Second Quarter 2021 Highlights
- Net revenues was
RMB1,202.0 million (US$186.2 million ), representing a decrease of 16.6% from 1,441.0 million in the second quarter of 2020, and a decrease of 6.9% quarter-over-quarter fromRMB1,291.0 million in the first quarter of 2021, exceeding the Company’s previous guided range for the second quarter of 2021. - Net loss was
RMB209.5 million (US$32.4 million ), compared to net loss ofRMB222.1 million in the second quarter of 2020 and net loss ofRMB149.0 million in the first quarter of 2021. Net loss margin was 17.4%, compared to 15.4% in the second quarter of 2020 and 11.5% in the first quarter of 2021. - Non-GAAP net loss1 was
RMB186.0 million (US$28.8 million ), compared to non-GAAP net loss ofRMB173.3 million in the second quarter of 2020 and non-GAAP net loss ofRMB55.4 million in the first quarter of 2021. Non-GAAP net loss margin was 15.5%, compared to 12.0% in the second quarter of 2020 and 4.3% in the first quarter of 2021. - Combined average MAUs2 were 132.3 million, representing a decrease of 3.1% from 136.5 million in the second quarter of 2020; and a decrease of 0.8% from 133.3 million in the first quarter of 2021.
- Combined average DAUs3 were 29.1 million, representing a decrease of 32.3% from 43.0 million in the second quarter of 2020; and a decrease of 8.2% from 31.7 million in the previous quarter.
- Average daily time spent per DAU was 47.3minutes, compared to 55.2 minutes in the second quarter of 2020 and 47.1 minutes in the first quarter of 2021.
Mr.
Second Quarter 2021 Financial Results
Net revenues in the second quarter of 2021 were
Advertising and marketing revenues were
Other revenues were
Cost of revenues were
Gross profit was
Research and development expenses were
Sales and marketing expenses were
User engagement expenses were
User acquisition expenses were
Other sales and marketing expenses were
General and administrative expenses were
Loss from operations was
Non-operating income was
Non-GAAP loss from operations was
Non-GAAP operating loss margin was 16.7%, compared to non-GAAP operating loss margin of 9.8% in the second quarter of 2020.
Net loss was
Non-GAAP net loss was
Net loss attributable to
Non-GAAP net loss attributable to
Basic and diluted net loss per American Depositary Share (“ADS”) was
Balance Sheet
As of
While the Company continues to execute business plans to improve their liquidity position, the Convertible Loan which the Company issued with principal amounting to
Business Outlook
For the third quarter of 2021, the Company expects group net revenues to be between
Conference Call
Qutoutiao’s management will host an earnings conference call at
Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.
Preregistration Information
Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/3766584 at least 15 minutes prior to the scheduled call start time.
Please dial-in at least 10 minutes before the scheduled start time of the earnings call and enter the Direct Event Passcode and Registrant ID as instructed to connect to the call.
A replay of the conference call will be accessible approximately two hours after the conclusion of the call until
+1-646-254-3697 | |
International: | +61-2-8199-0299 |
+852-3051-2780 | |
400-632-2162 | |
Replay Access Code: | 3766584 |
About
For more information, please visit: https://ir.qutoutiao.net.
Use of Non-GAAP Financial Measures
We use non-GAAP profit or loss from operations, non-GAAP operating profit or loss margin, non-GAAP net profit loss, non-GAAP net profit or loss margin, non-GAAP net profit or loss attributable to Qutoutiao Inc.’s ordinary shareholders and non-GAAP basic and diluted net profit or loss per ADS, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Each of these non-GAAP financial measures represents the corresponding GAAP financial measure before share-based compensation expenses. We believe that such non-GAAP financial measures help identify underlying trends in our business that could otherwise be distorted by the effect of such share-based compensation expenses that we include in cost of revenues, total operating expenses and net loss. We believe that all such non-GAAP financial measures also provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States 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" and similar statements. Statements that are not historical facts, including statements about
