Chinese Tech Crackdown Leads To Qutoutiao's 17% Revenue Decline In Q2

Mobile content platform operator Qutoutiao Inc QTT reported a second-quarter FY21 revenue decline of 16.6% year-on-year to $186.2 million (RMB1.2 billion), missing the analyst consensus of $197.97 million.
Segments: Advertising and marketing revenues decreased 17.2% Y/Y to $176.8 million due to the tightening regulatory environment in the internet and technology sector.
Other revenues declined 3.7% Y/Y to $9.4 million due to the decrease in revenues from live-streaming.
Drivers: Combined average MAUs declined 3.1% Y/Y to 132.3 million.
Combined average DAUs reduced 32.3% Y/Y to 29.1 million.
The average daily time spent per DAU was 47.3 minutes, compared to 55.2 minutes in Q2 2020.
Margins: The gross margin expanded 50 bps to 72.7%.
The non-GAAP operating loss margin was (16.7)% versus (9.8)% last year.
The non-GAAP net loss margin was (15.5)% versus (12.0)% last year.
Non-GAAP net loss per ADS was $(0.11).
Qutoutiao held $158.3 million in cash and equivalents. Net operating cash outflow during Q2 was RMB15.0 million.
Outlook: Qutoutiao sees Q3 revenues of RMB1.05 billion-RMB1.10 billion.
Price Action: QTT shares closed lower by 0.7% at $1.42 on Friday.