Artificial Intelligence
Qutoutiao Inc. Reports First Quarter 2021 Unaudited Financial Results
SHANGHAI, China, June 01, 2021 (GLOBE NEWSWIRE) — Qutoutiao Inc. (“Qutoutiao”, the “Company” or “We”) (NASDAQ: QTT), a leading operator of mobile content platforms in China, today announced its unaudited financial results in the first quarter ended March 31, 2021.
First Quarter 2021 Highlights
- Net revenues decreased 8.6% year-over-year to RMB1,291.0 million (US$197.0 million), while slightly decreased by 0.9% quarter-over-quarter from RMB1,302.4 million in the previous quarter, and was at the high end of the Company’s guided range.
- Net loss was RMB149.0 million (US$22.7 million), compared to net loss of RMB531.8 million in the first quarter of 2020 and net loss of RMB81.8 million in the fourth quarter of 2020. Net loss margin was 11.5%, compared to 37.7% in the first quarter of 2020 and 6.3% in the fourth quarter of 2020.
- Non-GAAP net loss1 was RMB55.4 million (US$8.5 million), compared to non-GAAP net loss of RMB388.1 million in the first quarter of 2020 and non-GAAP net profit of RMB50.8 million in the fourth quarter of 2020. Non-GAAP net loss margin was 4.3%, compared to non-GAAP net loss margin of 27.5% in the first quarter of 2020 and non-GAAP profit margin of 3.9% in the fourth quarter of 2020.
- Combined average MAUs2 were 133.3 million, representing a decrease of 3.6% from 138.3 million in the first quarter of 2020; as well as an increase of 6.9% from 124.7 million in the previous quarter.
- Combined average DAUs3 were 31.7 million, representing a decrease of 30.6% from 45.6 million in the first quarter of 2020; as well as a slight decrease of 1.9% from 32.3 million in the previous quarter.
- Average daily time spent per DAU was 47.1 minutes, compared to 62.4 minutes in the first quarter of 2020 and 50.3 minutes in the previous quarter.
Mr. Eric Siliang Tan, Chairman and Chief Executive Officer of Qutoutiao, commented, “While we continue to maintain a balance between growth and profitability, we have stepped up our investments in driving Midu Novels forward following our latest financing round and have been pleased with the pace of progress so far this year. We expect the overall business to be stable with improving underlying profitability going forward.”
First Quarter 2021 Financial Results
Net revenues in the first quarter of 2021 were RMB1,291.0 million (US$197.0 million), a decrease of 8.6% from RMB1,411.8 million in the first quarter of 2020, and a decrease of 0.9% from RMB1,302.4 million in the previous quarter.
Advertising and marketing revenues were RMB1,228.0 million (US$187.4 million) in the first quarter of 2021, a decrease of 10.0% from RMB1,364.0 million in the first quarter of 2020, primarily due to the Company’s strategy to prioritise optimizing operational efficiency and financial health. The Company has paid closer attention to the quality and the profile of its user base, rather than the absolute size or growth of it. As a result, the Company has narrowed its net losses and reduced its operating cash outflow despite the smaller user base compared with the same period in the prior year.
Other revenues were RMB62.9 million (US$9.6 million) in the first quarter of 2021, an increase of 31.7% from RMB47.8 million in the first quarter of 2020. The increase was primarily due to the increase in revenues from live-streaming and other new business initiatives.
Cost of revenues were RMB381.3million (US$58.2 million) in the first quarter of 2021, a decrease of 17.2% from RMB460.8 million in the first quarter of 2020, primarily attributable to the decreases in IT infrastructure costs, integrated marketing service costs which are in line with the decrease in integrated marketing service revenues; media content sharing costs; the decrease was partially offset by an increase in content and media procurement costs due to the Company’s ongoing investment in improving content quality.
Gross profit was RMB909.7 million (US$138.8 million) in the first quarter of 2021, a decrease of 4.3% from RMB951.0 million in the first quarter of 2020. Gross margin was 70.5%, compared to 67.4% in the first quarter of 2020. The increase of gross margin was mainly due to the decrease in integrated marketing services with lower gross profit margin, which resulted in higher mixed gross profit margin; the increase was partially offset by the increase in content procurement costs.
Research and development expenses were RMB186.7 million (US$28.5 million) in the first quarter of 2021, a decrease of 33.5% from RMB280.9 million in the first quarter of 2020 primarily due to a reduction in overall research and development headcount.
