Artificial Intelligence
Qutoutiao Inc. Reports Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results
SHANGHAI, China, May 02, 2022 (GLOBE NEWSWIRE) — Qutoutiao Inc. (“Qutoutiao”, the “Company” or “We”, and together with its subsidiaries and controlled affiliated entities, the “Group”) (NASDAQ: QTT), a leading operator of mobile content platforms in China, today announced its unaudited financial results in the fourth quarter and fiscal year ended December 31, 2021.
Fourth Quarter 2021 Highlights
- Net revenues was RMB881.1 million (US$138.3 million), representing a decrease of 32.3% from RMB1,302.4 million in the fourth quarter of 2020, and a decrease of 8.7% quarter-over-quarter from RMB965.5 million in the third quarter of 2021.
- Net loss was RMB298.0 million (US$46.8 million), compared to net loss of RMB81.8 million in the fourth quarter of 2020 and net loss of RMB583.6 million in the third quarter of 2021. Net loss margin was 33.8%, compared to 6.3% in the fourth quarter of 2020 and 60.4% in the third quarter of 2021.
- Non-GAAP net income/(loss)1 was RMB273.5 million (US$42.9 million), compared to non-GAAP net income of RMB50.8 million in the fourth quarter of 2020 and non-GAAP net loss of RMB525.1 million in the third quarter of 2021. Non-GAAP net loss margin was 31.0%, compared to non-GAAP net income margin of 3.9% in the fourth quarter of 2020 and non-GAAP net loss margin of 54.4% in the third quarter of 2021.
- Combined average MAUs2 were 97.6 million, representing a decrease of 21.7% from 124.7 million in the fourth quarter of 2020; and a decrease of 17.6% from 118.5 million in the third quarter of 2021.
- Combined average DAUs3 were 25.0 million, representing a decrease of 22.6% from 32.3 million in the fourth quarter of 2020; and a decrease of 5.7% from 26.5 million in the previous quarter.
- Average daily time spent per DAU was 43.2 minutes, compared to 50.3 minutes in the fourth quarter of 2020 and 51.9 minutes in the third quarter of 2021.
Fourth Quarter 2021 Financial Results
Net revenues in the fourth quarter of 2021 were RMB881.1 million (US$138.3 million), a decrease of 32.3% from RMB1,302.4 million in the fourth quarter of 2020, and a decrease of 8.7% from RMB965.5 million in the third quarter of 2021.
Advertising and marketing revenues were RMB821.8 million (US$129.0 million) in the fourth quarter of 2021, a decrease of 33.8% from RMB1,241.9 million in the fourth 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 RMB59.4 million (US$9.3 million) in the fourth quarter of 2021, a slight decrease of 1.8% from RMB60.5 million in the fourth quarter of 2020.
Cost of revenues were RMB199.1million (US$31.2 million) in the fourth quarter of 2021, a decrease of 54.9% from RMB441.7 million in the fourth quarter of 2020, primarily attributable to decreases in IT infrastructure costs; gaming revenue sharing; integrated marketing service costs which are in line with the decrease in integrated marketing service revenues; and costs related to live-streaming revenue sharing and compensation expenses.
Gross profit was RMB682.0 million (US$107.0 million) in the fourth quarter of 2021, a decrease of 20.8% from RMB860.7 million in the fourth quarter of 2020. Gross margin was 77.4%, compared to 66.1% in the fourth quarter of 2020. The improved gross margin was primarily attributed to changes in product mix.
Research and development expenses were RMB88.7 million (US$13.9 million) in the fourth quarter of 2021, a decrease of 55.6% from RMB199.7 million in the fourth 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 RMB796.0 million (US$124.9 million) in the fourth quarter of 2021, an increase of 17.0% from RMB680.3 million in the fourth quarter of 2020, primarily due to the expansion of Midu Novels. Sales and marketing expenses as a percentage of net revenues were 90.3% in the fourth quarter of 2021, compared to 52.2% in the fourth quarter of 2020.
User engagement expenses were RMB156.5 million (US$24.6 million) in the fourth quarter of 2021, representing a decrease of 4.1% year-over-year. User engagement expenses per DAU per day were RMB 0.07 in the fourth quarter of 2021, compared to RMB0.05 in the fourth quarter of 2020.
User acquisition expenses were RMB599.8 million (US$94.1 million) in the fourth quarter of 2021, an increase of 51.0% year-over-year. 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 fourth quarter of 2021 were RMB8.26, compared to RMB7.89 in the fourth quarter of 2020.
Other sales and marketing expenses were RMB39.7 million (US$6.2 million) in the fourth quarter of 2021, representing a decrease of 66.9% year-over-year from RMB119.9 million in the fourth quarter of 2020, primarily due to an overall headcount reduction in sales personnel and consequentially the decrease in compensations as well as ESOP expenses and decrease in brand promotion expenses.
General and administrative expenses were RMB62.6 million (US$9.8 million) in the fourth quarter of 2021, a decrease of 33.7% from RMB94.4 million in the fourth quarter of 2020, mainly due to a reduction in overall administrative headcount and consequentially the decrease in compensations as well as ESOP expenses. The decrease was partially offset by an increase in additional expected credit loss provision recorded in the fourth quarter of 2021 under ASC 326, Measurement of Credit Losses on Financial Instruments.
Loss from operations was RMB247.8 million (US$38.9 million) in the fourth quarter of 2021, compared to RMB90.1 million in the fourth quarter of 2020. Operating loss margin was 28.1%, compared to 6.9% in the fourth quarter of 2020.
Non-operating loss was RMB45.2 million (US$7.1 million) in the fourth quarter of 2021, which mainly included investment loss of RMB36.8 million due to impairment loss on certain investments as well as net interest expenses of RMB8.3 million. Non-operating gain for the fourth quarter of 2020 was RMB7.9 million, which mainly included RMB20.0 million gain associated with fair value changes on long-term investments, offset by net interest expenses of RMB9.5 million.
Non-GAAP loss from operations was RMB223.3 million (US$35.0 million) in the fourth quarter of 2021, compared to a Non-GAAP gain from operations of RMB42.5 million in the fourth quarter of 2020.
