Benzinga | Jun 3, 2021 09:34AM EDT

CooTek Stock Drops on Missing Q1 Earnings, Falling DAUs

* Mobile internet company CooTek (Cayman) Inc (NYSE:CTK) reported a first-quarter FY21 revenue decline of 24% year-on-year to $81.6 million, beating the analyst consensus of $80 million.

* Mobile Advertising revenue declined 24% Y/Y to $80.4 million, and Other revenue rose 94% Y/Y to $1.1 million.

* Average daily active users (DAUs) of the company's portfolio products declined 19% Y/Y to 20.3 million, while the Monthly active users (MAUs) fell 34% Y/Y to 58.6 million.

* Average DAUs of the online literature products rose 3% Y/Y to 7.5 million; MAUs declined 31% Y/Y to 20.1 million.

* The average daily reading time of the key product Fengdu Novel's users rose 14% Y/Y to 148 minutes in March 2021.

* Gross margin contracted 660 basis points to 89.1%.

* The adjusted net loss was $11.1 million, translated to an adjusted EPS loss of $(0.18), missing the analyst consensus of $(0.17) loss.

* CooTek used $23 million in operating cash flow and held $56.1 million in cash and equivalents.

* Guidance: CooTek sees Q2 revenue guidance of $83 million.

* Price action: CTK shares traded lower by 5.31% at $1.95 during the market session on the last check Thursday.