PALO ALTO, Calif., Aug. 14, 2024 /PRNewswire/ -- Mega Matrix Corp.
("MPU" or the "Company") (NYSE American: MPU), today announced
financial results for its second quarter ended June 30, 2024.
Operating Highlights
- User recharge totaled $15.8
million in the first half of 2024, with 62.0% generated from
the U.S.
- In the first half of 2024, our total active users reached 4.1
million, with an ARPU of $3.5 and our
total active paying users amounted to 0.5 million, with an ARPPU of
$28.8.
- As of July 31, 2024, several hit
series were released, among which "Mr. Williams! Madame is Dying"
generated an unaudited total user top-up amount exceeding
$9.0 million and brought 201.3
million views, which demonstrated the powerful monetization
capability of hit series.
- Since July 2024 through the date
hereof, FlexTV has ranked in the top 10 Free Entertainment Apps
Chart on the App Store and Google Play in various countries.
-
- On July 16, 2024, FlexTV reached
the 2nd position on the App Store's Free Entertainment Chart
in Thailand.
- On July 26, 2024, FlexTV rose to
the 8th position on the App Store's Free Entertainment Chart
in Japan.
- On July 31, 2024, FlexTV secured
the 7th position on the App Store's Free Entertainment Chart
in France.
- On August 12, 2024, FlexTV ranked
within the Top 5 on the App Store's Free Entertainment Chart
in South Korea.
- On August 12, 2024, FlexTV
achieved the 3rd place on both the App Store and Google
Play's Free Entertainment Chart in Indonesia.
Financial Highlights
- In the first half of 2024, the Company's total unaudited
revenue reached $15.6 million,
including over $14.3 million from
membership and top-up streaming services and around $1.3 million from online advertising
services.
- Membership and top-up streaming services revenue from the U.S.
market amounted to $7.4 million,
representing 51.7% 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 the first six months of 2024 reached
$9.4 million, with an almost 60.0%
gross profit margin.
- On May 9, 2024, the Company
successfully closed the private placement of $3.7 million of common stock at a price of
$2.20 per share.
- On August 1, 2024, the Company
successfully closed the private placement of $1.5 million of 681,818 shares of its common
stock (or common stock equivalents in lieu thereof), short-term
series A warrants to purchase up to 681,818 shares of common stock
and series B warrants to purchase up to 681,818 shares of common
stock at $2.20 per share, through
H.C. Wainwright & Co., LLC acting as the Company's exclusive
placement agent in connection with the private placement.
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Management Commentary
Mr. Yucheng Hu, CEO of Mega
Matrix Corp., stated, "In Q2 of 2024, our efforts to bolster
FlexTV's development were validated as we witnessed significant
tractions 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.
Mega Matrix recognizes that captivating storylines are the
cornerstone of successful short dramas. Consequently, we have
strengthened our script team, significantly enlarging its size and
refining the scriptwriting process. Since July 2024, our newly reinforced team has
successfully stabilized production at over 5 short dramas per
month.
The success we've experienced in Q2 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 total active
users (TAU), total paying users (TPU), 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.