Form 6-K Aurora Mobile Ltd For: Mar 19

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2021

Commission File Number: 001-38587

Aurora Mobile Limited

14/F, China Certification and Inspection Building

8 Keji South 12th Road, Nanshan District

Shenzhen, Guangdong 518057

People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 19, 2021

Exhibit Index

Exhibit 99.1—Press Release     

Exhibit 99.1

Aurora Mobile Limited Announces Fourth Quarter and Fiscal Year 2020

Unaudited Financial Results

SHENZHEN, CHINA, March 18, 2021 – Aurora Mobile Limited (“Aurora Mobile” or the “Company”) (NASDAQ: JG), a leading mobile developer service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020.

Fourth Quarter 2020 Financial Highlights (SAAS Businesses^# only)

Fourth Quarter 2020 Financial Highlights (for the Group as a whole)

Fiscal Year 2020 Financial Highlights (SAAS Businesses^# only)

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Fiscal Year 2020 Financial Highlights (for the Group as a whole)

Fourth Quarter 2020 Operational Highlights

Mr. Weidong Luo, Chairman and Chief Executive Officer of Aurora Mobile, commented, “The year 2021 marks the 10th anniversary of Aurora Mobile. Looking back, we are extremely proud of what we have achieved in the past decade in helping all our mobile APP customers in China to improve their operations, grow, and now monetize. I’d like to use this opportunity to thank all the mobile APP developers who have been alongside us, trusted us and co-operated with us over these 10 years. I believe the next 10 years will be even greater for our customers thanks to the new exciting and innovative product and service offerings from Aurora Mobile.

In reflection, the year 2020 was a very extraordinary year in which an unexpected pandemic reshaped the world and changed how people live their lives and how companies conduct their businesses in so many ways. During the crisis, we persistently carried out our core strategies to serve our developer customers by helping them with their business operations, user growth and the monetization of their user base. Based on the solid business foundation built with our developer subscription services, we ventured into new business territory by innovatively creating our JG Alliance business lines to help our developer customers better monetize their user traffic. The JG Alliance became a great success as we achieved a phenomenal 15X growth year-over-year in revenue and the JG Alliance DAUs grew rapidly from NIL to 130 million in merely 5 quarters.

Meanwhile, we completed the wind down of our targeted marketing business. Despite being the largest revenue contributor in 2019, we felt the Targeted Marketing business did not fit with our company’s long term growth direction and our competitive strength. I’m proud to announce that by the end of the 4th quarter 2020, our business transition was 100% complete and we have successfully transitioned our company to a pure SaaS based business model.

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On a SAAS Businesses basis, which include only the Developer Services and Vertical Applications businesses, we achieved revenue of RMB 76.6 Million in the quarter, at the higher end of our guidance range. The quarterly revenue grew 17% year-over-year mainly due to the strong 46% growth in Developer services, partially offset by the decline in vertical applications, which have been impacted by COVID 19. Nevertheless, revenues from Vertical Applications have seen solid sequential growth for three consecutive quarters, as customer demand in this segment continued to recover. On a quarter-over-quarter basis, SAAS Businesses revenue recorded a strong sequential growth of 17% to RMB 76.6 Million. In Q4 2020, our SAAS Businesses contributed 72% of total revenue, up from 60% in Q3 2020. Going forward, SAAS Businesses will contribute 100% of our revenues.

On a SAAS Businesses basis, gross profit has also shown strong growth of 28% year-over-year to RMB 58.7 Million for the quarter ended December 31, 2020, due to both the revenue growth of 17% year-over-year, and margin expansion from 70% to 77% year over year. We expect our gross margin in 2021 to remain above 70% throughout the year. For Q4 2020, SAAS Businesses have contributed 98% of the gross profit, up from 96% in Q3 2020. Going forward, SAAS Businesses will contribute 100% of our gross profit.

During the year, we also put greater emphasis on product development and innovation. We successfully launched three new heavy-weight products. First, we enhanced our JG Alliance product portfolio by adding a new In-App message product. And in our developer subscription business, we launched our UMS and VAAS products to address new critical needs from developers and businesses.

JG UMS (Unification Messaging System) enables businesses to engage with their targeted customers more efficiently and cost effectively through one integrated messaging management platform, therefore improving operational simplicity while reducing costs with flexible routing strategy management.

JG VaaS (Video-as-a-Service) on the other hand, enables mobile app developers to provide relevant user-friendly short video content in their apps, therefore improving user experience, increasing user engagement and stickiness, and enhancing monetization capability. It’s a distributed way for users to consume short videos anytime and anywhere, rather than have to go to certain short-video apps to view short videos in a centralized fashion.

