Aurora Mobile Limited Announces First Quarter 2020 Unaudited Financial Results
First Quarter 2020 Financial Highlights
- Revenues were
RMB126.2 million (US$17.8 million ), a decrease of 45% year-over-year. - Cost of revenues was
RMB84.9 million (US$12.0 million ), a decrease of 49% year-over-year. - Gross profit was
RMB41.3 million (US$5.8 million ), a decrease of 35% year-over-year. - Total operating expenses were
RMB93.1 million (US$13.1 million ), a decrease of 1% year-over-year. - Net loss was
RMB51.0 million (US$7.2 million ), compared with a net loss ofRMB23.7 million for the same period last year. - Adjusted net loss (non-GAAP) was
RMB43.2 million (US$6.1 million ), compared with aRMB16.7 million adjusted net loss for the same period last year. - Adjusted EBITDA (non-GAAP) was negative
RMB30.3 million (US$4.3 million ), compared with negativeRMB7.4 million for the same period last year.
First Quarter 2020 Operational Highlights
- Number of mobile apps utilizing at least one of the Company’s developer services, or the cumulative app installations, increased to approximately 1,499,000 as of
March 31, 2020 from approximately 1,165,000 as ofMarch 31, 2019 . - Number of monthly active unique mobile devices increased to 1.36 billion in
March 2020 from 1.07 billion inMarch 2019 . - Cumulative SDK installations increased to 37.2 billion as of
March 31, 2020 from 22.7 billion as ofMarch 31, 2019 . - Number of paying customers increased to 2,211 in the first quarter of 2020 from 1,951 in the first quarter of 2019.
Mr.
“During this period of temporary disruption, we took the initiative to further strengthen our core competencies. This included narrowing our focus on Developer Services, improving operational and technical efficiency, streamlining internal procedures and reinforcing our commitment to delivering exceptional customer service. With these initiatives now in place, we believe we will emerge from this pandemic stronger than ever and ideally positioned to better adapt to the current uncertainties that hang over the market.”
“Beginning from this quarter, the revenues from Advertisement SaaS and Light-Push services, which help developers grow and monetize their user base, will be separately classified as “Value-Added-Services” under Developer Services. No changes are made to other revenue classifications. Our strategic focus remains to drive the growth of Developer Services and SaaS products. Overtime, we expect the revenue and gross profit contributions from Targeted Marketing to be less and less significant.”
“Market adoption of our Value-Added Services, which launched in the fourth quarter of 2019, has exceeded our expectations. The average monthly revenue from Value-Added Services was approximately
Mr.
“Developer Services once again was the highlight of the quarter with an impressive performance where it recorded a solid 72% year-over-year increase in revenue on the back of strong growth in both Subscription businesses and Value-Added Services. The combined revenues from SaaS products, including financial risk management, market intelligence and iZone, decreased by 28% year-over-year from
Mr.
“As a percentage of revenue, Developer Services and SaaS-based products accounted for 39% during the quarter, a significant increase from 19% during the same period last year. Targeted Marketing, on the other hand, accounted for 61% of total revenue during the quarter, down from 81% during the same period last year. In terms of gross margin contribution, Developer Services and SaaS-based products accounted for 88% of gross profit whereas Targeted Marketing, which is no longer our strategic focus, accounted for only 12% during the quarter. With Developer Services and SaaS Products increasingly contributing more meaningfully to gross margins, we believe we have identified and built a higher quality, more resilient and sustainable business model that can support and fuel a further expansion of our margins and profitability in the future.”
First Quarter 2020 Financial Results
Revenues were
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
RMB41.4 million (US$5.8 million ), a decrease of 3% fromRMB42.7 million in the same quarter of last year, mainly due to aRMB3.2 million decrease in cloud costs and aRMB3.0 million decrease in personnel costs which were partially offset by aRMB2.8 million increase in depreciation of servers and amortization of intangible assets, as well as aRMB1.8 million increase in technical service fees. - Sales and marketing expenses were
RMB25.2 million (US$3.6 million ), a decrease of 7% fromRMB27.0 million in the same quarter of last year, mainly due to aRMB2.1 million decrease in marketing expenses and aRMB1.5 million decrease in travel and entertainment expenses which were partially offset by aRMB1.9 million increase in personnel costs. - General and administrative expenses were
RMB26.5 million (US$3.7 million ), an increase of 8% fromRMB24.5 million in the same quarter of last year, mainly due to aRMB1.4 million increase in bad debt allowance, aRMB1.3 million increase in personnel costs, and aRMB0.5 million decrease in travel and entertainment expenses.
