Artificial Intelligence

Qutoutiao Inc. Reports Third Quarter 2021 Unaudited Financial Results

Published

2 years ago

December 21, 2021

SHANGHAI, China, Dec. 21, 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 third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

Net revenues was RMB965.5 million (US$149.8 million), representing a decrease of 14.6% from RMB1,130 million in the third quarter of 2020, and a decrease of 19.7% quarter-over-quarter from RMB1,202.0 million in the second quarter of 2021.
Net loss was RMB583.6 million (US$90.6 million), compared to net loss of RMB269.4 million in the third quarter of 2020 and net loss of RMB209.5 million in the second quarter of 2021. Net loss margin was 60.4%, compared to 23.8% in the third quarter of 2020 and 17.4% in the second quarter of 2021.
Non-GAAP net loss¹ was RMB525.1 million (US$81.5 million), compared to non-GAAP net loss of RMB131.4 million in the third quarter of 2020 and non-GAAP net loss of RMB186.0 million in the second quarter of 2021. Non-GAAP net loss margin was 54.4%, compared to 11.6% in the third quarter of 2020 and 15.5% in the second quarter of 2021.
Combined average MAUs² were 118.5 million, representing a decrease of 1.7% from 120.5 million in the third quarter of 2020; and a decrease of 10.4% from 132.3 million in the second quarter of 2021.
Combined average DAUs³ were 26.5 million, representing a decrease of 33.2% from 39.7 million in the third quarter of 2020; and a decrease of 8.9% from 29.1 million in the previous quarter.
Average daily time spent per DAU was 51.9 minutes, compared to 55.3 minutes in the third quarter of 2020 and 47.3 minutes in the second quarter of 2021.

“We have observed challenging macro environment and industry headwinds in the third quarter of 2021,” Mr. Eric Siliang Tan, Chairman and Chief Executive Officer of Qutoutiao, commented, “We will focus more on long term sustainability of our business in the coming quarters and years, away from the previous emphasis on growth in the earlier development stages of the company.”

Third Quarter 2021 Financial Results

Net revenues in the third quarter of 2021 were RMB965.5 million (US$149.8 million), a decrease of 14.6% from RMB1,130.0 million in the third quarter of 2020, and a decrease of 19.7% from RMB1,202.0 million in the second quarter of 2021.

Advertising and marketing revenues were RMB899.2 million (US$139.6 million) in the third quarter of 2021, a decrease of 15.4% from RMB1,062.8 million in the third quarter of 2020, primarily due to the tightening regulatory environment in internet and technology sector which, to some extent, resulted in constrained budgets of advertisers.

Other revenues were RMB66.3 million (US$10.3 million) in the third quarter of 2021, a slight decrease of 1.4% from RMB67.2 million in the third quarter of 2020. The decrease was primarily due to the decrease in revenues from live-streaming and gaming.

Cost of revenues were RMB268.6million (US$41.7 million) in the third quarter of 2021, a decrease of 27.8% from RMB371.8 million in the third quarter of 2020, primarily attributable to decreases in IT infrastructure costs, integrated marketing service costs which are in line with the decrease in integrated marketing service revenues; costs related to live-streaming revenue sharing and compensation expenses; the decrease was partially offset by an increase in Midu Novels content and license fee due to the expansion in Midu Novels and the Company’s ongoing investment in improving content quality.

Gross profit was RMB696.9 million (US$108.2 million) in the third quarter of 2021, a decrease of 8.1% from RMB758.3 million in the third quarter of 2020. Gross margin was 72.2%, compared to 67.1% in the third quarter of 2020.

Research and development expenses were RMB140.0 million (US$21.7 million) in the third quarter of 2021, a decrease of 42.4% from RMB243.1 million in the third quarter of 2020 primarily due to a reduction in overall research and development headcount and consequentially the decrease in compensation expenses, including share-based compensations.

Sales and marketing expenses were RMB980.7 million (US$152.2 million) in the third quarter of 2021, an increase of 39.8% from RMB701.5 million in the third quarter of 2020. Sales and marketing expenses as a percentage of net revenues were 101.6% in the third quarter of 2021, compared to 62.1% in the third quarter of 2020 and 75.0% in the second quarter of 2021, primarily due to the expansion of Midu Novels.

User engagement expenses were RMB161.8 million (US$25.1 million) in the third quarter of 2021, representing a decrease of 38.9% year-over-year and a decrease of 4.5% quarter-over-quarter. User engagement expenses per DAU per day were RMB 0.07 in the third quarter of 2021, compared to RMB0.07 in the third quarter of 2020 and RMB0.06 in the second quarter of 2021. The year-over-year decrease of user engagement expenses was primarily due to the decrease in DAU as well as the Company’s ongoing efforts in optimizing its loyalty program and enhancing content algorithm facilitated by the Company’s AI platform that aims to match the content more precisely with users’ personalized needs.