Both UMS and VAAS are offered in a subscription fee based model, where our customers pay annual fees based on the features they like to subscribe to. We believe both products can greatly expand our paying customer base and ARPU for our developer subscription business over time.

Mr. Fei Chen, President of Aurora Mobile, added, “For the quarter ended December 31, 2020, we recorded RMB 52.5 million in revenue for Developer Services which represented 46% growth on a year-over-year basis. The significant revenue growth in Developer Services was fueled by 28% and 14% growth in customer numbers and ARPU respectively. For Subscription services within the Developer Services, we continued to see more customers signing up to our suite of developer services. Subscription Services revenue was RMB 35.1 million, an increase of 7% year-over-year and 16% quarter-over-quarter, primarily driven by the increase in customer numbers.

Value-Added-Services within Developer Services, which include revenues from JG Alliance services and Advertisement SaaS, recorded another strong quarter as revenues grew by 29% quarter-over-quarter and 432% year-over-year.

The Value-Added-Services full year revenue grew from RMB 3.3 million in financial year 2019 to RMB 52.5 million. The 15X annual revenue growth demonstrates the large potential market opportunity and growing demand of our Value-Added-Services.

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In the fourth quarter, the revenue from Value-Added-Services was RMB 17.4 million compared to RMB 3.3 million in the same quarter a year ago. This 432% year-over-year revenue growth is attributable to the growth in both the supply and demand sides of the JG Alliance. On the supply side, we continued to see many APPs joining our JG Alliance traffic network. The total number of APPs and DAU within our network exceeded 200 apps, and 130 million DAU in the fourth quarter, representing 100% and 30% growth from Q3’20, respectively. The continued growth in the number of APPs and DAUs is proof of the strong market demand for JG Alliance products.

On the demand side, mini program developers continued to play a pivotal role as traffic consumer of JG Alliance by contributing 39% of JG Alliance revenue in the quarter. Our JG Alliance’s ever-increasing traffic pool resources and innovative & unique advertising formats have given our customers a brand new effective and efficient media for user acquisition and retargeting needs.

The combined revenues from Vertical Applications, including market intelligence, financial risk management and iZone, increased by 10% sequentially from RMB21.9 million in the 3rd quarter of this year to RMB24.1 million. Revenue from Vertical Applications recorded sequential growth every quarter in 2020.

Mr. Shan-Nen Bong, Chief Financial Officer of Aurora Mobile, added, “Operationally and financially, we have had another excellent quarter. The highlights include the SAAS Businesses’ revenue and gross profit contributions recording solid double digit year-over-year growth in all 4 quarters in 2020; the Value-Added-Services achieved revenue growth of 432% year-over-year in 4Q 2020; we recorded yet another record high group gross margin of 57% in Q4 2020, up from 47% in 3Q 2020; and 98% of the current quarter gross profit was contributed by the SAAS businesses. Adjusted EBITDA improved 22% to negative RMB 17.1 million from negative RMB 22 million in Q3’2020. This quarter, we achieved the best quarterly Adjusted EBITDA result in 2020.

On the balance sheet, accounts receivable turnover days continued to improve, decreasing significantly from 70 days in Q4 2019, and 45 days in Q3 2020 to 37 days in Q4 2020. The deferred revenue balance, which represents cash collected in advance from customers, increased significantly by 41% year-over-year to RMB 109 million as of December 31, 2020. In the fourth quarter of 2020, our operating cash flow was once again positive. This is the third consecutive quarter since Q2 2020 that we have recorded net operating cash inflow. The improvement in each of these balance sheet items were primarily driven by our shift to the SAAS business model.

We are now beginning a new chapter in the Aurora Mobile story where, from January 2021, all our revenues will be 100% contributed by the SAAS businesses only. Based on the updates given above, we are demonstrating that the transition is beneficial and healthy to our financial performance as a whole.”

Fourth Quarter 2020 Financial Results

Revenues were RMB106.0 million (US$16.2 million), a decrease of 42% from RMB182.8 million in the same quarter of last year, mainly due to a 75% 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 46% from Developer Service. In particular, the revenue from Value-Added-Services within Developer Service increased by 432% compared to the same quarter of last year.

Cost of revenues was RMB45.9 million (US$7.0 million), a decrease of 63% from RMB122.4 million in the fourth quarter of 2019. The decrease was mainly due the decrease in media cost as the Company exited from the targeted marketing business of RMB73.2 million and a RMB2.0 million decrease in bandwidth cost.

Gross profit was RMB60.1 million (US$9.2 million), at a relatively stable level compared to RMB60.4 million in the fourth quarter of 2019 despite revenue decreasing by 42% on a year-over-year basis. This is the result of our successful strategic shift in focus from a traditional targeted marketing model to SaaS Business model.

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Total operating expenses were RMB106.5 million (US$16.3 million), an increase of 3% from RMB103.3 million in the same quarter of last year.

