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, 2019.
Fourth Quarter 2019
Highlights
- Combined average MAUs1 reached 137.9 million,
representing an increase of 46.9% from 93.8 million in the fourth
quarter of 2018, compared to 133.9 million in the previous
quarter.
- Combined average DAUs2 reached 45.7 million,
representing an increase of 47.8% from 30.9 million in the fourth
quarter of 2018, compared to 42.1 million in the previous
quarter.
- Average daily time spent per DAU was 59.4
minutes, compared to 63.0 minutes in the fourth quarter of 2018 and
61.3 minutes in the previous quarter.
- Net revenues increased 25.0% year-over-year to
RMB1,658.4 million (US$238.2 million), compared to RMB1,406.9
million in the previous quarter, and were above the high end of the
Company’s guided range.
- Net loss was RMB551.4 million (US$79.2
million), compared to net loss of RMB398.0 million in the fourth
quarter of 2018 and net loss of RMB888.4 million in the third
quarter of 2019. Net loss margin was 33.2%,
compared to 30.0% in the fourth quarter of 2018 and 63.1% in the
third quarter of 2019.
- Non-GAAP net loss3 was
RMB470.2 million (US$67.5 million), compared to non-GAAP net loss
of RMB366.7 million in the fourth quarter of 2018 and non-GAAP net
loss of RMB833.1 million in the third quarter of 2019.
Non-GAAP net loss margin was 28.4%, compared to
27.6% in the fourth quarter of 2018 and 59.2% in the third quarter
of 2019.
Mr. Eric Siliang Tan, Chairman and Chief
Executive Officer of Qutoutiao, commented, “We closed fiscal year
2019 with a strong fourth quarter with all key operating metrics
trending in the positive direction on a quarter to quarter basis.
On the other hand, we continued to make investments in technology
and content that we believe are crucial to our long-term
success.”
“The outbreak of COVID-19 across the globe has
put pressure on the overall advertising market in the near-term as
advertising budget in general could be constrained. However, the
ongoing structural trend of advertising budget shifting towards
performance-based adverts will see us as a clear beneficiary and
further strengthen our competitive position in the market. ”Mr. Tan
concluded.
Mr. Xiaolu Zhu, Chief Financial Officer of
Qutoutiao, added, “We are delighted to see that our margins
improved significantly compared to the previous quarter with
improved monetization efficiency, contributions from new revenue
sources, as well as a disciplined approach towards costs and
expenses. We are confident that this trend will continue as we take
advantage of the inherent operational leverage in the
business.”
Fourth Quarter 2019 Financial
Results
Net revenues in the fourth
quarter of 2019 were RMB1,658.4 million (US$238.2 million), an
increase of 25.0% from RMB1,327.0 million in the fourth quarter of
2018.
Advertising and marketing revenues were
RMB1,588.5 million (US$228.2 million) in the fourth quarter of
2019, an increase of 27.3% from RMB1,247.9 million in the fourth
quarter of 2018, primarily due to increases in the Company’s user
base and ability to monetize user traffic.
Other revenues were RMB69.9 million (US$10.0
million) in the fourth quarter of 2019, compared to RMB79.1 million
in the fourth quarter of 2018. The decrease of other revenues was
primarily due to the decrease of revenues from agent services,
partially offset by the increase of revenues from live-streaming,
and, to a lesser extent, revenues from games and Midu’s membership
service.
Cost of revenues were RMB503.9
million (US$72.4 million) in the fourth quarter of 2019, an
increase of 147.3% from RMB203.8 million in the fourth quarter of
2018, primarily attributable to the increases in content
procurement costs, bandwidth and IT infrastructure costs and
increases in salaries and benefits associated with content
management personnel.
