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 third quarter
ended September 30, 2019.
Third Quarter 2019
Highlights
- Combined average MAUs1 reached 133.9 million,
representing an increase of 105.3% from 65.2 million in the third
quarter of 2018, compared to 119.3 million in the previous
quarter.
- Combined average DAUs2 reached 42.1 million,
representing an increase of 97.7% from 21.3 million in the third
quarter of 2018, compared to 38.7 million in the previous
quarter.
- Average daily time spent per DAU was 61.3
minutes, compared to 55.9 minutes in the third quarter of 2018 and
60.0 minutes in the previous quarter.
- Net revenues increased 44.0% year-over-year to
RMB1,406.9 million (US$196.8 million), compared to RMB1,385.9
million in the previous quarter, and were above the Company’s
guidance.
- Net loss was RMB888.4 million (US$124.3
million), compared to net loss of RMB1,033.4 million in the third
quarter of 2018 and net loss of RMB561.3 million in the second
quarter of 2019. Net loss margin was 63.1%,
compared to 105.7% in the third quarter of 2018 and 40.5% in the
second quarter of 2019.
- Non-GAAP net loss was
RMB833.1 million (US$116.6 million), compared to non-GAAP net loss
of RMB298.4 million in the third quarter of 2018 and non-GAAP net
loss of RMB496.3 million in the second quarter of 2019.
Non-GAAP net loss margin was 59.2%, compared to
30.5% in the third quarter of 2018 and 35.8% in the second quarter
of 2019.
Mr. Eric Siliang Tan, Chairman and Chief
Executive Officer of Qutoutiao, commented, “Despite the less than
hospitable operating environment which has persisted for much of
the year, we have pushed on with determination as well as agility.
Our quarterly average MAUs has reached 133.9 million and DAUs has
reached 42.1 million, both of which have doubled from the levels a
year ago. During this quarter, we have also made meaningful
progress on product suite expansion, most notably Midu Lite which
commenced in May and has quickly gathered more than 3 million
DAU.”
“We believe the lower tier cities remain the
most attractive space today with unmatched structural potential for
growth and monetization. During the Double 11 Shopping Festival,
GMVs generated by Qutoutiao users on e-commerce platforms increased
more than ten-fold in comparison to last year.”
“Our priority is not simply growth, but rather
long-term profitable growth. We tend to respond to market
fluctuations with reason and gain comfort in remaining focused on
doing the right things that will ultimately matter. That means a
balanced approach to growth and capital allocation, with an
emphasis on sustainability. With better retention and ARPU3 on an
improving path in this quarter, we shall see better ROI driving our
business going forward.” Mr. Tan. Concluded.
_________________
1 “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;2 “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;3 “ARPU” refers to average net revenues per DAU per day.
Third Quarter 2019 Financial Results
Net revenues in the third
quarter of 2019 were RMB1,406.9 million (US$196.8 million), an
increase of 44.0% from RMB977.3 million in the third quarter of
2018.
Advertising and marketing revenues were
RMB1,381.6 million (US$193.3 million) in the third quarter of 2019,
an increase of 54.1% from RMB896.5 million in the third quarter of
2018, primarily due to increases in the Company’s user base, time
spent and ability to monetize user traffic, and, to a lesser
extent, the launch of our new integrated and customized marketing
solution services to our customers.
Other revenues were RMB25.3 million (US$3.5
million) in the third quarter of 2019, compared to RMB80.9 million
in the third quarter of 2018. Other revenues primarily represent
revenues from providing agent and platform services between
advertising customers and third-party advertising platforms and
online marketing platform services. The decrease was primarily due
to the decrease of agent and platform services.
Cost of revenues were RMB496.1
million (US$69.4 million) in the third quarter of 2019, an increase
of 222.5% from RMB153.8 million in the third quarter of 2018,
primarily attributable to the costs paid to suppliers for the new
integrated and customized marketing solution services, and, to a
lesser extent, increases in content procurement costs, bandwidth
and IT infrastructure costs and increases in salaries and benefits
associated with content management personnel.
