Press Releases

« Back
Printer Friendly Version View printer-friendly version
iClick Interactive Asia Group Limited Reports Second Quarter 2018 Unaudited Financial Results

HONG KONG, Aug. 23, 2018 (GLOBE NEWSWIRE) -- iClick Interactive Asia Group Limited (“iClick” or the “Company”) (NASDAQ: ICLK), a leading independent online marketing and data technology platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial and Operational Highlights:

  Three Months Ended June 30,
  2017  2018   
  (US$ in
thousands)
(US$ in
thousands)
Percentage change
  (Unaudited)
 
Financial Metrics:      
Net revenues      
Net revenues from mobile audience solutions 24,092 37,812 56.9%
Net revenues from other solutions 5,765 4,885 (15.3%)
Total net revenues 29,857 42,697 43.0%
Adjusted EBITDA1 30 851  
Adjusted net loss1 (2,123) (1,138)  
Diluted adjusted net loss per ADS1 (0.10) (0.02)  
Operating Metrics:      
Gross billing      
Gross billing from mobile audience solutions 38,038 88,898 133.7%
  Gross billing from other solutions 18,503 16,491 (10.9%)
Total gross billing 56,541 105,389 86.4%
       

“We are pleased to announce another quarter of strong growth and encouraging development with historical record highs in many key financial and operational metrics. During the second quarter of 2018, total gross billing and net revenues reached new highs of $105.4 million and $42.7 million and achieved solid organic growth by increasing 86.4% and 43.0%, respectively from the second quarter of 2017,” said Mr. Sammy Hsieh, Chief Executive Officer and Co-Founder of iClick. “During the second quarter, our mobile audience solutions continued robust growth momentum with gross billing and net revenues realizing 133.7% and 56.9% year-over-year growth. More excitingly, with our efficient operational management, our adjusted EBITDA increased significantly to $0.85 million from $0.03 million for the same period last year. As a result, our adjusted net loss was further narrowed during the quarter. In addition, we have announced engagements with Ctrip and Bilibili to further enrich our audience profiles, and we remained active in our international expansion by engaging with MezzoMedia, a leading digital marketing company in Korea, which set the foundation for the opening of our new Korean Office. We have also been promoting our newly launched Business Intelligence solutions to clients in industries including retail, online education, and real estate. These achievements reaffirmed our confidence in driving efficient growth for the second half of 2018 as we continue the extension of our sophisticated data technology and expand collaboration with our existing and new clients,” Mr. Hsieh concluded.

__________
1 For more details on these non-GAAP financial measures, please see the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

Second quarter 2018 Financial and Operational Updates:

Net revenues for the second quarter of 2018 increased by 43.0% to US$42.7 million from US$29.9 million in the second quarter of 2017, primarily as a result of an increase in net revenues from mobile audience solutions and partially offset by a decrease in net revenues from other solutions.

Net revenues from mobile audience solutions for the second quarter of 2018 increased by 56.9% to US$37.8 million from US$24.1 million in the second quarter of 2017, primarily as a result of the strategic focus shifting to capture more market demand in mobile audience solutions.

Net revenues from other solutions for the second quarter of 2018 decreased by 15.3% to US$4.9 million from US$5.8 million in the second quarter of 2017, primarily as a result of the continued strategic shift away from other solutions.

Gross profit for the second quarter of 2018 increased by 42.6% to US$9.9 million from US$7.0 million in the second quarter of 2017, primarily as a result of an increase in gross profit from mobile audience solutions.

Total operating expenses increased by 20.5% to US$11.1 million for the second quarter of 2018 from US$9.2 million for the second quarter of 2017. The increase was primarily due to increased marketing activities and use of professional services after the Company’s IPO.

Operating loss for the second quarter of 2018 was US$1.2 million, decreased by 48.2% from US$2.2 million during the second quarter of 2017, as a result of the above.

Net loss totaled US$2.6 million for the second quarter of 2018, decreasing from US$10.2 million for the second quarter of 2017. Net loss attributable to the Company’s shareholders per diluted ADS was US$0.05, compared with US$0.40 in the second quarter of 2017.

