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Aurora Mobile Plummets 10% on Poor Q1 Revenue

Author: Anthony Russo   

Aurora Mobile Ltd. (Nasdaq: JG) tanked 10% to $1.58 per American depositary share by midday Thursday on announcing weak revenue for the first quarter.

The Shenzhen-based mobile data solution platform said in a statement today that in the three months through March that its revenues were $17.83 million, down 45% year-over-year. Net loss widened to $7.20 million compared with $3.54 million in the same period in 2019.

As Covid-19 spread across China in the first quarter, Aurora attributed the decline to lost revenue from Targeted Marketing and other SaaS products, which jointly plunged 55% year-over-year.

"This year, the COVID-19 outbreak adversely impacted this seasonally slow period even further across China. Many businesses were temporarily shut down or delayed restarting their operations for many weeks as the pandemic unfolded," Weidong Luo, the chairman, and the chief executive officer said in a statement today.

He added that the company ramped back up to 100% capacity by mid-March.

"During this period of temporary disruption, we took the initiative to further strengthen our core competencies. This included narrowing our focus on Developer Services, improving operational and technical efficiency, streamlining internal procedures, and reinforcing our commitment to delivering exceptional customer service." 

Established in 2011, Aurora Mobile provides mobile services including push notification, instant messaging, analytics, sharing, and short message services (SMS). As of March, its monthly active figure of unique mobile devices rose to 1.36 billion compared with 1.07 billion in the same month in the previous year. 

While Aurora Mobile did not provide guidance figures, it said it remains concentrated to "drive the growth" Developer Services and SaaS products.

Shares of Aurora Mobile are down 51% year-to-date.