Executive Summary
International Business Digital Technology Limited (1782.HK) reported QQ3 2024 revenue of 30.96 million CNY, marking a sequential upturn (+47.1% QoQ) after a softer first half in 2024, but the quarter remains meaningfully unprofitable with a net loss of 18.26 million CNY and negative EBITDA of 8.21 million CNY. The gross margin stood at 44.8%, yet operating expenses of 27.20 million CNY and R&D/SG&A investments kept the company in negative territory, yielding an operating loss of 13.33 million CNY and a net loss of 18.26 million CNY. On the balance sheet, the company carries a robust liquidity position with cash and equivalents of 77.32 million CNY and a negative net debt of 62.99 million CNY, indicating net cash. The firm’s current ratio of 4.67 and quick ratio of 4.41 reflect ample short-term liquidity to support ongoing R&D and go-to-market initiatives, while total assets of 208.81 million CNY and equity of 164.55 million CNY underline a solid balance sheet foundation.
Key takeaways for investors include: (1) early-stage monetization of its SaaS/APM platforms with a QoQ revenue uptick, (2) sustained investment in R&D and SG&A that pressures near-term profitability but may unlock longer-term ARR growth, (3) a favorable liquidity stance that affords continued product development and customer acquisition investments, and (4) a relatively elevated valuation versus peers despite negative earnings, underscoring the need for clear path to margin expansion and sustainable free cash flow generation.
Given the absence of explicit forward guidance in the provided data, the outlook hinges on management’s ability to convert revenue gains into operating leverage while balancing continued investment in APM Vista, NetVista, and Trade QoS platforms across Mainland China, Taiwan, and Hong Kong.
Key Performance Indicators
QoQ: 47.08% | YoY:-25.57%
QoQ: 55.32% | YoY:-26.99%
Key Insights
Revenue: 30.961 million CNY in Q3 2024, YoY -25.57%, QoQ +47.08% (from Q2 2024 revenue of 21.051 million). Gross profit: 13.864 million CNY, YoY -26.99%, QoQ +55.32% (gross margin 44.78%). Operating expenses: 27.196 million CNY, comprising R&D 7.411 million (R&D intensity ~23.9% of revenue) and SG&A 14.057 million (plus Selling/General & Administrative 19.785 million in total SG&A for the period). EBITDA: -8.208 million CNY; EBIT/operating income: -13.333 million CNY (operati...
Financial Highlights
Revenue: 30.961 million CNY in Q3 2024, YoY -25.57%, QoQ +47.08% (from Q2 2024 revenue of 21.051 million). Gross profit: 13.864 million CNY, YoY -26.99%, QoQ +55.32% (gross margin 44.78%). Operating expenses: 27.196 million CNY, comprising R&D 7.411 million (R&D intensity ~23.9% of revenue) and SG&A 14.057 million (plus Selling/General & Administrative 19.785 million in total SG&A for the period). EBITDA: -8.208 million CNY; EBIT/operating income: -13.333 million CNY (operating margin -43.06%). Net income: -18.263 million CNY (net margin -58.98%), EPS: -0.0239 (diluted). Weighted average shares: 764.0 million.
Cash flow and liquidity: Net cash provided by operating activities: -2.833 million CNY; capex (PPE) -0.667 million CNY; free cash flow: -3.50 million CNY. Cash and cash equivalents: 77.32 million CNY; net debt: -62.99 million CNY (net cash). Current ratio: 4.67; quick ratio: 4.41; cash ratio: 1.88. Total assets: 208.81 million CNY; total liabilities: 44.26 million CNY; total stockholders’ equity: 164.55 million CNY.
Valuation and efficiency: price-to-book ~12.95x; price-to-sales ~68.81x; trailing P/E not meaningful due to negative earnings (P/E = negative). Enterprise value multiple: -251.89x (driven by net cash position and equity base). Asset turnover: 0.148x; fixed asset turnover: 3.73x; gross margin 44.8% supported by relative cost of revenue base; operating cash flow margin and free cash flow remain negative given ongoing investment cycle.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
30.96M |
-25.57% |
47.08% |
| Gross Profit |
13.86M |
-26.99% |
55.32% |
| Operating Income |
-13.33M |
9.50% |
38.07% |
| Net Income |
-18.26M |
-40.11% |
5.25% |
| EPS |
-0.02 |
-11.68% |
5.91% |
Key Financial Ratios
operatingProfitMargin
-43.1%
priceEarningsRatio
-29.17
Management Commentary
No earnings call transcript data provided in the supplied materials. Consequently, management quotes and thematic highlights from a QQ3 2024 earnings call could not be extracted.
Forward Guidance
No explicit forward guidance was included in the provided data. Given the quarterly trajectory, a cautious, scenario-based outlook is appropriate:
- Base-case: Revenue momentum continues into Q4 2024 with mid-teens QoQ growth as cross-sell of APM Vista, NetVista, and Trade QoS platforms expands. Expect ongoing investment in R&D and sales to sustain top-line growth, with margin improvement contingent on achieving operating leverage. Key targets to monitor would include ARR/ACV growth, gross margin stability around the mid- to high-40s, and a path to positive EBITDA as scale improves.
- Bear-case: Macro weakness or slower adoption of SaaS platforms leads to muted revenue growth, with high fixed-cost intensity delaying profitability and near-term cash flow improvement.
- Bull-case: Strong enterprise adoption and higher-margin ARR from multi-region deployments could unlock material margin expansion, accelerating FCF generation. Investors should monitor: customer churn/retention, annual recurring revenue (ARR) growth, gross margin progression, and the cadence of R&D investment relative to revenue growth.