SANTA CLARA, Calif., Aug. 9, 2019 /PRNewswire/ -- CooTek (NYSE: CTK) ("CooTek" or the "Company"), a fast-growing global mobile internet company, today announced revised total revenue guidance for the second quarter of 2019.
CooTek currently expects second quarter total revenue to be between US$34 million and US$36 million, compared to the previously announced range of US$45 million and US$50 million.
The guidance revision is mainly due to the difficulties that the Company is experiencing in collecting its consideration from Google and therefore inability to recognize the corresponding advertising revenues for the last 2 months of the quarter as a result of Google's decision in mid-July to temporarily disable the Company's global portfolio apps. CooTek is in continuous communication with Google to clarify any potential misunderstandings and restore access to its global portfolio of apps though no specific timetable has been confirmed. However, the processes for appealing such suspensions and removals could be time-consuming, and the Company cannot guarantee that its appeals will prevail or that any such suspended or removed applications will be made available again. The current suspensions and removals of the Company's global portfolio apps could lead to the difficulty in growing or sustaining its user base even though the Company acquired an increasing significant portion of its new users through other channels starting in 2019, and could significantly adversely affect the Company reputation, business operation and financial performance.
About CooTek (Cayman) Inc.
CooTek is a fast-growing global mobile internet company. The mission of CooTek is to empower everyone to express themselves and enjoy relevant content seamlessly. The Company's user-centric and data-driven approach has enabled it to release appealing products to capture mobile internet users' ever-evolving content needs and helps it rapidly attract targeted users. Focusing on 5 verticals of fitness, news and short videos, healthcare, lifestyle and entertainment, CooTek has developed multiple rapidly growing content-rich portfolio apps with news feed to deliver relevant content.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. CooTek may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about CooTek's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: CooTek's mission and strategies; future business development, financial conditions and results of operations; the expected growth of the mobile internet industry and mobile advertising industry; the expected growth of mobile advertising; expectations regarding demand for and market acceptance of our products and services; competition in mobile application and advertising industry; and relevant government policies and regulations relating to the industry. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and CooTek does not undertake any obligation to update such information, except as required under applicable law.
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CooTek (Cayman) Inc.
Mr. Christian Arnell
Ms. Linda Bergkamp