Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | GSUM |
Entity Registrant Name | Gridsum Holding Inc. |
Entity Central Index Key | 1,647,338 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 4,543,461 |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 26,280,367 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Current assets: | ||||
Cash and cash equivalents | ¥ 166,690 | $ 25,620 | ¥ 520,452 | ¥ 198,523 |
Time deposit | 69,430 | |||
Restricted cash | 245,320 | 37,705 | 4,002 | |
Notes Receivable | 6,000 | 922 | ||
Accounts receivable, net | 599,280 | 92,108 | 355,880 | 273,536 |
Prepayments and other current assets | 306,092 | 47,045 | 189,740 | 105,387 |
Total current assets | 1,323,382 | 203,400 | 1,139,504 | 577,446 |
Non-current assets: | ||||
Property and equipment, net | 50,873 | 7,819 | 52,618 | 35,840 |
Intangible assets, net | 9,426 | 1,449 | 5,313 | 402 |
Goodwill | 537 | 83 | ||
Deferred tax assets | 18,392 | 2,827 | 7,118 | |
Other non-current assets | 487 | 75 | 3,947 | 4,558 |
Total non-current assets | 79,715 | 12,253 | 68,996 | 40,800 |
Total assets | 1,403,097 | 215,653 | 1,208,500 | 618,246 |
Current liabilities: | ||||
Short-term bank loans | 266,019 | 40,886 | 65,000 | 0 |
Accounts payable | 208,152 | 31,994 | 49,564 | 99,559 |
Salary and welfare payables | 60,696 | 9,329 | 42,820 | 33,539 |
Taxes payable | 103,331 | 15,882 | 66,851 | 26,112 |
Deferred revenues | 13,391 | 2,058 | 21,057 | 18,368 |
Advances from customers | 116,847 | 17,959 | 109,381 | 112,782 |
Accrued expenses and other current liabilities | 90,721 | 13,944 | 76,578 | 67,292 |
Total current liabilities | 859,157 | 132,052 | 431,251 | 357,652 |
Non-current liabilities: | ||||
Deferred tax liabilities | 249 | 38 | ||
Total non-current liabilities | 249 | 38 | ||
Total liabilities | 859,406 | 132,090 | 431,251 | 357,652 |
Commitments and contingencies | ||||
Mezzanine equity | ||||
Convertible preferred shares | 476,018 | |||
Shareholders' equity: | ||||
Additional paid-in capital | 1,107,201 | 170,174 | 1,090,991 | |
Statutory Reserve | 6,730 | 1,034 | 6,662 | 0 |
Accumulated other comprehensive loss | (30,539) | (4,694) | (10,087) | (19,010) |
Accumulated deficit | (549,911) | (84,520) | (310,847) | (196,866) |
Total Gridsum's shareholders' equity | 533,688 | 82,026 | 776,918 | (215,808) |
Non-controlling interests | 10,003 | 1,537 | 331 | 384 |
Total shareholders' equity | 543,691 | 83,563 | 777,249 | (215,424) |
Total liabilities, mezzanine equity and shareholders' equity | 1,403,097 | 215,653 | 1,208,500 | 618,246 |
Convertible Redeemable Series A Preferred Shares | ||||
Mezzanine equity | ||||
Convertible preferred shares | 40,181 | |||
Convertible Redeemable Series A-1 Preferred Shares | ||||
Mezzanine equity | ||||
Convertible preferred shares | 28,492 | |||
Convertible Redeemable Series B Preferred Shares | ||||
Mezzanine equity | ||||
Convertible preferred shares | 126,641 | |||
Convertible Redeemable Series C Preferred Shares | ||||
Mezzanine equity | ||||
Convertible preferred shares | 280,704 | |||
Class A Ordinary Shares | ||||
Shareholders' equity: | ||||
Ordinary shares | 31 | 5 | 31 | 31 |
Class B Ordinary Shares | ||||
Shareholders' equity: | ||||
Ordinary shares | ¥ 176 | $ 27 | ¥ 168 | ¥ 37 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015shares | Jan. 31, 2015shares | Oct. 31, 2013shares | Jul. 31, 2011shares | Sep. 30, 2010shares |
Convertible Redeemable Series A Preferred Shares | |||||||||||
Convertible preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 3,125,000 | 3,125,000 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 3,125,000 | 3,125,000 | 3,125,000 | ||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 3,125,000 | 3,125,000 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 0 | $ 0 | |||||
Convertible Redeemable Series A-1 Preferred Shares | |||||||||||
Convertible preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 1,302,084 | 1,302,084 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 1,302,084 | 1,302,084 | 1,302,084 | ||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 1,302,084 | 1,302,084 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 0 | $ 0 | |||||
Convertible Redeemable Series B Preferred Shares | |||||||||||
Convertible preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 2,962,239 | 2,962,239 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 2,962,239 | 2,962,239 | 2,962,239 | ||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 2,962,239 | 2,962,239 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 0 | $ 0 | |||||
Convertible Redeemable Series C Preferred Shares | |||||||||||
Convertible preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 4,640,843 | 4,640,843 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 4,640,843 | 4,640,843 | 4,640,843 | 4,640,843 | |||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 4,640,843 | 4,640,843 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 0 | $ 0 | |||||
Class A Ordinary Shares | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Ordinary share, shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Ordinary share, shares issued | 4,543,461 | 4,543,461 | 4,543,461 | 4,543,461 | |||||||
Ordinary share, shares outstanding | 4,543,461 | 4,543,461 | 4,543,461 | 4,543,461 | |||||||
Class B Ordinary Shares | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Ordinary share, shares authorized (in shares) | 180,000,000 | 180,000,000 | 180,000,000 | 180,000,000 | |||||||
Ordinary share, shares issued | 26,280,367 | 26,280,367 | 25,191,705 | 25,191,705 | |||||||
Ordinary share, shares outstanding | 26,280,367 | 26,280,367 | 25,191,705 | 25,191,705 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | ||
Revenues: | |||||
Enterprise | ¥ 377,013 | $ 57,946 | ¥ 311,106 | ¥ 208,385 | |
e-Government and other | 102,216 | 15,710 | 60,772 | 26,904 | |
Less: Business tax and surcharges | (9,696) | (1,490) | (8,055) | (3,092) | |
Net revenues | 469,533 | 72,166 | 363,823 | 232,197 | |
Cost of revenues | [1] | (94,640) | (14,546) | (55,707) | (33,392) |
Gross profit | 374,893 | 57,620 | 308,116 | 198,805 | |
Operating expenses: | |||||
Sales and marketing expenses | [1] | (192,413) | (29,573) | (139,781) | (88,364) |
Research and development expenses | [1] | (257,921) | (39,642) | (160,387) | (97,553) |
General and administrative expenses | [1] | (143,743) | (22,093) | (88,108) | (60,820) |
Total operating expenses | [1] | (594,077) | (91,308) | (388,276) | (246,737) |
Losses from operations | (219,184) | (33,688) | (80,160) | (47,932) | |
Other income/(expense): | |||||
Foreign currency exchange gain/(loss) | (8,552) | (1,314) | (1,600) | 1,339 | |
Interest income/(expense), net | (5,430) | (835) | (614) | 80 | |
Other income/(expense), net | (1,683) | (259) | (1,452) | 111 | |
Loss before income tax | (234,849) | (36,096) | (83,826) | (46,402) | |
Income tax expense | (4,275) | (657) | (14,801) | (15,371) | |
Net loss | (239,124) | (36,753) | (98,627) | (61,773) | |
Less: Net loss attributable to non-controlling interests | (128) | (20) | (53) | (16) | |
Net loss attributable to Gridsum Holding Inc. | (238,996) | (36,733) | (98,574) | (61,757) | |
Accretion to preferred shares redemption value | (16,725) | (19,707) | |||
Cumulative dividend to preferred shareholders | (12,990) | (16,642) | |||
Net loss attributable to Gridsum's ordinary shareholders | (238,996) | (36,733) | (128,289) | (98,106) | |
Net loss | (239,124) | (36,753) | (98,627) | (61,773) | |
Foreign currency translation adjustment, net of tax | (20,452) | (3,143) | 8,923 | (19,330) | |
Comprehensive loss | (259,576) | (39,896) | (89,704) | (81,103) | |
Less: Comprehensive loss attributable to non-controlling interests | (128) | (20) | (53) | (16) | |
Comprehensive loss attributable to Gridsum Holding Inc. | ¥ (259,448) | $ (39,876) | ¥ (89,651) | ¥ (81,087) | |
Net loss per share attributable to Gridsum's ordinary shareholders, basic and diluted | (per share) | ¥ (7.90) | $ (1.21) | ¥ (8.52) | ¥ (9.81) | |
Weighted average shares outstanding used in computing net loss per share attributable to Gridsum's ordinary shareholders | shares | 30,243,250 | 30,243,250 | 15,054,865 | 10,000,000 | |
[1] | Share-based compensation expenses were allocated in cost of revenues and operating expenses as follows: Cost of revenues 335 319 501 77 Sales and marketing expenses 1,651 2,252 4,739 728 Research and development expenses 3,347 3,955 8,641 1,328 General and administrative expenses 3,473 4,103 9,042 1,390 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Share-based compensation expenses | ¥ 22,927 | ¥ 10,630 | ¥ 8,806 | |
Cost of Revenues | ||||
Share-based compensation expenses | 501 | $ 77 | 319 | 335 |
Sales and Marketing Expenses | ||||
Share-based compensation expenses | 4,739 | 728 | 2,252 | 1,651 |
Research and Development Expenses | ||||
Share-based compensation expenses | 8,641 | 1,328 | 3,955 | 3,347 |
General and Administrative Expenses | ||||
Share-based compensation expenses | ¥ 9,046 | $ 1,390 | ¥ 4,104 | ¥ 3,473 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY ¥ in Thousands | CNY (¥) | USD ($) | Class B Ordinary SharesCNY (¥)shares | Ordinary SharesCNY (¥)shares | Ordinary SharesUSD ($)shares | Ordinary SharesClass B Ordinary SharesCNY (¥)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalClass B Ordinary SharesCNY (¥) | Statutory ReservesCNY (¥) | Accumulated Other Comprehensive Income/(Loss)CNY (¥) | Accumulated DeficitCNY (¥) | Non-controlling InterestCNY (¥) |
Balance, Beginning at Dec. 31, 2014 | ¥ (123,820) | ¥ 68 | ¥ 2,436 | ¥ 320 | ¥ (126,644) | |||||||
Balance, Share Beginning at Dec. 31, 2014 | shares | 10,000,000 | 10,000,000 | ||||||||||
Preferred shares accretion | (19,707) | (11,242) | (8,465) | |||||||||
Share-based compensation expenses | 8,806 | 8,806 | ||||||||||
Net loss | (61,773) | (61,757) | ¥ (16) | |||||||||
Capital injection in a subsidiary by non-controlling interests shareholder | 400 | 400 | ||||||||||
Foreign currency translation adjustments, net of tax | (19,330) | (19,330) | ||||||||||
Balance, Ending at Dec. 31, 2015 | (215,424) | ¥ 68 | (19,010) | (196,866) | 384 | |||||||
Balance, Share Ending at Dec. 31, 2015 | shares | 10,000,000 | 10,000,000 | ||||||||||
Preferred shares accretion | (16,725) | (7,980) | (8,745) | |||||||||
Share-based compensation expenses | 10,630 | 10,630 | ||||||||||
Appropriation of statutory reserves | ¥ 6,662 | (6,662) | ||||||||||
Net loss | (98,627) | (98,574) | (53) | |||||||||
Issuance of ordinary shares upon Initial public offering ("IPO") | 615,032 | ¥ 51 | $ 7,705,000 | 614,981 | ||||||||
Initial public offering costs | (33,887) | (33,887) | ||||||||||
Conversion of preferred shares to Class B ordinary shares (in shares) | shares | 12,030,166 | |||||||||||
Conversion of preferred shares to Class B ordinary shares | (507,327) | ¥ 507,327 | ¥ 80 | ¥ 507,247 | ||||||||
Foreign currency translation adjustments, net of tax | 8,923 | 8,923 | ||||||||||
Balance, Ending at Dec. 31, 2016 | 777,249 | ¥ 199 | 1,090,991 | 6,662 | (10,087) | (310,847) | 331 | |||||
Balance, Share Ending at Dec. 31, 2016 | shares | 25,191,705 | 29,735,166 | 29,735,166 | |||||||||
Share-based compensation expenses | 22,927 | 22,927 | ||||||||||
Appropriation of statutory reserves | 68 | (68) | ||||||||||
Net loss | (239,124) | $ (36,753,000) | (238,996) | (128) | ||||||||
Issuance of ordinary shares upon exercise of share options and restricted stock units | 3,091 | ¥ 8 | 3,083 | |||||||||
Issuance of ordinary shares upon exercise of share options and restricted stock units, shares | shares | 1,088,662 | 1,088,662 | ||||||||||
Consolidation of Hainatianchuang | (9,800) | 9,800 | ||||||||||
Foreign currency translation adjustments, net of tax | (20,452) | (3,143,000) | (20,452) | |||||||||
Balance, Ending at Dec. 31, 2017 | ¥ 543,691 | $ 83,563,000 | ¥ 207 | ¥ 1,107,201 | ¥ 6,730 | ¥ (30,539) | ¥ (549,911) | ¥ 10,003 | ||||
Balance, Share Ending at Dec. 31, 2017 | shares | 26,280,367 | 30,823,828 | 30,823,828 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (239,124) | $ (36,753) | ¥ (98,627) | ¥ (61,773) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Provision for allowance for doubtful accounts | 24,490 | 3,764 | 19,695 | 1,172 |
Share-based compensation expenses | 22,927 | 3,523 | 10,630 | 8,806 |
Depreciation and amortization expenses | 31,474 | 4,837 | 23,893 | 13,100 |
Deferred tax expenses | (11,296) | (1,736) | (7,118) | |
Foreign currency exchange (gain)/loss, net | 20,452 | 3,143 | 1,600 | (1,339) |
Loss on disposal of equipment and leasehold improvement | 138 | 21 | 786 | 310 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (267,554) | (41,122) | (102,039) | (183,792) |
Notes receivable | (6,000) | (922) | ||
Prepayments and other current assets | (102,361) | (15,733) | (88,546) | (54,809) |
Accounts payable | 158,588 | 24,375 | (49,996) | 80,996 |
Amounts due to related parties | (313) | |||
Salary and welfare payable | 18,570 | 2,854 | 9,281 | 15,405 |
Taxes payable | 36,473 | 5,606 | 40,739 | 24,849 |
Deferred revenues | (7,666) | (1,178) | 2,689 | (7) |
Advances from customers | 7,465 | 1,147 | (3,401) | 48,029 |
Accrued expenses and other current liabilities | 6,720 | 1,033 | 5,237 | 11,989 |
Net cash used in operating activities | (306,704) | (47,141) | (235,177) | (97,377) |
Cash flows from investing activities: | ||||
Purchase of property, equipment and software | (22,951) | (3,528) | (45,980) | (23,471) |
Proceeds from disposal of property, equipment and software | 31 | 5 | 12 | 17 |
Transfer to time deposit | (66,418) | |||
Transfer to restricted cash | (241,318) | (37,090) | (4,002) | |
Maturity of time deposit | 67,574 | 10,386 | ||
Acquisition of subsidiaries, net of cash acquired | (1,857) | (285) | ||
Net cash used in investing activities | (198,521) | (30,512) | (116,388) | (23,454) |
Cash flows from financing activities: | ||||
Proceeds from issuance of Series C preferred shares | 262,561 | |||
Payment of financing costs in connection with the issuance of Series C preferred shares | (1,061) | |||
Proceeds of bank loans | 266,019 | 40,886 | 65,000 | |
Repayment of bank loan | (65,000) | (9,990) | (4,000) | |
Proceeds from issuance of ordinary shares | 3,091 | 475 | 615,031 | |
Payment for IPO costs | (3,362) | (517) | (29,892) | |
Capital injection from non-controlling interests | (9,800) | (1,506) | 400 | |
