Artificial Intelligence
Qutoutiao Inc. Reports Third Quarter 2020 Unaudited Financial Results
SHANGHAI, China, Dec. 16, 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 third quarter ended September 30, 2020.
Third Quarter 2020 Highlights
Mr. Eric Siliang Tan, Chairman and Chief Executive Officer of Qutoutiao, commented, “We are delighted to see the resilience of our business as reflected in the results of the third quarter.”
“As we continue to improve the operational efficiency, we see a balanced and promising path towards growth and profitability for the coming years,” Mr. Tan concluded.
Third Quarter 2020 Financial Results Net revenues in the third quarter of 2020 were RMB1,130.0 million (US$166.4 million), a decrease of 19.7% from RMB1,406.9 million in the third quarter of 2019.
Advertising and marketing revenues were RMB1,062.8 million (US$156.5 million) in the third quarter of 2020, a decrease of 23.1% from RMB1,381.6 million in the third quarter of 2019. The year-over-year decrease in our advertising and marketing revenues was primarily due to the remedial measures undertaken by us in response to the report by China Central Television on certain advertisements placed by third-party advertising agents on Qutoutiao application, such as removing misleading or inappropriate advertisements from our applications, and the temporary removal of Qutoutiao application from several major Android-based app stores in China from July 16, 2020 to July 31, 2020, which caused decreases in our average MAUs, average DAUs and average daily time spent by DAU. The relevant incidents were disclosed in our earnings release for the second quarter of 2020. To a lesser extent, the decrease was also due to the impact of COVID-19, which adversely affected the sentiment of our advertisers.
Other revenues were RMB67.2 million (US$9.9 million) in the third quarter of 2020, an increase of 165.9% from RMB25.3 million in the third quarter of 2019, primarily due to increase of revenues from live-streaming, and to a lesser extent, increase of revenues from Midu’s membership service and online games.
Cost of revenues were RMB371.8 million (US$54.8 million) in the third quarter of 2020, a decrease of 25.1% from RMB496.1 million in the third quarter of 2019, primarily attributable to decrease in costs of integrated marketing services and savings in IT infrastructure costs, and the nationwide exemption of cultural development fees on the provision of advertising services for 2020, although these decreases were partially offset by increases in revenue sharing with game developers, and license fees paid to professional medias.
Gross profit was RMB758.3 million (US$111.7 million) in the third quarter of 2020, a decrease of 16.8% from RMB910.8 million in the third quarter of 2019. Gross margin was 67.1%, increased from 64.7% in the third quarter of 2019, mainly driven by decrease of integrated marketing services in the third quarter of 2020, which has a relative lower gross margin. Research and development expenses were RMB243.1 million (US$35.8 million) in the third quarter of 2020, a decrease of 7.1% from RMB261.6 million in the third quarter of 2019, mainly due to savings of personnel expenses relating to a trim of headcount in research and development personnel.
Sales and marketing expenses were RMB701.5 million (US$103.3 million) in the third quarter of 2020, a decrease of 53.3% year-over-year from RMB1,503.2 million in the third quarter of 2019. Sales and marketing expenses as a percentage of net revenues was 62.1% in the third quarter of 2020, compared to 106.8% in the third quarter of 2019.
User engagement expenses were RMB264.7 million (US$39.0 million) in the third quarter of 2020, a decrease of 50.6% year-over-year and 42.1% quarter-over-quarter. User engagement expenses per DAU per day were RMB0.07 in the third quarter of 2020, compared to RMB0.14 in the third quarter of 2019 and RMB0.12 in the second quarter of 2020. In the third quarter, the Company continuously refined its loyalty program algorithm. With the savings in engagement expenses, the Company was able to continue its invests in richer and more attractive content as well as the algorithm that aims to match the content much more precisely with user needs, which enhanced user engagement and further reduced the Company’s reliance on its loyalty programs.
User acquisition expenses were RMB385.9 million (US$56.8 million) in the third quarter of 2020, a decrease of 51.0% year-over-year and 11.4% 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 third quarter of 2020 were RMB5.73, which decreased by 12.8% year-over-year but increased by 73.9% quarter-over-quarter. The quarter-over-quarter increase reflected the shift of our traffic acquisition focus, from new initiatives that had relative low installation costs in the second quarter, to core applications such as Midu and Qutoutiao in the third quarter.
Other sales and marketing expenses were RMB50.9 million (US$7.5 million) in the third quarter of 2020, decreased by 71.5% year-over-year but increased by 56.9% quarter-over-quarter, mainly driven by decreased sponsorship to TV shows year-over-year, and increased share-based compensation expenses quarter-over-quarter. General and administrative expenses were RMB85.5 million (US$12.6 million) in the third quarter of 2020, an increase of 49.7% from RMB57.1 million in the third quarter of 2019. General and administrative expenses for the third quarter of 2020 included share-based compensation expenses of RMB49.1 million (US$7.2 million), compared to RMB6.6 million in the corresponding period of 2019, mainly driven by new option grants and vesting conditions being met during the third quarter of 2020.
Other operating income was RMB23.8 million (US$3.5 million) in the third quarter of 2020, compared to RMB11.7 million in the third quarter of 2019, primarily due to an increase in our VAT deduction as a result of a new tax regulation effective on April 1, 2019.
Loss from operations was RMB247.9 million (US$36.5 million) in the third quarter of 2020, compared to RMB899.4 million in the third quarter of 2019. Operating loss margin was 21.9%, compared to 63.9% in the third quarter of 2019.
Non-GAAP loss from operations was RMB109.9 million (US$16.2 million) in the third quarter of 2020, compared to RMB844.2 million in the third quarter of 2019. Non-GAAP operating loss margin was 9.7%, compared to 60.0% in the third quarter of 2019.
