Fourth Quarter 2023 Financial Highlights

• Revenues were RMB77.4 million (US$10.9 million), a decrease of 11% year-over-year.

• Cost of revenues was RMB24.1 million (US$3.4 million), a decrease of 11% year-over-year.

• Gross profit was RMB53.3 million (US$7.5 million), a decrease of 11% year-over-year.

• Total operating expenses were RMB61.2 million (US$8.6 million), a decrease of 36% year-over-year.

• Net loss was RMB17.9 million (US$2.5 million), compared with a net loss of RMB31.8 million for the same quarter last year.

• Net loss attributable to Aurora Mobile Limited’s shareholders was RMB17.9 million (US$2.5 million), compared with a net loss attributable to Aurora Mobile Limited’s shareholders of RMB32.7 million for the same quarter last year.

• Adjusted net loss (non-GAAP) was RMB1.8 million (US$0.3 million), compared with a RMB6.6 million adjusted net loss for the same quarter last year.

• Adjusted EBITDA (non-GAAP) was at positive RMB0.1 million (US$21 thousand), compared with a positive RMB0.6 million for the same quarter last year.

Fourth Quarter 2023 Financial Results

Revenues were RMB77.4 million (US$10.9 million), a decrease of 11% from RMB86.9 million in the same quarter of last year, attributable to a 12% decrease in revenue from Developer Services (mainly due to weakness in Value-Added Service revenue) and a 8% decrease in revenue from Vertical Applications.

Cost of revenues was RMB24.1 million (US$3.4 million), a decrease of 11% from RMB27.1 million in the same quarter of last year. The decrease was mainly due to a RMB7.5 million decrease in media cost, and offset by a RMB1.6 million increase in short messaging cost and a RMB2.2 million increase in technical service fee.

Gross profit was RMB53.3 million (US$7.5 million), a decrease of 11% from RMB59.8 million in the same quarter of last year.

Total operating expenses were RMB61.2 million (US$8.6 million), a decrease of 36% from RMB95.4 million in the same quarter of last year.

• Research and development expenses were RMB27.1 million (US$3.8 million), a decrease of 23% from RMB35.0 million in the same quarter of last year, mainly due to a RMB2.4 million decrease in personnel costs, a RMB5.0 million decrease in bandwidth cost, and a RMB4.6 million decrease in depreciation expense. The impact is partially offset by a RMB5.1 million increase in cloud cost.

• Sales and marketing expenses were RMB22.1 million (US$3.1 million), a decrease of 10% from RMB24.5 million in the same quarter of last year, mainly due to a RMB3.0 million decrease in personnel costs.

• General and administrative expenses were RMB12.1 million (US$1.7 million), a decrease of 66% from RMB35.9 million in the same quarter of last year, mainly due to a RMB22.4 million decrease in long-lived assets impairment.
  

Loss from operations was RMB7.9 million (US$1.1 million), compared with RMB35.6 million in the same quarter of last year.

Net Loss was RMB17.9 million (US$2.5 million), compared with RMB31.8 million in the same quarter of last year.

Adjusted net loss (non-GAAP) was RMB1.8 million (US$0.3 million), compared with RMB6.6 million in the same quarter of last year.

Adjusted EBITDA (non-GAAP) was at positive RMB0.1 million (US$21 thousand) compared with a positive RMB0.6 million for the same quarter of last year.

The cash and cash equivalents and restricted cash were RMB115.0 million (US$16.2 million) as of December 31, 2023 compared with RMB116.3 million as of December 31, 2022.

Fiscal year 2023 Financial Highlights

• Revenues were RMB290.2 million (US$40.9 million), a decrease of 12% year-over-year.

• Cost of revenues was RMB90.9 million (US$12.8 million), a decrease of 12% year-over-year.

• Gross profit was RMB199.3 million (US$28.1 million), a decrease of 12% year-over-year.

• Total operating expenses were RMB250.2 million (US$35.2 million), a decrease of 30% year-over-year.

• Net loss was RMB63.9 million (US$9.0 million), compared with a net loss of RMB108.5 million in 2022.

• Net loss attributable to Aurora Mobile Limited’s shareholders was RMB62.7 million (US$8.8 million), compared with a net loss attributable to Aurora Mobile Limited’s shareholders of RMB107.0 million in 2022.

• Adjusted net loss (non-GAAP) was RMB20.1 million (US$2.8 million), compared with a RMB56.5 million adjusted net loss in 2022.

• Adjusted EBITDA (non-GAAP) was at negative RMB7.4 million (US$1.1 million), compared with a negative RMB23.0 million in 2022.