Gross profit was RMB910.8
million (US$127.4 million) in the third quarter of 2019, an
increase of 10.6% from RMB823.5 million in the third quarter of
2018. Gross margin was 64.7%, compared to 84.3% in
the third quarter of 2018. The decrease of gross margin was mainly
due to the growing revenue contribution from our new integrated and
customized marketing solution services, which have a relatively low
gross margin. The decrease of gross margin was also attributable to
the growth of our content procurement costs as well as our
bandwidth and IT infrastructure costs, as we are enriching our
product offerings to include more engaging contents such as short
videos, games and live-streaming.
Research and development
expenses were RMB261.6 million (US$36.6 million) in the
third quarter of 2019, an increase of 226.1% from RMB80.2 million
in the third quarter of 2018, primarily due to an increase in
R&D headcount as the Company continued to invest in enhancing
technology capabilities, more specifically, the Company’s AI-based
content recommendation
technology.
Sales and marketing expenses were RMB1,503.2
million (US$210.3 million) in the third quarter of 2019, an
increase of 43.9% from RMB1,045.0 million in the third quarter of
2018.
User engagement expenses were RMB536.1 million
(US$75.0 million) in the third quarter of 2019, an increase of
11.5% year-over-year, primarily due to our enlarged user base. User
engagement expenses per DAU per day were RMB0.14 in the third
quarter of 2019, a decrease of 43.6% year-over-year and stable
quarter-over-quarter. The decrease of user engagement expenses per
DAU per day was primarily due to the Company’s ongoing efforts in
optimizing user engagement expenses for Qutoutiao and the absence
of such expenses for other products such as Midu Novels.
User acquisition expenses were RMB788.3 million
(US$110.3 million) in the third quarter of 2019, an increase of
48.1% year-over-year. User acquisition expenses consist of the
costs of both word-of-mouth referrals and third-party marketing,
and the increase was primarily driven by the Company’s continued
strategic investments into building user base. User acquisition
expenses per new installed user4 in the third quarter of 2019 were
RMB6.58, compared to RMB6.93 in the second quarter of 2019 and
RMB6.01 in the third quarter of 2018.
Other sales and marketing expenses were RMB178.8
million (US$25.0 million) in the third quarter of 2019, an increase
of 462.5% year-over-year, mainly due to an increase in brand
campaigns and sponsorship to TV shows as we continue to strengthen
our brand recognition.
General and administrative
expenses were RMB57.1 million (US$8.0 million) in the
third quarter of 2019, a decrease of 92.3% from RMB741.6 million in
the third quarter of 2018. The decrease was mainly due to the
decrease in share-based compensation expenses. Share-based
compensation expenses in the third quarter of 2018 were RMB717.7
million, the majority of the expenses were one-off charges in
relation to the share restriction deeds entered into by certain of
our co-founders in January 2018, pursuant to which certain ordinary
shares beneficially owned by such co-founders became restricted
shares and were to be vested. Upon completion of the Company’s
initial public offering in September 2018, all the remaining
restricted shares were immediately vested and the associated and
unrecognized share-based compensation expenses of RMB649.7 million
were recorded.
Loss from
operations was RMB899.4 million (US$125.8
million) in the third quarter of 2019, compared to RMB1,043.3
million in the third quarter of 2018. Operating loss
margin was 63.9%, compared to 106.8% in the third quarter
of 2018.
Non-GAAP
loss from operations was RMB844.2 million
(US$118.1 million) in the third quarter of 2019, compared to
RMB308.3 million in the third quarter of 2018. Non-GAAP
operating loss margin was 60.0%, compared to non-GAAP
operating loss margin of 31.6% in the third quarter of 2018.
Net loss was RMB888.4 million
(US$124.3 million), compared to net loss of RMB1,033.4 million in
the third quarter of 2018 and net loss of RMB561.3 million in the
second quarter of 2019. Net loss margin was 63.1%,
compared to 105.7% in the third quarter of 2018 and 40.5% in the
second quarter of 2019.
Non-GAAP net loss was RMB833.1
million (US$116.6 million), compared to non-GAAP net loss of
RMB298.4 million in the third quarter of 2018 and non-GAAP net loss
of RMB496.3 million in the second quarter of 2019. Non-GAAP
net loss margin was 59.2%, compared to 30.5% in the third
quarter of 2018 and 35.8% in the second quarter of 2019.
