Shares of Chinese mobile content aggregator Qutoutiao (NASDAQ: QTT) slumped on Wednesday following a mixed fourth-quarter report. Exploding revenue beat analyst expectations, but the company's net loss exploded as well. The stock was down about 19% at 1 p.m. EST.
Qutoutiao reported fourth-quarter revenue of $193 million, up 426% year over year in local currency and about $4.2 million above the average analyst estimate. Average monthly active users rose 286% to 93.8 million, while average daily active users soared 224% to 30.9 million. The average daily time spent per daily active user nearly doubled to 32.1 minutes.
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This explosive growth came with a big downside. Qutoutiao posted a non-GAAP net loss of $53.3 million, a sevenfold increase in local currency compared to the prior-year period. A non-GAAP EPS loss of $0.22 was $0.03 below analyst expectations.
Qutoutiao expects to produce first-quarter revenue between RMB1,100 million and RMB1,120 million, or between $163.9 million and $166.9 million at current exchange rates. Revenue between RMB7,500 million and RMB8,500 million, or between $1.12 billion and $1.27 billion, is expected for the full year.
Ultra-fast revenue growth coupled with gigantic losses seems to be a theme with many Chinese Internet stocks. Qutoutiao is no exception. While the company's revenue growth is impressive, the market seemed to care more about the bottom line on Wednesday, sending the stock lower.
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