SHENZHEN, China, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Aurora Mobile Limited ("Aurora Mobile" or the "Company") (NASDAQ:JG), a leading mobile big data solutions platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights

-- Revenues were RMB165.1 million (US$25.0 million), an increase of 233.6% year-over-year. -- Cost of revenues was RMB118.1 million (US$17.8 million), an increase of 192.8% year-over-year. -- Gross profit was RMB47.0 million (US$7.1 million), an increase of 411.0% year-over-year. -- Total operating expenses were RMB68.7 million (US$10.4 million), an increase of 68.6% year-over-year. -- Net losswas RMB11.8 million (US$1.8 million) compared with net loss of RMB30.2 million for the same period of last year. -- Adjusted EBITDA (non-GAAP)was negative RMB11.1 million (US$1.7 million) compared with negative RMB27.5 million for the same period of last year.

Second Quarter 2018 Operational Highlights

-- Number of mobile appsutilizing at least one of the Company’s developer services, or the cumulative app installations, increased to approximately 888,000 as of June 30, 2018 from approximately 583,000 as of June 30, 2017. -- Number of monthly active unique mobile devicesincreased to 971 million in June 2018 from 633 million in June 2017. -- Cumulative SDK installations increased to 14.9 billion as of June 30, 2018 from 8.5 billion as of June 30, 2017. -- Number of paying customers increased to 1,602 in the second quarter of 2018 from 1,165 in the second quarter of 2017.

“This is our first earnings report as a public company following our listing on Nasdaq on July 26, 2018,” commented Mr. Weidong Luo, Chairman and Chief Executive Officer of Aurora Mobile. “I am pleased to report strong financial and operational results for our second quarter 2018. During the quarter, the number of mobile apps using our services grew from 583,000 as of June 2017 and 784,000 as of March 31, 2018 to approximately 888,000 as of June 2018.”

“The number of monthly active unique devices we covered increased from 633 million in June 2017 and 951 million in March 2018 to 971 million in June 2018. Cumulative SDK installations increased sequentially from 13.9 billion and 8.5 billion during the same period last year to 14.9 billion. The number of paying customers increased from 1,308 last quarter and 1,165 during the same period last year to 1,602.”

“As a result, our revenues grew to RMB165.1 million from RMB126.4 million last quarter and RMB49.5 million during the same period last year, an increase of 30.6% and 233.6%, respectively.”

“Developer services revenues increased by 69.4% year-over-year from RMB8.6 million to RMB14.5 million, primarily due to growth in the number of paying customers from 715 to 1,005.”

“We believe these solid results demonstrate the traction our comprehensive suite of services are generating in the market and our ability to leverage them to strengthen our leadership position.”

Mr. Fei Chen, President of Aurora Mobile, commented that “Within the data solutions revenue, targeted marketing revenues increased by 248.3% year-over-year from RMB37.8 million to RMB131.7 million. This was mainly due to an increase in both the number of customers and the average spending per paying customer. Revenues from customers from the financial services and media & entertainment sectors in particular generated strong growth. We are seeing customers increasing their spending on our products and services which I believe is strong evidence of our ability to provide a substantial and quantifiable return on their investment. We are also making solid progress in other verticals, such as eCommerce, as we continued to execute our strategy to generate growth from multiple industries.”

“Other vertical data solutions revenues increased by 509.7% year-over-year from RMB3.1 million to RMB18.9 million. This was mainly due to an increase in both the number of paying customers and average spending per paying customer. We saw strong growth across all three product lines, including financial risk management, market intelligence, and location-based intelligence (iZone), as we continue to expand our sales coverage and penetrate further into these industry verticals.”

Mr. Shan-Nen Bong, Chief Financial Officer of Aurora Mobile, added, “Strong topline growth during the quarter allowed us to generate a 411.0% year-over-year increase in gross profit. Total operating expenses, on the other hand, increased by 68.6%. This resulted in a smaller net loss of RMB11.8 million in the second quarter of 2018 compared to net loss of RMB30.2 million in the same quarter last year which demonstrates the strong scalability of our business model”.

Second Quarter 2018 Financial Results

Revenues were RMB165.1 million (US$25.0 million), an increase of 233.6% from RMB49.5 million in the same quarter of last year, mainly due to an increase in the number of customers by 37.5% from 1,165 in the three months ended June 30, 2017 to 1,602 during the second quarter of 2018, and an increase in average spending per customer by 142.5% from RMB42,500 to RMB103,100 during the second quarter of 2018.

Cost of revenues was RMB118.1 million (US$17.8 million), an increase of 192.8% from RMB40.3 million in the second quarter of 2017. The increase was in line with revenue growth and was mainly due to the increases in the cost of media inventory by RMB72.8 million, bandwidth cost by RMB2.3 million, staff cost by RMB1.1 million and depreciation of servers by RMB0.7 million.