Sales and marketing expenses were RMB800.7 million (US$122.2 million) in the first quarter of 2021, a decrease of 25.5% from RMB1,074.5 million in the first quarter of 2020. Sales and marketing expenses as a percentage of net revenues were 62.0% in the first quarter of 2021, compared to 76.1% in the first quarter of 2020 and 52.2% in the fourth quarter of 2020.
User engagement expenses were RMB179.1 million (US$27.3 million) in the first quarter of 2021, representing a decrease of 64.7% year-over-year and an increase of 9.7% quarter-over-quarter. User engagement expenses per DAU per day were RMB0.06 in the first quarter of 2021, compared to RMB0.12 in the first quarter of 2020 and RMB0.05 in the fourth quarter of 2020. The decrease of user engagement expenses was primarily due to the Company’s ongoing efforts in optimizing user engagement expenses for its loyalty program, as well as the enhanced content algorithm facilitated by the Company’s AI platform that aims to match the content much more precisely with users’ personalized needs.
User acquisition expenses were RMB588.7 million (US$89.9 million) in the first quarter of 2021, an increase of 17.3% year-over-year and an increase of 48.3% quarter-over-quarter. User acquisition expenses consist of the costs of both word-of-mouth referrals and third-party marketing. The year-over-year increase was primarily the result of growing investment in Midu Novel and the development of new applications. User acquisition expenses per new installed user4 in the first quarter of 2021 were RMB5.78, compared to RMB7.89 in the fourth quarter of 2020 and RMB4.60 in the first quarter of 2020.
Other sales and marketing expenses were RMB32.9 million (US$5.0 million) in the first quarter of 2021, decreased 49.5% year-over-year from RMB65.1 million in the first quarter of 2020.
General and administrative expenses were RMB101.6 million (US$15.5 million) in the first quarter of 2021, a decrease of 5.5% from RMB107.5 million in the first quarter of 2020, mainly due to the deduction in overall general and administrative headcount and consequentially the decrease in compensation expenses, including share-based compensations; the decrease was partially offset by the increase in bad-debt provision for account receivables as we adopted ASC-326, Measurement of Credit Losses on Financial Instruments, effective January 1, 2020.
Loss from operations was RMB147.4 million (US$ 22.5 million) in the first quarter of 2021, compared to RMB504.7 million in the first quarter of 2020. Operating loss margin was 11.4%, compared to 35.8% in the first quarter of 2020.
Non-GAAP loss from operations was RMB53.7 million (US$8.2 million) in the first quarter of 2021, compared to a non-GAAP loss from operations of RMB361.0 million in the first quarter of 2020. Non-GAAP operating loss margin was 4.2%, compared to non-GAAP operating loss margin of 25.6% in the first quarter of 2020.
Net loss was RMB149.0 million (US$22.7 million), compared to net loss of RMB531.8 million in the first quarter of 2020. Net loss margin was 11.5%, compared to 37.7% in the first quarter of 2020.
Non-GAAP net loss was RMB55.4 million (US$8.5 million), compared to non-GAAP net loss of RMB388.1 million in the first quarter of 2020. Non-GAAP net loss margin was 4.3%, compared to a Non-GAAP loss margin of 27.5% in the first quarter of 2020.
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB175.0 million (US$26.7 million) in the first quarter of 2021, compared to RMB543.5 million in the first quarter of 2020.
Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB81.3 million (US$12.4 million) in the first quarter of 2021, compared to a Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB399.7 million in the first quarter of 2020.
Basic and diluted net loss per American Depositary Share (“ADS”) was RMB0.58 (US$0.09) in the first quarter of 2021. Non-GAAP basic and diluted net loss per ADS was RMB0.27 (US$0.04) in the first quarter of 2021. Each four ADSs represent one Class A ordinary share of the Company.
Balance Sheet
As of March 31, 2021, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB1,105.8 million (US$168.8 million), compared to RMB985.8 million as of December 31, 2020. The increase in cash, cash equivalents, restricted cash and short-term investments was primarily due to the improvement in working capital management. Cash flow generated from operating activities during the first quarter of 2021was RMB156.0 million.
