Text | DataEye Recently, Mega Matrix (MPU), the first stock in the US stock market short drama, disclosed its 2024 Q3 financial report. In the first three quarters of 2024, MPU's unaudited total revenue reached US$25.95 million, equivalent to approximately RMB 187 million, gross

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Recently, Mega Matrix (mpu), the first stock in the US stock short drama, disclosed its 2024 Q3 financial report.

In the first three quarters of 2024, MPU's unaudited total revenue reached US$25.95 million, equivalent to approximately RMB 187 million, gross profit was approximately US$15.45 million, equivalent to approximately RMB 112 million, and gross profit margin was close to 60%.

In the third quarter of 2024, mpu's unaudited total revenue reached US$10.345 million, a quarter-on-quarter increase of 49.3%, and gross profit reached US$6.05 million. Looking at

by region, in the third quarter, revenue in the Asia-Pacific region soared, surpassing North America and becoming the largest market for MPU revenue.

is the first stock in short dramas in the US. How is the development of the short drama business in the third quarter? The detailed breakdown of

is as follows:

1. The total revenue in the first three quarters was approximately 187 million yuan, and the sales expense rate exceeded 70%.

1. Overview: Q3 performance rebounded, with cumulative revenue of US$25.95 million in the first three quarters, and cumulative net loss attributable to the parent company reached 7.04 million. $

According to the latest financial report, in the third quarter of 2024, mpu's unaudited total revenue reached US$10.345 million, a quarter-on-quarter increase of 49.3%, gross profit reached US$6.05 million, and gross profit margin was close to 60%, but the net loss attributable to the parent company for $2.77 million.

In the first three quarters of 2024, mpu’s unaudited total revenue was approximately US$25.95 million (approximately RMB 187 million), and gross profit was approximately US$15.45 million (approximately RMB 112 million), attributable to the parent company The company's net loss reached $7.04 million.

Judging from the quarterly performance trend, although MPU's revenue and profit declined in the second quarter, both revenue and gross profit in the third quarter hit a new high for the year. In terms of revenue composition, the vast majority of MPU's revenue (about 90%) in the third quarter still came from membership and recharge streaming services. This part of revenue was approximately US$9.3 million, an increase of 47.6% from the previous quarter. In addition, online advertising service revenue was approximately US$1 million, an increase of 66.7% month-on-month.

2. Operational data: Q3 user recharges increased by 46.2% month-on-month, but indicators such as the number of active users have declined compared with the first half of the year. The operating data of flextv, a short drama platform owned by

mpu, shows that the total Q3 user recharges in 2024 will be US$9.5 million, month-on-month. Growth of 46.2% . This growth of

is mainly due to the acceleration of mpu in content updates. In the third quarter, mpu launched 56 new dramas, including 16 self-created dramas (15 in English and 1 in Japanese).

Despite strong revenue performance in the third quarter, some key indicators of flextv, such as the number of monthly active users (mau) and average revenue per paying user (arppu), have declined compared with the first half of the year.

Specifically, in the third quarter, the number of monthly active users of flextv was 3.2 million, the average revenue per user (arpu) was US$3.5, and the average revenue per paying user (arppu) was US$25.9. As of September 30, 2024, flextv's total monthly active users reached 7.2 million.

As of the end of June 2024, flextv had a total of 4.1 million active users and an average revenue per user (ARPU) of US$3.5, while the total number of paying users was 0.5 million and an average revenue per paying user (ARPU) of US$28.8.

3. Market situation: The Asia-Pacific region has become the largest market, with q3 revenue contributing nearly half

Looking at different regions, In the third quarter, MPU revenue in the Asia-Pacific region soared, surpassing North America for the first time and becoming MPU revenue The largest market is .

Specifically, in the third quarter of MPU’s membership and recharge streaming service revenue, the Asia-Pacific region’s contribution reached 49.3%, while North America’s share dropped to 30%. At the same time, Latin America also showed strong growth momentum, contributing 12.7% of membership and recharge streaming service revenue.

