Artificial Intelligence
Qutoutiao Inc. Reports Second Quarter 2020 Unaudited Financial Results
SHANGHAI, China, Sept. 21, 2020 (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 second quarter ended June 30, 2020.
Second Quarter 2020 Highlights
- Combined average MAUs1 were 136.5 million, compared to 119.3 million in the second quarter of 2019 and 138.3 million in the first quarter of 2020.
- Combined average DAUs2 were 43.0 million, compared to 38.7 million in the second quarter of 2019 and 45.6 million in the first quarter of 2020.
- Average daily time spent per DAU was 55.2 minutes, compared to 60.0 minutes in the second quarter of 2019 and 62.4 minutes in the first quarter of 2020.
- Net revenues increased 4.0% year-over-year to RMB1,441.0 million (US$204.0 million), compared to RMB1,411.8 million in the first quarter of 2020, above the high end of the Company’s guided range of RMB1,410 million and RMB1,430 million.
- Net loss was RMB222.1 million (US$31.4 million), compared to net loss of RMB561.3 million in the second quarter of 2019 and net loss of RMB531.8 million in the first quarter of 2020. Net loss margin was 15.4%, compared to 40.5% in the second quarter of 2019 and 37.7% in the first quarter of 2020.
- Non-GAAP net loss3 was RMB173.3 million (US$24.5 million), compared to non-GAAP net loss of RMB496.3 million in the second quarter of 2019 and non-GAAP net loss of RMB388.1 million in the first quarter of 2020. Non-GAAP net loss margin was 12.0%, compared to 35.8% in the second quarter of 2019 and 27.5% in the first quarter of 2020.
Mr. Eric Siliang Tan, Chairman and Chief Executive Officer of Qutoutiao, commented, “We are delighted to see our operational efficiency improved significantly in the second quarter, as we have maintained a good balance between growth and profitability.”
“We remain motivated by and committed to our long-term vision of bringing rich and diversified online content to millions of users across the country. We feel encouraged by the strategic progress we have been making especially with respect to content and technology and we expect them to be the key pillars supporting our future development.” Mr. Tan concluded.
Second Quarter 2020 Financial Results
Net revenues in the second quarter of 2020 were RMB1,441.0 million (US$204.0 million), an increase of 4.0% from RMB1,385.9 million in the second quarter of 2019.
Advertising and marketing revenues were RMB1,378.1 million (US$195.1 million) in the second quarter of 2020, an increase of 1.5% from RMB1,358.0 million in the second quarter of 2019, primarily due to an increase in the Company’s average DAUs, partially offset by a decrease in average daily time spent by DAUs.
Other revenues were RMB62.9 million (US$8.9 million) in the second quarter of 2020, an increase of 125.0% from RMB27.9 million in the second quarter of 2019. The increase of other revenues was primarily due to the increase of revenues from live-streaming, and, to a lesser extent, the increase of revenues from online games, partially offset by the decrease of revenues from agent services.
Cost of revenues were RMB400.2 million (US$56.6 million) in the second quarter of 2020, an increase of 10.7% from RMB361.4 million in the second quarter of 2019, primarily attributable to increases in content related costs such as revenue sharing with broadcasters and online game developers, and license fees paid to professional medias, reflecting the Company’s long-term vision to build a platform delivering high-quality online content to our users, although these increases were partially offset by decreases from costs of integrated marketing solution services and the nationwide exemption of cultural development fees on the provision of advertising services for 2020.
Gross profit was RMB1,040.8 million (US$147.3 million) in the second quarter of 2020, an increase of 1.6% from RMB1,024.5 million in the second quarter of 2019. Gross margin was 72.2%, compared to 73.9% in the second quarter of 2019. The decrease of gross margin year-over-year was mainly driven by the growth of content related costs.
Research and development expenses were RMB224.2 million (US$31.7 million) in the second quarter of 2020, generally flat with RMB221.3 million in the second quarter of 2019.
Sales and marketing expenses were RMB925.3 million (US$131.0 million) in the second quarter of 2020, a decrease of 30.0% year-over-year from RMB1,321.8 million in the second quarter of 2019. Sales and marketing expenses as a percentage of net revenues was 64.2% in the second quarter of 2020, compared to 95.4% in the second quarter of 2019, continuing to hit record low.