While the Company continues to execute business plans to improve their liquidity position, the Convertible Loan which the Company issued with principal amounting to US$171.1 million (RMB1,192.0 million) will mature within one year from the first quarter 2021 earnings announcement date. Given the significance of the loan, there is uncertainty regarding the Company’s ability to repay the Convertible Loan upon maturity, which raises substantial doubt about the Company’s ability to continue as a going concern. The first quarter 2021 unaudited financial information does not include any adjustment that is reflective of this uncertainty.
Business Outlook
For the second quarter of 2021, the Company expects group net revenues to be between RMB1,150 to RMB1,200 million.
Conference Call
Qutoutiao’s management will host an earnings conference call at 8:00 A.M. U.S. Eastern Time on Tuesday, June 1, 2021 (8:00 P.M. Beijing/Hong Kong time on Tuesday, June 1, 2021).
Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.
Preregistration Information
Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/1275232 at least 15 minutes prior to the scheduled call start time.
Please dial-in at least 10 minutes before the scheduled start time of the earnings call and enter the Direct Event Passcode and Registrant ID as instructed to connect to the call.
A replay of the conference call will be accessible approximately two hours after the conclusion of the call until 09:59 A.M. U.S Eastern Time on June 9, 2021, by dialing the following telephone numbers:
United States: | +1-646-254-3697 |
International: | +61-2-8199-0299 |
Hong Kong: | +852-3051-2780 |
China: | 400-632-2162 |
Replay Access Code: | 1275232 |
About Qutoutiao Inc.
Qutoutiao Inc. operates innovative and fast-growing mobile content platforms in China with a mission to bring fun and value to its users. The eponymous flagship mobile application, Qutoutiao, meaning “fun headlines” in Chinese, applies artificial intelligence-based algorithms to deliver customized feeds of articles and short videos to users based on their unique profiles, interests and behaviors. Qutoutiao has attracted a large group of loyal users, many of whom are from lower-tier cities in China. They enjoy Qutoutiao’s fun and entertainment-oriented content as well as its social-based user loyalty program. Launched in May 2018, Midu Novels is a pioneer in offering free literature supported by advertising and has grown rapidly to become a leading player in the online literature industry. The Company will continue to bring more exciting products to users through innovation, and strive towards creating a leading global online content ecosystem.
For more information, please visit: https://ir.qutoutiao.net.
Use of Non-GAAP Financial Measures
We use non-GAAP profit or loss from operations, non-GAAP operating profit or loss margin, non-GAAP net profit loss, non-GAAP net profit or loss margin, non-GAAP net profit or loss attributable to Qutoutiao Inc.’s ordinary shareholders and non-GAAP basic and diluted net profit or loss per ADS, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Each of these non-GAAP financial measures represents the corresponding GAAP financial measure before share-based compensation expenses. We believe that such non-GAAP financial measures help identify underlying trends in our business that could otherwise be distorted by the effect of such share-based compensation expenses that we include in cost of revenues, total operating expenses and net loss. We believe that all such non-GAAP financial measures also provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other measure of performance prepared in accordance with U.S. GAAP or as an indicator of our operating performance. We mitigate these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating our performance. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.5518 to US$1.00, the rate in effect as of March 31, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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: +86-21-5889-0398
E-mail: [email protected]
QUTOUTIAO INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in RMB, or otherwise noted)
As of December 31, | As of March 31, | |||
2020 | 2021 | |||
RMB | RMB | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | 494,474,891 | 730,065,142 | ||
