Qutoutiao Inc. Reports Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results
Qutoutiao Inc. (NASDAQ: QTT) reported its fourth quarter and fiscal year 2020 results, with net revenues of RMB1,302.4 million (US$199.6 million), declining 21.5% year-over-year but increasing 15.3% sequentially. The company achieved a net loss of RMB81.8 million (US$12.5 million), significantly improved from a net loss of RMB551.4 million in Q4 2019. Non-GAAP net profit was RMB50.8 million (US$7.8 million), a turnaround from a loss the previous year. Average monthly active users (MAUs) decreased 9.6% year-over-year, reflecting challenges in user engagement.
- Net loss improved to RMB81.8 million from RMB551.4 million in Q4 2019.
- Non-GAAP net profit of RMB50.8 million contrasts with a loss of RMB470.2 million in Q4 2019.
- Sales and marketing expenses decreased by 50.3% year-over-year, highlighting cost efficiency.
- Net revenues decreased 21.5% year-over-year.
- Combined average daily active users (DAUs) fell 29.4% from Q4 2019.
- Gross profit declined by 25.4% year-over-year, with gross margin decreasing to 66.1%.
SHANGHAI, China, March 04, 2021 (GLOBE NEWSWIRE) -- Qutoutiao Inc. (“Qutoutiao”, the “Company” or “We”) (NASDAQ: QTT), a leading operator of mobile content platforms in China, today announced its unaudited financial results in the fourth quarter and fiscal year ended December 31, 2020.
Fourth Quarter 2020 Highlights
- Net revenues decreased
21.5% year-over-year to RMB1,302.4 million (US$199.6 million ), while increased by15.3% quarter-over-quarter from RMB1,130.0 million in the previous quarter, and was above the high end of the Company’s guided range. - Net loss was RMB81.8 million (US
$12.5 million ), compared to net loss of RMB551.4 million in the fourth quarter of 2019 and net loss of RMB269.4 million in the third quarter of 2020. Net loss margin was6.3% , compared to33.2% in the fourth quarter of 2019 and23.8% in the third quarter of 2020. - Non-GAAP net profit1 was RMB50.8 million (US
$7.8 million ), compared to non-GAAP net loss of RMB470.2 million in the fourth quarter of 2019 and non-GAAP net loss of RMB131.4 million in the third quarter of 2020. Non-GAAP net profit margin was3.9% , compared to non-GAAP net loss margin of28.4% in the fourth quarter of 2019 and non-GAAP loss margin of11.6% in the third quarter of 2020. - Combined average MAUs2 were 124.7 million, representing a decrease of
9.6% from 137.9 million in the fourth quarter of 2019, compared to 120.5 million in the previous quarter. - Combined average DAUs3 were 32.3 million, representing a decrease of
29.4% from 45.7 million in the fourth quarter of 2019, compared to 39.7 million in the previous quarter. - Average daily time spent per DAU was 50.3 minutes, compared to 59.4 minutes in the fourth quarter of 2019 and 55.3 minutes in the previous quarter.
Mr. Eric Siliang Tan, Chairman and Chief Executive Officer of Qutoutiao, commented, “Through dedication and innovation, we have come through a year of unprecedented uncertainty and changes in the marketplace, we are very pleased to be able to put our business on a much firmer footing and to grow profitably from here.”
Mr. Xiaolu Zhu, Chief Financial Officer of Qutoutiao, added, “As the business has achieved breakeven as a result of our strategic initiatives and prudent financial management, we are encouraged by the results of our consistent effort and focus on creating shareholder value and running a lean operation, and will continue to execute our strategies effectively and efficiently going forward.”