User engagement expenses were RMB457.2 million (US$64.7 million) in the second quarter of 2020, a slight increase of 1.7% year-over-year and a decrease of 9.9% quarter-over-quarter. User engagement expenses per DAU per day were RMB0.12 in the second quarter of 2020, compared to RMB0.13 in the second quarter of 2019 and RMB0.12 in the first quarter of 2020. The decrease of user engagement expenses year-over-year 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 RMB435.7 million (US$61.7 million) in the second quarter of 2020, a decrease of 44.7% year-over-year and 13.2% quarter-over-quarter. User acquisition expenses consist of the costs of both word-of-mouth referrals and third-party marketing. The decrease mainly reflected the Company’s efforts in optimizing its traffic acquisition strategy, and to a lesser extent, the weak advertising market environment. User acquisition expenses per new installed user4 in the second quarter of 2020 were RMB3.3, a decrease of 52.4% year-over-year and 28.3% quarter-over-quarter.
Other sales and marketing expenses were RMB32.5 million (US$4.6 million) in the second quarter of 2020, a decrease of 61.5% year-over-year and 50.1% quarter-over-quarter. The decrease was mainly due to decreases in brand campaigns and sponsorship to TV shows.
General and administrative expenses were RMB105.5 million (US$14.9 million) in the second quarter of 2020, an increase of 66.1% from RMB63.5 million in the second quarter of 2019, mainly due to an additional expected credit loss provision of RMB48.8 million recorded in the second quarter of 2020 under ASC 326, Measurement of Credit Losses on Financial Instruments.
Other operating income was RMB24.8 million (US$3.5 million) in the second quarter of 2020, compared to RMB10.8 million in the second quarter of 2019, primarily due to an increase in our tax deduction as a result of a new tax regulation effective on April 1, 2019.
Loss from operations was RMB189.4 million (US$26.8 million) in the second quarter of 2020, compared to RMB571.3 million in the second quarter of 2019. Operating loss margin was 13.1%, compared to 41.2% in the second quarter of 2019.
Non-GAAP loss from operations was RMB140.6 million (US$19.9 million) in the second quarter of 2020, compared to RMB506.2 million in the second quarter of 2019. Non-GAAP operating loss margin was 9.8%, compared to 36.5% in the second quarter of 2019.
Non-operating loss for the second quarter of 2020 was RMB32.4 million (US$4.6 million), compared to a non-operating income of RMB9.4 million for the same period last year. Non-operating loss for the second quarter of 2020 mainly included a RMB22.8 million loss associated with fair value changes on long-term investments, and a net interest expenses of RMB6.9 million.
Net loss was RMB222.1 million (US$31.4 million), compared to net loss of RMB561.3 million in the second quarter of 2019. Net loss margin was 15.4%, compared to 40.5% in the second quarter of 2019.
Non-GAAP net loss was RMB173.3 million (US$24.5 million), compared to non-GAAP net loss of RMB496.3 million in the second quarter of 2019. Non-GAAP net loss margin was 12.0%, compared to 35.8% in the second quarter of 2019.
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB234.3 million (US$33.2 million) in the second quarter of 2020, compared to RMB564.3 million in the second quarter of 2019. Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB185.5 million (US$26.3 million) in the second quarter of 2020, compared to RMB499.2 million in the second quarter of 2019.
Basic and diluted net loss per American Depositary Share (“ADS”) was RMB0.81 (US$0.11) in the second quarter of 2020. Non-GAAP basic and diluted net loss per ADS was RMB0.64 (US$0.09) in the second quarter of 2020. Each four ADSs represent one Class A ordinary share of the Company.
Cash and cash flow
As of June 30, 2020, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB930.3 million (US$131.7 million), compared to RMB1,652.5 million as of December 31, 2019. Net cash used in operating activities in the second quarter of 2020 was RMB216.2 million (US$30.6 million), compared to RMB621.3 million in the second quarter of 2019.
Our liquidity to meet our future working capital and capital expenditure requirements is based on our ability to enhance user engagement and retention by offering higher quality and diversified contents while closely control the content costs, and optimize the user loyalty programs and the traffic acquisition strategy to efficiently control and reduce these user related costs. We will further preserve liquidity and manage cash flows by reducing discretionary expenditure including advertising expenses and general and administrative expenses. Our liquidity is also based on our ability to obtain capital financing from equity or debt investors. Currently, we believe that we have sufficient cash and other financial resources to fund operations for at least the next 12 months.
Recent Development
On July 16, 2020, China Central Television (“CCTV”) reported in its Annual Consumer Rights Show (“3.15 Consumer Night”) that certain advertisements placed by third-party advertising agents on Qutoutiao exaggerated the health benefits of certain food and diet products and promoted activities that may involve online-gambling (the “CCTV Report”, or “the Report”).
