Notable Runner: Aurora Mobile Limited (NASDAQ: JG)

On Wednesday, Shares of Aurora Mobile Limited (NASDAQ: JG) surged 3.56% to $6.99. The stock opened its trade at $6.78 and after floating in a price range of $6.71 to $7.08; the stock grabbed the investor’s attention and traded 40,777 shares as compared to its average daily volume of 191.74K shares. The stock’s institutional ownership stands at 0.70%.

Aurora Mobile Limited (JG) recently declared its unaudited financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights:

  • Revenues were RMB165.10M (US$25.00M), a boost of 233.6% year-over-year.
  • Cost of revenues was RMB118.10M (US$17.80M), a boost of 192.8% year-over-year.
  • Gross profit was RMB47.00M (US$7.10M), a boost of 411.0% year-over-year.
  • Total operating expenses were RMB68.70M (US$10.40M), a boost of 68.6% year-over-year.
  • Net loss was RMB11.80M (US$1.80M) contrast with net loss of RMB30.20M for the same period of last year.
  • Adjusted EBITDA (non-GAAP) was negative RMB11.10M (US$1.70M) contrast with negative RMB27.50M for the same period of last year.

Second 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 about 888.0K as of June 30, 2018 from about 583.0K as of June 30, 2017.
  • Number of monthly active unique mobile devices increased to 9710M in June 2018 from 6330M in June 2017.
  • Cumulative SDK installations increased to 14.90B as of June 30, 2018 from 8.50B as of June 30, 2017. Number of paying customers increased to 1,602 in the second quarter of 2018 from 1,165 in the second quarter of 2017.

During the quarter, the number of mobile apps using our services grew from 583.0K as of June 2017 and 784.0K as of March 31, 2018 to about 888.0K as of June 2018.”

“The number of monthly active unique devices we covered increased from 633.0M in June 2017 and 951.0M in March 2018 to 971.0M in June 2018. Cumulative SDK installations increased sequentially from 13.90B and 8.50B during the same period last year to 14.90B. The number of paying customers increased from 1,308 last quarter and 1,165 during the same period last year to 1,602.”

“As a result, our revenues grew to RMB165.10M from RMB126.40M last quarter and RMB49.50M during the same period last year, a boost of 30.6% and 233.6%, respectively.”

“Developer services revenues increased by 69.4% year-over-year from RMB8.60M to RMB14.50M, mainly because of growth in the number of paying customers from 715 to 1,005.”

Mr. Fei Chen, President of Aurora Mobile, commented that “Within the data solutions revenue, targeted marketing revenues increased by 248.3% year-over-year from RMB37.80M to RMB131.70M. This was mainly because of a boost in both the number of customers and the average spending per paying customer. Revenues from customers from the financial services and media & entertainment sectors in particular generated strong growth. We are seeing customers increasing their spending on our products and services which I believe are strong evidence of our ability to provide a substantial and quantifiable return on their investment. We are also making solid progress in other verticals, such as eCommerce, as we continued to execute our strategy to generate growth from multiple industries.”

“Other vertical data solutions revenues increased 509.7% year-over-year from RMB3.10M to RMB18.90M. This was mainly because of a boost in both the number of paying customers and average spending per paying customer. We saw strong growth across all three product lines, counting financial risk management, market intelligence, and location-based intelligence (iZone), as we continue to expand our sales coverage and penetrate further into these industry verticals.”

Second Quarter 2018 Financial Results:

Revenues were RMB165.10M (US$25.00M), a boost of 233.6% from RMB49.50M in the same quarter of last year, mainly because of a boost in the number of customers by 37.5% from 1,165 in the three months ended June 30, 2017 to 1,602 during the second quarter of 2018, and a boost in average spending per customer by 142.5% from RMB42,500 to RMB103,100 during the second quarter of 2018.

Cost of revenues was RMB118.10M (US$17.80M), a boost of 192.8% from RMB40.30M in the second quarter of 2017. The increase was in line with revenue growth and was mainly because of the increases in the cost of media inventory by RMB72.80M, bandwidth cost by RMB2.30M, staff cost by RMB1.10M and depreciation of servers by RMB0.70M.

Gross profit was RMB47.00M (US$7.10M), a boost of 411.0% from RMB9.20M year-over-year, mainly because of the noteworthy revenue growth within the same period.

Total operating expenses were RMB68.70M (US$10.40M), a boost of 68.6% from RMB40.70M in the same quarter of last year.

  • Research and development expenses were RMB31.60M (US$4.80M), a boost of 82.7% from RMB17.30M in the same quarter of last year, mainly because of a boost in staff cost by RMB9.40M, bandwidth cost and cloud cost by RMB2.70M, and depreciation of servers by RMB1.30M.
  • Sales and marketing expenses were RMB21.60M (US$3.30M), a boost of 47.5% from RMB14.70M in the same quarter of last year, mainly because of a boost in the staff cost by RMB5.70M, and marketing expense by RMB0.90M.
  • General and administrative expenses were RMB15.40M (US$2.30M), a boost of 75.7% from RMB8.80M in the same quarter of last year, mainly because of a boost in bad debt provision expense by RMB3.10M, professional fees by RMB1.50M and compensation and other personnel related expenses by RMB1.40M.

Loss from operations was RMB21.70M (US$3.30M), contrast with RMB31.60M in the same quarter of last year.

Net Loss was RMB11.80M (US$1.80M), contrast with RMB30.20M in the same quarter of last year.

Adjusted net loss (non-GAAP) was RMB17.10M (US$2.60M), contrast with RMB27.70M for the same period of last year.

Adjusted EBITDA (non-GAAP) was negative RMB11.10M (US$1.70M), contrast with negative RMB27.50M for the same period of last year.

As of June 30, 2018, the Company had cash and cash equivalents and restricted cashof RMB243.90M (US$36.90M), contrast with RMB208.20M as of December 31, 2017.

Business Outlook:

For the third quarter of 2018, the Company anticipates total revenues to be between RMB1800M and RMB1850M, representing year-over-year growth of about 97.4% to 102.9%.

JG has a market value of $530.12M while its EPS was booked as $-0.14 in the last 12 months. The stock has 75.84M shares outstanding. In the profitability analysis, the company has gross profit margin of 27.80% while net profit margin was -23.80%. Analyst recommendation for this stock stands at 2.00.

Michelle Smith

Michelle Smith

I am Michelle Smith and I give “Stocks Market Cap” an insight into the most recent news hitting the “Technology” sector in Wall Street. I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.

Leave a Reply

Your email address will not be published. Required fields are marked *