iClick Interactive Asia Group Limited - Enterprise Solutions Business Extends

NEW YORK, Nov. 30, 2020 /PRNewswire/ -- Record-Breaking Growth iClick (Nasdaq: ICLK) released its quarterly earnings ended September 30, 2020 on November 24. The company's high-margin SaaS Enterprise Solutions business has been enjoying very strong market demand since the announcement of its Tencent partnership. Riding on the strong momentum, the Enterprise Solutions segment reported record-breaking growth for the fourth consecutive quarter in the third quarter of 2020.

3Q-2020 Earnings Highlights

Returned record revenue and gross profit, marking fourth consecutive quarter of sequential growth in the Enterprise Solutions segment.

Adjusted EBITDA increased by 225% year-over-year, and marked the fourth consecutive quarter of positive adjusted net income.

Well-capitalized cash position to enable business plan execution and active M&A strategy.

Business Update & Outlook 

Share Repurchase Program - As of September 30, 2020, iClick has purchased the company's shares for an aggregate value of US$0.7 million, since the management announced a share repurchase program on January 15, 2020, in which it may purchase up to US$10 million worth of its own ADS over the 12-month period ending on December 29, 2020.

For the fourth quarter of 2020, management expects the company's revenue to range between US$73 million and US$76 million, or a quarter-over-quarter increase of 6% -10%, and a year-over-year increase of 28% - 33%. Among which, Enterprise Solutions revenue is expected to range from US$8.5 million to US$10.5 million. Growth profit is expected to be between US$20.5 million and US$23.5 million, representing a year-over-growth of 20% - 38%.

And for the full year of 2020, management expects its revenue to range between US$240 million and US$260 million (a YoY growth of 20% - 30%), gross profit to range between US$70 and 75 million (a YoY growth of 23% - 32%), and adjusted EBITDA to be between US$14 million and US$17 million, compared to adjusted EBITDA of US$6 million in 2019.

Third Quarter 2020 Results Details:

Record-breaking growth in revenue from Enterprise Solutions business.

Total revenue grew ~27% year-over-year to US$68.9 million, attributable to the increase in contributions from existing Marketing Solutions, and especially from Enterprise Solutions.

Marketing Solutions revenue grew 17% year-over-year to US$60 million, and Enterprise Solutions revenue grow 236% year-over-year to US$8.8 million, mainly resulting from the increasing integration need for online and offline consumers' behavioral data.

Growth billing was US$167.1 million, representing a 7% year-over-year decrease. The decrease was primarily due to the Company's efforts to optimize its client base, in order to achieve better credit control and to retain and/or attract financially sound customers amid uncertain macroeconomic environment.

Significant year-over-year growth in adjusted EBITDA and net income.

Gross profit grew 48% year-over-year to US$20 million, primarily owing to continual expansion of Marketing Solutions and increasing contribution from the higher-margin Enterprise Solutions.

The company reported adjusted EBITDA of US$4.7 million, increased 225% year-over-year, mainly due to strong gross profit growth. Though the net loss totaled US$7 million, mainly due to the fair value losses in convertible notes of US$1.4 million and in derivative liabilities of US$6.3 million, "adjusted" net income was US$2.4 million, up from US$0.5 million from a year ago, which marked the fourth consecutive quarter of positive adjusted net income.

Strong cash flow position allowing business expansion and the pursuit of M&A opportunities.

iClick's cash position has further enhanced following the equity financing in September.  As of September 30, 2020, the Company had cash and cash equivalents, time deposits and restricted cash of US$128 million, more than doubled from US$61 million as of Dec. 31, 2019.

The Company is well-capitalized, not only able to better execute its business plan, but also able to actively seek M&A opportunities as part of its long-term growth strategies.

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SOURCE iClick Interactive Asia Group Limited