CooTek Cayman(CTKYY) - 2021 Q4 - Annual Report

Financial Performance - Net revenues for Q3 2021 were US$51.1 million, a decrease of 52% from US$105.7 million in Q3 2020[6] - Gross profit was US$42.0 million, down 58% from US$98.9 million in the same period last year, with a gross profit margin of 82.2%[11] - CooTek reported net revenues of $51,141 thousand for the three months ended September 30, 2021, a decrease of 38.5% compared to $83,217 thousand for the same period in 2020[31] - The gross profit for the three months ended September 30, 2021, was $41,976 thousand, representing a gross margin of 82.0%[31] - CooTek's net loss for the three months ended September 30, 2021, was $444 thousand, compared to a net income of $264 thousand for the same period in 2020[31] User Engagement - Average daily active users (DAUs) of portfolio products were 18.7 million, a decrease of 32% from 27.7 million in September 2020[6] Advertising Revenue - Mobile advertising revenues were US$49.8 million, a decrease of 53% from US$104.8 million in Q3 2020[8] Operating Expenses - Sales and marketing expenses were US$28.7 million, a decrease of 73% from US$107.8 million in the same period last year[12] - The total operating expenses for the three months ended September 30, 2021, were $40,983 thousand, a decrease of 43.5% from $72,916 thousand in the previous quarter[31] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash as of September 30, 2021, were US$36.2 million, down from US$39.0 million as of June 30, 2021[19] - Net cash inflow from operating activities was US$5.0 million, compared to a net cash outflow of US$14.4 million in Q3 2020[20] - The company reported a net cash provided by operating activities of $4,985 thousand for the three months ended September 30, 2021, compared to a net cash used in operating activities of $17,540 thousand in the previous quarter[39] Future Outlook - The company launched 14 new mobile games in Q3 2021 and has a pipeline of 15-20 games for Q4 2021[3] - The company is focusing on expanding its overseas mobile games segment, which has shown promising business upside since Q2 2021[3] Financial Position - Cash and cash equivalents as of September 30, 2021, were $36,011 thousand, a slight increase from $35,667 thousand as of June 30, 2021[33] - Total current liabilities decreased to $82,243 thousand as of September 30, 2021, from $100,875 thousand as of June 30, 2021[33] - CooTek's accumulated deficit increased to $213,544 thousand as of September 30, 2021, from $213,099 thousand as of June 30, 2021[36] - CooTek's total assets decreased to $71,940 thousand as of September 30, 2021, from $87,502 thousand as of June 30, 2021[33] Adjusted Financial Metrics - Adjusted net income (Non-GAAP) was US$0.4 million, compared to an adjusted net loss of US$20.5 million in the same period last year[17] - Adjusted EBITDA for the three months ended September 30, 2021, was $3,317 thousand, compared to an Adjusted EBITDA of $3,428 thousand in the previous quarter[41]