Aurora Mobile's Q2 2025 Earnings Call: Contradictions Emerge on EngageLab Growth, Profitability Outlook, and Global Expansion Strategy

The above is the analysis of the conflicting points in this earnings call

Date of Call: None provided

Financials Results

• Revenue: RMB 89.9M, up 13% YOY; achieved sequential growth and came in at the high end of guidance
• Gross Margin: Improved quarter over quarter (exact % not disclosed)

Guidance:

• Q3 revenue expected at RMB 88M–RMB 91M, representing 11%–15% YOY growth.
• Outlook based on current market conditions and preliminary estimates; subject to change.
• Management remains optimistic about execution and sustained momentum in 2025.

Business Commentary:

• First Ever Quarterly Net Profit and Revenue Growth:
• Aurora Mobile achieved its first ever GAAP net profit in Q2 2025, with group revenue reaching RMB89.9 million, up 13% year-on-year and within the higher end of guidance.

• This milestone was driven by strong performance from Developer Services, particularly Subscription Services and Value Added Services, and the expansion of EngageLab globally.

• EngageLab Global Expansion and Revenue Growth:

• EngageLab's total contract value signed in Q2 was CNY112 million, with customer numbers increasing by 25% sequentially.

• The growth was fueled by global customer acquisition, strong contract value expansion, and localized service capabilities in various regions.

• AI Agent Platform and Financial Risk Management:

• Financial Risk Management revenue grew 27% year-on-year, with customer numbers increasing by 48%, contributing to two consecutive quarters of revenue exceeding CNY21 million.

• Growth was driven by deeper integration and usage of AI-driven products by leading financial institutions and strong demand for financial risk management solutions.

• Operational Efficiency and Cost Control:

• Aurora Mobile achieved a gross profit of CNY59.6 million, the highest in the past ten quarters, with operating expenses growing by only 11% year-on-year.
• This was attributed to strategic cost control measures, including headcount reductions, streamlining services, and optimizing operational efficiency.

Sentiment Analysis:

• Management called Q2 “the best quarter we have ever had,” achieving the first-ever GAAP net profit. Group revenue rose 13% YOY to RMB 89.9M; EngageLab revenue grew 67% YOY and 24% QOQ. Gross profit hit a 10-quarter high (RMB 59.6M). Q3 revenue guidance implies 11%–15% YOY growth.

Q&A:

• Question from Kelvin Wong (Speaker Capital): What drove the strong Q2 results, and can GAAP net profitability be sustained going forward?
  Response: CFO said results reflect structural drivers: disciplined execution, global expansion of EngageLab, and AI agent platform traction, with domestic strength—indicating momentum is durable rather than short term.

• Question from Marco Zhang (Geelong Hui Research): Please update on EngageLab’s current status and future outlook.
  Response: CFO highlighted EngageLab’s 45+ country reach, 67% YOY revenue growth, growing contract wins, and localized teams in HK, Singapore, Malaysia, with Thailand/Japan build-outs—supporting continued strong growth.