Aurora Mobile Limited Announces Third Quarter 2019 Unaudited Financial Results
Third Quarter 2019 Financial Highlights
- Revenues were
RMB202.0 million (US$28.3 million ), an increase of 3% year-over-year. - Cost of revenues was
RMB145.1 million (US$20.3 million ), an increase of 1% year-over-year. - Gross profit was
RMB56.9 million (US$8.0 million ), an increase of 7% year-over-year. - Total operating expenses were
RMB111.5 million (US$15.6 million ), an increase of 41% year-over-year. - Net loss was
RMB31.7 million (US$4.4 million ), compared with a net loss ofRMB8.6 million for the same period last year. - Adjusted net loss (non-GAAP) was
RMB37.6 million (US$5.3 million ), compared with aRMB14.1 million adjusted net loss for the same period last year - Adjusted EBITDA (non-GAAP) was negative
RMB26.0 million (US$3.6 million ), compared with negativeRMB6.9 million for the same period last year.
Third 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 1,386,000 as of
September 30, 2019 from approximately 991,000 as ofSeptember 30, 2018 . - Number of monthly active unique mobile devices increased to 1.34 billion in
September 2019 from 1.03 billion inSeptember 2018 . - Cumulative SDK installations increased to 30.8 billion as of
September 30, 2019 from 17.4 billion as ofSeptember 30, 2018 . - Number of paying customers increased to 2,312 from 1,877 in the third quarter of 2018.
Mr.
“Starting this quarter, we will begin breaking down revenue into three categories to better reflect our core strategic focus of serving app developers: developer services, SaaS products, and targeted marketing. Targeted marketing revenue decreased 8% year-over-year to
Mr.
“Revenues from our SaaS products, which include financial risk management, market intelligence and iZone, continue to show resilience and grew 52% from
“Together, our SaaS-nature developer services and SaaS products generated
Mr.
Third Quarter 2019 Financial Results
Revenues were
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
RMB43.3 million (US$6.1 million ), an increase of 16% fromRMB37.2 million in the same quarter of last year, mainly due to aRMB3.3 million increase in depreciation of servers, aRMB1.9 million increase in bandwidth costs, and aRMB0.5 million increase in personnel costs. - Sales and marketing expenses were
RMB30.5 million (US$4.3 million ), an increase of 26% fromRMB24.2 million in the same quarter of last year, mainly due to aRMB2.1 million increase in marketing expenses, aRMB1.3 million increase in personnel costs, and aRMB 1.1 million increase in lease and office expenses. - General and administrative expenses were
RMB37.7 million (US$5.3 million ), an increase of 115% fromRMB17.6 million in the same quarter of last year, mainly due to aRMB16.7 million increase in bad debt allowance, aRMB2.6 million increase in staff costs, and aRMB1.0 million increase in professional fees. - Loss from operations was
RMB54.6 million (US$7.6 million ), compared withRMB 25.8 million in the same quarter of last year.
Net Loss was
Adjusted net loss (non-GAAP) was
Adjusted EBITDA (non-GAAP) was negative
Through disciplined cash management, the cash and cash equivalents, restricted cash and short -term investment increased from
Business Outlook
For the full year 2019, the Company expects total revenues to be between
The above outlook is based on 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
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: | 3993899 |
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 |
U.S. Toll Free: | 1-855-452-5696 |
Passcode: | 3993899 |
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$”)
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||
Revenues | 196,771 | 291,225 | 201,951 | 28,254 | 488,288 | 723,695 | 101,249 | |||||||||||||||||||||
Cost of revenues | (143,616 | ) | (214,910 | ) | (145,076 | ) | (20,297 | ) | (353,520 | ) | (527,218 | ) | (73,761 | ) | ||||||||||||||
