BEIJING, June 2, 2020 /PRNewswire/ -- Gridsum Holding Inc.
("Gridsum" or the "Company") (NASDAQ:GSUM), a leading provider of
cloud-based big-data analytics and artificial intelligence ("AI")
solutions in China, today reported
its unaudited financial results for the fourth quarter and full
year ended December 31, 2019.
Fourth Quarter Highlights
- Net revenues increased 30% to RMB138.0
million (US$19.8 million),
from RMB106.0 million in the
comparable period of 2018.
- Gross profit increased 76% to RMB119.8
million (US$17.2 million),
from RMB67.9 million in the
comparable period of 2018.
- Net loss attributable to Gridsum's ordinary shareholders was
RMB126.3 million (US$18.1 million), compared with RMB132.7 million in the same period of 2018.
Fourth Quarter 2019 Financial Results
REVENUES: Net revenues increased 27% to
RMB138.0 million (US$19.8 million) from RMB106.0 million in the comparable period of
2018.
Enterprise revenues decreased 13% to RMB86.2 million (US$12.4
million) from RMB99.3 million
in the comparable period of 2018, primarily due to the Company's
ongoing strategic restructuring towards a focus on higher margin
enterprise and IIoT solution services. Enterprise revenues were
also impacted by a softening Chinese macroeconomic environment and
a decrease in consumer demand.
E-Government and other revenues increased 501% to RMB53.8 million (US$7.7
million) from RMB9.0 million
in the comparable period of 2018. The significant increase was
primarily due to the rapid growth of the Company's IIoT business
which accounted for a low double-digit percentage of total revenues
in the quarter.
COST OF REVENUES: Cost of revenues decreased 52%
to RMB18.2 million (US$2.6 million), compared with RMB38.1 million in the comparable period of
2018.
GROSS PROFIT AND GROSS MARGIN: Gross profit
increased 76% to RMB119.8million
(US$17.2 million) from RMB67.9 million in the comparable period of 2018.
Gross margin improved to 86.8% from 64.1%, reflecting the shift
taking place in the Company's revenue mix towards higher margin
enterprise and IIoT solution services.
OPERATING EXPENSES: Total operating expenses
increased 5% to RMB261.2 million
(US$37.5 million) from RMB249.1 million in the comparable period of
2018.
- Sales and marketing expenses decreased 18% to RMB36.4 million (US$5.2
million) from RMB44.6 million
in the comparable period of 2018. The decrease was primarily due to
a RMB2.1 million decrease in
marketing and promotional expenses, a RMB2.1
million decrease in entertainment expenses, and a
RMB1.2 million decrease in meeting
related expenses.
- Research and development expenses decreased 57% to RMB62.8 million (US$9.0
million) from RMB146.1 million
in the comparable period of 2018. The decrease primarily reflects
the Company moving past the peak of front-end investment into its
industrial AI and IIoT platforms.
- General and administrative expenses increased 177% to
RMB162.0 million (US$23.3 million) from RMB58.4 million in the comparable period of 2018.
The increase was primarily due to a RMB119.3
million provision for bad debt that reflects both the
restructuring of the Company's business towards higher margin
enterprise and IIoT solution services as well as the adverse impact
on the Chinese economy created by the COVID-19 outbreak and other
factors.
LOSS FROM OPERATIONS: Loss from operations was
RMB141.4 million (US$20.3 million), compared with RMB181.2 million in the comparable period of
2018.
NET LOSS ATTRIBUTABLE TO GRIDSUM'S ORDINARY
SHAREHOLDERS: Net loss attributable to Gridsum's ordinary
shareholders was RMB126.3 million
(US$18.1 million), compared with
RMB132.7 million in the comparable
period of 2018.
NON-GAAP NET LOSS ATTRIBUTABLE TO GRIDSUM'S ORDINARY
SHAREHOLDERS: Non-GAAP net loss attributable to Gridsum's
ordinary shareholders, which is defined as net loss attributable to
Gridsum's ordinary shareholders before share-based compensation
expenses, was RMB116.1 million
(US$16.7 million), compared with
RMB121.4 million in the comparable
period of 2018.
