CooTek (Cayman) Inc. (NYSE: CTK) stock surged 27.81% on January 10th, 2019 as Credit Suisse AG has acquired a new stake in CooTek (Cayman) Inc. during the 3rd quarter, according to the company in its most recent filing with the SEC. The stock slightly corrected over 2.8% on January 11th, 2019 post the rally (as of 10:52 am GMT-5 ; Source: Google finance)
CTK, the developer of the popular pedometer app, Step Tracker, has introduced a new Daily 5,000 Steps Competition program into the app. With the integration of Daily 5,000 Steps Competition, Step Tracker is now an all-in-one platform where users can receive fitness-related content, interact with friends, and achieve personal fitness goals. The Daily 5,000 Steps Competition allows users to not only challenge themselves to walk 5,000 steps every day, but also compete with other users around the world to earn bonuses. The bonuses can be used to redeem rewards or purchase Step Tracker’s premium services. CooTek will add personalized health reports and professional fitness classes to Step Tracker’s premium services in the near future. Step Tracker provides free stretching exercises to warm-up, help prevent injuries and cramps, and run more efficiently.
Meanwhile, Net revenue for the third quarter was US$36.8 million，an increase of 30% from US$28.4million last quarter and 300% from US$9.2 million during the third quarter of 2017. The increases were primarily due to the increase in the mobile advertising revenues. Mobile advertising revenue was US$36.3million, an increase of 31% from US$27.6 million last quarter and 320% from US$8.7 million during the third quarter of 2017. The increases were primarily due to the rapid growth of DAUs of portfolio products. It is estimated that, of the total advertising revenue for the third quarter of 2018, the portfolio products contributed approximately 67%, TouchPal Smart Input contributed approximately 18% and TouchPal Phonebook contributed approximately 15%.
Adjusted net income was US$3.5 million, an increase of 25.6% from US$2.8 million last quarter and an increase of US$8.4 million from adjusted net loss of USD4.9 million in the same period last year. As of September 30, 2018, Cash and cash equivalents was US$29.4 million compared to US$26.7 million as of December 31, 2017. Net cash inflow from operating activities during the third quarter of 2018 was US$5.3 million, compared to outflow from operations of US$7.0 million for the corresponding period in 2017.
For the fourth quarter of 2018, CooTek expects total revenue to be between US$46 million and US$47 million, representing a 141.7 % to 146.9% increase year-on-year.