Aurora Mobile Limited Announces Fourth Quarter and Fiscal Year 2018 Unaudited Financial Results
Fourth Quarter 2018 Financial Highlights
- Revenues were
RMB225.9 million (US$32.8 million ), an increase of 102% year-over-year. - Cost of revenues was
RMB163.6 million (US$23.8 million ), an increase of 106% year-over-year. - Gross profit was
RMB62.3 million (US$9.1 million ), an increase of 90% year-over-year. - Total operating expenses were
RMB86.8 million (US$12.6 million ), an increase of 84% year-over-year. - Net loss was
RMB23.6 million (US$3.4 million ), compared with net loss ofRMB14.8 million for the same period of last year. - Adjusted EBITDA (non-GAAP) was negative
RMB3.5 million (US$0.5 million ), compared with negativeRMB10.2 million for the same period of last year.
Fiscal Year 2018 Financial Highlights
- Revenues were
RMB714.1 million (US$103.9 million ), an increase of 151% year-over-year. - Cost of revenues was
RMB517.1 million (US$75.2 million ), an increase of 142% year-over-year. - Gross profit was
RMB197.1 million (US$28.7 million ), an increase of 176% year-over-year. - Total operating expenses were
RMB289.9 million (US$42.2 million ), an increase of 77% year-over-year. - Net loss was
RMB66.2 million (US$9.6 million ), compared with net loss ofRMB90.3 million in 2017. - Adjusted EBITDA (non-GAAP) was negative
RMB37.5 million (US$5.5 million ), compared with negativeRMB77.0 million in 2017.
Fourth Quarter 2018 Operational Highlights
- Number of mobile apps utilizing at least one of the Company’s developer services, or the cumulative app installations, increased to approximately 1,076,000 as of
December 31, 2018 from approximately 707,000 as ofDecember 31, 2017 . - Number of monthly active unique mobile devices increased to 1.04 billion in
December 2018 from 864 million inDecember 2017 . - Cumulative SDK installations increased to 19.8 billion as of
December 31, 2018 from 11.4 billion as ofDecember 31, 2017 . - Number of paying customers increased to 2,096 in the fourth quarter of 2018 from 1,379 in the fourth quarter of 2017.
Mr.
The number of monthly active unique devices we covered increased from 864 million in
The number of paying customers increased from 1,877 last quarter and 1,379 during the fourth quarter of 2017 to 2,096 in the fourth quarter of 2018.”
“With this solid foundation in our operations, the fourth quarter revenues grew to
Mr.
Within Data Solutions, targeted marketing revenue increased by 111% from
Other vertical data solutions revenues increased by 93% year-over-year from
Mr.
Fourth Quarter 2018 Financial Results
Revenues were
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
RMB41.1 million (US$6.0 million ), an increase of 91% fromRMB21.5 million in the same quarter of last year, mainly due to increases in staff cost byRMB12.0 million , bandwidth and cloud cost byRMB3.5 million , and depreciation of servers byRMB2.1 million .
- Sales and marketing expenses were
RMB20.6 million (US$3.0 million ), an increase of 20% fromRMB17.2 million in the same quarter of last year, mainly due to an increase in the staff cost byRMB1.9 million and marketing expense ofRMB0.8 million ..
- General and administrative expenses were
RMB25.1 million (US$3.6 million ), an increase of 195% fromRMB8.5 million in the same quarter of last year, mainly due to increases in professional fees byRMB7.6 million and staff cost byRMB6.8 million .
Loss from operations was
Net Loss was
Adjusted net loss (non-GAAP) was negative
Adjusted EBITDA (non-GAAP) was negative
As of
Fiscal Year 2018 Financial Results
Revenues were
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
RMB134.4 million (US$19.5 million ), an increase of 87% fromRMB71.7 million in last year, mainly due to increases in staff cost byRMB42.3 million , bandwidth and cloud cost byRMB10.2 million , and depreciation of servers byRMB5.5 million .
- Sales and marketing expenses were
RMB83.9 million (US$12.2 million ), an increase of 41% fromRMB59.7 million last year, mainly due to increases in staff cost byRMB19.4 million and marketing expenses byRMB2.6 million .
- General and administrative expenses were
RMB71.6 million (US$10.4 million ), an increase of 121% fromRMB32.4 million in last year, mainly due to increases in professional fees byRMB13.9 million , staff cost byRMB14.3 million and bad debt provision ofRMB4.0 million .