Net cash provided by financing activities | 190,948 | 29,348 | 650,539 | 257,500 |
Effect of exchange rate changes on cash and cash equivalents | (39,485) | (6,067) | 22,955 | 24 |
Net increase in cash and cash equivalents | (353,762) | (54,372) | 321,929 | 136,693 |
Cash and cash equivalents at the beginning of the year | 520,452 | 79,992 | 198,523 | 61,830 |
Cash and cash equivalents at the end of the year | 166,690 | 25,620 | 520,452 | 198,523 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income taxes | 1,820 | 280 | 182 | 476 |
Cash paid for interest | 5,614 | 863 | 707 | |
Supplemental schedule of non-cash investing activities: | ||||
Fixed asset purchases financed by accrued expenses and other current liabilities | 6,033 | 927 | 2,144 | 3,176 |
Fixed asset purchases transferred from other non-current assets | ¥ 3,460 | $ 532 | 611 | |
Supplemental schedule of non-cash financing activities: | ||||
Accretions to preferred shares redemption value | ¥ 16,725 | ¥ 19,707 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Principal Activities | 1. Organization and Principal Activities (a) Principal activities Gridsum Holding Inc. (“Company”), through its consolidated subsidiaries and variable interest entities (“VIEs”) (collectively referred to as the “Group”), provides sophisticated data analysis software for multinational and domestic enterprises and government agencies in the People’s Republic of China (“PRC”). The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIE subsidiaries. As of December 31, 2017, the Company’s operating subsidiaries, operating VIE and operating VIE subsidiaries were as follows: Operating Subsidiaries Equity interests held Place and Date of Incorporation Gridsum Holding (China) Limited 100 % Hong Kong, July 2014 Dissector (Beijing) Technology Co., Ltd. 100 % PRC, October 2014 Operating VIE Economic interests held Place and Date of Incorporation Gridsum Holding (Beijing) Co., Ltd 100 % PRC, August 2014 Operating VIE Subsidiaries Economic interests held Place and Date of Incorporation Beijing Gridsum Technology Co., Ltd. 100 % PRC, December 2005 Beijing Moment Everlasting Ad Co., Ltd. 100 % PRC, January 2011 Guoxinjunhe (Beijing) Technology Co., Ltd. 100 % PRC, April 2012 Beijing Yunyang Ad Co., Ltd. 100 % PRC, March 2013 Beijing Guoxinwangyan Technology Co., Ltd. 80 % PRC, August 2015 Beijing Gridsum Yizhun Technology Co., Ltd. 100 % PRC, February 2016 Beijing Zhixunyilong Software Co., Ltd. 100 % PRC, May 2017 Beijing Gridsum Wang’an Technology Co., Ltd. 100 % PRC, June 2017 Beijing Hainatianchuang Technology Development Co., Ltd. 51 % PRC, August 2017 (b) Reorganization The Company was incorporated in the Cayman Islands on July 21, 2014. The Group began operations in December 2005 through Beijing Gridsum Technology Co., Ltd (“Beijing Gridsum”), a PRC domestic company established by our founders. Beijing Gridsum established two wholly owned subsidiaries, Beijing Moment Everlasting Ad Co., Ltd. (“Beijing Moment”) and Guoxinjunhe (Beijing) Technology Co., Ltd. (“Guoxinjunhe”), in January 2011 and April 2012, respectively. Beijing Moment established a wholly owned subsidiary, Beijing Yunyang Ad Co., Ltd. (“Beijing Yunyang”) in March 2013. From July to December 2014, the Group undertook a reorganization (“2014 Restructuring”) and established the Company under the laws of the Cayman Islands; the Company established a wholly owned Hong Kong subsidiary, Gridsum Holding (China) Limited (“Gridsum HK”), which in turn established a wholly owned subsidiary in China, Dissector (Beijing) Technology Co. Ltd. (“WFOE”). Also as part of this 2014 Restructuring, Gridsum Holding (Beijing) Co., Ltd. (“Gridsum PRC Holding”) was established to acquire full ownership of Beijing Gridsum, Beijing Moment and Guoxinjunhe from Beijing Gridsum. On December 22, 2014, the WFOE entered into a series of contractual agreements (“VIE agreements”) with Gridsum PRC Holding and the shareholders of Gridsum PRC Holding, as a result of which Gridsum PRC Holding became a VIE of which the Company is the primary beneficiary, and the Company consolidates the financial results of Gridsum PRC Holding and its subsidiaries. Prior to the 2014 Restructuring, the Group was controlled by a predecessor Cayman Islands entity, which through another restructuring in 2010 (“2010 Restructuring”) controlled the Group entities in China according to a set of contractual arrangements containing terms and conditions identical to those of the VIE agreements. The 2010 Restructuring was undertaken in order to facilitate an international financing completed in September 2010 as well as to comply with relevant government regulations and policies in the PRC. The VIE agreements have superseded the 2010 contractual arrangements. Prior to the 2010 Restructuring, the Group’s founders and management held 100% of the beneficial ownership interest in Beijing Gridsum. In the 2010 Restructuring, the predecessor Cayman Islands entity was established with the same beneficial ownership structure as Beijing Gridsum. Therefore, the Group’s founders and management held 100% of the beneficial ownership interests in, and maintained control of, the Group immediately before and after the 2010 restructuring. In the 2014 Restructuring, the Company was established with the same beneficial ownership structure as the predecessor Cayman Islands entity. Therefore, the Group’s founders, management and the then outstanding Preferred Shareholders held 100% of the beneficial ownership interests in, and maintained control of, the Group immediately before and after the 2014 Restructuring. The entities included in the 2010 Restructuring and 2014 Restructuring were under common control and the two reorganizations have been accounted for in a manner akin to a pooling of interest as if the Company, through its wholly owned subsidiaries, had been in existence and been the primary beneficiary of the VIEs throughout the periods presented in the consolidated financial statements. (c) Contracts with Variable Interest Entitles To comply with applicable PRC laws and regulations, the Group conducts operations in China principally through Beijing Gridsum, Beijing Moment, Guoxinjunhe, Beijing Yunyang, Beijing Guoxinwangyan Technology Co., Ltd. and Beijing Gridsum Yizhun Technology Co., Ltd. The WFOE has entered into a series of contractual arrangements with the parent of these companies, Gridsum PRC Holding, and the shareholders of Gridsum PRC Holding. These contractual arrangements allow the Company to exercise effective control over Gridsum PRC Holding and to receive substantially all of the economic benefits of Gridsum PRC Holding. As a result of these contractual arrangements, the Company is the primary beneficiary of Gridsum PRC Holding, and the Company treats it as a VIE in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The following is a summary of the currently effective contractual arrangements among the WFOE, Gridsum PRC Holding and the shareholders of Gridsum PRC Holding: Exclusive Business Cooperation Agreement. Exclusive Option Agreements. Shareholders’ Voting Rights Proxy Agreements. Equity Pledge Agreements. In addition to the contractual agreements described above, the Company has entered into an Exclusive Rights Arrangement with the predecessor Cayman Islands entity on December 22, 2014. Under this agreement, the Company exercises effective control over the predecessor Cayman Islands entity and receives substantially all of the economic benefits of the predecessor Cayman Islands entity. As a result of this agreement, the Company is the primary beneficiary of the predecessor Cayman Islands entity, and the Company treats it as a VIE. The Company consolidates the financial results of the predecessor Cayman Islands entity and its subsidiaries in the Company’s consolidated financial statements. The following is a summary of the Exclusive Rights Arrangement among the Company, the predecessor Cayman Islands entity and the shareholders of the predecessor Cayman Islands entity that was in effect until termination on August 10, 2015 in connection with the completion of the 2014 Restructuring. All the shareholders agreed to irrevocably assign and entrust to the Company any and all of their respective voting rights and dividends rights with respect to any and all of the equity securities they held in the predecessor Cayman Islands entity. All the actions associated with any shareholder’s voting rights conducted by the Company shall be deemed as such shareholders’ own actions, and all the shareholders’ resolutions executed by the Company shall be deemed to be executed by all of the shareholders themselves. Each shareholder agreed to refrain from exercising any of the voting rights associated with its shareholding in the predecessor Cayman Islands entity, all of which have been authorized and entrusted to the Company. If a dividend or other distribution is declared, paid or set aside, each shareholder shall immediately transfer to the Company any and all of such dividend or distribution. No dividend or distribution, whether in cash, in property or in any other equity securities of the predecessor Cayman Islands entity, shall be declared, paid, set aside or made without the written consent of the Company. Risks in relation to the VIE structure In the opinion of the Company’s management, the contractual arrangements discussed above have resulted in the Company and the WFOE having the power to direct activities that most significantly impact the VIEs and VIE subsidiaries, including appointing key management, setting up operating policies, exerting financial controls and transferring profit or assets out of the VIEs and VIE subsidiaries at its discretion. The Company and the WFOE believe they have the right to receive all the benefits and assets of the VIEs and VIE subsidiaries, except for registered capital of the VIEs and VIE subsidiaries totaling RMB124,000, RMB124,000 and RMB146,000 as of December 31, 2015, 2016 and 2017, respectively. As the VIEs and VIE subsidiaries organized in the PRC were established as limited liability companies under PRC law, their creditors do not have recourse to the general credit of the WFOE for the liabilities of these VIEs and VIE subsidiaries, and the WFOE does not have the obligation to assume the liabilities of these VIEs and VIE subsidiaries. The Company believes that its contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. In addition, the shareholders of Gridsum PRC Holding are also beneficial owners of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the VIE agreements. On January 19, 2015, the Ministry of Commerce (“MOFCOM”), released for public comment a proposed PRC law, the Draft FIE Law, that appears to include VIEs within the scope of entities that could be considered to be foreign invested enterprises, or FIEs, that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control.” If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to reach our VIE arrangements, and as a result our PRC-organized The Company’s ability to control Gridsum PRC Holding and its subsidiaries also depends on the WFOE’s rights, under the Shareholders’ Voting Rights Proxy Agreements, to vote on all matters requiring shareholder approval. As noted above, the Company believes these Shareholders’ Voting Rights Proxy Agreements are legally enforceable, but yet they may not be as effective as direct equity ownership. In addition, if the corporate structure of the Group or the contractual arrangements between the WFOE, Gridsum PRC Holding and their respective shareholders were found to be in violation of any existing PRC laws and regulations, the relevant PRC regulatory authorities could: • revoke the Group’s business and operating licenses; • require the Group to discontinue or restrict its operations; • restrict the Group’s right to collect revenues; • block Group websites; • require the Group to restructure the operations, re-apply • impose additional conditions or requirements with which the Group may not be able to comply; or • take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. The imposition of any of these restrictions or actions may result in a material adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Company to lose the right to direct the activities of the Gridsum PRC Holding or the right to receive its economic benefits, the Company would no longer be able to consolidate the financial statements of Gridsum PRC Holding and its subsidiaries. The Company believes the likelihood of losing the benefits of the Group’s current ownership structure and contractual arrangements with Gridsum PRC Holding is remote based on the current facts and circumstances. There is no VIE in which the Group has a variable interest but is not the primary beneficiary. Currently there is no contractual arrangement that could require the Group to provide additional financial support to the VIEs. The consolidated financial information of the VIEs and VIE subsidiaries, including the inter-group transactions with other entities in the Group, has been included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Total assets 584,080 672,499 1,054,865 Total liabilities 580,242 570,740 996,074 For the year ended December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Net revenues 290,403 533,681 558,393 Net income 24,060 105,597 160,550 For the year ended December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Net cash provided by/(used in) operating activities 142,418 (109,839 ) (148,018 ) Net cash used in investing activities (23,454 ) (45,968 ) (22,920 ) Net cash (used in)/provided by financing activities (4,000 ) 62,151 201,019 In accordance with various contractual agreements, the Company has the power to direct the activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there are no assets in the consolidated VIEs that can be used only to settle obligations of the consolidated VIEs, except for registered capital of the VIEs and VIE subsidiaries totaling RMB124,000, RMB124,000 and RMB146,000 as of December 31, 2015, 2016 and 2017, respectively. As the consolidated VIEs are incorporated as limited liability companies under the Company Law of the People’s Republic of China, creditors do not have recourse to the general credit of the Company for the liabilities of the consolidated VIEs. Liquidity The Group has been incurring recurring losses from operations since