The stock in Aurora Mobile Ltd. (Nasdaq: JG) tanked 10% to $1.58 per American depositary share by midday Thursday on its announcement of weak revenues in 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 its revenues from Targeted Marketing and other SaaS products, which jointly plunged 55% year-over-year.
The first quarter of 2020 has proven to be a challenging one for many companies, including us. Firstly, the quarter is typically a seasonally weaker one due to the Chinese New Year holiday,”
“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 chief executive officer of Aurora Mobile, said in a statement today.
He added that the company ramped back up to 100% capacity by mid-March and continued, “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 last year.
While Aurora Mobile did not provide guidance figures it said it remains concentrated to “drive the growth” Developer Services and SaaS products.
Luo said, “Overtime, we expect the revenue and gross profit contributions from Targeted Marketing to be less and less significant.”
Shares of Aurora Mobile are down 51% year-to-date.