SHANGHAI, March 15, 2022 /PRNewswire/ -- CooTek (Cayman)
Inc. (NYSE: CTK) ("CooTek" or the "Company"), a global mobile
internet company, today reported unaudited financial results for
the fourth quarter ended December 31,
2021.
Fourth Quarter 2021 Highlights
- Net revenues were US$53.0
million, a decrease of 48% from US$102.4 million during the same period last
year.
- Gross profit was US$47.0 million,
a decrease of 51% from US$95.4
million during the same period last year.
- Gross profit margin was 88.7%, compared with 93.1% during the
same period last year.
- Net loss was US$0.3 million,
compared with net loss of US$0.4
million last quarter, and net loss of US$18.8 million during the same period last
year.
- Adjusted net income[1] (Non-GAAP) was US$0.5 million, compared with adjusted net income
(Non-GAAP) of US$0.4 million last
quarter, and adjusted net loss (Non-GAAP) of US$17.3 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, mobile games and scenario-based
content apps.
Full Year 2021 Highlights
- Net revenue was US$272.1 million,
a decrease of 38% from US$441.5
million in 2020.
- Gross profit was US$239.3
million, a decrease of 43% from US$417.4 million in 2020.
- Gross profit margin was 87.9%, compared with 94.5% in
2020.
- Net loss was US$13.9 million,
compared with net loss of US$47.4
million last year.
- Adjusted net loss (Non-GAAP) was US$10.2
million, compared with adjusted net loss (Non-GAAP) of
US$42.0 million in 2020.
December 2021 Operational
Highlights
- Average daily active users ("DAUs") of the Company's portfolio
products were 18.5 million, a decrease of 33% from 27.8 million in
December 2020. Monthly active users
("MAUs") of the Company's portfolio products were 62.6 million, a
decrease of 27% from 85.8 million in December 2020.
- Average DAUs of the Company's online literature products were
4.2 million, a decrease of 59% from 10.2 million in December 2020. MAUs of the Company's online
literature products were 12.3 million, a decrease of 58% from 29.5
million in December 2020. The average
daily reading time[3] of our online literature product
in the Chinese market, Fengdu Novel's users was approximately 179
minutes in December 2021, which
remained stable compared with 153 minutes in September 2021.
- Average DAUs of the Company's TouchPal Smart Input were 92.9
million. MAUs of the Company's TouchPal Smart Input were 123.4
million.
"We are pleased to record the third consecutive quarter with
positive non-GAAP profitability in 2021 while keeping a stable
revenue size in the fourth quarter compared to the third quarter of
2021 under our balanced approach in driving our business
development," commented Mr. Karl
Zhang, CooTek's Chairman. "Clearly, the overseas mobile
games business constitutes a core segment of the group which
mitigates the uncertainties in the Chinese mobile advertising
market. In addition to our self-developed mobile games, we started
to cooperate with third-party studios to expand our publishing
business. We expect that the revenue and gross profit contribution
from the overseas market will continue to increase in the coming
quarters. We are also confident that the company will achieve a
meaningful size of net income for the full year 2022 with the
continuous development of our overseas business and the
optimization of our Chinese business."
(in
millions)
|
Portfolio
Products
|
|
|
Portfolio
Products
|
|
Including: Online
literature
|
|
|
DAUs
|
|
MAUs
|
|
DAUs
|
|
MAUs
|
|
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
|
|
Mar' 21
|
20.3
|
|
58.6
|
|
7.5
|
|
20.1
|
|
Jun' 21
|
23.5
|
|
70.0
|
|
6.7
|
|
18.1
|
|
Sep' 21
|
18.7
|
|
57.2
|
|
5.0
|
|
13.5
|
|
Dec' 21
|
18.5
|
|
62.6
|
|
4.2
|
|
12.3
|
|
[1] "Adjusted
net income" (Non-GAAP) is a non-GAAP measure, which is defined as
net income 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.