Non-operating loss for the third quarter of 2020 was RMB23.6 million (US$3.5 million), compared to a non-operating income of RMB10.4 million for the same period last year. Non-operating loss for the third quarter of 2020 mainly included a RMB15.4 million (US$2.3 million) loss associated with fair value changes on long-term investments, and a net interest expenses of RMB8.0 million. Net loss was RMB269.4 million (US$39.7 million), compared to net loss of RMB888.4 million in the third quarter of 2019. Net loss margin was 23.8%, compared to 63.1% in the third quarter of 2019.
Non-GAAP net loss was RMB131.4 million (US$19.4 million), compared to non-GAAP net loss of RMB833.1 million in the third quarter of 2019. Non-GAAP net loss margin was 11.6%, compared to 59.2% in the third quarter of 2019.
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB281.4 million (US$41.5 million) in the third quarter of 2020, compared to RMB891.8 million in the third quarter of 2019. Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB143.4 million (US$21.1 million) in the third quarter of 2020, compared to RMB836.6 million in the third quarter of 2019.
Basic and diluted net loss per American Depositary Share (“ADS”) was RMB0.96 (US$0.14) in the third quarter of 2020. Non-GAAP basic and diluted net loss per ADS was RMB0.49 (US$0.07) in the third quarter of 2020. Each four ADSs represent one Class A ordinary share of the Company.
Cash and cash flow As of September 30, 2020, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB514.2 million (US$75.7 million), compared to RMB1,652.5 million as of December 31, 2019. Net cash used in operating activities in the third quarter of 2020 was RMB284.3 million (US$41.9 million), compared to RMB669.4 million in the third quarter of 2019. During the third quarter of 2020, the Company paid RMB135.7 million (US$20.0 million) to redeem a portion of preferred shares of a subsidiary and the transaction was completed in the fourth quarter of 2020.
One of Qutoutiao’s subsidiaries entered into definitive investment agreements with certain unaffiliated investors on December 11, 2020.
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 ability to fund operations and meet convertible loan obligations is also based on our ability to obtain capital financing from equity and 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
Director and management change Mr. Yongbo Dai has resigned as a Director of the Company due to personal reasons. The resignation became effective on December 16, 2020. Following Mr. Dai’s resignation, the Board of the Company is now comprised of six members.
Mr. Binjie Zhu has stepped down from the Company’s vice president position for personal reasons effective from November 30, 2020, and he will continue to serve as a senior advisor to the Company.
Business Outlook
For the fourth quarter of 2020, the Company currently expects net revenues to be between RMB1,230 million and RMB1,250 million, representing a decrease of 25% to 26% year-over-year. This outlook reflects Qutoutiao’s current and preliminary view, which is subject to uncertainty.
Conference Call Qutoutiao’s management will host an earnings conference call at 8:00 p.m. U.S. Eastern Time on December 16, 2020 (9:00 a.m. Beijing/Hong Kong time on December 17).
Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.
Preregistration Information
Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/2241767 at least 15 minutes prior to the scheduled call start time.
Please dial-in at least 10 minutes before the scheduled start time of the earnings call and enter the Direct Event Passcode and Registrant ID as instructed to connect to the call. 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 7:59 a.m. U.S Eastern Time on December 24, 2020, by dialing the following telephone numbers:
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 RMB6.7896 to US$1.00, the rate in effect as of September 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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. _____________________________________________ 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 4.4% in the third quarter of 2020 from 14.0% in the third quarter of 2019 on a year-over-year basis, but increased from 3.9% in the second 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.
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:
2241767
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 September 30,
2019
2020
RMB
RMB
ASSETS
Current assets:
Cash and cash equivalents
347,817,093
260,153,347
Restricted cash
27,871,552
64,493,035
Short-term investments
1,276,830,926
189,522,346
Accounts receivable, net
526,822,932
651,838,953
Amount due from related parties
278,155,878
372,946,467
Prepayments and other current assets
234,728,386
181,003,102
Total current assets
2,692,226,767
1,719,957,250
Non-current assets:
Long-term investments
37,589,200
82,599,579
Property and equipment, net
24,115,374
15,117,861
Intangible assets
88,943,679
86,487,437
Goodwill
7,268,330
7,268,330
Right-of-use assets, net
69,241,754
36,622,461
Other non-current assets
20,811,791
148,355,589
Total non-current assets
247,970,128
376,451,257
Total assets
2,940,196,895
2,096,408,507
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND SHAREHOLDERS’ DEFICIT
Current liabilities:
Short-term borrowings
–
20,000,000
Accounts payable
328,268,752
395,971,045
Amount due to a related party
3,436,586
3,332,743
Registered users’ loyalty payable
134,145,439
78,594,329
Advance from customers and deferred revenue
246,630,128
139,457,716
Salary and welfare payable
129,169,734
123,533,514
Tax payable
118,156,494
140,195,990
Lease liabilities, current
