SHANGHAI, March 25, 2021 /PRNewswire/ -- CooTek (Cayman)
Inc. (NYSE: CTK) ("CooTek" or the "Company"), a fast-growing global
mobile internet company, today reported unaudited financial results
for the fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 Highlights
- Net revenue was US$102.4 million,
an increase of 48% from US$69.0
million during the same period last year.
- Gross profit was US$95.4 million,
an increase of 46% from US$65.1
million during the same period last year.
- Gross profit margin was 93.1%, compared with 94.4% during the
same period last year.
- Net loss was US$18.8 million,
compared with net loss US$6.6 million
during the same period last year.
- Adjusted net loss[1] (Non-GAAP) was US$17.3 million, compared with adjusted net loss
(Non-GAAP) of US$6.2 million during
the same period last year.
- The Company's Portfolio Products[2] contributed approximately
99% of total revenues, with a focus on three main categories:
online literature, scenario-based content apps, and casual
games.
Full Year 2020 Highlights
- Net revenue was US$441.5 million,
an increase of 148% from US$177.9
million in 2019.
- Gross profit was US$417.4
million, an increase of 157% from US$162.6 million in 2019.
- Gross profit margin was 94.5%, compared with 91.4% in
2019.
- Net loss was US$47.4 million,
compared with net loss of US$36.8
million last year.
- Adjusted net loss (Non-GAAP) was US$42.0
million, compared with adjusted net loss (Non-GAAP) of
US$33.2 million in 2019.
December 2020 Operational
Highlights
- Average daily active users ("DAUs") of the Company's portfolio
products were 27.8 million, an increase of 13% from 24.7 million in
December 2019. Monthly active users
("MAUs") of the Company's portfolio products were 85.8 million, an
increase of 15% from 74.6 million in December 2019.
- Average DAUs of the Company's online literature products were
10.2 million, increased significantly from 4.8 million in
December 2019. MAUs of the Company's
online literature products were 29.5 million, increased
significantly from 19.3 million in December
2019. The average daily reading time[3] of the key product
Fengdu Novel's users was approximately 130 minutes in December 2020, which was stable compared with 130
minutes in September 2020.
- Average DAUs of the Company's TouchPal Smart Input were 125.3
million. MAUs of the Company's TouchPal Smart Input were 162.8
million.
[1] "Adjusted
net income (loss)" (Non-GAAP) is a non-GAAP measure, which is
defined as net income (loss) excluding share-based compensation
related to share options and restricted share units. For further
information, please see "Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" at the bottom of
this release.
|
[2] "Portfolio
Products" is to the mobile applications that we develop and provide
to our users and business partners, which exclude TouchPal Smart
Input and TouchPal Phonebook.
|
"We are pleased to conclude the year of 2020 with our revenue
reaching US$442 million representing
the growth of 148% compared to 2019," commented Mr. Karl Zhang, CooTek's Chairman. "Through a full
year's dedicated execution and driven by our long-term vision of
building a global pan-entertainment content ecosystem, we have
continued our strategic upgrade to a content-rich product
portfolio. While keeping the scale of our scenario-based content
apps since our IPO, we have successfully developed our online
literature and casual games business which respectively contributed
38% and 37% to the total revenue in 2020."
"In particular for Fengdu Novel which emerged rapidly and
consistently ranked the 3rd in terms of MAUs in the free online
literature market in China[4] in 2020, we have been enriching
our content resources by efficiently increasing the number of the
signed authors and the third-party content partners targeting at
further improving user stickiness. At the same time, we have also
advanced our monetization capabilities to create additional growth
momentum for the group. As a result, the average DAUs of Fengdu
Novel in December 2020 recorded a
year-over-year growth of around 106% and revenues of Fengdu Novel
in 2020 increased significantly by approximately 360% compared with
2019. In addition, we achieved a significant milestone in the
development of our overseas online literature business."
"Moving forward in 2021, our key strategic initiatives include:
1. Growing Fengdu Novel by improving interactive and quality user
experience and cultivating a more engaging and attractive
community. 2. Optimizing our casual games products by strengthening
internal development and third-party investments and partnerships.