Non-GAAP operating loss margin was 25.3% in the fourth quarter of 2021, compared to a Non-GAAP operating gain margin of 3.3% in the fourth quarter of 2020.
Net loss was RMB298.0 million (US$46.8 million) in the fourth quarter of 2021, compared to RMB81.8 million in the fourth quarter of 2020. Net loss margin was 33.8%, compared to 6.3% in the fourth quarter of 2020.
Non-GAAP net loss was RMB273.5 million (US$42.9 million) in the fourth quarter of 2021, compared to a Non-GAAP net gain of RMB50.8 million in the fourth quarter of 2020. Non-GAAP net loss margin was 31.0%, compared to a Non-GAAP net gain margin of 3.9% in the fourth quarter of 2020.
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB326.3 million (US$51.2 million) in the fourth quarter of 2021, compared to RMB78.7 million in the fourth quarter of 2020.
Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB301.8 million (US$47.4 million) in the fourth quarter of 2021, compared to RMB54.0 million in the fourth quarter of 2020.
Basic and diluted net loss per American Depositary Share (“ADS”) was RMB10.69 (US$1.68) in the fourth quarter of 2021. Non-GAAP basic and diluted net loss per ADS was RMB9.88 (US$1.55) in the fourth quarter of 2021.
Balance Sheet
As of December 31, 2021, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB658.9 million (US$103.4 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. As of December 31, 2021, the Company had a negative working capital. In addition, the convertible loan of the Company with principal amount of US$171.1 million (RMB1,109.3 million) had the original maturity date on April 4, 2022.
The Company is currently exploring a variety of measures to improve the Group’s liquidity and financial position, which include continuing efforts to optimize its user loyalty programs and traffic acquisition strategy to efficiently control and reduce costs and continuing to be selective in its content and better leverage its existing content varieties to attract and maintain users. These measures can in turn lead to savings in user related costs. The Company is also planning to preserve liquidity and manage cash flows by reducing expenditure on developing and maintaining smaller and novel applications and limiting other general and administrative expenses, to obtain additional external financing and funds through, including but not limited to, additional credit facilities obtained from banks in the normal course of business, potential additional issuances of equity and/or debt as a Group or through its subsidiaries, and sale of its assets, including the Group’s equity interest in its subsidiaries, to third parties.
The Company and the creditor entered into two supplemental agreements to the original convertible loan agreement on March 28, 2022 and April 29, 2022, respectively. According to the supplemental agreements, the original convertible loan has been extended to May 28, 2022. The total amount of principal and accumulated interest as of May 28, 2022 will be approximately RMB1.5 billion. The Company cannot assure that it will be able to further extend the maturity date of the convertible loan.
Facts and circumstances including accumulated and recurring losses from operations, net cash used in operating activities, negative working capital and uncertainties on the repayment of the convertible loan, raise substantial doubt about the Group’s ability to continue as a going concern. The fourth quarter and fiscal year 2021 unaudited financial information does not include any adjustment that is reflective of this uncertainty.
Fiscal Year 2021 Financial Results
Net revenues in the fiscal year of 2021 were RMB4,339.6 million (US$681.0 million), a decrease of 17.9% from RMB5,285.2 million in the fiscal year of 2020.
Advertising and marketing revenues were RMB4,090.4 million (US$641.9 million) in the fiscal year of 2021, a decrease of 19.0% from RMB5,046.8 million in the prior year, 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 RMB249.2 million (US$39.1 million) in the fiscal year of 2021, an increase of 4.6% from RMB238.4 million in the fiscal year of 2020.
Cost of revenues was RMB1,171.6 million (US$183.9 million) in the fiscal year of 2021, a decrease of 30.0% from RMB1,674.4 million in the fiscal year of 2020, primarily attributable to the decrease in bandwidth and IT infrastructure costs, integrated marketing service costs which are in line with the decrease in integrated marketing service revenues, salaries and benefits associated with content management personnel as well as live-streaming and online games revenue share. The decrease was partially offset by an increase in Midu content procurement costs.
Gross profit was RMB3,168.0 million (US$497.1 million) in the fiscal year of 2021, a decrease of 12.3% from RMB3,610.8 million in the prior year. Gross margin was 73.0%, compared to 68.3% in the fiscal year of 2020.
Research and development expenses were RMB551.6 million (US$86.6 million) in the fiscal year of 2021, a decrease of 41.8% from RMB947.9 million in the prior year, primarily due to the reduction in research and development headcount and sequentially a decrease in salaries as well as ESOP expenses.
Sales and marketing expenses were RMB3,483.8 million (US$546.9 million) in the fiscal year of 2021, a slight increase of 3.0% from RMB3,381.6 million in the fiscal year of 2020.
General and administrative expenses were RMB431.9 million (US$67.8 million) in the fiscal year of 2021, an increase of 10.0% from RMB392.8 million in the fiscal year of 2020, primarily due to an increase in additional expected credit loss provision recorded in 2021 under ASC 326, Measurement of Credit Losses on Financial Instruments, which was partially offset by decrease in salaries as well as other administrative expenses.
Loss from operations was RMB1,193.2 million (US$187.2 million), compared to RMB1,032.2 million in the fiscal year of 2020. Operating loss margin was 27.5%, compared to 19.5% in the fiscal year of 2020.
Non-GAAP loss from operations was RMB993.0 million (US$155.8 million), compared to RMB569.0 million in the fiscal year of 2020. Non-GAAP operating loss margin was 22.9%, compared to non-GAAP operating loss margin of 10.8% in the fiscal year of 2020.
Net loss was RMB1,240.2 million (US$194.6 million) in the fiscal year of 2021, compared to a net loss of RMB1,105.2 million in the fiscal year of 2020. Net loss margin was 28.6%, compared to 20.9% in the fiscal year of 2020.
Non-GAAP net loss was RMB1,040.0 million (US$163.2 million), compared to Non-GAAP net loss of RMB642.0 million in the fiscal year of 2020. Non-GAAP net loss margin was 24.0%, compared to 12.1% in the fiscal year of 2020.
Net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB1,348.5 million (US$211.6 million), compared to RMB1,137.9 million in the fiscal year of 2020. Non-GAAP net loss attributable to Qutoutiao Inc.’s ordinary shareholders was RMB1,148.3 million (US$180.2 million), compared to RMB674.7 million in the fiscal year of 2020.