Fourth Quarter 2020 Financial Results
Net revenues in the fourth quarter of 2020 were RMB1,302.4 million (US
Advertising and marketing revenues were RMB1,241.9 million (US
Other revenues were RMB60.5 million (US
Cost of revenues were RMB441.7 million (US
Gross profit was RMB860.7 million (US
Research and development expenses were RMB199.7 million (US
Sales and marketing expenses were RMB680.3 million (US
User engagement expenses were RMB163.2 million (US
User acquisition expenses were RMB397.1 million (US
Other sales and marketing expenses were RMB119.9 million (US
General and administrative expenses were RMB94.4 million (US
Loss from operations was RMB90.1 million (US
Non-GAAP profit from operations was RMB42.5 million (US
Net loss was RMB81.8 million (US
Non-GAAP net profit was RMB50.8 million (US
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders was RMB78.7 million (US
Non-GAAP net profit attributable to Qutoutiao Inc.'s ordinary shareholders was RMB54.0 million (US
Basic and diluted net loss per American Depositary Share (“ADS”) was RMB0.26 (US
Balance Sheet
As of December 31, 2020, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB985.8 million (US
While the Company’s liquidity position has been improved compared to the prior quarter, the Convertible Loan which the Company issued to Alibaba in March 2019, with principal amounting to US
Fiscal Year 2020 Financial Results
Net revenues in the fiscal year of 2020 were RMB5,285.2 million (US
Advertising and marketing revenues were RMB5,046.8 million (US
Other revenues were RMB238.4 million (US
Cost of revenues was RMB1,674.4 million (US
Gross profit was RMB3,610.8 million (US
Research and development expenses were RMB947.9 million (US
Sales and marketing expenses were RMB3,381.6 million (US
General and administrative expenses were RMB392.8 million (US
Loss from operations was RMB1,032.2 million (US
Non-GAAP loss from operations was RMB569.0 million (US
Net loss was RMB1,105.2 million (US
Non-GAAP net loss was RMB642.0 million (US
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders was RMB1,137.9 million (US
Non-GAAP net loss attributable to Qutoutiao Inc.'s ordinary shareholders was RMB674.7 million (US
Recent Developments
Qutoutiao's subsidiary holding the operations of Midu Novels and Midu Lite (collectively, "Midu") entered into definitive agreements with certain unaffiliated investors (the "Investors") in December, 2020. Pursuant to these agreements, the Investors agreed to invest a total of around USD110 million into Midu. The transaction will be phased and we expect the deal to be fully completed in the second half of 2021. We will continue to be the controlling shareholder of Midu after the completion of the transaction.
Business Outlook
For the first quarter of 2021, the Company expects group net revenues to be between RMB 1,250 million to RMB 1,300 million.
Conference Call
Qutoutiao’s management will host an earnings conference call at 7:00 A.M. U.S. Eastern Time on Thursday, March 4, 2021 (8:00 PM Beijing/Hong Kong time on March 4, 2021).
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/5221359 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 7:59 A.M. U.S Eastern Time on March 11, 2020, by dialing the following telephone numbers:
United States: | +1-646-254-3697 |
International: | +61-2-8199-0299 |
Hong Kong : | +852-3051-2780 |
China: | 400-632-2162 |
Replay Access Code: | 5221359 |
About Qutoutiao Inc.
Qutoutiao Inc. operates innovative and fast-growing mobile content platforms in China with a mission to bring fun and value to its users. The eponymous flagship mobile application, Qutoutiao, meaning “fun headlines” in Chinese, applies artificial intelligence-based algorithms to deliver customized feeds of articles and short videos to users based on their unique profiles, interests and behaviors. Qutoutiao has attracted a large group of loyal users, many of whom are from lower-tier cities in China. They enjoy Qutoutiao’s fun and entertainment-oriented content as well as its social-based user loyalty program. Launched in May 2018, Midu Novels is a pioneer in offering free literature supported by advertising and has grown rapidly to become a leading player in the online literature industry. The Company will continue to bring more exciting products to users through innovation, and strive towards creating a leading global online content ecosystem.
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 U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other measure of performance prepared in accordance with U.S. GAAP or as an indicator of our operating performance. We mitigate these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating our performance. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.5250 to US
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 Qutoutiao's beliefs, plans and expectations, are forward-looking statements. Among other things, the “Business Outlook” section and quotations from management in this announcement, contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Qutoutiao’s strategies; Qutoutiao’s future business development, financial condition and results of operations; Qutoutiao’s ability to retain and increase the number of users and provide quality content; competition in the mobile content platform industry; Qutoutiao’s ability to manage its costs and expenses; the future developments of the COVID-19 outbreak; general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Qutoutiao's filings with the SEC. All information provided in this press release is as of the date of this press release, and Qutoutiao does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
Qutoutiao Inc.