3. Expediting overseas market expansion with our core strength
built in the online literature segment. 4. Upgrading our
monetization capabilities by exploring paid content, e-commerce and
IP asset adaptation. For the fiscal year of 2021, total revenue is
expected to continuously grow, with important enhancement of
profitability."
Mr. Robert Cui, CooTek's CFO
further commented, "Our steady growth strategy of the
pan-entertainment content ecosystem has been demonstrated by our
robust growth in our user base and revenue in 2020. As our business
scale reached a new high on a yearly basis, we are confident that
our commitment will further contribute to the continuous
enhancement of our product portfolio. We are encouraged to see that
our Fengdu Novel delivered solid business growth in the fourth
quarter of 2020 with the sequential Average Revenue Per User
("ARPU") growth of 22% and revenue growth of 28% reflecting the
upgraded monetization strategy. At the same time, we have been
committed to deliver a balanced financial approach by improving the
overall operating leverage. Looking at 2021, we are committed to
executing our well-structured dedicated growth plan focused on
continuously delivering revenue growth and steadily achieving
profitability."
[3] "Average
daily reading time" for any day is calculated by dividing (i) the
sum of time spent on reading books on our Fengdu Novel for such
day, by (ii) the number of Fengdu Novel users who spent time on
reading books for such day. The average daily reading time for any
month is calculated by dividing (i) the sum of average daily
reading time for each day in such month, by (ii) the number of days
in such month.
|
[4] According to Quest Mobile, a
professional business intelligence services provider in China's
mobile internet market.
|
(in
millions)
|
Portfolio
Products
|
|
|
Portfolio
Products
|
|
Including: Online
literature
|
|
|
DAUs
|
|
MAUs
|
|
DAUs
|
|
MAUs
|
|
Dec' 18
|
16.9
|
|
46.1
|
|
-
|
|
-
|
|
Mar' 19
|
23.1
|
|
59.8
|
|
0.3
|
|
0.9
|
|
Jun' 19
|
27.6
|
|
65.1
|
|
0.3
|
|
1.6
|
|
Sep' 19
|
23.9
|
|
67.5
|
|
2.0
|
|
11.0
|
|
Dec' 19
|
24.7
|
|
74.6
|
|
4.8
|
|
19.3
|
|
Mar' 20
|
25.2
|
|
89.2
|
|
7.3
|
|
29.1
|
|
Jun' 20
|
23.9
|
|
83.5
|
|
8.1
|
|
28.4
|
|
Sep' 20
|
27.7
|
|
94.8
|
|
10.0
|
|
29.5
|
|
Dec' 20
|
27.8
|
|
85.8
|
|
10.2
|
|
29.5
|
|
Fourth Quarter 2020 Financial Results
Net Revenues
(in US$ thousands,
except percentage)
|
4Q
2020
|
|
3Q
2020
|
|
4Q
2019
|
|
QoQ %
Change
|
|
YoY %
Change
|
|
|
|
|
|
|
|
|
|
|
Mobile Advertising
Revenue
|
101,347
|
|
104,842
|
|
68,465
|
|
(3)%
|
|
48%
|
Other
Revenue
|
1,093
|
|
815
|
|
519
|
|
34%
|
|
111%
|
Total Net
Revenues
|
102,440
|
|
105,657
|
|
68,984
|
|
(3)%
|
|
48%
|
Net revenues were US$102.4
million, an increase of 48% from US$69.0 million during the fourth quarter of 2019
and a decrease of 3% from US$105.7
million last quarter. The increase was primarily due to an
increase in mobile advertising revenue.
Mobile advertising revenue was US$101.3 million, an increase of 48% from
US$68.5 million during the fourth
quarter of 2019 and a decrease of 3% from US$104.8 million last quarter.
Our portfolio products focus on three categories: online
literature, scenario-based content apps and casual games. Online
literature accounted for approximately 47%, scenario-based content
apps accounted for approximately 24%, and casual games accounted
for approximately 28% of total net revenue.
