{"id":387442,"date":"2020-11-24T07:03:31","date_gmt":"2020-11-24T12:03:31","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=387442"},"modified":"2020-11-24T07:03:31","modified_gmt":"2020-11-24T12:03:31","slug":"iclick-interactive-asia-group-limited-reports-2020-third-quarter-unaudited-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/iclick-interactive-asia-group-limited-reports-2020-third-quarter-unaudited-financial-results\/","title":{"rendered":"iClick Interactive Asia Group Limited Reports 2020 Third-Quarter Unaudited Financial Results"},"content":{"rendered":"
\n

– Reaches Another Record Quarter in Key Financials –<\/h2>\n

– Enterprise Solutions Business Extends Record-breaking Growth for Four Consecutive Quarters –<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n HONG KONG<\/span>, Nov. 24, 2020<\/span> \/PRNewswire\/ —\u00a0iClick Interactive Asia Group Limited (“iClick” or the “Company”) (NASDAQ: ICLK), an independent online marketing and enterprise data solutions provider in China<\/span>, today announced unaudited financial results for the third quarter ended September 30, 2020<\/span>.<\/p>\n

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\n
\n \"Logo
\n <\/a>\n <\/p>\n<\/p><\/div>\n

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\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

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\n Three Months Ended September 30,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

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\n 2019<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

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\n Percentage<\/b>
\n <\/span>\n <\/p>\n

\n
\n change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n
\n (US$ in thousands)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n (Unaudited)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
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\n Financial Metrics:<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Revenue<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Marketing solutions<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 60,124<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 51,555<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 17%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Enterprise solutions<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 8,781<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 2,613<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 236%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total revenue<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 68,905<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 54,168<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 27%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Gross profit<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 20,121<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 13,557<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 48%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Net (loss)\/income<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (7,097)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 863<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n N\/M<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA[1]<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 4,701<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 1,446<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 225%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Adjusted net income\/(loss)[1]<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2,424<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (517)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n N\/M<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Diluted adjusted net income\/(loss) per ADS[1]<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.03<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (0.01)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n N\/M<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Operating Metrics:<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
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\n Gross billing<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 167,084<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 180,182<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n (7)%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
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\n [1]<\/sup> For more details on these non-GAAP financial measures, please see the tables captioned “Unaudited
Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.”<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

“We have delivered record revenue and gross profit in the third quarter of 2020, as China<\/span> continues to recover from the coronavirus pandemic,” said Jian “T.J.” Tang, iClick’s Chief Executive Officer and Co-Founder. “Revenue for the third quarter was US$68.9 million<\/span>, an increase of 27% from the same period of last year, while our gross profit rose to US$20.1 million<\/span>, up 48% on a year-over-year basis. We recorded a net loss of US$7.1 million<\/span>, primarily due to the fair value losses of convertible notes and derivative liabilities, as our stock price performance remained strong during the third quarter of 2020. However, our adjusted EBITDA increased by 225% year-over-year to US$4.7 million<\/span>. In addition, we had adjusted net income of US$2.4 million<\/span> in the third quarter of 2020. This marks the fourth consecutive quarter of adjusted net income. These solid results of operations are strong evidence of our brand customers’ recognition of the value added by our data-driven solutions.<\/p>\n

“These strong financial results were driven by continued growth in both our Marketing Solutions and Enterprise Solutions segments. The Marketing Solution segment, our core business, reached record revenue with a 17% year-over-year increase to US$60.1 million<\/span>. Just as encouraging, the higher-margin Enterprise Solutions segment also set a revenue record with a 236% increase year-over-year to US$8.8 million<\/span> in the third quarter of 2020. This was the fourth consecutive quarter of sequential growth in the Enterprise Solutions segment, and we reiterate our optimism regarding the future growth potential of this business, driven by a robust outlook for ‘smart retail’.”<\/p>\n

“Following the equity financing in September, our cash position has become stronger, and we are well-capitalized not only to execute our business plan even better but also to seek M&A opportunities more actively as part of our growth strategy,” T.J. continued. “Lastly, the coronavirus epidemic has brought rapid changes to online consumer behaviour in China<\/span> and we will continue to monitor the pandemic’s impact on our operations and keep our investors informed.”<\/p>\n

\n Third Quarter 2020 Results:<\/b>\n <\/p>\n

\n Revenue<\/b>\u00a0for the third quarter of 2020 grew to US$68.9 million<\/span>, up approximately 27% from US$54.2 million<\/span> for the same period of the prior year, attributable to the increase in contributions from existing Marketing Solutions and Enterprise Solutions.<\/p>\n

\n Revenue from Marketing Solutions<\/i>\u00a0grew to US$60.1 million<\/span> for the third quarter of 2020, up approximately 17% from US$51.6 million<\/span> for the third quarter of 2019, primarily as a result of growing market demand from specified action marketing campaigns.<\/p>\n

