Technology
Youdao Reports Second Quarter 2024 Unaudited Financial Results
Published
2 years agoon
By
HANGZHOU, China, Aug. 22, 2024 /PRNewswire/ — Youdao, Inc. (“Youdao” or the “Company”) (NYSE: DAO), an intelligent learning company with industry-leading technology in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Highlights
Total net revenues were RMB1.3 billion (US$181.9 million), representing a 9.5% increase from the same period in 2023.
– Net revenues from learning services were RMB643.8 million (US$88.6 million), representing a 5.5% decrease from the same period in 2023.
– Net revenues from smart devices were RMB166.7 million (US$22.9 million), representing a 25.0% decrease from the same period in 2023.
– Net revenues from online marketing services were RMB511.2 million (US$70.3 million), representing a 68.4% increase from the same period in 2023.Gross margin was 48.2%, compared with 47.0% for the same period in 2023.
“In the second quarter, our financial performance was robust, with operating cash inflow reaching an all-time high and operating loss narrowing significantly year-over-year. Leveraging our advanced large language model capabilities and data advantages, we upgraded our college admission consultation services in Youdao Lingshi to AI-based College Admission Advisers, enhancing both the timeliness and personalization of our services. Driven by RTA (Real-Time API) and AI tools advertising, our online marketing services achieved record net revenues of RMB511.2 million in the second quarter, an increase of 68.4% year-over-year. AI-driven subscription services continued to expand, with the introduction of new applications, including Mr. P AI Tutor, marking a nearly 200% year-over-year increase of total sales in the second quarter. Overall, in the first half of this year, our strategic focus on digital content services, online marketing services, and AI-driven subscription services has yielded significant results, with major financial indicators showing year-over-year improvement,” said Dr. Feng Zhou, Chief Executive Officer and Director of Youdao.
“Looking ahead, with our teams’ continued execution and barring unexpected market changes, we expect the business to achieve full-year positive operating income in the near future. Youdao’s strength lies in our unique ability to advance AI empowerment across business lines, combining technical strength with operational excellence. The rapid development of our online marketing and AI subscription services proves this and will continue to drive our growth. Our online courses, underpinned by high-quality content and differentiated services, are another pillar of our future growth. In the long term, the future of AI + education looks incredibly bright and we will strive to lead the charge,” Dr. Zhou concluded.
Second Quarter 2024 Financial Results
Net Revenues
Net revenues for the second quarter of 2024 were RMB1.3 billion (US$181.9 million), representing a 9.5% increase from RMB1.2 billion for the same period of 2023.
Net revenues from learning services were RMB643.8 million (US$88.6 million) for the second quarter of 2024, representing a 5.5% decrease from RMB680.9 million for the same period of 2023.
Net revenues from smart devices were RMB166.7 million (US$22.9 million) for the second quarter of 2024, representing a 25.0% decrease from RMB222.2 million for the same period of 2023, which was mainly attributable to the decreased unit price due to the change of product mix.
Net revenues from online marketing services were RMB511.2 million (US$70.3 million) for the second quarter of 2024, representing a 68.4% increase from RMB303.6 million for the same period of 2023. The year-over-year increase in revenues from online marketing services was primarily due to the increase in the sales of performance-based advertisements through third parties’ internet properties, which was driven by our continued investments in cutting-edge AI technology.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2024 was RMB636.8 million (US$87.6 million), representing a 12.3% increase from RMB567.2 million for the same period of 2023. Gross margin was 48.2% for the second quarter of 2024, compared with 47.0% for the same period of 2023.
Gross margin for learning services was 60.0% for the second quarter of 2024, compared with 57.4% for the same period of 2023.
Gross margin for smart devices was 30.3% for the second quarter of 2024, compared with 35.8% for the same period of 2023. The decrease was mainly attributable to a lower revenue base of smart devices.
Gross margin for online marketing services was 39.1% for the second quarter of 2024, compared with 31.9% for the same period of 2023. The increase was mainly attributable to the improved gross margin profile of performance-based advertisements through third parties’ internet properties compared with the same period of last year.