inception. Accumulated losses from operations were RMB196,866, RMB310,847, and RMB549,911 as of December 31, 2015, 2016 and 2017, respectively. The net cash used in operating activities was RMB97,377, RMB235,177 and RMB306,704 for the years ended December 31, 2015, 2016 and 2017, respectively. The Group’s ability to fund operations is based on its ability to generate cash, its ability to attract investors and its ability to borrow funds on reasonable economic terms. Historically, the Group has relied principally on both operational sources of cash and non-operational (d) Initial Public Offering The Company completed its initial public offering (“IPO”) on September 23, 2016 on The Nasdaq Stock Market and the underwriters subsequently exercised their over-allotment option on October 3, 2016. The Company issued and sold a total of 7,705,000 American Depositary Shares (“ADSs”) pursuant to these transactions. Each ADS represents one Class B ordinary share of the Company. The net proceeds received by the Company, after deducting commissions and offering expenses, amounted to approximately US$87.1 million. Upon the completion of the IPO, all of the Company’s outstanding preferred shares were converted into Class B ordinary shares immediately as of the same date. |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Principal Accounting Policies | 2. Principal Accounting Policies (a) Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. Restatement of previously issued financial statements The Group’s consolidated financial statements for the years ended December 31, 2015 and 2016 have been restated in accordance with ASC 250, Accounting Changes and Error Corrections (the “restated consolidated financial statements”). In preparing its financial statements for the year ended December 31, 2017, the Group determined that it was appropriate to change its method for recognition of certain revenue, and in the process of reviewing its financial statements for the years ended December 31, 2015 and 2016, the Group also identified other adjustments relating to cost accruals, expense cutoff procedures and classification changes, which resulted in restatements of the Group’s previously-issued audited consolidated financial statements for the years ended December 31, 2015 and 2016. The change in the Group’s revenue recognition method applied to its sales, beginning in 2016, of public sentiment tracking services, which are a part of the Group’s Social Listening Solutions suite. The Group sells distribution rights to a public sentiment tracking service, which is provided by a third party search engine, to sub-distributors for resale to end customers. The Group previously recognized these revenues at the time of sale to the sub-distributors, when revenue recognition criteria were met in accordance with ASC 605-45. Due to the rapid increase in revenues from this service and collection of the related accounts receivable that was slower than expected, the Group determined that it was appropriate to recognize these revenues on a cash basis, recognizing the revenues only when the fees were collected by the Group from the sub-distributors. This change in revenue recognition method reduced reported revenues in 2016 by approximately RMB42.1 million. This reduction was partially offset by a RMB6.0 million increase due to a cutoff adjustment, and by an adjustment related to business tax and surcharges, resulting in a net reduction of RMB36.4 million in 2016. The change in revenue recognition method also resulted in adjustments to related items in the Group’s statements of operations and balance sheet. Accounts receivable at December 31, 2016 was reduced by approximately RMB56.4 million, of which approximately RMB42.1 million reflects the change of revenue recognition method and the balance reflects classification changes and associated changes to deferred revenue. The change in revenue recognition method had no effect on the 2015 financial results. The Group also increased accounts payable as of December 31, 2016 by approximately RMB37.4 million, in order to reconcile its accounting to that of its main media partners for SEM solutions. Other significant adjustments to the Group’s balance sheet as of December 31, 2016 included a RMB29.1 million decrease in deferred revenue due to reclassification changes and associated adjustments to accounts receivable and deferred revenue balances. In connection with its accounting review, the Group identified material weaknesses in its internal control over financial reporting, which are described in Item 15, “Controls and Procedures,” in this Annual Report on Form 20-F. The amounts of the adjustments to the line items of the financial statements for 2015 and 2016 are shown in the Restatement Adjustment columns in the tables below. For the Year Ended December 31, 2015 Consolidated Statements of Comprehensive Loss As previously reported Restatement As revised Revenues 237,624 (2,335 ) 235,289 Less: Business tax and surcharges (2,785 ) (307 ) (3,092 ) Net revenues 234,839 (2,642 ) 232,197 Cost of revenues (35,237 ) 1,845 (33,392 ) Total operating expenses (245,274 ) (1,463 ) (246,737 ) Loss from operations (45,672 ) (2,260 ) (47,932 ) Net loss for the year (48,835 ) (12,938 ) (61,773 ) Net loss attributable to Gridsum’s ordinary shareholders (85,168 ) (12,938 ) (98,106 ) Net loss per share attributable to Gridsum’s ordinary shareholders, basic and diluted (8.52 ) (1.29 ) (9.81 ) As of December 31, 2015 Consolidated Balance sheets As previously reported Restatement As revised Accounts receivable, net 279,537 (6,001 ) 273,536 Prepayment and other current assets 107,046 (1,659 ) 105,387 Total current assets 585,106 (7,660 ) 577,446 Total assets 625,907 (7,661 ) 618,246 Accounts payable 103,289 (3,730 ) 99,559 Taxes payable 16,484 9,628 26,112 Deferred revenue 31,308 (12,940 ) 18,368 Advance from customers 104,605 8,177 112,782 Accrued expenses and other current liabilities 70,908 (3,616 ) 67,292 Total current liabilities 360,133 (2,481 ) 357,652 Total liabilities 360,133 (2,481 ) 357,652 Accumulated other comprehensive loss (19,052 ) 42 (19,010 ) Accumulated deficit (191,644 ) (5,222 ) (196,866 ) Total Gridsum’s shareholders’ equity (210,628 ) (5,180 ) (215,808 ) Total equity (210,244 ) (5,180 ) (215,424 ) For the Year Ended December 31, 2016 Consolidated Statements of Comprehensive Loss As previously reported Restatement As revised Revenues 409,371 (37,493 ) 371,878 Less: Business tax and surcharges (9,112 ) 1,057 (8,055 ) Net revenues 400,259 (36,436 ) 363,823 Cost of revenues (53,487 ) (2,220 ) (55,707 ) Gross profit 346,772 (38,656 ) 308,116 Total operating expenses (383,522 ) (4,754 ) (388,276 ) Loss from operations (36,750 ) (43,410 ) (80,160 ) Foreign exchange gain or loss (829 ) (771 ) (1,600 ) Other expenses (1,780 ) (286 ) (2,066 ) Income tax expense (28,387 ) 13,586 (14,801 ) Net loss for the year (67,746 ) (30,881 ) (98,627 ) Net loss attributable to Gridsum’s ordinary shareholders (97,396 ) (30,893 ) (128,289 ) Net loss per share attributable to Gridsum’s ordinary shareholders, basic and diluted (6.47 ) (2.05 ) (8.52 ) As of December 31, 2016 Consolidated Balance sheets As previously reported Restatement As revised Cash and cash equivalents 524,454 (4,002 ) 520,452 Restricted cash — 4,002 4,002 Accounts receivable 412,301 (56,421 ) 355,880 Prepayments and other current assets 160,087 29,653 189,740 Total current assets 1,166,272 (26,768 ) 1,139,504 Fixed assets, net 56,107 (3,489 ) 52,618 Intangible assets — 5,313 5,313 Deferred tax assets — 7,118 7,118 Other non-current 3,947 — 3,947 Total non-current 60,054 8,942 68,996 Total assets 1,226,326 (17,826 ) 1,208,500 Short-term loans 65,093 (93 ) 65,000 Accounts payable 12,150 37,414 49,564 Salary and welfare payables 54,779 (11,959 ) 42,820 Taxes payable 66,589 262 66,851 Deferred revenue 50,110 (29,053 ) 21,057 Advance from customers 106,570 2,811 109,381 Accrued expenses and other current liabilities 58,473 18,105 76,578 Total current liabilities 413,764 17,487 431,251 Total liabilities 413,764 17,487 431,251 Statutory reserve — 6,662 6,662 Accumulated other comprehensive loss (10,879 ) 792 (10,087 ) Accumulated deficit (268,081 ) (42,766 ) (310,847 ) Total Gridsum’s shareholders’ equity 812,231 (35,313 ) 776,918 Total Equity 812,562 (35,313 ) 777,249 (b) Principles of Consolidation The consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIE subsidiaries for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangement exercises effective control over the activities that most impact economic performance and bears the risks of and enjoys the rewards normally associated with ownership of the entity, so that the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, VIEs and VIE subsidiaries have been eliminated upon consolidation. (c) Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, revenue recognition, share-based compensation, redemption value of the redeemable preferred shares, realization of deferred tax assets and determination of the estimated useful lives of property and equipment. Actual results could differ materially from such estimates. (d) Foreign Currency Translation The Group used U.S. Dollar as its reporting currency, and subsequently changed to RMB effective January 1, 2016 which applied retrospectively. The functional currency of the Company and its subsidiaries incorporated in Hong Kong is U.S. Dollars, while the functional currency of the other entities in the Group is RMB. Assets and liabilities are translated at the applicable exchange rates on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average exchange rate for the periods. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income or loss in the consolidated statement of changes in shareholders’ deficit. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end (e) Convenience Translation Translations of balances in the consolidated balance sheets, consolidated statements of operation and comprehensive loss and statements of cash flows from RMB into U.S. Dollars as of and for the year ended December 31, 2017 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB 6.5063, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2017. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled in U.S. Dollars at that rate on December 31, 2017, or at any other rate. (f) Cash and Cash Equivalents Cash and cash equivalents represent cash on hand and demand deposits with term less than three months which are unrestricted as to withdrawal and use. (g) Restricted Cash Cash that is restricted as to withdrawal or is used or pledged as security is reported separately on the face of the Consolidated Balance Sheets, and is not included in the total cash and cash equivalents in the Consolidated Statements of Cash Flows. The Group’s restricted cash mainly represents (a) security deposits held in designated bank accounts for issuance of bank acceptance and letter of guarantee; (b) time deposits that are pledged for short-term bank loans. (h) Time Deposit Time deposit represent demand deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive loss during the periods. Time deposit are valued based on the prevailing interest rates in the market. (i) Accounts Receivable, net Accounts receivable mainly represent amounts due from customers, including revenues earned, output VAT and amounts paid, or will pay, to search engines on behalf of customers, and are recorded net of an allowance for doubtful accounts, if any. The Company considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the payment history, credit worthiness and the financial condition of the debtor. The Company also makes a specific allowance if there is strong evidence indicating that an accounts receivable is likely to be unrecoverable. Accounts receivable balances are written off after all collection efforts have been exhausted. (j) Property and Equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization and impairment. Property and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value (estimated at 5% of cost) over their estimated useful lives on a straight-line basis. Leasehold improvements are depreciated on a straight-line basis over the period of the lease or their estimated useful lives, if shorter. The estimated useful lives are as follows: Computers 3 years Furniture, fixtures and equipment 5 years Vehicles 5 years Leasehold improvements Over the shorter of lease terms or the estimated useful lives of assets Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and amortization and impairment with any resulting gain or loss recognized in the consolidated statements of operations and comprehensive loss. (k) Impairment of Long-lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. Such assets are considered to be impaired, if the sum of the expected future undiscounted cash flows is less than the carrying value of the assets. The impairment to be recognized is then measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets based on the discounted cash flow. No impairment charge was recognized for any of the periods presented. (l) Intangible Assets with Finite Useful Life Intangible assets, comprising acquired computer software, customer relationship and other finite-lived intangible assets, which are separable from the fixed assets, are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the assets. Acquired customer relationship arising from business combinations (Note 14) is stated at fair value upon acquisition less accumulated amortization, which is recognized using the straight-line method over the estimated useful lives of the assets. The carrying amounts of the finite-lived intangible assets are reviewed for impairment when indicators of impairment are present in accordance with ASC 360-10. 360-10, The estimated economic lives are as follows: Software and other intangible assets 3 -5 Acquired customer relationship 10 years (m) Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities of Beijing Zhixunyilong Software Co., Ltd (“Zhixun”) when it was acquired by the Group in May 2017. