Aurora Mobile Limited Announces Third Quarter 2024 Unaudited Financial Results

SHENZHEN, China, Nov. 14, 2024 (GLOBE NEWSWIRE) — Aurora Mobile Limited (“Aurora Mobile” or the “Company”) JG, a leading provider of customer engagement and marketing technology services in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights

Revenues were RMB79.1 million (US$11.3 million), an increase of 7% year-over-year.
Cost of revenues was RMB25.8 million (US$3.7 million), an increase of 19% year-over-year.
Gross profit was RMB53.2 million (US$7.6 million), an increase of 2% year-over-year.
Total operating expenses were RMB57.1 million (US$8.1 million), a decrease of 5% year-over-year.
Net loss was RMB2.2 million (US$0.3 million), compared with a net loss of RMB7.0 million for the same quarter last year.
Net loss attributable to Aurora Mobile Limited’s shareholders was RMB2.6 million (US$0.4 million), compared with a net loss attributable to Aurora Mobile Limited’s shareholders of RMB6.8 million for the same quarter last year.
Adjusted net loss (non-GAAP) was RMB0.9 million (US$0.1 million), compared with a RMB2.1 million adjusted net income for the same quarter last year.
Adjusted EBITDA (non-GAAP) was RMB0.6 million (US$82 thousand), compared with RMB4.5 million for the same quarter last year.

Mr. Weidong Luo, Chairman and Chief Executive Officer of Aurora Mobile, commented, “This quarter has been remarkable from financial results perspective. There were a few record-breaking events that we have achieved. The snapshots for this quarter are as follows:

Firstly, we are writing our own history! In this quarter, we recorded the 5th consecutive quarterly positive Adjusted EBITDA.
Secondly, Developer Subscription revenue recorded both 7% growth quarter-over-quarter and 11% growth year-over-year. More importantly, the quarterly revenue has exceeded RMB50 million for the first time in history. Yet another record-breaking event in this quarter!
Thirdly, we recorded net operating cash inflow of RMB12.3 million. This is the highest level for the past 16 quarters.
Fourthly, our EngageLab business continues to grow significantly in terms of both customer numbers (grew 32% quarter-over-quarter) and cumulative signed contract value (grew 23% quarter-over-quarter).

Our Subscription Services revenues of RMB51.7 million grew strongly by 11% year-over-year and by 7% quarter-over-quarter. The year-over-year and quarter-over-quarter revenue growth was mainly driven by increase in ARPU. Another major contributor of this impressive revenue growth was the solid performance of our EngageLab business. The EngageLab business has contributed strong revenue growth in this quarter. On year-over-year basis, the recognized revenue for EngageLab has grown close to 100%.”

Mr. Shan-Nen Bong, Chief Financial Officer of Aurora Mobile, added, “We have been diligent in growing and managing our business. We keep our operating expenses to an optimal level to support business growth and expansion. Our gross profit in this quarter recorded good growth, both year-over-year and quarter-over-quarter, where gross profit grew every quarter to new heights from Q1 to Q3 in 2024. Last, but not least, our net loss narrowed by 69% on a year-over-year basis.”

Third Quarter 2024 Financial Results

Revenues were RMB79.1 million (US$11.3 million), an increase of 7% from RMB74.1 million in the same quarter of last year, mainly due to a 12% increase in revenue from Developer Services and partially offset by a 4% decrease in revenue from Vertical Applications.

Cost of revenues was RMB25.8 million (US$3.7 million), an increase of 19% from RMB21.8 million in the same quarter of last year. The increase was mainly due to a RMB1.8 million increase in technical service cost, a RMB0.3 million increase in cloud costs and a RMB0.8 million increase in short messaging cost.

Gross profit was RMB53.2 million (US$7.6 million), an increase of 2% from RMB52.3 million in the same quarter of last year.

Total operating expenses were RMB57.1 million (US$8.1 million), a decrease of 5% from RMB60.0 million in the same quarter of last year.

