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NEW YORK and KUALA LUMPUR – Treasure Global Inc (NASDAQ: TGL), a technology solutions provider, announced the success of its ZCITY Premium Store, indicating notable increases in sales and user engagement. The platform’s performance contributed to the company’s revenue growth of 48% year over year for the second quarter of fiscal 2024.
Since its inception, the ZCITY Premium Store has sold over 6,000 Bonanza Bill Saver packages, which include RM10 bill payment vouchers and Zcoins. This sales milestone highlights the platform’s role in increasing transaction volume and revenue for Treasure Global.
Using artificial intelligence tools, including those developed by OpenAI, ZCITY gathered information on consumer spending patterns, allowing packages to be customized based on individual preferences. This strategy led to greater user engagement and satisfaction.
The company’s revenue growth is attributed in part to the performance of the Premium Store, with Treasure Global reporting a substantial increase in its financials for the three-month period ended December 31, 2023. The company’s net loss is also decreased from $2.0 million to $1.2 million. year after year, reflecting the strategic impact of the Premium Store on the company’s profitability.
Sam Teo, CEO of Treasure Global, expressed confidence in the achievements of the Premium Store, attributing them to the company’s commitment to innovation and value delivery.
Treasure Global’s broader operations include the ZCITY app, a digital ecosystem for electronic payments and rewards, and TAZTE, a digital food and beverage management system. The company also franchises popular restaurant chains in Southeast Asia, providing them with technological solutions. As of December 31, 2023, ZCITY boasted over 2.68 million registered users.
The information in this article is based on a press release from Treasure Global Inc.
Insights on InvestingPro
Treasure Global Inc’s recent announcement on the success of its ZCITY Premium Store is in line with the positive performance reflected in some of its real-time metrics. According to data from InvestingPro, the company has demonstrated a significant return over the past week, with a total price return of 47.37%, highlighting the enthusiasm of short-term investors. However, the bigger picture shows a challenging environment, as evidenced by a 1-year total price return of -95.14%, suggesting that the company has been facing significant difficulties for a longer period.
The company’s market capitalization stands at a modest $5.58 million, which when paired with a negative P/E ratio of -0.12, indicates that Treasure Global is currently unprofitable. This is further evidenced by a gross profit margin of just 1.42% over the trailing twelve months as of Q2 2024, indicating difficulty in maintaining profitability.
InvestingPro’s tips highlight some critical factors investors should consider. Treasure Global holds more cash than debt on its balance sheet, which could provide some financial flexibility to its operations. However, the company is rapidly burning through cash, which is a cause for concern for its sustainability and long-term growth prospects. Furthermore, analysts expect a decline in sales in the current year, which could put further pressure on the company’s financial health.
For readers interested in a more in-depth analysis of Treasure Global Inc, InvestingPro offers additional insights and metrics. There are other tips from InvestingPro, which can help investors make informed decisions about the stock’s potential. To access these tips and more detailed data, visit https://www.investing.com/pro/TGL and remember to use the coupon code PRONEWS24 to get an additional 10% discount on the annual or biennial Pro and Pro+ subscription.
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