Restricted cash | 100,315,940 | 101,492,017 | ||
Short-term investments | 391,033,374 | 274,245,408 | ||
Accounts receivable, net | 737,789,173 | 931,202,324 | ||
Amount due from related parties | 383,594,360 | 288,332,000 | ||
Prepayments and other current assets | 365,108,503 | 319,252,432 | ||
Total current assets | 2,472,316,241 | 2,644,589,323 | ||
Non-current assets: | ||||
Accounts receivables, non-current | 54,638,516 | 28,431,000 | ||
Long-term Investments | 82,888,709 | 85,811,509 | ||
Property and equipment, net | 17,212,799 | 15,011,504 | ||
Intangible assets | 83,122,972 | 208,456,924 | ||
Goodwill | 7,268,330 | 7,268,330 | ||
Right-of-use assets, net | 50,318,882 | 35,002,343 | ||
Other non-current assets | 148,091,140 | 8,859,589 | ||
Total non-current assets | 443,541,348 | 388,841,199 | ||
Total assets | 2,915,857,589 | 3,033,430,522 | ||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | ||||
Current liabilities: | ||||
Short-term borrowings | 70,000,000 | 50,000,000 | ||
Accounts payable | 448,980,738 | 461,174,606 | ||
Amount due to related parties | 22,476,683 | 12,104,820 | ||
Registered users’ loyalty payable | 72,626,546 | 66,156,768 | ||
Advance from customers and deferred revenue | 140,776,350 | 129,638,961 | ||
Salary and welfare payable | 149,703,938 | 104,970,877 | ||
Tax payable | 97,143,585 | 74,416,325 | ||
Lease liabilities, current | 20,760,421 | 16,680,811 | ||
Accrued liabilities related to users’ loyalty programs | 100,087,815 | 98,913,472 | ||
Accrued liabilities and other current liabilities | 763,434,272 | 1,039,846,862 | ||
Total current liabilities | 1,885,990,348 | 2,053,903,502 | ||
Lease liabilities, non-current | 23,755,721 | 18,536,887 | ||
Convertible loan | 1,174,867,883 | 1,192,007,318 | ||
Deferred tax liabilities | 18,825,416 | 18,224,606 | ||
Other non-current liabilities | 4,255,931 | 3,659,294 | ||
Non-current liabilities | 1,221,704,951 | 1,232,428,105 | ||
Total liabilities | 3,107,695,299 | 3,286,331,607 | ||
Total redeemable non-controlling interests | 1,093,526,058 | 1,126,942,304 | ||
Shareholders’ deficit | ||||
Ordinary shares | 46,817 | 47,609 | ||
Treasury stock | (142,228,779 | ) | (142,228,779 | ) |
Additional paid-in capital | 4,784,314,735 | 4,877,982,827 | ||
Accumulated other comprehensive income | 84,319,590 | 71,331,666 | ||
Accumulated deficit | (6,007,226,873 | ) | (6,182,217,275 | ) |
Total Qutoutiao Inc. shareholders’ deficit | (1,280,774,510 | ) | (1,375,083,952 | ) |
Non-controlling interests | (4,589,258 | ) | (4,759,437 | ) |
Total deficit | (1,285,363,768 | ) | (1,379,843,389 | ) |
Total liabilities, redeemable non-controlling interests and shareholders’ deficit | 2,915,857,589 | 3,033,430,522 |
QUTOUTIAO INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in RMB, except ADS data, or otherwise noted)
For the three months ended | |||||||
March 31 | December 31 | March 31 | |||||
2020 | 2020 | 2021 | |||||
RMB | RMB | RMB | |||||
Advertising and marketing revenues | 1,363,999,871 | 1,241,937,710 | 1,228,033,176 | ||||
Other revenues | 47,796,796 | 60,453,505 | 62,946,476 | ||||
Net revenues | 1,411,796,667 | 1,302,391,215 | 1,290,979,652 | ||||
Cost of revenues | (460,755,006 | ) | (441,690,570 | ) | (381,275,238 | ) | |
Gross profit | 951,041,661 | 860,700,645 | 909,704,414 | ||||
Operating expenses: | |||||||
Research and development expenses | (280,863,263 | ) | (199,688,448 | ) | (186,683,566 | ) | |
Sales and marketing expenses | (1,074,527,955 | ) | (680,260,528 | ) | (800,693,513 | ) | |
General and administrative expenses | (107,495,935 | ) | (94,388,918 | ) | (101,610,889 | ) | |
Total operating expenses | (1,462,887,153 | ) | (974,337,894 | ) | (1,088,987,968 | ) | |
Other operating income | 7,117,280 | 23,545,402 | 31,929,244 | ||||
Loss from Operations | (504,728,212 | ) | (90,091,847 | ) | (147,354,310 | ) | |
Investment income/ (expenses), net | (16,530,832 | ) | 19,990,057 | 2,665,996 | |||
Interest expense, net | (3,412,695 | ) | (9,452,396 | ) | (7,804,047 | ) | |
Foreign exchange related loss, net | (2,526,636 | ) | (1,570,785 | ) | (2,813,369 | ) | |
Other income/(expense), net | (3,519,931 | ) | (1,032,721 | ) | 6,047,582 | ||
Non-operating income (loss) | (25,990,094 | ) | 7,934,155 | (1,903,838 | ) | ||
