Aurora Mobile Ltd – ADR (NASDAQ:JG) stock is moving lower in the opening session after the earnings. The stock has jumped about 10% in the past month.
Major Trigger:
Aurora Mobile Limited Announces First Quarter 2021 Unaudited Financial Results
Key Highlights:
- Revenues were RMB76.6 million (US$11.7 million), a decrease of 39% from RMB126.2 million in the same quarter of last year, mainly due to a 100% decrease in revenues from the Targeted Marketing business as the Company exited this business by the end of 2020, and offset by a strong growth in revenue of 67% from Developer Services. In particular, the revenue from Value-added-services within Developer Services increased by 189% compared to the same quarter of last year.
- Cost of revenues was RMB18.5 million (US$2.8 million), a decrease of 78% from RMB84.9 million in the same quarter of last year. The decrease was mainly due to the decrease in media cost of RMB66.4 million as the Company has completely exited from the Targeted Marketing business by the end of 2020.
- Gross profit was RMB58.1 million (US$8.9 million), an increase of 41% from RMB41.3 million in the same quarter of last year despite revenue decreased by 39% on a year-over-year basis. This is the result of our successful strategic shift in focus from a traditional Targeted Marketing model to a pure SaaS business model. Gross profit in first quarter of 2021 was 100% contributed from SAAS Businesses.
- Net Loss was RMB40.2 million (US$6.1 million), compared with RMB51.0 million in the same quarter of last year.
Market Reactions
As of 10:32, JG stock decreased by 6.64% at $3.16. Total volume so far stood at 906K shares, compared to its average volume of 1.16 million shares. The stock moved within a range of $3.1300 – 3.4000 after opening at $3.3985.
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