Aurora Mobile (NASDAQ:JG) reported higher third-quarter revenue and its sixth consecutive quarter of U.S. GAAP net profit, but lowered its full-year revenue outlook as demand for financial risk management services fell short of expectations.
Revenue rose 17% year over year to RMB 106.5 million, the company’s highest quarterly total since it transitioned to a pure software-as-a-service model in the first quarter of 2021, Chief Executive Officer Weidong Luo said on the earnings call. Net profit was RMB 4.5 million, while operating activities generated RMB 6.6 million in cash.
The company now expects 2026 revenue of RMB 405 million to RMB 415 million, down from its prior forecast of RMB 450 million to RMB 480 million. The revised range represents anticipated annual growth of approximately 8% to 11%, Chief Financial Officer Shan-Nen Bong said.
Risk management weakness prompts forecast cut
Bong attributed the guidance revision primarily to weaker-than-expected financial risk management revenue. He said the adjustment in China’s consumer credit and loan facilitation industry had lasted longer and been deeper than the company anticipated.
As regulatory requirements have been implemented more fully, financial institutions and loan facilitation platforms have adjusted their offerings, pricing, customer mix and business scale, Bong said. Some customers have tightened new credit origination and taken a more cautious approach to budgeting, affecting demand for Aurora’s related data and technology services.
Financial Risk Management revenue fell 36% year over year and 19% sequentially in the third quarter. By contrast, Market Intelligence revenue rose 18% year over year and 6% from the prior quarter, benefiting mainly from increased customer demand, Bong said. Together, the businesses make up Aurora’s vertical applications segment, whose revenue declined on both comparisons.
EngageLab drives subscription growth
Aurora’s core Developer Subscription Services revenue rose 34% year over year and 9% sequentially to a record RMB 77 million. Luo said increases in both customer numbers and average revenue per user contributed to the growth.
EngageLab, the company’s customer-engagement product, was a major driver. Its quarterly revenue more than doubled to RMB 29.5 million, up 124% from a year earlier, and represented 38% of core Developer Subscription revenue. Luo said EngageLab won RMB 32.8 million in new contracts during the quarter and had more than 2,430 customers as of Sept. 30, an increase of 86% year over year.
Luo named Tesla China, Kai Tak Sports Park, Bilibili and CITIC Bank among notable subscription wins. Value-Added Services revenue rose 57% year over year to RMB 11.1 million, largely because customers increased their advertising spending.
Overseas markets contributed approximately 34% of group revenue in the quarter, according to Luo. He said Aurora has local operations in Hong Kong, Malaysia, Thailand, Singapore and Japan, and combines direct sales with regional partnerships. In August, the company entered a three-year strategic memorandum of understanding with Southeast Asia-based Exabytes to market EngageLab and GPTBots.ai enterprise AI agent solutions across the region.
Profitability and cash flow
Gross profit rose 11% year over year and 2% sequentially to RMB 70.9 million, its highest level since the first quarter of 2022. Operating expenses increased 6% from a year earlier to RMB 68.1 million, including higher research and development and selling and marketing costs. General and administrative expenses declined 24%, partly because of lower bad-debt provisions, Bong said.
For the 12 months ended Sept. 30, net dollar retention for the core Developer Subscription business was 106%, matching the prior quarter and a record for the company. Deferred revenue reached RMB 185.2 million at quarter-end, also a company high, according to Bong.
Aurora repurchased 99,000 American depositary shares during the quarter, bringing the cumulative total under its repurchase program to 585,000, Bong said.
About Aurora Mobile (NASDAQ:JG)
Aurora Mobile Limited (NASDAQ: JG) is a technology company that provides mobile developer services and enterprise customer-engagement solutions. Its platform helps businesses and application developers communicate with users, analyze application activity, and support marketing and operational initiatives. The company’s offerings have included push-notification services through JPush, as well as tools for user engagement, application analytics, messaging, authentication, sharing, and deep linking.
