation expenses
10,674
1,354
200
Adjusted General and administrative expenses
(26,581)
(56,548)
(8,334)
Research and development expenses
(18,293)
(14,457)
(2,131)
Add: Share-based compensation expenses
512
407
60
Adjusted Research and development expenses
(17,781)
(14,050)
(2,071)
Total operating expenses
(92,798)
(107,996)
(15,917)
Adjusted total operating expenses
(79,761)
(105,100)
(15,490)
Reconciliation of GAAP Net Loss and Net Loss Per Ordinary Share to Non-GAAP Net Loss and Net Loss Per
Ordinary Share (Unaudited)
(All amounts in thousands, except for share data and per share data)
For the Six Months Ended
June 30,
June 30,
June 30,
2025
2026
2026
RMB
RMB
USD
Net loss
(25,568)
(44,057)
(6,493)
Add: Share-based compensation expenses
13,040
2,896
427
Amortization of intangible assets related to acquisition
1,050
1,050
155
Changes in fair value of warrant
(1,114)
80
12
Changes in fair value of amounts due to related party
2,052
2,330
343
Adjusted net loss
(10,540)
(37,701)
(5,556)
Weighted average number of ordinary shares used in
computing non-GAAP adjusted net loss per ordinary
share(1)
Basic
2,348,249
2,372,032
2,372,032
Diluted
2,348,249
2,372,032
2,372,032
Net loss per ordinary share(1)
Basic
(10.89)
(18.57)
(2.74)
Diluted
(10.89)
(18.57)
(2.74)
Non-GAAP adjustments to net loss per ordinary share(1)
Basic
6.40
2.68
0.40
Diluted
6.40
2.68
0.40
Adjusted net loss per ordinary share(1)
Basic
(4.49)
(15.89)
(2.34)
Diluted
(4.49)
(15.89)
(2.34)
(1) The shares and per share information are presented on a retroactive basis to reflect the 35-for-1 share consolidation of its Class A ordinary shares and Class B ordinary shares effective on July 20, 2026.
View original content:https://www.prnewswire.com/news-releases/cheche-group-reports-first-half-2026-unaudited-financial-results-302870447.html
SOURCE Cheche Group Inc.
Technology
GreenCore Solutions Corp. (GSC) AI Agent Stack Passes 24.5 Million Inbound AI Agent Transactions In 30 Days
Published
2 hours agoon
September 4, 2026By
Brendan Farrugia, Co-founder and Director of GSC Joint Venture Company GSC Agentic Pty. Ltd., joins the GSC Board of Advisors
VANCOUVER, BC and SYDNEY, Sept. 4, 2026 /PRNewswire/ — GreenCore Solutions Corp. (“GSC” or the “Company”) today announced a record month for its AI Agent Stack and a new appointment to its Board of Advisors.
What GSC does. GSC builds AI Agents that sell Consumer Packaged Goods (CPG) and Beauty & Personal Care (BPC) brands. The agents are provided as a managed service — nothing to install, no tech department, no firewall to open, for the brand or the buyer. When a retailer’s buying AI Agent asks whether a brand is available and orderable in its market, the GSC AI Agent answers — in that market, for that brand — and elevates the order to the GSC Trading Deck for humans in the loop on order volume. This is AI Orderability (AIO): new volume added to a brand’s existing capacity and team, not a replacement for either.
The record. In August the AI Agent Stack soared past 24.5 million inbound AI Agent transactions — nine every second — up from 9.5 million per month in May, June and July. Cumulative transactions since May now reach 50 million+. In 1999, Amazon.com took four years to reach its first 10 million customers.
