Jianpu Extends Recovery in Second Quarter 2022

August 27 04:17 2022
Diversification Strategy Strengthened Business Resilience.

August 26, 2022 – Jianpu Technology Inc. (“the Company” or “Jianpu”) announced unaudited financial results for the second quarter ended June 30, 2022. Jianpu delivered another quarter of recovery with total revenue up 34% year-over-year. The results were primarily driven by its on-going revenue diversification strategy, strong omnichannel marketing capabilities, and persistent gains in operating efficiency. The results also demonstrated the Company’s determination to deliver on its vision of “Becoming everyone’s financial partner”.

The Company continued to implement its diversification strategy, which has enhanced the resilience of the business and supported strong revenue growth. In the second quarter of 2022, the Company further penetrated into second and third-tier cities, which contributed around 65% of the total loan recommendation revenue, compared to 55% in the first quarter. Revenue from recommendation services continued to achieve significant growth, increasing by 38% year-over-year. In particular, Jianpu maintained its market-leading position in the credit card recommendation business, which saw robust revenue growth of 36% year-over-year. The loan recommendation business benefited from a more diversified customer base, recording year-over-year revenue growth of 42%.

In the second quarter, Jianpu further diversified its user base and strengthened its omnichannel solutions. This led to continued growth of its share in mainstream media and acquisition channels addressing various consumption scenarios, solidifying its widely recognized position in the industry. As such the Company is able to capture the increasing demand from financial institutions to acquire, identify, and engage new users from different geographies and younger demographics. At present, Jianpu is cooperating with over 1,500 financial service providers and other customers, providing marketing and user acquisition capabilities, data analysis and risk management solutions, and other technologies and services to enable financial institutions’ digital transformation.

In recent years, the Chinese government has focused on the qualitative development of the economy, primarily driven by ongoing digital transformation, including the introduction and promotion of digital currency electronic payments (DCEP). Leveraging its leading position in the financial product recommendation business, Jianpu accomplished a significant win by partnering with a large bank to market its digital RMB wallet. Going forward, the Company will capitalize on the government’s commitment to DCEP and its investment in promoting DCEP applications to explore further business opportunities in this area.

Against the backdrop of macroeconomic and regulatory uncertainties, Jianpu continued to achieve a good balance between managing continued growth and enhancing operating efficiency. As the Company continued to optimize its operating costs and expenses while better utilizing its resources, it enhanced its overall productivity, leading to margin improvement and a lower net loss in the second quarter. Operating loss decreased significantly by 48% year-on-year while the adjusted net loss margin further improved by 8 percentage points compared with the second quarter of 2021.

Mr. David Ye, Co-founder, Chairman and Chief Executive Officer of Jianpu Technology, commented, “I am pleased to announce that we delivered a further recovery in total revenues at a healthy growth rate of 34% in the second quarter, even amidst the more challenging macro environment caused by the rolling COVID-19 lockdowns across China. We remained prudent while maintaining our growth momentum, driven by our solid business expansion, persistent cost optimization efforts and strong omnichannel marketing capabilities. Powered by these improvements, the overall ROI of our recommendation services, advertising and marketing services, and other services continued to grow, increasing by 8 percentage points sequentially in the first half of 2022.”

“The COVID-19 preventive measures still leave some uncertainties that may continue to impact our business for the coming quarters. Nonetheless, we are cautiously optimistic about our business performance for the second half of 2022 as we believe our strong business model, investments in omnichannel marketing capabilities, leadership position in digital transformation solutions, and disciplined cost control measures will deliver better business results for the next quarter, along with broader policy support from the government and regulators to revive the economy,” concluded Mr. Ye.

Alongside broader policy support for the economy, Jianpu sees the gradual implementation of measures to encourage consumption and promote the digital transformation of the financial industry as creating potential growth opportunities ahead. The Company will continue to pursue technological innovation and refined management, empowering the digital transformation of the financial industry while maintaining its own recovery trajectory.

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Company Name: Jianpu Technology Inc.
Contact Person: Amanda Hu
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Country: China
Website: http://ir.jianpu.ai/