Loss from operations was
Net Loss was
Adjusted net loss (non-GAAP) was
Adjusted EBITDA (non-GAAP) was negative
Business Outlook
For the first 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
On
As of
Conference Call
The Company will host an earnings conference call on Thursday, February 28, 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: | 4554219 | |
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, March 15, 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: | 4554219 |
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 measures 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
AURORA MOBILE LIMITED | |||||||||||||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||||||||||||||||
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) | |||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||
2017 | 2018 |
2018 |
2017 |
2018 |
|||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
Revenues | 112,070 | 196,771 | 225,853 | 32,849 | 284,709 | 714,141 | 103,868 | ||||||||||||||
Cost of revenues | (79,275 | ) | (143,616 | ) | (163,554 | ) | (23,788 | ) | (213,370 | ) | (517,074 | ) | (75,205 | ) | |||||||
Gross profit | 32,795 | 53,155 | 62,299 | 9,061 | 71,339 | 197,067 | 28,663 | ||||||||||||||
Operating expenses | |||||||||||||||||||||
Research and development | (21,489 | ) | (37,200 | ) | (41,134 | ) | (5,983 | ) | (71,651 | ) | (134,358 | ) | (19,542 | ) | |||||||
Sales and marketing | (17,199 | ) | (24,156 | ) | (20,637 | ) | (3,002 | ) | (59,673 | ) | (83,853 | ) | (12,196 | ) | |||||||
General and administrative | (8,486 | ) | (17,554 | ) | (25,067 | ) | (3,645 | ) | (32,431 | ) | (71,641 | ) | (10,419 | ) | |||||||
Total operating expenses | (47,174 | ) | (78,910 | ) | (86,838 | ) | (12,630 | ) | (163,755 | ) | (289,852 | ) | (42,157 | ) | |||||||
Loss from operations | (14,379 | ) | (25,755 | ) | (24,539 | ) | (3,569 | ) | (92,416 | ) | (92,785 | ) | (13,494 | ) | |||||||
Foreign exchange (loss) gain, net | (550 | ) | 921 | 338 | 49 | (2,724 | ) | 264 | 38 | ||||||||||||
Interest income | 67 | 965 | 2,553 | 371 | 314 | 3,657 | 532 | ||||||||||||||
Interest expense | (56 | ) | (2,494 | ) | (2,598 | ) | (377 | ) | (122 | ) | (7,054 | ) | (1,026 | ) | |||||||
Other income | 120 | 5,772 | 641 | 93 | 677 | 8,449 | 1,229 | ||||||||||||||
Change in fair value of derivative liability | - | 12,008 | - | - | - | 21,302 | 3,098 | ||||||||||||||
Loss before income taxes | (14,798 | ) | (8,583 | ) | (23,605 | ) | (3,433 | ) | (94,271 | ) | (66,167 | ) | (9,623 | ) | |||||||
Income tax (expenses)/benefit | 11 | - | (35 | ) | (5 | ) | 3,980 | (30 | ) | (4 | ) | ||||||||||
Net loss | (14,787 | ) | (8,583 | ) | (23,640 | ) | (3,438 | ) | (90,291 | ) | (66,197 | ) | (9,627 | ) | |||||||
AURORA MOBILE LIMITED | |||||||||||||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (continued) | |||||||||||||||||||||
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data) | |||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||
2017 |
2018 |
2018 |
2017 |
2018 |
|||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (14,787 | ) | (8,583 | ) | (23,640 | ) | (3,438 | ) | (90,291 | ) | (66,197 | ) | (9,627 | ) | |||||||
Accretion of contingently redeemable convertible preferred shares | (6,098 | ) | (2,938 | ) | - | - | (26,391 | ) | (24,094 | ) | (3,504 | ) | |||||||||
Net loss attributable to common shareholders | (20,885 | ) | (11,521 | ) | (23,640 | ) | (3,438 | ) | (116,682 | ) | (90,291 | ) | (13,131 | ) | |||||||
Net loss per share: | |||||||||||||||||||||
Basic | (0.49 | ) | (0.17 | ) | (0.31 | ) | (0.05 | ) | (2.73 | ) | (1.57 | ) | (0.23 | ) | |||||||
Diluted | (0.49 | ) | (0.17 | ) | (0.31 | ) | (0.05 | ) | (2.73 | ) | (1.57 | ) | (0.23 | ) | |||||||
Shares used in net loss per share computation: | |||||||||||||||||||||
Basic | 42,666,670 | 67,374,846 | 76,586,251 | 76,586,251 | 42,666,670 | 57,442,188 | 57,442,188 | ||||||||||||||
Diluted | 42,666,670 | 67,374,846 | 76,586,251 | 76,586,251 | 42,666,670 | 57,442,188 | 57,442,188 | ||||||||||||||
Other comprehensive loss | |||||||||||||||||||||
Foreign currency translation adjustments | (1,776 | ) | 8,160 | 9,212 | 1,340 | (7,563 | ) | 11,688 | 1,700 | ||||||||||||
Total other comprehensive loss, net of tax | (1,776 | ) | 8,160 | 9,212 | 1,340 | (7,563 | ) | 11,688 | 1,700 | ||||||||||||
Comprehensive loss | (16,563 | ) | (423 | ) | (14,428 | ) | (2,098 | ) | (97,854 | ) | (54,509 | ) | (7,927 | ) | |||||||
Comprehensive loss attributable to Aurora Mobile Limited | (16,563 | ) | (423 | ) | (14,428 | ) | (2,098 | ) | (97,854 | ) | (54,509 | ) | (7,927 | ) | |||||||