Loss before provision for income taxes | (530,718,306 | ) | (82,157,692 | ) | (149,258,148 | ) | |
Income tax benefits/ (expense), net | (1,101,528 | ) | 349,080 | 224,346 | |||
Net loss | (531,819,834 | ) | (81,808,612 | ) | (149,033,802 | ) | |
Net loss attributable to non-controlling interests | 206,973 | 250,212 | 170,179 | ||||
Net loss attributable to Qutoutiao Inc. | (531,612,861 | ) | (81,558,400 | ) | (148,863,623 | ) | |
Accretion to convertible redeemable preferred shares redemption value | (11,865,025 | ) | (11,942,181 | ) | (26,126,779 | ) | |
Gains on repurchase of preferred shares | – | 14,841,680 | – | ||||
Deemed dividend to preferred shareholders | – | – | – | ||||
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (543,477,886 | ) | (78,658,901 | ) | (174,990,402 | ) | |
Net loss | (531,819,834 | ) | (81,808,612 | ) | (149,033,802 | ) | |
Other comprehensive loss/(income): | |||||||
Foreign currency translation adjustment, net of nil tax | (16,231,212 | ) | 67,967,476 | (12,987,924 | ) | ||
Total comprehensive loss | (548,051,046 | ) | (13,841,136 | ) | (162,021,726 | ) | |
Comprehensive loss attributable to non-controlling interests | 206,973 | 250,212 | 170,179 | ||||
Comprehensive loss attributable to Qutoutiao Inc. | (547,844,073 | ) | (13,590,924 | ) | (161,851,547 | ) | |
Net loss per ADS (1 Class A ordinary share equals 4 ADSs): | |||||||
— Basic and diluted | (1.92 | ) | (0.26 | ) | (0.58 | ) | |
Weighted average number of ADS used in computing basic and diluted earnings per ADS: | |||||||
— Basic | 283,632,888 | 297,045,912 | 299,548,372 | ||||
— Diluted | 283,632,888 | 297,045,912 | 299,548,372 |
QUTOUTIAO INC.
Reconciliation of GAAP And Non-GAAP Results
(All amounts in RMB, except ADS data, or otherwise noted)
For the three months ended | |||||||
March 31 | December 31 | March 31 | |||||
2020 | 2020 | 2021 | |||||
RMB | RMB | ||||||
Loss from Operations | (504,728,212 | ) | (90,091,847 | ) | (147,354,310 | ) | |
Add: Share-based compensation expenses | |||||||
Cost of revenues | 3,484,267 | 1,982,055 | 995,965 | ||||
General and administrative | 52,481,244 | 44,713,522 | 41,086,463 | ||||
Sales and marketing | 21,687,394 | 39,252,233 | 2,310,612 | ||||
Research and development | 66,097,344 | 46,669,180 | 49,275,052 | ||||
Non-GAAP Profit / (Loss) from Operations | (360,977,963 | ) | 42,525,143 | (53,686,218 | ) | ||
Net loss | (531,819,834 | ) | (81,808,612 | ) | (149,033,802 | ) | |
Add: Share-based compensation expenses | |||||||
Cost of revenues | 3,484,267 | 1,982,055 | 995,965 | ||||
General and administrative | 52,481,244 | 44,713,522 | 41,086,463 | ||||
Sales and marketing | 21,687,394 | 39,252,233 | 2,310,612 | ||||
Research and development | 66,097,344 | 46,669,180 | 49,275,052 | ||||
Non-GAAP net profit / (loss) | (388,069,585 | ) | 50,808,378 | (55,365,710 | ) | ||
Net loss attributable to Qutoutiao Inc. | (531,612,861 | ) | (81,558,400 | ) | (148,863,623 | ) | |
Add: Share-based compensation expenses | |||||||
Cost of revenues | 3,484,267 | 1,982,055 | 995,965 | ||||
General and administrative | 52,481,244 | 44,713,522 | 41,086,463 | ||||
Sales and marketing | 21,687,394 | 39,252,233 | 2,310,612 | ||||
Research and development | 66,097,344 | 46,669,180 | 49,275,052 | ||||
Non-GAAP net profit / (loss) attributable to Qutoutiao Inc. | (387,862,612 | ) | 51,058,590 | (55,195,531 | ) | ||
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders | (543,477,886 | ) | (78,658,901 | ) | (174,990,402 | ) | |
Add: Share-based compensation expenses | |||||||
Cost of revenues | 3,484,267 | 1,982,055 | 995,965 | ||||
General and administrative | 52,481,244 | 44,713,522 | 41,086,463 | ||||
Sales and marketing | 21,687,394 | 39,252,233 | 2,310,612 | ||||
Research and development | 66,097,344 | 46,669,180 | 49,275,052 | ||||
Non-GAAP Net profit / (loss) attributable to Qutoutiao Inc.’s ordinary shareholders | (399,727,637 | ) | 53,958,089 | (81,322,310 | ) | ||
Non-GAAP net profit / (loss) per ADS (1 Class A ordinary share equals 4 ADSs): | |||||||
— Basic and diluted | (1.41 | ) | 0.18 | (0.27 | ) | ||
Weighted average number of ADS used in computing basic and diluted earnings per ADS | |||||||
— Basic | 283,632,888 | 297,045,912 | 299,548,372 | ||||
— Diluted | 283,632,888 | 300,659,508 | 299,548,372 |
QUTOUTIAO INC.