Investor Relations
Tel: +86-21-6858-3790
E-mail: ir@qutoutiao.net
QUTOUTIAO INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in RMB, or otherwise noted) | ||||
As of December 31, | As of December 31, | |||
2019 | 2020 | |||
RMB | RMB | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | 347,817,093 | 494,474,891 | ||
Restricted cash | 27,871,552 | 100,315,940 | ||
Short-term investments | 1,276,830,926 | 391,033,374 | ||
Accounts receivable, net | 526,822,932 | 737,789,173 | ||
Amount due from related parties | 278,155,878 | 383,594,360 | ||
Prepayments and other current assets | 234,728,386 | 365,108,503 | ||
Total current assets | 2,692,226,767 | 2,472,316,241 | ||
Non-current assets: | ||||
Accounts receivables, non-current | - | 54,638,516 | ||
Long-term Investments | 37,589,200 | 82,888,709 | ||
Property and equipment, net | 24,115,374 | 17,212,799 | ||
Intangible assets | 88,943,679 | 83,122,972 | ||
Goodwill | 7,268,330 | 7,268,330 | ||
Right-of-use assets, net | 69,241,754 | 50,318,882 | ||
Other non-current assets | 20,811,791 | 148,091,140 | ||
Total non-current assets | 247,970,128 | 443,541,348 | ||
Total assets | 2,940,196,895 | 2,915,857,589 | ||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | ||||
Current liabilities: | ||||
Short-term borrowings | - | 70,000,000 | ||
Accounts payable | 328,268,752 | 448,980,738 | ||
Amount due to a related party | 3,436,586 | 22,476,683 | ||
Registered users’ loyalty payable | 134,145,439 | 72,626,546 | ||
Advance from customers and deferred revenue | 246,630,128 | 140,776,350 | ||
Salary and welfare payable | 129,169,734 | 149,703,938 | ||
Tax payable | 118,156,494 | 97,143,585 | ||
Lease liabilities, current | 38,210,188 | 20,760,421 | ||
Accrued liabilities related to users’ loyalty programs | 89,184,947 | 100,087,815 | ||
Accrued liabilities and other current liabilities | 788,495,442 | 763,434,272 | ||
Total current liabilities | 1,875,697,710 | 1,885,990,348 | ||
Lease liabilities, non-current | 26,651,446 | 23,755,721 | ||
Convertible loan | 1,218,905,676 | 1,174,867,883 | ||
Deferred tax liabilities | 21,228,656 | 18,825,416 | ||
Other non-current liabilities | 7,212,463 | 4,255,931 | ||
Non-current liabilities | 1,273,998,241 | 1,221,704,951 | ||
Total liabilities | 3,149,695,951 | 3,107,695,299 | ||
Total redeemable non-controlling interests | 495,844,565 | 1,093,526,058 | ||
Shareholders’ deficit | ||||
Ordinary shares | 44,651 | 46,817 | ||
Treasury stock | (142,228,779 | ) | (142,228,779 | ) |
Additional paid-in capital | 4,321,100,861 | 4,784,314,735 | ||
Accumulated other comprehensive income | (17,934,525 | ) | 84,319,590 | |
Accumulated deficit | (4,862,464,162 | ) | (6,007,226,873 | ) |
Total Qutoutiao Inc. shareholders’ deficit | (701,481,954 | ) | (1,280,774,510 | ) |
Non-controlling interests | (3,861,667 | ) | (4,589,258 | ) |
Total deficit | (705,343,621 | ) | (1,285,363,768 | ) |
Total liabilities, redeemable non-controlling interests and shareholders’ deficit | 2,940,196,895 | 2,915,857,589 | ||
QUTOUTIAO INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in RMB, except ADS data, or otherwise noted) | |||||||||||
For the three months ended | For the fiscal year ended | ||||||||||
December 31 | September 30 | December 31 | December 31 | December 31 | |||||||
2019 | 2020 | 2020 | 2019 | 2020 | |||||||
RMB | RMB | RMB | RMB | RMB | |||||||