EBITDA: Loss before interest, income tax,
depreciation and amortization was RMB142.1
million (US$20.4 million),
compared with RMB128.8million in the
comparable period of 2018.
ADJUSTED EBITDA: Adjusted loss before interest,
income tax, depreciation and amortization, which excludes
share-based compensation expenses, was RMB131.9 million (US$18.9
million), compared with RMB117.5
million in the comparable period of 2018.
NET LOSS PER ADS ATTRIBUTABLE TO GRIDSUM'S ORDINARY
SHAREHOLDERS: Net loss per ADS attributable to Gridsum's
ordinary shareholders was RMB3.66
(US$0.53), compared with RMB4.30 in the comparable period of 2018.
NON-GAAP NET LOSS PER ADS ATTRIBUTABLE TO GRIDSUM'S
ORDINARY SHAREHOLDERS: Non-GAAP net loss per ADS
attributable to Gridsum's ordinary shareholders was RMB3.36 (US$0.48),
compared with RMB3.94 in the
comparable period of 2018.
Each ADS represents one Class B ordinary share. For purposes of
determining net loss per ADS attributable to Gridsum's ordinary
shareholders, the weighted average number of ordinary shares for
the fourth quarter of 2019 was 34,543,432. As of December 31, 2019, the total number of ordinary
shares outstanding was 34,576,351.
Balance Sheet
As of December 31, 2019, the
Company had cash and cash equivalents of RMB25.2 million (US$3.6
million), and restricted cash of RMB1.4 million (US$0.2
million).
Full Year 2019 Financial Results
REVENUES: Net revenues decreased 24% to
RMB326.6 million (US$46.9 million) from RMB431.2 million in 2018.
Enterprise revenues decreased 33% to RMB258.9 million (US$37.2
million) from RMB387.6 million
in 2018, primarily due to the Company's ongoing strategic
restructuring towards a focus on higher margin enterprise and IIoT
solution services. Enterprise revenues were also impacted by a
softening Chinese macroeconomic environment and a decrease in
consumer demand.
E-Government and other revenues increased 35%, to RMB71.8 million (US$10.3
million), from RMB53.1 million
in 2018, primarily due to the rapid growth in the Company's IIoT
business which accounted for a low double-digit percentage of total
revenues during the year.
COST OF REVENUES: Cost of revenues decreased 23%
to RMB77.4 million (US$11.1 million) from RMB100.9 million in the comparable period of
2018.
GROSS PROFIT AND GROSS MARGIN: Gross profit
decreased 25% to RMB249.2 million
(US$35.8 million) from RMB330.4 million in 2018. Gross margin was 76.3%,
essentially flat when compared with 2018. The Company believes
gross profit and gross margin will begin to improve in 2020 as its
sales mix continues to shift towards higher margin enterprise and
IIoT solution services which are expected to increasingly
contribute a greater percentage of revenue.
OPERATING EXPENSES: Total operating expenses
declined 11%, to RMB784.5 million
(US$112.7 million) from RMB882.1 million in 2018.
- Sales and marketing expenses decreased13% to RMB144.4 million (US$20.7
million) from RMB166.2 million
in 2018. The decrease was primarily due to a RMB12.5 million decrease in marketing and
promotional expenses and a RMB3.3
million decrease in personnel costs.
- Research and development expenses decreased 40% to RMB320.4 million (US$46.0
million) from RMB533.6 million
in 2018. The decrease primarily reflects a slowdown in spending as
the Company moves past the peak of its front-end investments in its
industrial AI and IIoT platforms.
- General and administrative expenses increased 75% to
RMB319.7 million (US$45.9 million) from RMB182.3 million in 2018. The increase was
primarily due to a RMB137.9 million
provision for bad debt that reflects the adverse impact on the
Chinese economy created by the COVID-19 outbreak.
LOSS FROM OPERATIONS: Loss from operations was
RMB535.3 million (US$76.9 million), compared with RMB551.7 million in 2018.
