CooTek (Cayman) Inc. (NYSE: CTK) was among the biggest losers in trading Thursday, ending down 14%, at $1.78 per share.
The company reported disappointing financials for the first quarter today, seeing revenue decline of 24% year-over-year to $81.6 million. Adjusted net loss was $11.1 million, or 18 cents per share – a miss on analyst consensus of 17 cents per share.
CooTek also saw a decline of 19% in average daily active users, which was 20.3 million. Monthly active users were down 34%, at 58.6 million, according to the report. On a positive note, the average daily reading time per daily active user grew to approximately 148 minutes in March 2021 at its online literature platform, Fengdu Novel.
CooTek offers e-learning products with a focus on three main categories: online literature, scenario-based content apps, and mobile games. In the call with analysts today, chairman and chief technology officer of CooTek, Karl Kan Zhang, noted the company’s recent partnerships with two game studios in Shanghai to expand its product offerings. He also expressed optimism for CooTek’s future profitability and continued expansion, including in the United States.
For CTK investors, the promises weren’t sufficient, however. Shares in CooTek hit their 52-week low of $1.75 earlier on Thursday. Year-to-date, the stock in CooTek is down 34%. Although, in the mid-February market rush, its shares traded near $7 apiece – a brief comeback to its level of a year ago.
And for some U.S. investor rights litigators, this was a sign to jump in. Bronstein, Gewirtz & Grossman, LLC, among others, announced today its investigation into CooTek, concerning “whether CooTek and certain of its officers and/or directors have violated federal securities laws.” Bronstein cited the company’s December 2020 financial report for the third quarter, as well as today’s report, which significantly weighed on CTK shares.
For the second quarter, CooTek forecast revenue of $83 million.