Recent Development
Change to the Board of Directors
Mr. Lei Li resigned as Vice Chairman of the Board of Directors of the Company due to personal reasons. The resignation became effective on April 29, 2022. Following his resignation, the Board of the Company is now comprised of five members.
About Qutoutiao Inc.
Qutoutiao Inc. operates a mobile content platforms in China with a mission to bring fun and value to its users. The eponymous 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 users, many of whom are from lower-tier cities in China. They enjoy Qutoutiao’s fun and entertainment-oriented content as well as its social-based user loyalty program. Midu, first launched in May 2018 as Midu Novels and with an alternative version Midu Lite launched one year later, pioneered provision of free online literature supported by advertising. It has been one of the market leaders of the free online literature industry since inception. The Company will continue to bring more exciting products to users through innovation, and strive towards creating a leading global online content ecosystem.
For more information, please visit: https://ir.qutoutiao.net.
Use of Non-GAAP Financial Measures
We use non-GAAP 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 RMB6.3726 to US$1.00, the rate in effect as of December 31, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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 pandemic; 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 December 31, | |||||||
| 2020 | 2021 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 494,475 | 240,351 | ||||||
| Restricted cash | 100,316 | 75,482 | ||||||
| Short-term investments | 391,033 | 343,017 | ||||||
| Accounts receivable, net | 737,789 | 770,919 | ||||||
| Amount due from related parties | 383,594 | 259,863 | ||||||
| Prepayments and other current assets | 365,109 | 172,877 | ||||||
| Total current assets | 2,472,316 | 1,862,509 | ||||||
| Non-current assets: | ||||||||
| Accounts receivables, non-current | 54,639 | – | ||||||
| Long-term Investments | 82,889 | 1,416 | ||||||
| Property and equipment, net | 17,213 | 12,861 | ||||||
| Intangible assets | 83,123 | 165,270 | ||||||
| Goodwill | 7,268 | 7,268 | ||||||
| Right-of-use assets, net | 50,319 | 26,342 | ||||||
| Other non-current assets | 148,091 | 4,809 | ||||||
| Total non-current assets | 443,542 | 217,966 | ||||||
| Total assets | 2,915,858 | 2,080,475 | ||||||
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term borrowings | 70,000 | 20,000 | ||||||
| Accounts payable | 448,981 | 313,768 | ||||||
| Amount due to related parties | 22,477 | 6,928 | ||||||
| Registered users’ loyalty payable | 72,627 | 61,691 | ||||||
| Advance from customers and deferred revenue | 140,776 | 122,597 | ||||||
| Salary and welfare payable | 149,704 | 65,987 | ||||||
| Tax payable | 97,144 | 43,879 | ||||||
| Lease liabilities, current | 20,760 | 11,897 | ||||||
| Accrued liabilities related to users’ loyalty programs | 100,088 | 99,360 | ||||||
| Accrued liabilities and other current liabilities | 763,433 | 1,334,603 | ||||||
| Convertible loan – current | – | 1,182,963 | ||||||
| Total current liabilities | 1,885,990 | 3,263,673 | ||||||
| Lease liabilities, non-current | 23,756 | 15,985 | ||||||
| Convertible loan | 1,174,868 | – | ||||||
| Deferred tax liabilities | 18,825 | 16,422 | ||||||
| Other non-current liabilities | 4,256 | 1,733 | ||||||
| Non-current liabilities | 1,221,705 | 34,140 | ||||||
| Total liabilities | 3,107,695 | 3,297,813 | ||||||
| Total redeemable non-controlling interests | 1,093,526 | 1,172,218 | ||||||
| Shareholders’ deficit | ||||||||
| Ordinary shares | 47 | 50 | ||||||
| Treasury stock | (142,229 | ) | (142,229 | ) | ||||
| Additional paid-in capital | 4,784,315 | 4,979,353 | ||||||
| Accumulated other comprehensive income | 84,320 | 129,010 | ||||||
| Accumulated deficit | (6,007,227 | ) | (7,355,740 | ) | ||||
| Total Qutoutiao Inc. shareholders’ deficit | (1,280,774 | ) | (2,389,556 | ) | ||||
| Non-controlling interests | (4,589 | ) | – | |||||
| Total deficit | (1,285,363 | ) | (2,389,556 | ) | ||||
| Total liabilities, redeemable non-controlling interests and shareholders’ deficit | 2,915,858 | 2,080,475 | ||||||
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 fiscal year ended | |||||||||||||||||||
| December 31 | September 30 | December 31 | December 31 | December 31 | ||||||||||||||||
| 2020 | 2021 | 2021 | 2020 | 2021 | ||||||||||||||||
| Advertising and marketing revenues | 1,241,938 | 899,215 | 821,765 | 5,046,835 | 4,090,383 | |||||||||||||||
| Other revenues | 60,453 | 66,297 | 59,372 | 238,360 | 249,220 | |||||||||||||||
| Net revenues | 1,302,391 | 965,512 | 881,137 | 5,285,195 | 4,339,603 | |||||||||||||||
| Cost of revenues | (441,691 | ) | (267,268 | ) | (199,139 | ) | (1,674,416 | ) | (1,171,626 | ) | ||||||||||
| Gross profit | 860,700 | 698,244 | 681,998 | 3,610,779 | 3,167,977 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Research and development expenses | (199,688 | ) | (140,014 | ) | (88,741 | ) | (947,871 | ) | (551,612 | ) | ||||||||||