Gross profit | 53,155 | 76,315 | 56,875 | 7,957 | 134,768 | 196,477 | 27,488 | |||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Research and development | (37,200 | ) | (46,349 | ) | (43,295 | ) | (6,057 | ) | (93,224 | ) | (132,302 | ) | (18,510 | ) | ||||||||||||||
Sales and marketing | (24,156 | ) | (30,550 | ) | (30,478 | ) | (4,264 | ) | (63,216 | ) | (88,041 | ) | (12,317 | ) | ||||||||||||||
General and administrative | (17,554 | ) | (18,298 | ) | (37,679 | ) | (5,271 | ) | (46,574 | ) | (80,468 | ) | (11,258 | ) | ||||||||||||||
Total operating expenses | (78,910 | ) | (95,197 | ) | (111,452 | ) | (15,592 | ) | (203,014 | ) | (300,811 | ) | (42,085 | ) | ||||||||||||||
Loss from operations | (25,755 | ) | (18,882 | ) | (54,577 | ) | (7,635 | ) | (68,246 | ) | (104,334 | ) | (14,597 | ) | ||||||||||||||
Foreign exchange (loss)/gain, net | 921 | 39 | 499 | 70 | (74 | ) | 495 | 69 | ||||||||||||||||||||
Interest income | 965 | 1,485 | 1,395 | 195 | 1,104 | 4,966 | 695 | |||||||||||||||||||||
Interest expense | (2,494 | ) | (2,733 | ) | (2,858 | ) | (400 | ) | (4,455 | ) | (8,213 | ) | (1,149 | ) | ||||||||||||||
Other income | 5,772 | 5,313 | 23,308 | 3,261 | 7,809 | 35,347 | 4,945 | |||||||||||||||||||||
Change in fair value of derivative liability/asset | 12,008 | 584 | 662 | 93 | 21,302 | 2,231 | 312 | |||||||||||||||||||||
Loss before income taxes | (8,583 | ) | (14,194 | ) | (31,571 | ) | (4,416 | ) | (42,560 | ) | (69,508 | ) | (9,725 | ) | ||||||||||||||
Income tax (expenses)/benefit | — | — | (162 | ) | (23 | ) | 5 | (162 | ) | (23 | ) | |||||||||||||||||
Net loss | (8,583 | ) | (14,194 | ) | (31,733 | ) | (4,439 | ) | (42,555 | ) | (69,670 | ) | (9,748 | ) |
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (continued)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (8,583 | ) | (14,194 | ) | (31,733 | ) | (4,439 | ) | (42,555 | ) | (69,670 | ) | (9,748 | ) | ||||||||||||
Accretion of contingently redeemable convertible preferred shares | (2,938 | ) | — | — | — | (24,094 | ) | — | — | |||||||||||||||||
Net loss attributable to common shareholders | (11,521 | ) | (14,194 | ) | (31,733 | ) | (4,439 | ) | (66,649 | ) | (69,670 | ) | (9,748 | ) | ||||||||||||
Net loss per share, for Class A and Class B common shares: | ||||||||||||||||||||||||||
Common Shares - basic and diluted | — | — | — | — | — | — | — | |||||||||||||||||||
Class A Common Shares - basic and diluted | (0.17 | ) | (0.19 | ) | (0.42 | ) | (0.06 | ) | (1.31 | ) | (0.91 | ) | (0.13 | ) | ||||||||||||
Class B Common Shares - basic and diluted | (0.17 | ) | (0.19 | ) | (0.42 | ) | (0.06 | ) | (1.31 | ) | (0.91 | ) | (0.13 | ) | ||||||||||||
Shares used in net loss per share computation: | ||||||||||||||||||||||||||
Common Shares - basic and diluted | — | — | — | — | — | — | — | |||||||||||||||||||
Class A Common Shares - basic and diluted | 50,367,160 | 59,273,921 | 59,236,116 | 59,236,116 | 33,990,519 | 59,336,906 | 59,336,906 | |||||||||||||||||||
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 | 8,160 | (8,134 | ) | (5,641 | ) | (789 | ) | 2,476 | (21,903 | ) | (3,064 | ) | ||||||||||||||
Total other comprehensive loss, net of tax | 8,160 | (8,134 | ) | (5,641 | ) | (789 | ) | 2,476 | (21,903 | ) | (3,064 | ) | ||||||||||||||
Comprehensive loss | (423 | ) | (22,328 | ) | (37,374 | ) | (5,228 | ) | (40,079 | ) | (91,573 | ) | (12,812 | ) | ||||||||||||
Comprehensive loss attributable to Aurora Mobile Limited | (423 | ) | (22,328 | ) | (37,374 | ) | (5,228 | ) | (40,079 | ) | (91,573 | ) | (12,812 | ) |
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
As of | |||||||||||
December 31, 2018 | September 30, 2019 | ||||||||||
RMB | RMB | US$ | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | 576,562 | 199,784 | 27,951 | ||||||||
Restricted cash | 115 | 115 | 16 | ||||||||
Derivative assets | — | 441 | 62 | ||||||||
Short-term investment | — | 220,000 | 30,779 | ||||||||
Accounts receivable | 141,911 | 149,725 | 20,947 | ||||||||
Prepayments and other current assets | 80,578 | 131,080 | 18,339 | ||||||||
Amounts due from related parties | 4,564 | 521 | 73 | ||||||||
Total current assets | 803,730 | 701,666 | 98,167 | ||||||||
