4Q 2017 Earnings Results March 5, 2018
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4Q 2017 Earnings ResultsMarch 5, 2018
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Safe Harbor Statement and Disclaimer
This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our unaudited results for the fourth quarter of 2017,our management quotes and our financial outlook for the first quarter of 2018.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the fourth quarter of 2017 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2018 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to demand for, and market acceptance of, our solutions and services; our relationships with users, financial service providers and other parties we collaborate with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations and prospects, please see our filings with the U.S. Securities and Exchange Commission.
All information provided in this presentation is as of the date of the presentation. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this presentation, except as required by law.
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4Q 2017 Financial and Operating Highlights
Financial Service ProvidersUsers
1 In 4Q 2017 2 In 2017 3 Credit card volume which we generate revenues from, including for both recommendation services and advertising and marketing services
2,700+ Financial Service
Providers2
98 MM+Average MAU1
88%Mobile Traffic1
230K+ Financial Products2
350+ Cities2
89.8 MM Loan
Applications2
3.2 MM Credit Card Volume2,3
306%Revenue
YoY Growth2
Financial Product Discovery and Recommendation
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1 Refers to the number of loan applications which users had submitted via our platform resulting from our loan recommendation services2 Refers to the number of credit cards which we generate revenues from including for both recommendation services and advertising and marketing services
Quarterly Key Operating Metrics
0.4
1.3 1.2
3.2
Q4 2016 Q4 2017 FY 2016 FY 2017
Credit Card Volume2
In Million
+264%YoY
+160%YoY
6.7
32.5
16.8
89.8
Q4 2016 Q4 2017 FY 2016 FY 2017
In Million
Number of Loan Applications1
+383%YoY
+434%YoY
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81.2
429.3238.8
1,119.5
18.1
118.6
64.9
228.9
14.5
36.8
52.6
97.4
113.8
584.6
356.4
1,445.8
Q4 2016 Q4 2017 FY 2016 FY 2017
Quarterly Revenue YoY
Total Revenue Breakdown
In RMB million
+414%YoY
Loan Recommendation Credit Card Recommendation Advertising, Marketing and Other Services
+306%YoY
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Quarterly Revenue YoY
61.9 84.0 96.7 113.8137.3
256.0
467.7
584.6
122%
205%
384%
414%
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Total Revenues YoY Growth Rate
Quarterly Total Revenues and Growth Rates
In RMB million
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Quarterly Gross Profit and Gross Margin
95.3
523.4
289.7
1,301.9
83.7% 89.5%81.3%
90.0%
Q4 2016 Q4 2017 FY 2016 FY 2017
Gross Profit (RMB mm) Gross Margin (%)
Gross Profit and Gross Margin
In RMB million
+449%YoY
+349%YoY
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Quarterly Operating Expenses
RMB MM
Sales and Marketing Expenses Research and Development Expenses
General and Administrative Expenses
RMB MM RMB MM
114.2
500.0
382.9
1,227.9
100.3%
85.5%
107.4%
84.9%
Q4 2016 Q4 2017 FY 2016 FY 2017
% of Total Revenues
20.0
74.2 72.8
153.9
17.5%12.7%
20.4%
10.6%
Q4 2016 Q4 2017 FY 2016 FY 2017
% of Total Revenues
4.3
67.0
16.3
93.7
3.8%11.5%
4.6% 6.5%
Q4 2016 Q4 2017 FY 2016 FY 2017
% of Total RevenuesNote: GAAP basis
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RMB MM
(43.1)
(136.4)
(182.1)
(202.1)
