May 09, 2023
DownloadTotal Quarterly Revenues of $18.2 Million
Quarterly Gross Profit of $0.1 Million, Increased 853% Year-Over-Year
Expanded Businesses With Signing of Morganfield’s Licensing Agreement Granting Treasure Global Exclusive Sub-licensing of the Morganfield’s Brand As Part Of Strategy To Become The Biggest F&B Chain In Southeast Asia
NEW YORK and KUALA LUMPUR, Malaysia, May 09, 2023 (GLOBE NEWSWIRE) -- Treasure Global Inc (NASDAQ: TGL) (“Treasure Global,” or the “Company”), an innovative technology company focused on providing seamless solutions for lifestyle needs, today reported its financial results for the third quarter of the fiscal year 2023 ended March 31, 2023.
“Since its inception Treasure Global has sought to provide seamless technology enabled solutions. With the ZCITY app, we were able to amass a large and growing user base by providing them with solutions to simplify their lifestyle needs with instant rebates and affiliate cashback programs. Next, we developed TAZTE, a transformational solution to improve efficiency of the front and back operations of the food & beverage (“F&B”) industry. As we increased our understanding of the F&B industry, we identified a symbiotic opportunity to generate additional revenue streams by acting as a master franchisor of Southeast Asian F&B chains,” commented Sam Teo, Chief Executive Officer of Treasure Global. “Our first step in executing this new arm of the business was the recent signing of a licensing agreement with Morganfield’s, a Southeast Asian restaurant chain with nine franchisees, granting Treasure Global the exclusive right to sub-license the Morganfield’s brand. Treasure Global will act as the master franchisor for F&B companies holding all brand royalties and related IP, and as part of these partnerships, retailers will be required to adopt TAZTE. Not only does this raise the brand awareness and credibility of TAZTE, but it will also provide valuable data insights, and accelerate our regional expansion in Southeast Asia. We look forward to providing updates as we progress this business.”
“In addition, we remain committed to our technology business which enabled us to achieve quarterly revenue of approximately $18.2 million and successfully grow gross profit by 853 percent year-over-year. During the quarter, we signed an MOU with a leading regional fintech provider, Boost, increasing our brand exposure and extending our reach to F&B businesses through the onboarding of Boost Credit’s digital financing solutions to TAZTE. Treasure Global is well positioned to become a leader in the Southeast Asian F&B industry through its solutions and partnerships,” concluded Mr. Teo.
Financial Highlights for the Third Quarter, Fiscal Year 2023
Recent User Highlights as of March 31, 2023
Recent Business Highlights
Financial Results for the Third Quarter Fiscal Year 2023
Total revenues for the third quarter of fiscal year 2023 were approximately $18.2 million, compared to approximately $21.1 million for the third quarter of fiscal year 2022. The decrease was mainly attributable to the decrease in voucher product revenue as part of the corporate strategy to improve margin by allocating resources to membership subscriptions.
Gross profit was approximately $0.15 million, or gross margin of approximately 0.8 percent, for the third quarter of fiscal year 2023, an increase of 853 percent compared to $0.02 million, or gross margin of approximately 0.1 percent, for the third quarter of fiscal year 2022. The increase in gross profit was primarily due to an increase in member subscription revenue with more customers subscribed to the Company’s Zmember program, as well as an increase in gross margins from product and loyalty program revenue as Treasure Global received more purchase discount from vendors.
Net loss was approximately $2.9 million for the third quarter of fiscal year 2023, compared to $3.2 million in the third quarter of fiscal year 2022.
Cash and cash equivalents were approximately $4.1 million as of March 31, 2023, compared to approximately $4.7 million as of December 31, 2022.
Outlook for Fiscal Year 2023
For fiscal year 2023, Treasure Global continues to focus on increasing user engagement and margins, as well as expanding further into the digital F&B franchise space to gain additional revenue streams.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today, Tuesday, May 9th at 8:30 a.m. Eastern Time featuring remarks by Sam Teo, CEO and Jaylvin Chan, CFO.
For interested individuals unable to join the conference call, a replay will be available through May 23, 2023, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 10177883. An archived version of the webcast will also be available on Treasure Global’s Investor Relations site: https://ir.treasureglobal.co/.
About Treasure Global Inc:
Treasure Global is an innovative Malaysian technology company focused on providing seamless solutions for lifestyle needs and improving the F&B industry. Treasure Global has developed two technology solutions: the ZCITY App, a unique digital ecosystem that transforms and simplifies the e-payment experience for consumers, while simultaneously allowing them to earn rewards; and TAZTE, a digital F&B management system providing merchants with a one-stop management and automated solution to digitalize their businesses. Treasure Global also acts as a master franchiser in SEA for popular restaurant chains, while providing them with the TAZTE solution. As of March 31, 2023, ZCITY had over 2,400,000 registered users.
For more information, please visit https://treasureglobal.co/
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the Company’s initial public offering filed with the SEC. Copies of these documents are available on the SEC’s website, www.sec.gov. These forward-looking statements cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
For further information, please contact:
U.S. Investor Contact
Allison Soss
KCSA Strategic Communications
[email protected]
Malaysian Investor Contacts
Media Contact
Sue Chuah, Chief Marketing Officer
Treasure Global Inc
[email protected]
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.
Source: Treasure Global Inc.
Released May 09, 2023