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis every December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Commencing September 2011, in accordance with the FASB revised guidance on “Testing of Goodwill for Impairment,” a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more-likely-than-not The Group as a whole, including recently acquired entities, is determined to be one reporting unit for goodwill impairment testing. The Group directly applied the quantitative assessment and performed the goodwill impairment test by quantitatively comparing the fair values of the reporting unit to its carrying amounts, and no impairment loss has been identified for the year ended December 31, 2017. (n) Fair Value Fair value represents the price that would be received from selling an asset, or that would be paid to transfer a liability, in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Accounting guidance establishes a three-level fair value hierarchy and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2— Other inputs that are directly or indirectly observable in the marketplace. Level 3— Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, restricted cash, accounts receivable, prepayments and other current assets, accounts payable, amounts due to related parties, taxes payable, advances from customers and accrued expenses and other current liabilities. As of December 31, 2015, 2016 and 2017, the carrying values of these financial instruments approximated their fair values due to the short-term maturity of these instruments. (o) Revenue Recognition Revenues are generated from sales of the Company’s marketing automation solutions and e-Government e-Government Revenues are recognized when: • persuasive evidence of an arrangement exists; • the Group’s platform is made available and services have been delivered to the customer; • the fee is fixed or determinable; and • collection is reasonably assured. Revenues received from the incentive programs of search engine providers are based on factors determined by these providers, such as yearly growth in the amount of advertising on the provider’s search engine platform that the Company’s customers purchase through its solutions, and other factors selected at the discretion of these providers. Revenues are recorded net of value-added taxes and surcharges. In accordance with ASC 605-45, Where customers purchase multiple solutions in a single contract, the Company allocates the total consideration to the various elements based on the relative selling price method and recognizes revenues as services are rendered. In accordance with ASC 605-25, Enterprise The Company generates enterprise revenue primarily by providing marketing automation solutions including bid management and data analysis solutions to enterprise customers. The Company earns and records service fee revenues over the contractual period. For certain application development contracts, the Company recognizes revenue upon completion of performance that is stipulated in the contracts. Sometimes, the Company receives revenues from the incentive programs of search engine providers based on factors determined by these providers, such as yearly growth in the amount of advertising on the provider’s search engine platform that the Company’s customers purchase through its solutions, and other factors selected at the discretion of these providers. Revenues from these programs are received on both a quarterly and an annual basis and are calculated in accordance with the Company’s customers’ usage of the search engine providers. In addition, the Company sells distribution rights of public sentiment tracking service provided by certain third party search engine to sub-distributor, With respect to the bid management services, the Group considered that: (i) the search engines are responsible for providing the advertisements service to the customers; (ii) the Group lacks the latitude to determine the prices charged by the search engine providers and earns only the fixed service fee from the customers; (iii) the hosting and maintenance of the advertisements are the responsibilities of the search engine providers; (iv) the customers have the discretion in choosing the search engines selection; (v) we receive revenues from incentive programs based on the search engine providers’ policies. The Group’s responsibility is to manage the customer’s advertising campaign on the search engines, according to the terms of the customer contracts so the Group views itself as an agent, and records revenues related to these services on a net basis. e-Government The Group generates revenues by entering into service contracts with governmental agencies for its e-government (p) Advances from Customers and Deferred Revenues Upon the entering of contracts, customers pay the contractual balance as prepayments. The Company allocates the prepayments into advances from customers and deferred revenues. Advances from customers are the balance of the advertising campaign spending that would be recognized as the cost payable to search engine providers when advertisements are placed. Deferred revenues are the revenues to be earned by the Group for services and is recognized as revenue according to the prescribed revenue recognition criteria and policies described above. (q) Cost of Revenues Cost of revenues primarily consists of costs related to hosting the Company’s cloud-based platform, providing implementation and ongoing customer support, data communications expenses, salaries and benefits of operations and support personnel, costs associated with website development activities, allocated overhead and property and equipment depreciation. (r) Research and Development Expenses Research and development costs include payroll, stock-based compensation expense and other operating costs such as outside services, supplies and allocated overhead costs. Research and development costs are expensed as incurred. The Group expenses all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance of the existing websites or the development of software and website content. Costs incurred in the development phase are capitalized and amortized over the estimated product life. However, since the inception of the Company, the amount of costs qualifying for capitalization has been insignificant and as a result, all software development costs have been expensed as incurred. (s) Marketing Expenses Marketing expenses mainly consist of advertising costs, promotion expenses, payroll and related expenses for personnel engaged in marketing activities. Marketing expenses are expensed when the services are received. Advertising expenses are recorded as sales and marketing expenses when incurred, and totaled nil, RMB6,094 and RMB14,886 for the years ended December 31, 2015, 2016 and 2017, respectively. (t) General and Administrative Expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, including accounting, finance, tax, legal and human resources, professional fees and other general corporate expenses as well as costs associated with the use by these functions of facilities and equipment, such as depreciation and rental expenses. (u) Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations and comprehensive loss on a straight-line basis over the terms of underlying lease. (v) Share-based Compensation All share-based awards to employees and directors, including stock option awards are measured at the grant date based on the fair value of the awards. Share-based compensation, net of forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. The Group uses the binominal option pricing model to determine the fair value of stock options and account for share-based compensation expenses using an estimated forfeiture rate at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Share-based compensation expenses are recorded net of estimated forfeitures such that expenses are recorded only for those share-based awards that are expected to vest. (w) Employee Benefits The Company’s subsidiaries, VIEs and VIE subsidiaries established in the PRC participate in a government-mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in mainland China to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. The fair value of the employee benefits liabilities approximates their carrying value due to the short-term nature of these liabilities. The employee benefits payable amounts to RMB1,394, RMB2,244 and RMB2,709 as of December 31, 2015, 2016 and 2017, respectively. Employee social benefits included as expenses in the accompanying consolidated statements of operations and comprehensive loss amounted to RMB26,221, RMB49,557 and RMB66,511 for the years ended December 31, 2015, 2016 and 2017, respectively. (x) Non-controlling The non-controlling Non-controlling non-controlling (y) Income Tax Current income taxes are provided on the basis of net income (loss) for financial reporting purposes and adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred tax assets and liabilities are recognized for the tax effects of temporary differences and are determined by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse to the temporary differences between the financial statements’ carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to reduce the amount of deferred tax assets if based on the weight of available evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes arising from a change in tax rates is recognized in the consolidated statements of operations and comprehensive loss in the period of change. The Group applies a “more likely than not” recognition threshold in the evaluation of uncertain tax positions. The Company recognizes the benefit of a tax position in its consolidated financial statements if the tax position is more likely than not to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to uncertain tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. (z) Comprehensive Loss Comprehensive loss is defined to include all changes in deficit of the Group during a period arising from transactions and other events and circumstances other than those resulting from investments by shareholders and distributions to shareholders. For the years ended December 31, 2015, 2016 and 2017, the Group’s comprehensive loss included net loss and foreign currency translation adjustments. (aa) Loss per Share Basic loss per share is computed by dividing net loss attributable to holders of ordinary shares, considering the accretions to redemption value of the preferred shares, by the weighted average number of ordinary shares outstanding during the period using the two-class two-class if-converted (bb) Segment Reporting The Group provided various services to its customers, commercial companies and also government agencies or state-owned entities, including keyword bidding, graphical and non-graphical (cc) Statutory Reserves The Group’s subsidiaries, VIEs and VIE subsidiaries established in the PRC are required to make appropriations to certain non-distributable In accordance with PRC laws applicable to foreign investment enterprises (“FIE”) established in the PRC, the Company’s subsidiaries registered as wholly foreign owned enterprise have to make appropriations from their after-tax non-distributable after-tax In addition, in accordance with the Company Law of the People’s Republic of China, the VIEs and VIE subsidiaries, registered as Chinese domestic companies, must make appropriations from their after-tax non-distributable after-tax The Group has made no appropriations to statutory surplus fund and other reserve funds for the years ended December 31, 2015, 2016 and 2017 as the Company’s subsidiaries, VIEs and VIE subsidiaries in the PRC were in accumulated loss positions. The general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective company. The staff bonus and welfare fund is liability in nature and is restricted to make payment of special bonuses to employees and for the collective welfare of employees. None of these reserves is allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except under liquidation. (dd) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, The Group has completed its analysis of Topic 606 and has concluded that the measurement of revenue and the timing of recognizing revenue is not expected to change, except for the variable consideration related to performance based revenue. The Group has adopted Topic 606 on January 1, 2018 using the modified retro |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2017 | |
Concentration and Risks | 3. Concentration and Risks Concentration of credit risk Assets that potentially subject the Group to significant concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. As of December 31, 2015, 2016 and 2017, all of the Group’s cash and cash equivalents were held by reputable financial institutions located in the PRC, Hong Kong and the United States, which management believes are of high credit quality and financially sound based on publicly available information. Accounts receivable is typically unsecured and is generally derived from revenues earned from marketing automation solutions. Customers with a receivable balance exceeding 10% of the total accounts receivable balance, net of allowance for doubtful accounts, as of December 31, 2015, 2016 and 2017, are listed as follows: December 31, 2015 December 31, 2016 December 31, 2017 (Restated) (Restated) Customer A 32.5 % 21.8 % 25.9 % Concentration of customer risk The top 20 customers accounted for 55%, 55% and 44% of the total revenues for the years ended December 31, 2015, 2016 and 2017, respectively. Currency risk The Group’s operation transactions and its assets and liabilities are primarily denominated in RMB, which is not freely convertible into foreign currencies. The Group’s cash and cash equivalents denominated in RMB are subject to government controls and amounted to RMB178,577, RMB103,973 and RMB135,542 as of December 31, 2015, 2016 and 2017, respectively. The value of the RMB is subject to changes in the central government policies and international economic and political developments that affect the supply and demand of RMB in the foreign exchange market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances from China in currencies other than RMB by the Group must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to effect the remittance. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable, Net | 4. Accounts Receivable, Net The following summarizes the Group’s accounts receivable as of December 31, 2015, 2016 and 2017: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Accounts receivable 274,800 376,839 644,729 Less: Allowance for doubtful accounts (1,264 ) (20,959 ) (45,449 ) Accounts receivable, net 273,536 355,880 599,280 The amount of payments to search engines on behalf of customers included in accounts receivable was RMB231,734, RMB280,866 and RMB449,411 as of December 31, 2015, 2016 and 2017, respectively. The following table sets out the movements of the allowance for doubtful accounts for the years ended December 31, 2015, 2016 and 2017: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Balance at beginning of the year (92 ) (1,264 ) (20,959 ) Charged to costs and expenses (1,172 ) (19,695 ) (24,490 ) Balance at end of the year (1,264 ) (20,959 ) (45,449 ) |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Prepayments and Other Current Assets | 5. Prepayments and Other Current Assets The following is a summary of prepayments and other current assets: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Deposits to search engine service providers 83,463 93,374 170,403 Prepayments to suppliers 10,513 53,605 96,839 Advances to employees 3,451 14,617 12,372 Prepaid rental and other deposits 7,219 10,846 12,598 Penalty receivable from customer — 15,676 257 Receivables in connection with exercise of option from agents — — 2,565 Others 741 1,622 11,058 Total 105,387 189,740 306,092 Deposits to search engine service providers represent deposits to guarantee the minimum amount of ad spending by the Group’s customers and are refunded annually when the minimum ad spending requirement is met. |
