CooTek's Shares End Higher on Revenue, User Growth
Shares in CooTek (Cayman) Inc. (NYSE: CTK) closed 2 percent higher Tuesday, at $6.20 apiece, after the company reported revenue increase for the second quarter.
The Shanghai-based company, which develops mobile apps using AI, said its revenue in the three months through June reached $37.6 million, up 33 percent year-over-year. Net loss was $14.1 million, or 4 cents per share, compared with a net income of $2.1 million, or 1 cent per share, a year ago.
The company also said in its statement that it averaged 255.5 million monthly active users in three months through June, up 32 percent year-over-year.
CooTek announced earlier this month that it expected to report revenue in the range of $34 million to $36 million, which was a significant decline from its previous estimate of between $45 million and $50 million. The company attributed the lowered estimate to difficulties in its dealings with Google.
Karl Zhang, the company's founder and chairman, said in a statement today that he was pleased with the rise in daily active users of CooTek's products.
He said, "We believe the impact from Google will be short-term and that our sophisticated capabilities to drive user growth leveraging our in-depth and unique user insights will continue to offer a unique value proposition."
Looking ahead, the company said it anticipates revenue of around $30 million, down 18 percent year-over-year, for the third quarter. The company also announced it plans on launching new innovative products.