Operating Expenses
Total operating expenses for the second quarter of 2024 were RMB709.3 million (US$97.6 million), compared with RMB856.3 million for the same period of last year.
Sales and marketing expenses for the second quarter of 2024 were RMB515.7 million (US$71.0 million), representing a decrease of 12.2% from RMB587.7 million for the same period of 2023. This decrease was attributable to the reduced marketing expenditures and outsourcing labor service fees in learning services in the second quarter of 2024.
Research and development expenses for the second quarter of 2024 were RMB153.0 million (US$21.1 million), representing a decrease of 25.4% from RMB205.1 million for the same period of 2023. The decrease was primarily due to the decreased headcount for research and development employees, leading to payroll savings in the second quarter of 2024.
General and administrative expenses for the second quarter of 2024 were RMB40.6 million (US$5.6 million), representing a decrease of 36.1% from RMB63.6 million for the same period of 2023. The decrease was primarily due to decreased expected credit losses on our accounts receivables, as well as the decreased headcount for general and administrative employees, leading to payroll savings in the second quarter of 2024.
Loss from Operations
As a result of the foregoing, loss from operations for the second quarter of 2024 was RMB72.6 million (US$10.0 million), compared with RMB289.1 million for the same period in 2023. The margin of loss from operations was 5.5%, compared with 24.0% for the same period of last year.
Net Loss Attributable to Youdao’s Ordinary Shareholders
Net loss attributable to Youdao’s ordinary shareholders for the second quarter of 2024 was RMB99.5 million (US$13.7 million), compared with RMB299.2 million for the same period of last year. Non-GAAP net loss attributable to Youdao’s ordinary shareholders for the second quarter of 2024 was RMB96.0 million (US$13.2 million), compared with RMB283.6 million for the same period of last year.
Basic and diluted net loss per American depositary share (“ADS”) attributable to ordinary shareholders for the second quarter of 2024 was RMB0.85 (US$0.12), compared with RMB2.45 for the same period of 2023. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders was RMB0.82 (US$0.11), compared with RMB2.32 for the same period of 2023.
Other Information
As of June 30, 2024, Youdao’s cash, cash equivalents, current and non-current restricted cash, time deposits and short-term investments totaled RMB568.5 million (US$78.2 million), compared with RMB527.1 million as of December 31, 2023. For the second quarter of 2024, net cash provided by operating activities was RMB250.2 million (US$34.4 million), capital expenditures totaled RMB3.8 million (US$0.5 million). Youdao’s ability to continue as a going concern is dependent on management’s ability to implement an effective business plan amid a changing regulatory environment, generate operating cash flows, and secure external financing for future development. To support Youdao’s future business, NetEase Group has agreed to provide financial support for ongoing operations. As of June 30, 2024, Youdao has received various financial support from the NetEase Group, including, among others, RMB878.0 million short-term loans, and US$126.5 million long-term loans with maturity dated March 31, 2027 drawn down under the US$300.0 million revolving loan facility.
As of June 30, 2024, the Company’s contract liabilities, which mainly consisted of deferred revenues generated from Youdao’s learning services, were RMB1.0 billion (US$142.9 million), compared with RMB1.1 billion as of December 31, 2023.
Share Repurchase Program
On November 17, 2022, the Company announced that its board of directors had authorized the Company to adopt a share repurchase program in accordance with applicable laws and regulations for up to US$20.0 million of its Class A ordinary shares (including in the form of ADSs) during a period of up to 36 months. This amount was subsequently increased to US$40.0 million in August 2023. As of June 30, 2024, the Company had repurchased a total of approximately 7.5 million ADSs for around US$33.8 million in the open market under the share repurchase program.
Conference Call
Youdao’s management team will host a teleconference call with simultaneous webcast at 6:00 a.m. Eastern Time on Thursday, August 22, 2024 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, August 22, 2024). Youdao’s management will be on the call to discuss the financial results and answer questions.