User acquisition expenses were RMB757.3 million (US$117.5 million) in the third quarter of 2021, an increase of 96.2% year-over-year and an increase of 10.5% 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 due to the expansion of Midu Novels. User acquisition expenses per new installed user⁴ in the third quarter of 2021 were RMB7.30, compared to RMB5.73 in the third quarter of 2020 and RMB7.29 in the second quarter of 2021.

Other sales and marketing expenses were RMB61.6 million (US$9.6 million) in the third quarter of 2021, increasing 21.0% year-over-year from RMB50.9 million in the third quarter of 2020.

General and administrative expenses were RMB174.3 million (US$27.0 million) in the third quarter of 2021, an increase of 103.9% from RMB85.5 million in the third quarter of 2020, mainly due to an additional expected credit loss provision of RMB133.8 million recorded in the third quarter of 2021 under ASC 326, Measurement of Credit Losses on Financial Instruments. The increase was partially offset by a decrease in share-based compensations.

Loss from operations was RMB574.2 million (US$89.1 million) in the third quarter of 2021, compared to RMB247.9 million in the third quarter of 2020. Operating loss margin was 59.5%, compared to 21.9% in the third quarter of 2020.

Non-operating loss was RMB8.3 million (US$1.3 million) in the third quarter of 2021, which mainly included net interest expenses of RMB8.1 million. Non-operating income was RMB14.1 million in the previous quarter, mainly due to a third party’s investment in one of the Company’s subsidiaries and generated a deconsolidation and a related disposal gain of RMB23.1 million. Non-operating loss for the third quarter of 2020 was RMB23.6 million, which mainly included a net interest expenses of RMB8.0 million as well as RMB15.4 million loss associated with fair value changes on long-term investments.

Non-GAAP loss from operations was RMB515.7 million (US$80.0 million) in the third quarter of 2021, compared to RMB109.9 million in the third quarter of 2020.

Non-GAAP operating loss margin was 53.4% in the third quarter of 2021, compared to 9.7% in the third quarter of 2020.

Net loss was RMB583.6 million (US$90.6 million) in the third quarter of 2021, compared to RMB269.4 million in the third quarter of 2020. Net loss margin was 60.4%, compared to 23.8% in the third quarter of 2020.

Non-GAAP net loss was RMB525.1 million (US$81.5 million) in the third quarter of 2021, compared to RMB131.4 million in the third quarter of 2020. Non-GAAP net loss margin was 54.4%, compared to 11.6% in the third quarter of 2020.

Net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB611.1 million (US$94.8 million) in the third quarter of 2021, compared to RMB281.4 million in the third quarter of 2020.

Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB552.6 million (US$85.8 million) in the third quarter of 2021, compared to RMB143.4 million in the third quarter of 2020.

Basic and diluted net loss per American Depositary Share (“ADS”) was RMB20.10 (US$3.12) in the third quarter of 2021. Non-GAAP basic and diluted net loss per ADS was RMB18.18 (US$2.82) in the third quarter of 2021.

On December 2, 2021, the Company announced a plan to change the ratio of its ADSs to its Class A ordinary shares (the “ADS Ratio”), par value US$0.0001 per share, from the then ADS Ratio of four (4) ADSs to one (1) Class A ordinary share to a new ADS Ratio of two (2) ADSs to five (5) Class A ordinary shares. The change in the ADS Ratio was effective on December 10, 2021. For Qutoutiao’s ADS holders, the change in the ADS Ratio had the same effect as a one-for-ten reverse ADS split. For all the periods presented, basic and diluted loss per ADS assuming the change of ADS ratio from a ratio of four ADSs to one Class A ordinary share to a new Ratio of two ADSs to five Class A ordinary shares occurred at the beginning of the earliest period presented.

Balance Sheet

As of September 30, 2021, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB862.3 million (US$133.8 million), compared to RMB985.8 million as of December 31, 2020.

The Group has incurred accumulated and recurring losses from operations, and cash outflows from operating activities. In addition, the Convertible Loan which the Company issued with principal amounting to US$171.1 million (RMB1,109.3 million) will mature in April 2022 and has been classified as a current liability as of September 30, 2021.

The Group’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plans, which include adjusting the pace of its operation expansion, optimizing business operation strategy and controlling operating costs and expenses to improve the operating cash flows, and the Company’s ability to repay the Convertible Loan upon maturity. There is uncertainty regarding the execution of the business plans and the repayment of the Convertible Loan upon maturity, which raises substantial doubt about the Group’s ability to continue as a going concern. The third quarter 2021 unaudited financial information does not include any adjustment that is reflective of this uncertainty.

Business Outlook

For the fourth quarter of 2021, the Company expects group net revenues to be between RMB850 million to RMB900 million.