Gross profit was RMB47.0 million (US$7.1 million), an increase of 411.0% from RMB9.2 million year-over-year, mainly due to the significant revenue growth within the same period.

Total operating expenses were RMB68.7 million (US$10.4 million), an increase of 68.6% from RMB40.7 million in the same quarter of last year.

-- Research and development expenseswere RMB31.6 million (US$4.8 million), an increase of 82.7% from RMB17.3 million in the same quarter of last year, mainly due to an increase in staff cost by RMB9.4 million, bandwidth cost and cloud cost by RMB2.7 million, and depreciation of servers by RMB1.3 million. -- Sales and marketing expenses were RMB21.6 million (US$3.3 million), an increase of 47.5% from RMB14.7 million in the same quarter of last year, mainly due to an increase in the staff cost by RMB5.7 million, and marketing expense by RMB0.9 million. -- General and administrative expenses were RMB15.4 million (US$2.3 million), an increase of 75.7% from RMB8.8 million in the same quarter of last year, mainly due to an increase in bad debt provision expense by RMB3.1 million, professional fees by RMB1.5 million and compensation and other personnel related expenses by RMB1.4 million.

Loss from operations was RMB21.7 million (US$3.3 million), compared with RMB31.6 million in the same quarter of last year.

Net Loss was RMB11.8 million (US$1.8 million), compared with RMB30.2 million in the same quarter of last year.

Adjusted net loss (non-GAAP) was RMB17.1 million (US$2.6 million), compared with RMB27.7 million for the same period of last year.

Adjusted EBITDA (non-GAAP) was negative RMB11.1 million (US$1.7 million), compared with negative RMB27.5 million for the same period of last year.

As of June 30, 2018, the Company had cash and cash equivalents and restricted cash of RMB243.9 million (US$36.9 million), compared with RMB208.2 million as of December 31, 2017.

Business Outlook

For the third quarter of 2018, the Company expects total revenues to be between RMB180 million and RMB185 million, representing year-over-year growth of approximately 97.4% to 102.9%.

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

Conference Call

The Company will host a conference call to discuss the earnings at 9:00 p.m. Eastern Time on Thursday, September 6, 2018 (9:00 a.m. Beijing time on Friday, September 7, 2018).

Dial-in numbers for the live conference call are as follows:

International: +65-6713-5090 U.S.: +1-845-675-0437 Hong Kong: +852 3018-6771 China: 400-620-8038 Passcode: 8399559

A telephone replay of the call will be available after the conclusion of the conference call through 9:00 a.m. U.S. Eastern Time, September 14, 2018.

Dial-in numbers for the replay are as follows:

International: +61-2-8199-0299 U.S. Toll Free: 1-855-452-5696 Passcode: 8399559

A live and archived webcast of the conference call will be available on the Investor Relations section of Aurora Mobile’s website at http://ir.jiguang.cn/.

Use of Non-GAAP Financial MeasuresIn evaluating the business, the Company considers and uses two non-GAAP measures, adjusted net loss and adjusted EBITDA, as a supplemental measures to review and assess its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net loss as net loss excluding share-based compensation and change in fair value of derivative liability. The Company defines adjusted EBITDA as net loss excluding interest expense, depreciation of property and equipment, amortization of intangible assets, income tax (expense) benefit, share-based compensation and change in fair value of derivate liability.

The Company believes that adjusted net loss and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in loss from operations and net loss.

The Company believes that adjusted net loss and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net loss and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of the non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of 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. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. 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: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

About Aurora Mobile LimitedFounded in 2011, Aurora Mobile is a leading mobile big data solutions platform in China, pioneered in providing mobile developer services such as push notification, instant messaging, analytics, sharing and short message service (SMS). Aurora Mobile has served approximately 344 thousand mobile app developers and approximately 888 thousand mobile applications, accumulated data from nearly 15 billion installations of the Company’s software development kits (SDKs), with monthly unique active device base of nearly 1 billion, as of June 2018. Based on Aurora Mobile’s vast data coverage and insights garnered, the Company has expanded its offerings into big data solutions, including targeted marketing, financial risk management, market intelligence and location-based intelligence. By utilizing artificial intelligence and machine learning, Aurora Mobile strives to help improve productivity for businesses and society through harnessing the power of mobile big data to derive actionable insights and knowledge.

For more information, please visit http://ir.jiguang.cn/

For investor and media inquiries, please contact:

Aurora Mobile Limited ir@jiguang.cn

ChristensenIn ChinaMr. Christian ArnellPhone: +86-10-5900-1548E-mail: carnell@christensenir.com

In U.S.Ms. Linda BergkampPhone: +1-480-614-3004Email: lbergkamp@ChristensenIR.com

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Footnote:

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.6171 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 29, 2018.