Dial-in details for the earnings conference call are as follows:
United States (toll free):
+1-888-346-8982
International:
+1-412-902-4272
Mainland China (toll free):
400-120-1203
Hong Kong (toll free):
800-905-945
Hong Kong:
+852-3018-4992
Conference ID:
8395069
A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.youdao.com.
A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until August 29, 2024:
United States:
+1-877-344-7529
International:
+1-412-317-0088
Replay Access Code:
8395069
About Youdao, Inc.
Youdao, Inc. (NYSE: DAO) is an intelligent learning company with industry-leading technology in China dedicated to developing and using technologies to provide learning content, applications and solutions to users of all ages. Building on the popularity of its online knowledge tools such as Youdao Dictionary and Youdao Translation, Youdao now offers smart devices, STEAM courses, adult and vocational courses, and education digitalization solutions. In addition, Youdao has developed a variety of interactive learning apps. Youdao was founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), a leading internet technology company in China.
For more information, please visit: http://ir.youdao.com.
Non-GAAP Measures
Youdao considers and uses non-GAAP financial measures, such as non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders and non-GAAP basic and diluted net income/(loss) per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Youdao defines non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders as net income/(loss) attributable to the Company’s ordinary shareholders excluding share-based compensation expenses and impairment of long-term investments. Non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders enables Youdao’s management to assess its operating results without considering the impact of these items, which are non-cash charges in nature. Youdao believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company’s current operating performance and prospects in the same manner as management does, if they so choose.
Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. In addition, the non-GAAP financial measures Youdao uses may differ from the non-GAAP measures uses by other companies, including peer companies, and therefore their comparability may be limited.
For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and non-GAAP Results” set forth at the end of this release.
The accompanying table has more details on the reconciliation between our GAAP financial measures that are mostly directly comparable to non-GAAP financial measures. Youdao encourages you to review its financial information in its entirety and not rely on a single financial measure.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2672 to US$1.00, the exchange rate on June 28, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Further information regarding such risks, uncertainties or factors is included in the Company’s filings with the SEC. The announced results of the second quarter of 2024 are preliminary and subject to adjustments. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Jeffrey Wang
Youdao, Inc.
Tel: +86-10-8255-8163 ext. 89980
E-mail: IR@rd.netease.com
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: youdao@thepiacentegroup.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com
YOUDAO, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(RMB and USD in thousands)
As of December 31,
As of June 30,
As of June 30,
2023
2024
2024
RMB
RMB
USD (1)
Assets
Current assets:
Cash and cash equivalents
454,536
500,811
68,914
Time deposits
277
282
39
Restricted cash
395
1,719
237
Short-term investments
71,848
62,501
8,600
Accounts receivable, net
354,006
393,111
54,094
Inventories
217,067
195,726
26,933
Amounts due from NetEase Group
26,117
68,104
9,371
Prepayment and other current assets
175,705
176,881
24,340
Total current assets
1,299,951
1,399,135
192,528
Non-current assets:
Property, equipment and software, net
70,906
59,513
8,189
Operating lease right-of-use assets, net
89,022
89,252
12,281
Long-term investments
51,396
77,469
10,660
Goodwill
109,944
109,944
15,129
Other assets, net
44,976
46,196
6,357
Total non-current assets
366,244
382,374
52,616
Total assets
1,666,195
1,781,509
245,144
Liabilities, Mezzanine Equity and Shareholders’ Deficit
Current liabilities:
Accounts payables
159,005
110,644
15,225
Payroll payable
282,679
194,622
26,781
Amounts due to NetEase Group
82,430
74,164
10,205
Contract liabilities
1,052,622
1,038,676
142,927
Taxes payable
52,781
47,482
6,534
Accrued liabilities and other payables
591,770
743,511
102,310
Short-term loans from NetEase Group
878,000
878,000
120,817
Total current liabilities
3,099,287
3,087,099
424,799
Non-current liabilities:
Long-term lease liabilities
49,337
42,265
5,816
Long-term loans from NetEase Group
630,360
905,553
124,608
Other non-current liabilities
16,314
16,879
2,323
Total non-current liabilities
696,011
964,697
132,747
Total liabilities
3,795,298
4,051,796
557,546
Mezzanine equity
37,961
38,532
5,302
Shareholders’ deficit:
Youdao’s shareholders’ deficit
(2,186,736)
(2,329,034)
(320,486)
Noncontrolling interests
19,672
20,215
2,782
Total shareholders’ deficit
(2,167,064)
(2,308,819)
(317,704)
Total liabilities, mezzanine equity and shareholders’ deficit
1,666,195
1,781,509
245,144
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB7.2672 on the last
trading day of June (June 28, 2024) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.