In response to the issues raised by the Report, the Company promptly took appropriate measures such as immediate suspension of all employees involved in these advertisements, including the person in charge of advertising operations, stricter management of all third-party advertising agents, enhancement of content management capabilities in identifying misleading or inappropriate advertisements, and the launch of an easy-to-use and easy-to-find complaint channel on the home screen of Qutoutiao so that users can file their complaints with us on any advertisement placed on our app. The Qutoutiao app was temporarily removed from several major Android-based app stores in China after the CCTV Report but was reinstated on July 31, 2020.
The Company has observed negative impacts on its business operation and financial performance due to the above incidents in the third quarter of 2020 and is still evaluating the extent of such impacts. The Company highly appreciates the importance of strict compliance with all applicable laws and regulations and believes the measures taken by the Company are critical to protect the interests of its users and investors in the long term.
Business Outlook
For the third quarter of 2020, the Company currently expects net revenues to be between RMB1,130 million and RMB1,150 million, representing a decrease of 18% to 20% year-over-year. The Company also expects loss from operations to be narrowed significantly on a year-over-year basis and flat on a quarter-over-quarter basis. This outlook reflects Qutoutiao’s current and preliminary view including preliminary assessment on the potential impacts from the CCTV Report, which is subject to uncertainty.
Conference Call
Qutoutiao’s management will host an earnings conference call at 9:00 p.m. U.S. Eastern Time on September 21, 2020 (9:00 a.m. Beijing/Hong Kong time on September 22).
Due to the outbreak of COVID-19, operators to assist conference calls are not available at the moment. To speed up the entry process, all participants who wish to join the call must preregister online prior to the call to receive the dial-in details.
Preregistration Information
Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/6383212 at least 15 minutes prior to the scheduled call start time. Once preregistration has been complete, participants will receive dial-in numbers, Direct Event Passcode, and a unique Registrant ID.
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.
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 9:59 a.m. U.S Eastern Time on September 29, 2020, by dialing the following telephone numbers:
United States: | +1-646-254-3697 |
International: | +61-2-8199-0299 |
Hong Kong, China: | +852-3051-2780 |
Mainland China: | 400-632-2162 |
Replay Access Code: | 6383212 |
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. Midu, first launched in May 2018 as Midu Novels and with an alternative version Midu Lite launched one year later, pioneered provision of free online literature supported by advertising. It has grown tremendously and has led the free online literature industry since inception. 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 excluding 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 “Reconciliation 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 RMB7.0651 to US$1.00, the rate in effect as of June 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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:
Qutoutiao Inc.
Investor Relations
Tel: +86-21-6858-3790
E-mail: [email protected]
QUTOUTIAO INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in RMB, or otherwise noted) |
||||
As of December 31, | As of June 30, | |||
2019 | 2020 | |||
RMB | RMB | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | 347,817,093 | 160,394,702 | ||
Restricted cash | 27,871,552 | 52,023,116 | ||
Short-term investments | 1,276,830,926 | 717,871,323 | ||