Loss from operations was
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 decreased from
Update on Share Repurchase
As of
The Company today announced that its board of directors has extended its share repurchase program and also approved a new program under which the Company may repurchase up to
Conference Call
The Company will host an earnings conference call on
Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants must register in advance to join the conference using the link provided below. Please dial in 15 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/9871205
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: | 9871205 |
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$”)) |
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Three months ended | ||||||||||||
2019 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | US$ | |||||||||
Revenues | 230,519 | 182,763 | 126,224 | 17,826 | ||||||||
Cost of revenues | (167,232 | ) | (122,378 | ) | (84,884 | ) | (11,988 | ) | ||||
Gross profit | 63,287 | 60,385 | 41,340 | 5,838 | ||||||||
Operating expenses | ||||||||||||
Research and development | (42,658 | ) | (43,946 | ) | (41,394 | ) | (5,846 | ) | ||||
Sales and marketing | (27,013 | ) | (30,507 | ) | (25,216 | ) | (3,561 | ) | ||||
General and administrative | (24,491 | ) | (28,823 | ) | (26,474 | ) | (3,739 | ) | ||||
Total operating expenses | (94,162 | ) | (103,276 | ) | (93,084 | ) | (13,146 | ) | ||||
Loss from operations | (30,875 | ) | (42,891 | ) | (51,744 | ) | (7,308 | ) | ||||
Foreign exchange (loss) gain, net | (43 | ) | (61 | ) | 40 | 6 | ||||||
Interest income | 2,086 | 1,334 | 1,604 | 227 | ||||||||
Interest expense | (2,622 | ) | (2,905 | ) | (2,932 | ) | (414 | ) | ||||
Other income | 6,726 | 3,465 | 1,523 | 215 | ||||||||
Change in fair value of derivative asset | 985 | 886 | 499 | 71 | ||||||||
Loss before income taxes | (23,743 | ) | (40,172 | ) | (51,010 | ) | (7,203 | ) | ||||
Income tax (expenses)/benefit | - | - | - | - | ||||||||
Net loss | (23,743 | ) | (40,172 | ) | (51,010 | ) | (7,203 | ) |
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (continued) (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data) |
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Three months ended | ||||||||||||
2019 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | US$ | |||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (23,743 | ) | (40,172 | ) | (51,010 | ) | (7,203 | ) | ||||
Net loss attributable to common shareholders | (23,743 | ) | (40,172 | ) | (51,010 | ) | (7,203 | ) | ||||
Net shares per for, Class A and Class B common shares | ||||||||||||
Class A Common Shares - basic and diluted | (0.31 | ) | (0.52 | ) | (0.66 | ) | (0.09 | ) | ||||
Class B Common Shares - basic and diluted | (0.31 | ) | (0.52 | ) | (0.66 | ) | (0.09 | ) | ||||
Shares used in net loss per share computation: | ||||||||||||
Class A Common Shares - basic and diluted | 59,552,402 | 59,958,276 | 60,147,106 | 60,147,106 | ||||||||
Class B Common Shares - basic and diluted | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 | ||||||||
Other comprehensive loss | ||||||||||||
Foreign currency translation adjustments | (8,128 | ) | 721 | (780 | ) | (110 | ) | |||||
Total other comprehensive loss, net of tax | (8,128 | ) | 721 | (780 | ) | (110 | ) | |||||
Comprehensive loss | (31,871 | ) | (39,451 | ) | (51,790 | ) | (7,313 | ) | ||||
Comprehensive loss attributable to |
(31,871 | ) | (39,451 | ) | (51,790 | ) | (7,313 | ) |
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) |