| Sales and marketing expenses | (680,261 | ) | (982,024 | ) | (795,992 | ) | (3,381,560 | ) | (3,483,773 | ) | ||||||||||
| General and administrative expenses | (94,389 | ) | (174,258 | ) | (62,603 | ) | (392,816 | ) | (431,913 | ) | ||||||||||
| Total operating expenses | (974,338 | ) | (1,296,296 | ) | (947,336 | ) | (4,722,247 | ) | (4,467,298 | ) | ||||||||||
| Other operating income | 23,545 | 23,883 | 17,569 | 79,299 | 106,098 | |||||||||||||||
| Loss from Operations | (90,092 | ) | (574,169 | ) | (247,769 | ) | (1,032,169 | ) | (1,193,223 | ) | ||||||||||
| Investment income/ (expenses), net | 19,990 | 705 | (35,856 | ) | (31,788 | ) | (36,041 | ) | ||||||||||||
| Interest expense, net | (9,452 | ) | (8,107 | ) | (8,327 | ) | (27,724 | ) | (32,303 | ) | ||||||||||
| Foreign exchange related gain/(loss), net | (1,571 | ) | (2 | ) | (328 | ) | (7,183 | ) | (1 | ) | ||||||||||
| Other income/(expense), net | (1,033 | ) | (918 | ) | (691 | ) | (7,310 | ) | 27,637 | |||||||||||
| Non-operating income / (loss) | 7,934 | (8,322 | ) | (45,202 | ) | (74,005 | ) | (40,708 | ) | |||||||||||
| Loss before provision for income taxes | (82,158 | ) | (582,491 | ) | (292,971 | ) | (1,106,174 | ) | (1,233,931 | ) | ||||||||||
| Income tax benefits/ (expense), net | 349 | (576 | ) | (2,994 | ) | 1,008 | (3,050 | ) | ||||||||||||
| Equity method loss of affiliate companies | – | (581 | ) | (2,037 | ) | – | (3,195 | ) | ||||||||||||
| Net loss | (81,809 | ) | (583,648 | ) | (298,002 | ) | (1,105,166 | ) | (1,240,176 | ) | ||||||||||
| Net loss attributable to non-controlling interests | 250 | 214 | – | 727 | 559 | |||||||||||||||
| Net loss attributable to Qutoutiao Inc. | (81,559 | ) | (583,434 | ) | (298,002 | ) | (1,104,439 | ) | (1,239,617 | ) | ||||||||||
| Accretion to convertible redeemable preferred shares redemption value of a subsidiary |
(11,942 | ) | (27,698 | ) | (28,323 | ) | (48,277 | ) | (108,896 | ) | ||||||||||
| Gains on repurchase of preferred shares | 14,842 | – | – | 14,842 | – | |||||||||||||||
| Net loss attributable to Qutoutiao Inc.’s ordinary shareholders |
(78,659 | ) | (611,132 | ) | (326,325 | ) | (1,137,874 | ) | (1,348,513 | ) | ||||||||||
| Net loss | (81,809 | ) | (583,648 | ) | (298,002 | ) | (1,105,166 | ) | (1,240,176 | ) | ||||||||||
| Other comprehensive income/(loss): | ||||||||||||||||||||
| Foreign currency translation adjustment, net of nil tax | 67,967 | (6,727 | ) | 32,330 | 102,254 | 44,690 | ||||||||||||||
| Total comprehensive loss | (13,841 | ) | (590,375 | ) | (265,672 | ) | (1,002,912 | ) | (1,195,486 | ) | ||||||||||
| Comprehensive loss attributable to non-controlling interests |
250 | 214 | – | 727 | 559 | |||||||||||||||
| Comprehensive loss attributable to Qutoutiao Inc. |
(13,591 | ) | (590,161 | ) | (265,672 | ) | (1,002,185 | ) | (1,194,927 | ) | ||||||||||
| Net loss per ADS: | ||||||||||||||||||||
| – Basic and diluted | (2.65 | ) | (20.10 | ) | (10.69 | ) | (39.23 | ) | (44.50 | ) | ||||||||||
| Weighted average number of ADS used in computing basic and diluted earnings per ADS(Note): |
||||||||||||||||||||
| – Basic | 29,704,591 | 30,404,904 | 30,538,755 | 29,005,230 | 30,307,013 | |||||||||||||||
| – Diluted | 29,704,591 | 30,404,904 | 30,538,755 | 29,005,230 | 30,307,013 | |||||||||||||||
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 fiscal year ended | |||||||||||||||||||
| December 31 | September 30 | December 31 | December 31 | December 31 | ||||||||||||||||
| 2020 | 2021 | 2021 | 2020 | 2021 | ||||||||||||||||
| Loss from Operations | (90,092 | ) | (574,169 | ) | (247,769 | ) | (1,032,169 | ) | (1,193,223 | ) | ||||||||||
| Add: Share-based compensation expenses | ||||||||||||||||||||
| Cost of revenues | 1,982 | 170 | 21 | 12,905 | 1,187 | |||||||||||||||
| General and administrative | 44,714 | 12,822 | 7,115 | 159,320 | 64,039 | |||||||||||||||
| Sales and marketing | 39,252 | 23,230 | 6,582 | 86,656 | 32,122 | |||||||||||||||
| Research and development | 46,669 | 22,280 | 10,789 | 204,333 | 102,838 | |||||||||||||||
| Non-GAAP Income/(Loss) from Operations | 42,525 | (515,667 | ) | (223,262 | ) | (568,955 | ) | (993,038 | ) | |||||||||||
| Net loss | (81,809 | ) | (583,648 | ) | (298,002 | ) | (1,105,166 | ) | (1,240,176 | ) | ||||||||||
| Add: Share-based compensation expenses | ||||||||||||||||||||
| Cost of revenues | 1,982 | 170 | 21 | 12,905 | 1,187 | |||||||||||||||
| General and administrative | 44,714 | 12,822 | 7,115 | 159,320 | 64,039 | |||||||||||||||
| Sales and marketing | 39,252 | 23,230 | 6,582 | 86,656 | 32,122 | |||||||||||||||
| Research and development | 46,669 | 22,280 | 10,789 | 204,333 | 102,838 | |||||||||||||||
| Non-GAAP net income/(loss) | 50,808 | (525,146 | ) | (273,495 | ) | (641,952 | ) | (1,039,990 | ) | |||||||||||
| Net loss attributable to Qutoutiao Inc. | (81,559 | ) | (583,434 | ) | (298,002 | ) | (1,104,439 | ) | (1,239,617 | ) | ||||||||||
| Add: Share-based compensation expenses | ||||||||||||||||||||
| Cost of revenues | 1,982 | 170 | 21 | 12,905 | 1,187 | |||||||||||||||
| General and administrative | 44,714 | 12,822 | 7,115 | 159,320 | 64,039 | |||||||||||||||
| Sales and marketing | 39,252 | 23,230 | 6,582 | 86,656 | 32,122 | |||||||||||||||