Accounts receivable, net | 526,822,932 | 480,754,687 | ||
Amount due from related parties | 278,155,878 | 314,969,729 | ||
Prepayments and other current assets | 234,728,386 | 177,278,752 | ||
Total current assets | 2,692,226,767 | 1,903,292,309 | ||
Non-current assets: | ||||
Long-term investments | 37,589,200 | 100,280,155 | ||
Property and equipment, net | 24,115,374 | 18,592,584 | ||
Intangible assets | 88,943,679 | 89,952,910 | ||
Goodwill | 7,268,330 | 7,268,330 | ||
Right-of-use assets, net | 69,241,754 | 46,506,200 | ||
Other non-current assets | 20,811,791 | 13,887,615 | ||
Total non-current assets | 247,970,128 | 276,487,794 | ||
Total assets | 2,940,196,895 | 2,179,780,103 | ||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND SHAREHOLDERS’ DEFICIT | ||||
Current liabilities: | ||||
Accounts payable | 328,268,752 | 370,749,967 | ||
Amount due to a related party | 3,436,586 | 491,654 | ||
Registered users’ loyalty payable | 134,145,439 | 115,933,727 | ||
Advance from customers and deferred revenue | 246,630,128 | 165,292,154 | ||
Salary and welfare payable | 129,169,734 | 160,287,421 | ||
Tax payable | 118,156,494 | 154,272,429 | ||
Lease liabilities, current | 38,210,188 | 28,123,389 | ||
Accrued liabilities related to users’ loyalty programs | 89,184,947 | 87,829,475 | ||
Accrued liabilities and other current liabilities | 788,495,442 | 588,828,418 | ||
Total current liabilities | 1,875,697,710 | 1,671,808,634 | ||
Lease liabilities, non-current | 26,651,446 | 12,631,381 | ||
Convertible loan | 1,218,905,676 | 1,255,596,411 | ||
Deferred tax liabilities | 21,228,656 | 20,027,036 | ||
Other non-current liabilities | 7,212,463 | 5,968,443 | ||
Non-current liabilities | 1,273,998,241 | 1,294,223,271 | ||
Total liabilities | 3,149,695,951 | 2,966,031,905 | ||
Total redeemable non-controlling interests | 495,844,565 | 527,424,504 | ||
Shareholders’ deficit | ||||
Ordinary shares | 44,651 | 45,482 | ||
Treasury stock | (142,228,779 | ) | (142,228,779 | ) |
Additional paid-in capital | 4,321,100,861 | 4,513,693,740 | ||
Accumulated other comprehensive loss | (17,934,525 | ) | (33,872,367 | ) |
Accumulated deficit | (4,862,464,162 | ) | (5,647,136,513 | ) |
Total Qutoutiao Inc. shareholders’ deficit | (701,481,954 | ) | (1,309,498,437 | ) |
Non-controlling interests | (3,861,667 | ) | (4,177,869 | ) |
Total deficit | (705,343,621 | ) | (1,313,676,306 | ) |
Total liabilities, redeemable non-controlling interests and shareholders’ deficit | 2,940,196,895 | 2,179,780,103 |
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 six months ended | ||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | |||||||
2019 | 2020 | 2020 | 2019 | 2020 | |||||||
RMB | RMB | RMB | RMB | RMB | |||||||
Advertising and marketing revenues | 1,358,002,272 | 1,363,999,871 | 1,378,130,528 | 2,445,180,495 | 2,742,130,399 | ||||||
Other revenues | 27,944,539 | 47,796,796 | 62,864,776 | 59,616,169 | 110,661,572 | ||||||
Net revenues5 | 1,385,946,811 | 1,411,796,667 | 1,440,995,304 | 2,504,796,664 | 2,852,791,971 | ||||||
Cost of revenues | (361,446,349 | ) | (460,755,006 | ) | (400,215,157 | ) | (640,639,323 | ) | (860,970,163 | ) | |
Gross profit | 1,024,500,462 | 951,041,661 | 1,040,780,147 | 1,864,157,341 | 1,991,821,808 | ||||||
Operating expenses: | |||||||||||
Research and development expenses | (221,318,168 | ) | (280,863,263 | ) | (224,200,283 | ) | (376,702,160 | ) | (505,063,546 | ) | |
Sales and marketing expenses | (1,321,768,628 | ) | (1,074,527,955 | ) | (925,311,954 | ) | (2,618,719,819 | ) | (1,999,839,909 | ) | |
General and administrative expenses | (63,509,965 | ) | (107,495,935 | ) | (105,471,595 | ) | (147,548,555 | ) | (212,967,530 | ) | |
Total operating expenses | (1,606,596,761 | ) | (1,462,887,153 | ) | (1,254,983,832 | ) | (3,142,970,534 | ) | (2,717,870,985 | ) | |
Other operating income | 10,789,713 | 7,117,280 | 24,789,953 | 10,789,713 | 31,907,233 | ||||||
