Aurora Mobile (JG) AI Stock Analysis

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Aurora Mobile

(NASDAQ:JG)

58Neutral

Aurora Mobile's stock score reflects a company in recovery with positive earnings call highlights, including revenue growth and profitability. Despite these gains, the technical analysis indicates bearish momentum, and valuation metrics remain unattractive due to negative earnings. Continued operational improvements and revenue generation are key for future stock performance.

Aurora Mobile (JG) vs. S&P 500 (SPY)

Market Cap

$50.37M

Dividend YieldN/A

Average Volume (3M)44.83K

Price to Earnings (P/E)―

Beta (1Y)0.28

Revenue Growth7.31%

EPS Growth88.98%

CountryUS

Employees393

SectorTechnology

Sector Strength62

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.16

Shares Outstanding4,728,114

10 Day Avg. Volume15,777

30 Day Avg. Volume44,826

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.53

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Aurora Mobile Business Overview & Revenue Model

Company DescriptionAurora Mobile Limited, through its subsidiaries, operates as a mobile app developer service provider in China. The company provides push notification, instant messaging, analytics, sharing and short message service, one-click verification, and other services. Its vertical applications have expanded to market intelligence, financial risk management, and location-based intelligence; and offers real-time market intelligence solutions, such as product iApp, which provides analysis and statistical results on the usage and trends of mobile apps to investment funds and corporations. The company also provides financial risk management solutions to assist financial institutions, licensed lenders, and credit card companies in making informed lending and credit decisions; and location-based intelligence solutions to help retailers and other traditional brick-and-mortar industries, such as real estate developers, track and analyze foot traffic, conduct targeted marketing, and make more informed and impactful operating decisions, such as site selection. In addition, it offers targeted marketing solutions to help advertisers to target the right audience with the right content at the right time; application programming interfaces that create connectivity and automate the process of message exchange between the mobile apps and its backend network; and an interactive web-based service dashboard that allows app developers to utilize and monitor its services through controls on an ongoing basis. The company primarily serves mobile app developers in a range of industries, such as media, entertainment, gaming, financial services, tourism, ecommerce, education, and healthcare. The company was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes MoneyAurora Mobile primarily generates revenue through a Software-as-a-Service (SaaS) model, offering subscription-based access to its suite of mobile development and data analytics tools. Key revenue streams include fees from push notification services, user analytics platforms, and targeted marketing solutions. Additionally, the company collaborates with various industry partners to integrate its services into larger ecosystems, further enhancing its revenue potential. Aurora Mobile's earnings are significantly influenced by its ability to maintain and grow its customer base across diverse sectors, capitalizing on the increasing demand for data-driven insights in mobile application development.

Aurora Mobile Financial Statement Overview

Summary

Aurora Mobile is showing signs of recovery with improvements in profit margins, cash flow, and operational efficiency. However, challenges remain in revenue growth and consistent profitability. The balance sheet is stable with manageable debt levels, and the cash flow position is improving, indicating potential for future growth and financial stability.

Income Statement

Neutral

Aurora Mobile has shown a positive trend in gross profit margin, increasing from 68.7% in 2023 to 66.1% in 2024, indicating improved efficiency in cost management despite a decrease in total revenue. The net profit margin improved significantly from -21.4% in 2023 to -2.2% in 2024, suggesting better control over expenses. However, the company experienced a revenue decline of 9.1% in 2024, which signals a potential struggle in maintaining market share. The EBIT and EBITDA margins also show improvement, moving towards break-even, highlighting operational efficiencies. The company is on a path to recovery but still faces challenges in achieving profitability.

Balance Sheet

Neutral

Aurora Mobile's balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.31 in 2024, indicating a conservative leverage approach. The return on equity remains negative due to ongoing net losses, but stockholders' equity decreased slightly. The equity ratio fell to 18.0% in 2024 from 21.0% in 2023, suggesting a decline in asset financing through equity. Overall, while the company maintains a manageable debt level, the consistent net losses are a concern, albeit with signs of improvement.

Cash Flow

Positive

The cash flow statement for Aurora Mobile shows a substantial turnaround in operating cash flow, moving from a negative position in 2023 to a positive $8.5 million in 2024, indicating better cash management and operational improvements. Free cash flow also improved significantly, which is a positive sign for future investments and debt servicing. The operating cash flow to net income ratio indicates that cash flow generation is improving faster than income, which is a positive indicator for liquidity. Despite these improvements, the company still needs to consistently generate positive free cash flow to ensure long-term sustainability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
299.74M	316.17M	290.23M	328.82M	357.32M	471.61M
	Gross Profit
205.80M	209.03M	199.29M	225.80M	264.93M	206.18M
	EBIT
-78.53M	-9.90M	-50.88M	-131.78M	-138.13M	-189.82M
	EBITDA
-78.70M	-570.00K	-52.22M	-103.14M	-99.92M	-171.19M
	Net Income Common Stockholders
-76.81M	-7.05M	-62.10M	-107.79M	-140.58M	-225.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
141.75M	119.17M	114.52M	116.13M	120.55M	436.12M
	Total Assets
329.54M	378.03M	350.19M	420.93M	595.54M	787.33M
	Total Debt
0.00	20.84M	4.64M	5.00M	150.00M	225.23M
	Net Debt
-141.75M	-98.33M	-109.89M	-111.13M	59.45M	-130.89M
	Total Liabilities
587.73M	278.63M	246.47M	262.03M	380.09M	466.09M
	Stockholders Equity
-258.19M	67.92M	73.55M	128.35M	215.44M	321.24M
Cash Flow		Free Cash Flow
537.27M	3.56M	-18.43M	-18.60M	-95.59M	53.48M
	Operating Cash Flow
217.01M	8.54M	-17.91M	-17.48M	-76.65M	75.81M
	Investing Cash Flow
866.47M	-5.38M	25.13M	26.85M	26.44M	-144.41M
	Financing Cash Flow
-4.21B	1.23M	-8.65M	-148.04M	-54.52M	315.00K

