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.

DISCLOSURES AND DISCLAIMERS

Stone Street Group LLC ("Stone Street") publishes research reports on publicly-traded companies. Stone Street has been retained by the company discussed in this report (the "Company") to provide ongoing digital investor relations services, including the creation and dissemination of this report. All research published by Stone Street is based on public information, or on information from the Company that the Company is required to promptly make public.

Stone Street is not a broker-dealer or a "covered person" under SEC Regulation AC, and does not distribute its research through a registered broker-dealer or any associated person of a registered broker-dealer. Accordingly, Stone Street is exempt from the provisions of Regulation AC. Nevertheless, Stone Street makes the following voluntary disclosures and disclaimers in connection with its research reports:

NO GUARANTEE:  This research report is not a substitute for the exercise of an investor's independent due diligence and independent investment determinations. Information contained herein is based on sources we believe to be reliable but we do not guarantee their accuracy. It should be presumed that the analyst who authored this report has had discussions with the Company to endeavor to ensure factual accuracy prior to publication, however, no independent due diligence or verification has been undertaken by the analyst.  No endorsements are made in respect of information provided or published by the subject Company and relied upon by the analyst for purposes of this research report. Recipients of this report should consider this report as only one factor in making any investment decision. This report is for information purposes only and is not intended as an offer to sell or a solicitation to buy securities.  Any and all information provided by the Company which has been publicly disclosed as "forward looking information" remains subject to all uncertainties in such regard and Stone Street makes no assurances or guaranties of actual outcomes. 

NO CONFLICTS OF INTEREST:  Stone Street does NOT own securities of the issuers described herein, and Stone Street does not make a market in any securities. Stone Street does not engage in, or receive compensation from, any investment banking or corporate finance-related activities with the company discussed in the report. Stone Street's contracts with issuers protect Stone Street's full editorial control of all research, timing of release of reports, and release from liability for negative reports.

ANALYST INDEPENDENCE:  Each Stone Street analyst has full discretion on the analysis and revenue targets contained in the report, based on his or her own due diligence. Analysts are paid in part based on overall profitability of Stone Street. No part of analyst compensation was, or will be, directly or indirectly, related to the specific recommendations or views expressed in any report or article. Stone Street policy does not allow an analyst or a member of their household (i) to own, trade, or have any beneficial interest in any securities of any company that analyst covers, or (ii) serve as an officer or director of a covered company.

RISK FACTORS:  Earnings targets and opinions concerning the composition of market sectors included in this report reflect analyst judgments as of this date and are subject to change without notice. A risk to our earnings targets is that the analyst's estimates or forecasts may not be met. This report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from such forward-looking statements. Factors that may cause such differences include, but are not limited to, those discussed in the "Risk Factors" section in the issuer's SEC filings available in electronic format through SEC Edgar filings at www.sec.gov.

COMPENSATION:  Stone Street received a flat fee from or on behalf of the Company for the creation and dissemination of the report. Stone Street has not received investment banking income from the Company in the past 12 months, and does not expect to receive investment banking income from the Company in the next 12 months.

ANALYST CERTIFICATION:  The research analyst certifies that this report accurately reflects his/her personal views about the Company's securities that none of the research analyst's compensation was, is or will be, directly or indirectly, related to the analyst's specific recommendations or views contained in this research report.

View original content:http://www.prnewswire.com/news-releases/iclick-interactive-asia-group-limited---enterprise-solutions-business-extends-301181857.html

SOURCE iClick Interactive Asia Group Limited