What happened
Shares of Aurora Mobile (JG +0.43%) tanked by as much as 11% today after the company reported fourth-quarter earnings. The tech specialist's sales fell and losses widened.
So what
Revenue in the fourth quarter declined 42% to 106 million yuan ($16.2 million), which resulted in an adjusted net loss of 29.4 million yuan ($4.5 million). When looking at just the software-as-a-service (SaaS) segments, revenue increased 17% to 76.6 million yuan ($11.7 million). Aurora Mobile recently completed the wind down of its targeted marketing business, which was the primary reason why total revenue fell so much.
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"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," CEO Weidong Luo said in a statement. "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."
Now what
The Chinese company, which provides services to mobile app developers, said adjusted EBITDA was negative 17.1 million yuan (negative $2.6 million). Total paying customers grew to approximately 2,400, while the number of monthly active unique mobile devices using Aurora Mobile's services increased to 1.4 billion.
Guidance for 2021 calls for total revenue of 380 million yuan to 400 million yuan ($58.4 million to $61.5 million based on current exchange rates).