Gross profit was RMB1,154.5
million (US$165.8 million) in the fourth quarter of 2019, an
increase of 2.8% from RMB1,123.2 million in the fourth quarter of
2018. Gross margin was 69.6%, compared to 84.6% in
the fourth quarter of 2018. The decrease of gross margin was mainly
due 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 RMB287.9 million (US$41.4 million) in the
fourth quarter of 2019, an increase of 126.8% from RMB127.0 million
in the fourth 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 RMB1,367.7 million (US$196.5 million) in the fourth quarter of
2019, flat year-over-year. Sales and marketing expenses as a
percentage of net revenues were 82.5% in the fourth quarter of
2019, compared to 103.1% in the fourth quarter of 2018 and 106.8%
in the third quarter of 2019. The decrease was primarily
attributable to our continued efforts in optimizing the loyalty
program and the traffic acquisition strategy.
User engagement expenses were RMB571.4 million
(US$82.1 million) in the fourth quarter of 2019, compared to
RMB563.3 million in the fourth quarter of 2018. User engagement
expenses per DAU per day were RMB0.14 in the fourth quarter of
2019, a decrease of 31.4% year-over-year and flat
quarter-over-quarter. The decrease of user engagement expenses was
primarily due to the Company’s ongoing efforts in optimizing user
engagement expenses for its loyalty program, as well as the
enhanced personalized reading experience facilitated by our AI
platform and our enriched content library.
User acquisition expenses were RMB680.9 million
(US$97.8 million) in the fourth quarter of 2019, a decrease of 8.8%
year-over-year. User acquisition expenses consist of the costs of
both word-of-mouth referrals and third-party marketing. The
decrease was mainly due to a decrease in the cost of word-of-mouth
referrals and the Company’s more efficient spending in third-party
channels. User acquisition expenses per new installed user4 in the
fourth quarter of 2019 were RMB5.54, compared to RMB6.58 in the
third quarter of 2019 and RMB6.57 in the fourth quarter of
2018.
Other sales and marketing expenses were RMB115.5
million (US$16.6 million) in the fourth quarter of 2019, compared
to RMB57.9 million in the fourth quarter of 2018. The increase was
mainly due to an increase in brand campaigns and sponsorship to TV
shows as we continue to gain brand recognition.
General and administrative
expenses were RMB62.4 million (US$9.0 million) in the
fourth quarter of 2019, an increase of 38.0% from RMB45.2 million
in the fourth quarter of 2018, mainly due to an increase in
personnel related expenses as our business continued to grow at a
faster pace than the overall Chinese advertising industry.
Loss from
operations was RMB555.8 million (US$79.8
million) in the fourth quarter of 2019, compared to RMB416.4
million in the fourth quarter of 2018. Operating loss
margin was 33.5%, compared to 31.4% in the fourth quarter
of 2018.
Non-GAAP
loss from operations was RMB474.6 million (US$68.2
million) in the fourth quarter of 2019, compared to RMB385.1
million in the fourth quarter of 2018. Non-GAAP operating
loss margin was 28.6%, compared to non-GAAP operating loss
margin of 29.0% in the fourth quarter of 2018.
Net loss was RMB551.4 million
(US$79.2 million), compared to net loss of RMB398.0 million in the
fourth quarter of 2018. Net loss margin was 33.2%,
compared to 30.0% in the fourth quarter of 2018.
Non-GAAP net loss was RMB470.2
million (US$67.5 million), compared to non-GAAP net loss of
RMB366.7 million in the fourth quarter of 2018. Non-GAAP
net loss margin was 28.4%, compared to 27.6% in the fourth
quarter of 2018.
Net loss attributable to Qutoutiao
Inc.'s ordinary shareholders was RMB562.8 million (US$80.8
million) in the fourth quarter of 2019, compared to RMB398.5
million in the fourth quarter of 2018. Non-GAAP net loss
attributable to Qutoutiao Inc.'s ordinary
shareholders was RMB481.7 million (US$69.2
million) in the fourth quarter of 2019, compared to RMB367.3
million in the fourth quarter of 2018.