Net loss attributable to Qutoutiao
Inc.'s ordinary shareholders was RMB891.8 million
(US$124.8 million) in the third quarter of 2019, compared to
RMB1,055.1 million in the third quarter of 2018. Non-GAAP
net loss attributable to Qutoutiao Inc.'s ordinary
shareholders was RMB836.6 million (US$117.0
million) in the third quarter of 2019, compared to RMB320.1 million
in the third quarter of 2018.
Basic and diluted net loss per American
Depositary Share (“ADS”) were RMB3.54 (US$0.49) in the
third quarter of 2019. Non-GAAP basic and diluted net loss
per ADS were RMB3.32 (US$0.46) in the third quarter of
2019. Each four ADSs represent one Class A ordinary share of the
Company.
__________________4 “New installed users” refers
to the aggregate number of unique mobile devices that have
downloaded and launched our relevant mobile applications at least
once.
Balance Sheet
As of September 30, 2019, the Company had cash,
cash equivalents and short-term investments of RMB 2,120.1 million
(US$296.6 million), compared to RMB2,287.6 million as of June 30,
2019.
Recent Developments
On October 16, 2019, Qutoutiao announced that
its subsidiary holding the operations of Midu Novels and Midu Lite
had completed Series B financing in the amount of USD100 million.
The financing round was led by CMC Capital and followed by
Qutoutiao.
Effective May 28, 2019, the Board of Directors
approved a share repurchase program to repurchase in the open
market up to US$50 million worth of outstanding ADSs of the
Company, every four of which represents one class A ordinary share,
from time to time over the next 12 months, depending on market
conditions, share price and other factors, as well as subject to
the memorandum and articles of association, the relevant rules
under United States securities laws and regulations, and the
relevant stock exchange rules. As of September 30, 2019, 4,665,700
ADSs, representing 1,166,425 ordinary shares, were repurchased with
a total consideration of US$20.7 million.
Business Outlook
Based on the current market conditions, the
Company provides the following outlook reflecting the Company’s
preliminary estimates of market and operating conditions, and
customer demand:
For the fourth quarter of 2019, the Company
expects net revenues to be between RMB 1,600 million and RMB 1,620
million.
Conference Call
The Company’s management will host an earnings
conference call at 8:00 a.m. U.S. Eastern Time on December 3, 2019
(9:00 p.m. Beijing/Hong Kong time on the same day, 2019).
Dial-in details for the live conference call are
as follows:
United States: |
+1-845-675-0437 |
United States (toll free): |
+1-866-519-4004 |
Hong Kong: |
+852-3018-6771 |
Hong Kong (toll free): |
800-906-601 |
China: |
400-620-8038 |
International: |
+65-6713-5090 |
Conference ID: |
8036388 |
Additionally, a live and archived webcast of the
conference call will be available on the Company's investor
relations website at https://ir.qutoutiao.net.
A replay of the conference call will be
accessible approximately two hours after the conclusion of the live
call until December 9, 2019, by dialing the following telephone
numbers:
United States: |
+1-646-254-3697 |
Hong Kong : |
+852-3051-2780 |
China: |
400-632-2162 |
International: |
+61-2-8199-0299 |
Replay Access Code: |
8036388 |
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 loss from operations, non-GAAP
operating loss margin, non-GAAP net loss, non-GAAP net loss margin,
non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary
shareholders and non-GAAP basic and diluted net 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
RMB7.1477 to US$1.00, the rate in effect as of September 30, 2019
as set forth in the H.10 statistical release of the Federal Reserve
Board. The Company makes no representation that the RMB or US$
amounts referred could be converted into US$ or RMB, as the case
may be, at any particular rate or at all.
