iClick Interactive Asia Group Limited Reports First Quarter 2018 Unaudited Financial Results
| First Quarter 2018 Financial and Operational Highlights: | |||||||||
| Three Months Ended March 31, | |||||||||
| 2017 | 2018 | Percentage change | |||||||
| (US$ in thousands) | (US$ in thousands) | ||||||||
| (Unaudited) | |||||||||
| Financial Metrics: | |||||||||
| Net revenues | |||||||||
| Net revenues from mobile audience solutions | 18,170 | 30,884 | 70.0% | ||||||
| Net revenues from other solutions | 7,714 | 4,345 | (43.7%) | ||||||
| Total net revenues | 25,884 | 35,229 | 36.1% | ||||||
| Adjusted EBITDA1 | (1,911) | 409 | |||||||
| Adjusted net loss1 | (3,479) | (1,418) | |||||||
| Diluted adjusted net loss per ADS1 | (0.15) | (0.03) | |||||||
| Operating Metrics: | |||||||||
| Gross billing | |||||||||
| Gross billing from mobile audience solutions | 24,993 | 73,575 | 194.4% | ||||||
| Gross billing from other solutions | 21,886 | 18,317 | (16.3%) | ||||||
| Total gross billing | 46,879 | 91,892 | 96.0% | ||||||
“We are pleased to report strong results for the first quarter of 2018, with an increase of 96.0% in gross billing and an increase of 36.1% in net revenues, from the first quarter of 2017,” said Mr.
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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.
First quarter 2018 Financial and Operational Updates:
Net revenues for the first quarter of 2018 increased by 36.1% to
Net revenues from mobile audience solutions for the first quarter of 2018 increased by 70.0% to
Net revenues from other solutions for the first quarter of 2018 decreased by 43.7% to
Gross profit for the first quarter of 2018 increased by 27.8% to
Total operating expenses decreased by 8.5% to
Operating loss for the first quarter of 2018 was
Net loss totaled
Gross billing2reached
Adjusted EBITDA for the first quarter of 2018 was
Adjusted net loss for the first 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
As of
_____________________________
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
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: | 7393816 |
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 two hours after the conclusion of the live call until
| United States: | +1-855-452-5696 |
| International: | +61-2-8199-0299 |
| Hong Kong: | 800-963-117 |
| China: | 400-632-2162 |
| Replay Access Code: | 7393816 |
About
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
For investor and media inquiries, please contact:
In
Jie Jiao
Phone: +852-3700-9065
E-mail: ir@i-click.com
Tel: +86 (10) 5730-6201
E-mail: iclick@tpg-ir.com
In
The Piacente Group, Inc.
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 March 31, |
||||||||||||
| 2017 | 2018 | |||||||||||
| Net revenues3 | 25,884 | 35,229 | ||||||||||
| Cost of revenues3 | (19,527) | (27,106) | ||||||||||
| Gross profit | 6,357 | 8,123 | ||||||||||
| Operating expenses | ||||||||||||
| Research and development expenses | (1,771) | (1,395) | ||||||||||
| Sales and marketing expenses | (6,617) | (5,891) | ||||||||||
| General and administrative expenses | (2,374) | (2,564) | ||||||||||
| Total operating expenses | (10,762) | (9,850) | ||||||||||
| Operating loss | (4,405) | (1,727) | ||||||||||
| Interest expense | (145) | (21) | ||||||||||
| Other (losses)/gains, net | (33) | 2,080 | ||||||||||
| Fair value loss on derivative liabilities | (7,430) | — | ||||||||||
| (Loss)/profit before income tax expense | (12,013) | 332 | ||||||||||
| Income tax benefit/(expenses) | 9 | (444) | ||||||||||
| Net loss | (12,004) | (112) | ||||||||||
| Accretion to convertible redeemable preferred shares redemption value | (200) | — | ||||||||||
| Accretion to redeemable ordinary shares redemption value | (415) | — | ||||||||||
| Net loss attributable to iClick Interactive Asia Group Limited’s ordinary shareholders | (12,619) | (112) | ||||||||||
| Net loss | (12,004) | (112) | ||||||||||
| Other comprehensive loss: | ||||||||||||
| Foreign currency translation adjustment, net of US$nil tax | (9) | (214) | ||||||||||
| Comprehensive loss attributable to iClick Interactive Asia Group Limited | (12,013) | (326) | ||||||||||
| Net loss per ADS attributable to iClick Interactive Asia Group Limited | ||||||||||||
| — Basic | (0.4635) | (0.0021) | ||||||||||
| — Diluted | (0.4635) | (0.0021) | ||||||||||
| Weighted average number of ADS used in per share calculation: | ||||||||||||
| — Basic | 27,224,016 | 52,148,518 | ||||||||||
| — Diluted | 27,224,016 | 52,148,518 | ||||||||||
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3 On
| ICLICK INTERACTIVE ASIA GROUP LIMITED | ||||||||||
| Unaudited Condensed Consolidated Balance Sheets | ||||||||||
| (US$’000, except share data and per share data, or otherwise noted, unaudited) | ||||||||||
| As of December 31, 2017 |
As of March 31, 2018 |
|||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | 19,401 | 23,510 | ||||||||
| Time deposit | 25,000 | 14,750 | ||||||||
| Accounts receivable, net of allowance for doubtful receivables of US$1,478 and US$1,524 as of December 31, 2017 and March 31, 2018, respectively |