Property, Equipment, net
Property, Equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Equipment, net | 6. Property, Equipment , net The following is a summary of property, equipment, net: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Computers 36,343 65,851 73,292 Furniture, fixtures and equipment 3,505 3,640 4,072 Vehicles 1,833 3,770 3,772 Leasehold improvements 16,341 23,200 42,593 Total 58,022 96,461 123,729 Less: accumulated depreciation and amortization (22,182 ) (43,843 ) (72,856 ) Property, equipment, net 35,840 52,618 50,873 Depreciation and amortization expenses for the years ended December 31, 2015, 2016 and 2017 were RMB13,069, RMB23,722 and RMB29,858, respectively. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, net | 7. Intangible Assets, net The following is a summary of intangible assets, net: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Acquired Software and other intangible assets 442 5,524 11,051 Customer relationship — — 677 Less: accumulated depreciation and amortization (40 ) (211 ) (2,302 ) Intangible Assets, net 402 5,313 9,426 Amortization expenses for the years ended December 31, 2015, 2016 and 2017 were RMB31, RMB171 and RMB1,616 respectively. Expected Future Amortization Expense Twelve months ended December 31, 2018 2,513 2019 2,503 2020 1,530 2021 773 2022 773 Thereafter 1,334 Total expected future amortization expense 9,426 |
Short-term Bank Loans
Short-term Bank Loans | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Bank Loans | 8. Short-term Bank Loans In 2016 and 2017, the Group entered into several short-term guaranteed loan agreements. Each of the loan agreements provides for a RMB revolving credit facility with a maturity term within twelve months. The guarantees on these loans were provided by Guosheng Qi, the Co-Founder, Sci-tech Short-term bank loans as of December 31, 2015, 2016 and 2017 amounted to nil, RMB65,000 and RMB266,019, respectively, which consisted of several bank borrowings denominated in RMB. All of these bank borrowings were repayable within one year. The weighted average interest rate for the outstanding borrowings as of December 31, 2015, 2016 and 2017 was approximately nil, 5.24% and 4.68%, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities The following is a summary of accrued expenses and other current liabilities: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Customer deposits 48,218 40,928 26,445 Accrued expenses 14,585 31,644 57,685 Accrued property, equipment and software related payables 3,866 3,397 2,706 Others 623 609 3,885 Total 67,292 76,578 90,721 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2017 | |
Taxation | 10. Taxation (a) Value added tax The Group’s revenues are subject to VAT at the rate of 6%. The Group’s VAT payable balance amounted to RMB8,166, RMB19,620 and RMB32,413 as of December 31, 2015, 2016 and 2017, respectively. (b) Income tax Cayman Islands Under the current laws of the Cayman Islands, the Group is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Company’s Hong Kong subsidiary is subject to Hong Kong profits tax at the rate of 16.5% on its taxable income generated from the operations in Hong Kong. Payments of dividends by the subsidiary to the Company are not subject to withholding tax in Hong Kong. PRC The Group’s subsidiaries, VIEs and VIE subsidiaries in the PRC are subject to the PRC Corporate Income Tax Law (“CIT Law”) and are taxed at the statutory income tax rate of 25%. The CIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the CIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, etc., of a non-PRC High and new technology enterprises (“HNTE”) will enjoy a preferential enterprise income tax rate of 15% under the CIT Law. Beijing Gridsum Technology Co., Ltd. and Guoxinjunhe (Beijing) Technology Co., Ltd, the Group’s consolidated affiliated entities in the PRC, which are qualified as a HNTE under the CIT Law, is eligible for a preferential enterprise income tax rate of 15% for the period from 2014 to 2019, so long as they obtain approval from relevant tax authority if they are profitable during the period. In 2016, Beijing Moment Everlasting Ad Co., Ltd. and Beijing Yunyang Ad Co., Ltd. obtained the qualification of “HNTE” with a preferential enterprise income tax rate of 15% for the period from 2016 to 2018. Withholding tax on undistributed dividends The CIT law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident The following table sets forth the component of income tax expenses of the Group for the years ended December 31, 2015, 2016 and 2017: For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Current tax expenses 15,371 21,919 15,571 Deferred tax recovery — (7,118 ) (11,296 ) Income tax expenses 15,371 (14,801 ) (4,275 ) Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2015, 2016 and 2017 is as follows: For the year ended December 31, 2015 2016 2017 % % % (Restated) (Restated) PRC statutory tax rate 25.0 25.0 25.0 Effect of overseas tax-exempt (13.7 ) (59.4 ) (15.5 ) Effect of tax holidays 6.3 16.9 (3.1 ) Effect of lower tax rate entities (0.5 ) (0.2 ) (0.1 ) Permanent book-tax (17.1 ) 1.6 (0.5 ) Changes in valuation allowance (33.1 ) (0.7 ) (4.3 ) Change of tax rate — (0.7 ) (3.0 ) Withholding tax — (0.2 ) (0.3 ) Effective tax rate (33.1 ) (17.7 ) (1.8 ) (c) Deferred tax assets and liabilities The following table sets forth the significant components of the aggregate deferred tax assets and liabilities: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Deferred tax assets Education expense 150 49 10 Advertising expense — — 179 Provision for bad debt 293 3,148 7,186 Accrued expense 216 253 159 Charitable donation — — 910 Capitalized R&D in PRC tax return 5,641 6,123 13,160 Intangible assets under PRC Law 794 1,218 1,364 Loss carry-forward 15,207 19,236 28,747 Total deferred tax assets 22,301 30,027 51,715 Less: Valuation allowance 22,301 22,909 33,323 Total deferred tax assets, net — 7,118 18,392 Deferred tax liabilities — — — Intangible assets from acquisitions — — 249 Total deferred tax liabilities, net — — 249 As of December 31, 2017, the Group had net operating loss carryforwards of approximately RMB6,712 attributable to the Hong Kong subsidiary and of approximately RMB178,631 attributable to the PRC subsidiaries, VIEs and VIEs’ subsidiaries. The loss carried forward by the Hong Kong subsidiary can be carried forward to net against future taxable income without a time limit, while the loss carried forward by the PRC companies will expire from 2018 to 2027. A valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the foreseeable future. In making such determination, the Group evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. The changes in valuation allowance for the years ended December 31, 2015, 2016 and 2017 are as follows: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Balance at beginning of the year 19,249 22,301 22,909 Provision 3,052 608 10,414 Balance at end of the year 22,301 22,909 33,323 |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Shares | 12 Months Ended |
Dec. 31, 2017 | |
Redeemable Convertible Preferred Shares | 11. Redeemable Convertible Preferred Shares In September 2010, the Company issued 3,125,000 Series A convertible and redeemable preferred shares for an aggregate proceeds of RMB35,707 (US$5,250). In July 2011, the Company issued 1,302,084 Series A-1 In October 2013, the Company issued 2,962,239 Series B convertible and redeemable preferred shares for aggregate proceeds of RMB107,100 (US$17,500). In January and March 2015, the Company issued 4,640,843 Series C convertible and redeemable preferred shares for aggregate proceeds of RMB262,561 (US$42,000). In September 2016, all of the Series A, Series A-1, The Company has classified the Series A, A-1, The Company has determined that conversion and redemption features embedded in the Preferred Shares are not required to be bifurcated and accounted for as derivatives, as the economic characteristics and risks of the embedded conversion and redemption features are clearly and closely related to that of the preferred shares. The preferred shares are not readily convertible into cash as there is not a market mechanism in place for trading of the Company’s shares. The Group determined that there was no beneficial conversion feature attributable to any of the preferred shares because the initial effective conversion prices of these preferred shares were higher than the fair value of the Company’s ordinary shares at the relevant commitment dates. In addition, the carrying values of the preferred shares are accreted from the share issuance dates to the redemption value on the earliest redemption dates. The accretions are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in paid-in The rights, preferences and privileges of the preferred shares prior to the IPO were as follows: Redemption Rights At any time after September 6, 2017 (“Redemption Start Date”), if a qualified initial public offering has not occurred, holders of more than 50% of the then outstanding Series A, A-1, If any holder of any series of preferred shares exercises its redemption right, any holder of other series of preferred shares shall have the right to exercise the redemption of its series at the same time. The redemption price shall be 125% of original issuance price of Series A, Series A1 and Series B preferred shares, 110% of original issuance price of Series C preferred shares, plus all declared but unpaid dividends up to redemption closing date. The Group shall execute and deliver to each Series A, A1, B and C preferred shares holders a promissory note for the full amount of the redemption payment due but not paid. That such promissory note shall be due and payable no later than one year anniversary of the closing date of the redemption and shall accrue interest daily at a rate of ten percent per annum. The following table sets forth the changes of each of the convertible redeemable preferred shares for the years ended December 31, 2015, 2016 and 2017: Series A Preferred Shares Series A-1 Preferred Shares Series B Preferred Shares Series C Preferred Shares Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Total Amount RMB RMB RMB RMB RMB As of December 31, 2015 3,125,000 40,181 1,302,084 28,492 2,962,239 126,641 4,640,843 280,704 476,018 Accretion — 1,033 — 830 — 6,573 — 8,289 16,725 Accumulated other comprehensive income — 1,226 — 870 — 3,910 — 8,578 14,584 Conversion to Class B ordinary shares (3,125,000 ) (42,440 ) (1,302,084 ) (30,192 ) (2,962,239 ) (137,124 ) (4,640,843 ) (297,571 ) (507,327 ) As of December 31, 2016 — — — — — — — — — As of December 31, 2017 — — — — — — — — — Conversion Rights Prior to the IPO, each preferred share was convertible, at the option of the holder, at any time after the date of issuance of such preferred shares, according to a conversion ratio, subject to adjustments for dilution, including but not limited to stock splits, stock dividends and capitalization and certain other events. Each preferred share is convertible into a number of ordinary shares determined by dividing the applicable original issuance price by the conversion price. The conversion price of each preferred share was the same as its original issuance price and no adjustments to conversion price had occurred. At December 31, 2015, each preferred share was convertible into one ordinary Class B share. Each preferred share was automatically converted into ordinary share, at a conversion ratio of one preferred share to one Class B ordinary share, upon closing of the qualified initial public offering, which occurred on September 23, 2016. Prior to the Series B preferred shares issuance on October 1, 2013, a “Qualified Initial Public Offering” was defined as an initial public offering with net offering proceeds no less than US$30 million and implied market capitalization of the Company of no less than US$160 million prior to such initial public offering. Upon the issuance of the Series B preferred shares, the net offering proceeds and market capitalization criteria for a “Qualified Initial Public Offering” was increased to US$100 million and US$235 million, respectively. Upon the issuance of the Series C preferred shares, the market capitalization criterion for a “Qualified Initial Public Offering” was increased to US$360 million. An extraordinary general meeting held in August 2016, the shareholders of the Company passed a special resolution to amend (the “August 2016 Amendment”) the definition of QIPO in the fourth amended and restated memorandum and articles of association of the Company by replacing the existing definition of QIPO with the following: “QIPO means the closing of the first firm commitment fully underwritten public offering of Ordinary Shares of the Company and the listing of such Ordinary Shares on the New York Stock Exchange, the Nasdaq Global Market System, the Main Board of the Hong Kong Stock Exchange, Shanghai Stock Exchange, Shenzhen Stock Exchange or any other reputable international exchange or quotation system that is approved in writing by the Preferred Shareholder Majority.” Voting rights Each preferred share shall be entitled to that number of votes corresponding to the number of ordinary shares on an as-converted Dividend Rights Preferred shares holders shall be entitled to receive dividends if declared by the Board of Directors, in an amount equal to 10% of the original issuance price of the respective series of preferred shares per annum, prior and in preference to any dividend on the ordinary shares. The dividends for Series A, Series A-1, non-compounding. non-cumulative non-compounding. The remaining undistributed earnings of the Company after full payment of the above amounts on the preferred shares, shall be distributed on a prorate basis to the holders of ordinary shares and preferred shares on as-if-converted Liquidation Preferences Upon any liquidation event, including deemed liquidation, dissolution or winding up of the Company, the assets of the Group shall be distributed in the following order: (i) First, before any distribution or payment to holders of Series A, A-1 (ii) Second, following payment in full of the Series C preferred shares amount, but before any distribution or payment to Series A and Series A-1 (iii) Third, following payment in full of the Series C and Series B preferred shares amount, but before any distribution or payment to ordinary shareholders, each holder of the Series A and Series A-1 A-1 (iv) If there are assets of the Company available for distribution after payment of the above items i), ii), and iii) the remaining assets shall be distributed ratably among the holders of ordinary shares and preferred shares on an as if converted basis. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2017 | |