Supplementary Operating Information
(RMB in millions, or otherwise noted)
For the three months ended | |||||
March 31 | June 30 | September 30 | December 31 | March 31 | |
2020 | 2020 | 2020 | 2020 | 2021 | |
Net revenues | 1,411.8 | 1,441.0 | 1,130.0 | 1,302.4 | 1,291.0 |
User engagement expenses5 | 507.5 | 457.2 | 264.7 | 163.2 | 179.1 |
User acquisition expenses6 | 502.0 | 435.7 | 385.9 | 397.1 | 588.7 |
Other sales and marketing expenses | 65.1 | 32.5 | 50.9 | 119.9 | 32.9 |
Total sales and marketing expenses | 1,074.5 | 925.3 | 701.5 | 680.3 | 800.7 |
Combined Average MAUs (in millions) | 138.3 | 136.5 | 120.5 | 124.7 | 133.3 |
Combined Average DAUs (in millions) | 45.6 | 43.0 | 39.7 | 32.3 | 31.7 |
New installed users (in millions) | 109.2 | 132.2 | 67.3 | 50.3 | 101.8 |
Average net revenues per DAU per day (RMB) | 0.34 | 0.37 | 0.31 | 0.44 | 0.45 |
User engagement expenses per DAU per day (RMB) | 0.12 | 0.12 | 0.07 | 0.05 | 0.06 |
User acquisition expenses per new installed user (RMB) | 4.60 | 3.30 | 5.73 | 7.89 | 5.78 |
___________________________
1 For more information on the non-GAAP financial measures, see the section entitled “Use of Non-GAAP Financial Measures” below and the table captioned “Reconciliation of GAAP And Non-GAAP Results” set forth at the end of this press release.
2 “MAUs” refers to the number of unique mobile devices that accessed our relevant mobile application in a given month. “Combined average MAUs” for a particular period is the average of the MAUs for all of our mobile applications in each month during that period;
3 “DAUs” refers to the number of unique mobile devices that accessed our relevant mobile application on a given day. “Combined average DAUs” for a particular period is the average of the DAUs for all of our mobile applications on each day during that period;
4 “New installed user” refers to the aggregate number of unique mobile devices that have downloaded and launched our relevant mobile applications at least once.
5 We offer loyalty program for registered users of our mobile applications to enhance user engagement and loyalty and incentivise word-of-mouth referrals. “User engagement expenses” refer to the cost of loyalty points associated with taking specific actions, such as viewing and sharing of content, that encourage engagement and retention on our mobile applications. Such expenses are recognized as part of sales and marketing expenses in the consolidated statements of operations. “User engagement expenses per average DAUs per day” refer to such expenses incurred on an average DAU per day during a particular period.
6 “User acquisition expenses” refer to the sum of the cost of loyalty points associated with referring new users to register on our mobile applications and the cost of third-party advertising and marketing of our mobile applications. Such expenses are recognized as part of sales and marketing expenses in the consolidated statements of operations. “User acquisition expenses per new installed user” refer to the average cost of acquiring a new installed user from both word-of-mouth referrals and third-party channels.