Conference Call

Qutoutiao’s management will host an earnings conference call at 8:00 A.M. U.S. Eastern Time on December 21, 2021 (9:00 P.M. Beijing/Hong Kong time on December 21, 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/7685614 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 07:59 A.M. U.S Eastern Time on December 29, 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:	7685614

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 RMB6.4434 to US$1.00, the rate in effect as of September 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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 thousand RMB, or otherwise noted)

	As of December 31,			As of September 30,
	2020			2021

ASSETS
Current assets:
Cash and cash equivalents		494,475			221,164
Restricted cash		100,316			36,500
Short-term investments		391,033			604,683
Accounts receivable, net		737,789			831,838
Amount due from related parties		383,594			313,547
Prepayments and other current assets		365,109			208,150
Total current assets		2,472,316			2,215,882

Non-current assets:
Accounts receivables, non-current		54,639			–
Long-term Investments		82,889			88,177
Property and equipment, net		17,213			15,142
Intangible assets		83,123			179,652
Goodwill		7,268			7,268
Right-of-use assets, net		50,319			28,609
Other non-current assets		148,091			5,111
Total non-current assets		443,542			323,959
Total assets		2,915,858			2,539,841

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings		70,000			–
Accounts payable		448,981			409,629
Amount due to related parties		22,477			8,465
Registered users’ loyalty payable		72,627			66,607
Advance from customers and deferred revenue		140,776			139,707
Salary and welfare payable		149,704			85,371
Tax payable		97,144			34,893
Lease liabilities, current		20,760			12,346
Accrued liabilities related to users’ loyalty programs		100,088			97,660
Accrued liabilities and other current liabilities		763,433			1,410,756
Convertible loan – current		–			1,194,254
Total current liabilities		1,885,990			3,459,688

Lease liabilities, non-current		23,756			15,018
Convertible loan		1,174,868			–
Deferred tax liabilities		18,825			2,381
Other non-current liabilities		4,256			17,023
Non-current liabilities		1,221,705			34,422
Total liabilities		3,107,695			3,494,110

Total redeemable non-controlling interests		1,093,526			1,165,802

Shareholders’ deficit
Ordinary shares		47			48
Treasury stock		(142,229	)		(142,229	)
Additional paid-in capital		4,784,315			4,959,993
Accumulated other comprehensive income		84,320			96,680
Accumulated deficit		(6,007,227	)		(7,029,415	)
Total Qutoutiao Inc. shareholders’ deficit		(1,280,774	)		(2,114,923	)
Non-controlling interests		(4,589	)		(5,148	)
Total deficit		(1,285,363	)		(2,120,071	)

Total liabilities, redeemable non-controlling interests and shareholders’ deficit		2,915,858			2,539,841

QUTOUTIAO INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousand 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
	2020			2021			2021			2020			2021


Advertising and marketing revenues		1,062,767			1,141,370			899,215			3,804,897			3,268,618
Other revenues		67,245			60,604			66,297			177,907			189,848
Net revenues		1,130,012			1,201,974			965,512			3,982,804			3,458,466

Cost of revenues		(371,756	)		(327,734	)		(268,578	)		(1,232,726	)		(977,588	)
Gross profit		758,256			874,240			696,934			2,750,078			2,480,878

Operating expenses:
Research and development expenses		(243,119	)		(136,173	)		(140,014	)		(748,182	)		(462,870	)
Sales and marketing expenses		(701,460	)		(901,273	)		(980,714	)		(2,701,300	)		(2,682,680	)
General and administrative expenses		(85,459	)		(93,442	)		(174,258	)		(298,427	)		(369,310	)
Total operating expenses		(1,030,038	)		(1,130,888	)		(1,294,986	)		(3,747,909	)		(3,514,860	)

Other operating income		23,846			32,717			23,883			55,753			88,528

Loss from Operations		(247,936	)		(223,931	)		(574,169	)		(942,078	)		(945,454	)

Investment income/ (expenses), net		(14,267	)		(4,133	)		705			(51,778	)		(763	)
Interest expense, net		(7,959	)		(8,065	)		(8,107	)		(18,272	)		(23,976	)
Foreign exchange related gain/(loss), net		(2,815	)		3,142			(2	)		(5,612	)		327
Other income/(expense), net		1,457			23,198			(918	)		(6,276	)		28,328
Non-operating income / (loss)		(23,584	)		14,142			(8,322	)		(81,938	)		3,916

Loss before provision for income taxes		(271,520	)		(209,789	)		(582,491	)		(1,024,016	)		(941,538	)
Income tax benefits/ (expense), net		2,081			296			(576	)		658			(56	)
Equity method loss of affiliate companies		–			–			(581	)		–			(581	)

Net loss		(269,439	)		(209,493	)		(583,648	)		(1,023,358	)		(942,175	)

Net loss attributable to non-controlling interests		161			175			214			478			559
Net loss attributable to Qutoutiao Inc.		(269,278	)		(209,318	)		(583,434	)		(1,022,880	)		(941,616	)