(37.9)%
(23.3)%
(51.1)%
(14.0)%
Q4 2016 Q4 2017 FY 2016 FY 2017
Net Loss % of Total Revenues
Quarterly Net Loss and Adjusted Net Loss
1 Non-GAAP basis; excluding stock-based compensation expenses.
Net Loss Adjusted Net Loss1
RMB MM
(42.2)(30.3)
(177.3)
(94.4)
(37.1)%
(5.2)%
(49.8)%
(6.5)%
Q4 2016 Q4 2017 FY 2016 FY 2017
Adjusted Net Loss % of Total Revenues
% %
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Appendix
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Selected Unaudited Income Statement Data
For the Three Months Ended December 31, For the Year Ended December 31,
(in Millions)2016
(RMB)2017
(RMB)2017(USD)
2016(RMB)
2017(RMB)
2017(USD)
Revenues:
Loan Recommendation Services 81.2 429.3 66.0 238.8 1,119.5 172.1
Credit Cards Recommendation Services 18.1 118.6 18.2 64.9 228.9 35.2
Total Recommendation Services 99.3 547.9 84.2 303.8 1,348.4 207.2
Advertising, Marketing and Other Services 14.5 36.8 5.7 52.6 97.4 15.0
Total Revenues 113.8 584.6 89.9 356.4 1,445.8 222.2
Cost of Revenues (18.5) (61.3) (9.4) (66.7) (143.8) (22.1)
Gross Profit 95.3 523.4 80.4 289.7 1,301.9 200.1
Operating Expenses
Sales and Marketing Expenses (114.2) (500.0) (76.9) (382.9) (1,227.9) (188.7)
Research and Development Expenses (20.0) (74.2) (11.4) (72.8) (153.9) (23.7)
General and Administrative Expenses (4.3) (67.0) (10.3) (16.3) (93.7) (14.4)
Loss from Operations (43.1) (117.9) (18.1) (182.3) (173.6) (26.7)
Others, Net 0.1 - - 0.2 (0.2) (0.0)
Loss Before Income Tax (43.1) (117.9) (18.1) (182.1) (173.7) (26.7)
Income Tax Expense - (18.5) (2.9) - (28.4) (4.4)
Net Loss (43.1) (136.4) (21.0) (182.1) (202.1) (31.1)
Note: Assumes USDRMB FX rate of 6.5063.
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Selected Unaudited Balance Sheet Data
(in Millions)As of 31 Dec 2016
(RMB)As of 31 Dec 2017
(RMB)As of 31 Dec 2017
(USD)Current Assets:
- Cash and Cash Equivalents - 1,543.8 237.3
- Net Accounts Receivable 57.5 182.1 28.0
- Amount Due from Related Parties 21.1 - -
- Prepayments and Other Current Assets 50.4 161.0 24.7
Total Current Assets 129.1 1,886.9 290.0 Non-Current Assets:
Net Property and Equipment 4.6 19.0 2.9
Other Non-current Assets 0.8 7.6 1.2
Total Non-Current Assets 5.4 26.6 4.1 Total Assets 134.5 1,913.5 294.1
Current Liabilities:
- Accounts Payable 32.4 177.4 27.3
- Advances from Customers 18.1 71.5 11.0
- Tax Payable 1.8 17.9 2.7
- Amount due to RPT - 35.4 5.4
- Accrued Expenses and Other Current Liabilities 29.4 72.8 11.2
Total Liabilities 81.9 375.0 57.6
Total Shareholders’ (Deficit) / Equity 52.6 1,538.5 236,5
Total Liabilities and Shareholders’ (Deficit) / Equity 134.5 1,913.5 294.1Note: Assumes USDRMB FX rate of 6.5063.
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Selected Unaudited Cash Flow Statement Data
Note: Assumes USDRMB FX rate of 6.5063.
For the Three Months Ended December 31, For the Year Ended December 31,
(in Millions)2016
(RMB)2017
(RMB)2017(USD)
2016(RMB)
2017(RMB)
2017(USD)
Net Cash Provided By / (Used In) Operating Activities (8.2) 55.2 8.5 (239.1) (28.1) (4.3)
Net Cash Used In Investing Activities (1.1) (9.0) (1.4) (4.4) (18.8) (2.9)
Net Cash Provided By / (Used In) Financing Activities 9.3 1,518.5 233.4 243.5 1,611.9 247.7
Effect of exchange rate changes on cash and cash equivalents - (21.2) (3.3) (21.2) (3.3)
Net Increase / (Decrease) in Cash and Cash Equivalents - 1,543.5 237.2 - 1,543.8 237.3
Cash and Cash Equivalents at Beginning of the Period - 0.3 0.1 - - -
Cash and Cash Equivalents at End of the Period - 1,543.8 237.3 - 1,543.8 237.3
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