• Revenue Growth: Total group revenue increased by 7% year over year.
• Developer Subscription Revenue: Grew 11% year over year and 7% quarter over quarter, reaching RMB 51.7 million.
• Net Operating Cash Inflow: Recorded at RMB 12.3 million, the highest in the past 16 quarters.
• Cash Balance: RMB 101 million as of September 30, 2024.
• Financial Risk Management Revenue: Increased by 29% year over year.
• Value Added Services Revenue: Grew by 20% year over year but decreased by 30% quarter over quarter.
• Operating Expenses: RMB 57.1 million, a 4% increase quarter over quarter and a 5% decrease year over year.
• Deferred Revenue: RMB 134.8 million, marking the 11th consecutive quarter above RMB 130 million.
• Accounts Receivable: RMB 40.5 million.
• Total Assets: RMB 351.7 million as of September 30, 2024.
• Share Repurchase: 29,000 ADS repurchased in the quarter, totaling 246,000 ADS since the program's start.

• Warning! GuruFocus has detected 3 Warning Signs with JG.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aurora Mobile Ltd (NASDAQ:JG) achieved a record-breaking quarter with the highest single-quarter revenue for developer subscription services, surpassing RMB 50 million for the first time.
• The company recorded its fifth consecutive quarter of positive adjusted EBITDA, showcasing consistent financial performance.
• Developer subscription revenue grew by 11% year over year and 7% quarter over quarter, indicating strong demand for their services.
• The engage business saw significant growth, with customer numbers increasing by 32% quarter over quarter and cumulative contract value rising by RMB 6 million.
• Aurora Mobile Ltd (NASDAQ:JG) successfully expanded its global reach, with its engagement products and services now sold in over 31 countries and regions.

Negative Points

• Value-added services revenue decreased by 30% quarter over quarter, despite a 20% year-over-year increase, highlighting potential volatility in this segment.
• Market intelligence revenue declined by 41% year over year and 22% quarter over quarter due to weak market demand for Chinese app data.
• Overall vertical application revenue decreased by 6% quarter over quarter and 4% year over year, indicating challenges in this area.
• The company experienced a 92% year-over-year increase in general and administrative expenses, partly due to a one-off gain from the previous year not recurring.
• Aurora Mobile Ltd (NASDAQ:JG) faces challenges in overseas expansion, requiring careful resource allocation and local market adaptation.

Q & A Highlights

Q: Could you provide more details on the three significant achievements this quarter: positive adjusted EBITDA, developer subscription business revenue exceeding RMB 50 million, and the growth of the Engage business? A: Luo Weidong, CEO, explained that achieving these milestones in one quarter is remarkable and attributed it to effective execution. The company started its overseas expansion plan 18-20 months ago, learning and tackling issues independently. This execution led to a record RMB 50 million revenue quarter for developer subscription services and positive adjusted EBITDA. The management's execution skills and determination were key to these achievements.

Q: With offices in Singapore and Malaysia, are there plans to open more offices globally? A: Luo Weidong, CEO, stated that the current offices in Singapore and Kuala Lumpur are strategically located to support Southeast Asia expansion. The company will consider opening more offices globally based on customer numbers and revenue growth. If business in regions like the Gulf becomes significant, they may establish offices in cities like Doha or Dubai.

Q: What are the key factors driving the strong performance in financial risk management? A: Bong Shan-Nen, CFO, highlighted a 29% year-over-year revenue growth in financial risk management, driven by a 28% increase in usage by existing customers. This growth demonstrates the widespread adoption and effectiveness of their products in the financial sector's risk models.

Q: Can you elaborate on the market intelligence segment's performance and new product offerings? A: Bong Shan-Nen, CFO, noted a decrease in market intelligence revenue due to weak demand for Chinese app data. However, they launched a global app ranking service in September, which has seen good trial registrations. This service provides multidimensional indicators for global apps, aiding enterprises and investors in decision-making.

Q: How is the company managing operating expenses amid overseas expansion? A: Bong Shan-Nen, CFO, reported a slight increase in operating expenses due to overseas expansion, particularly in sales and marketing. However, the revenue and gross profit growth outpaced these expenses, contributing positively to the financial statements.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.