Accretion to convertible redeemable preferred shares redemption value of a subsidiary		(12,153	)		(26,748	)		(27,698	)		(36,335	)		(80,572	)

Net loss attributable to Qutoutiao Inc.’s ordinary shareholders		(281,431	)		(236,066	)		(611,132	)		(1,059,215	)		(1,022,188	)

Net loss		(269,439	)		(209,493	)		(583,648	)		(1,023,358	)		(942,175	)
Other comprehensive income/(loss):
Foreign currency translation adjustment, net of nil tax		50,225			32,075			(6,727	)		34,287			12,360
Total comprehensive loss		(219,214	)		(177,418	)		(590,375	)		(989,071	)		(929,815	)
Comprehensive loss attributable to non-controlling interests		161			175			214			478			559
Comprehensive loss attributable to Qutoutiao Inc.		(219,053	)		(177,243	)		(590,161	)		(988,593	)		(929,256	)

Net loss per ADS:
– Basic and diluted		(9.61	)		(7.79	)		(20.10	)		(36.82	)		(33.81	)

Weighted average number of ADS used in computing basic and diluted earnings per ADS(Note):
– Basic		29,299,044			30,322,062			30,404,904			28,770,410			30,228,917
– Diluted		29,299,044			30,322,062			30,404,904			28,770,410			30,228,917

QUTOUTIAO INC.
Reconciliation of GAAP And Non-GAAP Results
(All amounts in thousand 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
	2020			2021			2021			2020			2021



Loss from Operations		(247,936	)		(223,931	)		(574,169	)		(942,078	)		(945,454	)
Add: Share-based compensation expenses
Cost of revenues		4,361			–			170			10,923			1,166
General and administrative		49,066			3,017			12,822			114,606			56,925
Sales and marketing		22,104			–			23,230			47,404			25,540
Research and development		62,473			20,491			22,280			157,664			92,047

Non-GAAP Loss from Operations		(109,932	)		(200,423	)		(515,667	)		(611,481	)		(769,776	)

Net loss		(269,439	)		(209,493	)		(583,648	)		(1,023,358	)		(942,175	)
Add: Share-based compensation expenses
Cost of revenues		4,361			–			170			10,923			1,166
General and administrative		49,066			3,017			12,822			114,606			56,925
Sales and marketing		22,104			–			23,230			47,404			25,540
Research and development		62,473			20,491			22,280			157,664			92,047

Non-GAAP net loss		(131,435	)		(185,985	)		(525,146	)		(692,761	)		(766,497	)

Net loss attributable to Qutoutiao Inc.		(269,278	)		(209,318	)		(583,434	)		(1,022,880	)		(941,616	)
Add: Share-based compensation expenses
Cost of revenues		4,361			–			170			10,923			1,166
General and administrative		49,066			3,017			12,822			114,606			56,925
Sales and marketing		22,104			–			23,230			47,404			25,540
Research and development		62,473			20,491			22,280			157,664			92,047

Non-GAAP net loss attributable to Qutoutiao Inc.		(131,274	)		(185,810	)		(524,932	)		(692,283	)		(765,938	)

Net loss attributable to Qutoutiao Inc.’s ordinary shareholders		(281,431	)		(236,066	)		(611,132	)		(1,059,215	)		(1,022,188	)
Add: Share-based compensation expenses
Cost of revenues		4,361			–			170			10,923			1,166
General and administrative		49,066			3,017			12,822			114,606			56,925
Sales and marketing		22,104			–			23,230			47,404			25,540
Research and development		62,473			20,491			22,280			157,664			92,047

Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders		(143,427	)		(212,558	)		(552,630	)		(728,618	)		(846,510	)

Non-GAAP net loss per ADS:
— Basic and diluted		(4.90	)		(7.01	)		(18.18	)		(25.33	)		(28.00	)

Weighted average number of ADS used in computing basic and diluted earnings per ADS (Note)
— Basic		29,299,044			30,322,062			30,404,904			28,770,410			30,228,917
— Diluted		29,299,044			30,322,062			30,404,904			28,770,410			30,228,917

Note: For all the periods presented, basic and diluted loss per ADS assuming the change of ADS ratio from a ratio of four ADSs to one Class A ordinary share to a new Ratio of two ADSs to five Class A ordinary shares occurred at the beginning of the earliest period presented.

