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Aurora Mobile Ltd (JG)
NASDAQ:JG
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Aurora Mobile (JG) AI Stock Analysis

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JG

Aurora Mobile

(NASDAQ:JG)

Rating:62Neutral
Price Target:
$13.00
▲(18.18%Upside)
Aurora Mobile's stock score reflects a recovering financial performance with improved cash flow and operational efficiency. The technical analysis shows bullish trends, but valuation concerns due to negative earnings and lack of a dividend impact the overall score. The positive sentiment from the earnings call, highlighting strong revenue growth and strategic achievements, adds to the favorable outlook.

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

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 generates revenue primarily through its Software-as-a-Service (SaaS) offerings, which include push notification services, analytics, and other developer services. These services are typically provided on a subscription basis, where customers pay recurring fees to access the platform's tools and insights. Additionally, the company may earn revenue from value-added services and customized solutions tailored to specific client needs. Significant partnerships with major technology companies and app developers also contribute to its revenue streams, allowing Aurora Mobile to expand its market reach and enhance its service offerings.

Aurora Mobile Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q1-2025)
|
% Change Since: 0.92%|
Next Earnings Date:Sep 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects strong revenue growth and significant achievements in contract acquisition, particularly in the EngageLab and Financial Risk Management sectors. However, these successes are tempered by challenges in market intelligence revenue, ongoing net losses, and increased expenses. The sentiment is balanced between positive growth and the need for careful expense management to achieve net profitability.
Q1-2025 Updates
Positive Updates
Record-Breaking EngageLab Contracts
EngageLab closed over CNY 63 million worth of contract value in one quarter, bringing the total cumulative contract value to over CNY 110 million by March 31, 2025. This marks an unprecedented achievement in the company's history.
Strong Revenue Growth
The group's revenue for Q1 2025 was CNY 89 million, marking a 38% year-over-year growth. This is the highest Q1 revenue since transitioning to a pure SaaS model. EngageLab's recognized revenue grew by 127% year-over-year.
Financial Risk Management Success
The Financial Risk Management business recorded its highest quarterly revenue of CNY 22.2 million, with a 64% year-over-year growth. This was driven by a 19% increase in customer numbers and 38% ARPU growth.
Improved Gross Profit and Margin
Gross profit grew by 27% year-over-year, achieving the highest gross profit in the past nine quarters. Gross margin improved by 520 basis points quarter-over-quarter.
Positive Adjusted EBITDA
The company recorded its seventh consecutive quarter of positive adjusted EBITDA.
Deferred Revenue Milestone
Deferred revenue reached a record high of CNY 156.9 million, marking the first time it has exceeded CNY 150 million.
Negative Updates
Market Intelligence Revenue Decline
Market Intelligence revenue decreased by 26% year-over-year, reflecting continued weakness in market demand for Chinese APP data.
Quarterly Net Loss
Despite strong revenue growth and positive adjusted EBITDA, the company is still recording a net loss for the quarter.
R&D and Marketing Expenses
R&D expenses increased by 8% and selling and marketing expenses increased by 34% year-over-year, impacting bottom-line profitability.
Company Guidance
During the Aurora Mobile First Quarter 2025 Earnings Conference Call, the company provided a robust set of metrics reflecting their financial growth and strategic direction. The total group revenue for Q1 2025 was reported at CNY 89 million, marking a 38% increase year-over-year, which was the highest Q1 revenue since transitioning to a pure SaaS model. The EngageLab business was a standout performer, achieving a record CNY 63 million in contract value in Q1 alone, contributing to a cumulative total exceeding CNY 110 million. The Financial Risk Management segment also had a significant quarter, with revenue rising by 64% year-over-year to reach CNY 22.2 million. Gross profit surged by 27% year-over-year, with gross margin improving by 520 basis points quarter-over-quarter. The company recorded its seventh consecutive quarter of positive adjusted EBITDA, underscoring a sustainable growth trajectory. Looking forward, Aurora Mobile provided Q2 2025 revenue guidance in the range of CNY 87.5 million to CNY 90.5 million, projecting a 10% to 14% increase compared to the same quarter of 2024. The call highlighted the company’s strong financial position and its commitment to expanding its enterprise AI agent platform globally.

Aurora Mobile Financial Statement Overview

Summary
Aurora Mobile is showing signs of recovery with improved profit margins, cash flow, and operational efficiency. However, challenges remain in achieving revenue growth and consistent profitability. The balance sheet is stable with manageable debt levels, while cash flow improvements indicate potential for growth.
Income Statement
55
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
60
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
70
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue316.17M290.23M328.82M357.32M471.61M
Gross Profit209.03M199.29M225.80M264.93M206.18M
EBITDA-570.00K-52.22M-103.14M-99.92M-171.19M
Net Income-7.05M-62.10M-107.79M-140.58M-225.07M
Balance Sheet
Total Assets378.03M350.19M420.93M595.54M787.33M
Cash, Cash Equivalents and Short-Term Investments119.17M114.52M116.13M120.55M436.12M
Total Debt20.84M4.64M5.00M150.00M225.23M
Total Liabilities278.63M246.47M262.03M380.09M466.09M
Stockholders Equity67.92M73.55M128.35M215.44M321.24M
Cash Flow
Free Cash Flow3.56M-18.43M-18.60M-95.59M53.48M
Operating Cash Flow8.54M-17.91M-17.48M-76.65M75.81M
Investing Cash Flow-5.38M25.13M26.85M26.44M-144.41M
Financing Cash Flow1.23M-8.65M-148.04M-54.52M315.00K

Aurora Mobile Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.00
Price Trends
50DMA
10.85
Positive
100DMA
10.05
Positive
200DMA
8.87
Positive
Market Momentum
MACD
0.17
Positive
RSI
47.37
Neutral
STOCH
21.71
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 11 is below the 20-day moving average (MA) of 11.38, above the 50-day MA of 10.85, and above the 200-day MA of 8.87, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 21.71 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$86.69M17.7321.25%4.66%
63
Neutral
£505.90M23.92-8.45%170.41%4.53%-18.72%
62
Neutral
$80.23M-10.57%9.04%37.96%
62
Neutral
$68.18M-10.44%16.93%85.85%
$81.59M-39.67%
47
Neutral
$120.57M-6139.13%-63.86%-364.20%
$65.47M22.08-1.44%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JG
Aurora Mobile
11.00
8.06
274.15%
VHC
Virnetx Holding
18.46
12.46
207.67%
ALAR
Alarum Technologies
12.23
-13.77
-52.96%
STEM
Stem Inc
14.99
-8.81
-37.02%
ZENV
Zenvia
1.50
-0.55
-26.83%
UBXG
U-BX Technology Ltd.
3.08
-114.04
-97.37%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 17, 2025