Aurora Mobile Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price8.39

Price Trends

50DMA

9.85

Negative

100DMA

8.79

Negative

200DMA

6.88

Positive

Market Momentum

MACD

-0.47

Negative

RSI

44.01

Neutral

STOCH

45.18

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JG, the sentiment is Neutral. The current price of 8.39 is below the 20-day moving average (MA) of 8.79, below the 50-day MA of 9.85, and above the 200-day MA of 6.88, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 45.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JG.

Aurora Mobile Risk Analysis

Aurora Mobile disclosed 80 risk factors in its most recent earnings report. Aurora Mobile reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Aurora Mobile Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALAR	75 Outperform	$52.80M	8.75	29.24%	―	20.00%	―
ZENV	64 Neutral	$78.84M	―	-6.45%	―	20.38%	71.64%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.42%	-11.38%
JG	58 Neutral	$50.37M	―	-9.96%	―	7.31%	88.98%
STEM	32 Underperform	$69.03M	―	-6139.13%	―	-68.67%	-484.48%

* Technology Sector Average

Performance Comparison

Aurora Mobile

8.39

5.26

168.05%

VHC

Virnetx Holding

8.45

3.06

56.77%

ALAR

Alarum Technologies

7.49

-21.22

-73.91%

STEM

Stem Inc

0.42

-1.47

-77.78%

ZENV

Zenvia

1.52

-0.57

-27.27%

UBXG

U-BX Technology Ltd.

3.95

-69.81

-94.64%

Aurora Mobile Earnings Call Summary

Earnings Call Date: Mar 13, 2025 | % Change Since: -6.98% | Next Earnings Date: Jun 5, 2025

Earnings Call Sentiment Positive

Aurora Mobile experienced a highly successful quarter and year, achieving its first full year of profitability and demonstrating robust revenue growth across all major business segments. The expansion of the overseas business and strong performance in developer services, fueled by AI integration, are particularly notable. However, the decline in market intelligence revenue highlights some challenges in specific areas.

Highlights

First Full Year of Profitability

Aurora Mobile recorded a full year adjusted EBITDA positive for 2024, marking the first full year of profitability since the company's inception 14 years ago.

Strong Revenue Growth

The group's revenue for Q4 was RMB 93.2 million, achieving a remarkable 20% growth year-over-year, with solid growth across all business lines.

Overseas Business Expansion

EngageLab, the overseas business unit, recorded a 200% increase in revenue year-over-year, with a newly signed contract value growing by RMB 10 million in Q4.

Positive Cash Flow

Aurora Mobile reported a net operating cash inflow of RMB 19.5 million, the highest in the past 17 quarters.

Developer Services Revenue Surge

Developer Services revenue increased by 28% year-over-year and 24% quarter-over-quarter, driven by subscription services and value-added services.

AI Integration and Strategy

Aurora Mobile remains committed to its AI First strategy, integrating AI into workflows and enhancing product capabilities, leading to strong revenue growth in AI-driven services.

Lowlights

Market Intelligence Revenue Decline

Market intelligence revenue decreased by 36% year-over-year and remained flat quarter-over-quarter due to weak market demand for Chinese APP data.

Company Guidance

In the earnings call for Aurora Mobile's fourth quarter and fiscal year 2024, the company provided guidance and highlighted key metrics indicating strong financial performance. The company achieved a remarkable 20% year-over-year revenue growth, reaching RMB 93.2 million, driven by robust performance across all business lines. The overseas business segment, EngageLab, recorded a significant 200% year-over-year revenue increase, fueled by new customer acquisitions. Aurora Mobile also achieved its first full-year positive adjusted EBITDA since inception, marking six consecutive quarters of positive adjusted EBITDA. The company reported net operating cash inflow of RMB 19.5 million, the highest in the past 17 quarters, with a cash balance nearing RMB 120 million by year-end. For Q1 2025, Aurora Mobile provided a revenue guidance range of RMB 74 million to RMB 77.5 million, representing a 15% to 20% year-over-year growth. The positive trends in developer subscription revenue, which surpassed RMB 50 million for two consecutive quarters, underscore a strong market demand and an expanding customer base.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.