Basic and diluted net loss per American
Depositary Share (“ADS”) was RMB2.17 (US$0.31) in the
fourth quarter of 2019. Non-GAAP basic and diluted net loss
per ADS was RMB1.86 (US$0.27) in the fourth quarter of
2019. Each four ADSs represent one Class A ordinary share of the
Company.
Balance Sheet
As of December 31, 2019, the Company had cash,
cash equivalents, restricted cash and short-term investments of
RMB1,652.5 million (US$237.4 million), compared to RMB2,120.1
million as of Sept ember 30, 2019.
Fiscal Year 2019
Financial Results
Net revenues in the fiscal year
of 2019 were RMB5,570.1 million (US$800.1 million), an increase of
84.3% from RMB3,022.1 million in the fiscal year of 2018.
Advertising and marketing revenues were
RMB5,415.3 million (US$777.9 million) in the fiscal year of 2019,
an increase of 92.4% from RMB2,814.3 million in the prior year,
primarily due to increases in the Company’s user base, user time
spent and ability to monetize user traffic.
Other revenues were RMB154.8 million (US$22.2
million) in the fiscal year of 2019, a decrease of 25.6% from
RMB207.9 million in the fiscal year of 2018, primarily due to the
decrease of revenues from agent services, partially offset by the
increase of revenues from live-streaming, and, to a lesser extent,
revenues from games and Midu’s membership service.
Cost of revenues was RMB1,640.6
million (US$235.7 million) in the fiscal year of 2019, an increase
of 225.8% from RMB503.6 million in the fiscal year of 2018,
primarily attributable to the increases in content procurement
costs, bandwidth and IT infrastructure costs, salaries and benefits
associated with content management personnel, and, to a lesser
extent, the costs paid to suppliers for the new integrated and
customized marketing solution services.
Gross profit was RMB3,929.4
million (US$564.4 million) in the fiscal year of 2019, an increase
of 56.0% from RMB2,518.5 million in the prior year. Gross
margin was 70.5%, compared to 83.3% in the fiscal year of
2018.
Research and development
expenses were RMB926.2 million (US$133.0 million) in the
fiscal year of 2019, an increase of 242.9% from RMB270.1 million in
the prior year, primarily due to the Company’s continued
investments in enhancing our technology capabilities, more
specifically, the Company’s AI-based content recommendation
technology.
Sales and marketing expenses
were RMB5,489.7 million (US$788.5 million) in the fiscal year of
2019, an increase of 68.9% from RMB3,250.0 million in the fiscal
year of 2018, primarily due to increases in user acquisition
expenses and user engagement expenses, as we have enlarged our user
base notably in 2019.
General and administrative
expenses were RMB267.0 million (US$38.4 million) in the
fiscal year of 2019, a decrease of 72.8% from RMB980.7 million in
the fiscal year of 2018. The decrease was mainly due to the
decrease in share-based compensation expenses. Share-based
compensation expenses in 2018 were RMB906.8 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. Share-based compensation expenses in 2019 were RMB82.0
million. Excluding share-based compensation expenses, general and
administrative expenses were RMB185.1 million (US$26.6 million) in
the fiscal year of 2019, representing an increase of 150.2%
year-over-year, mainly due to an increase in personnel related
expenses as our business continued to grow at a faster pace than
the overall Chinese advertising industry.
Loss from
operations was RMB2,723.2 million
(US$391.2 million), compared to RMB1,981.6 million in the fiscal
year of 2018. Operating loss margin was 48.9%,
compared to 65.6% in the fiscal year of 2018.
Non-GAAP
loss from operations was RMB2,451.3 million
(US$352.1 million), compared to RMB1,030.0 million in the fiscal
year of 2018. Non-GAAP operating loss margin was
44.0%, compared to non-GAAP operating loss margin of 34.1% in the
fiscal year of 2018.