Ordinary Shares | 12. Ordinary Shares As of December 31, 2016 and 2017, the Company is authorized to issue a maximum of 200,000,000 ordinary shares, comprised of 20,000,000 Class A ordinary shares with a par value of $0.001 per share and 180,000,000 Class B ordinary shares with a par value of $0.001 per share. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. The holders of Class A Ordinary Shares shall have ten votes in respect of each Class A Ordinary Share held, the holders of Class B Ordinary Shares shall have one vote in respect of each Class B Ordinary Share held. Each Class A ordinary share is convertible into one Class B ordinary share at any time by the holder thereof. Class B ordinary shares are not convertible into Class A ordinary shares under any circumstances. On September 23, 2016, the Company completed its IPO in which the Company newly issued 7,705,000 Class B ordinary shares and all of the Company’s Series A, Series A-1, As of December 31, 2016 and 2017, 4,543,461 Class A Ordinary Shares were issued and outstanding. As of December 31, 2016 and 2017, 25,191,705 and 26,280,367 Class B Ordinary Shares were issued and outstanding, respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation | 13. Share-based Compensation In March 2017, the Group amended its employment-related stock option plan, which the Group originally adopted in 2011 and amended in 2014 (“2017 Plan”, subsequently revised to “Stock Option Plan”) under which 2,500,000 Class B ordinary shares are available for issuance. The Stock Option Plan will terminate automatically in 2022, unless terminated earlier. In March 2017, the Group also amended its Equity incentive plan, which the Group originally adopted in 2016 (“2017 Equity Incentive Plan) under which 2,500,000 ordinary shares are available for issuance in 2017 and the number of shares available for grant and issuance under the 2017 Equity Incentive Plan shall be increased on January 1, of each of the calendar years 2017 through 2026, by the lesser of (a) two and one-half Share-based compensation expenses for the total share-based awards which are based on service conditions are recognized using the straight-line attribution approach. For the years ended December 31, 2015, 2016 and 2017, the Group recognized share-based compensation expenses of RMB8,806, RMB10,630 and RMB22,927 respectively, for the stock options granted. Share Options During 2015, the Group granted 331,000 stock options with an average exercise price of $0.42 per share under the Stock Option plan. All of the options were to be vested over four years, one fourth (1/4) vesting and exercisable upon the first anniversary of the date of grant, and the remaining vesting monthly thereafter in 36 equal monthly installments. During 2017, the Group granted 1,320,000 stock options with an average exercise price of $10.1 per share under the Stock Option plan. All of the options were to be vested over four years, one fourth (1/4) vesting and exercisable upon the first anniversary of the date of grant, and the remaining vesting monthly thereafter in 36 equal monthly installments. Valuation Assumptions: For the year ended December 31, 2015 2016 2017 Exercise price US$0.42 — US$10.11 Risk free rate of interest 2.59%-2.95% — 3.14% Dividend yield — — — Life of option (years) 10 — 10 Volatility 46%-49% — 46% The Group estimated the risk free rate based on the yield to maturity of US treasury bonds denominated in U.S. Dollars at the option valuation date. The exercise multiple is estimated as the ratio of fair value of underlying shares over the exercise price as at the time the option is exercised, based on a consideration of research study regarding exercise pattern based on historical statistical data. Expected term is the contract life of the option. The expected volatility at the date of grant date and each option valuation date was estimated based on the historical stock prices of comparable companies. The Group has never declared or paid any cash dividends on its capital stock, and the Group does not anticipate any dividend payments on its ordinary shares in the foreseeable future. A summary of the Group’s stock option activities for the years ended December 31, 2015, 2016 and 2017 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life In Aggregate Intrinsic Value Outstanding as of December 31, 2014 2,192,161 $ 0.42 7.98 16,471 Granted 331,000 $ 0.42 — — Forfeited/expired (24,000 ) $ 0.42 — — Outstanding as of December 31, 2015 2,499,161 $ 0.42 7.28 28,540 Granted — — — — Forfeited/expired (62,500 ) $ 0.42 — — Outstanding as of December 31, 2016 2,436,661 $ 0.42 6.24 34,423 Granted 1,320,000 $ 10.11 — — Forfeited/expired (44,606 ) $ 0.42 — — Exercise (1,088,647 ) $ 0.42 — — Outstanding as of December 31, 2017 2,623,408 $ 5.48 7.15 25,781 Exercisable as of December 31, 2017 1,161,247 $ 0.42 5.20 11,412 The weighted average grant date fair value of options granted for the year ended December 31, 2015, 2016 and 2017 was $8.81, nil and $4.93, respectively. As of December 31, 2015, 2016 and 2017, there was RMB28,643, RMB 17,467 and RMB38,300 of total unrecognized compensation expense, adjusted for estimated forfeitures, related to non-vested Restricted Stock Units During 2017, the Group granted 936,999 restricted stock units (“RSU”). RSU are share awards that, upon vesting, will deliver to the holder shares of the Group’s ordinary shares. All of the RSU were to be vested over four years, one fourth (1/4) vesting and exercisable upon the first anniversary of the date of grant, and the remaining vesting monthly thereafter in 36 equal monthly installments. The Group satisfies RSU vesting through the issuance of new shares or settle by cash. A summary of the Group’s restricted stock activity for the years ended December 31, 2015, 2016 and 2017 is presented below: Number of RSU Weighted Average Grant date Outstanding as of December 31, 2016 — $ — Awarded 936,999 $ 9.75 Vested (300 ) $ 11.24 Outstanding as of December 31, 2017 936,699 $ 9.75 As of December 31, 2017, there was RMB55,473 of total unrecognized compensation expense, adjusted for estimated forfeitures, related to non-vested |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2017 | |
Business Combination | 14. Business Combination On May 31, 2017, the Group’s VIE, Gridsum Holding (Beijing) Co., Ltd., acquired Zhixun from three individual shareholders (“Previous Shareholders”) with a purchase price of RMB2.5 million and RMB7.5 million for continuing employment compensation for the Previous Shareholders for the next three years. The Group funded the acquisition with its own working capital. The Group believes that the acquisition will allow it to better manage opportunities and capitalize on the growth potential in the market for applications related to customer relationship management. The transaction was accounted for as a business combination using the purchase method of accounting. The purchase price allocation of the transaction was determined by the Group with the assistance of an independent appraisal firm based on the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date. The purchase price allocation to assets acquired and liabilities assumed as of the date of acquisition was as follows: May 31, RMB Cash acquired 643 Prepayment, deposit and other assets 335 Property, equipment and software, net 888 Customer relationship 677 Accrued expense, other payable and other current liabilities (309 ) Deferred tax liability (271 ) Goodwill 537 Total 2,500 The customer relationship represents a long term relationship with a large enterprise customers with an estimated useful life of 10 years. The goodwill is mainly attributable to the excess of the consideration paid over the fair value of the net assets acquired that cannot be recognized separately as identifiable assets under U.S. GAAP, and comprise (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of the synergy resulting from the acquisition. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2017 | |
Net Loss per Share | 15. Net Loss per Share The following table sets forth the basic and diluted net loss per share computation and provides a reconciliation of the numerator and denominator for the periods presented: For the year ended December 31, 2015 2016 2017 Numerator: RMB RMB RMB Net loss attributable to Gridsum Holding Inc. (61,757 ) (98,574 ) (238,996 ) Accretion to convertible redeemable preferred share redemption value—A (1,286 ) (1,033 ) — Accretion to convertible redeemable preferred share redemption value—A-1 (1,029 ) (830 ) — Accretion to convertible redeemable preferred share redemption value—B (7,945 ) (6,573 ) — Accretion to convertible redeemable preferred share redemption value—C (9,447 ) (8,289 ) — Cumulative dividend to convertible redeemable preferred shareholders—A (3,297 ) (2,571 ) — Cumulative dividend to convertible redeemable preferred shareholders—A-1 (2,355 ) (1,837 ) — Cumulative dividend to convertible redeemable preferred shareholders—B (10,990 ) (8,582 ) — Numerator for basic and diluted net loss per share (98,106 ) (128,289 ) (238,996 ) Denominator: Weighted average number of ordinary shares outstanding, basic and diluted 10,000,000 15,054,865 30,243,250 Net loss per share attributable to Gridsum’s ordinary shareholders—Basic and diluted (9.81 ) (8.52 ) (7.90 ) Basic net loss per share is computed using the weighted average number of the ordinary shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. For the years ended December 31, 2015, 2016 and 2017, options to purchase ordinary shares that were anti-dilutive and excluded from the calculation of diluted net loss per share was 1,949,197, 2,158,602 and 1,605,961 on a weighted average basis, respectively. For the years ended December 31, 2015, 2016 and 2017, the Series A, Series A-1, |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies | 16. Commitments and Contingencies (a) Commitment The Group leases its offices and facilities under non-cancelable As of December 31, 2017, future minimum lease under non-cancelable Rental commitments Other commitments Total RMB RMB RMB 2018 25,792 10,080 35,872 2019 8,242 9,398 17,640 2020 2,748 6,835 9,583 2021 and thereafter 1,380 3,992 5,372 38,162 30,305 68,467 (b) Litigation From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is reasonably possible to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on the Group’s financial position, results of operations or cash flows for the period in which the unfavorable outcome occurs and potentially in future periods. On April 25, 2018 and June 25, 2018, purported securities class action complaints were filed in the United States District Court for the Southern District of New York against the Company, Guosheng Qi and Michael Peng Zhang, among other defendants. These lawsuits, which are captioned Xu v. Gridsum Holding Inc., et al., Case No. 18-CV-3655, 18-CV-5749, 10b-5 On July 2, 2018, a third purported securities class action complaint was filed in the Supreme Court of the State of New York against Gridsum and certain of its current and former directors and executive officers, among other defendants, variously alleging violations of Sections 11, 12(a)(2), and 15 of the Securities Act against them. The lawsuit, captioned, Gordon v. Gridsum Holding Inc., et al., Index No. 18-653342, |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2017 | |
