iClick Interactive Reports Third Quarter Results and Share Repurchase Program

iClick Interactive Asia (NASDAQ:ICLK) announced its unaudited financial results for the third quarter ended September 30, 2018 with the company highlighting the 43 percent increase in net revenues.

The company also announced a share repurchase program representing an aggregate value of US$10 million.

As quoted in the press release:

“We have seen another quarter with significant operational achievements, delivering robust and encouraging financial metrics, record high adjusted EBITDA and historical low adjusted net loss, while making progress executing our long-term business strategy,” said Sammy Hsieh, Chief Executive Officer and Co-Founder of iClick

Third Quarter 2018 Financial and Operational Updates:

Net revenues for the third quarter of 2018 grew by 43% to US$42.6 million, from US$29.8 million for the third quarter of 2017, primarily as the result of an increase in net revenues from mobile audience solutions.

Net revenues from mobile audience solutions increased by 51% to US$37.8 million for the third quarter of 2018, from US$25.0 million for the same quarter last year, primarily as the result of strong market demand in mobile audience solutions.

Net revenues from other solutions was US$4.8 million for the third quarter of 2018, flat with the third quarter of 2017.

Gross profit for the third quarter of 2018 increased by 44% to US$9.3 million, from US$6.5 million for the third quarter of 2017, mainly as the result of an increase in gross profit from mobile audience solutions.

Total operating expenses were US$23.4 million for the third quarter of 2018, compared with US$9.2 million for the third quarter of last year. The increase was primarily due to share-based compensation of US$11.6 million related to incentives awarded to certain employees and business consultants, as well as transaction cost of US$2.2 million directly attributable to the issuance of US$30 million of convertible notes in September 2018.

Operating loss for the third quarter of 2018 was US$14.0 million, compared with an operating loss of US$2.7 million for the third quarter of 2017, as a result of the above.

Net loss totalled US$21.8 million for the third quarter of 2018, compared with net profit of US$6.4 million for the third quarter of 2017, mainly attributed to operating loss of US$14.0 million in the third quarter of 2018 as described above. In addition, we recorded a fair value gain on derivative liabilities of US$7.7 million in the third quarter of 2017 in connection with our series A and B preferred shares, while we recorded fair value loss on convertible notes of US$5.4 million in the third quarter of 2018. Furthermore, we recorded an exchange gain of US$1.3 million in the third quarter of 2017, while we recorded an exchange loss of US$1.9 million for the third quarter of 2018 due to the depreciation of the Renminbi against the US dollar.

Net loss attributable to the Company’s shareholders per diluted ADS was US$0.41, compared with a net profit per diluted ADS of US$0.12 for the third quarter of 2017.

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