Cost and Operating Expenses
|
4Q
2020
|
3Q
2020
|
|
4Q
2019
|
|
QoQ %
Change
|
|
YoY
%
change
|
|
(in US$ thousands,
except percentage)
|
US$
|
|
% of
revenue
|
|
US$
|
|
% of
revenue
|
|
US$
|
|
% of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
7,072
|
|
7%
|
|
6,784
|
|
6%
|
|
3,866
|
|
6%
|
|
4%
|
|
83%
|
|
Sales and
marketing
|
101,985
|
|
100%
|
|
107,842
|
|
102%
|
|
63,495
|
|
92%
|
|
(5)%
|
|
61%
|
|
Research and
development
|
6,516
|
|
6%
|
|
8,204
|
|
8%
|
|
5,738
|
|
8%
|
|
(21)%
|
|
14%
|
|
General and
administrative
|
3,873
|
|
4%
|
|
3,707
|
|
4%
|
|
2,752
|
|
4%
|
|
4%
|
|
41%
|
|
Other operating loss
(income), net
|
2,047
|
|
2%
|
|
1,064
|
|
1%
|
|
(644)
|
|
(1)%
|
|
92%
|
|
(418)%
|
|
Total Cost and
Expenses
|
121,493
|
|
119%
|
|
127,601
|
|
121%
|
|
75,207
|
|
109%
|
|
(5)%
|
|
62%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses by function
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
78
|
|
0.1%
|
|
75
|
|
0.1%
|
|
26
|
|
0.0%
|
|
4%
|
|
200%
|
|
Sales and
marketing
|
44
|
|
0.0%
|
|
59
|
|
0.1%
|
|
45
|
|
0.1%
|
|
(25)%
|
|
(2)%
|
|
Research and
development
|
876
|
|
0.9%
|
|
815
|
|
0.8%
|
|
242
|
|
0.4%
|
|
7%
|
|
262%
|
|
General and
administrative
|
533
|
|
0.5%
|
|
492
|
|
0.5%
|
|
133
|
|
0.2%
|
|
8%
|
|
301%
|
|
Total share-based
compensation expenses
|
1,531
|
|
1.5%
|
|
1,441
|
|
1.5%
|
|
446
|
|
0.7%
|
|
6%
|
|
243%
|
|
Cost of revenues was US$7.1
million, an 83% increase from US$3.9
million during the same period last year, and a 4% increase
from US$6.8 million last quarter. The
year-over-year increase was mainly due to an increase in
operational and maintenance-related expenses associated with the
Company's expanding business. The slightly sequential increase was
primarily due to an increase in content costs paid to freelancers
and third-party content distributors, and was partially offset by
decline in depreciation and amortization expense.
Gross profit was US$95.4
million, a 46% increase from US$65.1
million during the same period last year, and a decrease of
4% from US$98.9 million last quarter.
Gross profit margin was 93.1%, compared with 94.4% in the
same period last year and 93.6% last quarter.
Sales and marketing expenses were US$102.0 million, an increase of 61% from
US$63.5 million during the same
period last year, and a decrease of 5% from US$107.8 million last quarter. As a percentage of
total revenue, sales and marketing expenses accounted for 100%,
compared with 92% during the same period last year, and 102% last
quarter. The year-over-year increase in sales and marketing
expenses as a percentage of total net revenue was primarily due to
increased investment in user acquisition that was in line with the
Company's expanding business. The slightly decrease compared with
last quarter was primarily due to decreased investment in user
acquisition that was in line with the net revenues.
Research and development expenses were US$6.5 million, an increase of 14% from
US$5.7 million during the same period
last year and a decrease of 21% from US$8.2
million last quarter. The year-over-year increase was
primarily due to an increase in costs associated with technology
R&D staff and share-based compensation expenses. As a
percentage of total net revenue, research and development expenses
accounted for 6%, compared with 8% during the same period last year
and 8% last quarter.