[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.
|
Fourth Quarter 2021 Financial Results
Net Revenues
(in US$ thousands,
except percentage)
|
4Q
2021
|
|
3Q
2021
|
|
4Q
2020
|
|
QoQ %
Change
|
|
YoY %
Change
|
|
|
|
|
|
|
|
|
|
|
Mobile Advertising
Revenues
|
51,796
|
|
52,986
|
|
101,347
|
|
(2)%
|
|
(49)%
|
Other
Revenues
|
1,221
|
|
1,374
|
|
1,093
|
|
(11)%
|
|
12%
|
Total Net
Revenues
|
53,017
|
|
54,360
|
|
102,440
|
|
(2)%
|
|
(48)%
|
Net revenues were US$53.0
million, a decrease of 48% from US$102.4 million during the fourth quarter of
2020 and a decrease of 2% from US$54.4
million during the last quarter. The decrease compared with
the same quarter of 2020 was primarily due to a decrease in mobile
advertising revenues.
Mobile advertising revenues were US$51.8 million, a decrease of 49% from
US$101.3 million during the fourth
quarter of 2020 and a decrease of 2% from US$53.0 million during the last quarter. The
decrease compared with the same quarter of 2020 was primarily due
to the restructuring of certain portfolio products in the Chinese
mobile games and scenario-based content apps categories. The
decrease compared with the last quarter was primarily due to a
decrease in the Company's revenues generated from Chinese mobile
advertising market, and was partially offset by an increase from
overseas mobile games market.
Our portfolio products focus on three categories: online
literature, scenario-based content apps and mobile games. Mobile
games accounted for approximately 55%, online literature accounted
for approximately 42%, and scenario-based content apps accounted
for approximately 2% in the fourth quarter of 2021.
Cost and Operating Expenses
|
4Q
2021
|
3Q
2021
|
4Q
2020
|
QoQ %
Change
|
YoY
%
Change
|
(in US$ thousands,
except percentage)
|
US$
|
% of
revenue
|
US$
|
% of
revenue
|
US$
|
% of
revenue
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
5,994
|
11%
|
9,165
|
17%
|
7,072
|
7%
|
(35)%
|
(15)%
|
Sales and
marketing
|
37,807
|
71%
|
31,906
|
59%
|
101,985
|
100%
|
18%
|
(63)%
|
Research and
development
|
6,464
|
12%
|
9,223
|
17%
|
6,516
|
6%
|
(30)%
|
(1)%
|
General and
administrative
|
3,368
|
6%
|
4,011
|
7%
|
3,873
|
4%
|
(15)%
|
(13)%
|
Other operating
(income) loss, net
|
(1,253)
|
(2)%
|
(938)
|
(2)%
|
2,047
|
2%
|
34%
|
(161)%
|
Total Cost and
Expenses
|
52,380
|
98%
|
53,367
|
98%
|
121,493
|
119%
|
(2)%
|
(57)%
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses by function
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(20)
|
(0.0)%
|
30
|
0.1%
|
78
|
0.1%
|
(170)%
|
(127)%
|
Sales and
marketing
|
28
|
0.1%
|
20
|
0.0%
|
44
|
0.0%
|
40%
|
(36)%
|
Research and
development
|
307
|
0.6%
|
308
|
0.6%
|
876
|
0.9%
|
0%
|
(65)%
|
General and
administrative
|
445
|
0.8%
|
453
|
0.9%
|
533
|
0.5%
|
(2)%
|
(17)%
|
Total share-based
compensation expenses
|
760
|
1.5%
|
811
|
1.6%
|
1,531
|
1.5%
|
(6)%
|
(50)%
|
Cost of revenues was US$6.0
million, a 15% decrease from US$7.1
million during the same period last year, and a decrease of
35% from US$9.2 million during the
last quarter. The year-over-year decrease was primarily due to the
decreases in operational and maintenance-related expenses,
third-party outsourcing fee, salary and payroll expenses associated
with cost staff and share-based compensation expenses, and was
partially offset by an increase in content costs we paid to our
signed authors and third-party content providers for the publishing
and licensing of relevant online literature works. The sequential
decrease was primarily due to decreases in operational and
maintenance-related expenses, third-party outsourcing fee, salary
and payroll expenses associated with cost staff and share-based
compensation expenses, and content costs we paid to our signed
authors and third-party content providers for the publishing and
licensing of relevant online literature works.
Gross profit was US$47.0
million, a decrease of 51% from US$95.4 million during the same period last year,
and an increase of 4% from US$45.2
million last quarter. Gross profit margin was 88.7%,
compared with 93.1% in the same period last year and 83.1% last
quarter.