Research and development expenses were RMB24.2 million (US$3.4 million), a decrease of 26% from RMB32.8 million in the same quarter of last year, mainly due to a RMB3.1 million decrease in personnel costs, a RMB3.0 million decrease in technical service fee, a RMB1.9 million decrease in cloud cost and a RMB0.8 million decrease in depreciation expense.
Sales and marketing expenses were RMB22.4 million (US$3.2 million), an increase of 3% from RMB21.8 million in the same quarter of last year, mainly due to a RMB1.1 million increase in travel expense.
General and administrative expenses were RMB10.4 million (US$1.5 million), an increase of 92% from RMB5.4 million in the same quarter of last year, mainly due to there was a one-time gain on disposal of property and equipment of RMB7.6 million in Q3’2023 which was non-existence in Q3’2024. The impact was partially offset by a RMB1.5 million decrease in personnel costs.

Loss from operations was RMB3.6 million (US$0.5 million), compared with RMB1.8 million in the same quarter of last year.

Net Loss was RMB2.2 million (US$0.3 million), compared with RMB7.0 million in the same quarter of last year.

Adjusted net loss (non-GAAP) was RMB0.9 million (US$0.1 million), compared with a RMB2.1 million adjusted net income in the same quarter of last year.

Adjusted EBITDA (non-GAAP) was RMB0.6 million (US$82 thousand), compared with RMB4.5 million for the same quarter of last year.

The cash and cash equivalents and restricted cash were RMB101.1 million (US$14.4 million) as of September 30, 2024 compared with RMB115.0 million as of December 31, 2023.

Update on Share Repurchase

As of September 30, 2024, the Company had repurchased a total of 245,638 ADS, of which 28,995 ADSs, or around US$150.4 thousand were repurchased during the third quarter in 2024.

Conference Call

The Company will host an earnings conference call on Thursday, November 14, 2024 at 7:30 a.m. U.S. Eastern Time (8:30 p.m. Beijing time on the same day).

All participants must register in advance to join the conference using the link provided below. Please dial in 15 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.

Participant Online Registration: https://register.vevent.com/register/BIbffdeba3d6fd4cb59da31309ca6efd3f

A live and archived webcast of the conference call will be available on the Investor Relations section of Aurora Mobile’s website at https://ir.jiguang.cn/.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses two non-GAAP measures, adjusted net income/(loss) and adjusted EBITDA, as a supplemental measure to review and assess its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net income/(loss) as net loss excluding share-based compensation, reduction in force charges and impairment of long-term investments. The Company defines adjusted EBITDA as net loss excluding interest expense, depreciation of property and equipment, amortization of intangible assets, amortization of land use right, income tax expenses/(benefits), share-based compensation, reduction in force charges and impairment of long-term investments.

The Company believes that adjusted net income/(loss) and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in loss from operations and net loss.

The Company believes that adjusted net income/(loss) and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net income/(loss) and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of the non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of 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. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its reports 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. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SAAS business model; its ability to maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

About Aurora Mobile Limited

Founded in 2011, Aurora Mobile is a leading provider of customer engagement and marketing technology services in China. Since its inception, Aurora Mobile has focused on providing stable and efficient messaging services to enterprises and has grown to be a leading mobile messaging service provider with its first-mover advantage. With the increasing demand for customer reach and marketing growth, Aurora Mobile has developed forward-looking solutions such as Cloud Messaging and Cloud Marketing to help enterprises achieve omnichannel customer reach and interaction, as well as artificial intelligence and big data-driven marketing technology solutions to help enterprises’ digital transformation.

For more information, please visit https://ir.jiguang.cn/.

For investor and media inquiries, please contact:

Aurora Mobile Limited
ir@jiguang.cn

Christensen
In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@christensencomms.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com

Footnote:

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024.

