Aurora Mobile Limited Announces Fourth Quarter and Fiscal Year 2019 Unaudited Financial Results
Fourth Quarter 2019 Financial Highlights
- Revenues were
RMB182.8 million (US$26.3 million ), a decrease of 19% year-over-year and 10% quarter-over-quarter. - Cost of revenues was
RMB122.5 million (US$17.6 million ), a decrease of 25% year-over-year and 16% quarter-over-quarter. - Gross profit was
RMB60.3 million (US$8.7 million ), a decrease of 3% year-over-year, and an increase of 6% quarter-over-quarter. - Total operating expenses were
RMB103.3 million (US$14.8 million ), an increase of 19% year-over-year and a decrease of 7% quarter-over-quarter. - Net loss was
RMB40.3 million (US$5.8 million ), compared with a net loss ofRMB23.6 million for the same period last year, and a net loss ofRMB31.7 million for the third quarter of 2019. - Adjusted net loss (non-GAAP) was
RMB21.0 million (US$3.0 million ), compared with aRMB12.5 million adjusted net loss for the same period last year, and aRMB37.6 million adjusted net loss for the third quarter of 2019. - Adjusted EBITDA (non-GAAP) was negative
RMB8.9 million (US$1.3 million ), compared with negativeRMB3.5 million for the same period last year, and negativeRMB26.0 million for the third quarter of 2019.
Fiscal Year 2019 Financial Highlights
- Revenues were
RMB906.5 million (US$130.2 million ), an increase of 27% year-over-year. - Cost of revenues was
RMB649.7 million (US$93.3 million ), an increase of 26% year-over-year. - Gross profit was
RMB256.7 million (US$36.9 million ), an increase of 30% year-over-year. - Total operating expenses were
RMB404.1 million (US$58.0 million ), an increase of 39% year-over-year. - Net loss was
RMB110.0 million (US$15.8 million ), compared with net loss ofRMB66.2 million in 2018. - Adjusted net loss (non-GAAP) was
RMB73.7million (US$10.6 million ), compared with aRMB62.9 million adjusted net loss in 2018. - Adjusted EBITDA (non-GAAP) was negative
RMB29.8 million (US$4.3 million ), compared with negativeRMB37.5 million in 2018.
Fourth 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 1,452,000 as of
December 31, 2019 from approximately 1,076,000 as ofDecember 31, 2018 . - Number of monthly active unique mobile devices increased to 1.36 billion in
December 2019 from 1.04 billion inDecember 2018 . - Cumulative SDK installations increased to 33.6 billion as of
December 31, 2019 from 19.8 billion as ofDecember 31, 2018 . - Number of paying customers increased to 2,131 in the fourth quarter of 2019 from 2,096 in the fourth quarter of 2018.
Mr.
“We are making significant progress in terms of mobile solutions penetration and adoption of our services. The number of mobile apps utilizing at least one of our developer services, or the cumulative app installations, reached 1.45 million as of
“Our overall financial performance during the quarter improved materially on a sequential basis. Not only did we significantly improve our gross margin, we also improved our cost structure which expanded our bottom line sequentially. As a result, adjusted EBITDA was negative
“In terms of the specific performance of each business segment, targeted marketing revenue decreased 34% year-over-year and 18% sequentially to
Mr.
“Revenues from our SaaS products, which include financial risk management, market intelligence and iZone, continue to generate solid growth and resulted in a 15% increase year-over-year from
“Together, our SaaS-nature developer services and SaaS products generated
Mr.
“Gross margins for the fourth quarter of 2019 increased meaningfully to 33.0% from 28.2% last quarter, and from 27.6% during the same period last year. This was a direct result of our optimized product mix where developer services and SaaS-based products are able to generate much higher gross margins and contribute a larger percentage of revenues. As a percentage of revenue, developer services and SaaS-based products accounted for 34% during the quarter, a significant increase from 19% during the same period last year. At the same time, we are also seeing margins improve across our targeted marketing business as it benefits from the ongoing transition to the new advertising-driven SaaS-model. This improvement in the margin from our targeted marketing business also helped increase our overall gross margin during the quarter. The net effect of our unfolding strategy is that, despite a 10% decline in revenue sequentially, gross margin in absolute dollar amount increased 6% sequentially which reflects the direction we are headed in as we scale the business further.”
