large global user base, comprised of an average of 132.6 million DAUs across more than 240 countries and regions in June 2018, compared to an average of 75.6 million DAUs in June 2017, representing 75.3% year-on-year growth. Our super app, TouchPal Smart Input, is an intelligent input method for mobile devices and generates a massive, diverse set of user interaction data. We employ proprietary AI and big data analytical technologies both to process such data and a large amount of multi-language content that we source and organize from the internet, and to develop advanced multilingual natural language processing and semantic understanding technologies. These technologies enable us to obtain in-depth user insights and identify market opportunities, which set the foundation for developing content-rich mobile applications that deliver relevant content for five selected verticals including fitness, lifestyle, healthcare, news and short videos, and entertainment. We have also built a rich library of user profiles and interests that allows us to grow our user base effectively. TouchPal Smart Input boasts an advanced multilingual language model that supports more than 110 languages and offers an effective and enjoyable typing experience on mobile devices. Named one of the Google Play Best Apps of 2015, TouchPal Smart Input has high popularity and superior engagement among mobile internet users around the world. In June 2018, it reached 125.4 million DAUs on average and was launched 72 times per day per active user on average. TouchPal Smart Input's distinctive feature is that it operates across virtually all other mobile applications such as social network apps, e-commerce apps and browsers. Building upon user insights accumulated through our TouchPal Smart Input, we have formulated a systematic approach to developing a global product portfolio, through which we deliver relevant content and grow our global user base. In addition to TouchPal Smart Input, we have launched a portfolio of 15 other mobile applications as of June 30, 2018 and most of them are content-rich applications. These content-rich applications are targeting five selected verticals with large addressable global markets, including fitness, lifestyle, healthcare, news and short videos, and entertainment. Those mobile applications reached 9.4 million MAUs and 2.9 million DAUs on average in December 2017 and 22.2 million MAUs and 7.3 million DAUs on average in June 2018. Most of our global portfolio applications have achieved high user ratings ranging from 4.5 to 4.7 out of 5 on Google Play Store. Our user-centric and data-driven approach has enabled us to release appealing products to capture mobile internet users' ever-evolving content needs and help us rapidly attract targeted users. For example, by leveraging our data analytics capabilities, we have identified an increasing number of users who are interested in fitness-related topics and content. To capture the business opportunity presented by this trend, we developed two fitness mobile applications, HiFit and ManFIT. We have also built a profile of target users based on our user insights. We believe that this approach has allowed us to effectively grow our user base. Through HiFit and ManFIT, we deliver rich content such as workout videos to our users based on their profiles. We believe that potential users matching such profile are more likely to be interested in these applications. We continue to improve our AI capabilities and, in March 2018, launched Talia, an AI-powered virtual personal assistant that understands everyday conversations and delivers relevant content to users in multiple scenarios. Talia is integrated seamlessly with our TouchPal Smart Input. Talia automatically offers services to users in a variety of usage scenarios, such as content recommendations, web searches and weather forecasts. We have a proven and scalable monetization capability in mobile advertising. We leverage our in-depth user insights to deliver targeted and engaging advertisements that are relevant to users across our various mobile applications. The effective price per impression and the number of our average daily impressions delivered on our global portfolio products increased by approximately 36% and 537%, respectively, from the first half of 2017 to the first half of 2018. We generate revenues primarily from mobile advertising. Our net revenues grew rapidly from US$11.0 million in 2016 to US$37.3 million in 2017, representing 238.5% year-on-year growth. Our net revenues grew rapidly from US$9.1 million for the six months ended June 30, 2017 to US$50.3 million for the same period of 2018, representing 451.7% year-on-year growth. Our net loss decreased from US$30.7 million in 2016 to US$23.7 million in 2017 due to our revenue growth and operating leverage. We recorded net income of US$3.5 million for the six months ended June 30, 2018, compared to net loss of US$16.2 million for the same period of 2017. We generated gross profit of US$17.2 million in 2017, compared to gross loss of US$9.1 million in 2016, implying an improvement of gross profit margin from negative 82.8% in 2016 to 46.2% in 2017. We recorded gross profit of US$42.2 million for the six months ended June 30, 2018, as compared to gross loss of US$1.1 million for the same period of 2017, implying an improvement of gross profit margin from negative 11.6% for the six months ended June 30, 2017 to 84.0% for the same period of 2018. Of our total advertising revenue generated from our global portfolio products, our TouchPal Smart Input contributed substantially all in 2016, approximately 71% in 2017 and 33% in the six months ended June 30, 2018, and our other global portfolio products contributed approximately 29% in 2017 and 67% in the six months ended June 30, 2018. --- Our principal executive offices are located at Building 7, No. 2007 Hongmei Road, Xuhui District, Shanghai, 201103, People's Republic of China. Our telephone number at this address is +86 21 6485 6352. Our registered office in the Cayman Islands is located at offices of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. Our main website is www.cootek.com. Our agent for service of process in the United States is Puglisi & Associates, located at 850 Library Avenue, Suite 204, Newark, Delaware 19711.
CooTek, a Shanghai-based internet company that is best known for a mobile keyboard application, has filed for its IPO in the U.S.
The company has amassed an impressive 132 million DAUs (at a 75% y/y growth rate), which is only just shy of Snap's DAU count but at a much faster growth rate.
Though based in China, CooTek's applications are available to users across 240 countries.
Building on its success in keyboard apps, CooTek has ventured into other applications, launching a smart AI-driven assistant earlier this year.
CooTek is still in the early stages of monetization, but growing rapidly. The company generated $48.5 million of revenue in the first half of 2018, at a staggering 5.5x growth rate.
A couple of China-based technology companies are prepping for U.S. IPOs this week, and one of the fastest-growing and most exciting of them is CooTek (CTK). The company labels itself as an internet company that spans a wide variety of applications, though it's best known for an application called TouchPal Smart Input, which is an "intelligent input method for mobile devices."
CooTek's China-based domicile is fairly misleading - the company has produced a global product, with downloads in over 240 countries. In 2015, TouchPal Smart Input was named one of the best apps in the Google Play store, according to the company's IPO documents. Building on that strength, CooTek has expanded horizontally into a host of other mobile applications, with one of the most promising - an AI-based virtual assistant - launching earlier this year in March 2018. Its ambition, obviously, is to become a large internet conglomerate with a variety of revenue-generating applications.
CooTek is still a young company, having been founded only in 2008 - but it has since reached a massive user base. The company reported 132 million DAUs as of June 2018, at a 75% y/y growth rate, as shown in the IPO infographic below:
Figure 1. CooTek IPO cover sheetSource: CooTek F-1 filing