Net loss was RMB2,689.3 million
(US$386.3 million) in the fiscal year of 2019, compared to a net
loss of RMB1,945.8 million in the fiscal year of 2018. Net
loss margin was 48.3%, compared to 64.4% in the fiscal
year of 2018.
Non-GAAP net loss was
RMB2,417.3 million (US$347.2 million), compared to Non-GAAP net
loss of RMB994.2 million in the fiscal year of 2018.
Non-GAAP net loss margin was 43.4%, compared to
32.9% in the fiscal year of 2018.
Net loss attributable to Qutoutiao
Inc.'s ordinary shareholders was RMB2,709.2 million
(US$389.2 million), compared to RMB2,028.9 million in the fiscal
year of 2018. Non-GAAP net loss attributable to Qutoutiao
Inc.'s ordinary shareholders was
RMB2,437.3 million (US$350.1 million), compared to RMB1,077.3
million in the fiscal year of 2018.
Recent Developments
Management ChangeMr. Oliver
Yucheng Chen has resigned as Chief Strategy Officer of the Company
due to personal reasons. He will remain serving as a director on
the board of directors of the Company. Mr. Chen’s resignation took
effect on February 28, 2020.
Business Outlook
For the first quarter of 2020, the Company
expects net revenues to be between RMB 1,400 million and RMB 1,420
million, representing an increase of 25% to 27% year-over-year.
In evaluating the business outlook, the Company
has taken into account the impact of the COVID-19 outbreak in
China, including the challenges it has brought to the macroeconomy
and the online advertising industry in general, as well as the
particular impact on the Company itself. Although we remain
confident in the strength of our performance-based advertising
products in the long run, the short-term weakness of the overall
market will inevitably impact everyone in the business. As a
result, the Company’s business and financial performance for the
first quarter of 2020 may be adversely affected. However, as the
situation continues to evolve worldwide, the Company has limited
visibility on the extent of the impact on the Company’s results.
The guidance represents the Company's current and preliminary view,
which is subject to change in light of uncertainties as to how
COVID-19 will develop in China and worldwide.
Conference Call
The Company’s management will host an earnings
conference call at 7:00 a.m. U.S. Eastern Time on March 18, 2020
(7:00 p.m. Beijing/Hong Kong time on March 18, 2020).
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: |
5444915 |
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 call
until 8:59 a.m. U.S Eastern Time on March 26, 2020, 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: |
5444915 |
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
RMB6.9618 to US$1.00, the rate in effect as of December 31, 2019 as
set forth in the H.10 statistical release of the Federal Reserve
Board. The Company makes no representation that the RMB or US$
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; 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:
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:
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
December 31, |
|
2018 |
|
2019 |
|
|
RMB |
RMB |
ASSETS |
Current assets: |
Cash and cash equivalents |
2,186,288,246 |
|
347,817,093 |
|
Restricted cash |
- |
|
27,871,552 |
|
Short-term investments |
115,436,080 |
|
1,276,830,926 |
|
Accounts receivable, net |
203,984,074 |
|
526,822,932 |
|
Amount due from related parties |
- |
|
278,155,878 |
|
Prepayments and other current assets |
120,365,506 |
|
234,728,386 |
|
Total current assets |
2,626,073,906 |
|
2,692,226,767 |
|
|
|
|
Non-current assets: |
Long-term Investments |
- |
|
37,589,200 |
|
Property and equipment, net |
13,929,542 |
|
24,115,374 |
|
Intangible assets |
94,527,598 |
|
88,943,679 |
|
Goodwill |
7,268,330 |
|
7,268,330 |
|
Right-of-use assets, net |
- |
|
69,241,754 |
|
Other non-current assets |
10,672,141 |
|
20,811,791 |
|
Total non-current assets |
126,397,611 |
|
247,970,128 |
|
Total assets |
2,752,471,517 |
|
2,940,196,895 |
|
|
|
|
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTEREST AND SHAREHOLDERS’ EQUITY |
Current liabilities: |
Accounts payable |
131,249,219 |
|
328,268,752 |
|
Amount due to a related party |
- |
|
3,436,586 |
|
Registered users’ loyalty payable |
256,661,934 |
|
134,145,439 |
|
Advance from customers and deferred revenue |
155,099,317 |
|
246,630,128 |
|
Salary and welfare payable |
43,422,202 |
|
129,169,734 |
|
Tax payable |
101,286,721 |
|
118,156,494 |
|
Lease liabilities, current |
- |
|
38,210,188 |
|
Accrued liabilities related to users’ loyalty programs |
44,133,812 |
|
89,184,947 |
|
Accrued liabilities and other current liabilities |
379,130,559 |
|
788,495,442 |
|
Total current liabilities |
1,110,983,764 |
|
1,875,697,710 |
|
|
|
|
Lease liabilities, non-current |
- |
|
26,651,446 |
|
Convertible loan |
- |
|
1,218,905,676 |
|
Deferred tax liabilities |
23,631,899 |
|
21,228,656 |
|
Other non-current liabilities |
9,686,219 |
|
7,212,463 |
|
Non-current liabilities |
33,318,118 |
|
1,273,998,241 |
|
Total liabilities |
1,144,301,882 |
|
3,149,695,951 |
|
|
|
|
Total redeemable non-controlling
interests |
96,936,855 |
|
495,844,565 |
|
|
|
|
Shareholders’ (deficit)/equity |
|
|
Ordinary shares |
41,547 |
|
44,651 |
|
Treasury stock |
- |
|
(142,228,779 |
) |
Additional paid-in capital |
3,684,130,058 |
|
4,321,100,861 |
|
Accumulated other comprehensive income |
(16,428,875 |
) |
(17,934,525 |
) |
Accumulated deficit |
(2,153,235,425 |
) |
(4,862,464,162 |
) |
Total Qutoutiao Inc. shareholders’
(deficit)/equity |
1,514,507,305 |
|
(701,481,954 |
) |
Non-controlling interests |
(3,274,525 |
) |
(3,861,667 |
) |
Total (deficit)/equity |
1,511,232,780 |
|
(705,343,621 |
) |
|
|
|
Total liabilities, redeemable non-controlling interests
and shareholders’ (deficit)/equity |
2,752,471,517 |
|
2,940,196,895 |
|
|
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 |
|
2018 |
|
2019 |
|
2019 |
|
|
2018 |
|
2019 |
|
|
RMB |
RMB |
RMB |
|
RMB |
RMB |
|
|
|
|
|
|
|