Net Loss was RMB89.9 million (US$13.8 million), compared with RMB40.2 million in the same quarter of last year, and RMB43.7 million in the third quarter of 2020.

Adjusted net loss (non-GAAP) was RMB29.4 million (US$4.5 million), compared with RMB20.9 million in the same period of last year, and RMB36.9 million in the third quarter of 2020.

Adjusted EBITDA (non-GAAP) was negative RMB17.1 million (US$2.6 million) compared with negative RMB8.8 million for the same period of last year, and negative RMB22.0 million in the third quarter of 2020.

The cash and cash equivalents, restricted cash and short-term investment remained relatively stable from RMB436.6 million as of September 30, 2020 to RMB436.2 million (US$66.9 million) as of December 31, 2020.

Fiscal Year 2020 Financial Results

Revenues were RMB471.6 million (US$72.3 million), a decrease of 48% from RMB906.5 million in 2019, mainly due to the decrease in targeted marketing revenue by 69% as the Company made an orderly exit from the business throughout 2020 and the impact was offset by the increase in developer service revenue by 80%. In particular, the annual revenue from Value-Added-Service within Developer Service increased by 1472% compared to the same period of last year.

Cost of revenues was RMB265.4 million (US$40.7 million), a decrease of 59% from RMB649.6 million in 2019. The decrease was mainly due to the decreases in media cost, as the Company exited from the targeted marketing business, by RMB381.2 million and bandwidth cost by RMB6.2 million.

Gross profit was RMB206.2 million (US$31.6 million), a decrease of 20% from RMB256.9 million year-over-year, mainly due to the decrease of targeted marketing revenue during the same period.

Total operating expenses were RMB396.0 million (US$60.7 million), a decrease of 2% from RMB404.1 million last year.

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Loss from operations was RMB189.8 million (US$29.1 million), compared with loss of RMB147.2 million in 2019.

Net Loss was RMB225.1 million (US$34.5 million), compared with net loss of RMB109.8 million in 2019.

Adjusted net loss (non-GAAP) was RMB141.6 million (US$21.7 million), compared with loss of RMB73.6 million in 2019.

Adjusted EBITDA (non-GAAP) was negative RMB87.7 million (US$13.4 million) compared with negative RMB29.7 million in 2019.

Business Outlook

For the financial year ending December 31, 2021, the Company expects the total revenue to be between RMB380 million and RMB400 million, representing year-over-year growth of approximately 47% to 55%; and gross margin to be above 70% for the full year.

Please note that, for meaningful comparison purposes, the prior year revenue number used to calculate the growth percentage excludes revenue from Targeted Marketing business. The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Update on Share Repurchase

As of December 31, 2020, the Company had repurchased a total of 920,606 ADS, no ADS were repurchased during the fourth quarter in 2020.

Conference Call

The Company will host an earnings conference call on Thursday, March 18, 2021 at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Hong Kong time on the same day).

Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. 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: http://apac.directeventreg.com/registration/event/6439025

A telephone replay of the call will be available after the conclusion of the conference call through 9:00 p.m. U.S. Eastern Time, March 25, 2021.

The dial-in details for the replay are as follows:

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

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses two non-GAAP measures, adjusted net 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 loss as net loss excluding share-based compensation, reduction in force charges, impairment of long-term investment and impairment of long-lived assets, fair value gain of long-term investment. The Company defines adjusted EBITDA as net loss excluding interest expense, depreciation of property and equipment, amortization of intangible assets, income tax (expense) benefit, share-based compensation, reduction in force charges, impairment of long-term investment and impairment of long-lived assets.

The Company believes that adjusted net 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 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 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 periodic 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-model; its ability 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.

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About Aurora Mobile Limited

Founded in 2011, Aurora Mobile is a leading mobile developer service provider in China. Aurora Mobile is committed to providing efficient and stable push notification, one-click verification, and APP traffic monetization services to help developers improve operational efficiency, grow and monetize. Meanwhile, Aurora Mobile’s vertical applications have expanded to market intelligence, financial risk management, and location-based intelligence, empowering various industries to improve productivity and optimize decision-making.

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

For investor and media inquiries, please contact:

Aurora Mobile Limited

[email protected]

Christensen

In China

Mr. Eric Yuan

Phone: +86-10-5900-1548

E-mail: [email protected]

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: [email protected]

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 RMB6.5250 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 December 31, 2020

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AURORA MOBILE LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)

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AURORA MOBILE LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (continued)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

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AURORA MOBILE LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

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AURORA MOBILE LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (continued)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

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AURORA MOBILE LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

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AURORA MOBILE LIMITED

UNAUDITED SAAS BUSINESSES REVENUE

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

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