Non-current assets: | |||||||||||
Other non-current assets | 14,237 | 17,050 | 2,385 | ||||||||
Long-term investments | 79,696 | 133,946 | 18,740 | ||||||||
Property and equipment, net | 92,874 | 110,442 | 15,451 | ||||||||
Intangible assets, net | 1,531 | 8,303 | 1,162 | ||||||||
Total non-current assets | 188,338 | 269,741 | 37,738 | ||||||||
Total assets | 992,068 | 971,407 | 135,905 | ||||||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | 18,811 | 21,761 | 3,044 | ||||||||
Deferred revenue and customer deposits | 59,483 | 84,841 | 11,870 | ||||||||
Accrued liabilities and other current liabilities | 76,666 | 91,593 | 12,814 | ||||||||
Amounts due to related parties | 8,864 | 2,113 | 296 | ||||||||
Total current liabilities | 163,824 | 200,308 | 28,024 | ||||||||
Non-current liabilities: | |||||||||||
Other non-current liabilities | 140 | 140 | 20 | ||||||||
Deferred revenue | 10,265 | 9,340 | 1,307 | ||||||||
Convertible notes | 216,179 | 230,566 | 32,257 | ||||||||
Total non-current liabilities | 226,584 | 240,046 | 33,584 | ||||||||
Total liabilities | 390,408 | 440,354 | 61,608 |
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (continued)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)
As of | ||||||||||||
December 31, 2018 | September 30, 2019 | |||||||||||
RMB | RMB | US$ | ||||||||||
Shareholders’ (deficit) equity | ||||||||||||
Common shares | 48 | 48 | 7 | |||||||||
Treasury shares | (3,165 | ) | (9,012 | ) | (1,261 | ) | ||||||
Additional paid-in capital | 944,500 | 952,167 | 133,213 | |||||||||
Accumulated deficit | (348,123 | ) | (417,791 | ) | (58,451 | ) | ||||||
Accumulated other comprehensive loss | 8,400 | 5,641 | 789 | |||||||||
Total shareholders’ (deficit) equity | 601,660 | 531,053 | 74,297 | |||||||||
Total liabilities, mezzanine equity and shareholders’ deficit | 992,068 | 971,407 | 135,905 |
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
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September 30, 2018 |
September 30, 2019 |
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||
Reconciliation of Net Loss to Adjusted Net Loss: | ||||||||||||||||||||||||||||
Net loss | (8,583 | ) | (14,194 | ) | (31,733 | ) | (4,439 | ) | (42,555 | ) | (69,670 | ) | (9,748 | ) | ||||||||||||||
Add: | ||||||||||||||||||||||||||||
Share-based compensation | 6,493 | 15,749 | 8,384 | 1,173 | 13,387 | 34,169 | 4,780 | |||||||||||||||||||||
Change in fair value of derivative liability /asset | (12,008 | ) | — | — | — | (21,302 | ) | — | — | |||||||||||||||||||
Fair value gain of long-term investment | — | — | (14,255 | ) | (1,994 | ) | — | (17,231 | ) | (2,411 | ) | |||||||||||||||||
Adjusted net (loss)/income | (14,098 | ) | 1,555 | (37,604 | ) | (5,260 | ) | (50,470 | ) | (52,732 | ) | (7,379 | ) | |||||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA: | ||||||||||||||||||||||||||||
Net loss | (8,583 | ) | (14,194 | ) | (31,733 | ) | (4,439 | ) | (42,555 | ) | (69,670 | ) | (9,748 | ) | ||||||||||||||
Add: | ||||||||||||||||||||||||||||
Interest expense | 2,494 | 2,733 | 2,858 | 400 | 4,455 | 8,213 | 1,149 | |||||||||||||||||||||
Depreciation of property and equipment | 4,599 | 7,611 | 7,976 | 1,116 | 11,924 | 21,883 | 3,062 | |||||||||||||||||||||
Amortization of intangible assets | 71 | 638 | 604 | 85 | 125 | 1,594 | 223 | |||||||||||||||||||||
Income tax expense/(benefit) | — | — | 162 | 23 | (5 | ) | 162 | 23 | ||||||||||||||||||||
EBITDA | (1,419 | ) | (3,212 | ) | (20,133 | ) | (2,815 | ) | (26,056 | ) | (37,818 | ) | (5,291 | ) | ||||||||||||||
Add: | ||||||||||||||||||||||||||||
Share-based compensation | 6,493 | 15,749 | 8,384 | 1,173 | 13,387 | 34,169 | 4,780 | |||||||||||||||||||||
Change in fair value of derivative liability /asset | (12,008 | ) | — | — | — | (21,302 | ) | — | — | |||||||||||||||||||
Fair value gain of long-term investment | — | — | (14,255 | ) | (1,994 | ) | — | (17,231 | ) | (2,411 | ) | |||||||||||||||||
Adjusted EBITDA | (6,934 | ) | 12,537 | (26,004 | ) | (3,636 | ) | (33,971 | ) | (20,880 | ) | (2,922 | ) |
Source: Aurora Mobile Limited