38,210,188
19,288,626
Accrued liabilities related to users’ loyalty programs
89,184,947
104,017,226
Accrued liabilities and other current liabilities
788,495,442
709,530,929
Total current liabilities
1,875,697,710
1,733,922,118
Lease liabilities, non-current
26,651,446
8,088,658
Convertible loan
1,218,905,676
1,216,983,850
Deferred tax liabilities
21,228,656
19,426,226
Other non-current liabilities
7,212,463
5,091,639
Non-current liabilities
1,273,998,241
1,249,590,373
Total liabilities
3,149,695,951
2,983,512,491
Total redeemable non-controlling interests
495,844,565
519,935,598
Shareholders’ deficit
Ordinary shares
44,651
46,357
Treasury stock
(142,228,779
)
(142,228,779
)
Additional paid-in capital
4,321,100,861
4,651,697,745
Accumulated other comprehensive income (loss)
(17,934,525
)
16,352,114
Accumulated deficit
(4,862,464,162
)
(5,928,567,972
)
Total Qutoutiao Inc. shareholders’ deficit
(701,481,954
)
(1,402,700,535
)
Non-controlling interests
(3,861,667
)
(4,339,047
)
Total deficit
(705,343,621
)
(1,407,039,582
)
Total liabilities, redeemable non-controlling interests and shareholders’ deficit
2,940,196,895
2,096,408,507
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
2019
2020
2020
2019
2020
RMB
RMB
RMB
RMB
RMB
Advertising and marketing revenues
1,381,619,079
1,378,130,528
1,062,766,624
3,826,799,574
3,804,897,023
Other revenues
25,290,100
62,864,776
67,245,213
84,906,269
177,906,785
Net revenues5
1,406,909,179
1,440,995,304
1,130,011,837
3,911,705,843
3,982,803,808
Cost of revenues
(496,081,867
)
(400,215,157
)
(371,755,415
)
(1,136,721,190
)
(1,232,725,578
)
Gross profit
910,827,312
1,040,780,147
758,256,422
2,774,984,653
2,750,078,230
Operating expenses:
Research and development expenses
(261,599,590
)
(224,200,283
)
(243,118,815
)
(638,301,750
)
(748,182,361
)
Sales and marketing expenses
(1,503,239,735
)
(925,311,954
)
(701,460,094
)
(4,121,959,554
)
(2,701,300,003
)
General and administrative expenses
(57,101,646
)
(105,471,595
)
(85,458,868
)
(204,650,200
)
(298,426,398
)
Total operating expenses
(1,821,940,971
)
(1,254,983,832
)
(1,030,037,777
)
(4,964,911,504
)
(3,747,908,762
)
Other operating income
11,682,263
24,789,953
23,845,671
22,471,976
55,752,904
Loss from Operations
(899,431,396
)
(189,413,732
)
(247,935,684
)
(2,167,454,875
)
(942,077,628
)
Investment income/ (expenses), net
760,625
(20,980,036
)
(14,267,237
)
4,363,911
(51,778,105
)
Interest income/ (expenses), net
(1,759,701
)
(6,900,309
)
(7,958,690
)
16,506,147
(18,271,694
)
Foreign exchange related gains/ (losses), net
6,124,404
(270,407
)
(2,815,634
)
3,589,367
(5,612,677
)
Other gains/ (losses), net
5,296,371
(4,213,270
)
1,457,194
3,288,020
(6,276,007
)
Non-operating income (loss)
10,421,699
(32,364,022
)
(23,584,367
)
27,747,445
(81,938,483
)
Loss before provision for income taxes
(889,009,697
)
(221,777,754
)
(271,520,051
)
(2,139,707,430
)
(1,024,016,111
)
Income tax benefits/ (expenses), net
600,811
(321,533
)
2,081,351
1,802,433
658,290
Net loss
(888,408,886
)
(222,099,287
)
(269,438,700
)
(2,137,904,997
)
(1,023,357,821
)
Net loss attributable to non-controlling interests
227,415
109,229
161,178
437,952
477,380
Net loss attributable to Qutoutiao Inc.
(888,181,471
)
(221,990,058
)
(269,277,522
)
(2,137,467,045
)
(1,022,880,441
)
Accretion to convertible redeemable preferred shares redemption value
(3,627,599
)
(12,315,628
)
(12,153,937
)
(8,921,185
)
(36,334,590
)
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders
(891,809,070
)
(234,305,686
)
(281,431,459
)
(2,146,388,230
)
(1,059,215,031
)
Net loss
(888,408,886
)
(222,099,287
)
(269,438,700
)
(2,137,904,997
)
(1,023,357,821
)
Other comprehensive income/ (loss):
Foreign currency translation adjustment, net of nil tax
8,734,926
293,370
50,224,481
(6,473,241
)
34,286,639
Total comprehensive loss
(879,673,960
)
(221,805,917
)
(219,214,219
)
(2,144,378,238
)
(989,071,182
)
Comprehensive loss attributable to non-controlling interests
227,415
109,229
161,178
437,952
477,380
Comprehensive loss attributable to Qutoutiao Inc.
(879,446,545
)
(221,696,688
)
(219,053,041
)
(2,143,940,286
)
(988,593,802
)
Net loss per ADS (1 Class A ordinary share equals 4 ADSs):
— Basic and diluted
(3.24
)
(0.82
)
(0.96
)
(7.91
)
(3.68
)
Weighted average number of ADS used in computing basic and diluted earnings per ADS:
— Basic
275,162,800
286,430,868
292,990,440
271,362,140
287,704,096
— Diluted
275,162,800
286,430,868
292,990,440
271,362,140
287,704,096
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
2019
2020
2020
2019
2020
RMB
RMB
RMB
RMB
RMB
Loss from Operations
(899,431,396
)
(189,413,732
)
(247,935,684
)
(2,167,454,875
)
(942,077,628
)
Add: Share-based compensation expenses6
Cost of revenues
1,113,137
3,077,141
4,361,030
4,399,261
10,922,438
General and administrative
6,607,320
13,059,206
49,065,733
66,245,970
114,606,183
Sales and marketing
11,597,854
3,612,409
22,104,231
30,465,141
47,404,034
Research and development
35,940,659
29,093,874
62,473,011
89,720,428
157,664,229
Non-GAAP Loss from Operations
(844,172,426
)
(140,571,102
)
(109,931,679
)
(1,976,624,075
)
(611,480,744
)
Net loss
(888,408,886
)
(222,099,287
)
(269,438,700
)
(2,137,904,997
)
(1,023,357,821
)
Add: Share-based compensation expenses6
Cost of revenues
1,113,137
3,077,141
4,361,030
4,399,261
10,922,438
General and administrative
6,607,320
13,059,206
49,065,733
66,245,970
114,606,183
Sales and marketing
11,597,854
3,612,409
22,104,231
30,465,141
47,404,034
Research and development
35,940,659
29,093,874
62,473,011
89,720,428
157,664,229
Non-GAAP net loss
(833,149,916
)
(173,256,657
)
(131,434,695
)
(1,947,074,197
)
(692,760,937
)
Net loss attributable to Qutoutiao Inc.