AURORA MOBILE LIMITED | ||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET | ||||||
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) | ||||||
As of | ||||||
December 31, 2017 | December 31, 2018 |
|||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 208,161 | 576,562 | 83,857 | |||
Restricted cash | 115 | 115 | 17 | |||
Accounts receivable | 49,594 | 147,567 | 21,463 | |||
Prepayments and other current assets | 34,228 | 80,578 | 11,719 | |||
Amounts due from related parties | 1,260 | 4,564 | 664 | |||
Total current assets | 293,358 | 809,386 | 117,720 | |||
Non-current assets: | ||||||
Other non-current assets | 1,806 | 14,237 | 2,071 | |||
Long-term investments | 10,980 | 79,696 | 11,591 | |||
Property and equipment, net | 53,023 | 92,874 | 13,508 | |||
Intangible assets, net | 283 | 1,531 | 223 | |||
Total non-current assets | 66,092 | 188,338 | 27,393 | |||
Total assets | 359,450 | 997,724 | 145,113 | |||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT | ||||||
Current liabilities: | ||||||
Accounts payable | 8,340 | 18,811 | 2,736 | |||
Deferred revenue and customer deposits | 49,557 | 65,139 | 9,474 | |||
Accrued liabilities and other current liabilities | 52,639 | 76,666 | 11,151 | |||
Amounts due to related parties | 6,110 | 8,864 | 1,289 | |||
Total current liabilities | 116,646 | 169,480 | 24,650 | |||
Non-current liabilities: | ||||||
Other non-current liabilities | 216 | 140 | 20 | |||
Deferred tax liabilities | 5 | - | - | |||
Deferred revenue | 330 | 10,265 | 1,493 | |||
Convertible notes | - | 216,179 | 31,442 | |||
Total non-current liabilities | 551 | 226,584 | 32,955 | |||
Total liabilities | 117,197 | 396,064 | 57,605 | |||
AURORA MOBILE LIMITED | |||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (continued) | |||||||||
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data) | |||||||||
As of | |||||||||
December 31, 2017 | December 31, 2018 | ||||||||
RMB | RMB | US$ | |||||||
Mezzanine equity | 466,637 | - | - | ||||||
Shareholders’ (deficit) equity | |||||||||
Common shares | 26 | 48 | 7 | ||||||
Treasury shares | - | (3,165 | ) | (460 | ) | ||||
Additional paid-in capital | 13,689 | 944,500 | 137,372 | ||||||
Accumulated deficit | (234,810 | ) | (348,123 | ) | (50,632 | ) | |||
Accumulated other comprehensive loss | (3,289 | ) | 8,400 | 1,221 | |||||
Total shareholders’ (deficit) equity | (224,384 | ) | 601,660 | 87,508 | |||||
Total liabilities, mezzanine equity and shareholders’ deficit | 359,450 | 997,724 | 145,113 | ||||||
AURORA MOBILE LIMITED | |||||||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |||||||||||||||||||||
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) | |||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||
2017 |
2018 |
2018 |
2017 |
2018 |
|||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
Reconciliation of Net Loss to | |||||||||||||||||||||
Adjusted Net Loss: | |||||||||||||||||||||
Net loss | (14,787 | ) | (8,583 | ) | (23,640 | ) | (3,438 | ) | (90,291 | ) | (66,197 | ) | (9,627 | ) | |||||||
Add: | |||||||||||||||||||||
Share-based compensation | 1,767 | 6,493 | 11,174 | 1,625 | 8,275 | 24,561 | 3,572 | ||||||||||||||
Change in fair value of derivative liability | - | (12,008 | ) | - | - | - | (21,302 | ) | (3,098 | ) | |||||||||||
Adjusted net loss | (13,020 | ) | (14,098 | ) | (12,466 | ) | (1,813 | ) | (82,016 | ) | (62,938 | ) | (9,153 | ) | |||||||
Reconciliation of Net Loss to | |||||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||
Net loss | (14,787 | ) | (8,583 | ) | (23,640 | ) | (3,438 | ) | (90,291 | ) | (66,197 | ) | (9,627 | ) | |||||||
Add: | |||||||||||||||||||||
Interest expense | 56 | 2,494 | 2,598 | 377 | 122 | 7,054 | 1,026 | ||||||||||||||
Depreciation of property and equipment | 2,791 | 4,599 | 6,160 | 896 | 8,805 | 18,084 | 2,630 | ||||||||||||||
Amortization of intangible assets | 26 | 71 | 183 | 27 | 35 | 308 | 45 | ||||||||||||||
Income tax benefit | (11 | ) | - | 35 | 5 | (3,980 | ) | 30 | 4 | ||||||||||||
EBITDA | (11,925 | ) | (1,419 | ) | (14,664 | ) | (2,133 | ) | (85,309 | ) | (40,721 | ) | (5,922 | ) | |||||||
Add: | |||||||||||||||||||||
Share-based compensation | 1,767 | 6,493 | 11,174 | 1,625 | 8,275 | 24,561 | 3,572 | ||||||||||||||
Change in fair value of derivative liability | - | (12,008 | ) | - | - | - | (21,302 | ) | (3,098 | ) | |||||||||||
Adjusted EBITDA | (10,158 | ) | (6,934 | ) | (3,490 | ) | (508 | ) | (77,034 | ) | (37,462 | ) | (5,448 | ) |
Source: Aurora Mobile Limited