Sales and marketing expenses were US$37.8 million, a decrease of 63% from
US$102.0 million during the same
period last year, and an increase of 18% from US$31.9 million last quarter. As a percentage of
total revenues, sales and marketing expenses accounted for 71%,
compared with 100% during the same period last year, and 59% last
quarter. The year-over-year decrease in sales and marketing
expenses was primarily due to the transition of the strategy in
relation to the acquisition of new users and the retention of
existing users which resulted in the reduction of the user
acquisition costs. The sequential increase in sales and marketing
expenses was primarily due to the increased investment in user
acquisition in connection with our efforts to grow the user base,
and was partially offset by decline in salary and payroll expenses
associated with sales and marketing staff.
Research and development expenses were US$6.5 million, a slightly decrease from
US$6.5 million during the same period
last year and a decrease of 30% from US$9.2
million last quarter. The year-over-year decrease was
primarily due to a decline in share-based compensation expenses,
and was partially offset by an increase in salary and payroll
expenses associated with technology R&D staff. The sequential
decrease was primarily due to a decrease in salary and payroll
expenses associated with technology R&D staff, and was
partially offset by an increase in third-party outsourcing fee. As
a percentage of total net revenues, research and development
expenses accounted for 12%, compared with 6% during the same period
last year and 17% last quarter.
General and administrative expenses were US$3.4 million, a decrease of 13% from
US$3.9 million during the same period
last year and a decrease of 15% from US$4.0
million last quarter. The year-over-year decrease was mainly
due to a decrease in salary and payroll expenses associated with
G&A staff, third-party outsourcing fee and listing expenses.
The sequential decrease was mainly due to a decrease in salary and
payroll expenses associated with G&A staff, and was partially
offset by a rise in listing expenses. As a percentage of total net
revenues, general and administrative expenses accounted for 6%,
compared with 4% during the same period last year and 7% during
last quarter.
Other operating income, net was US$1.3 million, compared with other operating
loss, net of US$2.0 million during
the same period last year and other operating income, net of
US$0.9 million last quarter. The
other operating income mainly included government subsidy
received.
Interest expense, net was US$1.0 million, compared with interest income,
net of US$168 thousand during the
same period last year and interest expense, net of US$2.0 million last quarter. The interest expense
mainly included interest expenses related to convertible notes.
Net loss was US$0.3
million, compared with net loss of US$18.8 million during the same period last year
and a net loss of US$0.4 million last
quarter.
Adjusted net income was US$0.5 million, compared with adjusted net loss
of US$17.3 million in the same period
last year and adjusted net income of US$0.4
million last quarter. The achievement of profitability
compared with the adjusted net loss the same quarter last year was
mainly due to the decrease in sales and marketing expenses as a
percentage of total revenues driven by the continuous transition of
the strategy in relation to the acquisition of new users and the
retention of existing users. The sequential increase of
profitability compared with the adjusted net income in the last
quarter was mainly due to an increase in revenues.
(in US$ thousands,
except percentage)
|
4Q
2021
|
3Q
2021
|
4Q
2020
|
QoQ %
Change
|
YoY %
Change
|
|
|
|
|
|
|
Net Loss
|
(278)
|
(444)
|
(18,784)
|
(37)%
|
(99)%
|
Add: Share-based
compensation related to share
options and restricted share units
|
760
|
811
|
1,531
|
(6)%
|
(50)%
|
Adjusted Net
Income (Loss) (Non-GAAP)
|
482
|
367
|
(17,253)
|
31%
|
(103)%
|
In the three months ended December 31,
2021, basic and diluted net loss per ADS were US$0.004 and US$0.004, and basic and diluted adjusted net
income (Non-GAAP) per ADS were US$0.007 and US$0.007 respectively.
Balance Sheet and Cash Flows
As of December 31, 2021, cash,
cash equivalents and restricted cash were US$18.4 million, compared with US$36.2 million as of September 30, 2021.
Net cash outflow from operating activities during the fourth
quarter of 2021 was US$15.5 million,
compared with net cash outflow from operating activities of
US$6.8 million for the same period in
2020 and net cash inflow from operating activities of US$5.0 million during the last quarter. Cash
outflow from operating activities during the fourth quarter of 2021
was mainly due to an increase in accounts receivable driven
primarily by an increase in revenues, and a decrease in accounts
payable, accrued expenses and accrued salary and benefits, which
was driven primarily by the payment of liabilities.
