Aurora Mobile Limited Announces First Quarter 2019 Unaudited Financial Results
First Quarter 2019 Financial Highlights
- Revenues were
RMB230.5 million (US$34.3 million ), an increase of 82% year-over-year. - Cost of revenues was
RMB167.2 million (US$25 million ), an increase of 82% year-over-year. - Gross profit was
RMB63.3 million (US$9.4 million ), an increase of 83% year-over-year. - Total operating expenses were
RMB94.2 million (US$14 million ), an increase of 70% year-over-year. - Net loss was
RMB23.7 million (US$3.5 million ), compared with net loss ofRMB22.1 million for the same period of last year. - Adjusted EBITDA (non-GAAP) was negative
RMB7.4 million (US$1.1 million ), compared with negativeRMB15.9 million for the same period of last year.
First Quarter 2019 Operational Highlights
- Number of mobile apps utilizing at least one of the Company’s developer services, or the cumulative app installations, increased to approximately 1,165,000 as of
March 31, 2019 from approximately 785,000 as ofMarch 31, 2018 . - Number of monthly active unique mobile devices increased to 1.07 billion in
March 2019 from 925 million inMarch 2018 . - Cumulative SDK installations increased to 22.7 billion as of
March 31, 2019 from 13.1 billion as ofMarch 31, 2018 . - Number of paying customers increased to 1,951 in the first quarter of 2019 from 1,348 in the first quarter of 2018.
Mr.
“The number of monthly active unique devices we covered increased from 925 million in
“This healthy and steady growth of our operational data as well as a higher number of paying customers and average spending per paying customer drove revenue growth during the quarter. Revenues came in at
Mr.
“Within data solutions, targeted marketing revenue grew 90% year-over-year to
Mr.
First Quarter 2019 Financial Results
Revenues were
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
RMB42.7 million (US$6.4 million ), an increase of 75% fromRMB24.4 million in the same quarter of last year, mainly due to increases in staff cost byRMB10.6 million , bandwidth and cloud costs byRMB2.9 million , and depreciation of servers byRMB2.3 million .
- Sales and marketing expenses were
RMB27.0 million (US$4 million ), an increase of 55% fromRMB17.4 million in the same quarter of last year, mainly due to an increase in the staff cost byRMB5.4 million and marketing expense ofRMB1.7 million .
- General and administrative expenses were
RMB24.5 million (US$3.6 million ), an increase of 80% fromRMB13.6 million in the same quarter of last year, mainly due to increases in staff cost byRMB4.8 million , bad debts provision ofRMB3.1 million and professional fees byRMB1.5 million .
Loss from operations was
Net Loss was
Adjusted net loss (non-GAAP) was negative
Adjusted EBITDA (non-GAAP) was negative
As of
Business Outlook
For the second quarter of 2019, the Company expects total revenues to be between
The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.
Update on Share Repurchase
As of
Conference Call
The Company will host an earnings conference call on Thursday, June 6, 2019 at 7:00 a.m. U.S. Eastern Time (
Dial-in details for the live conference call are as follows:
International: | +65 6713-5090 |
U.S.: | +1 845-675-0437 |
Hong Kong: | +852 3018-6771 |
China: | 400-620-8038 |
Passcode: | 9728075 |
A telephone replay of the call will be available after the conclusion of the conference call through 9:00 p.m. U.S. Eastern Time, June 13, 2019.
The dial-in details for the replay are as follows:
International: | +61 2 8199 0299 |
U.S. Toll Free: | 1-855-452-5696 |
Passcode: | 9728075 |
A live and archived webcast of the conference call will be available on the Investor Relations section of Aurora Mobile’s website at http://ir.jiguang.cn/.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses two non-GAAP measures, adjusted net loss and adjusted EBITDA, as a supplemental measure to review and assess its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net loss as net loss excluding share-based compensation and change in fair value of derivative liability. The Company defines adjusted EBITDA as net loss excluding interest expense, depreciation of property and equipment, amortization of intangible assets, income tax (expense) benefit, share-based compensation and change in fair value of derivate liability.
The Company believes that adjusted net loss and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in loss from operations and net loss.
The Company believes that adjusted net loss and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net loss and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.
The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.
