Yuan, the sales expense ratio is 76.1%, which is the lowest quarter since the establishment of the company. This is mainly due to the fact that the cost of user points and the cost of user acquisition are decreasing. The daily credit cost of a single daily user is 0.12 yuan, a year-on-year decrease of 28.1%; the cost of acquiring customers for each newly installed user is about 4.60 yuan, a year-on-year decrease of 26%.
Furthermore, R&D investment of Toutiao continued to increase, reaching 281 million yuan in the quarter, an increase of 80.8% year-on-year. R&D investment is mainly used to promote the construction of AI technology and polish the algorithm recommendation engine.
As of June 4th, of the five analysts tracked by Bloomberg, three gave Fun Headlines a “buy” rating, two gave a “hold” rating, no “sell” rating, and an average target price $4.03.
On the previous trading day, Fun Headlines closed at US$2.88 per share, an increase of 5.49%.