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

2020

2021

Net revenues

1,130.0

1,302.4

1,291.0

1,202.0

965.5

User engagement expenses

264.7

163.2

179.1

169.5

161.8

User acquisition expenses

385.9

397.1

588.7

685.2

757.3

Other sales and marketing expenses

50.9

119.9

32.9

46.6

61.6

Total sales and marketing expenses

701.5

680.2

800.7

901.3

980.7

Combined Average MAUs (in millions)

120.5

124.7

133.3

132.3

118.5

Combined Average DAUs (in millions)

39.7

32.3

31.7

29.1

26.5

New installed users (in millions)

67.3

50.3

101.8

94.0

103.8

Average net revenues per DAU per day (RMB)

0.31

0.44

0.45

0.46

0.41

User engagement expenses per DAU per day (RMB)

0.07

0.05

0.06

0.07

User acquisition expenses per new installed
user (RMB)

5.73

7.89

5.78

7.29

7.30

____________________________________________
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.

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Lithium Miners Strategize for Long-Term Gains as Market Recovers

Published

2 days ago

May 3, 2024

CISION (PR Newswire)

USA News Group Commentary
Issued on behalf of Lithium South Development Corporation
VANCOUVER, BC, May 3, 2024 /PRNewswire/ — USA News Group – Despite what appears to be a supply glut currently in the global lithium market, already there are signs of a lithium rebound on the horizon. According to Statista, global lithium demand is projected to grow through next year, while Fastmarkets predicts lithium supply will increase 30% in 2024. Fastmarkets also expects that by 2030, US lithium demand alone will grow by nearly 500%. Looking ahead, lithium miners continue to move their chess pieces onto the board with anticipation of long-term rewards, including the work of Lithium South Development Corporation (TSXV:LIS) (OTC:LISMF), Sociedad Química y Minera de Chile S.A. (SQM) (NYSE:SQM), Piedmont Lithium Inc. (NASDAQ:PLL), Lithium Americas Corp. (NYSE:LAC) (TSX:LAC), and Rio Tinto Group (NYSE:RIO).

Lithium South Development Corporation (TSXV:LIS) (OTC:LISMF) recently filed a new Preliminary Economic Assessment (PEA), which provides support for the company to proceed with development plans for a 15,600 tonnes per year lithium carbonate plant. As per the PEA, the project’s financial model shows a Net Present Value (NPV) after tax of US$938 million, and an after-tax Internal Rate of Return (IRR) of 31.6%, with a 2.5-year payback.
“We are very pleased to have achieved this important milestone for the HMN Li Project,” said Adrian F.C. Hobkirk, Founder, President and CEO of Lithium South. “The robust economics and room for expansion indicate a promising future for Lithium South.”
The HMN Li project is planned to use an extraction and recovery process based on conventional solar evaporation of the well brine. Magnesium and other contaminants will be removed using industry standard proven methods including liming. The concentrated lithium solution will then be processed into lithium carbonate technical grade.
The PEA announcement came just weeks after the company announced the expansion of its ongoing production well drill program. A 400 meter deep pumping well has been completed at the Alba Sabrina claim block, which at 2,089 hectares is the project’s largest. Recent efforts at the well successfully cleared out sediments, leading to the flow of clear brine with strong artesian characteristics, suggesting potential for enhanced brine extraction rates. To maximize these benefits, Lithium South has contracted a significantly larger 80-kilowatt pump, and is now completing a long term pump test. Based on results, further wells are planned for Alba Sabrina and the southern claim blocks at Viamonte and Norma Edith.
“These developments on the Alba Sabrina claim block could potentially enhance our operational capacity,” said Hobkirk. “The completion of this pumping test, anticipated by the end of May, will provide critical technical insight into the capacity potential of this area of the salar.”
Earlier in the year, Lithium South together with the Korean conglomerate POSCO, entered into a cooperative development agreement on the HMN Li Project, representing a crucial step forward in advancing towards lithium production. Previously, towards the end of 2023, Lithium South also released an updated NI 43-101 technical report for its premier HMN Li asset, which demonstrated a significant 175% boost in its lithium resource, amounting to over 1.58 million tonnes of lithium carbonate equivalent (LCE).
According to Chile’s Sociedad Química y Minera de Chile S.A. (SQM) (NYSE:SQM), there will be steady lithium prices in the coming months, despite the supply glut. In particular, SQM is optimistic for the second half of the year, which the company predicts will entail higher sales volumes.
“As we enter into 2024, we anticipate another robust year of growth in lithium market, with global demand increasing by at least 20%, supported by electric vehicle sales growth globally and increasing demand for battery materials,” said Ricardo Ramos, CEO of SQM. “However, the excess in lithium and battery materials capacity seen during last year is expected to continue during this year, keeping pressure on lithium market prices. We expect our average lithium prices to remain relatively stable throughout the year and our sales volumes to increase slightly during this year, subject to market conditions and any changes in supply-demand balance.”