Loss from Operations | (571,306,586 | ) | (504,728,212 | ) | (189,413,732 | ) | (1,268,023,480 | ) | (694,141,944 | ) | |
Investment income/ (expenses), net | 2,370,255 | (16,530,832 | ) | (20,980,036 | ) | 3,603,286 | (37,510,868 | ) | |||
Interest income/ (expenses), net | 6,585,339 | (3,412,695 | ) | (6,900,309 | ) | 18,265,848 | (10,313,004 | ) | |||
Foreign exchange related gains/ (losses), net | 390,043 | (2,526,636 | ) | (270,407 | ) | (2,535,037 | ) | (2,797,043 | ) | ||
Other gains/ (losses), net | 48,952 | (3,519,931 | ) | (4,213,270 | ) | (2,008,351 | ) | (7,733,201 | ) | ||
Non-operating income (loss) | 9,394,589 | (25,990,094 | ) | (32,364,022 | ) | 17,325,746 | (58,354,116 | ) | |||
Loss before provision for income taxes | (561,911,997 | ) | (530,718,306 | ) | (221,777,754 | ) | (1,250,697,734 | ) | (752,496,060 | ) | |
Income tax benefits/ (expenses), net | 600,811 | (1,101,528 | ) | (321,533 | ) | 1,201,622 | (1,423,061 | ) | |||
Net loss | (561,311,186 | ) | (531,819,834 | ) | (222,099,287 | ) | (1,249,496,112 | ) | (753,919,121 | ) | |
Net loss attributable to non-controlling interests | 56,711 | 206,973 | 109,229 | 210,537 | 316,202 | ||||||
Net loss attributable to Qutoutiao Inc. | (561,254,475 | ) | (531,612,861 | ) | (221,990,058 | ) | (1,249,285,575 | ) | (753,602,919 | ) | |
Accretion to convertible redeemable preferred shares redemption value | (3,020,121 | ) | (11,865,025 | ) | (12,315,628 | ) | (5,293,586 | ) | (24,180,653 | ) | |
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (564,274,596 | ) | (543,477,886 | ) | (234,305,686 | ) | (1,254,579,161 | ) | (777,783,572 | ) | |
Net loss | (561,311,186 | ) | (531,819,834 | ) | (222,099,287 | ) | (1,249,496,112 | ) | (753,919,121 | ) | |
Other comprehensive income/ (loss): | |||||||||||
Foreign currency translation adjustment, net of nil tax | 21,815,137 | (16,231,212 | ) | 293,370 | (15,208,167 | ) | (15,937,842 | ) | |||
Total comprehensive loss | (539,496,049 | ) | (548,051,046 | ) | (221,805,917 | ) | (1,264,704,279 | ) | (769,856,963 | ) | |
Comprehensive loss attributable to non-controlling interests | 56,711 | 206,973 | 109,229 | 210,537 | 316,202 | ||||||
Comprehensive loss attributable to Qutoutiao Inc. | (539,439,338 | ) | (547,844,073 | ) | (221,696,688 | ) | (1,264,493,742 | ) | (769,540,761 | ) | |
Net loss per ADS (1 Class A ordinary share equals 4 ADSs): | |||||||||||
— Basic and diluted | (2.07 | ) | (1.90 | ) | (0.81 | ) | (4.71 | ) | (2.71 | ) | |
Weighted average number of ADS used in computing basic and diluted earnings per ADS: | |||||||||||
— Basic | 272,274,310 | 285,632,276 | 288,538,032 | 266,639,600 | 287,085,156 | ||||||
— Diluted | 272,274,310 | 285,632,276 | 288,538,032 | 266,639,600 | 287,085,156 | ||||||
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 six months ended | ||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | |||||||
2019 | 2020 | 2020 | 2019 | 2020 | |||||||
RMB | RMB | RMB | RMB | RMB | |||||||
Loss from Operations | (571,306,586 | ) | (504,728,212 | ) | (189,413,732 | ) | (1,268,023,480 | ) | (694,141,944 | ) | |
Add: Share-based compensation expenses6 | |||||||||||
Cost of revenues | 1,629,139 | 3,484,267 | 3,077,141 | 3,286,124 | 6,561,408 | ||||||
General and administrative | 14,208,730 | 52,481,244 | 13,059,206 | 59,638,650 | 65,540,450 | ||||||
Sales and marketing | 11,776,526 | 21,687,394 | 3,612,409 | 18,867,287 | 25,299,803 | ||||||
Research and development | 37,446,655 | 66,097,344 | 29,093,874 | 53,779,769 | 95,191,218 | ||||||
Non-GAAP Loss from Operations | (506,245,536 | ) | (360,977,963 | ) | (140,571,102 | ) | (1,132,451,650 | ) | (501,549,065 | ) | |
Net loss | (561,311,186 | ) | (531,819,834 | ) | (222,099,287 | ) | (1,249,496,112 | ) | (753,919,121 | ) | |
Add: Share-based compensation expenses5 | |||||||||||
Cost of revenues | 1,629,139 | 3,484,267 | 3,077,141 | 3,286,124 | 6,561,408 | ||||||
General and administrative | 14,208,730 | 52,481,244 | 13,059,206 | 59,638,650 | 65,540,450 | ||||||