Gross billing2 reached US$105.4 million during the second quarter of 2018, an increase of 86.4% from the second quarter of 2017, primarily as a result of significant growth in mobile audience solutions. Gross billing from mobile audience solutions was US$88.9 million during the second quarter of 2018, an increase of 133.7% from the second quarter of 2017, as a result of clients generating larger mobile marketing spend. Gross billing from other solutions was US$16.5 million during the second quarter of 2018, a decrease of 10.9% from the second quarter of 2017, primarily as a result of the strategic focus shifting to mobile audience solutions.

Adjusted EBITDA for the second quarter of 2018 was US$0.85 million, compared with US$0.03 million during the second quarter of 2017, primarily as a result of a substantial increase of the gross profit. For a reconciliation of the Company’s adjusted EBITDA to net loss, its most comparable GAAP measure, please refer to “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Adjusted net loss for the second quarter of 2018 attributable to the Company’s shareholders, which excludes share-based compensation expenses, fair value loss on derivative liabilities, and other losses/(gains), decreased to US$1.1 million from US$2.1 million in the second quarter of 2017. For a reconciliation of the Company’s adjusted net loss to net loss, its most comparable GAAP measure, please refer to “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
As of June 30, 2018, the Company’s cash and cash equivalents amounted to US$26.1 million, compared with US$19.4 million cash and cash equivalents and US$25.0 million time deposit as of December 31, 2017.

__________
2 Gross billing is defined as the aggregate dollar amount that clients pay the Company after deducting rebates paid and discounts given to clients.

Outlook

Based on the information available as of the date of this press release, the Company provides the following outlook:

  • Net revenues are estimated to be between US$175 million and US$180 million for the full year 2018, representing a growth between 39.7% to 43.7% from the full year 2017.

  • Gross billing is estimated to be between US$380 million and US$420 million for the full year 2018, representing a growth between 53.1% to 69.2% from the full year 2017.

The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, which are all subject to change.

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on August 23, 2018 (8:00 PM Beijing/Hong Kong time on August 23, 2018).

Dial-in details for the earnings conference call are as follows:

United States: +1-845-675-0437
International: +65-6713-5090
Hong Kong: +852-3018-6771
China: 400-620-8038
Conference ID: 2783225

Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for “iClick Interactive.”

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.i-click.com.

A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until August 30, 2018, by dialling the following telephone numbers:

United States: +1-855-452-5696
International: +61-2-8199-0299
Hong Kong: 800-963-117
China: 400-632-2162
Replay Access Code: 2783225

About iClick Interactive Asia Group Limited

iClick Interactive Asia Group Limited (NASDAQ:ICLK) is an independent online marketing and data technology platform that connects worldwide marketers with audiences in China. Built on cutting-edge technologies, our proprietary platform possesses omni-channel marketing capabilities and fulfills various marketing objectives in a data-driven and automated manner, helping both international and domestic marketers reach their target audiences in China. Headquartered in Hong Kong, iClick was established in 2009, currently operating in nine locations worldwide including Asia and London. 
For more information, please visit http://ir.i-click.com.

Non-GAAP Financial Measures

The Company uses adjusted EBITDA, adjusted net loss, and diluted adjusted net loss per ADS, each a non-GAAP financial measure, in evaluating the Company’s operating results and for financial and operational decision making purposes.

The Company believes that adjusted EBITDA, adjusted net loss, and diluted adjusted net loss per ADS help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in net loss. The Company believes that adjusted EBITDA and adjusted net loss provide useful information about the Company’s operating results, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

Adjusted EBITDA, adjusted net loss, and diluted adjusted net loss per ADS should not be considered in isolation or construed as an alternative to net loss or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA, adjusted net loss, and diluted adjusted net loss per ADS presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this press release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. 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: the Company's fluctuations in growth; its success in implementing its mobile strategies; relative percentage of its gross billing recognized as net revenues under the gross and net models; its ability to retain existing clients or attract new ones; its ability to retain content distribution channels and negotiate favourable contractual terms; market competition, including from independent online marketing technology platforms as well as large and well-established internet companies; market acceptance of online marketing technology solutions; effectiveness of its algorithms and data engines; its ability to collect and use data from various sources; and general economic conditions in China. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:
In China:
iClick Interactive Asia Group Limited
Jie Jiao
Phone: +852-3700-9065
E-mail: ir@i-click.com

The Piacente Group, Inc.
Ross Warner
Tel: +86 (10) 5730-6200
E-mail: iclick@tpg-ir.com

