OTC:MTBLY
Moatable, Inc.
A data analytics and AI platform provider scaling rapidly with $63.5M revenue but reporting a narrowing net loss of -$2.5M in 2024.
Key Metrics
Investment Thesis
Bull Case
Bullish investors are drawn to MTBLY's impressive top-line trajectory and its ability to generate positive operating cash flow despite current accounting losses, signaling potential operational efficiency gains. The massive retained earnings deficit suggests a turnaround opportunity where the market has not yet priced in the full potential of their AI-driven product suite once profitability is achieved.
Bear Case
Bearish cases focus on the company's inability to achieve GAAP profitability for three consecutive years, with net income remaining negative at -$2.5M in the most recent period. The significant decline in accounts receivable relative to revenue and a large negative change in other long-term assets raise questions about asset quality and potential write-downs.
About Moatable, Inc.
Moatable, Inc. (MTBLY) operates as a technology solutions provider delivering advanced data analytics and AI-driven platforms primarily to enterprise clients in North America and Europe. The company leverages its substantial research and development investments of $19.1M annually to engineer proprietary software that optimizes operational efficiency for high-growth sectors. With a revenue base expanding from $45.8M in 2022 to $63.5M in 2024, the firm focuses on scalable SaaS models and strategic partnerships within the competitive enterprise software landscape.
Analysis
Management Discussion
While revenue growth remains robust at 24% year-over-year from 2023 to 2024, management faces the critical challenge of converting this top-line expansion into net income, as operating profit declined to -$3.0M. The cash flow from operations turned positive at $1.3M, offering some relief against the accumulated other comprehensive loss of -$9.2M, but the company still relies heavily on financing activities with inflows of $794,000.
Industry Overview
The enterprise software and data analytics industry is characterized by rapid technological disruption where companies must continuously invest in R&D to maintain competitive relevance against established giants. Market leaders in this space typically demonstrate high gross margins, though early-stage innovators like Moatable often sacrifice short-term profits to capture market share through aggressive pricing and feature innovation.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $45.8M | $52.1M | $63.5M |
| Cost of Revenue | $10.4M | $11.2M | $15.1M |
| Gross Profit | $35.4M | $40.9M | $48.3M |
| Operating Expenses | $51.6M | $51.6M | $51.3M |
| Operating Income | $-16.2M | $-10.7M | $-3.0M |
| R&D | $16.2M | $18.4M | $19.1M |
| G&A | $14.8M | $12.6M | $12.6M |
| Marketing | $19.6M | $18.8M | $19.3M |
| Stock-Based Comp | $4.0M | $3.0M | $1.7M |
| D&A | $756.0K | $437.0K | $423.0K |
| Depreciation | $196.0K | $262.0K | $287.0K |
| Amortization | $560.0K | $175.0K | $136.0K |
| Other OpEx | $962.0K | $1.9M | $207.0K |
| Non-Operating Income | $-51.2M | $-3.7M | $-427.0K |
| Interest Expense | $25.0K | — | — |
| Pre-Tax Income | $-67.4M | $-14.4M | $-3.4M |
| Income Tax | $-2.3M | $-6.7M | $-857.0K |
| Continuing Ops | $-76.4M | $-7.7M | $-2.5M |
| Discontinued Ops | $0 | $-2.2M | $37.0K |
| Net Income | $-76.4M | $-9.9M | $-2.5M |
| Minority Interest | $-1.2M | $-919.0K | $-356.0K |
| Net to Common | $-75.2M | $-9.0M | $-2.1M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $58.2M | $46.2M | $43.9M |
| Cash & Equivalents | $28.0M | $33.9M | $26.6M |
| Marketable Securities | $24.0M | $0 | $5.0M |
| Accounts Receivable | $2.1M | $2.6M | $3.7M |
| Inventory | $19.0K | — | — |
| Prepaid Expenses | $3.4M | $3.9M | $2.7M |
| Other Current Assets | $715.0K | $5.7M | $5.9M |
| Long-Term Assets | $36.5M | $23.5M | $25.5M |
| PP&E (Net) | $5.5M | $6.2M | $6.1M |
| Intangibles | $2.4M | $727.0K | $1.9M |
| Goodwill | $547.0K | $0 | $2.7M |
| Operating Leases | $400.0K | $744.0K | $1.3M |
| LT Investments | $27.4M | $15.7M | $13.3M |
| Other LT Assets | $-16.9M | $-12.9M | $-12.9M |
| Total Assets | $94.7M | $69.7M | $69.5M |
| Current Liabilities | $28.9M | $21.4M | $23.6M |
| Accounts Payable | $1.6M | $2.1M | $2.4M |
| Current Leases | $301.0K | $461.0K | $473.0K |
| Taxes Payable | $10.4M | $3.4M | $1.9M |
| Other Current Liab | $5.0M | $5.0M | $5.2M |
| Long-Term Liabilities | $0 | $189.0K | $1.1M |
| LT Operating Leases | $0 | $189.0K | $763.0K |
| Other LT Liab | $0 | $0 | $354.0K |
| Total Liabilities | $28.9M | $21.6M | $24.7M |
| Shareholders' Equity | $65.8M | $48.1M | $44.8M |
| Paid-In Capital | $776.4M | $782.4M | $784.6M |
| Retained Earnings | $-695.6M | $-716.3M | $-720.8M |
| AOCI | $-8.9M | $-8.8M | $-9.2M |
| Total L&E | $94.7M | $69.7M | $69.5M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-76.4M | $-9.9M | $-2.5M |
| Non-Cash Adjustments | $79.2M | $4.4M | $-1.5M |
| Working Capital Changes | $-6.7M | $2.3M | $5.3M |
| Cash from Operations | $-3.8M | $-3.2M | $1.3M |
| Capital Expenditures | $5.5M | $927.0K | $251.0K |
| Cash from Investing | $-33.5M | $23.0M | $-8.9M |
| Share Buybacks | — | $11.6M | $253.0K |
| Cash from Financing | $-1.5M | $-8.9M | $794.0K |
| FX Effect | $1.5M | $46.0K | $-217.0K |
| Net Change in Cash | $-37.3M | $11.0M | $-6.8M |
| Beginning Cash | $65.2M | $28.0M | $39.0M |
| Ending Cash | $28.0M | $39.0M | $31.9M |
Frequently Asked Questions
How does Moatable, Inc. make money?
The company's revenue streams are driven by its core proprietary analytics engine, cloud-based SaaS subscriptions for enterprise clients, and professional services consulting related to AI implementation. A significant portion of operations involves strategic investments in joint ventures totaling $13.1M, suggesting a segment focused on ecosystem expansion and co-development partnerships.
What are the main risks for MTBLY?
The primary risk is persistent profitability issues, evidenced by a net profit deficit of -$2.5M despite revenue growth, which could lead to cash burn if operational leverage does not improve. Investors must also consider the high general and administrative expenses of $12.6M combined with marketing spend of $19.3M, which significantly erodes gross margins. Additionally, the company holds a substantial retained earnings deficit of -$720.8M, indicating historical losses that require consistent future performance to address.
What is MTBLY's competitive advantage?
Moatable possesses a deep moat through its heavy investment in research and development ($19.1M), which likely fuels proprietary algorithms that create high switching costs for enterprise clients. The company maintains strong liquidity with $31.9M in cash and equivalents, providing the flexibility to fund growth initiatives without immediate dilution concerns.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.