Artificial Intelligence
First Comprehensive Report on Public Web Data Released by Bright Data
Reveals necessity in every industry
NEW YORK, April 23, 2024 /PRNewswire/ — Released today, The State of Public Web Data Report 2024, details a comprehensive analysis on how organizations leverage public web data to drive innovation, enhance customer experience, and develop AI models.
Bright Data commissioned an independent third-party to carry out the first survey of this kind which details the emergence of public web data as the most valued data type. Nearly every organization surveyed uses and benefits from public web data through quicker decision-making, boosting revenue, and meeting customer needs.
The need for public web data in AI is clear in all industries, with more than half of respondents using public web data to build AI models for customer service or to meet internal needs such as fraud detection and risk assessment.
Although necessary to build AI machines, 72% of respondents are worried that public web data will no longer be accessible in the next 5 years. The lack of a legal framework to protect this data emerged as a top concern.
Other key insights from the report:
89% of respondents recognize public web data is crucial or very important to the global economy.82% of respondents say public web data is critical to the future of their organization.79% of respondents agree that large organizations and or big tech hide too much of their public web data.88% of respondents believe public web data is critical for the development of AI models.”Our findings reveal a clear consensus among industry leaders: leveraging public web data is key to unlocking growth and fostering innovation,” said Or Lenchner, CEO of Bright Data. “Public web data is not a ‘like to have,’ it’s a ‘must have’ to conduct business and maintain a competitive market. We understand from our own experience with 20,000 customers that once a business realizes the potential of public web data they will look to discover new ways to leverage this tool to lead against the competition.”
About Bright Data: Bright Data is the #1 web data platform. Fortune 500 companies, academic institutions, non-profits, and small businesses rely on Bright Data’s solutions to collect public web data in the most efficient, reliable, and flexible way to make faster, more informed business-critical decisions.
Contacts:[email protected]
Logo – https://mma.prnewswire.com/media/2276620/Bright_Data_logo__1044x234_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/first-comprehensive-report-on-public-web-data-released-by-bright-data-302124673.html
Artificial Intelligence
OSIA becomes an official International Telecoms Union (ITU) standard
ITU Standardization Sector (ITU-T) Recommendation X.1281 – APIs for interoperability of identity management systems
BRUSSELS, April 23, 2024 /PRNewswire/ — The Secure Identity Alliance (SIA) announced today that its OSIA specification, is recognized as international standard by the International Telecommunication Union’s Telecommunication Standardization Sector (ITU-T). This milestone establishes OSIA as official ITU standard (ITU-T Recommendation) for the global infrastructure of information and communication technologies (ICT).
The specification that is now an ITU-T Recommendation is: ITU-T X.1281 – APIs for interoperability of identity management systems.
ITU-T is the standardization arm of ITU, the United Nations specialized agency for ICT. The Secure Identity Alliance specifications were approved as official ITU-T Recommendations by ITU members including 193 countries and the world’s front-running ICT companies on 1st March 2024. The new ITU-T Recommendation is under the responsibility of ITU’s standardization expert group for security, ITU-T Study Group 17.
“We are very proud that the OSIA specification is recognized as an international standard by ITU-T. This milestone demonstrates the maturity of OSIA and its potential to foster interoperability and promote fairness in the identity management systems market,” said Debora Comparin, Chair of the OSIA Initiative.
Prof. Heung Youl Youm, Chairman of ITU-T Study Group 17, said, “The recognition of the OSIA specification as an official ITU-T Recommendation underscores its critical contribution to the advancement of global ICT infrastructure. We are thrilled about the ongoing collaboration between ITU-T SG17 and the SIA, aimed at developing standards for secure identity management.”
“As Editor of the OSIA standard in the ITU-T Study Group 17 Q10, I am pleased to have contributed to this successful recommendation by the ITU,” said Abbie Barbir, Rapporteur for ITU-T’s working group on ‘Identity management and telebiometrics architecture and mechanisms’ (Q10/17). “The collaboration with the SIA continues on OSIA and other structuring initiatives and standards development.”
Engr Abisoye Coker-Odusote, CEO, National Identity Management Commission (NIMC), Nigeria & Chair of the OSIA Advisory Committee, said, “As the Chair of the OSIA Advisory Committee, comprised exclusively of government representatives, we take great pride in our five years of collaboration guiding the working group in the development of the OSIA specification. OSIA establishes equal marketplace conditions, fosters collaboration, and ensures product compatibility post-mergers and acquisitions. The OSIA standardized interfaces drive innovation, enabling new local market models and reducing fraud within multiple ID systems. Additionally, OSIA addresses integrator/vendor lock-in, allowing governments to maintain control over their identity systems and pursue national development agendas seamlessly.”