AURORA MOBILE LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

	Three months ended								Nine months ended
	September 30, 2023		June 30, 2024		September 30, 2024				September 30, 2023		September 30, 2024
	RMB		RMB		RMB		US$		RMB		RMB		US$

Revenues	74,058		79,441		79,052		11,265		212,822		223,017		31,780
Cost of revenues	(21,756	)	(26,670	)	(25,846	)	(3,683	)	(66,817	)	(70,668	)	(10,070	)
Gross profit	52,302		52,771		53,206		7,582		146,005		152,349		21,710
Operating expenses
Research and development	(32,797	)	(23,652	)	(24,157	)	(3,442	)	(94,721	)	(70,490	)	(10,045	)
Sales and marketing	(21,750	)	(20,478	)	(22,448	)	(3,199	)	(60,649	)	(60,317	)	(8,595	)
General and administrative	(5,436	)	(10,677	)	(10,447	)	(1,489	)	(33,582	)	(34,056	)	(4,853	)
Total operating expenses	(59,983	)	(54,807	)	(57,052	)	(8,130	)	(188,952	)	(164,863	)	(23,493	)
Other operating income⁽¹⁾	5,850		1,055		202		29		10,179		2,836		404
Loss from operations	(1,831	)	(981	)	(3,644	)	(519	)	(32,768	)	(9,678	)	(1,379	)
Foreign exchange gain/(loss), net	26		12		195		28		(67	)	184		26
Interest income	269		195		211		30		953		2,593		369
Interest expenses	(209	)	(42	)	(42	)	(6	)	(650	)	(90	)	(13	)
Other (loss)/income	(5,439	)	(20	)	1,048		149		(13,966	)	1,043		149
Change in fair value of structured deposits	11		15		50		7		24		88		13
Loss before income taxes	(7,173	)	(821	)	(2,182	)	(311	)	(46,474	)	(5,860	)	(835	)
Income tax benefits/(expenses)	177		(483	)	24		3		506		(215	)	(31	)
Net loss	(6,996	)	(1,304	)	(2,158	)	(308	)	(45,968	)	(6,075	)	(866	)
Less: net (loss)/income attributable to noncontrolling interests and redeemable noncontrolling interests	(225	)	(304	)	423		60		(1,115	)	(95	)	(14	)
Net loss attributable to Aurora Mobile Limited’s shareholders	(6,771	)	(1,000	)	(2,581	)	(368	)	(44,853	)	(5,980	)	(852	)
Net loss per share, for Class A and Class B common shares:
Class A and B Common Shares – basic and diluted	(0.08	)	(0.01	)	(0.03	)	(0.00	)	(0.56	)	(0.08	)	(0.01	)
Shares used in net loss per share computation:
Class A Common Shares – basic and diluted	62,731,319		62,603,736		62,717,083		62,717,083		62,813,504		62,669,237		62,669,237
Class B Common Shares – basic and diluted	17,000,189		17,000,189		17,000,189		17,000,189		17,000,189		17,000,189		17,000,189
Other comprehensive (loss)/income
Foreign currency translation adjustments	(343	)	208		(826	)	(118	)	1,640		(540	)	(77	)
Total other comprehensive (loss)/income, net of tax	(343	)	208		(826	)	(118	)	1,640		(540	)	(77	)
Total comprehensive loss	(7,339	)	(1,096	)	(2,984	)	(426	)	(44,328	)	(6,615	)	(943	)
Less: comprehensive (loss)/income attributable to noncontrolling interests and redeemable noncontrolling interests	(225	)	(304	)	423		60		(1,115	)	(95	)	(14	)
Comprehensive loss attributable to Aurora Mobile Limited’s shareholders	(7,114	)	(792	)	(3,407	)	(486	)	(43,213	)	(6,520	)	(929	)


(1) Beginning on January 1, 2024 we classified the government grants that are operating in nature as other operating income. Comparative figures were reclassified to conform to this presentation.

