- CooTek (Cayman) Inc (NYSE:CTK) reported a fourth-quarter FY21 revenue decline of 48% year-on-year to $53 million, beating the consensus of $49.6 million.
- Mobile advertising revenues decreased 49% Y/Y to $51.8 million.
- December 2021 Operational Highlights: Monthly active users of the portfolio products declined 27% Y/Y to 62.6 million. MAUs of the online literature products dropped 58% Y/Y to 12.3 million.
- The average daily reading time of its online literature product in the Chinese market, Fengdu Novel's users, was 179 minutes in December 2021 versus 153 minutes in September 2021.
- Margin: The gross margin contracted just 440 bps to 88.7% as costs declined 15% Y/Y.
- Adjusted net income per ADS of $0.007 topped the consensus loss of $(0.01).
- CooTek held $18.4 million in cash and equivalents and used $15.5 million in operating cash flow.
- Chair Karl Zhang said, "Clearly, the overseas mobile games business constitutes a core segment of the group which mitigates the uncertainties in the Chinese mobile advertising market. In addition to our self-developed mobile games, we started to cooperate with third-party studios to expand our publishing business. We expect that the revenue and gross profit contribution from the overseas market will continue to increase in the coming quarters."
- Management Share Purchase: Zhang disclosed his intention to use his funds to purchase up to $3 million of the company's ADSs for the next six months.
- Price Action: CTK shares traded higher by 30.5% at $0.26 in premarket on the last check Tuesday.
