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Tuesday, March 5, 2019

Qutoutiao (QTT) reported earnings on Tue 5 March 19 (a/h)

** charts before earnings **


** charts after earnings **

Qutoutiao Inc. (QTT) shares plunged 10% in late trading Tuesday after the Chinese news-aggregation app reported earnings that showed huge growth in revenue and users, but also larger losses. Qutoutiao reported fourth-quarter losses of 398 million renminbi, or $57.9 million, on revenue of 1.33 billion renminbi, or about $193 million, up more than 400% from the year before. After adjusting for stock-based compensation and other effects, the company claimed net losses of $53.3 million, or 22 cents a share. Analysts on average expected adjusted losses of 19 cents a share on revenue of $192.3 million, according to FactSet. The company predicted 2019 revenue of 7.5 billion to 8.5 billion renminbi, after reporting 2018 sales of slightly more than 3 billion renminbi. At current exchange rates, that would be about $1.13 billion to $1.28 billion, while analysts on average were predicting $1.26 billion in 2019 revenue for the company, according to FactSet. Qutoutiao said that daily and monthly users grew more than 200% apiece from the same quarter a year ago, though it paid $108.6 million to acquire users, up nearly 700% from the year before. Qutoutiao shares closed with a 14.2% gain at $15.65 Tuesday, then dropped to about $14 in immediate after-hours action following release of the report. The company went public last year at $7 per ADR.

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