General and administrative expenses were US$3.9 million, an increase of 41% from
US$2.8 million during the same period
last year and an increase of 4% from US$3.7
million last quarter. The sequential and year-over-year
increases were mainly due to an increase in costs associated with
G&A staff and share-based compensation. As a percentage of
total net revenue, general and administrative expenses accounted
for 4%, compared with 4% during the same period last year and 4%
during last quarter.
Other operating loss, net was US$2.0 million, compared with other operating
income, net US$0.6 million during the
same period last year and other operating loss, net US$1.1 million last quarter. The other operating
loss during this quarter mainly includes accrued liabilities of
US$2.0 million to an ongoing
investigation related in an alleged misconduct of certain
customers.
Net loss was US$18.8
million, compared with net loss of US$6.6 million during the same period last year
and a net loss of US$22.0 million
last quarter.
Adjusted net loss was US$17.3 million, compared with adjusted net loss
of US$6.2 million in the same period
last year and adjusted net loss of US$20.5
million last quarter. The sequential narrowing of the
adjusted net loss was mainly due to sales and marketing expenses as
a percentage of total revenue decreased.
In US$ thousands,
except percentage
|
4Q
2020
|
|
3Q
2020
|
|
4Q
2019
|
|
QoQ %
Change
|
|
YoY %
change
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
(18,784)
|
|
(21,964)
|
|
(6,646)
|
|
(14)%
|
|
183%
|
Add: Share-based
Compensation related to share options and restricted share
units
|
1,531
|
|
1,441
|
|
446
|
|
6%
|
|
243%
|
Adjusted Net Loss
(Non-GAAP)
|
(17,253)
|
|
(20,523)
|
|
(6,200)
|
|
(16)%
|
|
178%
|
Basic and diluted net loss per ADS were US$0.31 and US$0.31, and basic and diluted Adjusted net loss
(Non-GAAP) per ADS were US$0.28 and
US$0.28.
Balance Sheet and Cash Flows
As of December 31, 2020, cash,
cash equivalents and restricted cash were US$49.6 million, compared with US$61 million as of September 30, 2020. As of December 31, 2020, restricted cash were
US$25.0 million, mainly consisting of
amount of US$3.1 million held in
Group's bank account as guarantee deposit for loan facility
provided by the bank and long term restricted cash of US$21.7 million held in Group's bank accounts
which were frozen by a local authority in connection with an
ongoing investigation related to an alleged illegal act of certain
customers. The Company is still in the process of cooperating with
the relevant authority on such investigation and expect the funds
to be released upon the completion of such investigation, the
timing of which is out of the Company's control.
Net cash outflow from operating activities during the fourth
quarter of 2020 was US$6.8 million,
compared with net cash inflow from operating activities of
US$3.2 million for the same period in
2019 and net cash outflow from operating activities of US$14.4 million during the last quarter. Cash
outflow from operating activities during the fourth quarter of 2020
was mainly due to loss from operations.
Full Year 2020 Financial Results
Net Revenue
(in US$ thousands,
except percentage)
|
|
2020
|
|
2019
|
|
YoY %
Change
|
|
|
|
|
|
|
|
Mobile Advertising
Revenue
|
|
438,384
|
|
175,041
|
|
150%
|
Other
Revenue
|
|
3,121
|
|
2,843
|
|
10%
|
Total Net
Revenue
|
|
441,505
|
|
177,884
|
|
148%
|
Net revenue was US$441.5
million, an increase of 148% from US$177.9 million in 2019, primarily due to an
increase in mobile advertising revenue.
Mobile advertising revenue was US$438.4 million, an increase of 150% from
US$175.0 million in 2019, primarily
due to the growth in the number of DAUs of the Company's portfolio
products.
Our portfolio products focus on three categories: online
literature, scenario-based content apps and casual games. Online
literature accounted for approximately 38%, scenario-based content
apps accounted for approximately 24%, and casual games accounted
for approximately 37% of total net revenue.
