Q2 2023 Treasure Global Inc Earnings Call

Good day, everyone and welcome to <unk> Global Inc. Second quarter fiscal year, 2023 conference call.

At this time participants are in a listen only mode.

A question and answer session will follow management's remarks.

This conference call is being recorded.

A replay of today's call will be available on the Investor Relations section of the ice website and will remain posted that for the next 30 days.

I will now hand, the call over to Allison Soss Investor relations for introductions and the reading of the Safe Harbor statement.

Please go ahead.

Thank you operator, good morning, everyone and welcome to charge your global second quarter fiscal year 2023 earnings Conference call.

On today's call are Santana, Chief Executive Officer, and Kevin <unk>, Chief Financial Officer, and Jeremy Robert Independent character.

Before we begin I would like to remind you that today's call contains certain forward looking statements are management made within the meaning of section 27, a of the Securities Act of 1933 as amended and section 21 E of the Securities and Exchange Act of 1934 as amended including that there is.

Back to the company's recent IPO and the anticipated U S.

As far as concerning future events.

Words, such as May shed forget expects intend plan believe anticipate.

Estimates and variations of such words and similar expressions.

Tended to identify forward looking statements. These statements are subject to numerous conditions many of which are beyond the control of the company, including those set forth in the risk factor section of the company's registration statement and sign up for the company's initial public offering filed with the FCC.

Copies of these documents are available on the SEC's website at Www Dot S E C Dot Gov.

Actual results may differ materially from those expressed or implied by such forward looking statements.

We undertake no obligation to update these statements are revisions or changes after the date of this call except as required by law.

No. It doesn't my pleasure to introduce <unk>, Chief Executive Officer of the T. G. I Sam. Please go ahead.

Thanks, Allison and thank you all for joining us today I would like to begin by reviewing our second quarter fiscal year, Indeed, with the tree highlights followed by an update on the subsequent months, our 'twenty to 'twenty three.

Did you actually financial Officer, Jeremy and John will then review the highlights.

Second quarter financial results.

We were happy to take your questions.

<unk> continues to work and.

You know what the online to offline e-commerce platform, providing seamless technology enabled solutions for and lifestyle.

We are developing a portfolio of digital platform for use throughout the southeast Asia region and Japan.

All right.

In the second quarter of fiscal year 'twenty 'twenty. Three we were pleased to report total revenue of 24 million U S. Dollar improved gross profit up 68% year over year, a strong active user retention rate 98, 1%.

I'm very proud to announce in December the pace.

You know with these digital and bearish management system was now ready and available.

This is the first product as part of our solution strategy and we have modernized F N b industry in Malaysia.

I think much chance you saw one stop automate this solution to digital lifestyle businesses.

F N b colonies faces. Many if you can see that we've believed pastries address improving operation efficiency, achieving cost savings Paul machines.

This off with digital life processes, including email.

And your payment so you start recording with online payment or digital payment technology.

Hey, Smart F. N B system also proactively develop Q system that has been proven to reduce top VEBA and we offer private demand delivery services to access multiple dedicated delivery partners.

There were more than 220000 small to medium F&B business owners in Malaysia in 2021 and the market is growing.

And we're at a five 1% to 2015 and.

I mean, what pace to become the market leader in automated solutions part of F N b industry.

I spent pace increased Englishman and we finished shouldn't be didn't juices and mushrooms.

Scrap a scattering use of data and insight.

During playback distinct and since our office should last we have a strong positive feedback from wood chips on how taste test.

Help them to improve operational efficiency and reduce cost.

Hey.

It is to get important department sorry Sascha.

Crawfish spending capex, but she's trained and having the chance to identify opportunities to increase tariffs of the March offering this enabled them to make smarter decisions with data and see how.

Before me, if prompt out mobile devices anywhere anytime.

Pes Udacity, yeah, and analytic software to a trend, we think consumer true personalized data driven Englishman to generate greater profitability.

Our goal is to continue increasing user engagement through new products and so we're supposed to people a month.

It just takes that will increase the retention rate and generate better margins.

T G I F. We continuously focus on innovation and the initial wish off pace.

In December what just the beginning.

We also have a patent life at trough features enhancement that our development team has to do you know what.

Right and Huntsman in the.

The ability to set these cow how about.

Insurance and we want the customer online remote approval I'll stop action.

The fund's vault customers drive true for ordering and pre ordering. This these features we have F&B businesses to pass them Manish operation that process.

I think thereby reducing residential if we saw something increasing revenue.

In addition.

The move to be able to benefit reducing paced by assessing discounted pricing.

Comparison to origin and menu pricing.

Turning to our strategic partnership.

Did you I continue to secure a diverse strategy partnership which is key to our marketing and growth strategy.

These collaborations are important in broadening our market penetration really how we use the base and driving revenue.

In general is 2023 we signed an Mou with Bruce a region that full spectrum feedback, but yeah. That's a continuation of our business cooperation with boost the new policy Rabbitfish, an AI based digital financing solution from boost credit, which offer a rich people renting services such as well.

King capital financing, even watched financing and supply chain financing the financially empowered small immediate imprecise.

Most credit did you got financing solution will be whether into T. G. I pace program called netting T J with a growing network of matches and F&B provider S pop.

Potential user of our taste and velocity platform.

Sure.