| Research and development | 46,669 | 22,280 | 10,789 | 204,333 | 102,838 | |||||||||||||||
| Non-GAAP net income/(loss) attributable to Qutoutiao Inc. |
51,058 | (524,932 | ) | (273,495 | ) | (641,225 | ) | (1,039,431 | ) | |||||||||||
| Net loss attributable to Qutoutiao Inc.’s ordinary shareholders |
(78,659 | ) | (611,132 | ) | (326,325 | ) | (1,137,874 | ) | (1,348,513 | ) | ||||||||||
| Add: Share-based compensation expenses | ||||||||||||||||||||
| Cost of revenues | 1,982 | 170 | 21 | 12,905 | 1,187 | |||||||||||||||
| General and administrative | 44,714 | 12,822 | 7,115 | 159,320 | 64,039 | |||||||||||||||
| Sales and marketing | 39,252 | 23,230 | 6,582 | 86,656 | 32,122 | |||||||||||||||
| Research and development | 46,669 | 22,280 | 10,789 | 204,333 | 102,838 | |||||||||||||||
| Non-GAAP net income/(loss) attributable to Qutoutiao Inc.’s ordinary shareholders |
53,958 | (552,630 | ) | (301,818 | ) | (674,660 | ) | (1,148,327 | ) | |||||||||||
| Non-GAAP net income/(loss) per ADS: | ||||||||||||||||||||
| — Basic | 1.82 | (18.18 | ) | (9.88 | ) | (23.26 | ) | (37.89 | ) | |||||||||||
| — Diluted | 1.79 | (18.18 | ) | (9.88 | ) | (23.26 | ) | (37.89 | ) | |||||||||||
| Weighted average number of ADS used in computing basic and diluted earnings per ADS (Note) |
||||||||||||||||||||
| — Basic | 29,704,591 | 30,404,904 | 30,538,755 | 29,005,230 | 30,307,013 | |||||||||||||||
| — Diluted | 30,065,951 | 30,404,904 | 30,538,755 | 29,005,230 | 30,307,013 | |||||||||||||||
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 | ||||||||||||||||||||
| December 31 | March 31 | June 30 | September 30 | December 31 | ||||||||||||||||
| 2020 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Net revenues | 1,302.4 | 1,291.0 | 1,202.0 | 965.5 | 881.1 | |||||||||||||||
| User engagement expenses | 163.2 | 179.1 | 169.5 | 161.8 | 156.5 | |||||||||||||||
| User acquisition expenses | 397.1 | 588.7 | 685.2 | 757.3 | 599.8 | |||||||||||||||
| Other sales and marketing expenses | 119.9 | 35.2 | 48.1 | 62.9 | 39.7 | |||||||||||||||
| Total sales and marketing expenses | 680.3 | 803.0 | 902.8 | 982.0 | 796.0 | |||||||||||||||
| Combined Average MAUs (in millions) | 124.7 | 133.3 | 132.3 | 118.5 | 97.6 | |||||||||||||||
| Combined Average DAUs (in millions) | 32.3 | 31.7 | 29.1 | 26.5 | 25.0 | |||||||||||||||
| New installed users (in millions) | 50.3 | 101.8 | 94.0 | 103.8 | 72.6 | |||||||||||||||
| Average net revenues per DAU per day (RMB) | 0.44 | 0.45 | 0.46 | 0.41 | 0.39 | |||||||||||||||
| User engagement expenses per DAU per day (RMB) |
0.05 | 0.06 | 0.06 | 0.07 | 0.07 | |||||||||||||||
| User acquisition expenses per new installed user (RMB) |
7.89 | 5.78 | 7.29 | 7.30 | 8.26 | |||||||||||||||
____________________________
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.
Artificial Intelligence
Terra Drone, Unifly, and Aloft Launch UTM Development for AAM Targeting Global Markets
TOKYO, April 25, 2024 /PRNewswire/ — Terra Drone Corporation, a leading drone and Advanced Air Mobility (AAM) technology provider headquartered in Japan, announced today the launch of joint development with its Group companies Unifly NV (“Unifly”) and Aloft Technologies Inc. (“Aloft”) focused on UAS Traffic Management (UTM) for AAMs targeting global markets. Terra Drone has been making strides in its pioneering UTM business via strategic investments in Unifly, a leading UTM technology provider based in Belgium, and Aloft, which has the top UTM market share in the U.S. This collaboration marks the world’s first-ever joint UTM development for AAMs by multiple companies with extensive track records in UTM implementation and operation.
The three companies pursue joint UTM development to capitalize on the rapid global progress in electric vertical take-off and landing aircrafts (eVTOLs), set to revolutionize transportation. Morgan Stanley forecasts the Urban Air Mobility (UAM) market to reach $1 trillion by 2040 and $9 trillion by 2050 (1), with eVTOLs gaining global recognition through test flights and prototype showcases.
The companies proudly announce initiatives to enhance their existing UTM platforms in anticipation of the surge in eVTOL aircraft and drone activities. The shared vision for the UTM platform is to enable safe and efficient flight operations for eVTOLs and drones in the foreseeable future.
Recognizing the evolving needs of the AAM industry, they are dedicated to extending their platform by incorporating crucial additional functions. These enhancements, designed with automation at their core, aim to streamline operational efficiencies and pave the way for the integration of their increasingly automated UTM technology into the design and operational framework of AAMs. Through these efforts, they aim to set new standards in UTM and to facilitate the seamless integration of eVTOLs and drones into the national airspace, bolstering the potential for the AAM industry.
Through this initiative, they aim to build a global UTM infrastructure that kickstarts the AAM industry worldwide, creating a cohesive ecosystem that supports AAM growth and addresses broader challenges of urban mobility, sustainability, and air traffic safety.