(888,181,471
)
(221,990,058
)
(269,277,522
)
(2,137,467,045
)
(1,022,880,441
)
Add: Share-based compensation expenses6
Cost of revenues
1,113,137
3,077,141
4,361,030
4,399,261
10,922,438
General and administrative
6,607,320
13,059,206
49,065,733
66,245,970
114,606,183
Sales and marketing
11,597,854
3,612,409
22,104,231
30,465,141
47,404,034
Research and development
35,940,659
29,093,874
62,473,011
89,720,428
157,664,229
Non-GAAP net loss attributable to Qutoutiao Inc.
(832,922,501
)
(173,147,428
)
(131,273,517
)
(1,946,636,245
)
(692,283,557
)
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders
(891,809,070
)
(234,305,686
)
(281,431,459
)
(2,146,388,230
)
(1,059,215,031
)
Add: Share-based compensation expenses6
Cost of revenues
1,113,137
3,077,141
4,361,030
4,399,261
10,922,438
General and administrative
6,607,320
13,059,206
49,065,733
66,245,970
114,606,183
Sales and marketing
11,597,854
3,612,409
22,104,231
30,465,141
47,404,034
Research and development
35,940,659
29,093,874
62,473,011
89,720,428
157,664,229
Non-GAAP Net loss attributable to Qutoutiao Inc.’s ordinary shareholders
(836,550,100
)
(185,463,056
)
(143,427,454
)
(1,955,557,430
)
(728,618,147
)
Non-GAAP net loss per ADS (1 Class A ordinary share equals 4 ADSs):
— Basic and diluted
(3.04
)
(0.65
)
(0.49
)
(7.21
)
(2.53
)
Weighted average number of ADS used in computing basic and diluted earnings per ADS
— Basic
275,162,800
286,430,868
292,990,440
271,362,140
287,704,096
— Diluted
275,162,800
286,430,868
292,990,440
271,362,140
287,704,096
QUTOUTIAO INC.
Supplementary Operating Information
(RMB in millions, or otherwise noted)
For the three months ended
September 30
December 31
March 31
June 30
September 30
2019
2019
2020
2020
2020
Net revenues
1,406.9
1,658.4
1,411.8
1,441.0
1,130.0
User engagement expenses7
536.1
571.4
507.5
457.2
264.7
User acquisition expenses8
788.3
680.9
502.0
435.7
385.9
Other sales and marketing expenses
178.8
115.5
65.1
32.5
50.9
Total sales and marketing expenses
1,503.2
1,367.7
1,074.5
925.3
701.5
Combined Average MAUs (in millions)
133.9
137.9
138.3
136.5
120.5
Combined Average DAUs (in millions)
42.1
45.7
45.6
43.0
39.7
New installed users (in millions)
119.9
123.0
109.2
132.2
67.3
Average net revenues per DAU per day (RMB)
0.36
0.39
0.34
0.37
0.31
User engagement expenses per DAU per day (RMB)
0.14
0.14
0.12
0.12
0.07
User acquisition expenses per new installed user (RMB)
6.58
5.54
4.60
3.30
5.73
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;
Artificial Intelligence
ADQ Appoints Modon as Master Developer for Ras El Hekma Megaproject in Egypt
In the presence of Mohamed bin Zayed Al Nahyan and Abdel Fattah El-Sisi
The event marked the signing of several significant agreements aimed at driving the development of the new destinationABU DHABI, UAE, Oct. 4, 2024 /PRNewswire/ — In the presence of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and His Excellency Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, ADQ, an Abu Dhabi-based investment and holding company, appointed Modon Holding PSC as the master developer for the Ras El Hekma megaproject.
In addition to being master developer for the entire development spanning 170 million square metres, Modon Holding will undertake the responsibility of the developer role for the first phase of the envisaged city consisting of 50 million square metres.
The remaining 120 million square metres, which are part of the master plan presented by Modon Holding, will be developed in partnership with prominent developers from Egypt, the UAE, and the international community under the oversight of the recently established ADQ subsidiary Ras El Hekma Urban Development Project Company and Modon Holding.
This iconic project represents a major milestone for Modon Holding by significantly increasing its land under development outside the UAE. Ras El Hekma is located around 350 kilometres northwest of Cairo and envisioned as a fully functional, smart, sustainable, and inclusive urban community situated against the scenic coastline.
The project is expected to become a powerful economic engine, with cumulative investments anticipated to reach US$110 billion by 2045, an annual GDP contribution of around US$25 billion, and approximately 750,000 jobs to be created, both directly and indirectly.
Upon completion, the development will be home to two million people and feature more than 40 kilometres of green spines, set to make Ras El Hekma the greenest megaproject in the region.
As a result of Ras El Hekma’s location within a four-hour flight for over 400 million outbound tourists, the establishment of tourism infrastructure will be a priority during the first phases of the development, encompassing an international airport as well as high-speed rail connectivity. The masterplan also includes residential areas, office spaces, hospitality venues, retail, leisure, and recreation facilities.