This optimism was shared by Keith Phillips, CEO of Piedmont Lithium Inc. (NASDAQ:PLL) in an interview with Yahoo! Finance Live.
“[When it comes to mining] low prices are the cure for low prices,” said Phillips, adding that “it’s a matter of time” that prices will rebound. How fast that rebound occurs is still to be determined, however, Piedmont isn’t slowing its march.
Just recently, Piedmont received its state mining permit from the state of North Carolina, where the company owns 3,600 acres, from which it plans to mine spodumene from at least half of the area. Piedmont will then convert the material to lithium hydroxide, which is key to the manufacturing of EV batteries.
“We look forward to continued engagement with the local community and the Gaston County Board of Commissioners,” said Phillips. “We have had extensive and ongoing dialogue with possible funding sources for Carolina Lithium.”
Domestically sourced lithium is projected to become even more desirable, especially with US government incentives underway. Lithium Americas Corp. (NYSE:LAC) (TSX:LAC) recently secured a record $2.26 billion loan from the US Department of Energy to build its Thacker Pass lithium project in Nevada.
Construction began at the site located just south of the Nevada-Oregon border in March 2023, following a lengthy and intricate legal victory over conservationists, ranchers, and Indigenous groups. Lithium Americas anticipates finalizing securing a loan later this year, pending the completion of final environmental assessments. Once the financing is in place, the company aims to commence substantial construction activities, a project slated to last three years. The initial phase of the mine is projected to yield 40,000 metric tons of battery-grade lithium carbonate annually, sufficient to supply up to 800,000 electric vehicles.
“Our team has been focused on refining the development plan and de-risking construction execution of Phase 1 for Thacker Pass,” said Jonathan Evans, President and CEO of Lithium Americas. “We have de-risked execution by advancing detailed engineering and project planning. To date, we have completed all the early-works and infrastructure required for major construction, including excavating the processing plant areas.”
Looking at multiple international lithium projects, mining giant Rio Tinto Group (NYSE:RIO) has already expressed the company remains bullish on lithium despite not currently seeking any big acquisitions. Back in March, Rio Tinto committed to spending $350 million on its Rincon lithium project in Argentina, set to commence production by the end of the year.
This comes just months after the President of Serbia expressed interest to hold further talks with Rio Tinto regarding its Jadar lithium project, after the country revoked licenses on the $2.4 billion asset in 2022. If brought to completion, the project could supply 90% of Europe’s current lithium needs, and make Rio Tinto a leading lithium producer. As well, Rio Tinto held talks with the country of Rwanda back in January for the exploration and mining of lithium in the East African nation.
“[Rio Tinto is] “excited to be partnering with the government of Rwanda, applying our global experience to accelerate the search for primary lithium deposits in Rwanda’s Western Province,” said Lawrence Dechambenoit, global head of external affairs at Rio Tinto. The move could further unlock the potential of another country’s mining sector, if successful.
Source: https://usanewsgroup.com/2023/10/18/the-lithium-race-to-power/
CONTACT:USA NEWS [email protected] (604) 265-2873
Mr. William Feyerabend, a Consulting Geologist and Qualified Person under National Instrument 43-101 participated in the production of this advertisement, and approves of the technical and scientific disclosure contained herein pertaining to Lithium South.
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Lithium South Development Corporation advertising and digital media from the company directly. There may be 3rd parties who may have shares of Lithium South Development Corporation, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Lithium South Development Corporation which were purchased as a part of a private placement. MIQ reserves the right to buy and sell, and will buy and sell shares of Lithium South Development Corporation at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. The contents of this advertisement were reviewed by Mr. William Feyerabend, a Consulting Geologist and Qualified Person as defined under National Instrument 43-101. Mr. Feyerabend approves of the scientific and technical disclosure pertaining to Lithium South contained within this advertisement. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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Artificial Intelligence