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; 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:
In China:
Qutoutiao Inc.Investor RelationsTel:
+86-21-6858-3790E-mail: ir@qutoutiao.net
The Piacente Group, Inc.Jenny CaiTel:
+86-10-6508-0677E-mail: qutoutiao@tpg-ir.com
In the United States:
Qutoutiao Inc. Oliver Yucheng Chen E-mail:
oliver@qutoutiao.net
The Piacente Group, Inc. Brandi PiacenteTel:
+1-212-481-2050E-mail: qutoutiao@tpg-ir.com
|
QUTOUTIAO
INC. |
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS |
(All amounts in RMB,
or otherwise noted) |
|
|
As of
December 31, |
As of
September 30, |
|
2018 |
2019 |
|
RMB |
RMB |
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
2,186,288,246 |
|
525,393,392 |
|
Short-term investments |
115,436,080 |
|
1,594,659,465 |
|
Accounts receivable, net |
203,984,074 |
|
314,081,563 |
|
Amount due from related parties |
- |
|
179,059,305 |
|
Prepayments and other current assets |
120,365,506 |
|
239,377,396 |
|
Total current assets |
2,626,073,906 |
|
2,852,571,121 |
|
|
|
|
Non-current assets: |
|
|
Long-term Investments |
- |
|
35,589,200 |
|
Property and equipment, net |
13,929,542 |
|
25,459,493 |
|
Intangible assets |
94,527,598 |
|
89,719,263 |
|
Goodwill |
7,268,330 |
|
7,268,330 |
|
Right-of-use assets, net |
- |
|
80,551,884 |
|
Other non-current assets |
10,672,141 |
|
29,655,220 |
|
Total non-current assets |
126,397,611 |
|
268,243,390 |
|
Total assets |
2,752,471,517 |
|
3,120,814,511 |
|
|
|
|
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND
SHAREHOLDERS’ EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
131,249,219 |
|
285,735,152 |
|
Registered users’ loyalty payable |
256,661,934 |
|
166,817,570 |
|
Advance from advertising customers |
155,099,317 |
|
218,142,036 |
|
Salary and welfare payable |
43,422,202 |
|
89,990,002 |
|
Tax payable |
101,286,721 |
|
112,620,573 |
|
Lease liabilities, current |
- |
|
38,755,108 |
|
Accrued liabilities related to users’ loyalty programs |
44,133,812 |
|
71,206,052 |
|
Accrued liabilities and other current liabilities |
379,130,559 |
|
583,834,630 |
|
Total current liabilities |
1,110,983,764 |
|
1,567,101,123 |
|
|
|
|
Lease liabilities, non-current |
- |
|
34,373,153 |
|
Convertible loan |
- |
|
1,226,492,365 |
|
Deferred tax liabilities |
23,631,899 |
|
21,829,466 |
|
Other non-current liabilities |
9,686,219 |
|
7,987,207 |
|
Non-current liabilities |
33,318,118 |
|
1,290,682,191 |
|
Total liabilities |
1,144,301,882 |
|
2,857,783,314 |
|
|
|
|
Total redeemable non-controlling
interests |
96,936,855 |
|
491,500,654 |
|
|
|
|
Shareholders’ (deficit)/equity |
|
|
Ordinary shares |
41,547 |
|
44,404 |
|
Treasury stock |
- |
|
(142,228,779 |
) |
Additional paid-in capital |
3,684,130,058 |
|
4,239,953,167 |
|
Accumulated other comprehensive imcome |
(16,428,875 |
) |
(22,902,117 |
) |
Accumulated deficit |
(2,153,235,425 |
) |
(4,299,623,655 |
) |
Total Qutoutiao Inc. shareholders’
(deficit)/equity |
1,514,507,305 |
|
(224,756,980 |
) |
Non-controlling interests |
(3,274,525 |
) |
(3,712,477 |
) |
Total (deficit)/equity |
1,511,232,780 |
|
(228,469,457 |
) |
|
|
|
Total liabilities, redeemable non-controlling interests
and shareholders’ (deficit)/equity |