Restricted Net Assets | 17. Restricted Net Assets Relevant PRC laws and regulations permit payments of dividends by the subsidiaries and the VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, each of the Company’s subsidiaries and VIEs is required to annually appropriate 10% of net after-tax |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events | 18. Subsequent Events On April 30, 2018, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”), dated April 27, 2018 (“Nasdaq Letter”), notifying the Company that it was not in compliance with the requirements for continued listing under Nasdaq Listing Rule 5250(c)(1), because it was unable to timely file its annual report on Form 20-F for the year ended December 31, 2017 (“2017 Annual Report”). Under Nasdaq Listing Rules, the Group had 60 calendar days from the date of the Nasdaq Letter to submit a plan as to how it planned to regain compliance with Nasdaq’s continued listing requirements (“Compliance Plan”). If Nasdaq accepted the Group’s Compliance Plan, Nasdaq could grant the Group an exception of up to 180 calendar days from the due date of the 2017 Annual Report, or until October 29, 2018, to regain compliance. If Nasdaq did not accept the Compliance Plan, the Company would have the opportunity to appeal that decision to a Nasdaq Hearings Panel. The Nasdaq Letter had no immediate impact on the listing of the ADSs representing the Company’s Class B ordinary shares on Nasdaq. On August 29, 2018, the Group reported that it had received a letter from Nasdaq’s Listing Qualifications Department, dated August 21, 2018. The letter notified the Company that the Nasdaq staff had determined to grant the Group additional time to regain compliance with Nasdaq’s listing requirements, provided the Group filed its 2017 Annual Report by October 29, 2018, and provided the Nasdaq staff with an update on the audit committee’s internal investigation on or before September 28, 2018. On October 31, 2018, the Company announced that it received a letter from the Staff of the Listing Qualifications Department of the Nasdaq notifying the Company that since it remained delinquent in filing the 2017 Annual Report, it had not regained compliance with Nasdaq Listing Rule 5250(c)(1) (the “Rule”), which requires timely filing of periodic reports with the Securities and Exchange Commission (“SEC”). As described in the letter, as a result of the continued delinquency, the Company’s ADSs were subject to delisting unless the Company timely requested a hearing before a Nasdaq Hearings Panel (“Panel”). On November 6, 2018, the Company requested a hearing before the Panel to present its plan for regaining compliance with the Rule and requested continued listing pending its return to compliance. On December 13, 2018, the Company attended such hearing with the Panel. On January 4, 2019, the Company received a letter from the Panel granting the Company’s request to remain listed on Nasdaq, subject to the Company being current in its filings with the SEC on or before January 31, 2019 and certain other conditions. On May 5, 2018, the Group completed the transactions contemplated by the Company’s April 30, 2018 convertible note purchase agreement with FutureX Innovation SPC (the “Investor”), an affiliate of FutureX Capital Limited (“FutureX”). In accordance with the convertible note purchase agreement, the Group received US$40 million and issued a convertible note in the principal value of US$40 million (the “Note”) that is convertible, in whole or in part, into Class B ordinary shares of the Group at a conversion price of US$6.50 per share, subject to customary adjustments. The Note has a term of 18 months and bears interest at 2.80% per annum. The Note includes other customary terms and covenants, including certain events of default after which the Note may be due and payable immediately. Additionally, in the event of a fundamental change, as defined in the Note, the holder of the Note may require the Company to repurchase the Note at a price equal to 100% of the principal amount of the Note, plus accrued and unpaid interest. The Investor agreed not to transfer or sell the Note, the Class B ordinary shares or any other securities of the Group, or enter into any swap, short sale or similar arrangements relating to such securities, for a period of six months after the issuance of the Note. In connection with this transaction, the Group and Investor entered into a registration rights agreement (the “Registration Rights Agreement”), under which the Investor has the right to require the Group, within 15 months following the issuance of the Note, to file a registration statement with the SEC covering the offer and sale of the Class B ordinary shares issued upon conversion of the Note, as well as certain customary piggyback registration rights. On May 8, 2018, the Company’s Board of Directors (the “Board”) received a preliminary non-binding In October 2018, the Company’s audit committee concluded its internal investigation. The Group has made significant progress in implementing, and continues to action, a number of remedial steps to bolster substantially its financial controls and contract management processes as recommended by the audit committee. As of December 31, 2018, the Group’s total cash and cash equivalents were approximately RMB96.4 million (US$14.0 million). For this calculation, the RMB amount is translated into U.S. Dollars at the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 28, 2018, which was RMB6.8755 to US$1.00. The Group’s cash and cash equivalents decreased substantially from December 31, 2017 primarily due to its use of cash in operating activities, continued investments in new market opportunities, funding its net loss and increased expenses incurred for professional accounting and legal fees. The Group believes that it can meet its future liquidity and capital requirements for at least next twelve months from the date of this report. However, in the near term, the Group may need to suspend certain customer relationships that consume working capital, reduce operating expenses through restructuring, or increase its working capital through additional sales of equity or debt securities, or other borrowing arrangements. Any such restructuring activities may adversely affect its revenues, and any issuance and sale of additional equity would result in further dilution to the Company’s shareholders. The incurrence of additional indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict the Group’s operations. Failure to increase the Group’s working capital would have a material adverse effect on its business. |
ADDITIONAL INFORMATION_ CONDENS
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2017 | |
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY Rules 12-04(a) 4-08(e)(3) S-X The following condensed financial statements of the Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Company used the equity method to account for its investment in its subsidiaries and VIEs. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiaries and VIEs” and “Accumulated losses in excess of investment in subsidiaries and VIEs.” The Company, its subsidiaries and VIEs were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Company’s share of income from its subsidiaries and VIEs is reported as share of income from subsidiaries and VIEs in the condensed financial statements. The Company is a Cayman Islands company and, therefore, is not subjected to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As of December 31, 2015, 2016 and 2017, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. Inter-company charges, share-based compensation and other miscellaneous expenses for the years ended December 31, 2015, 2016 and 2017, which were previously recognized at the parent company level, had been pushed down to the WFOE/VIE level given the majority of services were provided to the WFOE/VIE entities. Condensed Balance Sheets of Parent Company As of December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Restated) (Restated) ASSETS Current assets: Cash and cash equivalents 19,616 316,210 27,355 4,204 Amounts due from subsidiaries and VIEs 72,163 299,546 518,976 79,765 Prepayments and other current assets 3,701 3,187 7,085 1,089 Total current assets 95,480 618,943 553,416 85,058 Non-current Investment in subsidiaries and VIEs 164,983 170,509 — — Total non-current 164,983 170,509 — — Total assets 260,463 789,452 553,416 85,058 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY/(DEFICIT) Current liabilities: Accrued expenses and other current liabilities 253 12,534 19,728 3,032 Total current liabilities 253 12,534 19,728 3,032 Total liabilities 253 12,534 19,728 3,032 Commitments and contingencies Series A convertible preferred shares (US$0.001 par value; 3,125,000 shares authorized, issued and outstanding as of December 31, 2015; aggregate liquidation value of nil as of December 31, 2015, none issued and outstanding as of December 31, 2016 and 2017) 40,181 — — — Series A-1 28,492 — — — Series B convertible preferred shares (US$0.001 par value; 2,962,239 shares authorized, issued and outstanding as of December 31, 2015; aggregate liquidation value of nil as of December 31, 2015, none issued and outstanding as of December 31, 2016 and 2017) 126,641 — — — Series C convertible preferred shares (US$0.001 par value; 4,640,843 shares authorized, issued and outstanding as of December 31, 2015; aggregate liquidation value of nil as of December 31, 2015, none issued and outstanding as of December 31, 2016 and 2017) 280,704 — — — Total mezzanine equity 476,018 — — — Shareholders’ equity/(deficit): Ordinary shares—Class A (US$0.001 par value; 20,000,000 shares authorized, 4,543,461 shares issued and outstanding as of December 31, 2016 and 2017, respectively) 31 31 31 5 Ordinary shares—Class B (US$0.001 par value; 180,000,000 shares authorized, 25,191,705 and 26,280,367 shares, issued and outstanding as of December 31, 2016 and 2017, respectively) 37 168 176 27 Additional paid-in — 1,090,991 1,107,201 170,174 Statutory Reserve — 6,662 6,730 1,034 Accumulated other comprehensive loss (19,010 ) (10,087 ) (30,539 ) (4,694 ) Accumulated deficit (196,866 ) (310,847 ) (549,911 ) (84,520 ) Gridsum’s shareholders’ equity/(deficit) (215,808 ) 776,918 533,688 82,026 Total liabilities, mezzanine equity and shareholders’ equity/(deficit) 260,463 789,452 553,416 85,058 Condensed Statements of Operations and Comprehensive Loss of Parent Company For the year ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Restated) (Restated) Revenues — — — — Cost of revenues — — — — Gross profit — — — — Operating expenses: Sales and marketing expenses — — — — Research and development expenses — — — — General and administrative expenses (565 ) (802 ) (872 ) (134 ) Total operating expenses (565 ) (802 ) — — Loss from operations (565 ) (802 ) (872 ) (134 ) Loss from subsidiaries and VIEs (61,192 ) (97,772 ) (238,124 ) (36,599 ) Net loss (61,757 ) (98,574 ) (238,996 ) (36,733 ) Accretions to preferred shares redemption value (19,707 ) (16,725 ) — — Cumulative dividend to preferred shareholders (16,642 ) (12,990 ) — — Net loss attributable to Gridsum’s ordinary shareholders (98,106 ) (128,289 ) (238,996 ) (36,733 ) Comprehensive loss (81,103 ) (89,704 ) (259,576 ) (39,896 ) Condensed Statements of Cash Flows of Parent Company For the Year Ended December 31, 2015 2016 2017 2017 RMB (Restated) RMB (Restated) RMB US$ Cash flows from operating activities: Net cash used in operating activities (56,436 ) (188,097 ) 2,424 373 Cash Flows from investing activities: Investment of subsidiaries and VIEs (185,448 ) (103,298 ) (291,008 ) (44,727 ) Net cash used in investing activities (185,448 ) (103,298 ) (291,008 ) (44,727 ) Cash flows from financing activities: Proceeds from issuance of Series C preferred shares 262,561 — — — Proceeds from issuance of ordinary shares — 615,032 3,091 475 Payment of financing costs in connection with the issuance of Series C preferred shares (1,061 ) — — — Payment for IPO costs — (27,043 ) (3,362 ) (517 ) Net cash provided by financing activities 261,500 587,989 (271 ) (42 ) Net increase in cash and cash equivalents 19,616 296,594 (288,855 ) (44,396 ) Cash and cash equivalents at the beginning of the year — 19,616 316,210 48,600 Cash and cash equivalents at the end of the year 19,616 316,210 27,355 4,204 Supplemental schedule of non-cash Accretions to preferred shares redemption value 19,707 16,725 — — |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation | (a) Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. Restatement of previously issued financial statements The Group’s consolidated financial statements for the years ended December 31, 2015 and 2016 have been restated in accordance with ASC 250, Accounting Changes and Error Corrections (the “restated consolidated financial statements”). In preparing its financial statements for the year ended December 31, 2017, the Group determined that it was appropriate to change its method for recognition of certain revenue, and in the process of reviewing its financial statements for the years ended December 31, 2015 and 2016, the Group also identified other adjustments relating to cost accruals, expense cutoff procedures and classification changes, which resulted in restatements of the Group’s previously-issued audited consolidated financial statements for the years ended December 31, 2015 and 2016. The change in the Group’s revenue recognition method applied to its sales, beginning in 2016, of public sentiment tracking services, which are a part of the Group’s Social Listening Solutions suite. The Group sells distribution rights to a public sentiment tracking service, which is provided by a third party search engine, to sub-distributors for resale to end customers. The Group previously recognized these revenues at the time of sale to the sub-distributors, when revenue recognition criteria were met in accordance with ASC 605-45. Due to the rapid increase in revenues from this service and collection of the related accounts receivable that was slower than expected, the Group determined that it was appropriate to recognize these revenues on a cash basis, recognizing the revenues only when the fees were collected by the Group from the sub-distributors. This change in revenue recognition method reduced reported revenues in 2016 by approximately RMB42.1 million. This reduction was partially offset by a RMB6.0 million increase due to a cutoff adjustment, and by an adjustment related to business tax and surcharges, resulting in a net reduction of RMB36.4 million in 2016. The change in revenue recognition method also resulted in adjustments to related items in the Group’s statements of operations and balance sheet. Accounts receivable at December 31, 2016 was reduced by approximately RMB56.4 million, of which approximately RMB42.1 million reflects the change of revenue recognition method and the balance reflects classification changes and associated changes to deferred revenue. The change in revenue recognition method had no effect on the 2015 financial results. The Group also increased accounts payable as of December 31, 2016 by approximately RMB37.4 million, in order to reconcile its accounting to that of its main media partners for SEM solutions. Other significant adjustments to the Group’s balance sheet as of December 31, 2016 included a RMB29.1 million decrease in deferred revenue due to reclassification changes and associated adjustments to accounts receivable and deferred revenue balances. In connection with its accounting review, the Group identified material weaknesses in