CooTek Tops Q4 Backed By Overseas Mobile Games Business

CooTek (Cayman) Inc 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.

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CooTek Tops Q4 Backed By Overseas Mobile Games Business