In the United States:
The Piacente Group, Inc.  
Brandi Piacente
Tel: +1-212-481-2050
E-mail: iclick@tpg-ir.com

ICLICK INTERACTIVE ASIA GROUP LIMITED
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(US$’000, except share data and per share data, or otherwise noted, unaudited)

                       
  Three Months Ended 
June 30, 
Six Months Ended 
June 30, 
    2017  2018    2017    2018 
                       
Net revenues3 29,857     42,697     55,741     77,926  
Cost of revenues3 (22,904   (32,785   (42,431   (59,891
Gross profit 6,953     9,912     13,310     18,035  
                       
Operating expenses                      
Research and development expenses (1,463   (1,482   (3,234   (2,877
Sales and marketing expenses (5,588   (6,276   (12,205   (12,167
General and administrative expenses (2,135   (3,311   (4,509   (5,875
Total operating expenses (9,186   (11,069   (19,948   (20,919
Operating loss (2,233   (1,157   (6,638   (2,884
Interest expense (141   (133   (286   (154
Other gains/(losses), net 40     (744   7     1,336  
Fair value loss on derivative liabilities (7,297       (14,727    
Loss before income tax expense (9,631   (2,034   (21,644   (1,702
Income tax expenses (610   (572 )   (601   (1,016 )
Net loss (10,241   (2,606   (22,245   (2,718
Accretion to convertible redeemable preferred shares redemption value (201       (401    
Accretion to redeemable ordinary shares redemption value (427       (842    
                       
Net loss attributable to iClick Interactive Asia Group Limited’s ordinary shareholders (10,869   (2,606   (23,488   (2,718
                       
Net loss (10,241   (2,606   (22,245   (2,718
Other comprehensive loss:                      
Foreign currency translation adjustment, net of US$nil tax (162   (1,319   (171   (1,534
                       
Comprehensive loss attributable to iClick Interactive Asia Group Limited (10,403   (3,925   (22,416   (4,252
                       
Net loss per ADS attributable to iClick Interactive Asia Group Limited                      
— Basic (0.40   (0.05   (0.86   (0.05
— Diluted (0.40   (0.05   (0.86   (0.05
Weighted average number of ADS used in per share calculation:                      
— Basic 27,242,644     52,167,588     27,233,382     52,158,106  
— Diluted 27,242,644     52,167,588     27,233,382     52,158,106  
                       

__________

3 On January 1, 2018, the Company adopted ASC 606 "Revenue from Contracts with Customers" using the modified retrospective method. The adoption did not have any impact to the accumulated deficit as of January 1, 2018.  As a result of the adoption, certain rebates to marketers are presented net of revenues, as opposed to being included in cost of revenues in prior periods. 

Unaudited Condensed Consolidated Balance Sheets
(US$’000, except share data and per share data, or otherwise noted, unaudited)

       
  As of
December 31,
  As of
June 30,
  2017   2018
Assets      
Current assets      
Cash and cash equivalents 19,401   26,096
Time deposit 25,000  
Accounts receivable, net of allowance for doubtful receivables of US$1,478
and US$1,476 as of December 31, 2017 and June 30, 2018, respectively
40,798   67,829
Rebates receivable 1,334   1,825
Prepaid media costs 37,784   19,377
Other current assets 3,107   2,741
Income tax receivable 3   -
Total current assets 127,427   117,868
       
Non-current assets      
Deferred tax assets 850   850
Property and equipment, net 1,165   653
Intangible assets, net 10,600   8,513
Goodwill 48,496   48,496
Other assets 284   643
Total non-current assets 61,395   59,155
       
Total assets 188,822   177,023
       
Liabilities, mezzanine equity and shareholders’ equity      
Current liabilities      
Accounts payable (including accounts payable of the consolidated variable
  interest entity (“VIE”) and its subsidiary without recourse to the Company of
  US$29 as of December 31, 2017 and June 30, 2018, respectively)
3,904   4,692
Deferred revenue (including deferred revenue of the consolidated VIE and its
  subsidiary without recourse to the Company of US$5,986 and US$2,767 as of
  December 31, 2017 and June 30, 2018, respectively)
33,037   26,492
Accrued liabilities and other current liabilities (including accrued liabilities and
  other current liabilities of the consolidated VIE and its subsidiary without
  recourse to the Company of US$804 and US$374 as of December 31, 2017
  and June 30, 2018, respectively)
16,129   11,631
Bank borrowings 10,486   10,443
Income tax payable 2,123   3,608
Total current liabilities 65,679   56,866
       
