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TMTPOST – Hong Kong-listed AI company Fourth Paradigm reported a significant reduction in losses and strong revenue growth, according to its 2024 financial results.

The company recorded a total revenue of 5.261 billion yuan (US$ 724 million), a 25.1% year-on-year increase. Gross profits hit 2.245 billion and gross profit margin was as high as 42.7%.

The company reported an annual net loss attributable to shareholders of 269 million yuan, representing a decrease of 640 million yuan compared to 2023 or  a 70.4% reduction. Adjusted net loss for the year stood at 292 million yuan, down by 29.6% year-on-year. This marks the fourth consecutive year of loss reduction since 2021.

Its core business, the Sage AI Platform, demonstrated impressive growth, generating 3.676 billion yuan in revenue—a 46.7% year-on-year increase—accounting for nearly 70% of the company’s total revenue. CEO and Chairman Dai Wenyuan emphasized that the company's business diversification strategy does not represent a shift away from its core enterprise AI business.

The company introduced the Sage AI Platform 5.0 in 2024, enhancing AI agent capabilities, GPU resource optimization, and decision-making functionalities. Despite a 20.3% decline in revenue from its SHIFT intelligent solutions, the company attributed the drop to a strategic focus on expanding the Sage AI platform. The AI-generated services segment, however, saw a 35.4% increase in revenue.

Research and development expenses rose by 22.7% to 2.17 billion yuan, reflecting increased investment in cloud services and AI technologies. Looking ahead, Fourth Paradigm is expected to achieve profitability in the 2025 fiscal year, positioning itself among China's few profitable AI software companies.

(Note: 1 USD equals 7.18 yuan)