iClick Interactive Asia Group Limited (ICLK) Reports Q2 Revenues Beat; Offers 3Q & FY20 Revenue Guidance

iClick Interactive Asia Group Limited (NASDAQ: ICLK) reported Q2 revenue for the quarter came in at $58.1 million versus the consensus estimate of $57.32 million.

"As China's economy begins to recover from the coronavirus pandemic, I am pleased to report that our company delivered outstanding results in the second quarter of 2020, with record high revenue, substantially reduced net loss, record high adjusted EBITDA and adjusted net income, as well as the highest gross profit for any second quarter in the company's history," said Jian "T.J." Tang, Chief Executive Officer and Co-Founder of iClick. "We reported total revenue of US$58.1 million for the quarter, an increase of 18% from the same period of last year, while our gross profit grew to US$16.6 million, up 22% from the second quarter of 2019. In the meantime, our net loss narrowed substantially to almost a break-even. Our adjusted EBITDA more than quadrupled to a new record of US$5.2 million. Our adjusted net income improved significantly to US$2.5 million in the second quarter of 2020, compared with adjusted net loss of US$0.7 million in the same period of 2019, reflecting greater economies of scale, enhanced operating efficiencies and improved cost controls."

"Amidst the macro challenges, our Enterprise Solutions business saw its third consecutive quarter of growth, generating US$5.1 million in revenue in the second quarter, an 87% increase from the second quarter of 2019. We remain confident in realizing a substantial increase in revenue from our Enterprise Solutions business in the second half of 2020. We are particularly encouraged to see our Enterprise Solutions business generate profit with a relatively high gross margin, which is set to support our overall growth and profitability for the long term."

"We are experiencing strong demand for our products and services, in particular our data analytics, which serve an important role in quickly understanding the rapidly changing online consumer behaviour, for which the coronavirus has brought additional uncertainty, not only in China, but worldwide. We are seeing that many brands are looking to China's recovering economy to make up for business that may have been lost in other regions of the globe that continue to be affected by the pandemic. We are also beginning to see that sustained changes in consumer buying habits are causing marketers to require more comprehensive online-to-offline data integration to enhance customer loyalty and generate more sales opportunities. We will continue to closely monitor the outbreak's impact on our operations but as of today we reiterate our 2020 full-year revenue guidance range, which is from US$240 million to US$260 million range, due to the consistency of demand from marketers."

GUIDANCE:

iClick Interactive Asia Group Limited sees Q3 2020 revenue of $68-70 million, versus the consensus of $68.34 million.

iClick Interactive Asia Group Limited sees FY2020 revenue of $240-260 million, versus the consensus of $249.16 million.

Based on the information available as of the date of this press release, iClick provided the following outlook for the third quarter of 2020 and the following outlook for the 2020 full year:

Third Quarter 2020:

• Revenue is estimated to be between US$66 million and US$70 million.
• Revenue from Enterprise Solutions is estimated to be between US$7.5 million and US$9.5 million.
• Gross profit is estimated to be between US$18 million and US$22 million.

Full Year 2020:

• Revenue is estimated to be between US$240 million and US$260 million.
• Gross profit is estimated to be between US$70 million and US$75 million.
• Adjusted EBITDA is estimated to between US$9 million and US$12 million.

For earnings history and earnings-related data on iClick Interactive Asia Group Limited (ICLK) click here.

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