AURORA MOBILE LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

	As of
	December 31, 2023		September 30, 2024
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents	114,521		100,755		14,357
Restricted cash	486		367		52
Accounts receivable	34,344		40,524		5,775
Prepayments and other current assets	20,225		20,175		2,875
Total current assets	169,576		161,821		23,059
Non-current assets:
Long-term investments	112,912		112,488		16,029
Property and equipment, net	1,433		3,179		453
Operating lease right-of-use assets	4,081		20,884		2,976
Intangible assets, net	17,941		14,697		2,094
Goodwill	37,785		37,785		5,384
Deferred tax assets	1,072		442		63
Other non-current assets	5,387		6,136		875
Total non-current assets	180,611		195,611		27,874
Total assets	350,187		357,432		50,933
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term loan	–		3,000		427
Accounts payable	21,073		27,072		3,858
Deferred revenue and customer deposits	141,518		134,810		19,210
Operating lease liabilities	4,007		5,403		770
Accrued liabilities and other current liabilities	74,682		68,015		9,692
Total current liabilities	241,280		238,300		33,957
Non-current liabilities:
Operating lease liabilities	629		16,128		2,298
Deferred tax liabilities	3,994		3,419		487
Other non-current liabilities	563		567		81
Total non-current liabilities	5,186		20,114		2,866
Total liabilities	246,466		258,414		36,823
Shareholders’ equity:
Common shares	50		50		7
Treasury shares	(2,453	)	(1,669	)	(238	)
Additional paid-in capital	1,045,397		1,046,525		149,129
Accumulated deficit	(988,669	)	(994,649	)	(141,736	)
Accumulated other comprehensive income	19,223		18,683		2,662
Total Aurora Mobile Limited’s shareholders’ equity	73,548		68,940		9,824
Noncontrolling interests	30,173		30,078		4,286
Total shareholders’ equity	103,721		99,018		14,110
Total liabilities and shareholders’ equity	350,187		357,432		50,933

AURORA MOBILE LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

	Three months ended								Nine months ended
	September 30, 2023		June 30, 2024		September 30, 2024				September 30, 2023		September 30, 2024
	RMB		RMB		RMB		US$		RMB		RMB		US$
Reconciliation of Net Loss to Adjusted Net Income/(Loss):
Net loss	(6,996	)	(1,304	)	(2,158	)	(308	)	(45,968	)	(6,075	)	(866	)
Add:
Share-based compensation	2,848		913		1,249		178		10,054		3,430		489
Reduction in force charges	619		–		–		–		2,358		–		–
Impairment of long-term investment	5,604		–		–		–		15,264		–		–
Adjusted net income/(loss)	2,075		(391	)	(909	)	(130	)	(18,292	)	(2,645	)	(377	)
Reconciliation of Net Loss to Adjusted EBITDA:
Net loss	(6,996	)	(1,304	)	(2,158	)	(308	)	(45,968	)	(6,075	)	(866	)
Add:
Income tax (benefits)/expenses	(177	)	483		(24	)	(3	)	(506	)	215		31
Interest expenses	209		42		42		6		650		90		13
Depreciation of property and equipment	868		371		361		51		4,853		1,112		158
Amortization of intangible assets	1,519		1,115		1,112		158		4,714		3,596		512
Amortization of land use right	–		–		–		–		994		–		–
EBITDA	(4,577	)	707		(667	)	(96	)	(35,263	)	(1,062	)	(152	)
Add:
Share-based compensation	2,848		913		1,249		178		10,054		3,430		489
Reduction in force charges	619		–		–		–		2,358		–		–
Impairment of long-term investment	5,604		–		–		–		15,264		–		–
Adjusted EBITDA	4,494		1,620		582		82		(7,587	)	2,368		337

AURORA MOBILE LIMITED
UNAUDITED SAAS BUSINESSES REVENUE
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))


	Three months ended								Nine months ended
	September 30, 2023		June 30, 2024		September 30, 2024				September 30, 2023		September 30, 2024
	RMB		RMB		RMB		US$		RMB		RMB		US$

Developer Services	51,534		56,406		57,485		8,191		149,071		158,640		22,606
Subscription	46,659		48,124		51,651		7,360		124,693		142,126		20,253
Value-Added Services	4,875		8,282		5,834		831		24,378		16,514		2,353
Vertical Applications	22,524		23,035		21,567		3,074		63,751		64,377		9,174
Total Revenue	74,058		79,441		79,052		11,265		212,822		223,017		31,780
Gross Profits	52,302		52,771		53,206		7,582		146,005		152,349		21,710
Gross Margin	70.6	%	66.4	%	67.3	%	67.3	%	68.6	%	68.3	%	68.3	%