Categories Earnings, Technology

Qutoutiao (QTT) likely to post a wider loss in Q3

Qutoutiao Inc. (NASDAQ: QTT) is slated to report its earnings results for the third quarter of 2019 on Tuesday, December 3, before the market opens. The top line will be benefited by success in growing the number of active users and the level of user engagement while the bottom line could be hurt by higher costs and expenses.

The company has experienced rapid growth since the launch of Qutoutiao in terms of installed users, monthly active users, daily active users, and revenues. The company’s user growth rate is expected to slow over time as the size of the user base increases. Due to this, the company’s success lies in its ability to increase user engagement with its platform.

Qutoutiao reports a wider-than-expected loss in Q2

In the past, user account systems and loyalty programs have contributed significantly to the growth in its installed users and high user engagement. However, the company remained clueless regarding the effective function of such systems and programs in the future. Along with this, the pressure could be mounting due to a possible increase in acquisition cost per user due to the implementation of new marketing initiatives.

The creation of new content formats and other products and services could be the driving factor for the increase of the size and engagement level of its user base. However, the competition for user traffic and user engagement as well as advertising and marketing spending could lower growth as the company faces strong competition in its business.

Analysts expect the company to report a loss of $0.35 per share on revenue of $196.4 million for the third quarter. In comparison, during the previous year quarter, Qutoutiao posted a loss of $0.40 per share on revenue of $144.54 million. The company has missed analysts’ expectations in all of the past four quarters.

Read: Sprint Q2 earnings review

For the second quarter, Qutoutiao posted a wider loss due to higher costs and expenses. Despite a weak digital advertising market, the Chinese mobile content platform achieved strong revenue growth driven by user base expansion across its products. For the third quarter, the company expects net revenues to be at a similar level as it has achieved in the Q2.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Earnings calendar for the week of May 17

Benchmark stock indexes pared their recent gains early this week amid elevated inflation concerns, but regained a part of the momentum later aided by recovery in tech stocks. The Dow

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top