① The FOURTH PARADIGM achieved revenue of 3.218 billion yuan in the first three quarters, up 26.1% year on year; gross profit of 1.35 billion yuan, up 12.5% year on year, and gross margin of 42.0% during the period; ② its core business, the Prophet AI platform, maintained a high growth rate during the reporting period, achieving actual revenue of 2.171 billion yuan, an increase of 50.2% year on year.
“Science and Technology Innovation Board Daily”, November 19 (Reporter Chen Junqing) On the afternoon of November 19, the FOURTH PARADIGM announced the progress of core business for the period 2024 to September 30. According to the announcement, in the first three quarters of this year, revenue was 3.218 billion yuan, up 26.1% year on year; gross profit was 1.35 billion yuan, up 12.5% year on year. Gross margin was 42.0% during the period, which remained stable overall.
In the quarter, the three major business lines of the FOURTH PARADIGM showed mixed performance. Among them, the core business also accounted for the highest revenue share — the Prophet AI platform maintained a high growth rate during the reporting period, achieving actual revenue of 2.171 billion yuan, an increase of 50.2% over the previous year. The share of total revenue increased further to 67.5%.
▍ Advances in core business have brought about improvements in many areas
The Prophet AI platform is the core of all businesses in the FOURTH PARADIGM, and it is also the most critical factor driving this performance growth. Thanks to the steady expansion of the industry's large-scale model business and the accelerated implementation of Fan Ecological products, the business has performed well and ushered in new progress.
During the reporting period, the Prophet AI platform completed many iterative upgrades. Its industry-leading model development and management platform, Prophet AI Platform 5.0, has achieved end-to-end capacity supply for computing power layer, platform layer, model layer, and application layer.
Specifically, AI agents improve the accuracy of solving complex reasoning and execution, and cover the entire process of large model agent design, development, debugging, release, operation analysis, and iterative optimization. In addition, GPU resource pooling capabilities have been improved, which helps solve the problems of low utilization of heterogeneous computing power resources and high cost of adapting large models to large models.
Product iterations and upgrades have contributed to commercialization. According to data reported by the research institute IDC, from 2018 to 2023, the FOURTH PARADIGM has steadily ranked first in the market share of machine learning platforms in China for six consecutive years.
Furthermore, in the first three quarters, the FOURTH PARADIGM created more than 40 artificial intelligence products through the Prophet Inside model. It includes smart mouse solutions, intelligent conference solutions, 3D scanning and modeling equipment for AI digital human video synthesis platforms, etc., and has formed multi-scene applications in enterprises.
The continuous launch and application of the product makes it well displayed on the user side. According to the announcement, the total number of users in the FOURTH PARADIGM during this period was 224, the number of benchmark users was 98, and the average revenue contribution of the benchmark user group was RMB 14.87 million. (Benchmark users: Global Fortune 500 companies or listed companies).
▍ A variety of products ushered in new developments
Influenced by the pace of business strategy expansion of the Prophet AI platform, the revenue performance of the SHIFT intelligent solution, which is the second largest business in the FOURTH PARADIGM, declined this quarter, achieving revenue of 0.688 billion yuan, a year-on-year decrease of 14.1%, accounting for 21.4% of the company's total revenue.
The company said that since the company's business development focus is mainly on the Prophet AI platform, the development and development of SHIFT intelligent solutions will all support the business growth of the Prophet AI platform. The decline was due to the impact of business expansion strategies.
According to the introduction, the SHIFT intelligent solution is a standardized solution created for business scenarios in different industries based on the Seer AI platform technology and capabilities. During the reporting period, the FOURTH PARADIGM launched a variety of solutions for different application scenarios, and was applied to industries such as finance, retail, energy and electricity, medical care, operators, transportation, and academic translation.
Take professional publishing-grade translation services as an example. The solution is trained based on a translation termbase of hundreds of books in specialized fields, and the accuracy of the translations has reached publication level.
Another sector dependent on the main business ushered in positive growth. In the FOURTH PARADIGM, AIGS services accounted for 11.1% of total revenue, and achieved revenue of 0.359 billion yuan during the reporting period, an increase of 17% over the previous year. Regarding this business process, the FOURTH PARADIGM indicates that the company has iterated and optimized product functions and application effects such as AIGSBuilder, an enterprise-level software restructuring assistant, and AIGScodex, an enterprise-level programming assistant, to create an enterprise-level development assistant.
According to the announcement, AigsBuilder products currently have AI agents, no-code programming, and multi-tool calling capabilities, which is conducive to lowering the development threshold. The company's other product, AIGS CodeX, has technical characteristics and coding style for enterprise-level customers, creating enterprise private code warehouse integration, which is conducive to code efficiency improvement.