2,752,471,517 |
|
3,120,814,511 |
|
|
|
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 nine months ended |
|
September 30 |
June 30 |
September 30 |
|
September 30 |
September 30 |
|
2018 |
2019 |
2019 |
|
2018 |
2019 |
|
RMB |
RMB |
RMB |
|
RMB |
RMB |
|
|
|
|
|
|
|
Advertising and marketing revenues |
896,464,500 |
|
1,358,002,272 |
|
1,381,619,079 |
|
|
1,597,315,666 |
|
3,826,799,574 |
|
Other revenues |
80,853,332 |
|
27,944,539 |
|
25,290,100 |
|
|
97,836,898 |
|
84,906,269 |
|
|
|
|
|
|
|
|
Net revenues |
977,317,832 |
|
1,385,946,811 |
|
1,406,909,179 |
|
|
1,695,152,564 |
|
3,911,705,843 |
|
|
|
|
|
|
|
|
Cost of revenues |
(153,821,888 |
) |
(361,446,349 |
) |
(496,081,867 |
) |
|
(299,815,099 |
) |
(1,136,721,190 |
) |
|
|
|
|
|
|
|
Gross profit |
823,495,944 |
|
1,024,500,462 |
|
910,827,312 |
|
|
1,395,337,465 |
|
2,774,984,653 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Research and development expenses |
(80,230,784 |
) |
(221,318,168 |
) |
(261,599,590 |
) |
|
(143,143,162 |
) |
(638,301,750 |
) |
Sales and marketing expenses |
(1,044,965,206 |
) |
(1,321,768,628 |
) |
(1,503,239,735 |
) |
|
(1,881,905,048 |
) |
(4,121,959,554 |
) |
General and administrative expenses |
(741,648,292 |
) |
(63,509,965 |
) |
(57,101,646 |
) |
|
(935,534,269 |
) |
(204,650,200 |
) |
Total operating expenses |
(1,866,844,282 |
) |
(1,606,596,761 |
) |
(1,821,940,971 |
) |
|
(2,960,582,479 |
) |
(4,964,911,504 |
) |
|
|
|
|
|
|
|
Other operating income |
- |
|
10,789,713 |
|
11,682,263 |
|
|
- |
|
22,471,976 |
|
|
|
|
|
|
|
|
Loss from Operations |
(1,043,348,338 |
) |
(571,306,586 |
) |
(899,431,396 |
) |
|
(1,565,245,014 |
) |
(2,167,454,875 |
) |
|
|
|
|
|
|
|
Interest income (expense), net |
8,986,275 |
|
8,955,594 |
|
(999,076 |
) |
|
14,374,974 |
|
20,870,058 |
|
Foreign exchange related gains, net |
1,237,458 |
|
390,043 |
|
6,124,404 |
|
|
3,335,520 |
|
3,589,367 |
|
Other gains/(loss), net |
(320,283 |
) |
48,952 |
|
5,296,371 |
|
|
(345,881 |
) |
3,288,020 |
|
|
|
|
|
|
|
|
Loss before provision for income taxes |
(1,033,444,888 |
) |
(561,911,997 |
) |
(889,009,697 |
) |
|
(1,547,880,401 |
) |
(2,139,707,430 |
) |
Income tax benefits |
- |
|
600,811 |
|
600,811 |
|
|
- |
|
1,802,433 |
|
|
|
|
|
|
|
|
Net loss |
(1,033,444,888 |
) |
(561,311,186 |
) |
(888,408,886 |
) |
|
(1,547,880,401 |
) |
(2,137,904,997 |
) |
|
|
|
|
|
|
|
Net loss attributable to non-controlling interests |
2,842,305 |
|
56,711 |
|
227,415 |
|
|
2,842,305 |
|
437,952 |
|
Net loss attributable to Qutoutiao Inc. |
(1,030,602,583 |
) |
(561,254,475 |
) |
(888,181,471 |
) |
|
(1,545,038,096 |
) |
(2,137,467,045 |
) |
|
|
|
|
|
|
|
Accretion to convertible redeemable preferred shares redemption
value |
(42,843,201 |
) |
(3,020,121 |
) |
(3,627,599 |
) |
|
(101,806,744 |
) |
(8,921,185 |
) |
Gains on repurchase of preferred shares |
18,332,152 |
|
- |
|
- |
|
|
18,332,152 |
|
- |
|
Deemed dividend to preferred shareholders |
- |
|
- |
|
- |
|
|
(1,916,871 |
) |
- |
|
|
|
|
|
|
|
|
Net loss attributable to Qutoutiao
Inc.’s ordinary
shareholders |
(1,055,113,632 |
) |
(564,274,596 |
) |
(891,809,070 |
) |
|
(1,630,429,559 |
) |
(2,146,388,230 |
) |
|
|
|
|
|
|
|
Net loss |