“The Secure Identity Alliance has always supported standards and its members have contributed to thousands of standards globally, which are now used in the ICT market. Standards are key to unlock the full power of Identity to enable people, economy and society to thrive,” concluded Didier Trutt, Chairman of the SIA.
X.1281 is at publication stage and can be accessed here: https://www.itu.int/ITU-T/workprog/wp_item.aspx?isn=18778
OSIA v6.1.0. twin specification can be accessed here: https://osia.readthedocs.io/en/v6.1.0/index.html
OSIA qualification programme can be accessed here: https://globalplatform.org/osia-qualification-program/
For more information on the Secure Identity Alliance and the OSIA Initiative, visit http://www.secureidentityalliance.org and www.osia.io
For more information on ITU-T SG 17 visit https://www.itu.int/en/ITU-T/studygroups/2022-2024/17/Pages/default.aspx.
About the Secure Identity Alliance:
Secure Identity Alliance (SIA) is a global non-profit association that serves as the voice for public and private actors and organizations active in the secure identity ecosystem and adjacent industries. SIA’s mission is to unlock the full power of identity so that people, economy, and society thrive. The association supports the development of the activities of its members across four broad pillars: Identity for Good, Outreach, Open Standards Development and Industry Services and Solutions. www.secureidentityalliance.org
About OSIA:
A digital public good, OSIA is an open standard set of interfaces (APIs) that enables seamless connectivity between building blocks of the identity management ecosystem – independent of technology, solution architecture or vendor. More information at www.osia.io
Follow the Secure Identity Alliance at on X @secureidentity1 and LinkedIn at https://www.linkedin.com/company/secure-identity-alliance/
About ITU-T SG 17
The ITU Telecommunication Standardization Sector (ITU-T) is one of the three Sectors (branches) of the International Telecommunication Union (ITU). It is responsible for coordinating standards for telecommunications and Information Communication Technology such as X.509 for cybersecurity, Y.3172 and Y.3173 for machine learning, and H.264/MPEG-4 AVC for video compression, between its Member States, Private Sector Members, and Academia Members.
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View original content:https://www.prnewswire.co.uk/news-releases/osia-becomes-an-official-international-telecoms-union-itu-standard-302124668.html
Artificial Intelligence
SciBase will present at the Redeye Medtech Event on April 24th
STOCKHOLM, April 23, 2024 /PRNewswire/ — SciBase Holding AB (“SciBase”) (STO: SCIB), a leading developer of augmented intelligence-based solutions for skin disorders will participate at the Redeye Medtech event.
On April 24 at CET 9.50 CEO Pia Renaudin will present the latest developments in SciBase at Redeye. The presentation is live broadcasted and can be followed at https://www.redeye.se/events/974326/redeye-theme-medtech-2 where the replay and the presentations will be available afterwards.
For additional information, please contact:Pia Renaudin, VD, tel. +46732069802, e-mail: [email protected]
Certified Advisor (CA):Vator SecuritiesTel: +46 8 580 065 99Email: [email protected]
About SciBase:
SciBase is a global medical technology company, specializing in early detection and prevention in dermatology. SciBase develops and commercializes Nevisense, a unique point-of-care platform that combines AI (artificial intelligence) and advanced EIS technology to elevate diagnostic accuracy, ensuring proactive skin health management.
Our commitment is to minimize patient suffering, allowing clinicians to improve and save lives through timely detection and intervention and reduce healthcare costs.
Built on more than 20 years of research at Karolinska Institute in Stockholm, Sweden, SciBase is a leader in dermatological advancements.
The company has been on the Nasdaq First North Growth Market exchange since June 2, 2015. Learn more at www.scibase.com. All press releases and financial reports can be found here: http://investors.scibase.se/en/pressreleases
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/scibase/r/scibase-will-present-at-the-redeye-medtech-event-on-april-24-th-,c3966053
The following files are available for download:
https://mb.cision.com/Main/12371/3966053/2751965.pdf
Redeye presentation
View original content:https://www.prnewswire.co.uk/news-releases/scibase-will-present-at-the-redeye-medtech-event-on-april-24th-302124656.html
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