The top-line growth was backed by steady and consistent user
engagement. In the last-reported quarter, average daily active users soared
224% to 30.9 million, while average monthly active users jumped 286% to 93.8
million.
However, owing to the rising expenses required to improve the budding platform, net loss widened more than ten times to $145 million. Shares fell 14% on the mixed Q4 results.
The highly volatile stock is down 20% in the year-to-date period. After hitting a 2019-high in mid-March the stock fell as much as 64% after the company announced plans to offer new stock for $10 per share. Investors did not take lightly the stock offer coming only half a year after its IPO.
READ: IQIYI BEATS ON BOTTOM-LINE IN Q1, KEEPS ADDING USERS
Qutoutiao has not yet been able to recover from the fall. The management is likely to provide more clarifications during the earnings conference call.
QTT has a 12-month
average price target of $12.20, suggesting 115% upside from its last close.
Founded in 2016, Qutoutiao aggregates articles and short videos and presents customized feeds to users.