Aurora Mobile Ltd – ADR (NASDAQ:JG), a leading provider of customer engagement and marketing technology services in China, stock fell 1.22% (As on June 16, 11:18:07 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 23. Developer Services revenues decreased by 24% year-over-year, mainly due to the weakness in Value-added-services, offset by the growth in Subscription Services. Subscription Services revenues were RMB37.5 million, up 9% year-over-year mainly fueled by increasing ARPU. Subscription Services as the core business include JPUSH, Analytics, UMS and other products and despite the external uncertain macro environment, we signed up many well-known clients. Going into Q2’2023, the company expects some major recovery in Subscription Services, and the company hopes to see double-digit growth on a quarter-over-quarter basis. Value-added-services revenues were RMB8.0 million, decreased by 69% year-over-year which was a result of weak advertising demand. The company believes Ad related revenue will continue to be impacted by the uncertain and volatile macroeconomic environment.

JG in the first quarter of FY 23 has reported the adjusted earnings per share of ¥-0.030, beating the analysts’ estimates for the adjusted earnings per share of ¥-0.210. The company had reported 23 percent fall in the adjusted revenue to ¥9.53M in the first quarter of FY 23, missing the analysts’ estimates for revenue of ¥81.47M. Adjusted net loss (non-GAAP) was RMB11.5 million (US$1.7 million), compared with RMB17.7 million in the same quarter of last year. The cash and cash equivalents, and restricted cash were RMB88.4 million (US$12.9 million) as of March 31, 2023 compared with RMB116.3 million as of December 31, 2022.

Meanwhile, the company has seen strong growth potential and interest in the EngageLab platform that the company launched during Q4 last year. The company has implemented various improvements to all the products under EngageLab. Recently, EngageLab has established a reliable network of data centers in multiple regions around the world to ensure that customers can choose the storage location that best suits their business needs. These data centers meet the highest security standards and have passed a rigorous certification and audit process. In addition to Singapore, EngageLab has now added more data center options for overseas customers to deploy the push notification products AppPush and WebPush. These include China-Hong Kong, Germany-Frankfurt, USA-California, Japan-Tokyo, South Korea-Seoul, UAE-Dubai, Brazil-Sao Paulo and Australia-Sydney. Customers can select an appropriate data center to store data for an application based on comprehensive considerations such as the location of their end users and regulations.