Non-current liability      
Deferred tax liabilities 3,159   2,611
Total non-current liability 3,159   2,611
       
Total liabilities 68,838   59,477
       


  As of
December 31,
  As of
June 30,
  2017   2018
Shareholders’ equity          
Ordinary shares – Class A (US$0.001 par value; 80,000,000 shares
  authorized as of December 31, 2017 and June 30, 2018, respectively;
  21,238,825 and 21,327,628 shares issued and outstanding as of
  December 31, 2017 and June 30, 2018, respectively)
21     21  
Ordinary shares – Class B (US$0.001 par value; 20,000,000 shares
  authorized as of December 31, 2017 and June 30, 2018, respectively;
  4,820,608 shares issued and outstanding as of December 31, 2017 and
  June 30, 2018, respectively)
5     5  
Treasury shares (2,123,382 shares and 2,034,579 shares as of
  December 31, 2017 and June 30, 2018, respectively)
(2,093)     (806)  
Additional paid-in capital 274,294     274,820  
Statutory reserves 81     82  
Accumulated other comprehensive losses (3,320 )   (4,854 )
Accumulated deficit (149,004 )   (151,722 )
           
Total shareholders’ equity 119,984     117,546  
           
Total liabilities and shareholders’ equity 188,822     177,023  
           

ICLICK INTERACTIVE ASIA GROUP LIMITED
Unaudited Reconciliations of GAAP and Non-GAAP Results

Adjusted EBITDA represents net loss before (i) depreciation and amortization, (ii) interest expense, (iii) income tax expenses, (iv) share-based compensation, (v) fair value loss on derivative liabilities, and (vi) other (gains)/ losses, net.

The table below sets forth a reconciliation of the Company’s adjusted EBITDA to net loss for the periods indicated:

  Three Months Ended June 30,    Six Months Ended June 30, 
  2017  2018    2017  2018 
                   
(Unaudited)                  
Net loss (10,241 (2,606   (22,245 (2,718
Add / (less):                  
Depreciation and amortization 1,402   1,284     2,834   2,646  
Interest expense 141   133     286   154  
Income tax expenses 610   572     601   1,016  
EBITDA (8,088 (617   (18,524 1,098  
Add / (less):                  
Share-based compensation 861   724     1,923   1,498  
Fair value loss on derivative liabilities 7,297       14,727    
Other (gains)/ losses, net (40 744     (7 (1,336
Adjusted EBITDA 30   851     (1,881 1,260  
                   

Adjusted net loss represents net loss before (i) share-based compensation, (ii) fair value loss on derivative liabilities, and (iii) other (gains)/losses, net.

The table below sets forth a reconciliation of the Company’s adjusted net loss to net loss for the periods indicated:

           
  Three Months Ended June 30,    Six Months Ended June 30, 
  2017  2018    2017  2018 
                   
(Unaudited)                  
Net loss (10,241 (2,606   (22,245 (2,718
Add / (less):                  
Share-based compensation 861   724     1,923   1,498  
Fair value loss on derivative liabilities 7,297       14,727    
Other (gains)/ losses, net (40 744     (7 (1,336
Adjusted net loss (2,123 (1,138   (5,602 (2,556
                   

The basic and diluted adjusted net loss per ADS for the periods indicated are calculated as follows:

         
  Three Months Ended June 30,  Six Months Ended June 30, 
  2017  2018  2017  2018 
                   
(Unaudited)                  
Numerator:                  
Adjusted net loss (2,123 (1,138   (5,602 (2,556
                   
Accretion to convertible redeemable preferred shares redemption value (201     (401  
Accretion to redeemable ordinary shares redemption value (427     (842  
  (2,751 (1,138   (6,845 (2,556
                   
Denominator:                  
Denominator for basic and diluted net loss per ADS                  
- weighted average ADS outstanding 27,242,644   52,167,588     27,233,382   52,158,106  
                   
Basic adjusted net loss per ADS (0.10 ) (0.02 )   (0.25 ) (0.05 )
                   
                   
Diluted adjusted net loss per ADS (0.10 ) (0.02 )   (0.25 ) (0.05 )
                   

iClick Interactive Asia Group Limited