YOUDAO, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(RMB and USD in thousands, except share and per ADS data)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
June 30,
2023
2024
2024
2024
2023
2024
RMB
RMB
RMB
USD (1)
RMB
RMB
Net revenues:
Learning services
680,920
717,996
643,762
88,585
1,413,341
1,361,758
Smart devices
222,157
181,198
166,722
22,942
434,906
347,920
Online marketing services
303,557
492,665
511,237
70,348
521,657
1,003,902
Total net revenues
1,206,634
1,391,859
1,321,721
181,875
2,369,904
2,713,580
Cost of revenues (2)
(639,459)
(710,356)
(684,942)
(94,251)
(1,200,879)
(1,395,298)
Gross profit
567,175
681,503
636,779
87,624
1,169,025
1,318,282
Operating expenses:
Sales and marketing expenses (2)
(587,651)
(455,440)
(515,711)
(70,965)
(1,152,856)
(971,151)
Research and development expenses (2)
(205,076)
(146,723)
(152,987)
(21,052)
(387,906)
(299,710)
General and administrative expenses (2)
(63,579)
(49,416)
(40,634)
(5,591)
(113,185)
(90,050)
Total operating expenses
(856,306)
(651,579)
(709,332)
(97,608)
(1,653,947)
(1,360,911)
(Loss)/Income from operations
(289,131)
29,924
(72,553)
(9,984)
(484,922)
(42,629)
Interest income
2,154
975
917
126
4,448
1,892
Interest expense
(17,087)
(20,334)
(20,816)
(2,864)
(32,850)
(41,150)
Others, net
5,730
2,892
(909)
(125)
12,108
1,983
(Loss)/Income before tax
(298,334)
13,457
(93,361)
(12,847)
(501,216)
(79,904)
Income tax (expenses)/benefits
(4,890)
1,028
(7,053)
(970)
(8,091)
(6,025)
Net (loss)/income
(303,224)
14,485
(100,414)
(13,817)
(509,307)
(85,929)
Net loss/(income) attributable to noncontrolling interests
4,065
(2,053)
939
129
5,795
(1,114)
Net (loss)/income attributable to ordinary shareholders of the Company
(299,159)
12,432
(99,475)
(13,688)
(503,512)
(87,043)
Basic net (loss)/income per ADS
(2.45)
0.11
(0.85)
(0.12)
(4.12)
(0.74)
Diluted net (loss)/income per ADS
(2.45)
0.10
(0.85)
(0.12)
(4.12)
(0.74)
Shares used in computing basic net (loss)/income per ADS
122,247,009
118,317,220
117,173,272
117,173,272
122,257,874
117,745,253
Shares used in computing diluted net (loss)/income per ADS
122,247,009
118,928,848
117,173,272
117,173,272
122,257,874
117,745,253
Note 1:
The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB7.2672 on the last trading day of June (June 28, 2024)
as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.
Note 2:
Share-based compensation in each category:
Cost of revenues
1,049
778
727
100
2,308
1,505
Sales and marketing expenses
2,416
1,136
337
46
3,547
1,473
Research and development expenses
5,618
3,503
939
129
10,403
4,442
General and administrative expenses
3,261
2,479
1,506
208
6,582
3,985
YOUDAO, INC.
