iClick Interactive Asia Group Limited (ICLK) Tops Q4 EPS by 0.14c, Revenues Beat

iClick Interactive Asia Group Limited (NASDAQ: ICLK) reported Q4 EPS of $0.0214, $0.0014 better than the analyst estimate of $0.02. Revenue for the quarter came in at $78.27 million versus the consensus estimate of $74.89 million.

Fourth Quarter 2020 Results:

• Revenue for the fourth quarter of 2020 grew to US$78.7 million, up 39% from US$56.7 million for the same period of the prior year, attributable to the increase in contributions from existing Marketing Solutions and Enterprise Solutions business segments.
• Revenue from Marketing Solutions grew to US$68.1 million for the fourth quarter of 2020, up 28% from US$53.1 million for the fourth quarter of 2019, primarily as the result of growing market demand from specified action marketing campaigns.
• Revenue from Enterprise Solutions was US$10.6 million for the fourth quarter of 2020, up approximately 193% from US$3.6 million for the fourth quarter of 2019, primarily due to the increasing need for online and offline consumer behavior data integration.
• Gross profit for the fourth quarter of 2020 was US$23.3 million, representing a 36% increase compared with US$17.2 million for the fourth quarter of 2019, mainly due to continued expansion of the Company's Marketing Solutions and contribution from higher-margin Enterprise Solutions.
• Total operating expenses were US$24.5 million for the fourth quarter of 2020, up slightly when compared to US$22.4 million for the fourth quarter of 2019 and mainly attributed to the increase in share-based compensation expense of US$1.9 million.
• Operating loss was US$1.2 million for the fourth quarter of 2020, compared with an operating loss of US$5.3 million for the fourth quarter of 2019. This improvement was a result of the strong growth in gross profit that was partially offset by the increase in share-based compensation expense.
• Net income totalled US$0.6 million for the fourth quarter of 2020, compared with net loss of US$6.0 million for the fourth quarter of 2019. This improvement was mainly attributed to increased revenue and gross profit.
• Net income attributable to the Company's shareholders per basic and diluted ADS for the fourth quarter of 2020 was US$0.0140 and US$0.0132, respectively, compared with a net loss per basic and diluted ADS of US$0.1003 for the fourth quarter of 2019.
• Adjusted EBITDA for the fourth quarter of 2020 was US$5.1 million, compared with US$2.5 million for the fourth quarter of 2019. For a reconciliation of the Company's adjusted EBITDA from net income/(loss), its most comparable GAAP measure, please refer to "Unaudited Reconciliations of GAAP and Non-GAAP Results" in the accompanying financial tables.
• Adjusted net income for the fourth quarter of 2020 was US$2.1 million, compared with US$0.1 million in the fourth quarter of 2019. For a reconciliation of the Company's adjusted net income from net income/(loss), its most comparable GAAP measure, please refer to "Unaudited Reconciliations of GAAP and Non-GAAP Results" in the accompanying financial tables.
• Gross billing[2] for the fourth quarter of 2020 US$219.9 million, compared with US$223.4 million in the fourth quarter of 2019. This decline was primarily due to the Company's efforts to optimize its client base to achieve better credit control and to retain and attract customers with a strong financial position amid macroeconomic uncertainties.
• As of December 31, 2020, the Company had cash and cash equivalents, time deposits and restricted cash of US$94.5 million, compared with US$61.1 million as of December 31, 2019.

Jian "T.J." Tang, Chief Executive Officer and Co-Founder of iClick, noted: "2020 was another record year for iClick, as we continue to evolve into an integrated Enterprise and Marketing Cloud Platform in China. Our business achieved record results in gross billings, revenues, gross profit and adjusted EBITDA. More importantly, for the first time ever, we reported positive full-year adjusted net income. This is a tremendous corporate achievement, and it occurred in a year when the COVID-19 pandemic greatly affected businesses across the world, including in China."

"We are excited to report another year of rapid growth from our Enterprise Solutions business. Revenue in 2020 from this segment grew by 177% to US$28.9 million from $10.4 million in 2019. Resilient growth in Enterprise Solutions remains a major focus and strategic goal, and we have launched a number of initiatives to ensure this business segment continues its growth trajectory. Marketing Solutions business remains a solid foundation for the Company, with revenue growing by 20% in 2020, a very strong performance given the pandemic's impact."

"While we expect continued growth in both Marketing Solutions and Enterprise Solutions in the coming quarters and beyond, we also expect additional partnerships with other global technology leaders to further complement our product offerings and capabilities, especially in Enterprise Solutions."

"For example, we recently announced a strategic partnership with Baozun, a leading brand e-commerce partner in China, to jointly establish an industry-leading private domain traffic e-commerce solution based on the Tencent ecosystem. Beyond the obvious benefits of partnering with a recognized technology leader to expand our offerings, we also benefit from being able to cross-sell to Baozun's strong brand partners. This collaboration will accelerate conversion of our existing Marketing Solutions clients to Enterprise SaaS Solutions thanks to the jointly developed turnkey solutions we will be able to provide. Finally, this partnership allows us to focus our resources on developing the standard SaaS products we will use to penetrate the mid-tier client segment, which is yet another growth initiative for the Enterprise Solutions segment."

"In summary, 2020 was a fantastic year for iClick, especially given the global impact of the COVID-19 pandemic. We are excited about our prospects for 2021 and beyond and are resolute in our commitment to growing both the Marketing Solutions and Enterprise Solutions segment organically and via partnerships and investments," T.J. concluded.

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

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