Advertising and marketing revenues |
1,247,922,630 |
|
1,381,619,079 |
|
1,588,520,968 |
|
|
2,814,258,024 |
|
5,415,320,542 |
|
Other revenues |
79,070,591 |
|
25,290,100 |
|
69,853,793 |
|
|
207,887,761 |
|
154,760,062 |
|
|
|
|
|
|
|
|
Net revenues |
1,326,993,221 |
|
1,406,909,179 |
|
1,658,374,761 |
|
|
3,022,145,785 |
|
5,570,080,604 |
|
|
|
|
|
|
|
|
Cost of revenues |
(203,797,630 |
) |
(496,081,867 |
) |
(503,910,866 |
) |
|
(503,612,729 |
) |
(1,640,632,056 |
) |
|
|
|
|
|
|
|
Gross profit |
1,123,195,591 |
|
910,827,312 |
|
1,154,463,895 |
|
|
2,518,533,056 |
|
3,929,448,548 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Research and development expenses |
(126,964,578 |
) |
(261,599,590 |
) |
(287,929,828 |
) |
|
(270,107,740 |
) |
(926,231,578 |
) |
Sales and marketing expenses |
(1,368,133,058 |
) |
(1,503,239,735 |
) |
(1,367,748,322 |
) |
|
(3,250,038,106 |
) |
(5,489,707,876 |
) |
General and administrative expenses |
(45,191,017 |
) |
(57,101,646 |
) |
(62,382,900 |
) |
|
(980,725,286 |
) |
(267,033,100 |
) |
Total operating expenses |
(1,540,288,653 |
) |
(1,821,940,971 |
) |
(1,718,061,050 |
) |
|
(4,500,871,132 |
) |
(6,682,972,554 |
) |
|
|
|
|
|
|
|
Other operating income |
724,892 |
|
11,682,263 |
|
7,820,380 |
|
|
724,892 |
|
30,292,356 |
|
|
|
|
|
|
|
|
Loss from Operations |
(416,368,170 |
) |
(899,431,396 |
) |
(555,776,775 |
) |
|
(1,981,613,184 |
) |
(2,723,231,650 |
) |
|
|
|
|
|
|
|
Interest income (expense), net |
16,926,642 |
|
(999,076 |
) |
7,019,198 |
|
|
31,301,616 |
|
27,889,256 |
|
Foreign exchange related gains, net |
798,476 |
|
6,124,404 |
|
(1,720,870 |
) |
|
4,133,996 |
|
1,868,497 |
|
Other gains/(loss), net |
276,700 |
|
5,296,371 |
|
5,760,906 |
|
|
(69,181 |
) |
9,048,926 |
|
|
|
|
|
|
|
|
Loss before provision for income taxes |
(398,366,352 |
) |
(889,009,697 |
) |
(544,717,541 |
) |
|
(1,946,246,753 |
) |
(2,684,424,971 |
) |
Income tax (benefits)/ expense, net |
400,541 |
|
600,811 |
|
(6,645,309 |
) |
|
400,541 |
|
(4,842,876 |
) |
|
|
|
|
|
|
|
Net loss |
(397,965,811 |
) |
(888,408,886 |
) |
(551,362,850 |
) |
|
(1,945,846,212 |
) |
(2,689,267,847 |
) |
|
|
|
|
|
|
|
Net loss attributable to non-controlling interests |
432,220 |
|
227,415 |
|
149,190 |
|
|
3,274,525 |
|
587,142 |
|
Net loss attributable to Qutoutiao Inc. |
(397,533,591 |
) |
(888,181,471 |
) |
(551,213,660 |
) |
|
(1,942,571,687 |
) |
(2,688,680,705 |
) |
|
|
|
|
|
|
|
Accretion to convertible redeemable preferred shares redemption
value |
(978,201 |
) |
(3,627,599 |
) |
(11,626,847 |
) |
|
(102,784,944 |
) |
(20,548,032 |
) |
Gains on repurchase of preferred shares |
- |
|
- |
|
- |
|
|
18,332,152 |
|
- |
|
Deemed dividend to preferred shareholders |
- |
|
- |
|
- |
|
|
(1,916,871 |
) |
- |
|
|
|
|
|
|
|
|
Net loss attributable to Qutoutiao
Inc.’s ordinary
shareholders |
(398,511,792 |
) |
(891,809,070 |
) |
(562,840,507 |
) |
|
(2,028,941,350 |
) |
(2,709,228,737 |
) |
|
|
|
|
|
|
|
Net loss |
(397,965,811 |
) |
(888,408,886 |
