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    Ken Gao

    Research Analyst at Tigress Financial Partners

    Ken Gao's questions to CooTek(Cayman)Inc. (CTKYY) leadership

    Ken Gao's questions to CooTek(Cayman)Inc. (CTKYY) leadership • Q2 2021

    Question

    Ken Gao of Tigress Financial Partners asked for an update on the company's sales and marketing margin, questioning if it was on track to meet its target of 50-70% for the year and improve operational efficiency.

    Answer

    CFO Robert Yi Cui confirmed the company's progress, stating that sales and marketing expenses as a percentage of revenue dropped to 72% in Q2 2021 from 87% in Q1 2021. He reiterated the normalized target range of 50% to 70% and expressed confidence in achieving a double-digit net margin through continued efficiency improvements across R&D and G&A expenses.

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    Ken Gao's questions to CooTek(Cayman)Inc. (CTKYY) leadership • Q1 2021

    Question

    Ken Gao of Tigress Financial Partners noted the significant improvement in the sales and marketing margin for Q1 2021 and requested guidance on the expected trend for this margin going forward.

    Answer

    CFO Robert Yi Cui responded that the company's key focus is a balanced approach to growth and operational efficiency. He confirmed that sales and marketing expenses as a percentage of revenue fell to 87% in Q1 2021. He projected this would decrease further to below 75% in the next quarter, stabilizing between 70-75% for the second half of the year. The long-term target is to bring this metric down to the 60-70% range, in line with levels from its 2018 IPO.

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