Net cash outflow from financing activities during the fourth
quarter of 2021 was US$2.3 million,
compared with net cash outflow from financing activities of
US$5.6 million for the same
period in 2020 and net cash outflow from financing activities of
US$6.8 million during the last
quarter. Net cash outflow from financing activities during the
fourth quarter of 2021 was mainly due to net cash outflow of
US$2.3 million from the aggregate
effect of proceeds from and repayment of bank borrowings.
Full Year 2021 Financial Results
Net
Revenues
(in US$ thousands,
except percentage)
|
|
2021
|
|
2020
|
|
YoY %
Change
|
|
|
|
|
|
|
|
Mobile Advertising
Revenues
|
|
267,267
|
|
438,384
|
|
(39)%
|
Other
Revenues
|
|
4,879
|
|
3,121
|
|
56%
|
Total Net
Revenues
|
|
272,146
|
|
441,505
|
|
(38)%
|
Net revenues were US$272.1
million, a decrease of 38% from US$441.5 million in 2020, primarily due to a
decrease in mobile advertising revenues.
Mobile advertising revenues were US$267.3 million, a decrease of 39% from
US$438.4 million in 2020, primarily
due to the continuous restructuring of portfolio products in the
Chinese mobile games and scenario-based apps categories.
Our portfolio products focus on three categories: online
literature, scenario-based content apps and mobile games. Online
literature accounted for approximately 39%, scenario-based content
apps accounted for approximately 8%, and mobile games accounted for
approximately 52% of total net revenues.
Cost and Operating Expenses
|
2021
|
2020
|
YoY %
change
|
(in US$ thousands,
except percentage)
|
US$
|
% of
revenue
|
US$
|
% of
revenue
|
|
Cost of
revenues
|
32,826
|
12%
|
24,128
|
5%
|
36%
|
Sales and
marketing
|
200,236
|
73%
|
418,262
|
95%
|
(52)%
|
Research and
development
|
34,433
|
13%
|
29,670
|
7%
|
16%
|
General and
administrative
|
17,815
|
7%
|
15,017
|
3%
|
19%
|
Other operating
(income) loss, net
|
(4,453)
|
(2)%
|
2,275
|
1%
|
(296)%
|
Total Cost and
Expenses
|
280,857
|
103%
|
489,352
|
111%
|
(43)%
|
Cost of revenues was US$32.8
million, an increase of 36% from US$24.1 million in 2020, mainly due to an
increase in content costs we paid to our signed authors and
third-party content providers for the publishing and licensing of
relevant online literature works, third-party outsourcing fee,
salary and payroll expenses associated with cost staff, and was
partially offset by a decrease in operational and
maintenance-related expenses, and share-based compensation
expenses.
Gross profit was US$239.3
million, a decrease of 43% from US$417.4 million in 2020. Gross profit margin was
87.9%, compared with 94.5% in 2020.
Sales and marketing expenses were US$200.2 million, a decrease of 52% from
US$418.3 million in 2020. As a
percentage of total net revenue, sales and marketing expenses
accounted for 73%, a decrease from 95% in 2020, primarily due to
the continuous transition of the strategy in relation to the
acquisition of new users and the retention of existing users which
resulted in the reduction of the user acquisition costs.
Research and development expenses were US$34.4 million, an increase of 16% from
US$29.7 million in 2020, mainly due
to an increase in salary and payroll expenses associated with
technology R&D staff and third-party outsourcing fee, and was
partially offset by a decrease in share-based compensation
expenses. As a percentage of total net revenue, research and
development expenses accounted for 13%, increasing from 7% in
2020.
General and administrative expenses were
US$17.8 million, an increase of 19%
from US$15.0 million in 2020,
primarily due to an increase in salary and payroll expenses
associated with G&A staff, professional service fee,
third-party outsourcing fee and listing expenses, and was partially
offset by a decrease in bad debt provision. As a percentage of
total net revenue, general and administrative expenses accounted
for 7%, increasing from 3% in 2020.
Other operating income, net was US$4.5 million, compared with other operating
loss, net of US$2.3 million in 2020.
The other operating income, net in 2021 mainly included government
subsidies received by the Company. The other operating loss in 2020
mainly consisted of losses arise from investigations on certain
third-party advertisers related to alleged misconducts, and
contingent liabilities for intellectual property infringement
lawsuit during operations, which were partially offset by
government subsidies received.
Interest expense, net was US$5.7 million, compared with interest income,
net of US$396 thousand last year. The
interest expense mainly included interest expenses related to
convertible notes.
