On the evening of December 10, Beijing time, Sina Technology News reported that 36Krypton (Nasdaq: KRKR) today released its financial report for the third quarter of 2019 ending September 30. Total revenue was RMB 130.9 million (US$18.3 million), an increase of 59.1% compared to RMB 82.3 million in the same period last year. Net loss was RMB 12.4 million (approximately US$1.7 million), while net profit for the same period last year was RMB 9.8 million. Excluding US GAAP, the adjusted net profit was RMB 13.4 million (approximately US$1.9 million), an increase of 22.0% compared to RMB 11 million in the same period last year.
Third quarter results summary:
The average monthly page views (PV) for the 12-month period ending September 30, 2019 was 389.5 million, compared to 145.6 million for the 12-month period ending September 30, 2018.
Total revenue was RMB 130.9 million (approximately US$18.3 million), up 59.1% from RMB 82.3 million in the same period last year.
Revenue from online advertising services was RMB 54.1 million (US$7.6 million), up 4.6% from RMB 51.7 million in the same period in 2018.
Enterprise value-added services revenue was 64 million yuan (9 million US dollars), an increase of 202.8% compared to RMB 21.1 million in the same period in 2018.
Subscription service revenue was RMB 12.9 million (US$1.8 million), up 36.2% from RMB 9.4 million in the same period in 2018.
Gross profit was 55.1 million yuan (7.7 million US dollars), an increase of 23.3% compared to 44.7 million yuan in the same period in 2018.
Net loss was RMB 12.4 million (approximately US$1.7 million), while net profit for the same period last year was RMB 9.8 million.
Excluding US GAAP, the adjusted net profit was RMB 13.4 million (approximately US$1.9 million), an increase of 22.0% compared to RMB 11 million in the same period last year.
Summary of results for the first nine months of 2019:
Total revenue was RMB 332.8 million (approximately US$46.6 million), an increase of 115.1% compared to RMB 1.547 in the same period last year.
Revenue from online advertising services was 136.6 million yuan (US$18.7 million), an increase of 30.1% compared to RMB 102.7 million in the same period in 2018.
Enterprise value-added services revenue was RMB 1650 (US$23.1 million), up 337.4% from RMB 37.7 million in the same period in 2018.
Subscription service revenue was RMB 34.2 million (US$4.8 million), up 139.0% from RMB 14.3 million in the same period in 2018.
Gross profit was RMB 118 million (US$16.6 million), an increase of 72.1% compared to RMB 69.1 million in the same period in 2018.
Net loss was RMB 57.9 million (approximately US$8.1 million), while net profit for the same period in 2018 was RMB 1.5 million. Based on non-US GAAP, the adjusted net loss was RMB 3 million (approximately US$400,000), while the adjusted net profit for the same period in 2018 was RMB 5.4 million.
Third quarter performance analysis:
Total revenue was RMB 130.9 million (approximately US$18.3 million) compared to RMB 82.3 million for the same period last year.
Revenue from online advertising services was RMB 54.1 million (US$7.6 million), up 4.6% from RMB 51.7 million in the same period in 2018.
Enterprise value-added services revenue was 64 million yuan (9 million US dollars), an increase of 202.8% compared to RMB 21.1 million in the same period in 2018.
Subscription service revenue was RMB 12.9 million (US$1.8 million), up 36.2% from RMB 9.4 million in the same period in 2018.
Revenue costs were RMB 75.8 million (approximately US$10.6 million), up 101.7% from RMB 37.6 million in the same period last year.
Gross profit was 55.1 million yuan (7.7 million US dollars), an increase of 23.3% compared to 44.7 million yuan in the same period in 2018.
Operating expenses were RMB 77.9 million (approximately US$10.9 million) compared to RMB 32.6 million for the same period last year.
Sales and marketing expenses were RMB 31.8 million (approximately US$4.4 million), up 69.0% from RMB 18.8 million in the same period last year.
General and administrative expenses were RMB 37.4 million (approximately US$5.2 million), up 473.8% from RMB 6.5 million in the same period last year.
R&D expenditure was RMB 8.7 million (approximately US$1.2 million), an increase of 20.1% compared to RMB 7.2 million in the same period last year.
Equity incentive expenses were RMB 25.8 million (approximately US$3.6 million), compared to RMB 1.2 million for the same period last year.
Other revenue was RMB 12.8 million (approximately US$1.8 million), up 476.1% from RMB 2.2 million in the same period last year.
Income tax expenses were 2.4 million yuan (about 300,000 US dollars), down 47.8% from RMB 4.6 million in the same period last year.
Net loss was RMB 12.4 million (approximately US$1.7 million), while net profit for the same period last year was RMB 9.8 million.
Excluding US GAAP, the adjusted net profit was RMB 13.4 million (approximately US$1.9 million), an increase of 22.0% compared to RMB 11 million in the same period last year.
The net loss attributable to 36 krypton common shareholders was RMB 635.6 million (approximately US$88.9 million), compared with a net loss of RMB 28.5 million for the same period last year. Mainly due to the increase in convertible and redeemable preferred shares and the impact of re-designation of shares
Both basic and diluted net losses per share were RMB 2.535 (approximately US$0.355), compared to RMB 0.097 for the same period in 2018.
As of September 30, 2019, 36 krypton had cash, cash equivalents and short-term investments of RMB 267.3 million (approximately US$37.4 million), compared to RMB 194.4 million as of December 31, 2018.
Conference call:
The 36 Krypton management team will hold an earnings conference call on December 10, 2019 at 8 a.m. EST (December 10, Beijing/Hong Kong time). The phone numbers to listen to the conference call are as follows: US: +1-866-519-4004; International: +65-6713-5090; Hong Kong, China: 800-906-601; Mainland China: 400-620-8038; Meeting ID: 9808228. Also, the 36krypton website investor relations channel http://ir.36kr.com将对电话会议进行直播，并提供录音. (Li Ming)