\n Revenue from Enterprise Solutions<\/i>\u00a0was US$8.8 million<\/span> for the third quarter of 2020, up approximately 236% from US$2.6 million<\/span> for the third quarter of 2019, primarily due to the increasing need for online and offline consumers’ behavioral data integration.<\/p>\n

\n Gross profit<\/b>\u00a0for the third quarter of 2020 was US$20.1 million<\/span>, representing an approximately 48% increase compared with US$13.6 million<\/span> for the third quarter of 2019, mainly due to continual expansion of the Company’s Marketing Solutions and contribution from higher-margin Enterprise Solutions.<\/p>\n

\n Total operating expenses<\/b>\u00a0were US$20.0 million<\/span> for the third quarter of 2020, compared with US$15.8 million<\/span> for the third quarter of 2019. Higher expenses are attributed to the increase in share-based compensation expense of US$1.2 million<\/span> and an additional expected credit loss provision of US$2.6 million<\/span> in view of the uncertainties associated with COVID-19.<\/p>\n

\n Operating income<\/b>\u00a0was US$0.1 million<\/span> for the third quarter of 2020, compared with an operating loss of US$2.3 million<\/span> for the third quarter of 2019. This improvement was a result of the strong growth in gross profit, which was partially offset by the increase in operating expenses.<\/p>\n

\n Net loss<\/b>\u00a0totalled US$7.1 million<\/span> for the third quarter of 2020, compared with net income of US$0.9 million<\/span> for the third quarter of 2019. This was mainly because of (i) the fair value losses of convertible notes of US$1.4 million<\/span> in the third quarter of 2020, compared to the US$2.9 million<\/span> fair value gain of convertible notes in the third quarter of 2019, and (ii) the fair value losses of derivative liabilities of US$6.3 million<\/span> in the third quarter of 2020.<\/p>\n

Net loss attributable to the Company’s shareholders per basic and diluted ADS for the third quarter of 2020 were\u00a0US$0.08, compared with a net income attributable to the Company’s shareholders per basic ADS of US$0.02<\/span>, and a net loss attributable to the Company’s shareholders per diluted ADS of US$0.02<\/span> for the third quarter of 2019. <\/p>\n

\n Adjusted EBITDA<\/b>\u00a0for the third quarter of 2020 rose to US$4.7 million<\/span>, compared with US$1.4 million<\/span> for the third quarter of 2019, mainly due to the strong growth in gross profit of US$6.6 million<\/span>, which was partially offset by a US$4.2 million<\/span> increase in operating expenses. For a reconciliation of the Company’s adjusted EBITDA from net (loss)\/income, its most comparable GAAP measure, please refer to “Unaudited Reconciliations of GAAP and Non-GAAP Results.”<\/p>\n

\n Adjusted net income<\/b>\u00a0for the third quarter of 2020 was US$2<\/span>.4\u00a0million, compared with an adjusted net loss of US$0.5 million<\/span> in the third quarter of 2019. For a reconciliation of the Company’s adjusted net income\/(loss) from net (loss)\/income, its most comparable GAAP measure, please refer to “Unaudited Reconciliations of GAAP and Non-GAAP Results.”<\/p>\n

\n Gross billing<\/b>
\n [2]<\/sup>\u00a0was US$167.1 million<\/span> for the third quarter of 2020, representing a 7% decrease compared with US$180.2 million<\/span> for the third quarter of 2019. This decline was primarily due to the Company’s efforts to optimize its client base to achieve better credit control and to retain and attract customers with a strong financial position amid macroeconomic uncertainties.<\/p>\n

As of September 30, 2020<\/span>, the Company had cash and cash equivalents, time deposits and restricted cash of US$128.0 million<\/span>, compared with US$61.1 million<\/span> as of December 31, 2019<\/span>. <\/p>\n

\n Share Repurchase Program<\/b>\n <\/p>\n

On January 15, 2020<\/span>, the Company announced a share repurchase program in which it may purchase its own ADSs with an aggregate value of up to US$10.0 million<\/span> over the 12-month period ending on December 29, 2020<\/span>. As of September 30, 2020<\/span>, the aggregate value of purchased shares was approximately US$0.7 million<\/span>.<\/p>\n

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\n
\n [2]<\/sup>\u00a0Gross billing is defined as the aggregate dollar amount that clients pay the Company after deducting rebates paid and discounts given to.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Outlook<\/b>\n <\/p>\n

Based on the information available as of the date of this press release, iClick provides the following outlook for the fourth quarter of 2020 and updated guidance for the full year given actual results from the first three quarters of fiscal 2020: <\/p>\n

Fourth\u00a0Quarter 2020:<\/p>\n