Sales and marketing | 11,776,526 | 21,687,394 | 3,612,409 | 18,867,287 | 25,299,803 | ||||||
Research and development | 37,446,655 | 66,097,344 | 29,093,874 | 53,779,769 | 95,191,218 | ||||||
Non-GAAP net loss | (496,250,136 | ) | (388,069,585 | ) | (173,256,657 | ) | (1,113,924,282 | ) | (561,326,242 | ) | |
Net loss attributable to Qutoutiao Inc. | (561,254,475 | ) | (531,612,861 | ) | (221,990,058 | ) | (1,249,285,575 | ) | (753,602,919 | ) | |
Add: Share-based compensation expenses5 | |||||||||||
Cost of revenues | 1,629,139 | 3,484,267 | 3,077,141 | 3,286,124 | 6,561,408 | ||||||
General and administrative | 14,208,730 | 52,481,244 | 13,059,206 | 59,638,650 | 65,540,450 | ||||||
Sales and marketing | 11,776,526 | 21,687,394 | 3,612,409 | 18,867,287 | 25,299,803 | ||||||
Research and development | 37,446,655 | 66,097,344 | 29,093,874 | 53,779,769 | 95,191,218 | ||||||
Non-GAAP net loss attributable to Qutoutiao Inc. | (496,193,425 | ) | (387,862,612 | ) | (173,147,428 | ) | (1,113,713,745 | ) | (561,010,040 | ) | |
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (564,274,596 | ) | (543,477,886 | ) | (234,305,686 | ) | (1,254,579,161 | ) | (777,783,572 | ) | |
Add: Share-based compensation expenses5 | |||||||||||
Cost of revenues | 1,629,139 | 3,484,267 | 3,077,141 | 3,286,124 | 6,561,408 | ||||||
General and administrative | 14,208,730 | 52,481,244 | 13,059,206 | 59,638,650 | 65,540,450 | ||||||
Sales and marketing | 11,776,526 | 21,687,394 | 3,612,409 | 18,867,287 | 25,299,803 | ||||||
Research and development | 37,446,655 | 66,097,344 | 29,093,874 | 53,779,769 | 95,191,218 | ||||||
Non-GAAP Net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (499,213,546 | ) | (399,727,637 | ) | (185,463,056 | ) | (1,119,007,331 | ) | (585,190,693 | ) | |
Non-GAAP net loss per ADS (1 Class A ordinary share equals 4 ADSs): | |||||||||||
— Basic and diluted | (1.83 | ) | (1.40 | ) | (0.64 | ) | (4.20 | ) | (2.04 | ) | |
Weighted average number of ADS used in computing basic and diluted earnings per ADS | |||||||||||
— Basic | 272,274,310 | 285,632,276 | 288,538,032 | 266,639,600 | 287,085,156 | ||||||
— Diluted | 272,274,310 | 285,632,276 | 288,538,032 | 266,639,600 | 287,085,156 |
QUTOUTIAO INC. Supplementary Operating Information (RMB in millions, or otherwise noted) |
|||||
For the three months ended | |||||
June 30 | September 30 | December 31 | March 31 | June 30 | |
2019 | 2019 | 2019 | 2020 | 2020 | |
Net revenues | 1,385.9 | 1,406.9 | 1,658.4 | 1,411.8 | 1,441.0 |
User engagement expenses7 | 449.5 | 536.1 | 571.4 | 507.5 | 457.2 |
User acquisition expenses8 | 787.9 | 788.3 | 680.9 | 502.0 | 435.7 |
Other sales and marketing expenses | 84.3 | 178.8 | 115.5 | 65.1 | 32.5 |
Total sales and marketing expenses | 1,321.8 | 1,503.2 | 1,367.7 | 1,074.5 | 925.3 |
Combined Average MAUs (in millions) | 119.3 | 133.9 | 137.9 | 138.3 | 136.5 |
Combined Average DAUs (in millions) | 38.7 | 42.1 | 45.7 | 45.6 | 43.0 |
New installed users (in millions) | 113.7 | 119.9 | 123.0 | 109.2 | 132.2 |
Average net revenues per DAU per day (RMB) | 0.39 | 0.36 | 0.39 | 0.34 | 0.37 |
User engagement expenses per DAU per day (RMB) | 0.13 | 0.14 | 0.14 | 0.12 | 0.12 |
User acquisition expenses per new installed user (RMB) | 6.93 | 6.58 | 5.54 | 4.60 | 3.30 |
_____________________
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 Revenues from transactions with related parties as a percentage of net revenues decreased to 3.9% in the second quarter of 2020 from 9.4% in the second quarter of 2019 on a year-over-year basis, and from 6.8% in the first quarter of 2020 on a quarter-over-quarter basis, respectively.
6 There is no tax impact associated with the Company’s share-based compensation expenses.
7 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 DAU per day” refer to such expenses incurred on an average DAU per day during a particular period.