Notes to Editor:
Research by Morgan Stanley in a report titled “eVTOL/Urban Air Mobility TAM Update: A Slow Take-Off, But Sky’s the Limit” https://advisor.morganstanley.com/the-busot-group/documents/field/b/bu/busot-group/Electric%20Vehicles.pdf]
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Artificial Intelligence
IBM to Acquire HashiCorp, Inc. Creating a Comprehensive End-to-End Hybrid Cloud Platform
$6.4 billion acquisition adds suite of leading hybrid and multi-cloud lifecycle management products to help clients grappling with today’s AI-driven application growth and complexity
HashiCorp’s capabilities to drive significant synergies across multiple strategic growth areas for IBM, including Red Hat, watsonx, data security, IT automation and Consulting
As a part of IBM, HashiCorp is expected to accelerate innovation and enhance its go-to-market, growth and monetization initiatives
Transaction expected to be accretive to Adjusted EBITDA within the first full year, post close, and free cash flow in year two
ARMONK, N.Y. and SAN FRANCISCO, April 24, 2024 /PRNewswire/ — IBM (NYSE: IBM) and HashiCorp Inc. (NASDAQ: HCP), a leading multi-cloud infrastructure automation company, today announced they have entered into a definitive agreement under which IBM will acquire HashiCorp for $35 per share in cash, representing an enterprise value of $6.4 billion. HashiCorp’s suite of products provides enterprises with extensive Infrastructure Lifecycle Management and Security Lifecycle Management capabilities to enable organizations to automate their hybrid and multi-cloud environments. Today’s announcement is a continuation of IBM’s deep focus and investment in hybrid cloud and AI, the two most transformational technologies for clients today.
“Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments. The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies,” said Arvind Krishna, IBM chairman and chief executive officer. “HashiCorp has a proven track record of enabling clients to manage the complexity of today’s infrastructure and application sprawl. Combining IBM’s portfolio and expertise with HashiCorp’s capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era.”
The rise of cloud-native workloads and associated applications is driving a radical expansion in the number of cloud workloads enterprises are managing. In addition, generative AI deployment continues to grow alongside traditional workloads. As a result, developers are working with increasingly heterogeneous, dynamic, and complex infrastructure strategies. This represents a massive challenge for technology professionals.
HashiCorp’s capabilities enable enterprises to use automation to deliver lifecycle management for infrastructure and security, providing a system of record for the critical workflows needed for hybrid and multi-cloud environments. HashiCorp’s Terraform is the industry standard for infrastructure provisioning in these environments. HashiCorp’s offerings help clients take a cloud-agnostic, and highly interoperable approach to multi-cloud management, and complement IBM’s commitment to industry collaboration (including deep and expanding partnerships with hyperscale cloud service providers), developer communities, and open-source hybrid cloud and AI innovation.
“Our strategy at its core is about enabling companies to innovate in the cloud, while providing a consistent approach to managing cloud at scale. The need for effective management and automation is critical with the rise of multi-cloud and hybrid cloud, which is being accelerated by today’s AI revolution,” said Armon Dadgar, HashiCorp co-founder and chief technology officer. “I’m incredibly excited by today’s news and to be joining IBM to accelerate HashiCorp’s mission and expand access to our products to an even broader set of developers and enterprises.”
“Today is an exciting day for our dedicated teams across the world as well as the developer communities we serve,” said Dave McJannet, HashiCorp chief executive officer. “IBM’s leadership in hybrid cloud along with its rich history of innovation, make it the ideal home for HashiCorp as we enter the next phase of our growth journey. I’m proud of the work we’ve done as a standalone company, I am excited to be able to help our customers further, and I look forward to the future of HashiCorp as part of IBM.”
Transaction Rationale
Strong Strategic Fit – The acquisition of HashiCorp by IBM creates a comprehensive end-to-end hybrid cloud platform built for AI-driven complexity. The combination of each company’s portfolio and talent will deliver clients extensive application, infrastructure and security lifecycle management capabilitiesAccelerates growth in key focus areas – Upon close, HashiCorp is expected to drive significant synergies for IBM, including across multiple strategic growth areas like Red Hat, watsonx, data security, IT automation and Consulting. For example, the powerful combination of Red Hat’s Ansible Automation Platform’s configuration management and Terraform’s automation will simplify provisioning and configuration of applications across hybrid cloud environments. The two companies also anticipate an acceleration of HashiCorp’s growth initiatives by leveraging IBM’s world-class go-to-market strategy, scale, and reach, operating in more than 175 countries across the globeExpands Total Addressable Market (TAM) – The acquisition will create the opportunity to deliver more comprehensive hybrid and multi-cloud offerings to enterprise clients. HashiCorp’s offerings, combined with IBM and Red Hat, will give clients a platform to automate the deployment and orchestration of workloads across evolving infrastructure including hyperscale cloud service providers, private clouds and on-prem environments. This will enhance IBM’s ability to address the total cloud opportunity, which according to IDC had a TAM of $1.1 trillion in 2023, with a compound annual growth rate in the high teens through 2027.1Attractive Financial Opportunity – The transaction will accelerate IBM’s growth profile over time driven by go-to-market and product synergies. This growth combined with operating efficiencies, is expected to achieve substantial near-term margin expansion for the acquired business. It is anticipated that the transaction will be accretive to Adjusted EBITDA within the first full year, post close, and free cash flow in year two.HashiCorp boasts a roster of more than 4,400 clients, including Bloomberg, Comcast, Deutsche Bank, GitHub, J.P Morgan Chase, Starbucks and Vodafone. HashiCorp’s offerings have widescale adoption in the developer community and are used by 85% of the Fortune 500. Their community products across infrastructure and security were downloaded more than 500 million times in HashiCorp’s FY2024 and include:
Terraform – provides organizations with a single workflow to provision their cloud, private datacenter, and SaaS infrastructure and continuously manage infrastructure throughout its lifecycleVault – provides organizations with identity-based security to automatically authenticate and authorize access to secrets and other sensitive dataAdditional products – Boundary for secure remote access; Consul for service-based networking; Nomad for workload orchestration; Packer for building and managing images as code; and Waypoint internal developer platformTransaction Details
Under the terms of the agreement, IBM will acquire HashiCorp for $35 per share in cash, or $6.4 billion enterprise value, net of cash. HashiCorp will be acquired with available cash on hand.
The boards of directors of IBM and HashiCorp have both approved the transaction. The acquisition is subject to approval by HashiCorp shareholders, regulatory approvals and other customary closing conditions.
