Aurora Mobile Limited Q3 FY2025 earnings call

• Achieved first-ever back-to-back quarterly net GAAP profit. - Q3 group revenue grew both year-over-year and quarter-over-quarter, driven by developer services and financial risk management. - Engagement app continued strong momentum with Engage Labs ARR reaching new milestone. - Financial risk management business had best quarter yet with highest quarterly revenue. - Gross profit exceeded expectation, growing 20% year-over-year and achieving highest growth in fifteen quarters. - Recorded positive cash flow with net operating cash inflow of RMB 23,300,000, highest since 2020. - Core developer service's NDR stood at 104% for trailing twelve months ended 09/30/2025. - Total deferred revenue at historical high of RMB 166,300,000. - Board approved share repurchase program to repurchase up to US dollars 10,000,000 worth of ordinary shares.

The group's revenue in Q3 was RMB 19,900,000, achieving a remarkable 15% year-over-year and 1% sequential growth. Developer services revenue, consisting of subscription services and value-added services, increased by 12% year-over-year and was flat quarter-over-quarter. Subscription revenue increased by 11% year-over-year and 7% quarter-over-quarter. Value-added services revenue grew by 22% year-over-year but decreased 44% quarter-over-quarter. Core developer subscription services revenue was RMB 57,300,000, recording a 11% year-over-year and 7% quarter-over-quarter growth. The global flagship product Engagement's Engage Labs ARR in September 2025 reached RMB 53,700,000, growing by 160% year-over-year. Financial risk management business recorded the highest quarterly revenue of RMB 222,600,000 with a 43% year-over-year growth. Vertical application's financial risk management recorded a 33% year-over-year and 3% quarter-over-quarter revenue growth, with the highest quarterly revenue of RMB 22,600,000 in the quarter. Market intelligence revenue decreased by 23% year-over-year and 2% quarter-over-quarter.

• Company sees Q4 2025 revenue guidance in the range of RMB 94,000,000 to RMB 96,000,000, representing a solid growth of 1 to 3% year-over-year compared to Q4 2024.

• Forward-looking statements are based on current expectations and market/operating conditions, which may cause actual results to differ materially. Further information regarding risks, uncertainties, etc. are in the company's filings with the US Securities and Exchange Commission.

Q: Based on my reading of the earnings release, I noticed the strength of engagement that business. And how it strengthened the group's financial result. So I would appreciate if management could tell us more about EngageLab. And why the growth trajectory has been so strong since day one.

A: Shan-Nen Bong responded that EngageLab's ARR in September 2025 was 53,700,000, a 160% year-over-year jump. The success is due to continuous improvement of product and service offering, investment in global data facilities (new data center in Turkey recently), incorporation of notification channels for various operating systems, and responsive customer service.

Q: Help me to recap what went well in Q3 that delivered another quarter with a GAAP net profit.

A: Shan-Nen Bong mentioned strong revenue growth in all business lines, gross profit growing 20% year-over-year and reaching highest level in fifteen quarters, core developer service's NDR at 104%, deferred revenue at historical high, net operating cash inflow at highest since 2020, and quarter-end cash balance at highest in fourteen quarters.