“While we continue to operate in a challenging business environment that has been further impacted by the outbreak of COVID-19, we remain confident in our ability to drive growth in our high-margin businesses, and execute and implement effective cost control measures. As of
Fourth Quarter 2019 Financial Results
Revenues were
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
RMB43.9 million (US$6.3 million ), an increase of 7% fromRMB41.1 million in the same quarter of last year, mainly due to aRMB2.5 million increase in depreciation of servers, and aRMB0.8 million increase in personnel costs. - Sales and marketing expenses were
RMB30.5 million (US$4.4 million ), an increase of 48% fromRMB20.6 million in the same quarter of last year, mainly due to aRMB5.8 million increase in personnel costs, aRMB2.4 million increase in marketing expenses, and aRMB0.7 million increase in lease and office expenses. - General and administrative expenses were
RMB28.8 million (US$4.1 million ), an increase of 15% fromRMB25.1 million in the same quarter of last year, mainly due to aRMB6.7 million increase in personnel costs, aRMB1.3 million increase in bad debt allowance, and aRMB4.1 million decrease in professional fees. - Loss from operations was
RMB43.0 million (US$6.2 million ), compared withRMB 24.5 million in the same quarter of last year.
Net Loss was
Adjusted net loss (non-GAAP) was
Adjusted EBITDA (non-GAAP) was negative
The cash and cash equivalents, restricted cash and short -term investment increased from
Fiscal Year 2019 Financial Results
Revenues were
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
RMB176.2 million (US$25.3 million ), an increase of 31% fromRMB134.4 million in last year, mainly due to increases in personnel costs byRMB22.4 million , depreciation of servers byRMB11.5 million , and lease and office expense byRMB4.4 million .
- Sales and marketing expenses were
RMB 118.5 million (US$17.0 million ), an increase of 41% fromRMB83.9 million last year, mainly due to increases in the personnel costs byRMB16.5 million , marketing expenses byRMB9.0 million , and lease and office expense byRMB3.9 million .
- General and administrative expenses were
RMB109.3 million (US$15.7 million ), an increase of 53% fromRMB71.6 million in last year, mainly due to increases in personnel costs byRMB20.8 million and bad debt provision ofRMB13.9 million .
Loss from operations was
Net Loss was
Adjusted net loss (non-GAAP) was
Adjusted EBITDA (non-GAAP) was negative
Business Outlook
The first quarter is typically a seasonally weaker quarter of the year due to the
At the same time, the Company is in the midst of the transition from its traditional targeted marketing business to the new advertising-driven SaaS-model which will also impact topline revenue but expand margins. During the transition, revenue growth will not be comparable to previous quarters and will not accurately reflect the progress the Company has made or its business outlook. With these in mind, the Company has decided to suspend issuing revenue guidance on a quarterly basis in the near-term until the situation in
Update on Share Repurchase
As of
Conference Call
The Company will host an earnings conference call on
Dial-in details for the live conference call are as follows:
International: | +65 6713-5090 |
+1 845-675-0437 | |
+852 3018-6771 | |
400-620-8038 | |
Passcode: | 7148275 |
A telephone replay of the call will be available after the conclusion of the conference call through
The dial-in details for the replay are as follows:
International: | +61 2 8199 0299 |
1-855-452-5696 | |
Passcode: | 7148275 |
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
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
The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest
Reconciliations of the non-GAAP financial measures to the most comparable
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
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
Ms.
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
Footnote:
This announcement contains translations of certain RMB amounts into
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)
Three months ended | Twelve months ended | |||||||||||||||||||