8 “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.
Artificial Intelligence
CGTN: 3rd CMG Forum in Beijing discusses AI development
BEIJING, May 1, 2024 /PRNewswire/ — Focusing on the development of AI, the third CMG Forum was held on Monday in Beijing.
Li Shulei, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and the head of the Publicity Department of the CPC Central Committee, attended the opening of the event and delivered a speech.
Guests at the forum stressed the role of media in promoting the innovative application of AI as well as its governance.
Efforts should also be made to boost the development of AI in creating positive, healthy, diverse and high-quality content, so that AI can become a force for good and benefit mankind, they agreed.
They also called on media to accelerate intelligent transformation and help bridge international exchanges and cooperation on the governance of AI to facilitate its healthy, orderly and safe development.
Hosted by China Media Group (CMG), the forum attracted more than 200 participants from international organizations, media, think tanks and multinational companies.
“Innovation and breakthroughs in science and technology not only guide the development and progress of human civilization, but also bring uncertainty to the changing world,” said Shen Haixiong, vice minister of the Publicity Department of the CPC Central Committee and president of CMG. He called for efforts to jointly create valuable and responsible artificial intelligence.
AI technology is affecting every aspect of our lives. Thomas Bach, president of the International Olympic Committee (IOC), stated in a video speech that CMG has always been a partner of the IOC, bringing the charm of the Olympic Games to hundreds of millions of Chinese viewers. He said the IOC invites CMG to work together for the creation of a future with the application of AI in Olympic sports.
“From ancient inventions such as silk, printing and the compass to modern technological advances such as robotics, telecommunications and green technology, China has always been committed to innovation and creation,” said Daren Tang, director general of the World Intellectual Property Organization (WIPO). He said WIPO pays close attention to ensuring a balance between the opportunities and risks of artificial intelligence and is committed to strengthening cooperation to ensure that artificial intelligence is properly used.
https://news.cgtn.com/news/2024-04-30/3rd-CMG-Forum-in-Beijing-discusses-AI-development-1tdDcXvCexG/p.html
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Artificial Intelligence
Trianz Appoints Sridhar Kannan as Practice Leader – Digital, Elevating its Leadership in the Global Digital Transformation Space
SANTA CLARA, Calif., May 1, 2024 /PRNewswire/ — Digital transformation technology & services company Trianz is pleased to announce the appointment of Sridhar Kannan as Practice Leader – Digital. With over 25 years of extensive experience in technology and business leadership, Sridhar joins Trianz to lead the expansion of Trianz’s Digital Practice, forging strategic alliances and expanding the business footprint.
Sridhar’s appointment comes at a transformative phase for Trianz as it solidifies its commitment to redefining the digital landscape with an “IP Led” model. This strategic shift is powered by Trianz’s cutting-edge hyper-automated platforms, Concierto.Cloud, Extrica.AI, and Pulse, driving industry-leading transformations in cloud, data and analytics, AI, and the digital workplace. Sridhar’s visionary leadership in technology-led business transformations across diverse sectors will be instrumental in leveraging IP-led models and innovative methodologies to position Trianz at the forefront of digital transformation.
“We are thrilled to welcome Sridhar Kannan to the Trianz family,” said Seshi Vanguru, Chief Revenue Officer at Trianz. “His appointment marks a significant stride in Trianz’s journey toward innovation and excellence. Sridhar’s wealth of experience and exceptional leadership skills will elevate our Digital Practice to new heights, reaffirming our commitment to delivering exceptional value to our clients.”
Sridhar is recognized as a client-focused technology and business transformation executive with a remarkable track record of helping Banking and Financial Services organizations in business transformation and product innovation using applications, cloud, data, and digital solutions. His extensive prior experience at industry giants such as Wipro, Cognizant, and Infosys include successfully leading Fortune 10 global client relationships and implementing transformative solutions across Banking, Financial Services, and Healthcare industries. Sridhar is highly regarded for his ability to lead global cross-functional teams, foster collaboration, and achieve aggressive business goals while consistently delivering high levels of client satisfaction.
“I am deeply honored to join Trianz and contribute to its mission of shaping the future through digital transformation,” said Sridhar. “Together, we will push the boundaries of what’s possible and drive meaningful impact for our clients in this rapidly evolving digital landscape.”
Based out of Minnesota, US, Sridhar has steered numerous clients towards success through the strategic application of Digital, Cloud, Product Engineering, Data, AI, and Application services, making him a seasoned strategist in today’s dynamic digital landscape. His appointment marks a significant milestone in Trianz’s journey to nurturing talent and delivering world-class solutions.