Cost and Operating Expenses
|
2020
|
2019
|
|
YoY %
change
|
(in US$ thousands,
except percentage)
|
US$
|
|
% of
revenue
|
|
US$
|
|
% of
revenue
|
|
|
Cost of
revenue
|
24,128
|
|
5%
|
|
15,301
|
|
9%
|
|
58%
|
Sales and
marketing
|
418,262
|
|
95%
|
|
157,029
|
|
88%
|
|
166%
|
Research and
development
|
29,670
|
|
7%
|
|
26,936
|
|
15%
|
|
10%
|
General and
administrative
|
15,017
|
|
3%
|
|
16,256
|
|
9%
|
|
(8)%
|
Other operating loss
(income), net
|
2,275
|
|
1%
|
|
(873)
|
|
0%
|
|
(361)%
|
Total Cost and
Expenses
|
489,352
|
|
111%
|
|
214,649
|
|
121%
|
|
128%
|
Cost of revenue was US$24.1
million, an increase of 58% from US$15.3 million in 2019, mainly due to an
increase in content costs paid to freelancers and third-party
content distributors, the investment in operational workforce and
maintenance-related costs, and was partially offset by a decrease
in VoIP-related expenses.
Gross profit was US$417.4
million, an increase of 157% from US$162.6 million in 2019. Gross profit margin was
94.5%, compared with 91.4% in 2019.
Sales and marketing expenses were US$418.3 million, an increase of 166% from
US$157.0 million in 2019. As a
percentage of total net revenue, sales and marketing expenses
accounted for 95%, an increase from 88% in 2019, primarily due to
increased investment in user acquisition.
Research and development expenses were US$29.7 million, an increase of 10% from
US$26.9 million in 2019, mainly due
to an increase in costs associated with technology R&D staff.
As a percentage of total net revenue, research and development
expenses accounted for 7%, decreasing from 15% in 2019.
General and administrative expenses were
US$15.0 million, a decrease of 8%
from US$16.3 million in 2019,
primarily due to accrued bad debt provision of US$0.4 million in 2020, a decrease by 3.7 million
from US$4.1 million in 2019, and was
partially offset by an increase in professional expenses and an
increase in costs associated with G&A staff and share-based
compensation expenses. As a percentage of total net revenue,
general and administrative expenses accounted for 3%, decreasing
from 9% in 2019.
Other operating loss, net was US$2.3 million, compared with other operating
income, net of US$0.9 million in
2019. Other operating income (loss), net primarily consisted of
government subsidies received by the Company, losses arise from
investigations on certain third-party advertisers related to
alleged misconducts, and contingent liabilities for intellectual
property infringement lawsuit during operations.
Net loss was US$47.4
million, compared with net loss of US$36.8 million in 2019.
Adjusted net loss was US$42.0
million in 2020, compared with adjusted net loss of
US$33.2 million in 2019.
In US$ thousands,
except percentage
|
2020
|
|
2019
|
|
YoY %
change
|
|
|
|
|
|
|
Net Loss
|
(47,367)
|
|
(36,846)
|
|
29%
|
Add: Share-based
Compensation related to share options and restricted share
units
|
5,337
|
|
3,662
|
|
46%
|
Adjusted Net Loss
(Non-GAAP)
|
(42,030)
|
|
(33,184)
|
|
27%
|
In 2020, the basic and diluted net loss per ADS were
US$0.77 and US$0.77, respectively. Basic and diluted Adjusted
Net Loss (Non-GAAP) per ADS were US$0.68 and US$0.68, respectively.
Balance Sheet and Cash Flow
As of December 31, 2020, Cash,
cash equivalents and restricted cash were US$49.6 million, compared with US$60.0 million as of December 31, 2019.
Net cash outflow from operating activities in 2020 was
US$0.9 million, compared with outflow
from operations of US$15.7 million in
2019. Net cash outflow from operating activities was primarily a
result of the net loss.
Net cash outflow from investing activities in 2020 was
US$2.6 million, which was primarily
attributable to the purchase of property and equipment.