UNAUDITED ADDITIONAL INFORMATION
(RMB and USD in thousands)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
June 30,
2023
2024
2024
2024
2023
2024
RMB
RMB
RMB
USD
RMB
RMB
Net revenues
Learning services
680,920
717,996
643,762
88,585
1,413,341
1,361,758
Smart devices
222,157
181,198
166,722
22,942
434,906
347,920
Online marketing services
303,557
492,665
511,237
70,348
521,657
1,003,902
Total net revenues
1,206,634
1,391,859
1,321,721
181,875
2,369,904
2,713,580
Cost of revenues
Learning services
290,155
264,759
257,482
35,431
568,280
522,241
Smart devices
142,544
122,060
116,274
16,000
271,132
238,334
Online marketing services
206,760
323,537
311,186
42,820
361,467
634,723
Total cost of revenues
639,459
710,356
684,942
94,251
1,200,879
1,395,298
Gross margin
Learning services
57.4 %
63.1 %
60.0 %
60.0 %
59.8 %
61.6 %
Smart devices
35.8 %
32.6 %
30.3 %
30.3 %
37.7 %
31.5 %
Online marketing services
31.9 %
34.3 %
39.1 %
39.1 %
30.7 %
36.8 %
Total gross margin
47.0 %
49.0 %
48.2 %
48.2 %
49.3 %
48.6 %
YOUDAO, INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(RMB and USD in thousands, except per ADS data)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
June 30,
2023
2024
2024
2024
2023
2024
RMB
RMB
RMB
USD
RMB
RMB
Net (loss)/income attributable to ordinary shareholders of the Company
(299,159)
12,432
(99,475)
(13,688)
(503,512)
(87,043)
Add: share-based compensation
12,344
7,896
3,509
483
22,840
11,405
impairment of long-term investment
3,240
–
–
–
3,240
–
Non-GAAP net (loss)/income attributable to ordinary shareholders of the
Company
(283,575)
20,328
(95,966)
(13,205)
(477,432)
(75,638)
Non-GAAP basic net (loss)/income per ADS
(2.32)
0.17
(0.82)
(0.11)
(3.91)
(0.64)
Non-GAAP diluted net (loss)/income per ADS
(2.32)
0.17
(0.82)
(0.11)
(3.91)
(0.64)
View original content:https://www.prnewswire.com/news-releases/youdao-reports-second-quarter-2024-unaudited-financial-results-302228349.html
SOURCE Youdao, Inc.
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Technology
Fractal posts 20% revenue growth and 92% net income growth in Q1 FY27
Published
56 minutes agoon
July 24, 2026By
Adjusted EBITDA Grows at 35% YoYGross Margin up 29 bps1 to 46%; Adjusted EBITDA Margin up 189 bps to 17%
NEW YORK, July 24, 2026 /PRNewswire/ — Fractal Analytics Ltd (BSE: 544700) (NSE: FRACTAL) announced its consolidated financial results for Q1 FY27, ending June 30, 2026.
In Q1 FY27, the Company reported consolidated operating revenue of INR 9,125 m, a growth of 20% year on year (YoY). Revenue growth was led by the company’s Healthcare and Life Sciences (HLS) industry, which clocked 69% growth YoY. Strong sustained growth in HLS over the last several quarters has resulted in it becoming the second largest industry in the portfolio. Banking, Financial Services and Insurance (BFSI) also performed very well, growing 36% YoY in Q1. Fractal’s largest industry, Consumer Packaged Goods and Retail (CPGR), continued to gather momentum, growing 19% YoY. On the other hand, TMT declined 22% YoY.
Fractal’s focus on deepening customer relationships continues to yield good outcomes. Its clients collectively increased their spending with the company, as reflected in the Net Revenue Retention2 of 117% in Q1. Further, its Net Promoter Score (NPS) during the period stood at 77.
The company reported improved profit margins at all levels. Gross Margin in Q1 was at 46%, while Adjusted EBITDA Margin expanded by 189 bps YoY to 17%. Net Income grew 92% YoY to INR 723 m.