AURORA MOBILE LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) Three months ended Six months ended ------------------------------------------- ------------------------------- June 30, March 31, June 30, June 30, June 30, 2017 2018 2018 2017 2018 -------- - --------- - ------------------ - -------- - ------------------ - RMB RMB RMB US$ RMB RMB US$ Revenues 49,494 126,392 165,125 24,954 81,487 291,517 44,055 Cost of revenues (40,335 ) (91,802 ) (118,102 ) (17,848 ) (66,015 ) (209,904 ) (31,721 ) -------- - --------- - -------- - ------- - -------- - -------- - ------- - Gross profit 9,159 34,590 47,023 7,106 15,472 81,613 12,334 -------- - --------- - -------- - ------- - -------- - -------- - ------- - Operating expenses Research and development (17,298 ) (24,413 ) (31,611 ) (4,777 ) (30,921 ) (56,024 ) (8,467 ) Sales and marketing (14,660 ) (17,431 ) (21,629 ) (3,269 ) (25,021 ) (39,060 ) (5,903 ) General and administrative (8,784 ) (13,587 ) (15,433 ) (2,332 ) (15,708 ) (29,020 ) (4,387 ) -------- - --------- - -------- - ------- - -------- - -------- - ------- - Total operating expenses (40,742 ) (55,431 ) (68,673 ) (10,378 ) (71,650 ) (124,104 ) (18,757 ) -------- - --------- - -------- - ------- - -------- - -------- - ------- - Loss from operations (31,583 ) (20,841 ) (21,650 ) (3,272 ) (56,178 ) (42,491 ) (6,423 ) -------- - --------- - -------- - ------- - -------- - -------- - ------- - Foreign exchange (loss) gain, (378 ) (1,419 ) 424 64 (613 ) (995 ) (150 ) net Interest income 46 59 80 12 151 139 21 Interest expense (18 ) (60 ) (1,901 ) (287 ) (20 ) (1,961 ) (296 ) Other income 18 118 1,919 290 454 2,037 308 Change in fair value of - - 9,294 1,405 - 9,294 1,405 derivative liability -------- - --------- - -------- ------- -------- -------- ------- Loss before income taxes (31,915 ) (22,143 ) (11,834 ) (1,788 ) (56,206 ) (33,977 ) (5,135 ) -------- - --------- - -------- - ------- - -------- - -------- - ------- - Income tax benefit 1,669 5 - - 3,960 5 1 -------- - --------- - -------- - ------- - -------- - -------- - ------- - Net loss (30,246 ) (22,138 ) (11,834 ) (1,788 ) (52,246 ) (33,972 ) (5,134 ) -------- - --------- - -------- - ------- - -------- - -------- - ------- -

AURORA MOBILE LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (continued) (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data) Three months ended Six months ended --------------------------------------------------- -------------------------------------- June 30, March 31, June 30, June 30, June 30, 2017 2018 2018 2017 2018 ---------- - ---------- - ----------------------- - ---------- - ----------------------- - RMB RMB RMB US$ RMB RMB US$ Net loss attributable to Aurora Mobile (30,246 ) (22,138 ) (11,834 ) (1,788 ) (52,246 ) (33,972 ) (5,134 ) Limited’s shareholders Accretion of contingently redeemable (11,711 ) (10,877 ) (10,279 ) (1,553 ) (13,486 ) (21,156 ) (3,197 ) convertible preferred shares ---------- - ---------- - ---------- - ---------- - ---------- - ---------- - ---------- - Net loss attributable to (41,957 ) (33,015 ) (22,113 ) (3,341 ) (65,732 ) (55,128 ) (8,331 ) common shareholders ---------- ---------- - ---------- - ---------- - ---------- - ---------- - ---------- - Net loss per share: Basic (0.98 ) (0.77 ) (0.52 ) (0.08 ) (1.54 ) (1.29 ) (0.19 ) Diluted (0.98 ) (0.77 ) (0.52 ) (0.08 ) (1.54 ) (1.29 ) (0.19 ) Shares used in net loss per share computation: Basic 42,666,670 42,666,670 42,666,670 42,666,670 42,666,670 42,666,670 42,666,670 Diluted 42,666,670 42,666,670 42,666,670 42,666,670 42,666,670 42,666,670 42,666,670 Other comprehensive loss Foreign currency translation (3,495 ) (3,625 ) (2,059 ) (311 ) (3,610 ) (5,684 ) (859 ) adjustments Total other comprehensive (3,495 ) (3,625 ) (2,059 ) (311 ) (3,610 ) (5,684 ) (859 ) loss, net of tax ---------- ---------- - ---------- - ---------- - ---------- - ---------- - ---------- - Comprehensive (33,741 ) (25,763 ) (13,893 ) (2,099 ) (55,856 ) (39,656 ) (5,993 ) loss ---------- - ---------- - ---------- - ---------- - ---------- - ---------- - ---------- - Comprehensive loss attributable (33,741 ) (25,763 ) (13,893 ) (2,099 ) (55,856 ) (39,656 ) (5,993 ) to Aurora Mobile Limited