About Trianz
Trianz is a leading-edge technology platforms and services company that accelerates digital transformations at Fortune 100 and emerging companies worldwide in data & analytics, digital experiences, cloud infrastructure, and security. Our “IP Led Transformations” approach, informed by insights from a recent global study spanning 20+ industries and 5000+ companies, addresses challenges posed by the rapid pace of AI-driven transformation, digital talent scarcity, and economic uncertainty. Our IP and platforms, including Concierto, Extrica, and Pulse, revolutionize cloud adoption, data analytics, and AI insights, empowering organizations to navigate the complexities of digital transformation seamlessly.
Founded in California and with an organization of over 2,000 associates across the United States and India, Trianz is a Premier Partner of AWS, consistently rated #1 by clients for value delivery over the past five years. Trianz has been ranked as one of the best Consulting Firms by Forbes and has been certified as a Great Place to Work for three years in a row. To learn more about Trianz, email [email protected] or visit www.trianz.com.
Watch Trianz CEO Sri Manchala’s insightful interview with Bloomberg on Partner | Crossing The Digital Faultline & Leading Towards Transformative Success – YouTube and delve deeper into his book Crossing the Digital Faultline at Crossing the Digital Faultline | Trianz.
Trianz Media Team : [email protected]+1-408-387-5800
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Artificial Intelligence
2024 World Digital Health Forum: AI at the Forefront of Healthcare Innovation
BEIJING, May 1, 2024 /PRNewswire/ — Hosted by Tsinghua University and its partners, the 2024 World Digital Health Forum emerged as a cornerstone of the ZGC Forum’s AI Theme Day. Held in Beijing’s tech-centric Haidian District, this event attracted over 700,000 online attendees from around the globe. The forum was a collaboration with the Haidian District People’s Government, the Chinese Institute of Electronics, Tsinghua University School of Clinical Medicine, and the China Association for the Promotion of Science and Technology Industrialization, highlighting pioneering innovations and fostering global partnerships to enhance patient well-being.
The Forum showcased an impressive lineup of speakers, each contributing unique insights into the evolving digital health landscape. Notable among them were Dong Jiahong, President of the Academic Committee at Tsinghua University School of Clinical Medicine, and Andrew Chi-Chih Yao, Dean of the Institute for Interdisciplinary Information Sciences at Tsinghua University and the recipient of the 2000 Turing Award. Speeches from Mustafa Shehu, President of the World Federation of Engineering Organizations, and Martin Taylor, WHO Representative in China, enriched the overall perspectives presented at the Forum. Attended by 19 academicians and 70 deans, the event spurred extensive discussions on the future of healthcare in an era increasingly shaped by AI.
A highlight of the Forum was the release of the “Tsinghua Urban Health Index,” which provides a comprehensive assessment of health services across 296 Chinese cities, establishing a new benchmark in health metrics to aid governmental and regional health planning. In addition, the “World Digital Health Forum Declaration” was ratified, laying down a robust framework for universal access to healthcare, and underscoring the importance of collaboration, ethical standards, and innovation-driven changes in global healthcare practices.
The Principal’s Dialogue, a pivotal segment of the Forum, brought together leaders from premier universities to discuss advancing new productive forces and constructing a robust medical talent-cultivating system. During this session, Tsinghua University highlighted its plans to develop an integrated education system connecting hospitals, medical schools, and research institutions. This approach aims to nurture students who are not only skilled in interdisciplinary collaboration but also deeply grounded in humanistic values. The dialogue explored the transformative impact of AI and digital technologies in enhancing diagnostic accuracy and treatment efficacy. They particularly noted the potential for these technologies to enable real-time, remote medical guidance in regions with limited medical resources, enhancing a balanced healthcare delivery nationwide. Additionally, panelists stressed the importance of maintaining an ethical and patient-centric approach in developing and adopting digital health technologies. They advocated for dynamic systems that can adapt to the evolving needs of patients throughout their lifetimes.
The 2024 World Digital Health Forum facilitated high-level discussions and catalyzed future innovations in the digital health sphere. It aims to advance the digital health industry, integrate digital technologies with health and life sciences, and foster new developments in health careers. In doing so, it seeks to enhance global health outcomes and contribute to the collective well-being of communities globally.
Media Enquiries:
Global Communication Office, [email protected]
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View original content:https://www.prnewswire.co.uk/news-releases/2024-world-digital-health-forum-ai-at-the-forefront-of-healthcare-innovation-302133294.html
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