Where the traffic comes from. Half of it is European:
European Union → 11.76 million, led by France at 7.11 million, the Netherlands at 2.35 million, Germany at 777,570 and Belgium at 436,460United Kingdom → 167,200, with Switzerland at 241,450 and Norway at 136,530 alongsideUnited States → 4.9 millionCanada → 1.48 millionSingapore → 1.15 million, the first Asia-Pacific market past one million
Why Europe. The Stack was designed on Microsoft Azure France Central, GSC’s founding region and European home — the global hub of BPC brands and of ESG leadership. GSC AI Agents now run resident in 18 countries on 18 Azure regions, plus Google Cloud Spain:
Founding regions → France Central, Australia East, South Central US, Mexico CentralEurope → UK South, Switzerland North, West Europe (Netherlands), Germany West Central, Italy North, Spain Central, Poland CentralAmericas → Canada Central, Brazil SouthAsia-Pacific → Southeast Asia (Singapore), Korea Central, Japan East, Central IndiaMiddle East → UAE North
Speed for customers and lower compute for buyers: a retail buying AI Agent in Tokyo, Los Angeles or Paris is answered by a GSC AI Agent in Japan, America or France. Every transaction follows one path:
Powered by the CPG Knowledge GraphCarried with its ESG record on SM-ESG-CPGResolved for its jurisdiction → in France, at FR-ECO-10060Answered once → a human reviews and signs every order
Telephone codes and postal codes were built for letters and phone calls. GSC provides the codes for AI Agents.
The market it serves. Morgan Stanley Research estimates AI shopping agents will account for $190 billion to $385 billion of U.S. e-commerce by 2030, with groceries and consumer packaged goods already leading AI-driven purchases. Bain & Company puts the U.S. figure at $300 billion to $500 billion. GSC’s traffic is that market arriving for its BPC brand customers, in the category it was built for.
The appointment. Brendan Farrugia is the Sydney co-founder behind GSC Agentic Pty. Ltd., the joint venture that carries the GSC AI Agent Stack across Asia-Pacific, Latin America and Europe including the UK. He is Director, Co-Founder & General Partner of Unify Ventures and sits on the GSC Agentic International Board of Directors.
“We augment a brand’s sales with new volume — we don’t duplicate what its team already does, and we do it sustainably, with the compute resident in the buyer’s own market,” said Matthew Keddy, CEO, GreenCore Solutions Corp. “Twenty-four and a half million inbound AI Agent transactions a month is 34,000 sales calls an hour, nine every second, answered on eighteen Microsoft Azure hyperscale regions active today for our customers. No brand could staff that. We deliver that new volume with AI Agents on a managed-service basis — faster time to market, lower cost, available now.”
“Every BPC board I sit in front of asks the same question: when does the retail buying agent era commence,” said Brendan Farrugia. “It hit scale in August — twenty-four and a half million agents asked, and our AI Agent fleet delivered. The question a board should be asking now is whether its brands can be found and ordered when those retail AI Agent buyers ask — because if the answer is no, the brand becomes invisible to its primary customers.”
About GreenCore Solutions Corp. (GSC)
GreenCore Solutions Corp. (GSC) builds AI Agents that sell Beauty & Personal Care (BPC) brands into retail grocery procurement, powered by the CPG Knowledge Graph with SPARKS and delivered on MCP + A2A + ACM-68000. GSC carries 24.5 million+ inbound AI Agent transactions a month across 2 billion datapoints spanning 38,350 BPC brands, 15,688 retail grocery banners and 3.29 million points of sale in 50 global markets. GSC AI Agents run sustainable, transact safe, human in the loop, and live on Microsoft Azure and Google Cloud. GSC is a Microsoft AI Cloud Partner. D-U-N-S 24-336-6774. For more information visit gsc-em.com.
About GSC Agentic Pty. Ltd.
GSC Agentic Pty. Ltd., headquartered in Sydney, Australia, is the joint venture delivering the GSC AI Agent Stack across Asia-Pacific, Latin America and Europe including the UK. For more information visit gsc-global.ai
View original content:https://www.prnewswire.com/news-releases/greencore-solutions-corp-gsc-ai-agent-stack-passes-24-5-million-inbound-ai-agent-transactions-in-30-days-302870456.html
SOURCE GreenCore Solutions Corp.
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