CooTek Cayman(US:CTKYY)2021-09-07 16:00Financial Performance - Net revenues for Q2 2021 were US$83.2 million, a decrease of 34% year-over-year from US$126.4 million, but an increase of 2% quarter-over-quarter from US$81.6 million[7]. - Gross profit was US$74.4 million, down 38% from US$120.7 million year-over-year, with a gross profit margin of 89.4% compared to 95.5% in the same period last year[11]. - The company reported a net loss of US$12.4 million for the second quarter of 2021, compared to a net income of US$3.1 million in the same period of 2020[32]. - Adjusted net loss for the second quarter of 2021 was US$11.1 million, while Adjusted EBITDA was a loss of US$9.9 million[32]. - Adjusted net income (Non-GAAP) was US$1.1 million, compared to an adjusted net loss of US$11.1 million in the previous quarter and adjusted net income of US$4.5 million in the same period last year[18]. User Metrics - Average daily active users (DAUs) of portfolio products were 23.5 million, a decrease of 2% from 23.9 million in June 2020, while monthly active users (MAUs) were 70.0 million, down 16% from 83.5 million[6]. Revenue Streams - Revenues from the IP business of Fengdu Novel recorded 194% quarter-over-quarter growth, indicating strong performance in content distribution[4]. - Mobile advertising revenues were US$82.1 million, a decrease of 35% from US$125.8 million in Q2 2020, but an increase of 2% from US$80.4 million in the previous quarter[8]. Expenses - Research and development expenses increased by 20% year-over-year to US$9.7 million, accounting for 12% of total net revenues[13]. - Sales and marketing expenses were US$59.8 million, a decrease of 44% year-over-year, accounting for 72% of total revenues, down from 84% in the same period last year[12]. - Operating expenses for the second quarter of 2021 were US$72.9 million, a decrease of 38.1% compared to US$117.8 million in the same period of 2020[32]. Cash Flow and Assets - Cash, cash equivalents, and restricted cash as of June 30, 2021, were US$39.0 million, down from US$56.1 million as of March 31, 2021[20]. - Net cash outflow from operating activities during Q2 2021 was US$17.5 million, compared to a net cash inflow of US$5.4 million in the same period in 2020[21]. - Total current assets increased to US$79.4 million as of June 30, 2021, compared to US$71.4 million as of March 31, 2021[34]. - The company had a net cash outflow from financing activities of US$0.1 million in Q2 2021, compared to a net cash inflow of US$3.1 million in Q2 2020[22]. Shareholder Actions - The company repurchased 1.4 million ADSs for a total of US$6.0 million under its share repurchase program, which was terminated on May 17, 2021[23]. Liabilities and Equity - The company’s total liabilities decreased to US$101.5 million as of June 30, 2021, down from US$117.9 million as of March 31, 2021[34]. - Net income for the three months ended June 30, 2021, was $264, a significant improvement from a net loss of $12,398 in the previous quarter[41]. Other Financial Metrics - Interest income for the three months ended June 30, 2021, was $1,336, a notable increase from a net expense of $211 in the previous quarter[41]. - Depreciation and amortization for the six months ended June 30, 2021, totaled $1,844, compared to $1,540 for the same period in 2020[41]. - Share-based compensation related to share options and restricted share units for the three months ended June 30, 2021, was $841[41]. - The company reported zero tax impact to the non-GAAP adjustments[41].