Net loss was US$13.9
million, compared with net loss of US$47.4 million in 2020.
Adjusted net loss was US$10.2
million in 2021, compared with adjusted net loss of
US$42.0 million in 2020.
In US$ thousands,
except percentage
|
2021
|
2020
|
YoY %
change
|
|
|
|
|
Net Loss
|
(13,877)
|
(47,367)
|
(71)%
|
Add: Share-based
Compensation related to share options and restricted
share units
|
3,716
|
5,337
|
(30)%
|
Adjusted Net Loss
(Non-GAAP)
|
(10,161)
|
(42,030)
|
(76)%
|
In 2021, the basic and diluted net loss per ADS were
US$0.23 and US$0.23, respectively. Basic and diluted Adjusted
Net Loss (Non-GAAP) per ADS were US$0.17 and US$0.17, respectively.
Balance Sheet and Cash Flow
As of December 31, 2021, Cash,
cash equivalents and restricted cash were US$18.4 million, compared with US$49.6 million as of December 31, 2020.
Net cash outflow from operating activities in 2021 was
US$51.0 million, compared with
outflow from operations of US$0.9
million in 2020. Net cash outflow from operating activities
was primarily due to a decrease in accounts payable, accrued
expenses and accrued salary and benefits driven primarily by the
payment of liabilities, and was partially offset by the decrease in
accounts receivable driven primarily by the collection of
receivables.
Net cash outflow from investing activities in 2021 was
US$1.8 million, which was primarily
attributable to the purchase of property and equipment and
long-term investments.
Net cash inflow from financing activities in 2021 was
US$20.9 million, compared with net
cash outflow from financing activities of US$8.5 million in 2020. In 2021, the Company
issued a convertible note for a principal amount of US$10.0 million and received net proceeds of
US$8.9 million from this
issuance on January 19, 2021, and a
convertible note for a principal amount of US$20.0 million and received net proceeds of
US$ 18.2 million from this issuance
on March 19, 2021, and the net
proceeds of US$1.4 million from a
registered direct offering, upon which the Company sold
US$1.5 million of ADSs on
August 16, 2021. In 2021, the Company
voluntarily redeemed convertible note of US$4.2 million on July 1,
2021 and August 2, 2021, and
recorded cash outflow of US$1.3
million for payment of share repurchase, and net cash
outflow of US$2.1 million due to the
aggregate effect of proceeds from and repayment of bank
borrowing.
The Company has negative operating cash
flow of US$51.0 million and net loss
of US$13.9 million for the year ended
December 31, 2021 and suffers losses
from operation activities in consecutive years. The Group's current
liabilities exceed its current assets by US$11.2 million as of December 31, 2021. The Company received two below
compliance notification from NYSE as disclosed in previous 6-K and
immediate redemption on the outstanding balance of convertible
notes and part of bank borrowings totaling US$8.6 million will be triggered if delisting
from NYSE occurs. Management has initiated a plan to reduce
operating expenses and planned to obtain or roll-over funds from
outside sources of financing. There are uncertainties regarding the
implementation of the expenses' reduction plan and the funding
plan, which raise substantial
doubt about the Company's ability to continue as a going concern.
The consolidated financial statements do not include any
adjustments that might result from the outcome of the
uncertainty.
Conference Call and Webcast
CooTek's management team will host a conference call at
8:00 AM U.S. Eastern Time on
March 15, 2022 (8:00 PM Beijing Time on the same day).
