Gridsum Reports Weak Quarterly Results, Expects to Rebound This Year
Gridsum Holding Inc. (Nasdaq: GSUM) reported weak financial results for the first quarter on Monday, yet its stock ended 7 percent higher, at $2.90 per American depositary share.
The Beijing-based company, which provides cloud-based big-data analytics and artificial intelligence solutions, said in a statement today that its revenue was down 56 percent year-over-year, at $8.7 million, in the three months through March.
Net loss for the first quarter increased 150 percent from the same period of 2018 to $24 million, or 75 cents per share, according to the report.
Gridsum reported $28.8 million in operating expenses and $2.7 million in revenue costs for the first quarter.
The company attributed the decline to "an exceptionally strong performance in sales of Social Listening solutions recorded in the comparable period of 2018." A number of events, specifically, the slowdown in China's economy last year, negatively impacted its current performance, Gridsum said.
Looking ahead, however, Gridsum was optimistic.
"The first quarter of 2019 saw increased traction from the restructuring of the Company's sales and service functions to encourage more effective cross-sell and upsell of additional products and solutions to its client base, as well as to focus on higher return opportunities within the Company's revenue-mix," it stated.
Gridsum said it expects to "stabilize its core businesses and regain growth momentum" this year. It also said it expects a return to growth in revenue in the remaining quarters.
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