Keep Your Eyes on This Stock: Gridsum Holding Inc – ADR (NASDAQ: GSUM)

On 05 Oct 2019, Gridsum Holding Inc – ADR (NASDAQ: GSUM) remained among the day gainers losers and traded with change of 2.47% on volume of 13022 shares in the last session as compared to average volume of 27186 shares. During last trade its minimum price was $1.64 and it gained highest price of $1.7. GSUM has total market capitalization of $57204827. Its closing value stands at $1.66.

Gridsum Holding Inc (GSUM) recently stated its unaudited financial results for the second quarter ended June 30, 2019.

OPERATING EXPENSES: Total operating expenses were RMB181.7M (US$26.5M), contrast with RMB203.3M in the comparable period of 2018.

  • Sales and marketing expenses were RMB38.1M (US$5.6M), contrast with RMB40.1M in the comparable period of 2018. The decrease was primarily Because of a RMB4.0M decrease in staff and other costs, which was partially offset by a RMB1.0M increase in share-based compensation expenses.
  • Research and development expenses were RMB87.9M (US$12.8M), contrast with RMB119.9M in the comparable period of 2018. The decrease primarily reflected the Company moving past the peak of front-end investment into its industrial AI and IIoT platforms.
  • General and administrative expenses were RMB55.7M (US$8.1M), contrast with RMB43.3M in the comparable period of 2018. The increase was primarily Because of a RMB8.7M increase in share-based compensation expenses, a RMB5.4M increase in office leasing costs and a RMB5.3M increase in staff costs, which were partially offset by a RMB12.9M decrease in professional service fees.

LOSS FROM OPERATIONS: Loss from operations was RMB132.0M (US$19.2M), contrast with RMB113.7M in the comparable period of 2018.

Second Quarter 2019 Review

The Company’s performance in the second quarter of 2019 continued to reflect the Company moving through resolution of some of the challenges, originating in 2018, where a number of events and issues negatively influenced the Company’s business and performance. Additionally, revenue and growth momentum continued to be influenced by the slowdown in the Chinese economy.

The Company’s restructuring of its sales and service functions continues to gain traction and is creating a more optimal revenue mix with a focus on higher-return opportunities. Following important investments in its industrial AI and IIoT platforms throughout 2018, revenue from the Company’s IIoT business continued to gain strong growth momentum during the quarter and accounted for a low double-digit percentage of total revenues in the quarter.

GSUM price decreased at -13.95% from 20-Days Simple Moving Average, plunged at -23.89% from 50-Days Simple Moving Average and settled at -41.29% from 200 Days Simple Moving Average. The short ratio in the company’s stock is documented at 7.3 and the short float is around of 1.66%. The average true range of the stock is observed at 0.17 and the relative strength index of the stock is recorded at 34.39.


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