Qutoutiao (QTT) Reports Q4 Loss of $0.27

Qutoutiao (NASDAQ: QTT) reported Q4 EPS of ($0.27). Revenue for the quarter came in at $238.2 million.

Fourth Quarter 2019 Highlights

• Combined average MAUs1 reached 137.9 million, representing an increase of 46.9% from 93.8 million in the fourth quarter of 2018, compared to 133.9 million in the previous quarter.
• Combined average DAUs2 reached 45.7 million, representing an increase of 47.8% from 30.9 million in the fourth quarter of 2018, compared to 42.1 million in the previous quarter.
• Average daily time spent per DAU was 59.4 minutes, compared to 63.0 minutes in the fourth quarter of 2018 and 61.3 minutes in the previous quarter.
• Net revenues increased 25.0% year-over-year to RMB1,658.4 million (US$238.2 million), compared to RMB1,406.9 million in the previous quarter, and were above the high end of the Company’s guided range.
• Net loss was RMB551.4 million (US$79.2 million), compared to net loss of RMB398.0 million in the fourth quarter of 2018 and net loss of RMB888.4 million in the third quarter of 2019. Net loss margin was 33.2%, compared to 30.0% in the fourth quarter of 2018 and 63.1% in the third quarter of 2019.
• Non-GAAP net loss3 was RMB470.2 million (US$67.5 million), compared to non-GAAP net loss of RMB366.7 million in the fourth quarter of 2018 and non-GAAP net loss of RMB833.1 million in the third quarter of 2019. Non-GAAP net loss margin was 28.4%, compared to 27.6% in the fourth quarter of 2018 and 59.2% in the third quarter of 2019.

Mr. Eric Siliang Tan, Chairman and Chief Executive Officer of Qutoutiao, commented, “We closed fiscal year 2019 with a strong fourth quarter with all key operating metrics trending in the positive direction on a quarter to quarter basis. On the other hand, we continued to make investments in technology and content that we believe are crucial to our long-term success.”

“The outbreak of COVID-19 across the globe has put pressure on the overall advertising market in the near-term as advertising budget in general could be constrained. However, the ongoing structural trend of advertising budget shifting towards performance-based adverts will see us as a clear beneficiary and further strengthen our competitive position in the market. ”Mr. Tan concluded.

Mr. Xiaolu Zhu, Chief Financial Officer of Qutoutiao, added, “We are delighted to see that our margins improved significantly compared to the previous quarter with improved monetization efficiency, contributions from new revenue sources, as well as a disciplined approach towards costs and expenses. We are confident that this trend will continue as we take advantage of the inherent operational leverage in the business.”

For earnings history and earnings-related data on Qutoutiao (QTT) click here.

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