For investor and media inquiries, please contact:
Investor Relations
Tel: +86-21-5889-0398
E-mail: ir@qutoutiao.net
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousand RMB, or otherwise noted)
As of | As of | |||||
2020 | 2021 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 494,475 | 399,940 | ||||
Restricted cash | 100,316 | 39,147 | ||||
Short-term investments | 391,033 | 582,700 | ||||
Accounts receivable, net | 737,789 | 967,615 | ||||
Amount due from related parties | 383,594 | 318,783 | ||||
Prepayments and other current assets | 365,109 | 269,847 | ||||
Total current assets | 2,472,316 | 2,578,032 | ||||
Non-current assets: | ||||||
Accounts receivables, non-current | 54,639 | 15,831 | ||||
Long-term Investments | 82,889 | 91,938 | ||||
Property and equipment, net | 17,213 | 17,292 | ||||
Intangible assets | 83,123 | 193,996 | ||||
7,268 | 7,268 | |||||
Right-of-use assets, net | 50,319 | 30,404 | ||||
Other non-current assets | 148,091 | 6,164 | ||||
Total non-current assets | 443,542 | 362,893 | ||||
Total assets | 2,915,858 | 2,940,925 | ||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term borrowings | 70,000 | - | ||||
Accounts payable | 448,981 | 410,340 | ||||
Amount due to related parties | 22,477 | 5,698 | ||||
Registered users' loyalty payable | 72,627 | 71,100 | ||||
Advance from customers and deferred revenue | 140,776 | 139,195 | ||||
Salary and welfare payable | 149,704 | 110,516 | ||||
Tax payable | 97,144 | 72,754 | ||||
Lease liabilities, current | 20,760 | 15,194 | ||||
Accrued liabilities related to users' loyalty programs | 100,088 | 91,957 | ||||
Accrued liabilities and other current liabilities | 763,433 | 1,235,700 | ||||
Convertible loan - current | - | 1,180,633 | ||||
Total current liabilities | 1,885,990 | 3,333,087 | ||||
Lease liabilities, non-current | 23,756 | 15,057 | ||||
Convertible loan | 1,174,868 | - | ||||
Deferred tax liabilities | 18,825 | 17,624 | ||||
Other non-current liabilities | 4,256 | 2,987 | ||||
Non-current liabilities | 1,221,705 | 35,668 | ||||
Total liabilities | 3,107,695 | 3,368,755 | ||||
Total redeemable non-controlling interests | 1,093,526 | 1,132,670 | ||||
Shareholders' deficit | ||||||
Ordinary shares | 47 | 48 | ||||
(142,229 | ) | (142,229 | ) | |||
Additional paid-in capital | 4,784,315 | 4,901,491 | ||||
Accumulated other comprehensive income | 84,320 | 103,407 | ||||
Accumulated deficit | (6,007,227 | ) | (6,418,283 | ) | ||
(1,280,774 | ) | (1,555,566 | ) | |||
Non-controlling interests | (4,589 | ) | (4,934 | ) | ||
Total deficit | (1,285,363 | ) | (1,560,500 | ) | ||
Total liabilities, redeemable non-controlling interests and shareholders' deficit | 2,915,858 | 2,940,925 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousand RMB, except ADS data, or otherwise noted)
For the three months ended | For the six months ended | ||||||||||||||
2020 | 2021 | 2021 | 2020 | 2021 | |||||||||||
Advertising and marketing revenues | 1,378,130 | 1,228,033 | 1,141,370 | 2,742,130 | 2,369,403 | ||||||||||
Other revenues | 62,865 | 62,946 | 60,604 | 110,662 | 123,550 | ||||||||||
Net revenues | 1,440,995 | 1,290,979 | 1,201,974 | 2,852,792 | 2,492,953 | ||||||||||
Cost of revenues | (400,215 | ) | (381,275 | ) | (327,734 | ) | (860,970 | ) | (709,009 | ) | |||||
Gross profit | 1,040,780 | 909,704 | 874,240 | 1,991,822 | 1,783,944 | ||||||||||
Operating expenses: | |||||||||||||||
Research and development expenses | (224,200 | ) | (186,683 | ) | (136,173 | ) | (505,064 | ) | (322,856 | ) | |||||