The dial-in details for the live conference call are:
United
States/Canada:
|
800-239-9838
|
Hong Kong:
|
800-961-105
|
Mainland
China:
|
4001-209-101
|
International:
|
1-323-794-2551
|
Passcode:
|
7839963
|
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 mobile internet company with a global vision that
offers content-rich mobile applications, focusing on three
categories: online literature, scenario-based content apps and
mobile 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 that is adjusted from results based on
GAAP to exclude the impact of share-based compensation, and
Adjusted EBITDA that is net loss 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 from
operations and net loss. By making the Company's financial results
comparable period over period, the Company believes adjusted net
loss 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," "optimistic" 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 Investor Relations (Asia) Limited
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,
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
Net revenues
|
|
102,440
|
|
54,360
|
|
53,017
|
|
441,505
|
|
272,146
|
|
Cost of
revenues
|
|
(7,072)
|
|
(9,165)
|
|
(5,994)
|
|
(24,128)
|
|
(32,826)
|
|
Gross
Profit
|
|
95,368
|
|
45,195
|
|
47,023
|
|
417,377
|
|
239,320
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(101,985)
|
|
(31,906)
|
|
(37,807)
|
|
(418,262)
|
|
(200,236)
|
|
Research and
development expenses
|
|
(6,516)
|
|
(9,223)
|
|
(6,464)
|
|
(29,670)
|
|
(34,433)
|
|
General and
administrative expenses
|
|
(3,873)
|
|
(4,011)
|
|
(3,368)
|
|
(15,017)
|
|
(17,815)
|
|
Other operating
(loss) income, net
|
|
(2,047)
|
|
938
|
|
1,253
|
|
(2,275)
|
|
4,453
|
|
Total operating
expenses
|
|
(114,421)
|
|
(44,202)
|
|
(46,386)
|
|
(465,224)
|
|
(248,031)
|
|
(Loss) income from
operations
|
|
(19,053)
|
|
993
|
|
637
|
|
(47,847)
|
|
(8,711)
|
|
Interest income
(expense) , net
|
|
168
|
|
(2,031)
|
|
(988)
|
|
396
|
|
(5,690)
|
|
Impairment loss of
investment
|
|
—
|
|
—
|
|
(248)
|
|
—
|
|
(248)
|
|
Foreign exchange gain
(loss), net
|
|
105
|
|
(25)
|
|
30
|
|
91
|
|
(220)
|
|
Fair value change of
derivatives
|
|
—
|
|
656
|
|
367
|
|
—
|
|
1,109
|
|
Loss before income
taxes
|
|
(18,780)
|
|
(407)
|
|
(202)
|
|
(47,360)
|
|
(13,760)
|
|
Income tax
expense
|
|
(4)
|
|
—
|
|
(52)
|
|
(7)
|
|
(52)
|
|
Share of loss in
equity method investment
|
|
—
|
|
(37)
|
|
(24)
|
|
—
|
|
(65)
|
|
Net
loss
|
|
(18,784)
|
|
(444)
|
|
(278)
|
|
(47,367)
|
|
(13,877)
|
|
Deemed dividend in
relation to the convertible note
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,369)
|
|
Net Loss
attributable to ordinary shareholders
|
|
(18,784)
|
|
(444)
|
|
(278)
|
|
(47,367)
|
|
(15,246)
|
|
Net loss per ordinary
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.006)
|
|
(0.0001)
|
|
(0.0001)
|
|
(0.02)
|
|
(0.005)
|
|
Diluted
|
|
(0.006)
|
|
(0.0001)
|
|
(0.0001)
|
|
(0.02)
|
|
(0.005)
|
|
Weighted average shares
used in calculating net loss
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,061,577,781
|
|
3,330,388,021
|
|
3,503,075,124
|
|
3,080,332,924
|
|
3,303,168,725
|
|
Diluted
|
|
3,061,577,781
|
|
3,330,388,021
|
|
3,503,075,124
|
|
3,080,332,924
|
|
3,303,168,725
|
|
Non-GAAP Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net (Loss)
Income
|
|
(17,253)
|
|
367
|
|
482
|
|
(42,030)
|
|
(10,161)
|
|
Adjusted
EBITDA
|
|
(16,386)
|
|
3,317
|
|
2,531
|
|
(38,650)
|
|
(647)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
(in thousands, except for share and per share data)
|
|
|
|
|
|
As of
|
|
|
|
December
31,
2020
|
|
December
31,
2021
|
|
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
24,669
|
|
18,232
|
|
Restricted
cash
|
|
3,264
|
|
199
|
|
Short-term
investment
|
|
50
|
|
50
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$1,162
and US$1,169 as of December 31, 2020
and 2021, respectively
|
|
28,127
|
|
21,483
|
|
Prepaid expenses and
other current assets
|
|
12,073
|
|
10,864
|
|
Total current
assets
|
|
68,183
|
|
50,828
|
|
Long term restricted
cash
|
|
21,689
|
|
—
|
|
Property and
equipment, net
|
|
5,394
|
|
3,088
|
|
Intangible assets,
net
|
|
397
|
|
249
|
|
Operating lease
right-of-use assets[4]
|
|
—
|
|
1,171
|
|
Long-term
investments
|
|
307
|
|
314
|
|
Other non-current
assets
|
|
932
|
|
780
|
|
TOTAL
ASSETS
|
|
96,902
|
|
56,430
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
76,126
|
|
27,760
|
|
Short-term
borrowings
|
|
10,958
|
|
9,097
|
|
Accrued salary and
benefits
|
|
9,143
|
|
4,602
|
|
Operating lease
liabilities, current[4]
|
|
—
|
|
810
|
|
Accrued expenses and
other current liabilities
|
|
10,686
|
|
8,063
|
|
Convertible
notes
|
|
—
|
|
9,176
|
|
Derivative
liabilities
|
|
—
|
|
554
|
|
Deferred
revenue
|
|
3,332
|
|
1,943
|
|
Total current
liabilities
|
|
110,245
|
|
62,005
|
|
Other non-current
liabilities
|
|
459
|
|
323
|
|
Operating lease
liabilities, non-current[4]
|
|
—
|
|
103
|
|
TOTAL
LIABILITIES
|
|
110,704
|
|
62,431
|
|
|
[4] On January
1, 2021, the Company adopted ASC 842, the new lease standard, using
the modified retrospective method.