(1,033,444,888 |
) |
(561,311,186 |
) |
(888,408,886 |
) |
|
(1,547,880,401 |
) |
(2,137,904,997 |
) |
Other comprehensive loss/(income): |
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil tax |
544,476 |
|
21,815,137 |
|
8,734,926 |
|
|
(12,017,654 |
) |
(6,473,241 |
) |
Total comprehensive loss |
(1,032,900,412 |
) |
(539,496,049 |
) |
(879,673,960 |
) |
|
(1,559,898,055 |
) |
(2,144,378,238 |
) |
Comprehensive loss attributable to non-controlling
interests |
2,842,305 |
|
56,711 |
|
227,415 |
|
|
2,842,305 |
|
437,952 |
|
Comprehensive loss attributable to Qutoutiao
Inc. |
(1,030,058,107 |
) |
(539,439,338 |
) |
(879,446,545 |
) |
|
(1,557,055,750 |
) |
(2,143,940,286 |
) |
|
|
|
|
|
|
|
Net loss per ADS (1 Class A ordinary share equals 4
ADSs): |
|
|
|
|
|
|
— Basic and diluted |
(8.97 |
) |
(2.21 |
) |
(3.54 |
) |
|
(15.69 |
) |
(8.54 |
) |
|
|
|
|
|
|
|
Weighted average number of ADS used in computing basic
and diluted earnings per ADS: |
|
|
|
|
|
|
— Basic |
117,604,564 |
|
255,563,250 |
|
252,278,760 |
|
|
103,915,274 |
|
251,189,900 |
|
— Diluted |
117,604,564 |
|
255,563,250 |
|
252,278,760 |
|
|
103,915,274 |
|
251,189,900 |
|
|
|
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 nine months ended |
|
September 30 |
June 30 |
September 30 |
|
September 30 |
September 30 |
|
2018 |
|
2019 |
|
2019 |
|
|
2018 |
|
2019 |
|
|
RMB |
RMB |
RMB |
|
RMB |
RMB |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
|
Loss from Operations |
(1,043,348,338 |
) |
(571,306,586 |
) |
(899,431,396 |
) |
|
(1,565,245,014 |
) |
(2,167,454,875 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
Cost of revenue |
2,111,603 |
|
1,629,139 |
|
1,113,137 |
|
|
3,541,184 |
|
4,399,261 |
|
General and administrative |
717,726,321 |
|
14,208,730 |
|
6,607,320 |
|
|
891,567,244 |
|
66,245,970 |
|
Sales and marketing |
3,198,778 |
|
11,776,526 |
|
11,597,854 |
|
|
6,591,956 |
|
30,465,141 |
|
Research and development |
11,967,731 |
|
37,446,655 |
|
35,940,659 |
|
|
18,687,524 |
|
89,720,428 |
|
|
|
|
|
|
|
|
Non-GAAP Loss from Operations |
(308,343,905 |
) |
(506,245,536 |
) |
(844,172,426 |
) |
|
(644,857,106 |
) |
(1,976,624,075 |
) |
|
|
|
|
|
|
|
Net loss |
(1,033,444,888 |
) |
(561,311,186 |
) |
(888,408,886 |
) |
|
(1,547,880,401 |
) |
(2,137,904,997 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
Cost of revenue |
2,111,603 |
|
1,629,139 |
|
1,113,137 |
|
|
3,541,184 |
|
4,399,261 |
|
General and administrative |
717,726,321 |
|
14,208,730 |
|
6,607,320 |
|
|
891,567,244 |
|
66,245,970 |
|
Sales and marketing |
3,198,778 |
|
11,776,526 |
|
11,597,854 |
|
|
6,591,956 |
|
30,465,141 |
|
Research and development |
11,967,731 |
|
37,446,655 |
|
35,940,659 |
|
|
18,687,524 |
|
89,720,428 |
|
|
|
|
|
|
|
|
Non-GAAP net loss |
(298,440,455 |
) |
(496,250,136 |
) |
(833,149,916 |
) |
|
(627,492,493 |
) |
(1,947,074,197 |
) |
|
|
|
|
|
|
|
Net loss attributable to Qutoutiao Inc. |
(1,030,602,583 |
) |
(561,254,475 |
) |
(888,181,471 |
) |
|
(1,545,038,096 |
) |
(2,137,467,045 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
Cost of revenue |
2,111,603 |
|
1,629,139 |
|
1,113,137 |
|
|
3,541,184 |
|
4,399,261 |
|
General and administrative |
717,726,321 |
|
14,208,730 |
|