Sales and marketing expenses | (925,312 | ) | (800,694 | ) | (901,273 | ) | (1,999,840 | ) | (1,701,967 | ) | |||||
General and administrative expenses | (105,472 | ) | (101,611 | ) | (93,442 | ) | (212,968 | ) | (195,053 | ) | |||||
Total operating expenses | (1,254,984 | ) | (1,088,988 | ) | (1,130,888 | ) | (2,717,871 | ) | (2,219,876 | ) | |||||
Other operating income | 24,790 | 31,930 | 32,717 | 31,907 | 64,647 | ||||||||||
Loss from Operations | (189,414 | ) | (147,354 | ) | (223,931 | ) | (694,142 | ) | (371,285 | ) | |||||
Investment income/ (expenses), net | (20,980 | ) | 2,666 | (4,133 | ) | (37,511 | ) | (1,467 | ) | ||||||
Interest expense, net | (6,900 | ) | (7,804 | ) | (8,065 | ) | (10,313 | ) | (15,869 | ) | |||||
Foreign exchange related gain/(loss), net | (271 | ) | (2,814 | ) | 3,142 | (2,797 | ) | 328 | |||||||
Other income/(expense), net | (4,213 | ) | 6,048 | 23,198 | (7,733 | ) | 29,246 | ||||||||
Non-operating income / (loss) | (32,364 | ) | (1,904 | ) | 14,142 | (58,354 | ) | 12,238 | |||||||
Loss before provision for income taxes | (221,778 | ) | (149,258 | ) | (209,789 | ) | (752,496 | ) | (359,047 | ) | |||||
Income tax benefits/ (expense), net | (321 | ) | 224 | 296 | (1,423 | ) | 520 | ||||||||
Net loss | (222,099 | ) | (149,034 | ) | (209,493 | ) | (753,919 | ) | (358,527 | ) | |||||
Net loss attributable to non-controlling interests | 109 | 170 | 175 | 316 | 345 | ||||||||||
Net loss attributable to | (221,990 | ) | (148,864 | ) | (209,318 | ) | (753,603 | ) | (358,182 | ) | |||||
Accretion to convertible redeemable preferred shares redemption value of a subsidiary | (12,316 | ) | (26,126 | ) | (26,748 | ) | (24,180 | ) | (52,874 | ) | |||||
Net loss attributable to | (234,306 | ) | (174,990 | ) | (236,066 | ) | (777,784 | ) | (411,056 | ) | |||||
Net loss | (222,099 | ) | (149,034 | ) | (209,493 | ) | (753,919 | ) | (358,527 | ) | |||||
Other comprehensive income/(loss): | |||||||||||||||
Foreign currency translation adjustment, net of nil tax | 293 | (12,988 | ) | 32,075 | (15,938 | ) | 19,087 | ||||||||
Total comprehensive loss | (221,806 | ) | (162,022 | ) | (177,418 | ) | (769,857 | ) | (339,440 | ) | |||||
Comprehensive loss attributable to non-controlling interests | 109 | 170 | 175 | 316 | 345 | ||||||||||
Comprehensive loss attributable to | (221,697 | ) | (161,852 | ) | (177,243 | ) | (769,541 | ) | (339,095 | ) | |||||
Net loss per ADS (1 Class A ordinary share equals 4 ADSs): | |||||||||||||||
- Basic and diluted | (0.81 | ) | (0.58 | ) | (0.78 | ) | (2.71 | ) | (1.36 | ) | |||||
Weighted average number of ADS used in computing basic and diluted earnings per ADS: | |||||||||||||||
- Basic | 288,538,032 | 299,548,372 | 303,220,624 | 287,085,156 | 301,394,648 | ||||||||||
- Diluted | 288,538,032 | 299,548,372 | 303,220,624 | 287,085,156 | 301,394,648 |
Reconciliation of GAAP And Non-GAAP Results
(All amounts in thousand RMB, except ADS data, or otherwise noted)
For the three months ended | For the six months ended | ||||||||||||||
2020 | 2021 | 2021 | 2020 | 2021 | |||||||||||
Loss from Operations | (189,414 | ) | (147,354 | ) | (223,931 | ) | (694,142 | ) | (371,285 | ) | |||||
Add: Share-based compensation expenses | |||||||||||||||
Cost of revenues | 3,077 | 996 | - | 6,561 | 996 | ||||||||||
General and administrative | 13,059 | 41,086 | 3,017 | 65,540 | 44,103 | ||||||||||
Sales and marketing | 3,612 | 2,311 | - | 25,300 | 2,311 | ||||||||||
Research and development | 29,094 | 49,275 | 20,491 | 95,191 | 69,767 | ||||||||||
Non-GAAP Loss from Operations | (140,572 | ) | (53,686 | ) | (200,423 | ) | (501,550 | ) | (254,108 | ) | |||||
Net loss | (222,099 | ) | (149,034 | ) | (209,493 | ) | (753,919 | ) | (358,527 | ) | |||||
Add: Share-based compensation expenses | |||||||||||||||
Cost of revenues | 3,077 | 996 | - | 6,561 | 996 | ||||||||||
General and administrative | 13,059 | 41,086 | 3,017 | 65,540 | 44,103 | ||||||||||