Advertising and marketing revenues | 1,588,520,968 | 1,062,766,624 | 1,241,937,710 | 5,415,320,542 | 5,046,834,733 | ||||||
Other revenues | 69,853,793 | 67,245,213 | 60,453,505 | 154,760,062 | 238,360,290 | ||||||
Net revenues | 1,658,374,761 | 1,130,011,837 | 1,302,391,215 | 5,570,080,604 | 5,285,195,023 | ||||||
Cost of revenues | (503,910,866 | ) | (371,755,415 | ) | (441,690,570 | ) | (1,640,632,056 | ) | (1,674,416,148 | ) | |
Gross profit | 1,154,463,895 | 758,256,422 | 860,700,645 | 3,929,448,548 | 3,610,778,875 | ||||||
Operating expenses: | |||||||||||
Research and development expenses | (287,929,828 | ) | (243,118,815 | ) | (199,688,448 | ) | (926,231,578 | ) | (947,870,809 | ) | |
Sales and marketing expenses | (1,367,748,322 | ) | (701,460,094 | ) | (680,260,528 | ) | (5,489,707,876 | ) | (3,381,560,531 | ) | |
General and administrative expenses | (62,382,900 | ) | (85,458,868 | ) | (94,388,918 | ) | (267,033,100 | ) | (392,815,316 | ) | |
Total operating expenses | (1,718,061,050 | ) | (1,030,037,777 | ) | (974,337,894 | ) | (6,682,972,554 | ) | (4,722,246,656 | ) | |
Other operating income | 7,820,380 | 23,845,671 | 23,545,402 | 30,292,356 | 79,298,306 | ||||||
Loss from Operations | (555,776,775 | ) | (247,935,684 | ) | (90,091,847 | ) | (2,723,231,650 | ) | (1,032,169,475 | ) | |
Investment income/ (expenses), net | - | (14,267,237 | ) | 19,990,057 | 6,327,104 | (31,788,048 | ) | ||||
Interest income (expense), net | 7,019,198 | (7,958,690 | ) | (9,452,396 | ) | 21,562,152 | (27,724,090 | ) | |||
Foreign exchange related gains, net | (1,720,870 | ) | (2,815,634 | ) | (1,570,785 | ) | 1,868,497 | (7,183,462 | ) | ||
Other gains/(loss), net | 5,760,906 | 1,457,194 | (1,032,721 | ) | 9,048,926 | (7,308,728 | ) | ||||
Non-operating income (loss) | 11,059,234 | (23,584,367 | ) | 7,934,155 | 38,806,679 | (74,004,328 | ) | ||||
Loss before provision for income taxes | (544,717,541 | ) | (271,520,051 | ) | (82,157,692 | ) | (2,684,424,971 | ) | (1,106,173,803 | ) | |
Income tax benefits/ (expense), net | (6,645,309 | ) | 2,081,351 | 349,080 | (4,842,876 | ) | 1,007,370 | ||||
Net loss | (551,362,850 | ) | (269,438,700 | ) | (81,808,612 | ) | (2,689,267,847 | ) | (1,105,166,433 | ) | |
Net loss attributable to non-controlling interests | 149,190 | 161,178 | 250,212 | 587,142 | 727,592 | ||||||
Net loss attributable to Qutoutiao Inc. | (551,213,660 | ) | (269,277,522 | ) | (81,558,400 | ) | (2,688,680,705 | ) | (1,104,438,841 | ) | |
Accretion to convertible redeemable preferred shares redemption value | (11,626,847 | ) | (12,153,937 | ) | (11,942,181 | ) | (20,548,032 | ) | (48,276,771 | ) | |
Gains on repurchase of preferred shares | - | - | 14,841,680 | - | 14,841,680 | ||||||
Deemed dividend to preferred shareholders | - | - | - | - | - | ||||||
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (562,840,507 | ) | (281,431,459 | ) | (78,658,901 | ) | (2,709,228,737 | ) | (1,137,873,932 | ) | |
Net loss | (551,362,850 | ) | (269,438,700 | ) | (81,808,612 | ) | (2,689,267,847 | ) | (1,105,166,433 | ) | |
Other comprehensive loss/(income): | |||||||||||
Foreign currency translation adjustment, net of nil tax | 4,967,592 | 50,224,481 | 67,967,476 | (1,505,650 | ) | 102,254,115 | |||||
Total comprehensive loss | (546,395,258 | ) | (219,214,219 | ) | (13,841,136 | ) | (2,690,773,497 | ) | (1,002,912,318 | ) | |