|
Unaudited
Condensed Consolidated Balance Sheets (continued):
(in thousands, except for share and per share data)
|
|
|
|
As of
|
|
|
December
31,
2020
|
|
December
31,
2021
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Shareholders'
Deficit:
|
|
|
|
|
Ordinary
shares
|
|
31
|
|
36
|
Treasury
shares
|
|
(4,672)
|
|
—
|
Additional paid-in
capital
|
|
193,919
|
|
210,718
|
Accumulated
deficit
|
|
(200,965)
|
|
(214,842)
|
Accumulated other
comprehensive loss
|
|
(2,115)
|
|
(1,913)
|
Total Shareholders'
Deficit
|
|
(13,802)
|
|
(6,001)
|
TOTAL LIABILITIES
AND SHAREHOLDERS' DEFICIT
|
|
96,902
|
|
56,430
|
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,
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by
operating activities
|
|
(6,821)
|
|
4,985
|
|
(15,514)
|
|
(852)
|
|
(51,043)
|
|
Net cash used in
investing activities
|
|
(282)
|
|
(771)
|
|
(83)
|
|
(2,644)
|
|
(1,779)
|
|
Net cash (used in)
provided by
financing activities
|
|
(5,563)
|
|
(6,810)
|
|
(2,305)
|
|
(8,500)
|
|
20,900
|
|
Net decrease in cash
and cash
equivalents
|
|
(12,666)
|
|
(2,596)
|
|
(17,902)
|
|
(11,996)
|
|
(31,922)
|
|
Cash, cash equivalents,
and restricted
cash at beginning of period
|
|
61,011
|
|
38,960
|
|
36,208
|
|
59,966
|
|
49,622
|
|
Effect of exchange rate
changes on
cash and cash equivalents
|
|
1,277
|
|
(156)
|
|
125
|
|
1,652
|
|
731
|
|
Cash, cash equivalents,
and restricted
cash at end of period
|
|
49,622
|
|
36,208
|
|
18,431
|
|
49,622
|
|
18,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
(18,784)
|
|
(444)
|
|
(278)
|
|
(47,367)
|
|
(13,877)
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation related to share options and
restricted share units
|
|
1,531
|
|
811
|
|
760
|
|
5,337
|
|
3,716
|
|
|
Adjusted Net
(Loss) Income (Non-GAAP)*
|
|
(17,253)
|
|
367
|
|
482
|
|
(42,030)
|
|
(10,161)
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense, net
|
|
(168)
|
|
2,031
|
|
988
|
|
(396)
|
|
5,690
|
|
|
Income
taxes
|
|
4
|
|
—
|
|
52
|
|
7
|
|
52
|
|
|
Depreciation and
amortization
|
|
1,031
|
|
919
|
|
1,009
|
|
3,769
|
|
3,772
|
|
|
Adjusted EBITDA
(Non-GAAP)*
|
|
(16,386)
|
|
3,317
|
|
2,531
|
|
(38,650)
|
|
(647)
|
|
|
|
|
|
|
|
* The tax impact to
the non-GAAP adjustments is zero.
|
|
|
View original
content:https://www.prnewswire.com/news-releases/cootek-announces-fourth-quarter-and-full-year-2021-unaudited-results-301502581.html
SOURCE CooTek (Cayman) Inc.