Ras El Hekma will have an international marina and a special free zone. Additionally, Modon Holding will look to develop infrastructure to support a range of high-growth industries, including business services, financial services, light manufacturing, and technology.
His Excellency Jassem Mohamed Bu Ataba Al Zaabi, Chairman of Modon Holding, said, “Ras El Hekma is destined to become a regional crown jewel in a country already famed for its rich and diverse attractions. Modon Holding is proud to bring this 170-million-square-metre visionary megaproject to life, leveraging our expertise and innovative approach. With our partners, we are poised to transform Ras El Hekma into a dynamic economic powerhouse and a global model for urban development.”
His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Group Chief Executive Officer of ADQ, said, “As a project of unprecedented scale and impact, Ras El Hekma will be a catalyst for the development of Egypt’s economy by offering opportunities for businesses and stimulate tourism. Modon Holding brings a wealth of expertise in master planning and will pioneer state-of-the-art, innovative solutions, creating a destination that will deliver long-term value for Egypt and its people.”
Bill O’Regan, Group CEO of Modon Holding, said, “The Ras El Hekma destination is one of the Group’s most significant investment and development projects outside the UAE. The project provides an incredible development pipeline, and Modon Holding looks forward to delivering a destination that will be an exceptional experience for visitors and residents alike.”
During the ceremony, Modon Holding PSC engaged with the initial major partners to join in the development of the Ras El Hekma megaproject on Egypt’s stunning Mediterranean coast.
Ras El Hekma is set to become a leading urban and tourist hub, boasting a wide array of attractions and amenities. Modon Holding aims to harness its large-scale development expertise, collaborating with local, regional, and global partners to bring this visionary destination masterplan to life.
These collaborative efforts, combined with a focus on diverse entertainment, sports, cultural events, and top-tier community management, will position Ras El Hekma as a premier Mediterranean destination.
While the immediate focus is on tourism and hospitality, Modon’s long-term vision for the 170-square-metre site also includes business services, financial services, light manufacturing, and technology.
Modon Engages First Batch of Investors and Partners in Landmark Ceremony
On 4th October, in a momentous ceremony attended by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Egyptian President His Excellency Abdel Fattah El-Sisi, Modon proudly initiated the engagement of its first group of investors and partners.
The event marked the signing of several significant agreements aimed at driving the development of the new destination:
– A framework agreement with Orascom Construction, designating them as one of the primary contractors for the initial phase of the project.
– A memorandum of understanding with Elsewedy Electric to explore opportunities for supplying building materials and collaborating on industrial parks, manufacturing, operations, and maintenance.
– A memorandum of understanding with Abu Dhabi Airports to collaborate in airport strategic planning, design, development, and operational support.
– A memorandum of understanding with TAQA to explore cooperation opportunities in relation to the development, financing, and operation of greenfield utilities infrastructure projects, water desalination projects, electricity transmission and distribution projects and wastewater projects.
– A memorandum of understanding with Valderrama for the development and operation of golf communities.
– A memorandum of understanding with e& Egypt to facilitate the design and implementation of smart city infrastructure, including digital connectivity, fiber networks, and 5G; smart building technologies and IoT-enabled solutions for residential and commercial properties; city-wide data collection, monitoring, and analytics systems; smart utilities, encompassing automated energy management, water, and waste systems; smart transportation systems; and any other mutually agreed smart city services.
– A memorandum of understanding with Candy International aims to explore luxury real estate development opportunities, leveraging Candy’s extensive international reach.
– A memorandum of understanding with Montage International for the development and management of luxury hotels in Ras El Hekma.
– A memorandum of understanding with Accor and Ennismore to operate hotels and resorts in Ras El Hekma.
– Finally, a memorandum of understanding with Burjeel Holding to develop multi-specialty healthcare facilities, implement innovative healthcare solutions, provide medical training programmes, and collaborate on public health initiatives and community wellness programmes.
These strategic partnerships underscore Modon’s commitment to creating a world-class destination, fostering innovation, and enhancing the quality of life for Ras El Hekma’s future residents.
His Excellency Jassem Mohamed Bu Ataba Al Zaabi, said, “Ras El Hekma represents a visionary and multifaceted endeavour that promises to make a substantial contribution to the Egyptian economy. Crafting a masterplan of such scale demands specialised expertise and capabilities across diverse industries, which can only be realised through robust strategic partnerships. We look forward to working with our partners present and future in harnessing the full potential of this extraordinary location.”
Bill O’Regan, said, “Ras El Hekma is an extraordinarily ambitious and complex project that will significantly contribute to the Egyptian economy through various stages of planning, design, and construction, ultimately bringing this new destination to life. Developing and delivering a masterplan of this magnitude requires sector-specific expertise and capabilities across a wide range of industries and is achievable only through strong strategic partnerships.”
About ADQEstablished in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and transport and logistics, amongst others. As a strategic partner to the Government of Abu Dhabi, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
For more information, visit adq.ae or write to [email protected]. You can also follow ADQ on Instagram, LinkedIn and X.
About Modon HoldingModon develops vibrant communities, unique hospitality and lifestyle experiences, and world-class sports facilities. Based in Abu Dhabi, Modon Holding is a Private Joint Stock company listed on the ADX Growth Market with the shareholding of ADQ and the IHC Group being our majority shareholders. Through a diversified business portfolio in the UAE, we are engaged in strategic investment and innovation on an unrivalled scale, shaping future smart living. Our goal is to deliver long-term, sustainable value, laying the foundations for intelligent, connected living.