Comprehensive loss attributable to non-controlling interests | 149,190 | 161,178 | 250,212 | 587,142 | 727,592 | ||||||
Comprehensive loss attributable to Qutoutiao Inc. | (546,246,068 | ) | (219,053,041 | ) | (13,590,924 | ) | (2,690,186,355 | ) | (1,002,184,726 | ) | |
Net loss per ADS (1 Class A ordinary share equals 4 ADSs): | |||||||||||
— Basic and diluted | (2.00 | ) | (0.96 | ) | (0.26 | ) | (9.85 | ) | (3.92 | ) | |
Weighted average number of ADS used in computing basic and diluted earnings per ADS: | |||||||||||
— Basic | 282,003,344 | 292,990,440 | 297,045,912 | 274,999,924 | 290,052,308 | ||||||
— Diluted | 282,003,344 | 292,990,440 | 297,045,912 | 274,999,924 | 290,052,308 | ||||||
QUTOUTIAO INC. Reconciliation of GAAP And Non-GAAP Results (All amounts in RMB, except ADS data, or otherwise noted) | |||||||||||
For the three months ended | For the fiscal year ended | ||||||||||
December 31 | September 30 | December 31 | December 31 | December 31 | |||||||
2019 | 2020 | 2020 | 2019 | 2020 | |||||||
RMB | RMB | RMB | RMB | ||||||||
Loss from Operations | (555,776,775 | ) | (247,935,684 | ) | (90,091,847 | ) | (2,723,231,650 | ) | (1,032,169,475 | ) | |
Add: Share-based compensation expenses | |||||||||||
Cost of revenues | 1,790,820 | 4,361,030 | 1,982,055 | 6,190,081 | 12,904,493 | ||||||
General and administrative | 15,708,832 | 49,065,733 | 44,713,522 | 81,954,802 | 159,319,705 | ||||||
Sales and marketing | 14,576,137 | 22,104,231 | 39,252,233 | 45,041,278 | 86,656,267 | ||||||
Research and development | 49,071,905 | 62,473,011 | 46,669,180 | 138,792,333 | 204,333,409 | ||||||
Non-GAAP Profit / (Loss) from Operations | (474,629,081 | ) | (109,931,679 | ) | 42,525,143 | (2,451,253,156 | ) | (568,955,601 | ) | ||
Net loss | (551,362,850 | ) | (269,438,700 | ) | (81,808,612 | ) | (2,689,267,847 | ) | (1,105,166,433 | ) | |
Add: Share-based compensation expenses | |||||||||||
Cost of revenues | 1,790,820 | 4,361,030 | 1,982,055 | 6,190,081 | 12,904,493 | ||||||
General and administrative | 15,708,832 | 49,065,733 | 44,713,522 | 81,954,802 | 159,319,705 | ||||||
Sales and marketing | 14,576,137 | 22,104,231 | 39,252,233 | 45,041,278 | 86,656,267 | ||||||
Research and development | 49,071,905 | 62,473,011 | 46,669,180 | 138,792,333 | 204,333,409 | ||||||
Non-GAAP net profit / (loss) | (470,215,156 | ) | (131,434,695 | ) | 50,808,378 | (2,417,289,353 | ) | (641,952,559 | ) | ||
Net loss attributable to Qutoutiao Inc. | (551,213,660 | ) | (269,277,522 | ) | (81,558,400 | ) | (2,688,680,705 | ) | (1,104,438,841 | ) | |
Add: Share-based compensation expenses | |||||||||||
Cost of revenues | 1,790,820 | 4,361,030 | 1,982,055 | 6,190,081 | 12,904,493 | ||||||
General and administrative | 15,708,832 | 49,065,733 | 44,713,522 | 81,954,802 | 159,319,705 | ||||||
Sales and marketing | 14,576,137 | 22,104,231 | 39,252,233 | 45,041,278 | 86,656,267 | ||||||
Research and development | 49,071,905 | 62,473,011 | 46,669,180 | 138,792,333 | 204,333,409 | ||||||
Non-GAAP net profit / (loss) attributable to Qutoutiao Inc. | (470,065,966 | ) | (131,273,517 | ) | 51,058,590 | (2,416,702,211 | ) | (641,224,967 | ) | ||
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (562,840,507 | ) | (281,431,459 | ) | (78,658,901 | ) | (2,709,228,737 | ) | (1,137,873,932 | ) | |
Add: Share-based compensation expenses | |||||||||||