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As of | ||||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 431,459 | 263,315 | 37,187 | |||
Restricted cash | 115 | 115 | 16 | |||
Derivative assets | - | 307 | 43 | |||
Short-term investment | - | 120,000 | 16,947 | |||
Accounts receivable | 135,417 | 106,674 | 15,065 | |||
Prepayments and other current assets | 86,087 | 81,121 | 11,456 | |||
Amounts due from related parties | 521 | 521 | 74 | |||
Total current assets | 653,599 | 572,053 | 80,788 | |||
Non-current assets: | ||||||
Other non-current assets | 2,642 | 22,039 | 3,113 | |||
Long-term investments | 168,637 | 169,577 | 23,949 | |||
Property and equipment, net | 106,235 | 109,197 | 15,422 | |||
Intangible assets, net | 8,810 | 11,182 | 1,579 | |||
Total non-current assets | 286,324 | 311,995 | 44,063 | |||
Total assets | 939,923 | 884,048 | 124,851 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||
Current liabilities: | ||||||
Accounts payable | 19,996 | 17,703 | 2,500 | |||
Deferred revenue and customer deposits | 77,561 | 89,001 | 12,569 | |||
Accrued liabilities and other current liabilities | 96,277 | 67,961 | 9,598 | |||
Amounts due to related parties | 56 | 56 | 8 | |||
Total current liabilities | 193,890 | 174,721 | 24,675 | |||
Non-current liabilities: | ||||||
Other non-current liabilities | 64 | 1,289 | 182 | |||
Deferred revenue | 8,150 | 7,698 | 1,087 | |||
Convertible notes | 230,031 | 236,311 | 33,374 | |||
Total non-current liabilities | 238,245 | 245,298 | 34,643 | |||
Total liabilities | 432,135 | 420,019 | 59,318 | |||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (continued) (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data) |
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As of | |||||||||
RMB | RMB | US$ | |||||||
Shareholders’ equity |
|||||||||
Common shares | 48 | 48 | 7 | ||||||
(1,999 | ) | (749 | ) | (106 | ) | ||||
Additional paid-in capital | 956,735 | 963,517 | 136,074 | ||||||
Accumulated deficit | (453,359 | ) | (504,369 | ) | (71,230 | ) | |||
Accumulated other comprehensive loss | 6,363 | 5,582 | 788 | ||||||
Total shareholders’ equity | 507,788 | 464,029 | 65,533 | ||||||
Total liabilities and shareholders’ equity | 939,923 | 884,048 | 124,851 |
RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) |
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Three months ended | ||||||||||||
2019 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | US$ | |||||||||
Reconciliation of Net Loss to Adjusted Net Loss: |
||||||||||||
Net loss | (23,743 | ) | (40,172 | ) | (51,010 | ) | (7,203 | ) | ||||
Add: | ||||||||||||
Share-based compensation | 10,036 | 13,115 | 7,819 | 1,104 | ||||||||
Reduction in force charges | - | 6,158 | - | - | ||||||||
Fair value loss/(gain) of long-term investment | (2,976 | ) | - | - | - | |||||||
Adjusted net loss | (16,683 | ) | (20,899 | ) | (43,191 | ) | (6,099 | ) | ||||
Reconciliation of Net Loss to Adjusted EBITDA: |
||||||||||||
Net loss | (23,743 | ) | (40,172 | ) | (51,010 | ) | (7,203 | ) | ||||
Add: | ||||||||||||
Interest expense | 2,622 | 2,905 | 2,932 | 414 | ||||||||
Depreciation of property and equipment | 6,296 | 8,508 | 8,880 | 1,254 | ||||||||
Amortization of intangible assets | 352 | 713 | 1,063 | 150 | ||||||||
EBITDA | (14,473 | ) | (28,046 | ) | (38,135 | ) | (5,385 | ) | ||||
Add: | ||||||||||||
Share-based compensation | 10,036 | 13,115 | 7,819 | 1,104 | ||||||||
Reduction in force charges | - | 6,158 | - | - | ||||||||
Fair value loss/(gain) of long-term investment | (2,976 | ) | - | - | - | |||||||
Adjusted EBITDA | (7,413 | ) | (8,773 | ) | (30,316 | ) | (4,281 | ) |
Source: Aurora Mobile Limited