Ras El-Hekma Urban Development Project CompanyA wholly owned subsidiary of ADQ, an Abu Dhabi-based investment and holding company, Ras El Hikma Urban Development Project Company S.A.E. (RED) is mandated to oversee the execution of the Ras El Hekma project, a 170 million square meter visionary megacity located on Egypt’s north coast. Established in March 2024 and based in Egypt, RED holds the ownership rights of the Ras El-Hekma as well as responsibility for the implementation of the multi-phase project together with its partners, which include Modon Holding as the master developer.
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Artificial Intelligence
Electronic Access Control Systems Market Set for Significant Expansion, with Projected Growth to USD 16 Billion by 2031: Market Research Intellect
The Electronic Access Control System market is driven by increasing security concerns and advancements in technology. As businesses and institutions face growing threats, there is a rising demand for sophisticated access control solutions to protect assets and data. Technological innovations, including biometrics, IoT integration, and cloud-based systems, enhance system functionality and appeal. Additionally, the trend toward smart buildings and stringent regulatory requirements further fuels the market’s expansion, reflecting a broadening need for advanced security solutions.
LEWES, Del., Oct. 4, 2024 /PRNewswire/ — The Electronic Access Control System market is projected to grow from approximately USD 10 billion in 2024 to USD 16 billion by 2031, achieving a compound annual growth rate (CAGR) of around 7.5%. This growth is driven by rising security needs, advancements in technology, and increased adoption of smart and connected security solutions across various sectors.
Download PDF Brochure: https://www.marketresearchintellect.com/download-sample/?rid=194769
202 – Pages126 – Tables37 – Figures
Scope Of The Report
REPORT ATTRIBUTES
DETAILS
STUDY PERIOD
2020-2031
BASE YEAR
2023
FORECAST PERIOD
2024-2031
HISTORICAL PERIOD
2020-2023
UNIT
Value (USD Billion)
KEY COMPANIES PROFILED
Honeywell International Inc., Johnson Controls International plc, ASSA ABLOY Group, Allegion plc, Schlage (a brand of Allegion), Bosch Security Systems, Tyco International Ltd., and HID Global (an ASSA ABLOY Group brand).
SEGMENTS COVERED
By Type, By Application And By Geography
CUSTOMIZATION SCOPE
Free report customization (equivalent to up to 4 analyst working days) with purchase. Addition or alteration to country, regional & segment scope
Electronic Access Control System Market Overview
Market Size and Growth:The Electronic Access Control System market is experiencing robust growth, expected to expand from approximately USD 10 billion in 2024 to USD 16 billion by 2031, representing a compound annual growth rate (CAGR) of about 7.5%. This growth trajectory is driven by the increasing need for enhanced security solutions across various sectors, including commercial, residential, and industrial applications. The rising concerns over security breaches and unauthorized access are prompting organizations to invest in advanced access control technologies. Additionally, the growing adoption of smart buildings and connected infrastructure contributes to the market’s expansion, as these technologies offer more efficient and scalable security solutions. As the demand for higher security standards continues to rise, the EACS market is poised for substantial growth in the coming years.Technological Advancements:The EACS market is significantly influenced by rapid technological advancements. Innovations such as biometric authentication, including fingerprint and facial recognition, are enhancing the capabilities of access control systems, providing more secure and user-friendly solutions. The integration of Internet of Things (IoT) technology allows for remote monitoring and management of access control systems, increasing their flexibility and effectiveness. Cloud-based solutions are also gaining traction, offering scalable and cost-effective options for businesses of all sizes. These technological advancements not only improve security but also streamline system management and integration with other smart technologies. As the technology continues to evolve, the EACS market is expected to benefit from more sophisticated, efficient, and adaptable access control solutions that meet the growing demands for security and convenience.Market Drivers:The primary drivers of the EACS market include heightened security concerns and the need for compliance with regulatory standards. Organizations across various sectors are increasingly investing in advanced access control solutions to safeguard their assets, sensitive information, and personnel. The growing frequency of security breaches and unauthorized access incidents further amplifies the need for reliable and robust security systems. Additionally, the trend toward smart buildings and the integration of IoT technology are driving market growth by offering more sophisticated and interconnected security solutions. Regulatory requirements related to data protection and physical security are also influencing the adoption of EACS, as businesses seek to meet these standards while ensuring the safety and security of their operations.Regional Insights:The EACS market shows varying growth patterns across different regions. North America and Europe lead the market due to their high adoption rates of advanced security technologies and stringent regulatory requirements. In these regions, the emphasis on high-security standards and the presence of major market players contribute to significant market growth. Conversely, the Asia-Pacific region is emerging as a key growth area due to rapid urbanization, industrialization, and increasing investments in infrastructure development. Countries such as China and India are witnessing a surge in demand for electronic access control systems as they modernize their infrastructure and enhance security measures. The diverse regional dynamics reflect varying levels of market maturity and growth opportunities, influencing the overall global market landscape.Download Sample Report Now: https://www.marketresearchintellect.com/download-sample/?rid=194769Market Segmentation:The EACS market can be segmented based on type, application, and technology. Key types include biometric systems, card-based systems, and electronic locks. Biometric systems are gaining popularity for their high security and convenience, while card-based systems remain widely used due to their affordability and ease of integration. Electronic locks offer versatile security options for both residential and commercial applications. In terms of application, the market serves commercial buildings, residential complexes, government facilities, and industrial sites. Each segment has unique requirements and preferences, driving the development of specialized solutions. Technology-wise, advancements such as IoT integration, cloud-based systems, and mobile access are shaping the market, offering improved functionality and user experience. Understanding these segments helps stakeholders tailor their offerings to meet diverse market needs effectively.Challenges:Despite its growth, the EACS market faces several challenges. High initial investment costs can deter small and medium-sized enterprises (SMEs) from adopting advanced access control solutions. Integration complexities, particularly with existing security infrastructure, can also pose hurdles for