Share Repurchase Plan
On May 18, 2020, the Company
announced a share repurchase program (the "2020 Program") whereby
the Company is authorized to repurchase its class A ordinary shares
in the form of ADSs with an aggregate value of up to US$20 million during the 12-month period starting
from May 18, 2020. The Company
expects to fund the repurchases under this program with its
existing cash balance. As of December 31,
2020, the Company had used an aggregate of US$4.7 million to repurchase 0.9 million ADSs
under the 2020 Program and recorded as treasury stock.
Business Outlook
For the first quarter of 2021, CooTek expects total revenue to
be about US$80 million. This outlook
is based on information available as of the date of this press
release and reflects the Company's current and preliminary
expectations, which are subject to change in light of various
uncertainties, including those related to the ongoing COVID-19
pandemic.
Conference Call and Webcast
CooTek's management team will host a conference call at
8:00 AM U.S. Eastern Time on
Thursday, March 25, 2021
(8:00 PM Beijing Time on the same
day), following the results announcement.
The dial-in details for the live conference call are:
United States:
1-888-346-8982
Hong Kong: 800-905-945
Mainland China: 4001-201-203
International: 1-412-902-4272
Please dial in 15 minutes before the call is scheduled to begin.
When prompted, ask to be connected to the CooTek (Cayman)
Inc. call.
A live webcast and archive of the conference call will be
available on the Investor Relations section of CooTek's website at
https://ir.cootek.com/.
About CooTek (Cayman) Inc.
CooTek is a fast-growing mobile internet company with a global
vision that offers content-rich mobile applications, focusing on
three categories: online literature, scenario-based content apps
and casual games. CooTek's mission is to empower everyone to enjoy
relevant content seamlessly. CooTek's user-centric and data-driven
approach has enabled it to release appealing products to capture
mobile internet users' ever-evolving content needs and helps it
rapidly attract targeted users.
Non-GAAP Financial Measure
To supplement the unaudited consolidated financial information
prepared in accordance with generally accepted accounting
principles in the United States of
America ("GAAP"), the Company uses non-GAAP financial
measure of adjusted net (loss) income that is adjusted from results
based on GAAP to exclude the impact of share-based compensation,
and Adjusted EBITDA that is net (loss) income excluding interest
income and expense, income taxes, depreciation and amortization,
and share-based compensation. The measure should be considered in
addition to results prepared in accordance with GAAP, but should
not be considered a substitute for, or superior to, GAAP
results.
The Company believes that the non-GAAP measure help identify
underlying financial and business trends relating to the Company's
results of operations that could otherwise be distorted by the
effect of certain expenses that the Company include in (loss)
income from operations and net (loss) income. By making the
Company's financial results comparable period over period, the
Company believes adjusted net (loss) income and Adjusted EBITDA
provides useful information to better understand the Company's
historical business operations and future prospects and allows for
greater visibility with respect to key metrics used by the
management in financial and operational decision-making. In order
to mitigate these limitations, the Company has provided specific
information regarding the GAAP amounts excluded from the non-GAAP
measure. The table at the bottom of this press release includes
details on the reconciliation between GAAP financial measure that
is most directly comparable to the non-GAAP financial measure the
Company has presented.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. 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," "confident" and similar statements. CooTek may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including statements about CooTek's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: CooTek's mission and strategies; future business
development, financial conditions and results of operations; the
expected growth of the mobile internet industry and mobile
advertising industry; the expected growth of mobile advertising;
expectations regarding demand for and market acceptance of our
products and services; competition in mobile application and
advertising industry; relevant government policies and regulations
relating to the industry and the development and impacts of
COVID-19. Further information regarding these and other risks,
uncertainties or factors is included in the Company's filings with
the U.S. Securities and Exchange Commission. All information
provided in this press release is current as of the date of the
press release, and CooTek does not undertake any obligation to
update such information, except as required under applicable
law.
For investor enquiries, please contact:
CooTek (Cayman) Inc.
Mr. Robert Yi Cui
Email: IR@cootek.com
ICA (Institutional Capital Advisory)
Mr. Kevin Yang
Phone: +86-21-8028-6033
E-mail: cootek@icaasia.com
CooTek (Cayman)
INC.