Sales and marketing | 3,612 | 2,311 | - | 25,300 | 2,311 | ||||||||||
Research and development | 29,094 | 49,275 | 20,491 | 95,191 | 69,767 | ||||||||||
Non-GAAP net loss | (173,257 | ) | (55,366 | ) | (185,985 | ) | (561,327 | ) | (241,350 | ) | |||||
Net loss attributable to | (221,990 | ) | (148,864 | ) | (209,318 | ) | (753,603 | ) | (358,182 | ) | |||||
Add: Share-based compensation expenses | |||||||||||||||
Cost of revenues | 3,077 | 996 | - | 6,561 | 996 | ||||||||||
General and administrative | 13,059 | 41,086 | 3,017 | 65,540 | 44,103 | ||||||||||
Sales and marketing | 3,612 | 2,311 | - | 25,300 | 2,311 | ||||||||||
Research and development | 29,094 | 49,275 | 20,491 | 95,191 | 69,767 | ||||||||||
Non-GAAP net loss attributable to | (173,148 | ) | (55,196 | ) | (185,810 | ) | (561,011 | ) | (241,005 | ) | |||||
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (234,306 | ) | (174,990 | ) | (236,066 | ) | (777,784 | ) | (411,056 | ) | |||||
Add: Share-based compensation expenses | |||||||||||||||
Cost of revenues | 3,077 | 996 | - | 6,561 | 996 | ||||||||||
General and administrative | 13,059 | 41,086 | 3,017 | 65,540 | 44,103 | ||||||||||
Sales and marketing | 3,612 | 2,311 | - | 25,300 | 2,311 | ||||||||||
Research and development | 29,094 | 49,275 | 20,491 | 95,191 | 69,767 | ||||||||||
Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (185,464 | ) | (81,322 | ) | (212,558 | ) | (585,192 | ) | (293,879 | ) | |||||
Non-GAAP net loss per ADS (1 Class A ordinary share equals 4 ADSs): | |||||||||||||||
— Basic and diluted | (0.64 | ) | (0.27 | ) | (0.70 | ) | (2.04 | ) | (0.98 | ) | |||||
Weighted average number of ADS used in computing basic and diluted earnings per ADS | |||||||||||||||
— Basic | 288,538,032 | 299,548,372 | 303,220,624 | 287,085,156 | 301,394,648 | ||||||||||
— Diluted | 288,538,032 | 299,548,372 | 303,220,624 | 287,085,156 | 301,394,648 |
Supplementary Operating Information
(RMB in millions, or otherwise noted)
For the three months ended | |||||||||||||||
2020 | 2020 | 2020 | 2021 | 2021 | |||||||||||
Net revenues | 1,441.0 | 1,130.0 | 1,302.4 | 1,291.0 | 1,202.0 | ||||||||||
User engagement expenses | 457.2 | 264.7 | 163.2 | 179.1 | 169.5 | ||||||||||
User acquisition expenses | 435.7 | 385.9 | 397.1 | 588.7 | 685.2 | ||||||||||
Other sales and marketing expenses | 32.5 | 50.9 | 119.9 | 32.9 | 46.6 | ||||||||||
Total sales and marketing expenses | 925.4 | 701.5 | 680.2 | 800.7 | 901.3 | ||||||||||
Combined Average MAUs (in millions) | 136.5 | 120.5 | 124.7 | 133.3 | 132.3 | ||||||||||
Combined Average DAUs (in millions) | 43.0 | 39.7 | 32.3 | 31.7 | 29.1 | ||||||||||
New installed users (in millions) | 132.2 | 67.3 | 50.3 | 101.8 | 94.0 | ||||||||||
Average net revenues per DAU per day (RMB) | 0.37 | 0.31 | 0.44 | 0.45 | 0.46 | ||||||||||
User engagement expenses per DAU per day (RMB) | 0.12 | 0.07 | 0.05 | 0.06 | 0.06 | ||||||||||
User acquisition expenses per new installed user (RMB) | 3.30 | 5.73 | 7.89 | 5.78 | 7.29 |
1 For more information on the non-GAAP financial measures, see the section entitled “Use of Non-GAAP Financial Measures” below and the table captioned “Reconciliation of GAAP And Non-GAAP Results” set forth at the end of this press release.
2 “MAUs” refers to the number of unique mobile devices that accessed our relevant mobile application in a given month. “Combined average MAUs” for a particular period is the average of the MAUs for all of our mobile applications in each month during that period;
3 “DAUs” refers to the number of unique mobile devices that accessed our relevant mobile application on a given day. “Combined average DAUs” for a particular period is the average of the DAUs for all of our mobile applications on each day during that period;
4 “New installed user” refers to the aggregate number of unique mobile devices that have downloaded and launched our relevant mobile applications at least once.
Source:
2021 GlobeNewswire, Inc., source