The Company’s largest shareholders and investors, who collectively hold approximately 43% of the voting power of HashiCorp’s outstanding common stock, entered into a voting agreement with IBM pursuant to which each has agreed to vote all of their common shares in favor of the transaction and against any alternative transactions.
The transaction is expected to close by the end of 2024.
____________________1 The total cloud opportunity is the sum of the cloud-directed spends across Hardware, IT services and SW for Private and Public cloud implementation, sourced from IDC’s Worldwide Black Book Live Edition, March 2024 (V1 2024)
Conference Call Details
IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed here. Presentation charts will be available shortly before the Webcast.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
About HashiCorp
HashiCorp is The Infrastructure Cloud™ company, helping organizations automate multi-cloud and hybrid environments with Infrastructure Lifecycle Management and Security Lifecycle Management. HashiCorp offers The Infrastructure Cloud on the HashiCorp Cloud Platform (HCP) for managed cloud services, as well as self-hosted enterprise offerings and community source-available products. The company is headquartered in San Francisco, California. For more information, visit HashiCorp.com.
Press Contacts:
IBM:Tim Davidson, [email protected]
HashiCorp:Matthew Sherman / Jed Repko / Haley Salas / Joycelyn BarnettJoele Frank, Wilkinson Brimmer Katcher212-355-4449
Additional Information and Where to Find It
HashiCorp, Inc. (“HashiCorp”), the members of HashiCorp’s board of directors and certain of HashiCorp’s executive officers are participants in the solicitation of proxies from stockholders in connection with the pending acquisition of HashiCorp (the “Transaction”). HashiCorp plans to file a proxy statement (the “Transaction Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies to approve the Transaction. David McJannet, Armon Dadgar, Susan St. Ledger, Todd Ford, David Henshall, Glenn Solomon and Sigal Zarmi, all of whom are members of HashiCorp’s board of directors, and Navam Welihinda, HashiCorp’s chief financial officer, are participants in HashiCorp’s solicitation. Information regarding such participants, including their direct or indirect interests, by security holdings or otherwise, will be included in the Transaction Proxy Statement and other relevant documents to be filed with the SEC in connection with the Transaction. Additional information about such participants is available under the captions “Board of Directors and Corporate Governance,” “Executive Officers” and “Security Ownership of Certain Beneficial Owners and Management” in HashiCorp’s definitive proxy statement in connection with its 2023 Annual Meeting of Stockholders (the “2023 Proxy Statement”), which was filed with the SEC on May 17, 2023 (and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1720671/000114036123025250/ny20008192x1_def14a.htm). To the extent that holdings of HashiCorp’s securities have changed since the amounts printed in the 2023 Proxy Statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC (which are available at https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001720671&type=&dateb=&owner=only&count=40&search_text=). Information regarding HashiCorp’s transactions with related persons is set forth under the caption “Related Person Transactions” in the 2023 Proxy Statement. Certain illustrative information regarding the payments to that may be owed, and the circumstances in which they may be owed, to HashiCorp’s named executive officers in a change of control of HashiCorp is set forth under the caption “Executive Compensation—Potential Payments upon Termination or Change in Control” in the 2023 Proxy Statement. With respect to Ms. St. Ledger, certain of such illustrative information is contained in the Current Report on Form 8-K filed with the SEC on June 7, 2023 (and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1720671/000162828023021270/hcp-20230607.htm). Promptly after filing the definitive Transaction Proxy Statement with the SEC, HashiCorp will mail the definitive Transaction Proxy Statement and a WHITE proxy card to each stockholder entitled to vote at the special meeting to consider the Transaction. STOCKHOLDERS ARE URGED TO READ THE TRANSACTION PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT HASHICORP WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, the preliminary and definitive versions of the Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by HashiCorp with the SEC in connection with the Transaction at the SEC’s website (http://www.sec.gov). Copies of HashiCorp’s definitive Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by HashiCorp with the SEC in connection with the Transaction will also be available, free of charge, at HashiCorp’s investor relations website (https://ir.hashicorp.com/), or by emailing HashiCorp’s investor relations department ([email protected]).
Forward-Looking Statements
Certain statements contained in this communication may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially.
Statements in this communication regarding IBM and HashiCorp that are forward-looking may include statements regarding: (i) the Transaction; (ii) the expected timing of the closing of the Transaction; (iii) considerations taken into account in approving and entering into the Transaction; (iv) the anticipated benefits to, or impact of, the Transaction on IBM’s and HashiCorp’s businesses; and (v) expectations for IBM and HashiCorp following the closing of the Transaction. There can be no assurance that the Transaction will be consummated.
Risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, in addition to those identified above, include: (i) the possibility that the conditions to the closing of the Transaction are not satisfied, including the risk that required approvals from HashiCorp’s stockholders for the Transaction or required regulatory approvals to consummate the Transaction are not obtained, on a timely basis or at all; (ii) the occurrence of any event, change or other circumstance that could give rise to a right to terminate the Transaction, including in circumstances requiring HashiCorp to pay a termination fee; (iii) possible disruption related to the Transaction to IBM’s and HashiCorp’s current plans, operations and business relationships, including through the loss of customers and employees; (iv) the amount of the costs, fees, expenses and other charges incurred by IBM and HashiCorp related to the Transaction; (v) the risk that IBM’s or HashiCorp’s stock price may fluctuate during the pendency of the Transaction and may decline if the Transaction is not completed; (vi) the diversion of IBM and HashiCorp management’s time and attention from ongoing business operations and opportunities; (vii) the response of competitors and other market participants to the Transaction; (viii) potential litigation relating to the Transaction; (ix) uncertainty as to timing of completion of the Transaction and the ability of each party to consummate the Transaction; and (x) other risks and uncertainties detailed in the periodic reports that IBM and HashiCorp filed with the SEC, including IBM’s and HashiCorp’s respective Annual Reports on Form 10-K. All forward-looking statements in this communication are based on information available to IBM and HashiCorp as of the date of this communication, and, except as required by law, IBM and HashiCorp do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
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Artificial Intelligence
Businessabc.net, part of Ztudium group partners with IEBF to offer GenerativeAI tools for SMEs, Adds Dilip Pungliya to Leadership
LONDON and NEW DELHI, April 24, 2024 /PRNewswire/ — Businessabc.net part of ztudium group partners with Indo-European Business Forum IEBF and signed an MOU to collaborate in building tech AI-powered tools and trade corridors and technological solutions for businesses in India, UK, and Europe.