) |
(551,362,850 |
) |
|
(1,945,846,212 |
) |
(2,689,267,847 |
) |
Other comprehensive loss/(income): |
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil tax |
(4,435,872 |
) |
8,734,926 |
|
4,967,592 |
|
|
(16,453,526 |
) |
(1,505,649 |
) |
Total comprehensive loss |
(402,401,683 |
) |
(879,673,960 |
) |
(546,395,258 |
) |
|
(1,962,299,738 |
) |
(2,690,773,496 |
) |
Comprehensive loss attributable to non-controlling
interests |
432,220 |
|
227,415 |
|
149,190 |
|
|
3,274,525 |
|
587,142 |
|
Comprehensive loss attributable to Qutoutiao
Inc. |
(401,969,463 |
) |
(879,446,545 |
) |
(546,246,068 |
) |
|
(1,959,025,213 |
) |
(2,690,186,354 |
) |
|
|
|
|
|
|
|
Net loss per ADS (1 Class A ordinary share equals 4
ADSs): |
|
|
|
|
|
|
— Basic and diluted |
(1.61 |
) |
(3.54 |
) |
(2.17 |
) |
|
(14.49 |
) |
(10.68 |
) |
|
|
|
|
|
|
|
Weighted average number of ADS used in computing basic
and diluted earnings per ADS: |
|
|
|
|
|
|
— Basic |
247,084,992 |
|
252,278,760 |
|
259,290,560 |
|
|
140,001,888 |
|
253,682,778 |
|
— Diluted |
247,084,992 |
|
252,278,760 |
|
259,290,560 |
|
|
140,001,888 |
|
253,682,778 |
|
|
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 |
|
2018 |
|
2019 |
|
2019 |
|
|
2018 |
|
2019 |
|
|
RMB |
RMB |
RMB |
|
RMB |
RMB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations |
(416,368,170 |
) |
(899,431,396 |
) |
(555,776,775 |
) |
|
(1,981,613,184 |
) |
(2,723,231,650 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
Cost of revenues |
2,170,147 |
|
1,113,137 |
|
1,790,820 |
|
|
5,711,331 |
|
6,190,081 |
|
General and administrative |
15,186,820 |
|
6,607,320 |
|
15,708,832 |
|
|
906,754,064 |
|
81,954,802 |
|
Sales and marketing |
2,946,192 |
|
11,597,854 |
|
14,576,137 |
|
|
9,538,148 |
|
45,041,278 |
|
Research and development |
10,935,183 |
|
35,940,659 |
|
49,071,905 |
|
|
29,622,707 |
|
138,792,333 |
|
|
|
|
|
|
|
|
Non-GAAP Loss from Operations |
(385,129,828 |
) |
(844,172,426 |
) |
(474,629,081 |
) |
|
(1,029,986,934 |
) |
(2,451,253,156 |
) |
|
|
|
|
|
|
|
Net loss |
(397,965,811 |
) |
(888,408,886 |
) |
(551,362,850 |
) |
|
(1,945,846,212 |
) |
(2,689,267,847 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
Cost of revenues |
2,170,147 |
|
1,113,137 |
|
1,790,820 |
|
|
5,711,331 |
|
6,190,081 |
|
General and administrative |
15,186,820 |
|
6,607,320 |
|
15,708,832 |
|
|
906,754,064 |
|
81,954,802 |
|
Sales and marketing |
2,946,192 |
|
11,597,854 |
|
14,576,137 |
|
|
9,538,148 |
|
45,041,278 |
|
Research and development |
10,935,183 |
|
35,940,659 |
|
49,071,905 |
|
|
29,622,707 |
|
138,792,333 |
|
|
|
|
|
|
|
|
Non-GAAP net loss |
(366,727,469 |
) |
(833,149,916 |
) |
(470,215,156 |
) |
|
(994,219,962 |
) |
(2,417,289,353 |
) |
|
|
|
|
|
|
|
Net loss attributable to Qutoutiao Inc. |
(397,533,591 |
) |
(888,181,471 |
) |
(551,213,660 |
) |
|
(1,942,571,687 |
) |
(2,688,680,705 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
Cost of revenues |
2,170,147 |
|
1,113,137 |
|
1,790,820 |
|