Unaudited
Condensed Consolidated Statement of Operations
(in thousands, except for share and per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
Net revenues
|
|
68,984
|
|
105,657
|
|
102,440
|
|
177,884
|
|
441,505
|
|
Cost of
revenues
|
|
(3,866)
|
|
(6,784)
|
|
(7,072)
|
|
(15,301)
|
|
(24,128)
|
|
Gross
Profit
|
|
65,118
|
|
98,873
|
|
95,368
|
|
162,583
|
|
417,377
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(63,495)
|
|
(107,842)
|
|
(101,985)
|
|
(157,029)
|
|
(418,262)
|
|
Research and
development expenses
|
|
(5,738)
|
|
(8,204)
|
|
(6,516)
|
|
(26,936)
|
|
(29,670)
|
|
General and
administrative expenses
|
|
(2,752)
|
|
(3,707)
|
|
(3,873)
|
|
(16,256)
|
|
(15,017)
|
|
Other operating
income (loss), net
|
|
644
|
|
(1,064)
|
|
(2,047)
|
|
873
|
|
(2,275)
|
|
Total operating
expenses
|
|
(71,341)
|
|
(120,817)
|
|
(114,421)
|
|
(199,348)
|
|
(465,224)
|
|
Loss from
operations
|
|
(6,223)
|
|
(21,944)
|
|
(19,053)
|
|
(36,765)
|
|
(47,847)
|
|
Impairment loss of
investments
|
|
(500)
|
|
—
|
|
—
|
|
(500)
|
|
—
|
|
Interest income,
net
|
|
55
|
|
(7)
|
|
168
|
|
764
|
|
396
|
|
Foreign exchange gain
(loss)
|
|
22
|
|
(13)
|
|
105
|
|
(343)
|
|
91
|
|
Loss before income
taxes
|
|
(6,646)
|
|
(21,964)
|
|
(18,780)
|
|
(36,844)
|
|
(47,360)
|
|
Income tax
expense
|
|
—
|
|
—
|
|
(4)
|
|
(2)
|
|
(7)
|
|
Net
Loss
|
|
(6,646)
|
|
(21,964)
|
|
(18,784)
|
|
(36,846)
|
|
(47,367)
|
|
Net Loss per ordinary
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.002)
|
|
(0.007)
|
|
(0.006)
|
|
(0.01)
|
|
(0.02)
|
|
Diluted
|
|
(0.002)
|
|
(0.007)
|
|
(0.006)
|
|
(0.01)
|
|
(0.02)
|
|
Weighted average shares
used in
alculating net loss per ordinary
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,129,987,962
|
|
3,070,510,051
|
|
3,061,577,781
|
|
3,155,082,983
|
|
3,080,332,924
|
|
Diluted
|
|
3,129,987,962
|
|
3,070,510,051
|
|
3,061,577,781
|
|
3,155,082,983
|
|
3,080,332,924
|
|
Non-GAAP Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Loss
|
|
(6,200)
|
|
(20,523)
|
|
(17,253)
|
|
(33,184)
|
|
(42,030)
|
|
Adjusted
EBITDA
|
|
(5,346)
|
|
(19,318)
|
|
(16,386)
|
|
(30,940)
|
|
(38,650)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
(in thousands, except for share and per share data)
|
|
|
As of
|
|
|
|
December
31,
2019
|
|
December
31,
2020
|
|
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
59,906
|
|
24,669
|
|
Restricted
cash
|
|
60
|
|
3,264
|
|
Short-term
investment
|
|
572
|
|
50
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$1,774 as of
December 31, 2019 and US$1,162 as of
December 31, 2020, respectively
|
|
27,255
|
|
28,127
|
|
Prepaid expenses and
other current assets
|
|
7,848
|
|
12,073
|
|
Total current
assets
|
|
95,641
|
|
68,183
|
|
Long term restricted
cash
|
|
—
|
|
21,689
|
|
Property and
equipment, net
|
|
5,669
|
|
5,394
|
|
Intangible assets,
net
|
|
268
|
|
397
|
|
Long-term
investments
|
|
—
|
|
307
|
|
Other non-current
assets
|
|
259
|
|
932
|
|
TOTAL
ASSETS
|
|
101,837
|
|
96,902
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