implementation. Additionally, concerns about data privacy and cybersecurity risks associated with connected systems may affect market adoption. The rapid pace of technological advancements requires continuous updates and upgrades, adding to the cost and complexity of maintaining access control systems. Addressing these challenges involves developing cost-effective solutions, enhancing system compatibility, and ensuring robust cybersecurity measures. Overcoming these obstacles is crucial for market players to successfully expand their customer base and capture emerging opportunities in the evolving security landscape.Competitive Landscape:The EACS market is characterized by intense competition, with numerous players vying for market share. Major companies include Honeywell, Johnson Controls, ASSA ABLOY, and Allegion, each offering a range of innovative products and solutions. These players focus on technological advancements, strategic partnerships, and mergers and acquisitions to strengthen their market positions. Additionally, emerging players and startups are introducing novel solutions, contributing to market dynamism and innovation. Competitive strategies involve differentiating products through advanced features, improving customer service, and expanding distribution channels. As the market evolves, companies must stay ahead of technological trends and customer demands to maintain a competitive edge and drive growth in a rapidly changing environment.Future Outlook:The future outlook for the EACS market is promising, with continued growth expected as security concerns and technological advancements drive demand. Emerging trends such as the integration of artificial intelligence (AI) and machine learning are likely to enhance system capabilities, providing more proactive and intelligent security solutions. The growing emphasis on smart cities and connected infrastructure will further propel market growth, as EACS plays a crucial role in modernizing urban environments. Additionally, increasing awareness of data privacy and security will lead to greater adoption of advanced access control systems. As the market evolves, stakeholders should focus on innovation, user experience, and addressing emerging security challenges to capitalize on future opportunities and sustain long-term growth.Geographic Dominance:
The Electronic Access Control System market exhibits significant geographic dominance, with North America and Europe leading due to their advanced infrastructure and stringent regulatory standards. North America, particularly the United States, holds a substantial share of the market, driven by high security concerns, technological advancements, and a robust presence of major EACS providers. Europe follows closely, with countries like the UK, Germany, and France investing heavily in security solutions due to strict regulations and high adoption rates. Meanwhile, the Asia-Pacific region is emerging as a major growth area, fueled by rapid urbanization, industrial expansion, and increasing investments in smart infrastructure. Countries such as China and India are witnessing rising demand for advanced access control systems as they modernize and enhance their security measures. The diverse regional dynamics highlight varying levels of market maturity and growth potential across the globe.
Electronic Access Control System Market Key Players Shaping the Future
The Electronic Access Control System market is significantly influenced by key players such as Honeywell International Inc., Johnson Controls International plc, ASSA ABLOY Group, Allegion plc, Schlage (a brand of Allegion), Bosch Security Systems, Tyco International Ltd., and HID Global (an ASSA ABLOY Group brand). These companies are at the forefront of technological innovation and market development, shaping the future of access control solutions through their advanced products and strategic initiatives.
Electronic Access Control System Market Segment Analysis
The Electronic Access Control System market is segmented based on By Type, By Application and Geography, offering a comprehensive analysis of the industry.
By Type:
Biometric Systems: These systems use unique biological characteristics, such as fingerprints, facial recognition, and iris scans, to provide secure access. They offer high security and are increasingly adopted in sensitive areas.Card-Based Systems: These systems use magnetic stripe cards, smart cards, or proximity cards to control access. They are popular due to their affordability, ease of use, and integration capabilities.Electronic Locks: These include keypads, smart locks, and other electronic mechanisms that can be controlled remotely or via electronic credentials. They are versatile and used in various residential and commercial settings.By Application:
Commercial Buildings: EACS in commercial buildings includes office complexes, retail spaces, and hospitality venues. These systems focus on managing employee access, visitor control, and security integration.Residential Complexes: Access control systems for residential complexes include apartment buildings and gated communities, emphasizing security and convenience for residents.Government Facilities: High-security access control solutions are used in government buildings, military bases, and other critical infrastructure to ensure tight security and regulatory compliance.Industrial Sites: EACS for industrial sites manage access to sensitive areas, protect valuable assets, and ensure safety compliance in manufacturing and industrial environments.By Geography:
North America: This region leads the market due to high adoption rates of advanced security technologies, stringent regulations, and a strong presence of major market players.Europe: Europe follows closely, with significant market activity in countries such as the UK, Germany, and France, driven by regulatory standards and high security needs.Asia-Pacific: The Asia-Pacific region is emerging as a key growth area, with increasing urbanization, industrial expansion, and investments in smart infrastructure driving demand for EACS.Latin America: Growth in Latin America is fueled by increasing security concerns and infrastructural development, with a growing adoption of electronic access solutions.Middle East and Africa: The market in this region is expanding due to rising security needs and infrastructure projects, with increasing investments in advanced access control technologies. Automotive And Transportation:
The Electronic Access Control System market within the automotive and transportation sector is experiencing notable growth, driven by advancements in vehicle security and the need for enhanced access management. In vehicles, EACS technology includes electronic locks, biometric systems, and keyless entry solutions that improve convenience and security for drivers and passengers. These systems are increasingly integrated into both commercial and personal vehicles, offering features such as remote access control, advanced theft prevention, and personalized settings. In the transportation sector, EACS is utilized for secure access to restricted areas within transportation hubs, including airports, train stations, and cargo facilities. This enhances the management of personnel and vehicle access, contributing to overall safety and operational efficiency. As the demand for smarter and more secure transportation solutions grows, the EACS market is expected to expand, driven by ongoing innovations and the increasing adoption of connected technologies.