NET LOSS ATTRIBUTABLE TO GRIDSUM'S ORDINARY
SHAREHOLDERS: Net loss attributable to Gridsum's ordinary
shareholders was RMB537.9 million
(US$77.3 million), compared with
RMB521.3 million in 2018.
NON-GAAP NET LOSS ATTRIBUTABLE TO GRIDSUM'S ORDINARY
SHAREHOLDERS: Non-GAAP net loss attributable to Gridsum's
ordinary shareholders, which is defined as net loss attributable to
Gridsum's ordinary shareholders before share-based compensation
expenses, was RMB485.5 million
(US$69.7million), compared with
RMB482.3 million in 2018.
EBITDA: Loss before interest, income tax,
depreciation and amortization was RMB514.6
million (US$73.9 million),
compared with RMB493.1 million in
2018.
ADJUSTED EBITDA: Adjusted loss before interest,
income tax, depreciation and amortization, which excludes
share-based compensation expenses, was RMB462.2 million (US$66.4
million), compared with RMB454.1
million in 2018.
NET LOSS PER ADS ATTRIBUTABLE TO GRIDSUM'S ORDINARY
SHAREHOLDERS: Net loss per ADS attributable to Gridsum's
ordinary shareholders was RMB15.91
(US$2.29), compared with RMB16.91 in 2018.
NON-GAAP NET LOSS PER ADS ATTRIBUTABLE TO GRIDSUM'S
ORDINARY SHAREHOLDERS: Non-GAAP net loss per ADS
attributable to Gridsum's ordinary shareholders was RMB14.36 (US$2.06),
compared with RMB15.65 in 2018.
Each ADS represents one Class B ordinary share. For purposes of
determining net loss per ADS attributable to Gridsum's ordinary
shareholders, the weighted average number of ordinary shares for
2019 was 33,810,862.
Full Year 2019 Review and Company Strategic
Restructuring
Throughout 2019, Gridsum strategically restructured its business
to towards a solutions and product mix that is expected to generate
higher margins, higher returns, higher growth, increased
operational efficiency and productivity, and ultimately result in
improved operational and financial results going forward.
Key components of this process include the restructuring of the
product development cycle, sales and service functions,
organizational and departmental KPIs, and sales teams as well as
the Company's product and client focus.
In addition, demand for the Company's products and solutions
throughout 2019 was adversely impacted by a softening Chinese
macroeconomic environment and a decrease in consumer demand.
Gridsum's marketing-oriented solutions were particularly impacted
and resulted in a deterioration in margins and working capital
terms with clients across a variety of sectors. These challenges
were most acute for the Company's search-related businesses,
including the SEM Dissector and SEO Dissector solutions.
The combination of these factors has constrained the Company's
financial position as a result. The availability of cash and other
financial resources have declined, requiring management to
carefully manage working capital and adjust the cost and revenue
mix, among others, to maintain liquidity and continue business
operations. This compelled the Company to strategically accelerate
its transition towards higher margin enterprise and IIoT solution
services and reduce its exposure to search-related businesses which
is typically characterized by heavy working capital requirements
and sub-optimal receivable terms. These dynamics deteriorated
further during the year to the extent that the Company may continue
to reduce its exposure to search-related businesses in 2020
depending on market conditions and its financial position, and
possibly consider a full exit.
The Company's financial performance in 2019 reflects the impact
of its strategic restructuring, tightening operating conditions,
and cashflow and liquidity pressure. The softening Chinese economy
and a decrease in consumer demand also adversely impacted the
Company's results for the year. As a result, the Company
experienced only a small increase in overall customer numbers from
539 in 2018 to 547 in 2019, and a decline in average customer
contribution from RMB0.8 million in
2018 to RMB0.6 million in 2019. This
led to the 24% decline in net revenues from RMB431.2 million in 2018 to RMB326.6 million in 2019. Additionally, the
Company's headcount decreased from 1,192 employees as of
December 31, 2018 to 929 employees as
of December 31, 2020, to improve
efficiencies.
These challenging operating conditions have only been
exacerbated by the outbreak of COVID-19 in early 2020.The Company
expects the combined effects from its strategic restructuring and
the outbreak of COVID-19 to continue adversely impacting its
financial and operational results throughout 2020.