2018 | 2019 | 2019 | 2018 | 2019 | ||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
Revenues | 225,853 | 201,951 | 182,763 | 26,252 | 714,141 | 906,458 | 130,205 | |||||||||||||
Cost of revenues | (163,554 | ) | (145,076 | ) | (122,501 | ) | (17,596 | ) | (517,074 | ) | (649,719 | ) | (93,326 | ) | ||||||
Gross profit | 62,299 | 56,875 | 60,262 | 8,656 | 197,067 | 256,739 | 36,879 | |||||||||||||
Operating expenses | ||||||||||||||||||||
Research and development | (41,134 | ) | (43,295 | ) | (43,946 | ) | (6,312 | ) | (134,358 | ) | (176,248 | ) | (25,316 | ) | ||||||
Sales and marketing | (20,637 | ) | (30,478 | ) | (30,507 | ) | (4,382 | ) | (83,853 | ) | (118,548 | ) | (17,028 | ) | ||||||
General and administrative | (25,067 | ) | (37,679 | ) | (28,823 | ) | (4,140 | ) | (71,641 | ) | (109,291 | ) | (15,699 | ) | ||||||
Total operating expenses | (86,838 | ) | (111,452 | ) | (103,276 | ) | (14,834 | ) | (289,852 | ) | (404,087 | ) | (58,043 | ) | ||||||
Loss from operations | (24,539 | ) | (54,577 | ) | (43,014 | ) | (6,178 | ) | (92,785 | ) | (147,348 | ) | (21,164 | ) | ||||||
Foreign exchange (loss)/gain, net | 338 | 499 | (61 | ) | (9 | ) | 264 | 434 | 62 | |||||||||||
Interest income | 2,553 | 1,395 | 1,334 | 192 | 3,657 | 6,300 | 905 | |||||||||||||
Interest expense | (2,598 | ) | (2,858 | ) | (2,905 | ) | (417 | ) | (7,054 | ) | (11,118 | ) | (1,597 | ) | ||||||
Other income | 641 | 23,308 | 3,465 | 498 | 8,449 | 38,812 | 5,575 | |||||||||||||
Change in fair value of derivative liability/asset | — | 662 | 886 | 127 | 21,302 | 3,117 | 448 | |||||||||||||
Loss before income taxes | (23,605 | ) | (31,571 | ) | (40,295 | ) | (5,787 | ) | (66,167 | ) | (109,803 | ) | (15,771 | ) | ||||||
Income tax expenses | (35 | ) | (162 | ) | — | — | (30 | ) | (162 | ) | (23 | ) | ||||||||
Net loss | (23,640 | ) | (31,733 | ) | (40,295 | ) | (5,787 | ) | (66,197 | ) | (109,965 | ) | (15,794 | ) | ||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (continued)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)
Three months ended | Twelve months ended | |||||||||||||||||||
2018 | 2019 | 2019 | 2018 | 2019 | ||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (23,640 | ) | (31,733 | ) | (40,295 | ) | (5,787 | ) | (66,197 | ) | (109,965 | ) | (15,794 | ) | ||||||
Accretion of contingently redeemable convertible preferred shares | — | — | — | — | (24,094 | ) | — | — | ||||||||||||
Net loss attributable to common shareholders | (23,640 | ) | (31,733 | ) | (40,295 | ) | (5,787 | ) | (90,291 | ) | (109,965 | ) | (15,794 | ) | ||||||
Net loss per share, for Class A and Class B common shares: | ||||||||||||||||||||
Common Shares - basic and diluted | — | — | — | — | — | — | — | |||||||||||||
Class A Common Shares - basic and diluted | (0.31 | ) | (0.42 | ) | (0.53 | ) | (0.08 | ) | (1.57 | ) | (1.44 | ) | (0.21 | ) | ||||||
Class B Common Shares - basic and diluted | (0.31 | ) | (0.42 | ) | (0.53 | ) | (0.08 | ) | (1.57 | ) | (1.44 | ) | (0.21 | ) | ||||||
Shares used in net loss per share computation: | ||||||||||||||||||||
Common Shares - basic and diluted | — | — | — | — | — | — | — | |||||||||||||
Class A Common Shares - basic and diluted | 59,586,062 | 59,236,116 | 59,482,301 | 59,482,301 | 40,441,999 | 59,373,554 | 59,373,554 | |||||||||||||
Class B Common Shares - basic and diluted | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 | |||||||||||||
Other comprehensive loss | ||||||||||||||||||||
Foreign currency translation adjustments | 9,212 | (5,641 | ) | (654 | ) | (94 | ) | 11,688 | (2,104 | ) | (302 | ) | ||||||||
Total other comprehensive loss, net of tax | 9,212 | (5,641 | ) | (654 | ) | (94 | ) | 11,688 | (2,104 | ) | (302 | ) | ||||||||
Comprehensive loss | (14,428 | ) | (37,374 | ) | (40,949 | ) | (5,881 | ) | (54,509 | ) | (112,069 | ) | (16,096 | ) | ||||||
Comprehensive loss attributable to |
(14,428 | ) | (37,374 | ) | (40,949 | ) | (5,881 | ) | (54,509 | ) | (112,069 | ) | (16,096 | ) |
(1) | Starting from The impact for twelve months ended |
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
As of | ||||||||
2018 | 2019 | |||||||
RMB | RMB | US$ | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 576,562 | 431,459 | 61,975 | |||||
Restricted cash | 115 | 115 | 17 | |||||