AURORA MOBILE LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) As of -------------------------------- December 31, 2017 June 30, 2018 ----------------- -------------- RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 208,161 243,868 36,854 Restricted cash 115 115 17 Accounts receivable 49,594 110,981 16,772 Prepayments and other current assets 34,228 53,406 8,071 Amounts due from related parties 1,260 211 32 ----------------- ------- ------ Total current assets 293,358 408,581 61,746 ----------------- ------- ------ Non-current assets: Other non-current assets 1,806 6,172 933 Long-term investments 10,980 20,992 3,172 Property and equipment, net 53,023 69,308 10,474 Intangible assets, net 283 230 35 ----------------- ------- ------ Total non-current assets 66,092 96,702 14,614 ----------------- ------- ------ Total assets 359,450 505,283 76,360 ----------------- ------- ------ LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT Current liabilities: Accounts payable 8,340 20,577 3,110 Deferred revenue and customer deposits 49,557 48,547 7,337 Accrued liabilities and other current liabilities 52,639 66,448 10,040 Amounts due to related parties 6,110 1,480 224 ----------------- ------- ------ Total current liabilities 116,646 137,052 20,711 ----------------- ------- ------ Non-current liabilities: Other non-current liabilities 216 178 27 Deferred tax liabilities 5 - - Deferred revenue 330 410 62 Convertible notes - 215,387 32,550 ----------------- ------- ------ Total non-current liabilities 551 215,975 32,639 ----------------- ------- ------ Total liabilities 117,197 353,027 53,350 ----------------- ------- ------

AURORA MOBILE LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (continued) (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data) As of ------------------------------- December June 30, 2018 31, 2017 RMB RMB US$ ---------- ---------- --------- Mezzanine equity 466,637 430,559 65,068 Shareholders’ (deficit) equity Common shares 26 26 4 Additional paid-in capital 13,689 20,583 3,111 Accumulated deficit (234,810 ) (289,939 ) (43,817 ) Accumulated other comprehensive loss (3,289 ) (8,973 ) (1,356 ) -------- - -------- - ------- - Total shareholders’ (deficit) equity (224,384 ) (278,303 ) (42,058 ) -------- - -------- - ------- - Total liabilities, mezzanine equity and shareholders’ deficit 359,450 505,283 76,360 -------- - -------- - ------- -

AURORA MOBILE LIMITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) Three months ended Six months ended ----------------------------------------- ----------------------------- June 30, March 31, June 30, June 30, June 30, 2017 2018 2018 2017 2018 -------- - --------- - ---------------- - -------- - ---------------- - RMB RMB RMB US$ RMB RMB US$ Reconciliation of Net Loss to Adjusted Net Loss: Net loss (30,246 ) (22,138 ) (11,834 ) (1,788 ) (52,246 ) (33,972 ) (5,134 ) Add: Share-based compensation 2,486 2,837 4,057 613 4,661 6,894 1,042 Change in fair value of derivative - - (9,294 ) (1,405 ) - (9,294 ) (1,405 ) liability -------- - --------- - ------- - ------ - -------- - ------- - ------ - Adjusted net loss (27,760 ) (19,301 ) (17,071 ) (2,580 ) (47,585 ) (36,372 ) (5,497 ) -------- - --------- - ------- - ------ - -------- - ------- - ------ - Reconciliation of Net Loss to Adjusted EBITDA: Net loss (30,246 ) (22,138 ) (11,834 ) (1,788 ) (52,246 ) (33,972 ) (5,134 ) Add: Interest expense 18 60 1,901 287 20 1,961 296 Depreciation of property and 1,952 3,310 4,015 607 3,536 7,325 1,107 equipment Amortization of intangible assets - 27 27 4 - 54 8 Income tax benefit (1,669 ) (5 ) - - (3,960 ) (5 ) (1 ) -------- - --------- - ------- - ------ - -------- - ------- - ------ - EBITDA (29,945 ) (18,746 ) (5,891 ) (890 ) (52,650 ) (24,637 ) (3,724 ) Add: Share-based compensation 2,486 2,837 4,057 613 4,661 6,894 1,042 Change in fair value of derivative - - (9,294 ) (1,405 ) - (9,294 ) (1,405 ) liability -------- - --------- - ------- - ------ - -------- - ------- - ------ - Adjusted EBITDA (27,459 ) (15,909 ) (11,128 ) (1,682 ) (47,989 ) (27,037 ) (4,087 ) -------- - --------- - ------- - ------ - -------- - ------- - ------ -