Aurora Mobile’s third‑quarter revenue rose 15% to RMB 90.9 million, driven by a 12% increase in Developer Services and a 23% jump in Vertical Applications. Gross profit climbed 20% to RMB 63.8 million, reflecting a higher mix of high‑margin SaaS contracts and tighter cost control that kept operating expenses from growing as fast as revenue. Net income turned positive at RMB 0.7 million, a reversal of the RMB 2.2 million loss reported a year earlier, and operating income improved to RMB 0.4 million from a loss of RMB 3.6 million. The margin expansion is largely attributable to the rapid growth of EngageLab, whose annual recurring revenue grew over 160% YoY, and to the company’s shift toward a pure SaaS model that reduces variable costs.
The company repurchased 327,084 ADS during the quarter, including 4,435 ADS for approximately $37,700, and it has approved a new share‑repurchase program of up to US$10 million through December 31 2026. Cash balances reached the highest level in 14 quarters, giving Aurora Mobile a strong liquidity cushion to fund further product development and potential acquisitions. The share‑repurchase activity signals management’s confidence in the company’s valuation and its commitment to returning value to shareholders.
Segment analysis shows that Developer Services revenue grew 12% YoY, with Value‑Added Services within that segment up 22%, while Vertical Applications revenue surged 23%. EngageLab, the flagship AI‑powered platform, drove a significant portion of the revenue growth and contributed to the 104% net dollar retention rate in the Developer Subscription business. GPTBots.ai, a new AI‑bot platform, also expanded its customer base, reinforcing the company’s strategic pivot to high‑margin SaaS offerings.
Management guided fourth‑quarter revenue to RMB 94.0–96.0 million, a modest 1%–3% YoY increase that reflects a cautious outlook amid broader market uncertainty. CEO Weidong Luo emphasized the historic milestone of back‑to‑back GAAP net income and expressed confidence in the company’s long‑term growth trajectory, citing the strong performance of EngageLab and the company’s disciplined cost structure. CFO Shan‑Nen Bong highlighted the record cash inflow from operating activities, noting that the company’s solid financial position will support continued investment in high‑return verticals.
Investors reacted positively to the earnings, citing the turnaround to profitability, the robust growth in recurring revenue, and the company’s strategic shift to a scalable SaaS model as key drivers of confidence. Management’s focus on cost discipline and strategic investments in high‑margin platforms signals a clear path toward sustainable growth.
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