PALO
ALTO, Calif., May 8, 2024
/PRNewswire/ -- Mega Matrix Corp. ("MPU" or the "Company") (NYSE
American: MPU), today announced financial results for its first
quarter ended March 31,
2024. Since the beginning of 2024, the Company made the
strategic decision to focus on short drama streaming platform,
FlexTV and ceased the crypto-related business, we have
made significant progress in finance and operation.
Financial Highlights
- In Q1 2024, the Company's total unaudited revenue reached
$8.7 million, including over
$8.0 million from membership and
top-up streaming services and around $0.7
million from online advertising services.
- Membership and top-up streaming services revenue from the U.S.
market amounted to $4.4 million,
representing 54.6% of the total streaming services revenue, which
was attributed to our focus on English self-produced short dramas
and the U.S. market.
- Gross profit for Q1 2024 reached $5.2
million, with an almost 60.0% gross profit margin.
Operating Highlights
- User recharge totaled $9.3
million in Q1 2024, with 66.0% generated from the U.S.
- In Q1 2024, our quarterly active users reached 2.62 million,
with an ARPU of $3.07 and quarterly
active paying users amounted to 0.32 million, with an ARPPU of
$24.94 respectively.
- As of April 30, 2024, several hit
series were released, among which "Mr. Williams! Madame is Dying"
generated unaudited total user top-up amount reaching over
$6.3 million and brought 4.8 million
views, which demonstrated the powerful monetization capability of
hit series.
- As of April 30, 2024, FlexTV had
a total inventory of over three hundred (300) short dramas, with
two hundred and four (204) already released. Among the released
dramas, fifty-three (53) are self-produced.
- On January 20, 2024, FlexTV rose
to 8th position in the Apple App Store Entertainment Top Charts
(Free Apps, U.S.).
Management Commentary
Mr. Yucheng Hu, CEO of Mega
Matrix Corp. said, "In Q1 of 2024, our efforts to bolster FlexTV's
development were validated as we witnessed significant traction and
engagement on the platform. The rapid uptake by users underscores
the appeal of our curated short drama content, tailored for the
vertical screen format.
Building on this momentum, our focus for the remainder of the
year is on further enriching the FlexTV experience. We are
committed to expanding our content library, nurturing studios that
supply content to our platform, forging strategic partnerships, and
enhancing user engagement features to ensure that FlexTV remains at
the forefront of the evolving entertainment landscape.
We attained our financial results by
releasing only four self-producing English short dramas tailored
for English-speaking world in 2024 Q1. Mega Matrix
recognizes that captivating storylines are both the cornerstone and
bottleneck of successful short dramas. Consequently, we have
strengthened our script team, significantly enlarging its size by
about 10 times and refining the script writing process. The newly
reinforced team is now poised to produce 5 to 10 short dramas per
month starting from June 2024.
The success we've experienced in Q1 reaffirms our belief in
FlexTV's potential to revolutionize the way audiences consume
content in the digital age. We are excited to continue driving
innovation and delivering compelling entertainment experiences that
resonate with viewers worldwide, all while maximizing value for our
shareholders."
About Mega Matrix: Mega Matrix Corp. (NYSE AMEX:
MPU) is a holding company and operates FlexTV, a short-video
streaming platform and producer of short dramas, through Yuder Pte,
Ltd., an indirect majority-controlled subsidiary of Mega Matrix.
Mega Matrix is a Delaware
corporation headquartered in Palo Alto,
CA. For more information, please contact info@megamatrix.io
or visit: http://www.megamatrix.io.
Key Metrics
The numbers for our key metrics, which
include our quarterly active users (QAU), quarterly paying users
(QPU), average membership and top-up streaming service revenue per
active user (ARPU), and average membership and top-up streaming
service revenue per paying user (ARPPU), are calculated using
internal company data based on the activity of user accounts. We
define an active user as a user who has downloaded and opened
FlexTV app at least once. We define a paying user as a user
who has registered for a membership or topping up, provided a
method of payment, and is entitled to access FlexTV services (this
membership or topping up does not include participation in free
trials or other promotional offers extended by FlexTV to new
users). We define ARPU as average membership and top-up streaming
services revenue generated by each active user in one quarter. We
define ARPPU as average membership and top-up streaming services
revenue generated by each paying user in one quarter. We use these
metrics to assess the growth and health of the overall business and
believe that ARPU best reflects our ability to attract, retain,
engage and monetize our users, and thereby drive revenue. While
these numbers are based on what we believe to be reasonable
estimates of our user base for the applicable period of
measurement, there are inherent challenges in measuring usage of
our products across large online and mobile populations around the
world. In addition, we are continually seeking to improve our
estimates of our user base, and such estimates may change due to
improvements or changes in technology or our
methodology.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. All statements in
this press release other than statements that are purely historical
are forward looking statements. When used in this press release,
the words "estimates," "projected," "expects," "anticipates,"
"forecasts," "plans," "intends," "believes," "seeks," "may,"
"will," "should," "future," "propose," and variations of these
words or similar expressions (or the negative versions of such
words or expressions) are intended to identify forward-looking
statements. These forward-looking statements are not guarantees for
future performance, conditions or results, and involve a number of
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside the Company's control,
that could cause actual results or outcomes to differ materially
from those discussed in the forward-looking statements. Important
factors, among others, are: the ability to manage growth; ability
to identify and integrate future acquisitions; ability to grow and
expand our FlexTV business; ability to obtain additional financing
in the future to fund capital expenditures; fluctuations in general
economic and business conditions; costs or other factors adversely
affecting the Company's profitability; litigation involving
patents, intellectual property, and other matters; potential
changes in the legislative and regulatory environment; a pandemic
or epidemic; ; the possibility that the Company may not succeed in
developing its new lines of businesses due to, among other things,
changes in the business environment, competition, changes in
regulation, or other economic and policy factors; and the
possibility that the Company's new lines of business may be
adversely affected by other economic, business, and/or competitive
factors. The forward-looking statements in this press release and
the Company's future results of operations are subject to
additional risks and uncertainties set forth under the heading
"Risk Factors" in documents filed by the Company with the
Securities and Exchange Commission, including the Company's latest
annual report on Form 10-K, and are based on information available
to the Company on the date hereof. In addition, such risks and
uncertainties include the Company's inability to predict or control
bankruptcy proceedings and the uncertainties surrounding the
ability to generate cash proceeds through the sale or other
monetization of the Company's assets. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable law. Readers are cautioned not to
place undue reliance on forward-looking statements, which speak
only as of the date of this press release.
Disclosure Channels
We announce material information about
the Company and its services and for complying with our disclosure
obligation under Regulation FD via the following social media
channels:
X (f/k/a Twitter):
twitter.com/MegaMatrixMPU
Facebook:
facebook.com/megamatrixmpu
facebook.com/flextvus
LinkedIn:
linkedin.com/company/megamatrixmpu
TikTok:
tiktok.com/@flextv_english
YouTube:
youtube.com/@FlexTV_English
The Company will also use its landing
page on its corporate website (www.megamatrix.io) to host social
media disclosures and/or links to/from such disclosures. The
information we post through these social media channels may be
deemed material. Accordingly, investors should monitor these social
media channels in addition to following our website, press
releases, SEC filings and public conference calls and webcasts. The
social media channels that we intend to use as a means of
disclosing the information described above may be updated from time
to time as listed on our website.
Contact: Info@megamatrix.io
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SOURCE Mega Matrix Corp.