Qutoutiao Clocks 14.6% Revenue Decline In Q3 Due To Challenging Macro, Industry Headwinds

Mobile content platform operator Qutoutiao Inc QTT reported a third-quarter FY21 revenue decline of 14.6% year-on-year to $149.8 million.
Advertising and marketing revenues decreased 15.4% Y/Y to $139.6 million due to the tightening regulatory environment in the internet and technology sector.
Drivers: Combined average MAUs declined 1.7% Y/Y to 118.5 million. Combined average DAUs reduced 33.2% Y/Y to 26.5 million. The average daily time spent per DAU was 51.9 minutes, compared to 55.3 minutes in Q3 2020.
Margins: The gross margin expanded 510 bps to 72.2%. The non-GAAP operating loss margin deteriorated to (53.4)% versus (9.7)% last year.
Non-GAAP net loss per ADS was $(2.82).
Qutoutiao held $133.8 million in cash and equivalents.
"We have observed challenging macro environment and industry headwinds in the third quarter of 2021," said Eric Siliang Tan, Chairman, and CEO of Qutoutiao.
"We will focus more on long term sustainability of our business in the coming quarters and years, away from the previous emphasis on growth in the earlier development stages of the company."
Outlook: Qutoutiao sees Q4 revenues of RMB850 million - RMB900 million, equaling $131.92 million - $139.68 million.
Price Action: QTT shares closed lower by 4.17% at $2.99 on Monday.