Fiscal year 2023 Financial Results

Revenues were RMB290.2 million (US$40.9 million), a decrease of 12% from RMB328.8 million in 2022, attributable to a 13% decrease in revenue from Developer Services (mainly due to weakness in Value-Added Service revenue) and a 9% decrease in revenue from Vertical Applications.

Cost of revenues was RMB90.9 million (US$12.8 million), a decrease of 12% from RMB103.1 million in 2022. The decrease was mainly due to a RMB30.7 million decrease in media cost, and offset by a RMB5.9 million increase in short message cost, a RMB8.7 million increase in technical service fee and a RMB2.5 million increase in cloud cost.

Gross profit was RMB199.3 million (US$28.1 million), a decrease of 12% from RMB225.8 million in 2022.

Total operating expenses were RMB250.2 million (US$35.2 million), a decrease of 30% from RMB358.2 million in last year.

• Research and development expenses were RMB121.8 million (US$17.2 million), a decrease of 21% from RMB154.5 million in last year, mainly due to a RMB12.8 million decrease in personnel costs, a RMB12.0 million decrease in bandwidth cost, and a RMB17.0 million decrease in depreciation expense. The impact is partially offset by a RMB11.3 million increase in cloud cost.

• Sales and marketing expenses were RMB82.7 million (US$11.6 million), a decrease of 16% from RMB98.3 million in last year, mainly due to a RMB17.0 million decrease in personnel costs.

• General and administrative expenses were RMB45.7 million (US$6.4 million), a decrease of 57% from RMB105.4 million in last year, mainly due to a RMB22.4 million decrease in long-lived assets impairment, a RMB13.0 million decrease in personnel costs, a RMB8.8 million decrease in professional fee, and a one-time RMB7.6 million gain on disposal of property and equipment.
  

Loss from operations was RMB50.9 million (US$7.2 million), compared with RMB132.4 million in 2022.

Net Loss was RMB63.9 million (US$9.0 million), compared with RMB108.5 million in 2022.

Adjusted net loss (non-GAAP) was RMB20.1 million (US$2.8 million), compared with RMB56.5 million in 2022.

Adjusted EBITDA (non-GAAP) was at negative RMB7.4 million (US$1.1 million) compared with a negative RMB23.0 million in 2022.

Update on Share Repurchase

As of December 31, 2023, the Company had repurchased a total of 187,691 ADS, of which 53,425 ADSs, or around US$121.2 thousand were repurchased during the fourth quarter in 2023. ADS refers to American Depositary Shares, each 3 ADS representing 40 Class A common shares.

The Company’s board of directors has extended its previous share repurchase program and also approved a new program under which the Company may repurchase up to US$5 million of its shares until December 31, 2024. The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company plans to fund repurchases from its existing cash balance.

Conference Call

The Company will host an earnings conference call on Tuesday, March 12, 2024 at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Beijing time on the same day).

All participants must register in advance to join the conference using the link provided below. Please dial in 15 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.

Participant Online Registration: https://register.vevent.com/register/BId10de20d3a844f879ebd944ed635ee57

A live and archived webcast of the conference call will be available on the Investor Relations section of Aurora Mobile’s website at https://ir.jiguang.cn/.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses two non-GAAP measures, adjusted net loss and adjusted EBITDA, as a supplemental measure to review and assess its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net loss as net loss excluding share-based compensation, reduction in force charges, share of loss from equity method investment, impairment of long-lived assets, impairment of long-term investments and change in fair value of foreign currency swap contract. The Company defines adjusted EBITDA as net loss excluding interest expense, depreciation of property and equipment, amortization of intangible assets, amortization of land use right, income tax expenses/(benefits), share-based compensation, reduction in force charges, share of loss from equity method investment, impairment of long-lived assets, impairment of long-term investments and change in fair value of foreign currency swap contract.

The Company believes that adjusted net loss and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in loss from operations and net loss.

The Company believes that adjusted net loss and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net loss and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of the non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SAAS business model; its ability to maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

About Aurora Mobile Limited

Founded in 2011, Aurora Mobile is a leading provider of customer engagement and marketing technology services in China. Since its inception, Aurora Mobile has focused on providing stable and efficient messaging services to enterprises and has grown to be a leading mobile messaging service provider with its first-mover advantage. With the increasing demand for customer reach and marketing growth, Aurora Mobile has developed forward-looking solutions such as Cloud Messaging and Cloud Marketing to help enterprises achieve omnichannel customer reach and interaction, as well as artificial intelligence and big data-driven marketing technology solutions to help enterprises' digital transformation.

For more information, please visit https://ir.jiguang.cn/.

For investor and media inquiries, please contact: 
Aurora Mobile Limited 
ir@jiguang.cn

Christensen 
In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@christensencomms.com

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com

Footnote:

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0999 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 29, 2023.