6,607,320 |
|
|
891,567,244 |
|
66,245,970 |
|
Sales and marketing |
3,198,778 |
|
11,776,526 |
|
11,597,854 |
|
|
6,591,956 |
|
30,465,141 |
|
Research and development |
11,967,731 |
|
37,446,655 |
|
35,940,659 |
|
|
18,687,524 |
|
89,720,428 |
|
|
|
|
|
|
|
|
Non-GAAP net loss attributable to Qutoutiao
Inc. |
(295,598,150 |
) |
(496,193,425 |
) |
(832,922,501 |
) |
|
(624,650,188 |
) |
(1,946,636,245 |
) |
|
|
|
|
|
|
|
Net loss attributable to Qutoutiao Inc.’s ordinary
shareholders |
(1,055,113,632 |
) |
(564,274,596 |
) |
(891,809,070 |
) |
|
(1,630,429,559 |
) |
(2,146,388,230 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
Cost of revenue |
2,111,603 |
|
1,629,139 |
|
1,113,137 |
|
|
3,541,184 |
|
4,399,261 |
|
General and administrative |
717,726,321 |
|
14,208,730 |
|
6,607,320 |
|
|
891,567,244 |
|
66,245,970 |
|
Sales and marketing |
3,198,778 |
|
11,776,526 |
|
11,597,854 |
|
|
6,591,956 |
|
30,465,141 |
|
Research and development |
11,967,731 |
|
37,446,655 |
|
35,940,659 |
|
|
18,687,524 |
|
89,720,428 |
|
|
|
|
|
|
|
|
Non-GAAP Net loss attributable to Qutoutiao Inc.’s
ordinary shareholders |
(320,109,199 |
) |
(499,213,546 |
) |
(836,550,100 |
) |
|
(710,041,651 |
) |
(1,955,557,430 |
) |
|
|
|
|
|
|
|
Non-GAAP net loss per ADS (1 Class A ordinary share
equals 4 ADSs): |
|
|
|
|
|
|
Basic and diluted |
(2.72 |
) |
(1.95 |
) |
(3.32 |
) |
|
(6.83 |
) |
(7.79 |
) |
|
|
|
|
|
|
|
Weighted average number of ADS used in computing basic
and diluted earnings per ADS |
|
|
|
|
|
|
Basic |
117,604,564 |
|
255,563,250 |
|
252,278,760 |
|
|
103,915,274 |
|
251,189,900 |
|
Diluted |
117,604,564 |
|
255,563,250 |
|
252,278,760 |
|
|
103,915,274 |
|
251,189,900 |
|
|
|
QUTOUTIAO
INC. |
APPENDIX
I Supplementary Operating
Information |
(RMB in millions, or
otherwise noted) |
|
|
For the three months ended |
|
September 30 |
December 31 |
March 31 |
June 30 |
September 30 |
|
2018 |
2018 |
2019 |
2019 |
2019 |
Net
revenues |
977.3 |
1,327.0 |
1,118.8 |
1,385.9 |
1,406.9 |
|
|
|
|
|
|
User engagement expenses5 |
481.0 |
563.3 |
580.8 |
449.5 |
536.1 |
User acquisition expenses6 |
532.2 |
746.9 |
675.3 |
787.9 |
788.3 |
Other sales and marketing expenses |
31.8 |
57.9 |
40.9 |
84.3 |
178.8 |
|
|
|
|
|
|
Total sales
and marketing expenses |
1,045.0 |
1,368.1 |
1,297.0 |
1,321.8 |
1,503.2 |
|
|
|
|
|
|
Combined Average MAUs (in millions) |
65.2 |
93.8 |
111.4 |
119.3 |
133.9 |
Combined Average DAUs (in millions) |
21.3 |
30.9 |
37.5 |
38.7 |
42.1 |
New installed users (in millions) |
88.6 |
113.6 |
108.7 |
113.7 |
119.9 |
|
|
|
|
|
|
Average net revenues per DAU per day(RMB) |
0.50 |
0.47 |
0.33 |
0.39 |
0.36 |
User engagement expenses per DAU per day
(RMB) |
0.25 |
0.20 |
0.17 |
0.13 |
0.14 |
User
acquisition expenses per new
installed user(RMB) |
6.01 |
6.57 |
6.21 |
6.93 |
6.58 |
_____________________
5 We offer loyalty program for registered users
of our mobile applications to enhance user engagement and loyalty
and incentivize 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 registered user” refer to the
average cost of acquiring a new installed user from both
word-of-mouth referrals and third-party channels.
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