Hot NEWS to Target:- Jianpu Technology Inc. (NYSE:JT)

Jianpu Technology Inc. (NYSE:JT), started Tuesday trading session with the price $6.13 and closed at price of $5.8 by scoring 0.35%. Day range of the stock was $5.73 – $6.13. JT stock traded with total volume of 186042 shares while the average trading capacity remained 230126 shares.  Earnings per share was $-0.19. JT has total market capitalization of $957805941.

Jianpu Technology Inc. (NYSE:JT), a leading independent open platform for discovery and recommendation of financial products in China, reported its unaudited financial results for the first quarter ended March 31, 2018.

First Quarter 2018 Financial Results

Total revenues for the first quarter of 2018 increased by 145% to RMB335.7 million (US$53.5 million) from RMB137.3 million in the same period of 2017, primarily due to increases in revenues from recommendation services.

Total revenues from recommendation services increased by 131% to RMB289.3 million (US$46.1 million) in the first quarter of 2018 from RMB125.2 million in the same period of 2017.

Revenues from recommendation services for loans increased by 46.5% to RMB160.1 million (US$25.5 million) in the first quarter of 2018 from RMB109.3 million in the same period of 2017, due to the increase in both number of loan applications on the Company’s platform and average fee per loan application. The number of loan applications on the Company’s platform was approximately 12.1 million in the first quarter of 2018, representing an increase of approximately 21.0% from the prior-year period. The average fee per loan application increased to RMB13.27 (US$2.12) in the first quarter of 2018 from RMB10.93 in the first quarter of 2017.

Revenues from recommendation services for credit cards increased by 718% to RMB129.2 million (US$20.6 million) in the first quarter of 2018 from RMB15.8 million in the first quarter of 2017, due to the increase in both credit card volume and average fee per credit card. Credit card volume for recommendation services reached approximately 1.3 million in the first quarter of 2018, representing an increase of approximately 550% from the prior-year period. The average fee per credit card increased to RMB97.15 (US$15.49) in the first quarter of 2018 from RMB77.33 in the first quarter of 2017.

Revenues from advertising and marketing services and other services increased by 280% to RMB46.4 million (US$7.4 million) in the first quarter of 2018 from RMB12.2 million in the same period of 2017, primarily due to an increase in revenues from big data and risk management solutions as well as an increase in the advertising services provided to credit card issuers.

Cost of revenues increased by 183% to RMB49.3 million (US$7.9 million) in the first quarter of 2018 from RMB17.4 million in the same period of 2017. The increase was primarily attributable to the increases in traffic acquisition costs of advertising and marketing services, data acquisition costs and short message service fees.

Gross profit increased by 139% to RMB286.4 million (US$45.7 million) in the first quarter of 2018 from RMB119.9 million in the same period of 2017. The increase was primarily attributable to continuing growth in revenue.

Sales and marketing expenses increased by 111% to RMB259.0 million (US$41.3 million) in the first quarter of 2018 from RMB123.0 million in the same period of 2017. The increase was mainly due to growth in marketing and advertising expenses and payroll related costs.

Research and development expenses increased by 107% to RMB43.6 million (US$6.9 million) in the first quarter of 2018 from RMB21.1 million in the same period of 2017, primarily due to the increase in payroll costs mainly for the new hiring of R&D people to further enhance our big data and risk management service capabilities.

General and administrative expenses increased by 970% to RMB42.8 million (US$6.8 million) in the first quarter of 2018 from RMB4.0 million in the same period of 2017. The increase was primarily due to recognition of share-based compensation, including the employee options granted historically with a performance target contingent upon the IPO and the new options granted under Jianpu’s 2017 Share Incentive Plan to the management and executives in December 2017, as well as increase in professional fees for maintaining our listing status.

Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses and general and administrative expenses in the first quarter 2018 were RMB37.3 million (US$5.9 million) in total.

Loss from operations increased to RMB59.0 million (US$9.4 million) in the first quarter of 2018 from RMB28.3 million in the same period of 2017.

Income tax expenses was nil in the first quarter of 2018, compared with RMB3.3 million in the same period of 2017. The decrease of the annualized effective tax rate for the first quarter of 2018 was primarily due to the change of the cost and expenses structure and the lower enacted tax rate of subsidiaries in 2018. The Company’s domestic subsidiaries expect to complete their 2017 annual tax filings with relevant tax authorities by the end of May 2018, which may result in a change of tax positions in the income tax provision and deferred tax assets recognized as of December 31, 2017. The effect of such change, if any, will be recognized when it occurs.

Net loss increased by 80.7% to RMB57.1 million (US$9.1 million) in the first quarter of 2018 from RMB31.6 million in the same period of 2017. The increase was primarily due to the increase in share-based compensation expenses.

Non-GAAP adjusted net loss, which excluded share-based compensation expenses from net loss, decreased by 35.9% to RMB19.8 million (US$3.2 million) in the first quarter of 2018 from RMB30.9 million in the same period of 2017.

Non-GAAP adjusted EBITDA, which excluded share-based compensation expenses, depreciation and amortization, interest income and expenses, and income tax expenses from net loss, for the first quarter of 2018 was a loss of RMB18.6 million (US$3.0 million), representing a decrease of 30.3% in the same period of 2017.

Net cash provided by operating activities was RMB24.7 million (US$3.9 million) for the first quarter of 2018, compared with net cash used in operating activities of RMB62.6 million in the same period of 2017.

As of March 31, 2018, the Company had cash and cash equivalents of RMB1,396.9 million (US$222.7 million), and working capital of approximately RMB1,431.7 million (US$228.2 million).

Outlook: Based on the information available as of the date of this press release, the Company provides the following outlook, which reflects the Company’s current and preliminary view, which is subject to change.

Second Quarter 2018: Based on the Company’s current estimates, total revenues for the second quarter of 2018 are expected to be approximately RMB460 million, representing an increase of approximately 80% on a year-over-year basis.

David is an author, journalist and CEO. He has more than 5 years of experience in institutional investment markets, including fixed income, equities, derivatives and real estate. He has a Bachelor in Business Administration with a major in Finance. He bought his first stocks in a private business at age 15 and made his first public stock trade at 23. David has always been interested in the stock market and how it behaves.

As the dad of two children, he’s made saving money and investing for them a high priority. Over many years of investing, he has made some wise choices and he’s made many mistakes. But he’s learned from both. Mr. David observations and experience give him the insight to stock market patterns and the investor behaviors that create them.

 

Leave a Reply

Your email address will not be published. Required fields are marked *