Commenting on the performance, Srikanth Velamakanni, Group CEO and Executive Vice-Chairman, said:
“Enterprises are putting real transformation budgets behind AI now and we’re seeing it directly in the size of the deals coming to us. TMT was the drag on our headline growth this quarter. Excluding TMT, our business grew 35% year on year, which is a better read on the underlying demand we’re seeing.
As data sovereignty becomes a bigger priority for governments and enterprises, and as open-weight models keep improving, clients need a partner who can work across models and infrastructure. We have invested heavily in our people, our research, and our own intellectual property to be that partner.”
1 Basis points = 1/100th of 1%
2 Net Revenue Retention in our Fractal.ai segment measures how effectively we retain and expand revenue from our existing clients over a defined period and is calculated by comparing the current period’s revenue from the clients who existed at the start of the period, with their revenue in the previous period – including the effects of upsells, cross-sells and contractions
About Fractal
Fractal Analytics Ltd (BSE: 544700) (NSE: FRACTAL) is a globally recognized pure-play enterprise AI company trusted by Fortune 500®-sized enterprises to power decision-making through AI services, solutions, and products, anchored by Cogentiq, its flagship agentic AI platform. With over 6,000 professionals across North America, EMEA, and Asia-Pacific, Fractal partners with business leaders to drive competitive differentiation for their organizations by embedding AI into critical decisions across business functions and industry verticals.
Fractal invests more than 6% of its revenue in AI R&D, supporting foundational AI research, product development, and IP creation that address both immediate client needs and long-term technological advancement. Fractal’s track record includes developing proprietary models and products such as Cogentiq Health – Vaidya.ai and Cogentiq Data Science – PiEvolve, as well as incubating and spinning out Qure.ai, a global healthcare AI leader focused on the rapid identification and management of tuberculosis, lung cancer, and stroke (or critical health conditions). Fractal’s suite of businesses consists of Asper.ai (a Revenue Growth Management product for CPG companies) and Analytics Vidhya (an Ed-tech platform).
For more information, go to www.fractal.ai.
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SOURCE Fractal Analytics Limited
Technology
Xryma Plc : Pre-Listing Liquidity Facility and Price Discovery Process
Published
56 minutes agoon
July 24, 2026By
NICOSIA, Cyprus, July 24, 2026 /PRNewswire/ — Xryma Plc (“Xryma”) announces its intention to reapply within the next twelve months for admission to list on Euronext Paris (“Euronext”), with such admission being subject to Euronext’s approval. Before submitting its application, Xryma intends to launch a pre-listing liquidity facility and price discovery process, comprising a private placement to institutional and qualified investors alongside a secondary market offer to Xryma existing shareholders (“shareholders”) wishing to exit prior to listing.
The admission referred to above that is subject to the approval of Euronext may also be subject to approval by relevant regulatory authorities, and no assurance can be given that approval will be granted or as to the timing of any admission.
The pre-listing liquidity facility and price discovery process is designed to:
Enable shareholders seeking an exit to participate without the need to open an EU brokerage account,Provide a clear and orderly opportunity for existing shareholders to sell all or part of their holdings ahead of any potential admission to trading on Euronext Paris,Enable shareholders to sell all or part of their holdings at the same price at which qualified and institutional investors subscribe for shares in the Company,Establish, through a bookbuild with qualified and institutional investors, a market-validated referenced price for Xryma shares ahead of any potential admission on Euronext Paris (the “Primary Market Placement Price”),Support orderly trading upon potential admission.
Individual shareholder mailouts explaining the details of the pre-listing liquidity facility scheme with instructions and necessary documentation will be conducted during August 2026.
As the Primary Market Placement Price is to be determined by the subsequent bookbuild, shareholders will be given the opportunity to set a floor price which will result in the sale of their shares if the Primary Market Placement Price is higher. Shareholders will receive the Primary Market Placement Price minus applicable fees.