40,798 | 48,342 | ||||||||
| Rebates receivable | 1,334 | 2,146 | ||||||||
| Prepaid media costs | 37,784 | 34,097 | ||||||||
| Other current assets | 3,107 | 1,706 | ||||||||
| Income tax receivable | 3 | 3 | ||||||||
| Total current assets | 127,427 | 124,554 | ||||||||
| Non-current assets | ||||||||||
| Deferred tax assets | 850 | 855 | ||||||||
| Property and equipment, net | 1,165 | 896 | ||||||||
| Intangible assets, net | 10,600 | 9,555 | ||||||||
| Goodwill | 48,496 | 48,496 | ||||||||
| Other assets | 284 | 304 | ||||||||
| Total non-current assets | 61,395 | 60,106 | ||||||||
| Total assets | 188,822 | 184,660 | ||||||||
| Liabilities, mezzanine equity and shareholders’ deficit | ||||||||||
| 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 and US$31 as of December 31, 2017 and March 31, 2018, respectively) |
3,904 | 4,535 | ||||||||
| Deferred revenue (including deferred revenue of the consolidated VIE and its subsidiary without recourse to the Company of US$5,986 and US$2,931 as of December 31, 2017 and March 31, 2018, respectively) |
33,037 | 29,998 | ||||||||
| 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$408 as of December 31, 2017 and March 31, 2018, respectively) |
16,129 | 13,082 | ||||||||
| Bank borrowings | 10,486 | 10,790 | ||||||||
| Income tax payable | 2,123 | 2,794 | ||||||||
| Total current liabilities | 65,679 | 61,199 | ||||||||
| Non-current liability | ||||||||||
| Deferred tax liabilities | 3,159 | 2,901 | ||||||||
| Total non-current liability | 3,159 | 2,901 | ||||||||
| Total liabilities | 68,838 | 64,100 | ||||||||
| As of December 31, 2017 |
As of March 31, 2018 |
||||||||||
| Shareholders’ equity | |||||||||||
| Ordinary shares – Class A (US$0.001 par value; 80,000,000 shares authorized as of December 31, 2017 and March 31, 2018, respectively; 21,238,825 and 21,260,420 shares issued and outstanding as of December 31, 2017 and March 31, 2018, respectively) |
21 | 21 | |||||||||
| Ordinary shares – Class B (US$0.001 par value; 20,000,000 shares authorized as of December 31, 2017 and March 31, 2018, respectively; 4,820,608 shares issued and outstanding as of December 31, 2017 and March 31, 2018, respectively) |
5 | 5 | |||||||||
| Treasury shares (2,123,382 shares and 2,101,787 shares as of December 31, 2017 and March 31, 2018, respectively) | (2,093) | (1,780) | |||||||||
| Additional paid-in capital | 274,294 | 274,884 | |||||||||
| Statutory reserves | 81 | 81 | |||||||||
| Accumulated other comprehensive losses | (3,320) | (3,535) | |||||||||
| Accumulated deficit | (149,004) | (149,116) | |||||||||
| Total shareholders’ equity | 119,984 | 120,560 | |||||||||
| Total liabilities and shareholders’ equity | 188,822 | 184,660 | |||||||||
| 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 (benefit)/expense, (iv) share-based compensation, (v) fair value loss on derivative liabilities, and (vi) other losses/(gains), net. | |||||||
| The table below sets forth a reconciliation of the Company’s adjusted EBITDA to net loss for the periods indicated: | |||||||
| Three Months Ended March 31, | |||||||
| 2017 | 2018 | ||||||
| (Unaudited) | |||||||
| Net loss | (12,004) | (112) | |||||
| Add / (less): | |||||||
| Depreciation and amortization | 1,432 | 1,362 | |||||
| Interest expense | 145 | 21 | |||||
| Income tax (benefit)/expenses | (9) | 444 | |||||
| EBITDA | (10,436) | 1,715 | |||||
| Add: | |||||||
| Share-based compensation | 1,062 | 774 | |||||
| Fair value loss on derivative liabilities | 7,430 | — | |||||
| Other losses/(gains), net | 33 | (2,080) | |||||
| Adjusted EBITDA | (1,911) | 409 | |||||
Adjusted net loss represents net loss before (i) share-based compensation, (ii) fair value loss on derivative liabilities, and (iii) other losses/(gains), 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 March 31, | |||||||
| 2017 | 2018 | ||||||
| (Unaudited) | |||||||
| Net loss | (12,004) | (112) | |||||
| Add / (less): | |||||||
| Share-based compensation | 1,062 | 774 | |||||
| Fair value loss on derivative liabilities | 7,430 | — | |||||
| Other losses/(gains), net | 33 | (2,080) | |||||
| Adjusted net loss | (3,479) | (1,418) | |||||
The basic and diluted adjusted net loss per ADS for the periods indicated are calculated as follows:
| Three Months Ended March 31, | ||||||||||
| 2017 | 2018 | |||||||||
| (Unaudited) | ||||||||||
| Numerator: | ||||||||||
| Adjusted net loss | (3,479) | (1,418) | ||||||||
| Accretion to convertible redeemable preferred shares redemption value | (200) | — | ||||||||
| Accretion to redeemable ordinary shares redemption value | (415) | — | ||||||||
| (4,094) | (1,418) | |||||||||
| Denominator: | ||||||||||
| Denominator for basic and diluted net loss per ADS | ||||||||||
| - weighted average ADS outstanding | 27,224,016 | 52,148,518 | ||||||||
| Basic adjusted net loss per ADS | (0.15) | (0.03) | ||||||||
| Diluted adjusted net loss per ADS | (0.15) | (0.03) | ||||||||
Source: iClick Interactive Asia Group Limited