TMCnet News
CooTek Announces Third Quarter 2018 Unaudited Financial ResultsSHANGHAI, Nov. 14, 2018 /PRNewswire/ -- CooTek (Cayman) Inc. (NYSE: CTK) ("CooTek" or the "Company"), a fast-growing global mobile internet company, today reported unaudited financial results for the quarter ended September 30, 2018. Third Quarter 2018 Financial Highlights
Third Quarter 2018 Operational and Other Financial Highlights
"We are achieving meaningful progress in our efforts to empower everyone to enjoy relevant content seamlessly," said Karl Zhang, CooTek co-founder and Chairman. "We are pleased with our third quarter DAU growth for both our portfolio products and TouchPal Smart Input. Especially, in September, the average DAUs of our portfolio products increased by about 50% to reach 11 million, compared to the average DAU in June. Our third quarter results reflect our success in effectively growing our global user base, sustaining high level of user engagement and retaining our users by delivering more relevant content through news feed." "We are committed to building an AI-driven global content delivery platform and to realizing our mission. Our strategies focus on growing our global user base and investing in AI and big-data technologies to improve our content delivery capabilities and strengthen our advertising business," concluded Mr. Zhang.
Net revenue for the third quarter was US$36.8 million,an increase of 30% from US$28.4million last quarter and 300% from US$9.2 million during the third quarter of 2017. The increases were primarily due to the increase in the mobile advertising revenues. Mobile advertising revenue was US$36.3million, an increase of 31% from US$27.6 million last quarter and 320% from US$8.7 million during the third quarter of 2017. The increases were primarily due to the rapid growth of DAUs of portfolio products. It is estimated that, of the total advertising revenue for the third quarter of 2018, the portfolio products contributed approximately 67%, TouchPal Smart Input contributed approximately 18% and TouchPal Phonebook contributed approximately 15%.
Cost of revenue was US$3.4 million, a decrease of 11% from US$3.8 million in the second quarter of 2018 and 29.7% from US$4.9 million during the same period last year. The sequential and year-on-year decrease was mainly due to a decrease in VoIP related expense as a result of our continuous effort to improve telecommunication services utilization efficiency. Gross profit was US$33.4 million, an increase of 36.1% from US$24.5 million last quarter and 6.7 times from US$ 4.3 million in the third quarter of 2017. Gross profit margin was 90.7%, compared to 86.5% last quarter and 47.2% in the same period last year. Sales and marketing expenses were US$22.5 million, an increase of 44.0% from US$15.7 million last quarter and 382.6% from US$4.7 million during the same period last year. As a percentage of total revenue, sales and marketing expenses accounted for 61.3%, compared to 55.2% last quarter and 50.9% during the same period last year. The sequential and year-on-year increases in sales and marketing expenses as a percentage of total revenue were primarily due to increased investment in user acquisition. Research and development expenses were US$5.2 million, an increase of 15.0% from US$4.5 million last quarter and 42.5% from US$3.6 million during the same period last year. The sequential and year-on-year increases were primarily due to the increased R&D staff cost to keep the competency of our technology. As a percentage of total revenue, research and development expenses accounted for 14.1%, compared to 15.8% last quarter and 39.5% during the same period last year. General and administrative expenses were US$3.0 million, an increase of 30.0% from US$2.3 million last quarter and 119.4% from US$1.4 million during the same period last year. The increases were mainly due to the increase in staff headcount and professional services fees. As a percentage of total revenue, general and administrative expenses accounted for 8.1%, compared to 8.0% last quarter and 14.7% during the same period last year. Net income was US$2.8 million, compared to US$2.1 million last quarter, representing 30.8% growth, and a net loss of US$5.2 million during the same period last year. Adjusted net (loss) income, a non-GAAP financial measure, represents net (loss) income excluding share-based compensation and compensation from ordinary share repurchase. Adjusted net income was US$3.5 million, an increase of 25.6% from US$2.8 million last quarter and an increase of US$8.4 million from adjusted net loss of USD4.9 million in the same period last year.
Basic and diluted net income per ADS were US$0.05 and US$0.04 in the third quarter of 2018, and basic and diluted Adjusted Net Income (Non-GAAP) per ADS were US$0.06 and US$0.05 in this period. Balance Sheet and Cash Flow As of September 30, 2018, Cash and cash equivalents was US$29.4 million compared to US$26.7 million as of December 31, 2017. No loans remained as the Company repaid all bank borrowings in the third quarter of 2018. The proceeds from the IPO of the Company on the New York Stock Exchange on September 28, 2018 were not received by the Company until October 2, 2018. Net cash inflow from operating activities during the third quarter of 2018 was US$5.3 million, compared to outflow from operations of US$7.0 million for the corresponding period in 2017. Business Outlook For the fourth quarter of 2018, CooTek expects total revenue to be between US$46 million and US$47 million, representing a 141.7 % to 146.9% increase year-on-year. Conference Call and Webcast CooTek's management team will host a conference call at 8:00am U.S. Eastern Time, (9:00pm Beijing/Hong Kong time) on November 14, 2018, following the quarterly results announcement. The dial-in details for the live conference call are:
Please dial in 10 minutes before the call is scheduled to begin. When prompted, ask to be connected to the CooTek (Cayman) Inc. call. A live webcast and archive of the conference call will be available on the Investor Relations section of CooTek's website at https://ir.cootek.com/. About CooTek (Cayman) Inc. CooTek is a fast-growing global mobile internet company. The mission of CooTek is to empower everyone to express themselves and enjoy relevant content seamlessly. The Company's user-centric and data-driven approach has enabled it to release appealing products to capture mobile internet users' ever-evolving content needs and helps it rapidly attract targeted users. Focusing on 5 verticals of fitness, news and short videos, healthcare, lifestyle and entertainment, CooTek has developed multiple rapidly growing content-rich portfolio apps with news feed to deliver relevant content. Non-GAAP Financial Measure To supplement the unaudited consolidated financial information prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"), the Company uses non-GAAP financial measure of adjusted net income (loss) that is adjusted from results based on GAAP to exclude the impact of share-based compensation and compensation expense related to ordinary share repurchase. The measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The Company believes that the non-GAAP measure help identify underlying financial and business trends relating to the Company's results of operations that could otherwise be distorted by the effect of certain expenses that the Company include in (loss) income from operations and net (loss) income. By making the Company's financial results comparable period over period, the Company believes adjusted net (loss) income provides useful information to better understand the Company's historical business operations and future prospects and allows for greater visibility with respect to key metrics used by the management in financial and operational decision-making. In order to mitigate these limitations, the Company has provided specific information regarding the GAAP amounts excluded from the non-GAAP measure. The table at the bottom of this press release includes details on the reconciliation between GAAP financial measure that is most directly comparable to the non-GAAP financial measure the Company has presented. Safe Harbor Statement This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and 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. CooTek may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about CooTek's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: CooTek's mission and strategies; future business development, financial conditions and results of operations; the expected growth of the mobile internet industry and mobile advertising industry; the expected growth of mobile advertising; expectations regarding demand for and market acceptance of our products and services; competition in mobile application and advertising industry; and relevant government policies and regulations relating to the industry. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and CooTek does not undertake any obligation to update such information, except as required under applicable law. For investor enquiries, please contact: CooTek (Cayman) Inc. Christensen In US
View original content:http://www.prnewswire.com/news-releases/cootek-announces-third-quarter-2018-unaudited-financial-results-300749951.html SOURCE CooTek |