COVID-19
Starting in January 2020, the
Chinese government initiated a variety of emergency measures to
contain the spread of COVID-19 through the lockdown of cities, road
and business closures, travel restrictions and emergency
quarantines, among others. Businesses and individuals have reduced
risk by cutting travel, cancelling meetings and events, and
implementing work-at-home policies. All of these efforts caused
significant disruption to both the Chinese and global economies,
and affected normal business operations across many sectors and
countries. As a result, business confidence, consumer sentiment and
economic activity have been shaken. Broader macroeconomic
implications, including reduced levels of economic growth and
possibly a global recession, will likely continue well after the
spread of infection is contained.
Substantially all of Gridsum's operations and revenues are
generated in China. From January
to February 2020, the Company
temporarily closed all of its corporate offices and requested all
employees to work remotely. This compelled Gridsum and certain
customers and other stakeholders to implement temporary adjustments
to its operations that include facilitating employees to work from
home and adopt remote working tools.
Following the outbreak of COVID-19, Gridsum experienced an
immediate impact on its operations, including a significant
slowdown in the customer sales origination and renewal cycle,
increased timeframes to accomplish key tasks, and incremental
challenges in collecting accounts receivable in a timely manner. In
particular, a significant number of Gridsum's marketing automation
customers reduced their marketing budgets, which adversely impacted
the Company's marketing-related solutions revenue. This caused a
materially negative impact on the Company's net revenues and
liquidity position. Management expects these and other negative
effects to continue to adversely affect the Company's business
operations, results of operation and financial position through
2020 and potentially beyond. It is not possible at this time to
estimate the impact that COVID-19 will have on the business, as the
impact will depend on future developments, which are highly
uncertain and cannot be predicted.
Recent Developments
On January 3, 2020, the Board of
Directors of Gridsum Holding Inc. received a letter from FutureX
Capital Limited regarding the withdrawal of its preliminary
non-binding proposal dated May 8,
2018 to acquire all outstanding shares of the Company,
effective as of January 3, 2020.
On May 1, 2020, the Board of
Directors of Gridsum Holding Inc. received a revised non-binding
proposal from Guosheng Qi, Chairman of the Board and the Chief
Executive Officer of the Company, Guofa
Yu, a director and the Chief Operating Officer of the
Company, their respective affiliated entities, Beta Dynamic
Limited, Shenzhen Qianhai Banyan Capital Investment &
Management Co., Ltd and Hangzhou Yutao Capital Co., Ltd, to acquire
all of the outstanding shares of the Company that are not already
owned by them in a going private transaction for US$2.00 in cash per American depositary share,
each representing one Class B ordinary share of the Company, or
US$2.00 in cash per ordinary
share.
The Special Committee of the Board, which was formed to consider
the original proposal and other alternative transactions, is
evaluating the revised proposal with the assistance of its
financial and legal advisors. The Board and the Special Committee
caution the Company's shareholders and others considering trading
in the Company's securities that no decision has been made by the
Special Committee or the Board with respect to the Company's
response to the revised proposal. There can be no assurance that
any definitive offer will be made, that any agreement will be
executed, or that this or any other transaction will be approved or
consummated.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. Dollars ("US$") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to US$ were made at the rate of RMB6.9618 to US$1.00, the noon buying rate in effect on
December 31, 2019 in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or US$ amounts referred could be
converted into US$ or RMB, as the case may be, at any particular
rate or at all.
Use of Non-GAAP Financial Measures
In evaluating the Company's business, the Company considers and
uses the following non-GAAP financial measures as supplemental
measures to review and assess the Company's operating performance:
non-GAAP net loss attributable to Gridsum's ordinary shareholders,
non-GAAP net loss per share attributable to Gridsum's ordinary
shareholders, non-GAAP net loss per ADS attributable to Gridsum's
ordinary shareholders, EBITDA and adjusted EBITDA. 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 in accordance with U.S. GAAP. Non-GAAP net
loss attributable to Gridsum's ordinary shareholders is net loss
attributable to Gridsum's ordinary shareholders before share-based
compensation, non-GAAP net loss per share attributable to Gridsum's
ordinary shareholders is the per share equivalent and non-GAAP net
loss per ADS attributable to Gridsum's ordinary shareholders is the
per ADS equivalent, EBITDA is net loss before interest income and
expenses, income tax expenses and depreciation expenses, and
adjusted EBITDA is EBITDA before share-based compensation.