Reconciliations of the non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements.
About
Founded in 2011,
For more information, please visit http://ir.jiguang.cn/
For investor and media inquiries, please contact:
ir@jiguang.cn
Christensen
In
Mr.
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In U.S.
Ms.
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
---------
Footnote:
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
Three months ended | |||||||||||||
March 31, | December 31, | March 31, | |||||||||||
2018 | 2018 | 2019 | |||||||||||
RMB | RMB | RMB | US$ | ||||||||||
Revenues | 126,392 | 225,853 | 230,519 | 34,348 | |||||||||
Cost of revenues | (91,802 | ) | (163,554 | ) | (167,232 | ) | (24,918 | ) | |||||
Gross profit | 34,590 | 62,299 | 63,287 | 9,430 | |||||||||
Operating expenses | |||||||||||||
Research and development | (24,413 | ) | (41,134 | ) | (42,658 | ) | (6,356 | ) | |||||
Sales and marketing | (17,431 | ) | (20,637 | ) | (27,013 | ) | (4,025 | ) | |||||
General and administrative | (13,587 | ) | (25,067 | ) | (24,491 | ) | (3,649 | ) | |||||
Total operating expenses | (55,431 | ) | (86,838 | ) | (94,162 | ) | (14,030 | ) | |||||
Loss from operations | (20,841 | ) | (24,539 | ) | (30,875 | ) | (4,600 | ) | |||||
Foreign exchange (loss) gain, net | (1,419 | ) | 338 | (43 | ) | (6 | ) | ||||||
Interest income | 59 | 2,553 | 2,086 | 311 | |||||||||
Interest expense | (60 | ) | (2,598 | ) | (2,622 | ) | (391 | ) | |||||
Other income | 118 | 641 | 6,726 | 1,002 | |||||||||
Change in fair value of derivative asset | - | - | 985 | 147 | |||||||||
Loss before income taxes | (22,143 | ) | (23,605 | ) | (23,743 | ) | (3,537 | ) | |||||
Income tax (expenses)/benefit | 5 | (35 | ) | - | - | ||||||||
Net loss | (22,138 | ) | (23,640 | ) | (23,743 | ) | (3,537 | ) |
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (continued)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)
Three months ended | |||||||||||||
March 31, | December 31, | March 31, | |||||||||||
2018 | 2018 | 2019 | |||||||||||
RMB | RMB | RMB | US$ | ||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (22,138 | ) | (23,640 | ) | (23,743 | ) | (3,537 | ) | |||||
Accretion of contingently redeemable convertible preferred shares | (10,877 | ) | - | - | - | ||||||||
Net loss attributable to common shareholders | (33,015 | ) | (23,640 | ) | (23,743 | ) | (3,537 | ) | |||||
Net loss per share: | |||||||||||||
Basic | (0.77 | ) | (0.31 | ) | (0.31 | ) | (0.05 | ) | |||||
Diluted | (0.77 | ) | (0.31 | ) | (0.31 | ) | (0.05 | ) | |||||
Shares used in net loss per share computation: | |||||||||||||
Basic | 42,666,670 | 76,586,251 | 76,503,810 | 76,503,810 | |||||||||
Diluted | 42,666,670 | 76,586,251 | 76,503,810 | 76,503,810 | |||||||||
Other comprehensive loss | |||||||||||||
Foreign currency translation adjustments | (3,625 | ) | 9,212 | (8,128 | ) | (1,211 | ) | ||||||
Total other comprehensive loss, net of tax | (3,625 | ) | 9,212 | (8,128 | ) | (1,211 | ) | ||||||
Comprehensive loss | (25,763 | ) | (14,428 | ) | (31,871 | ) | (4,748 | ) | |||||
Comprehensive loss attributable to Aurora Mobile Limited | (25,763 | ) | (14,428 | ) | (31,871 | ) | (4,748 | ) |
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
As of | ||||||
December 31, 2018 | March 31, 2019 | |||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 576,562 | 284,933 | 42,456 | |||
Restricted cash | 115 | 115 | 17 | |||
Derivative assets | - | 985 | 147 | |||