ROLLER and Amusement Connect Announce Integration to Streamline Cashless Card Operations

Published

2 days ago

May 3, 2024

CISION (PR Newswire)

New partnership enhances guest experiences and operational efficiency across attraction venues
AUSTIN, Texas, May 3, 2024 /PRNewswire/ — In an effort to improve the guest experience and streamline operations for attractions venues, ROLLER, a global leader in leisure and attractions technology, has joined forces with Amusement Connect, a recognized leader in cashless card operations. This strategic partnership delivers an integration that aims to streamline the arcade experience for operators and guests alike, providing a more efficient way for entertainment venues to operate.

Through this integration, ROLLER and Amusement Connect enable the sale, top-up, and balance checks of cashless cards directly from ROLLER’s point-of-sale devices, simplifying the management of pay-to-play attractions. This move is expected to enhance operational efficiency and improve guest satisfaction by making sales smoother and more convenient. The integration also simplifies reporting by automatically recording every purchase of a cashless card, saving venue operators time and ensuring accurate tracking of purchases.
Both companies leverage cloud-based technology to ensure that venues can operate without the need for expensive servers, with the promise of continuous updates to keep the systems equipped with the latest features and improvements. This integration also introduces the option for guests to purchase game cards online through ROLLER’s online checkout, a feature designed to make the check-in process more efficient and increase average transaction values.
“Amusement Connect and ROLLER have a shared commitment to helping attractions businesses deliver exceptional guest experiences. So, we’re thrilled to partner with Amusement Connect on this integration – a trailblazing company known for great customer support and providing innovative tech. This isn’t just about upgrading our technology—it’s delivering on our promise to make every guest experience smoother and every operator’s day a bit easier,” explained Luke Finn, CEO and Founder of ROLLER.
“As we continue to innovate and collaborate with industry leaders like ROLLER, we’re thrilled to see the tangible benefits our integration brings to our customers. Together, we’re not just transforming transactions; we’re elevating experiences and driving profitability with every interaction,” commented Frank Licausi, Co-Owner of Amusement Connect.
This partnership between ROLLER and Amusement Connect represents a significant step towards more streamlined operations in the amusement industry. It offers a blend of efficiency and convenience aimed at improving the way entertainment venues operate and enhancing the overall guest experience. For more information on this integration and how it can benefit your venue, contact ROLLER or Amusement Connect directly.
About ROLLER
ROLLER is the cloud-based venue management platform for the modern attraction, purpose-built to remove friction from the guest experience at every touchpoint. Their all-in-one platform simplifies its customers’ business processes, improving efficiency and maximizing revenue. ROLLER’s comprehensive solution includes: Online Checkout & Ticketing, Point-of-Sale, Integrated Payments, Memberships, Gift Cards, Waivers, Self-Serve Kiosks, Cashless Wallets, the Guest Experience Score®, and more. To learn more, visit roller.software.
About Amusement Connect
Founded by Frank Licausi and John Tarpley in 2017, our comprehensive game card system, accompanied by a variety of products, provides a complete overview on games and attractions in settings like bars, arcades, FEC’s, and multi-location entertainment centers. As operators and industry experts, we bring innovation, value, and the best possible experiences to entertainment venues with our award-winning game card system. Bringing you more at amusementconnect.com.

View original content:https://www.prnewswire.co.uk/news-releases/roller-and-amusement-connect-announce-integration-to-streamline-cashless-card-operations-302135415.html

Artificial Intelligence

Computer Vision in Healthcare Market Worth $11.5 billion | MarketsandMarkets™

Published

2 days ago

May 3, 2024

CISION (PR Newswire)

CHICAGO, May 3, 2024 /PRNewswire/ — Computer Vision in Healthcare Market in terms of revenue was estimated to be worth $3.9 billion in 2024 and is poised to reach $11.5 billion by 2029, growing at a CAGR of 24.0% from 2024 to 2029 according to a new report by MarketsandMarkets™.