The Company presents these non-GAAP financial measures because
they are used by the Company's management to evaluate the Company's
operating performance and formulate the Company's business plans.
These non-GAAP financial measures enable the Company's management
to assess the Company's operating results without considering the
impact of non-cash charges, including depreciation expenses and
share-based compensation, and without considering the impact of
non-operating items such as interest income and expenses and income
tax expenses. The Company also believes that the use of these
non-GAAP measures facilitates investors' assessment of the
Company's operating performance.
These non-GAAP financial measures are not defined under U.S.
GAAP and are not presented in accordance with U.S. GAAP. These
non-GAAP financial measures have limitations as analytical tools.
One of the key limitations of using these non-GAAP financial
measures is that they do not reflect all items of income and
expense that affect the Company's operations. Interest income and
expenses, income tax expenses, depreciation expenses and
share-based compensation have been and may continue to be incurred
in the Company's business and are not reflected in the presentation
of adjusted EBITDA. Further, these non-GAAP financial measures may
differ from the non-GAAP financial measures used by other
companies, including Gridsum's peer companies, so their utility for
comparison purposes may be limited.
The Company compensates for these limitations by reconciling the
Company's non-GAAP financial measures to the most directly
comparable U.S. GAAP financial measures, which should be considered
when evaluating the Company's performance. Investors are encouraged
to review the Company's financial information in its entirety and
not rely on a single financial measure. A reconciliation of these
non-GAAP financial measures to their closest U.S. GAAP financial
measures appears at the end of this release.
About Gridsum
Gridsum Holding Inc. (NASDAQ: GSUM) is a leading provider of
cloud-based big-data analytics and AI solutions for multinational
and domestic enterprises and government agencies in China. Gridsum's core technology, the Gridsum
Big Data Platform and the Gridsum Prophet: Enterprise AI Engine, is
built on a distributed computing framework and performs real-time
multi-dimensional correlation analysis of both structured and
unstructured data. This enables Gridsum's customers to identify
complex relationships within their data and gain new insights that
help them make better business decisions. The Company is named
"Gridsum" to symbolize the combination of distributed computing
(Grid) and analytics (sum). As a digital intelligence pioneer, the
Company's mission is to help enterprises and government
organizations in China use data in
new and powerful ways to make better-informed decisions and be more
productive.
For more information, please visit http://www.gridsum.com/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
forward-looking statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These statements can be identified by terminology such as
"may," "will," "expects," "anticipates," "aims," "future,"
"intends," "plans," "believes," "estimates," "likely to" and
similar statements. Forward-looking statements involve inherent
risks and uncertainties. Many factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the substantial doubt about
our ability to continue as a going concern, duration and impact of
the COVID-19 pandemically, general economic conditions in
China, unexpected difficulties in
pursuit of our business strategy, unpredictable demand for
solutions we have developed, difficulties keeping and strengthening
relationships with existing customers or expanding our customer
base, availability of additional capital when needed, uncertainties
associated with our repayment of indebtedness and our ability to
maintain listing for trading on The Nasdaq Stock Market, and
uncertainty about the proposed going private transaction. Further
information regarding these and other risks is included in
Gridsum's annual report on Form 20-F and other reports filed with,
or furnished to, the U.S. Securities and Exchange Commission. All
information provided in this press release is as of the date of
this press release, and Gridsum undertakes no duty to update such
information except as required under applicable law.
Investor Relations
Gridsum
ir@gridsum.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
Email: carnell@christensenir.com
In U.S.