37,878
|
|
76,126
|
|
Short-term bank
borrowings
|
|
9,013
|
|
10,958
|
|
Accrued salary and
benefits
|
|
5,598
|
|
9,143
|
|
Accrued expenses and
other current liabilities
|
|
5,956
|
|
10,686
|
|
Deferred
revenue
|
|
3,888
|
|
3,332
|
|
Total current
liabilities
|
|
62,333
|
|
110,245
|
|
Other non-current
liabilities
|
|
596
|
|
459
|
|
TOTAL
LIABILITIES
|
|
62,929
|
|
110,704
|
|
Unaudited
Condensed Consolidated Balance Sheets (continued):
(in thousands, except for share and per share data)
|
|
|
As of
|
|
|
December
31,
2019
|
|
December
31,
2020
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
Ordinary
shares
|
|
31
|
|
31
|
Treasury
Stock
|
|
(1,064)
|
|
(4,672)
|
Additional paid-in
capital
|
|
194,972
|
|
193,919
|
Accumulated
deficit
|
|
(153,598)
|
|
(200,965)
|
Accumulated other
comprehensive loss
|
|
(1,433)
|
|
(2,115)
|
Total Shareholders'
Equity
|
|
38,908
|
|
(13,802)
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
101,837
|
|
96,902
|
Unaudited
Condensed Consolidated Statement of Cash Flows
(in thousands, except for share and per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating
activities
|
|
3,237
|
|
(14,393)
|
|
(6,821)
|
|
(15,663)
|
|
(852)
|
|
Net cash (used in)
provided by investing
activities
|
|
(1,235)
|
|
12,266
|
|
(282)
|
|
(5,332)
|
|
(2,644)
|
|
Net cash provided by
(used in) financing
activities
|
|
1,436
|
|
(2,183)
|
|
(5,563)
|
|
(3,797)
|
|
(8,500)
|
|
Net increase (decrease)
in cash and
cash equivalents
|
|
3,438
|
|
(4,310)
|
|
(12,666)
|
|
(24,792)
|
|
(11,996)
|
|
Cash, cash
equivalents, and restricted
cash at beginning
of period
|
|
56,270
|
|
64,921
|
|
61,011
|
|
84,860
|
|
59,966
|
|
Effect of exchange rate
changes on
cash and cash equivalents
|
|
258
|
|
400
|
|
1,277
|
|
(102)
|
|
1,652
|
|
Cash, cash
equivalents, and restricted
cash at end of period
|
|
59,966
|
|
61,011
|
|
49,622
|
|
59,966
|
|
49,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
GAAP and Non-GAAP Results
(in thousands, except for share and per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
(6,646)
|
|
(21,964)
|
|
(18,784)
|
|
(36,846)
|
|
(47,367)
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation related to share options and restricted share
units
|
|
446
|
|
1,441
|
|
1,531
|
|
3,662
|
|
5,337
|
|
|
Adjusted Net Loss
(Non-GAAP)*
|
|
(6,200)
|
|
(20,523)
|
|
(17,253)
|
|
(33,184)
|
|
(42,030)
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income,
net
|
|
(55)
|
|
7
|
|
(168)
|
|
(764)
|
|
(396)
|
|
|
Income
taxes
|
|
—
|
|
—
|
|
4
|
|
2
|
|
7
|
|
|
Depreciation and
amortization
|
|
909
|
|
1,198
|
|
1,031
|
|
3,006
|
|
3,769
|
|
|
Adjusted EBITDA
(Non-GAAP)*
|
|
(5,346)
|
|
(19,318)
|
|
(16,386)
|
|
(30,940)
|
|
(38,650)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The tax impact to
the non-GAAP adjustments is zero.
|
View original
content:http://www.prnewswire.com/news-releases/cootek-announces-fourth-quarter-and-full-year-2020-unaudited-results-301255532.html
SOURCE CooTek (Cayman) Inc.