Aurora Mobile (JG) AI Stock Analysis

• Market Cap: $59.32M
• Dividend Yield: N/A
• Average Volume (3M): 10.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 18.99%
• EPS Growth: 77.96%
• Country: US
• Employees: 393
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 4,801,123
• 10 Day Avg. Volume: 7,887
• 30 Day Avg. Volume: 10,251
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: -0.70
• 1Y Price Target: $10.50
• Price Target Upside: 7.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $10.50 ▲(7.14% Upside)

Aurora Mobile's overall stock score is driven by strong recent financial performance improvements and positive earnings call highlights, including achieving its first quarterly net profit. However, valuation concerns due to ongoing losses and a lack of dividend yield, along with neutral technical indicators, moderate the overall score.

Aurora Mobile Business Overview & Revenue Model

Company Description

Aurora 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 Money

Aurora Mobile generates revenue primarily through its mobile marketing and data service offerings. The company employs a subscription-based model for its services, allowing clients to access its platform for a fee. Key revenue streams include fees for mobile push notifications, SMS services, and analytics tools, which are charged based on usage volume or subscription tiers. Additionally, Aurora Mobile has established partnerships with various businesses and platforms, enabling them to integrate its services into their applications, thereby expanding its customer base and increasing revenue. The company's focus on big data analytics also allows it to monetize insights and data services, contributing further to its earnings.

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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.17M	290.23M	328.82M	357.32M	471.61M
Gross Profit	209.03M	199.29M	225.80M	264.93M	206.18M
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 Assets	378.03M	350.19M	420.93M	595.54M	787.33M
Cash, Cash Equivalents and Short-Term Investments	119.17M	114.52M	116.13M	120.55M	436.12M
Total Debt	20.84M	4.64M	5.00M	150.00M	225.23M
Total Liabilities	278.63M	246.47M	262.03M	380.09M	466.09M
Stockholders Equity	67.92M	73.55M	128.35M	215.44M	321.24M
Cash Flow
Free Cash Flow	3.56M	-18.43M	-18.60M	-95.59M	53.48M
Operating Cash Flow	8.54M	-17.91M	-17.48M	-76.65M	75.81M
Investing Cash Flow	-5.38M	25.13M	26.85M	26.44M	-144.41M
Financing Cash Flow	1.23M	-8.65M	-148.04M	-54.52M	315.00K

Aurora Mobile Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JG, the sentiment is Negative. The current price of 9.8 is above the 20-day moving average (MA) of 9.59, below the 50-day MA of 10.40, and above the 200-day MA of 9.34, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JG.

Aurora Mobile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALAR	77 Outperform	$100.47M	18.14	21.76%	―	-1.43%	3.86%
ZENV	63 Neutral	$81.81M	―	-10.57%	―	9.04%	37.96%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
JG	61 Neutral	$59.32M	―	-9.11%	―	18.99%	77.96%
VHC	―	$83.29M	―	-42.34%	―	―	―
STEM	54 Neutral	$118.95M	―	-6139.13%	―	-56.74%	96.59%
UBXG	―	$57.88M	22.08	-1.44%	―	―	―