Mr. Tip Fleming
Phone: +1 917 412 3333
Email: tfleming@christensenir.com
GRIDSUM
HOLDING INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(All amounts in
thousands)
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
|
December 31,
|
December 31,
|
|
2018
|
2019
|
2019
|
Assets
|
RMB
|
RMB
|
USD
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
92,684
|
25,206
|
3,621
|
Restricted
cash
|
1,334
|
1,389
|
200
|
Accounts
receivable, net
|
397,969
|
191,299
|
27,477
|
Prepayments
and other current assets
|
294,904
|
117,269
|
16,845
|
Notes
Receivable
|
-
|
3,753
|
539
|
Total current
assets
|
786,891
|
338,916
|
48,682
|
Non-current
assets:
|
|
|
|
Investment in
associates
|
5,000
|
5,000
|
718
|
Property,
equipment and software, net
|
62,328
|
45,892
|
6,592
|
Intangible
assets, net
|
13,840
|
19,735
|
2,835
|
Goodwill
|
537
|
537
|
77
|
Deferred tax
assets
|
46,359
|
73,971
|
10,625
|
Other
non-current assets
|
435
|
0
|
0
|
Operating
lease right-of-use assets
|
-
|
112,921
|
16,220
|
Total non-current
assets
|
128,499
|
258,056
|
37,067
|
Total
assets
|
915,390
|
596,972
|
85,749
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
bank loan
|
5,000
|
38,000
|
5,458
|
Accounts
payable
|
97,293
|
78,776
|
11,315
|
Salary and
welfare payables
|
65,451
|
75,630
|
10,864
|
Taxes
payable
|
110,529
|
115,990
|
16,661
|
Deferred
revenues
|
36,126
|
11,328
|
1,627
|
Advances from
customers
|
154,731
|
16,130
|
2,317
|
Accrued
expenses and other current liabilities
|
147,940
|
95,701
|
13,747
|
Derivative
liabilities
|
596
|
0
|
0
|
Operating
lease liabilities current
|
-
|
39,219
|
5,633
|
Convertible
note
|
242,702
|
278,472
|
40,000
|
Total current
liabilities
|
860,368
|
749,246
|
107,622
|
Non-current
liabilities:
|
|
|
|
Long-term
borrowing
|
-
|
99,274
|
14,260
|
Corporate
bond
|
-
|
18,545
|
2,664
|
Deferred tax
liabilities
|
212
|
175
|
25
|
Other
non-current liabilities
|
-
|
1,248
|
179
|
Operating
lease liabilities non-current
|
-
|
84,220
|
12,097
|
Derivative
liabilitie non-current
|
-
|
1,974
|
284
|
Total non-current
liabilities
|
212
|
205,436
|
29,509
|
Total
liabilities
|
860,580
|
954,682
|
137,131
|
|
|
|
|
Shareholders'
(deficit)/equity:
|
|
|
|
Ordinary shares
—Class A
|
31
|
31
|
4
|
Ordinary shares
—Class B
|
177
|
202
|
30
|
Additional paid-in
capital
|
1,146,253
|
1,272,959
|
182,848
|
Statutory
reserve
|
12,903
|
12,903
|
1,853
|
Accumulated other
comprehensive loss
|
(35,496)
|
(37,858)
|
(5,437)
|
Accumulated
deficit
|
(1,077,409)
|
(1,615,338)
|
(232,029)
|
Total Gridsum
shareholders' (deficit)/equity
|
46,459
|
(367,101)
|
(52,731)
|
Non-controlling
interest
|
8,351
|
9,391
|
1,349
|
Total shareholders'
(deficit)equity
|
54,810
|
(357,710)
|
(51,382)
|
Total liabilities
and shareholders' equity
|
915,390
|
596,972
|
85,749
|
GRIDSUM HOLDING
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
(All amounts in
thousands, except for share, per share and per ADS
data)
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
31-Dec-18
|
31-Dec-19
|
31-Dec-19
|
|
31-Dec-18
|
31-Dec-19
|
31-Dec-19
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
Revenues:
|
|
|
|
|
|
|
|
Enterprise
|
99,279