|
5,711,331 |
|
6,190,081 |
|
General and administrative |
15,186,820 |
|
6,607,320 |
|
15,708,832 |
|
|
906,754,064 |
|
81,954,802 |
|
Sales and marketing |
2,946,192 |
|
11,597,854 |
|
14,576,137 |
|
|
9,538,148 |
|
45,041,278 |
|
Research and development |
10,935,183 |
|
35,940,659 |
|
49,071,905 |
|
|
29,622,707 |
|
138,792,333 |
|
|
|
|
|
|
|
|
Non-GAAP net loss attributable to Qutoutiao
Inc. |
(366,295,249 |
) |
(832,922,501 |
) |
(470,065,966 |
) |
|
(990,945,437 |
) |
(2,416,702,211 |
) |
|
|
|
|
|
|
|
Net loss attributable to Qutoutiao Inc.’s ordinary
shareholders |
(398,511,792 |
) |
(891,809,070 |
) |
(562,840,507 |
) |
|
(2,028,941,350 |
) |
(2,709,228,737 |
) |
Add: Share-based compensation expenses |
|
|
|
|
|
|
Cost of revenues |
2,170,147 |
|
1,113,137 |
|
1,790,820 |
|
|
5,711,331 |
|
6,190,081 |
|
General and administrative |
15,186,820 |
|
6,607,320 |
|
15,708,832 |
|
|
906,754,064 |
|
81,954,802 |
|
Sales and marketing |
2,946,192 |
|
11,597,854 |
|
14,576,137 |
|
|
9,538,148 |
|
45,041,278 |
|
Research and development |
10,935,183 |
|
35,940,659 |
|
49,071,905 |
|
|
29,622,707 |
|
138,792,333 |
|
|
|
|
|
|
|
|
Non-GAAP Net loss attributable to Qutoutiao Inc.’s
ordinary shareholders |
(367,273,450 |
) |
(836,550,100 |
) |
(481,692,813 |
) |
|
(1,077,315,100 |
) |
(2,437,250,243 |
) |
|
|
|
|
|
|
|
Non-GAAP net loss per ADS (1 Class A ordinary share
equals 4 ADSs): |
|
|
|
|
|
|
Basic and diluted |
(1.48 |
) |
(3.32 |
) |
(1.86 |
) |
|
(7.70 |
) |
(9.61 |
) |
|
|
|
|
|
|
|
Weighted average number of ADS used in computing basic
and diluted earnings per ADS |
|
|
|
|
|
|
Basic |
247,084,992 |
|
252,278,760 |
|
259,290,560 |
|
|
140,001,888 |
|
253,682,778 |
|
Diluted |
247,084,992 |
|
252,278,760 |
|
259,290,560 |
|
|
140,001,888 |
|
253,682,778 |
|
|
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 |
|
2018 |
2019 |
2019 |
2019 |
2019 |
Net
revenues |
1,327.0 |
1,118.8 |
1,385.9 |
1,406.9 |
1,658.4 |
|
|
|
|
|
|
User engagement expenses5 |
563.3 |
580.8 |
449.5 |
536.1 |
571.4 |
User acquisition expenses6 |
746.9 |
675.3 |
787.9 |
788.3 |
680.9 |
Other sales and marketing expenses |
57.9 |
40.9 |
84.3 |
178.8 |
115.5 |
|
|
|
|
|
|
Total sales
and marketing expenses |
1,368.1 |
1,297.0 |
1,321.8 |
1,503.2 |
1,367.7 |
|
|
|
|
|
|
Combined Average MAUs (in millions) |
93.8 |
111.4 |
119.3 |
133.9 |
137.9 |
Combined Average DAUs (in millions) |
30.9 |
37.5 |
38.7 |
42.1 |
45.7 |
New installed users (in millions) |
113.6 |
108.7 |
113.7 |
119.9 |
123.0 |
|
|
|
|
|
|
Average net revenues per DAU per day
(RMB) |
0.47 |
0.33 |
0.39 |
0.36 |
0.39 |
User engagement expenses per DAU per day
(RMB) |
0.20 |
0.17 |
0.13 |
0.14 |
0.14 |
User
acquisition expenses per new
installed user
(RMB) |
6.57 |
6.21 |
6.93 |
6.58 |
5.54 |
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 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.
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.
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