Short-term investment | - | 180,000 | 26,821 | |||
Accounts receivable | 141,911 | 207,809 | 30,965 | |||
Prepayments and other current assets | 80,578 | 112,423 | 16,752 | |||
Amounts due from related parties | 4,564 | 2,884 | 430 | |||
Total current assets | 803,730 | 789,149 | 117,588 | |||
Non-current assets: | ||||||
Other non-current assets | 14,237 | 13,695 | 2,041 | |||
Long-term investments | 79,696 | 84,188 | 12,544 | |||
Property and equipment, net | 92,874 | 112,708 | 16,794 | |||
Intangible assets, net | 1,531 | 9,177 | 1,367 | |||
Total non-current assets | 188,338 | 219,768 | 32,746 | |||
Total assets | 992,068 | 1,008,917 | 150,334 | |||
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
||||||
Current liabilities: | ||||||
Accounts payable | 18,811 | 37,389 | 5,571 | |||
Deferred revenue and customer deposits | 59,483 | 64,905 | 9,672 | |||
Accrued liabilities and other current liabilities | 76,666 | 99,180 | 14,778 | |||
Amounts due to related parties | 8,864 | 4,840 | 721 | |||
Total current liabilities | 163,824 | 206,314 | 30,742 | |||
Non-current liabilities: | ||||||
Other non-current liabilities | 140 | 140 | 21 | |||
Deferred revenue | 10,265 | 9,520 | 1,419 | |||
Convertible notes | 216,179 | 214,535 | 31,967 | |||
Total non-current liabilities | 226,584 | 224,195 | 33,407 | |||
Total liabilities | 390,408 | 430,509 | 64,149 |
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (continued)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)
As of | |||||||||
December 31, 2018 | March 31, 2019 | ||||||||
RMB | RMB | US$ | |||||||
Shareholders’ (deficit) equity |
|||||||||
Common shares | 48 | 48 | 7 | ||||||
Treasury shares | (3,165 | ) | (11,502 | ) | (1,714 | ) | |||
Additional paid-in capital | 944,500 | 953,599 | 142,091 | ||||||
Accumulated deficit | (348,123 | ) | (371,865 | ) | (55,410 | ) | |||
Accumulated other comprehensive loss | 8,400 | 8,128 | 1,211 | ||||||
Total shareholders’ (deficit) equity | 601,660 | 578,408 | 86,185 | ||||||
Total liabilities, mezzanine equity and shareholders’ deficit | 992,068 | 1,008,917 | 150,334 |
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
Three months ended | |||||||||||||
March 31, | December 31, | March 31, | |||||||||||
2018 | 2018 | 2019 | |||||||||||
RMB | RMB | RMB | US$ | ||||||||||
Reconciliation of Net Loss to Adjusted Net Loss: | |||||||||||||
Net loss | (22,138 | ) | (23,640 | ) | (23,743 | ) | (3,537 | ) | |||||
Add: | |||||||||||||
Share-based compensation | 2,837 | 11,174 | 10,036 | 1,495 | |||||||||
Fair value loss/(gain) of long-term investment | - | - | (2,976 | ) | (443 | ) | |||||||
Adjusted net loss | (19,301 | ) | (12,466 | ) | (16,683 | ) | (2,485 | ) | |||||
Reconciliation of Net Loss to Adjusted EBITDA: |
|||||||||||||
Net loss | (22,138 | ) | (23,640 | ) | (23,743 | ) | (3,537 | ) | |||||
Add: | |||||||||||||
Interest expense | 60 | 2,598 | 2,622 | 391 | |||||||||
Depreciation of property and equipment | 3,310 | 6,160 | 6,296 | 938 | |||||||||
Amortization of intangible assets | 27 | 183 | 352 | 52 | |||||||||
Income tax benefit | (5 | ) | 35 | - | - | ||||||||
EBITDA | (18,746 | ) | (14,664 | ) | (14,473 | ) | (2,156 | ) | |||||
Add: | |||||||||||||
Share-based compensation | 2,837 | 11,174 | 10,036 | 1,495 | |||||||||
Fair value loss/(gain) of long-term investment | - | - | (2,976 | ) | (443 | ) | |||||||
Adjusted EBITDA | (15,909 | ) | (3,490 | ) | (7,413 | ) | (1,104 | ) |
Source: Aurora Mobile Limited