|
86,181
|
12,379
|
|
387,574
|
258,903
|
37,189
|
e-Government and
other
|
8,958
|
53,846
|
7,735
|
|
53,117
|
71,796
|
10,313
|
Less: Business tax and
surcharges
|
(2,271)
|
(2,011)
|
(289)
|
|
(9,444)
|
(4,147)
|
(596)
|
Net
revenues
|
105,966
|
138,016
|
19,825
|
|
431,247
|
326,552
|
46,906
|
Cost of
revenues
|
(38,082)
|
(18,242)
|
(2,620)
|
|
(100,867)
|
(77,361)
|
(11,112)
|
Gross
profit
|
67,884
|
119,774
|
17,204
|
|
330,380
|
249,191
|
35,794
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(44,552)
|
(36,384)
|
(5,226)
|
|
(166,176)
|
(144,401)
|
(20,742)
|
Research and
development expenses
|
(146,135)
|
(62,823)
|
(9,024)
|
|
(533,586)
|
(320,402)
|
(46,022)
|
General and
administrative expenses
|
(58,401)
|
(162,000)
|
(23,270)
|
|
(182,289)
|
(319,653)
|
(45,915)
|
Total operating
expenses
|
(249,088)
|
(261,207)
|
(37,520)
|
|
(882,051)
|
(784,456)
|
(112,679)
|
Losses from
operations
|
(181,204)
|
(141,433)
|
(20,316)
|
|
(551,671)
|
(535,265)
|
(76,885)
|
Foreign exchange
loss
|
(675)
|
(14)
|
(2)
|
|
(9,719)
|
(729)
|
(105)
|
Interest expense,
net
|
(2,323)
|
(5,094)
|
(732)
|
|
(9,878)
|
(14,028)
|
(2,015)
|
Other
(expense)/income, net
|
(4,833)
|
(2,395)
|
(344)
|
|
1,005
|
(788)
|
(113)
|
Amortization of debt
discount
|
(9,748)
|
(10,276)
|
(1,476)
|
|
(25,337)
|
(40,918)
|
(5,878)
|
Gain on change in fair
value of derivative liabilities
|
57,890
|
3,569
|
513
|
|
57,890
|
27,829
|
3,997
|
Loss before income
tax
|
(140,893)
|
(155,644)
|
(22,357)
|
|
(537,710)
|
(563,899)
|
(80,999)
|
Income tax
benefit
|
7,818
|
29,344
|
4,215
|
|
15,165
|
27,010
|
3,880
|
Net
loss
|
(133,075)
|
(126,299)
|
(18,142)
|
|
(522,545)
|
(536,889)
|
(77,119)
|
Less: Net income
(loss) attributable to non-controlling interests
|
(340)
|
0
|
0
|
|
(1,220)
|
1,040
|
150
|
Net loss
attributable to Gridsum Holding Inc.
|
(132,735)
|
(126,300)
|
(18,142)
|
|
(521,325)
|
(537,929)
|
(77,269)
|
Net loss
attributable to Gridsum's ordinary shareholders
|
(132,735)
|
(126,300)
|
(18,142)
|
|
(521,325)
|
(537,929)
|
(77,269)
|
|
|
|
|
|
|
|
|
Net loss
|
(133,075)
|
(126,299)
|
(18,142)
|
|
(522,545)
|
(536,889)
|
(77,119)
|
Foreign currency
translation adjustment, net of tax
|
390
|
9,606
|
1,380
|
|
(4,957)
|
(2,362)
|
(340)
|
Comprehensive
loss
|
(132,685)
|
(116,694)
|
(16,762)
|
|
(527,502)
|
(539,251)
|
(77,459)
|
Less: Comprehensive
income (loss) attributable to non-controlling interests
|
(340)
|
0
|
0
|
|
(1,220)
|
1,040
|
150
|
Comprehensive loss
attributable to Gridsum Holding Inc.
|
(132,345)
|
(116,694)
|
(16,762)
|
|
(526,282)
|
(540,291)
|
(77,609)
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in per share
calculations:
|
|
|
|
|
|
|
|
Basic and
diluted
|
30,833,239
|
34,543,432
|
34,543,432
|
|
30,827,600
|
33,810,862
|
33,810,862
|
Net loss per
ordinary share attributable to Gridsum's ordinary
shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
(4.30)
|
(3.66)
|
(0.53)
|
|
(16.91)
|
(15.91)
|
(2.43)
|
Net loss per ADS
attributable to Gridsum's ordinary shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
(4.30)
|
(3.66)
|
(0.53)
|
|
(16.91)
|
(15.91)
|
(2.43)
|
|
|
|
|
|
|
|
|
GRIDSUM HOLDING
INC.
