Aurora Mobile Ltd – ADR (NASDAQ:JG) topline falls

By Swapna Meka September 16, 2022, 4:44 pm • Posted in Companies, Stocks

Aurora Mobile Ltd – ADR (NASDAQ:JG), a leading provider of customer engagement and marketing technology services in China, stock fell 2.96% (As on September 16, 11:17:58 AM UTC-4, Source: Google Finance) after the company reported 14 percent fall in the adjusted revenue to RMB76.1 million in the second quarter of FY 22, beating the analysts’ estimates for revenue of RMB86.63 million. Net loss attributable to Aurora Mobile Limited’s shareholders was RMB23.4 million (US$3.5 million), compared with a net loss attributable to Aurora Mobile Limited’s shareholders of RMB29.3 million for the same quarter last year. Adjusted net loss (non-GAAP) was RMB16.9 million (US$2.5 million), compared with a RMB23.6 million adjusted net loss for the same quarter last year. Adjusted EBITDA (non-GAAP) was a negative RMB8.0 million (US$1.2 million), compared with a negative RMB13.3 million for the same quarter last year. Gross profit was RMB53.5 million (US$8.0 million), a decrease of 21% from RMB67.4 million in the same quarter of last year. The cash and cash equivalents, restricted cash and short-term investments were RMB112.0 million (US$16.7 million) as of June 30, 2022 compared with RMB284.6 million as of December 31, 2021. The decrease was primarily due to the short-term bank loan of RMB150.0 million was fully repaid in April 2022. As of June 30, 2022, the total deferred revenue balance was at the historical high of RMB137.7 million. AR turnover days has remained stable at 46 days this quarter compared to 46 days last quarter. Operating expenses decreased by an impressive 17% year-over-year to RMB87.7 million and that is the lowest operating expense since Q1’2019.

Based on the current information, the company anticipates that the Developer Services – Subscription Services revenue for Q3’2022 to achieve close to double digit growth both quarter-over-quarter and year-over-year. For Vertical Applications revenue, the company is also expecting solid quarter over quarter growth. For Value-added Services, which we have mentioned earlier, the overall market will take time to stabilize before the revenue can return to the historical level. With the anticipated growth in revenue and conscious cost spending, barring any unforeseen events, we are looking to achieve a break-even Adjusted EBITDA balance for Q4’2022.