Accounts receivable | 141,911 | 137,195 | 19,707 | |||||
Prepayments and other current assets | 80,578 | 86,035 | 12,359 | |||||
Amounts due from related parties | 4,564 | 521 | 75 | |||||
Total current assets | 803,730 | 655,325 | 94,133 | |||||
Non-current assets: | ||||||||
Other non-current assets | 14,237 | 2,642 | 378 | |||||
Long-term investments | 79,696 | 168,637 | 24,223 | |||||
Property and equipment, net | 92,874 | 106,235 | 15,260 | |||||
Intangible assets, net | 1,531 | 8,810 | 1,265 | |||||
Total non-current assets | 188,338 | 286,324 | 41,126 | |||||
Total assets | 992,068 | 941,649 | 135,259 | |||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | 18,811 | 19,996 | 2,872 | |||||
Deferred revenue and customer deposits | 59,483 | 79,339 | 11,396 | |||||
Accrued liabilities and other current liabilities | 76,666 | 96,409 | 13,848 | |||||
Amounts due to related parties | 8,864 | 56 | 8 | |||||
Total current liabilities | 163,824 | 195,800 | 28,124 | |||||
Non-current liabilities: | ||||||||
Other non-current liabilities | 140 | 64 | 9 | |||||
Deferred revenue | 10,265 | 8,150 | 1,171 | |||||
Convertible notes | 216,179 | 230,031 | 33,042 | |||||
Total non-current liabilities | 226,584 | 238,245 | 34,222 | |||||
Total liabilities | 390,408 | 434,045 | 62,346 | |||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (continued)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)
As of | |||||||||
2018 | 2019 | ||||||||
RMB | RMB | US$ | |||||||
Shareholders’ equity | |||||||||
Common shares | 48 | 48 | 7 | ||||||
(3,165 | ) | (1,999 | ) | (287 | ) | ||||
Additional paid-in capital | 944,500 | 956,723 | 137,425 | ||||||
Accumulated deficit | (348,123 | ) | (453,463 | ) | (65,136 | ) | |||
Accumulated other comprehensive loss | 8,400 | 6,295 | 904 | ||||||
Total shareholders’ equity | 601,660 | 507,604 | 72,913 | ||||||
Total liabilities and shareholders’ equity | 992,068 | 941,649 | 135,259 | ||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
Three months ended | Twelve months ended | ||||||||||||||||||||
2018 | 2019 | 2019 | 2018 | 2019 | |||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
Reconciliation of Net Loss to Adjusted Net Loss: | |||||||||||||||||||||
Net loss | (23,640 | ) | (31,733 | ) | (40,295 | ) | (5,787 | ) | (66,197 | ) | (109,965 | ) | (15,794 | ) | |||||||
Add: | |||||||||||||||||||||
Share-based compensation | 11,174 | 8,384 | 13,115 | 1,884 | 24,561 | 47,284 | 6,792 | ||||||||||||||
Change in fair value of derivative liability /asset | — | — | — | — | (21,302 | ) | — | — | |||||||||||||
Reduction in force charges | — | — | 6,158 | 885 | — | 6,158 | 885 | ||||||||||||||
Fair value gain of long-term investment | — | (14,255 | ) | — | — | — | (17,231 | ) | (2,475 | ) | |||||||||||
Adjusted net loss | (12,466 | ) | (37,604 | ) | (21,022 | ) | (3,018 | ) | (62,938 | ) | (73,754 | ) | (10,592 | ) | |||||||
Reconciliation of Net Loss to Adjusted EBITDA: | |||||||||||||||||||||
Net loss | (23,640 | ) | (31,733 | ) | (40,295 | ) | (5,787 | ) | (66,197 | ) | (109,965 | ) | (15,794 | ) | |||||||
Add: | |||||||||||||||||||||
Interest expense | 2,598 | 2,858 | 2,905 | 417 | 7,054 | 11,118 | 1,597 | ||||||||||||||
Depreciation of property and equipment | 6,160 | 7,976 | 8,508 | 1,222 | 18,084 | 30,391 | 4,365 | ||||||||||||||
Amortization of intangible assets | 183 | 604 | 713 | 102 | 308 | 2,307 | 331 | ||||||||||||||
Income tax expense | 35 | 162 | — | — | 30 | 162 | 23 | ||||||||||||||
EBITDA | (14,664 | ) | (20,133 | ) | (28,169 | ) | (4,046 | ) | (40,721 | ) | (65,987 | ) | (9,478 | ) | |||||||
Add: | |||||||||||||||||||||
Share-based compensation | 11,174 | 8,384 | 13,115 | 1,884 | 24,561 | 47,284 | 6,792 | ||||||||||||||
Change in fair value of derivative liability /asset | — | — | — | — | (21,302 | ) | — | — | |||||||||||||
Reduction in force charges | — | — | 6,158 | 885 | — | 6,158 | 885 | ||||||||||||||
Fair value gain of long-term investment | — | (14,255 | ) | — | — | — | (17,231 | ) | (2,475 | ) | |||||||||||
Adjusted EBITDA | (3,490 | ) | (26,004 | ) | (8,896 | ) | (1,277 | ) | (37,462 | ) | (29,776 | ) | (4,276 | ) |
(2) | Reduction in force charges for the three and twelve months ended |
Source: Aurora Mobile Limited