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(All amounts in
thousands, except for share, per share and per ADS
data)
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
31-Dec-18
|
31-Dec-19
|
31-Dec-19
|
|
31-Dec-18
|
31-Dec-19
|
31-Dec-19
|
|
RMB
|
RMB
|
USD
|
|
RMB
|
RMB
|
USD
|
Reconciliation of
net loss attributable to Gridsum's ordinary shareholders
to non-GAAP net loss attributable to Gridsum's ordinary
shareholders
|
|
Net loss attributable
to Gridsum's ordinary shareholders
|
(132,735)
|
(126,300)
|
(18,142)
|
|
(521,325)
|
(537,929)
|
(77,269)
|
Share-based
compensation
|
11,299
|
10,207
|
1,466
|
|
39,026
|
52,450
|
7,534
|
Non-GAAP net
loss attributable to Gridsum's ordinary shareholders
|
(121,436)
|
(116,093)
|
(16,676)
|
|
(482,299)
|
(485,479)
|
(69,735)
|
Weighted average
number of ordinary shares used in net loss per share attributable
to Gridsum's ordinary shareholders and non-GAAP net loss
per share attributable to Gridsum's ordinary shareholders
calculations:
|
|
|
|
|
|
|
|
Basic and
diluted
|
30,833,239
|
34,543,432
|
34,543,432
|
|
30,827,600
|
33,810,862
|
33,810,862
|
Net loss per ordinary
share attributable to Gridsum's ordinary shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
(4.30)
|
(3.66)
|
(0.53)
|
|
(16.91)
|
(15.91)
|
(2.29)
|
Net loss per ADS
attributable to Gridsum's ordinary shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
(4.30)
|
(3.66)
|
(0.53)
|
|
(16.91)
|
(15.91)
|
(2.29)
|
Non-GAAP net loss per
ordinary share attributable to Gridsum's ordinary
shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
(3.94)
|
(3.36)
|
(0.48)
|
|
(15.65)
|
(14.36)
|
(2.06)
|
Non-GAAP net loss per
ADS attributable to Gridsum's ordinary shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
(3.94)
|
(3.36)
|
(0.48)
|
|
(15.65)
|
(14.36)
|
(2.06)
|
|
|
|
|
|
|
|
|
Reconciliation of
net loss to EBITDA and adjusted EBITDA
|
|
|
|
|
|
|
Net loss
|
(133,075)
|
(126,299)
|
(18,142)
|
|
(522,545)
|
(536,889)
|
(77,119)
|
Interest expense,
net
|
2,323
|
5,094
|
732
|
|
9,878
|
14,028
|
2,015
|
Income tax
expenses
|
(7,818)
|
(29,344)
|
(4,215)
|
|
(15,165)
|
(27,010)
|
(3,880)
|
Depreciation and
amortization expenses
|
9,736
|
8,444
|
1,213
|
|
34,701
|
35,262
|
5,065
|
EBITDA
|
(128,834)
|
(142,105)
|
(20,412)
|
|
(493,131)
|
(514,609)
|
(73,919)
|
Share-based
compensation
|
11,299
|
10,207
|
1,466
|
|
39,026
|
52,450
|
7,534
|
Adjusted
EBITDA
|
(117,536)
|
(131,898)
|
(18,946)
|
|
(454,105)
|
(462,159)
|
(66,385)
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/gridsum-reports-unaudited-fourth-quarter-and-full-year-2019-financial-results-301069667.html
SOURCE Gridsum Holding Inc.