Businessabc.net is a global business abc AI, digital certification search engine, and directory marketplace that offers a fresh approach to business insights, and analytics and makes it accessible to every company, and employee, empowering knowledge-sharing and strategic insights across every level for businesses worldwide. Businessabc offers a digital hub marketplace to empower SMEs and businesses of all types with B2B, B2C, and AI-powered tools, that give them access to strategies, and insights and connect them with chambers of commerce, trade corridors, digital supply chains, provenance tools, and multi-store e-commerce solutions. The Indo-European Business Forum – IEBF is an independent, impartial organisation promoting two-way flows of trade, and investment in India, the UK, and EU member countries.
Businessabc.net owned by ztudium announces this strategic partnership with the IEBF and announces Dilip Pungliya as a new partner and Board Member to lead these endeavours. In this role, Mr. Pungliya, a tech, business, and data scientist executive will bring his extensive expertise in business strategy and digital transformation to lead key initiatives within the organisation.
The growth of Generative AI among Small and Medium Enterprises (SMEs) worldwide has been steadily gaining momentum, and in India, the UK, and Europe a burgeoning tech ecosystem is growing awareness of the transformative potential of artificial intelligence.
IEBF and Businessabc.net join forces to expand the platform with new indexes powered by Generative AI to enhance efficiency, streamline operations, and give companies a competitive edge in the market. Factors such as the availability of cost-effective AI solutions, the skilled workforce, and a global need to push towards digitalisation have contributed to the adoption of Generative AI technologies. GenAI tools and tech solutions are critical to unlocking new value for businesses and becoming the most important tools for organisations of all sizes. AI revolution through platforms such as businessabc.net semantic and GenAI search, indexes, and chatbots, can solve business problems and offer leaders integrated solutions for their growth.
IEBF has been collaborating with Governments in India, UK, and Europe,. Their contribution includes events in the UK House of Lords, Indian governmental organisations, and research and education initiatives for businesses. Created by Mr. Vijay Goel and Mr. Sunil Kumar Gupta the founders, responsibles for the organisation said about this: “We are excited to work and enhance business solutions between IEBF and Businessabc.net, part of Ztudium group. All businesses need to be aware, educated, and prepared for this new AI and digital growth tools world. Data from India’s Ministry of Electronics and Information Technology (MeitY) reports that GenAI is expected to add USD 450–500 billion to India’s GDP by 2025 – 10% of the country’s USD 5 trillion GDP target. We expect to work together to empower businesses in India, the UK, and Europe joining forces with Businessabc.net to organise strategic trade corridors, events, and Indexes.”
Dinis Guarda, Founder of Ztudium / Businessabc.net, a business top thought leader, author, and Youtuber said about the partnership: “We are thrilled to work with IEBF to expand the businessabc.net solutions to India, UK, and Europe businesses and welcome Dilip Punglyia to support, lead this partnership and Ztudium group. Together we will offer cutting-edge simple tools that use genAI in business and finance. In the financial sector alone GenAI is expected to increase global gross domestic product (GDP) by 7%—nearly $7 trillion—and boost productivity growth by 1.5%, according to Goldman Sachs Research.”
Dilip Pungliya, a seasoned tech, digital, and business strategy leader with more than twenty five years of experience creating data-driven solutions will be at the forefront of this partnership. Mr. Dilip Pungliya said about this: “I’m thrilled to join businessabc.net and Ztudium leadership team and contribute to the growth of the partnership with the IEBF and its holistic company’s mission of driving innovation and digital transformation through cutting-edge technologies like AI, fintech, Web 3.0, Metaverse, and Blockchain. This partnership will allow us to create a digital ID, new AI data-driven generative tools, and scale growth for businesses in India, UK, and Europe, and Dilip’s wealth of experience and strategic vision will be invaluable as we continue to drive innovation and empower businesses with transformative technologies.”
About the Indo-European Business Forum
IEBF is an independent, impartial body actively promoting two-way flows of trade, and investment in India and EU member countries. Indo European Business Forum is an open forum comprising like-minded people who believe that “India can offer strong and sustained business opportunities for European Union countries”. IEBF is patronised by leading personalities from both India and the EU having excellence in the fields of business, finance, real estate, and art, to name a few. Our advisory board consists of people who are determined to create a progressive world.
About the Businessabc.net,
Founded in August 2011 by Dinis Guarda, who was joined by Sonesh Sira as board and partner some years after businessabc.net part of Ztudium group has been creating Digital Transformation, and AI tools and being recognised as one of the top global thought leaders organisations by organisations like Thinkers360.com. The company has been working and advising Fortune 500 companies and governments and offers technology products and platforms. Some of its offers are citiesabc.com, fashionsabc.com, sportsabc.org. It also manages a media division with intelligenthq.com, tradersdna.com, hedgethink.com, and services that integrate a wide range of 4IR, AI, 3D, web 3.0, and blockchain technologies solutions such as Metaverseabc. tech, MStores.shopping, iDNA.technology, and AI.DNA. The platform unveiled recently its Top 10,000 Public Companies Market Cap Index, which lists tech giants like Apple, Microsoft, Google, Alphabet, Nvidia, and Meta, and LVMH, IBM, and JPMorgan Chase & Co., from other industries at the top.
About Ztudium: The maker of 4IR, AI, Web 3.0, and Smart Cities technologies
Ztudium is a UK-based global maker of leading proprietary intellectual property and technologies that integrate Fourth Industrial Revolution (4IR) technologies. The company creates technology products, platforms, media, and services that integrate fintech, smart cities, Web 3.0, AI, Metaverse, and Blockchain. Ztudium collaborates with multiple governments, organisations, educational institutions, and business networks worldwide.
For media inquiries, please contact:
Media Contact Name: Manan KothariEmail Address: [email protected] Number: +44 7833881659
Company Name: Businessabc / ZtudiumCompany Address: 85, Great portland street, London W1W7LTWebsite URL: www.businessabc.net, www.ztudium.com
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