Cost of revenues | 1,790,820 | 4,361,030 | 1,982,055 | 6,190,081 | 12,904,493 | ||||||
General and administrative | 15,708,832 | 49,065,733 | 44,713,522 | 81,954,802 | 159,319,705 | ||||||
Sales and marketing | 14,576,137 | 22,104,231 | 39,252,233 | 45,041,278 | 86,656,267 | ||||||
Research and development | 49,071,905 | 62,473,011 | 46,669,180 | 138,792,333 | 204,333,409 | ||||||
Non-GAAP Net profit / (loss) attributable to Qutoutiao Inc.’s ordinary shareholders | (481,692,813 | ) | (143,427,454 | ) | 53,958,089 | (2,437,250,243 | ) | (674,660,058 | ) | ||
Non-GAAP net profit / (loss) per ADS (1 Class A ordinary share equals 4 ADSs): | |||||||||||
— Basic and diluted | (1.71 | ) | (0.49 | ) | 0.18 | (8.86 | ) | (2.33 | ) | ||
Weighted average number of ADS used in computing basic and diluted earnings per ADS | |||||||||||
— Basic | 282,003,344 | 292,990,440 | 297,045,912 | 274,999,924 | 290,052,308 | ||||||
— Diluted | 282,003,344 | 292,990,440 | 300,659,508 | 274,999,924 | 290,052,308 | ||||||
QUTOUTIAO INC. Supplementary Operating Information (RMB in millions, or otherwise noted) | |||||
For the three months ended | |||||
December 31 | March 31 | June 30 | September 30 | December 31 | |
2019 | 2020 | 2020 | 2020 | 2020 | |
Net revenues | 1,658.4 | 1,411.8 | 1,441.0 | 1,130.0 | 1,302.4 |
User engagement expenses5 | 571.4 | 507.5 | 457.2 | 264.7 | 163.2 |
User acquisition expenses6 | 680.9 | 502.0 | 435.7 | 385.9 | 397.1 |
Other sales and marketing expenses | 115.5 | 65.1 | 32.5 | 50.9 | 119.9 |
Total sales and marketing expenses | 1,367.7 | 1,074.5 | 925.3 | 701.5 | 680.3 |
Combined Average MAUs (in millions) | 137.9 | 138.3 | 136.5 | 120.5 | 124.7 |
Combined Average DAUs (in millions) | 45.7 | 45.6 | 43.0 | 39.7 | 32.3 |
New installed users (in millions) | 123.0 | 109.2 | 132.2 | 67.3 | 50.3 |
Average net revenues per DAU per day (RMB) | 0.39 | 0.34 | 0.37 | 0.31 | 0.44 |
User engagement expenses per DAU per day (RMB) | 0.14 | 0.12 | 0.12 | 0.07 | 0.05 |
User acquisition expenses per new installed user (RMB) | 5.54 | 4.60 | 3.30 | 5.73 | 7.89 |
___________________________
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.
5 We offer loyalty program for registered users of our mobile applications to enhance user engagement and loyalty and incentivise word-of-mouth referrals. “User engagement expenses” refer to the cost of loyalty points associated with taking specific actions, such as viewing and sharing of content, that encourage engagement and retention on our mobile applications. Such expenses are recognized as part of sales and marketing expenses in the consolidated statements of operations. “User engagement expenses per average DAUs per day” refer to such expenses incurred on an average DAU per day during a particular period.
6 “User acquisition expenses” refer to the sum of the cost of loyalty points associated with referring new users to register on our mobile applications and the cost of third-party advertising and marketing of our mobile applications. Such expenses are recognized as part of sales and marketing expenses in the consolidated statements of operations. “User acquisition expenses per new installed user” refer to the average cost of acquiring a new installed user from both word-of-mouth referrals and third-party channels.
FAQ
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