The market’s expansion is fueled by the exponential growth of medical imaging data which necessitates efficient analysis methods, where computer vision techniques excel in automating and enhancing diagnostic processes. Further, the demand for improved patient care and outcomes fuels the adoption of AI-driven solutions, empowering healthcare providers with precise tools for diagnosis, treatment planning, and monitoring. Nevertheless, ensuring the accuracy and reliability of computer vision algorithms remains a significant challenge, especially in complex medical imaging tasks where errors can have critical consequences. Additionally, the regulatory landscape surrounding AI-based medical devices is evolving, requiring stringent validation and approval processes, which can impede the timely deployment of innovative solutions. Thus, restraining the market.
Download an Illustrative overview: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=231790940
Browse in-depth TOC on “Computer Vision in Healthcare Market”
505 – Tables55 – Figures379 – Pages
Computer Vision in Healthcare Market Scope:
Report Coverage
Details
Market Revenue in 2024
$3.9 billion
Estimated Value by 2029
$11.5 billion
Growth Rate
Poised to grow at a CAGR of 24.0%
Market Size Available for
2022–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
Product & Service, Type, Applications, End User
Geographies Covered
North America, Europe, Asia Pacific, Latin America and Middle East and Africa
Report Highlights
Updated financial information / product portfolio of players
Key Market Opportunities
Computer vision solutions for healthcare that are hosted in the cloud
Key Market Drivers
The healthcare sector is experiencing a growing need for computer vision systems
“The largest share in the computer vision in healthcare market, based on type, was attributed to the PC-based computer vision systems segment in 2023.”
The PC-based computer vision systems segment holds the largest market share in the computer vision in healthcare market in 2023. The growth of this segment is propelled by factors such as PCs offering robust computational power, enabling real-time processing of complex algorithms required for tasks like medical image analysis. Also, PCs provide flexibility and scalability, allowing users to customize hardware configurations and software solutions according to specific requirements. This versatility makes them adaptable to various healthcare settings, from small clinics to large hospitals.
“In 2023, the patient activity monitoring/fall prevention segment demonstrated the most significant growth in the computer vision in healthcare market based on hospital management by type.”
The patient activity monitoring/fall prevention segment is expected to experience the highest growth in the computer vision in healthcare market. The key drivers for this growth include the aging population worldwide that has led to an increased focus on elderly care and fall prevention initiatives. Computer vision systems offer non-intrusive and continuous monitoring of patients’ movements, enabling early detection of potential fall risks and timely intervention to prevent accidents. Also, the growing adoption of wearable devices and smart sensors integrated with computer vision technology allows for seamless monitoring of patients’ activities both inside healthcare facilities and at home. This remote monitoring capability enhances patient safety and independence while reducing the burden on caregivers and healthcare resources.
“North America accounted for the largest share of the healthcare simulation market in 2023.”
In 2023, North America held the largest share in the computer vision in healthcare market, with Europe and Asia Pacific following. The significant presence of North America in the global market can be attributed to factors such as region’s strong focus on improving patient outcomes and reducing healthcare costs which incentivizes the integration of computer vision solutions to streamline processes, enhance diagnostics, and optimize treatment pathways.
Request Sample Pages: https://www.marketsandmarkets.com/requestsampleNew.asp?id=231790940
Computer Vision in Healthcare Market Dynamics:
Drivers:
The healthcare sector is experiencing a growing need for computer vision systemsRestraints:
The resistance of medical practitioners towards adopting AI-based technologiesOpportunities:
Computer vision solutions for healthcare that are hosted in the cloudChallenge:
Lack of curated dataKey Market Players of Computer Vision in Healthcare Industry:
The key players functioning in the computer vision in healthcare market include NVIDIA Corporation (US), Intel Corporation (US), Microsoft Corporation (US), Advanced Micro Devices, Inc. (US), Google, Inc. (US), Basler AG (Germany), AiCure (US), iCAD, Inc. (US), Thermo Fisher Scientific Inc. (US), SenseTime (China), KEYENCE CORPORATION (Japan), Assert AI (India), Artisight (US), LookDeep Inc. (US), care.ai (US), CareView Communications (US), VirtuSense (US), Teton (Denmark), viso.ai (Switzerland), NANO-X IMAGING LTD. (Israel), Comofi Medtech Pvt. Ltd. (India), Avidtechvision (India), Roboflow, Inc. (US), Optotune (US) and CureMetrix, Inc. (US).
The break-down of primary participants is as mentioned below:
By Company Type – Tier 1: 45%, Tier 2: 30%, and Tier 3: 25%By Designation – C-level: 42%, Director-level: 31%, and Others: 27%By Region – North America: 32%, Europe: 32%, Asia Pacific: 26%, Middle East & Africa: 5%, Latin America: 5%Get 10% Free Customization on this Report: https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=231790940
Recent Developments of Computer Vision in Healthcare Industry:
In April 2024, iCAD partnered with RAD-AID to enhance breast cancer detection utilizing the AI technology in underserved regions and low- and middle-income countries (LMICs).In March 2024, Microsoft and NVIDIA have broadened their longstanding collaboration with robust new integrations that harness cutting-edge NVIDIA generative AI and Omniverse technologies across Microsoft Azure, Azure AI services, Microsoft Fabric, and Microsoft 365.In February 2022, Advanced Micro Devices acquired Xilinx. This acquisition established the forefront leader in high-performance and adaptive computing, with a significantly expanded scale and the most formidable portfolio of leadership computing, graphics, and adaptive SoC products in the industry.Computer Vision in Healthcare Market – Key Benefits of Buying the Report:
This report will enrich established firms and new entrants/smaller firms to gauge the market’s pulse, which, in turn, would help them garner a greater share of the market. Firms purchasing the report could use one or a combination of the below-mentioned strategies to strengthen their positions in the market.
This report provides insights on:
Analysis of key drivers: (Increasing demand for computer vision systems in the healthcare industry, government initiatives to increase the adoption of AI-based technologies), restraints (Reluctance of medical practitioners to adopt AI-based technologies), opportunities (Cloud-based healthcare computer vision solutions), and challenges (Rising security concerns related to cloud-based image processing and analytics) influencing the growth of the computer vision in healthcare market.Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the computer vision in healthcare market.Market Development: Comprehensive information on the lucrative emerging markets, products & services, applications, end-users, and regions.Market Diversification: Exhaustive information about the product portfolios, growing geographies, recent developments, and investments in the computer vision in healthcare market.Competitive Assessment: In-depth assessment of market shares, growth strategies, product offerings, and capabilities of the leading players in the computer vision in healthcare market like NVIDIA Corporation (US), Intel Corporation (US), Microsoft Corporation (US), Advanced Micro Devices, Inc. (US), Google, Inc. (US).Related Reports:
Medical Robots Market – Global Forecasts to 2029
Minimally Invasive Surgery Market – Global Forecasts to 2029
Spinal Implants Market – Global Forecasts to 2028
Medical Waste Management Market – Global Forecasts to 2028
Operating Room Integration Market – Global Forecasts to 2028
Get access to the latest updates on Computer Vision in Healthcare Companies and Computer Vision in Healthcare Market Size
About MarketsandMarkets™:
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
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View original content:https://www.prnewswire.co.uk/news-releases/computer-vision-in-healthcare-market-worth-11-5-billion–marketsandmarkets-302135478.html