Partnership with increased TGI Brent exposure.

I witnessed among F N b.

Lady sure.

In November 2022 races.

Our partnership with IP when.

Alicia reading payment gateways to become Pgi exclusive payment gateway partner for recipe as well as our partners fault pace I paid will provide e-commerce and retail payments solution, but that should be not on the Malaysia, but also additional south east Asian country, including Indonesia.

Thailand, and the Philippines supporting necessity future regional spend should be important for the growth off pace.

It is also probably assess b slash F N b much at least as part of the agreement I paid it has begun to promo piece. That's one of the exclusive cooperation partner problem. The F N b much into Apple taste and style.

Mainly software.

We saw who shut.

This policy is a key example of T G I F.

Our strategy Brent to secure relevant policy in South East Asia.

Sure wish we can offer a solution to their members and increased.

I wish I could I shouldn't the user on our tetanus.

We have also secured strategy brand partnership to be the sole marketing selling platform.

E Commerce marketplace as I saw this partnership enables adjusted equal provide our desktop Costa movies tailor product offering while providing T. G. I referred additional revenue stream, that's a portion of product sales.

The first of these probably shouldn't wasp emoji, but how can we understand who first product over there but on desktop that's our strategy brand partner zesty provide too much in that strategy of fault no jeep products firstly.

<unk> promotion to the existing and growing that member database and secondly, that's a key.

Combination of tradition, you know with these digital marketing the new revenue stream from you know what your other partner products so on diversity.

And has the aspiration.

TGI revenue growth and brand present, as we continue to spend in Malaysia, and South East Asia.

We also continue to look to corroborate with leading regional lifestyle brand. If therefore XI system to further drive user acquisition and revenue growth.

Our partnership with industry brand.

Another important part of our strategy to speed, our pet to invite them.

Now I will pass the call onto Jeremy who will review our financial results in greater detail.

Thank you Stan and good morning, everyone.

Hey, I Didnt reveal our financial results for our second fiscal quarter ended December 31st 2022, compared to the corresponding period, yeah, Yeah, probably yeah.

Revenue for the second quarter of fiscal year 'twenty to 'twenty three 'twenty.

24 million U S. Dollar basis proceed may lead to media in U S dollar less than the revenue for the second quarter of fiscal year 2022 vision.

We issued approximately $22 4 million U S dollar.

The decrease was mainly attribute it to the resources being located to membership suspicion that agenda revenue.

Better margin.

And as Sam has mentioned, we are focused on increasing margin and gross profit.

Yes really began to show in our results.

Gross profit for the three months at December 31st 2022 zero.

Zero by two 3 million U S dollar compared to 0.1 4 million U S dollar with the same period the prior year.

Translate to the growth of 68% year over year.

The increase in gross profit was primarily due to an increase in that membership revenue we have.

Gross profit margin.

Our goal is to continue increasing user engagement through new product and services not yet recently launched pace that will increase retention rates and generate higher profit and margin.

Exactly D paas over two 3 million registered users and 240000 monthly active users as of December 31st 20000 to go.

Gulf of quarterly active user yeah, yeah. It does.

Remember that the first is eight eight.

Then I know that the prior year yet.

User retention rate, but a quarter with December 2022, well 98, 1% higher than in the second fiscal quarter the year before it's mean that quite.

Quite yet user compared to new use are showing higher levels of engagement on our platform that keep them coming back.

But doctor off 0.9 million transactions by our registered user well, it's going to take that over the second quarter of fiscal 2023.

38% compared with the prior corresponding quarter.

Net loss was approximately 2 million U S dollar, but the second quarter down by approximately 1.2 million U S. Dollar from approximately $3 2 million U S dollar.

Yes second quarter.

The reduction of 36, 7% year over year is mainly due to lower operating and other expenses.

Our operating expenses for the second fiscal quarter.

Oh Boy 3 million U S dollar was down 22% compared to a prior corresponding period, mainly due to reduced selling expenses.

Cash and cash equivalents were approximately $4 7 million U S dollar.

Simple or defer 2022 compared to approximately 7 million U S. Dollar. That's all set then but the 2022.

P. J I has a positive working capital.

Approximately $4 7 million U S. Dollar as of December 31st 2022, I will now turn the call back to Sam.

Thanks, Jeremy to conclude we were particularly excited.

What this new product piece.

Well as the progress we made.

Our strategy pyrites anticipate pace to generate revenue, which will become a significant contributor to T. G. I total revenue in the future.

And our pipeline.

Restaurant features and Huntsman trying to split the growth pace for fiscal year 'twenty 'twenty. Three did you I continue to focus on increasing user engagement and marches.

And when you expect to achieve these true Red six Oh, you know what this new product and solution as well as executing this regional expansion into southeast Asia and Japan.

With a solid balance sheet and proven infrastructure TJ is well placed to shift your strategy parity and further develop some BD you know what the e-commerce provider in the Southeast Asia region.

In our prepared remarks.

Okay.

Ladies and gentlemen.

At this time, the management will not be taking any questions and answers.

I'd like to turn the call over to Sam to the CEO for closing remarks.

Thank you again for joining us for today's call is a way we are pushed.

He Mr stakeholder.

Thank you the conference of <unk> Global Inc. Has now concluded. Thank you for your participation you may disconnect your lines.

Yeah.

Yeah.

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