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Artificial Intelligence
System-on-Chip (SoC) Market worth $205.97 billion by 2029 – Exclusive Report by MarketsandMarkets™
DELRAY BEACH, Fla., Oct. 4, 2024 /PRNewswire/ — The System-on-Chip (SoC) market is projected to grow from USD 138.46 billion in 2024 and is estimated to reach USD 205.97 billion by 2029; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.3% from 2024 to 2029 according to a new report by MarketsandMarkets™. The growth of the System-on-Chip (SoC) market is driven with the increasing trend of SoC in automotive industry along with the adoption of IoT and connected devices that require SoCs to carry out real time processing. Moreover, the surging adoption of AI and machine learning technologies is likely to fuel the demand for system-on-chips.
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Browse in-depth TOC on “System-on-Chip (SoC) Market”
250 – Tables73 – Figures326 – Pages
System-on-Chip (SoC) Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 138.46 billion
Estimated Value by 2029
$ 205.97 billion
Growth Rate
Poised to grow at a CAGR of 8.3%
Market Size Available for
2020–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By Core Count, Core Architecture, Device and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Rapid technological changes challenge SoC longevity
Key Market Opportunities
Growing penetration of AI PCs and GenAI smartphones
Key Market Drivers
Rising adoption of ADAS in autonomous vehicles to fuel the growth of automotive SoCs
By core architecture, RISC-V is projected to grow at a high CAGR for system-on-chip market during the forecast period
The market for System-on-Chips (SoC) for RISC-V architecture segment is expected to grow at highest CAGR during the forecast period. The RISC-V architecture is bound to grow at a higher rate in view of the flexibility, cost, and scalability advantages it has over others, driving wide adoption across diversified applications. The open-source nature of the architecture is one of the major growth drivers because it reduces licensing costs and accelerates innovation since customizations are allowed for use cases as per various needs. This flexibility is valuable in the emerging and high-growth sectors of AI, 5G, and IoT, where a solution that is tailor-made to complex requirements needs to be provided. For instance, in May 2024, Arteris, Inc. (US) and Andes Technology Corporation (Taiwan) partnered to develop the Andes Qilai RISC-V platform. It incorporates the high-performance RISC-V processor IPs from Andes Technology Corporation (Taiwan) and the FlexNoC interconnect IP from Arteris, Inc. (US). Their joint effort shows their efforts towards advancing RISC-V based SoC designs for a wide range of applications, which include AI, 5G, Networking, Mobile, Storage, AIoT, and Space. With open-source RISC-V model, such developments further continue to accelerate innovation and drive adoption in these high-growth areas, positioning RISC-V as the choice for future technology roadmaps.
The automotive segment in System-on-Chip (SoC) market will account for the high CAGR from 2024 to 2029
The SoC market for automotive segment will grow at highest CAGR during the forecast period. The SoCs integrated in automotive applications enable enhanced performance, reduced power consumption, and compact designs, which makes them essential for numerous vehicle systems. The automotive segment will experience growth due to the increasing adoption of advanced driver assistance systems (ADAS), infotainment systems, and the rising popularity of electric vehicles. EVs rely heavily on sophisticated electronics for battery management, powertrain control, and energy efficiency optimization, all of which require advanced SoCs. For instance, in June 2024, Intel Corporation (US) launched OLEA U310 SoC chip for automotive applications. It is developed to improve the performance of electric vehicles. This chip combines hardware and software in one SoC to enable seamless operation across various EV station platforms. They are designed to manage the complex systems within EVs. It ensures optimal performance, safety, and extended range. The increasing complexity of autonomous driving systems, along with the demand for safer and more reliable vehicles fuels the adoption of SoCs in the automotive industry, driving significant growth in this segment.
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Asia Pacific is expected to register the highest CAGR during the forecast period
The system-on-chip (SoC) industry in Asia Pacific includes economies such as South Korea, Japan, China, and India and Rest of Asia Pacific. The Rest of Asia Pacific countries include Australia, Singapore, the Philippines, Taiwan, Thailand, and Indonesia. There is a presence of leading SoC manufacturers in this region including MediaTek Inc. (Taiwan), Samsung (South Korea), Infineon Technologies AG (Germany), and Renesas Electronics Corporation (Japan). The Asia-Pacific region is still the biggest revenue generator in terms of SoC market globally due to the fast-growing consumer electronics and mobile device-related sectors. Other regions considered as major manufacturing centers in the world are China, South Korea, Japan, and India for making the latest smartphones, tablets, and other consumer electronic products that require state-of-the-art SoCs for delivering high performance, energy efficiency, and integrated functionalities. A highly and technologically advanced population in the region has always formed the basis for a sustained demand in terms of innovative and feature-rich devices, thereby showing sustainable growth in the SoC market. Automotive and industrial automation are another major sector driving the SoC market in Asia Pacific. This region contains some of the largest automobile manufacturers in the world, such as Hyundai Motor Company (South Korea), Toyota (Japan), and Tata Motors Limited (India). These car manufacturers are now putting SoCs into their automobiles so that they are equipped with ADAS capabilities, infotainment features, and autonomous driving technologies.
Key Players
Key companies operating in the System-on-Chip (SoC) companies are Qualcomm Technologies, Inc. (US), MediaTek Inc. (Taiwan), Samsung (South Korea), Apple Inc. (US), Broadcom (US), Intel Corporation (US), Advanced Micro Devices, Inc. (US), NVIDIA Corporation (US), HiSilicon (China), Microchip Technology Inc. (US), among others.
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