Shareholders and Investors may be scaled back to match corresponding demand from the other party, with partial fulfilment a possibility if the Company cannot match supply to demand.
Completion of the process is subject to achieving a level of institutional and qualified investor demand that the Board considers appropriate to support an orderly market should Xryma subsequently be admitted to trading on Euronext Paris.
Participation is entirely voluntary. Shareholders who do not wish to sell will simply retain their shares. Shareholders that do not intend to participate should continue to onboard with a Euronext participating broker, or a Euroclear ESES custodian, per previous communications.
The major shareholders, SCP Select All Enterprise (Monaco) and SCP Red 5 Solutions (Monaco) will not participate in the offer and will be subject to lock up arrangements.
Mr Nikogiannis (John) Karantzis, CEO of Xryma Plc comments: “Our shareholders have told us they would value a straightforward way to realise their holdings without the time and cost of opening an EU brokerage account. This process is our response to that feedback. We are structuring the placement to be large enough to establish a credible reference price whilst limiting dilution, with demand directed first towards meeting shareholder sell interest. We look forward to updating the market on the revised timetable in due course.”
Shareholders seeking a more detailed explanation of the pre-listing liquidity facility and price discovery process, should refer to the guide available at https://www.xryma.com/investors
Important Information & Disclaimers
This press release may contain inside information within the meaning of Article 7(1) of Regulation (EU) 596/2014 (Market Abuse Regulation).
This publication is not for publication or distribution or release, directly or indirectly, in or into the United States of America (including its territories and possessions, any state of the United States and the District of Columbia), Canada, Australia, South Africa, Japan or any other jurisdiction where such an announcement would be unlawful. The distribution of this publication may be restricted by law in certain jurisdictions and persons into whose possession this document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. No action has been taken that would permit an offering of the treasury shares or possession or distribution of this publication in any jurisdiction where action for that purpose is required.
This publication does not constitute or form part of an offer for sale or solicitation of an offer to purchase or subscribe for securities in the United States, Canada, Australia, South Africa, Japan or any other jurisdiction and the securities referred to herein have not been registered under the securities laws of any such jurisdiction. Any New Shares (if such are issued) will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any State or any other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of, the Securities Act and in compliance with all applicable securities laws of any State or any other jurisdiction of the United States. No public offering of securities is being made in the United States or in any other jurisdiction.
The information set forth herein must not be distributed in any jurisdiction where such distribution is unlawful, and any recipients are requested to inform themselves about and to observe such restrictions.
The Offering referred to herein by Xryma Plc will only be made in accordance with all applicable corporate and securities laws. Any shares referred to herein will exclusively be offered or sold in reliance on any applicable exemptions from prospectus or registration requirements in any jurisdiction. In member states of the European Economic Area, this publication is only addressed to and directed at persons who are ‘qualified investors’ within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (as amended and including any relevant delegated regulations, the “Prospectus Regulation”) or in any other circumstances falling within exemptions available in the relevant member state under Article 1(4) and/or 1(5) of the Prospectus Regulation. In the United Kingdom, this publication is only addressed to and directed at qualified investors within the meaning of the Prospectus Regulation, as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended (“EUWA”), who are persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”), (ii) falling within article 49(2)(a) to (d) (high net worth companies, incorporated associations, etc.) of the Order, or (iii) to whom it may otherwise be lawfully communicated; any other persons in the United Kingdom should not take any action on the basis of this publication and should not act on or rely on it.
This publication does not constitute a recommendation concerning the prospective Offering. This announcement does not constitute an Offer or invitation to subscribe.
This announcement includes statements that are, or may be deemed to be, ‘forward looking statements’. These forward-looking statements can be identified by the use of forward looking terminology, including the terms ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘intends’, ‘may’, ‘will’, or ‘should’ or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. By their nature, forward looking statements involve risk and uncertainty because they relate to future events and circumstances which may or may not occur. Many of these factors are beyond the control of the Company. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results and circumstances may vary materially from those described in this announcement as anticipated, believed, estimated or expected.
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