In the first three quarters of 2024, mpu's membership and recharge streaming service revenue from the North American market reached US$10.69 million, accounting for 41% of the total streaming service revenue, which was slightly higher than the US$10.45 million in the Asia-Pacific market.

From the perspective of revenue type, among the various markets of MPU, the revenue structure of Asia-Pacific region is the most diversified .Unlike other regions that rely solely on membership and recharge streaming service revenue, the Asia-Pacific region's revenue sources also include online advertising services and content licensing revenue. The substantial growth in revenue of

in the Asia-Pacific region in the third quarter was mainly due to the significant increase in revenue from membership and recharge streaming services as well as online advertising services. Among them, 's online advertising service revenue in the Asia-Pacific region reached US$1.03 million in the third quarter, accounting for approximately 18% of the region's total revenue.

dataeye short drama observation found that up to now, there are hundreds of short dramas online on the flextv official website, the vast majority of which are translated dramas.

For example, the 14 newly launched short dramas on flextv are all translated dramas, including the popular domestic short dramas "The Night Will Be Bright", "Only After I Die I Learned I Was the Prince of Beijing, Bai Yueguang", "Oolong Pregnancy" and "One Night" Lucky Pregnancy, Flash Marriage, My Wife Is Pampered to Heaven", "Go Where There Is You", etc.

According to the new data of flextv in the third quarter (16 self-produced dramas and 40 translated dramas), we can reasonably infer that flextv’s translated dramas performed better in the third quarter, among which the Asia-Pacific region contributed a large share of translated dramas. Part of the income, while the response of self-made dramas in the European and American markets has been relatively mediocre..

4. Expenses: The cost of promoting the short drama has increased significantly, and the sales expense rate has reached 71%. In terms of expenses, in the first three quarters of 2024, the total sales expenses of mpu have reached 18.5 million US dollars, and the sales expense rate has reached 71%. In the third quarter, selling expenses were US$6.44 million, accounting for 62% of revenue in the quarter. It can be seen that the cost of promoting overseas short dramas has increased significantly and has become a considerable expense for the company.

Further considering the company's general and administrative expenses (US$7.42 million), mpu's total operating expenses in the first three quarters were as high as US$25.92 million, almost the same as the company's total revenue of US$25.95 million. In other words, the company's total expense ratio is close to 100%.

However, as an industry with sufficient cash flow, the company currently has US$9.948 million in cash and cash equivalents , maintaining sufficient liquidity.

mega Hu Yucheng, CEO of matrix, said: "In the third quarter of 2024, flextv achieved significant growth in revenue and original content output, and stable user engagement further solidified our strategy."

"Looking to the future, the company There will continue to be a focus on expanding flextv’s content library, supporting studio growth, building partnerships and enhancing user engagement capabilities to keep flextv competitive as the script team has strengthened since July. The output of short dramas has maintained steady growth every month. The company is working hard to achieve single-quarter profits in the fourth quarter "

2. Flextv delivery situation

According to dataeye-adx overseas version data, flextv this year. A total of more than 47,000 sets of materials have been released, and the cumulative number of delivery plans has exceeded 460,000.

In October, flextv ranked 6th on the overseas short drama app distribution list.

Judging from the distribution trend, flextv has gradually increased its material distribution since the second half of the year. The number of materials released was larger in October, reaching the highest value of 2978 sets on October 31. Subsequently, the amount of materials posted dropped slightly, but the average daily amount of materials posted remained at 1,500-1,900 groups.

From the perspective of market launch, flextv mainly invests in the European and American markets. According to the overseas version data of dataeye-adx, ranked first in the amount of materials released in the US market in the past 90 days, accounting for 40.64%. Germany and Spain follow closely with 25.66% and 21.48% of the material delivery ratio respectively.

In the third quarter, flextv significantly increased its investment in Japan, Thailand and other Asia-Pacific regions, and this trend was further strengthened in the fourth quarter. Especially in the Thai market, flextv’s highest single-day delivery volume on October 30 exceeded 600 sets of materials.

This data shows that flextv's overseas strategy is changing from focusing on the US market to a more global layout. Especially in the Asia-Pacific market, flextv is actively implementing the expansion strategy .

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