its internal control over financial reporting, which are described in Item 15, “Controls and Procedures,” in this Annual Report on Form 20-F. The amounts of the adjustments to the line items of the financial statements for 2015 and 2016 are shown in the Restatement Adjustment columns in the tables below. For the Year Ended December 31, 2015 Consolidated Statements of Comprehensive Loss As previously reported Restatement As revised Revenues 237,624 (2,335 ) 235,289 Less: Business tax and surcharges (2,785 ) (307 ) (3,092 ) Net revenues 234,839 (2,642 ) 232,197 Cost of revenues (35,237 ) 1,845 (33,392 ) Total operating expenses (245,274 ) (1,463 ) (246,737 ) Loss from operations (45,672 ) (2,260 ) (47,932 ) Net loss for the year (48,835 ) (12,938 ) (61,773 ) Net loss attributable to Gridsum’s ordinary shareholders (85,168 ) (12,938 ) (98,106 ) Net loss per share attributable to Gridsum’s ordinary shareholders, basic and diluted (8.52 ) (1.29 ) (9.81 ) As of December 31, 2015 Consolidated Balance sheets As previously reported Restatement As revised Accounts receivable, net 279,537 (6,001 ) 273,536 Prepayment and other current assets 107,046 (1,659 ) 105,387 Total current assets 585,106 (7,660 ) 577,446 Total assets 625,907 (7,661 ) 618,246 Accounts payable 103,289 (3,730 ) 99,559 Taxes payable 16,484 9,628 26,112 Deferred revenue 31,308 (12,940 ) 18,368 Advance from customers 104,605 8,177 112,782 Accrued expenses and other current liabilities 70,908 (3,616 ) 67,292 Total current liabilities 360,133 (2,481 ) 357,652 Total liabilities 360,133 (2,481 ) 357,652 Accumulated other comprehensive loss (19,052 ) 42 (19,010 ) Accumulated deficit (191,644 ) (5,222 ) (196,866 ) Total Gridsum’s shareholders’ equity (210,628 ) (5,180 ) (215,808 ) Total equity (210,244 ) (5,180 ) (215,424 ) For the Year Ended December 31, 2016 Consolidated Statements of Comprehensive Loss As previously reported Restatement As revised Revenues 409,371 (37,493 ) 371,878 Less: Business tax and surcharges (9,112 ) 1,057 (8,055 ) Net revenues 400,259 (36,436 ) 363,823 Cost of revenues (53,487 ) (2,220 ) (55,707 ) Gross profit 346,772 (38,656 ) 308,116 Total operating expenses (383,522 ) (4,754 ) (388,276 ) Loss from operations (36,750 ) (43,410 ) (80,160 ) Foreign exchange gain or loss (829 ) (771 ) (1,600 ) Other expenses (1,780 ) (286 ) (2,066 ) Income tax expense (28,387 ) 13,586 (14,801 ) Net loss for the year (67,746 ) (30,881 ) (98,627 ) Net loss attributable to Gridsum’s ordinary shareholders (97,396 ) (30,893 ) (128,289 ) Net loss per share attributable to Gridsum’s ordinary shareholders, basic and diluted (6.47 ) (2.05 ) (8.52 ) As of December 31, 2016 Consolidated Balance sheets As previously reported Restatement As revised Cash and cash equivalents 524,454 (4,002 ) 520,452 Restricted cash — 4,002 4,002 Accounts receivable 412,301 (56,421 ) 355,880 Prepayments and other current assets 160,087 29,653 189,740 Total current assets 1,166,272 (26,768 ) 1,139,504 Fixed assets, net 56,107 (3,489 ) 52,618 Intangible assets — 5,313 5,313 Deferred tax assets — 7,118 7,118 Other non-current 3,947 — 3,947 Total non-current 60,054 8,942 68,996 Total assets 1,226,326 (17,826 ) 1,208,500 Short-term loans 65,093 (93 ) 65,000 Accounts payable 12,150 37,414 49,564 Salary and welfare payables 54,779 (11,959 ) 42,820 Taxes payable 66,589 262 66,851 Deferred revenue 50,110 (29,053 ) 21,057 Advance from customers 106,570 2,811 109,381 Accrued expenses and other current liabilities 58,473 18,105 76,578 Total current liabilities 413,764 17,487 431,251 Total liabilities 413,764 17,487 431,251 Statutory reserve — 6,662 6,662 Accumulated other comprehensive loss (10,879 ) 792 (10,087 ) Accumulated deficit (268,081 ) (42,766 ) (310,847 ) Total Gridsum’s shareholders’ equity 812,231 (35,313 ) 776,918 Total Equity 812,562 (35,313 ) 777,249 |
Principles of Consolidation | (b) Principles of Consolidation The consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIE subsidiaries for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangement exercises effective control over the activities that most impact economic performance and bears the risks of and enjoys the rewards normally associated with ownership of the entity, so that the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, VIEs and VIE subsidiaries have been eliminated upon consolidation. |
Use of Estimates | (c) Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, revenue recognition, share-based compensation, redemption value of the redeemable preferred shares, realization of deferred tax assets and determination of the estimated useful lives of property and equipment. Actual results could differ materially from such estimates. |
Foreign Currency Translation | (d) Foreign Currency Translation The Group used U.S. Dollar as its reporting currency, and subsequently changed to RMB effective January 1, 2016 which applied retrospectively. The functional currency of the Company and its subsidiaries incorporated in Hong Kong is U.S. Dollars, while the functional currency of the other entities in the Group is RMB. Assets and liabilities are translated at the applicable exchange rates on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average exchange rate for the periods. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income or loss in the consolidated statement of changes in shareholders’ deficit. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end |
Convenience Translation | (e) Convenience Translation Translations of balances in the consolidated balance sheets, consolidated statements of operation and comprehensive loss and statements of cash flows from RMB into U.S. Dollars as of and for the year ended December 31, 2017 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB 6.5063, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2017. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled in U.S. Dollars at that rate on December 31, 2017, or at any other rate. |
Cash and Cash Equivalents | (f) Cash and Cash Equivalents Cash and cash equivalents represent cash on hand and demand deposits with term less than three months which are unrestricted as to withdrawal and use. |
Restricted Cash | (g) Restricted Cash Cash that is restricted as to withdrawal or is used or pledged as security is reported separately on the face of the Consolidated Balance Sheets, and is not included in the total cash and cash equivalents in the Consolidated Statements of Cash Flows. The Group’s restricted cash mainly represents (a) security deposits held in designated bank accounts for issuance of bank acceptance and letter of guarantee; (b) time deposits that are pledged for short-term bank loans. |
Time Deposit | (h) Time Deposit Time deposit represent demand deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive loss during the periods. Time deposit are valued based on the prevailing interest rates in the market. |
Accounts Receivable, net | (i) Accounts Receivable, net Accounts receivable mainly represent amounts due from customers, including revenues earned, output VAT and amounts paid, or will pay, to search engines on behalf of customers, and are recorded net of an allowance for doubtful accounts, if any. The Company considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the payment history, credit worthiness and the financial condition of the debtor. The Company also makes a specific allowance if there is strong evidence indicating that an accounts receivable is likely to be unrecoverable. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Property and Equipment, net | (j) Property and Equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization and impairment. Property and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value (estimated at 5% of cost) over their estimated useful lives on a straight-line basis. Leasehold improvements are depreciated on a straight-line basis over the period of the lease or their estimated useful lives, if shorter. The estimated useful lives are as follows: Computers 3 years Furniture, fixtures and equipment 5 years Vehicles 5 years Leasehold improvements Over the shorter of lease terms or the estimated useful lives of assets Expenditures for repairs and maintenance are expensed as incurred, whereas the costs of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and amortization and impairment with any resulting gain or loss recognized in the consolidated statements of operations and comprehensive loss. |
Impairment of Long-lived Assets | (k) Impairment of Long-lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. Such assets are considered to be impaired, if the sum of the expected future undiscounted cash flows is less than the carrying value of the assets. The impairment to be recognized is then measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets based on the discounted cash flow. No impairment charge was recognized for any of the periods presented. |
Intangible Assets with Finite Useful Llife | (l) Intangible Assets with Finite Useful Life Intangible assets, comprising acquired computer software, customer relationship and other finite-lived intangible assets, which are separable from the fixed assets, are stated at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the assets. Acquired customer relationship arising from business combinations (Note 14) is stated at fair value upon acquisition less accumulated amortization, which is recognized using the straight-line method over the estimated useful lives of the assets. The carrying amounts of the finite-lived intangible assets are reviewed for impairment when indicators of impairment are present in accordance with ASC 360-10. 360-10, The estimated economic lives are as follows: Software and other intangible assets 3 -5 Acquired customer relationship 10 years |
Goodwill | (m) Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities of Beijing Zhixunyilong Software Co., Ltd (“Zhixun”) when it was acquired by the Group in May 2017. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis every December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Commencing September 2011, in accordance with the FASB revised guidance on “Testing of Goodwill for Impairment,” a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more-likely-than-not The Group as a whole, including recently acquired entities, is determined to be one reporting unit for goodwill impairment testing. The Group directly applied the quantitative assessment and performed the goodwill impairment test by quantitatively comparing the fair values of the reporting unit to its carrying amounts, and no impairment loss has been identified for the year ended December 31, 2017. |
Fair Value | (n) Fair Value Fair value represents the price that would be received from selling an asset, or that would be paid to transfer a liability, in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Accounting guidance establishes a three-level fair value hierarchy and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2— Other inputs that are directly or indirectly observable in the marketplace. Level 3— Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, restricted cash, accounts receivable, prepayments and other current assets, accounts payable, amounts due to related parties, taxes payable, advances from customers and accrued expenses and other current liabilities. As of December 31, 2015, 2016 and 2017, the carrying values of these financial instruments approximated their fair values due to the short-term maturity of these instruments. |
Revenue Recognition | (o) Revenue Recognition Revenues are generated from sales of the Company’s marketing automation solutions and e-Government e-Government Revenues are recognized when: • persuasive evidence of an arrangement exists; • the Group’s platform is made available and services have been delivered to the customer; • the fee is fixed or determinable; and • collection is reasonably assured. Revenues received from the incentive programs of search engine providers are based on factors determined by these providers, such as yearly growth in the amount of advertising on the provider’s search engine platform that the Company’s customers purchase through its solutions, and other factors selected at the discretion of these providers. Revenues are recorded net of value-added taxes and surcharges. In accordance with ASC 605-45, Where customers purchase multiple solutions in a single contract, the Company allocates the total consideration to the various elements based on the relative selling price method and recognizes revenues as services are rendered. In accordance with ASC 605-25, Enterprise The Company generates enterprise revenue primarily by providing marketing automation solutions including bid management and data analysis solutions to enterprise customers. The Company earns and records service fee revenues over the contractual period. For certain application development contracts, the Company recognizes revenue upon completion of performance that is stipulated in the contracts. Sometimes, the Company receives revenues from the incentive programs of search engine providers based on factors determined by these providers, such as yearly growth in the amount of advertising on the provider’s search engine platform that the Company’s customers purchase through its solutions, and other factors selected at the discretion of these providers. Revenues from these programs are received on both a quarterly and an annual basis and are calculated in accordance with the Company’s customers’ usage of the search engine providers. In addition, the Company sells distribution rights of public sentiment tracking service provided by certain third party search engine to sub-distributor, With respect to the bid management services, the Group considered that: (i) the search engines are responsible for providing the advertisements service to the customers; (ii) the Group lacks the latitude to determine the prices charged by the search engine providers and earns only the fixed service fee from the customers; (iii) the hosting and maintenance of the advertisements are the responsibilities of the search engine providers; (iv) the customers have the discretion in choosing the search engines selection; (v) we receive revenues from incentive programs based on the search engine providers’ policies. The Group’s responsibility is to manage the customer’s advertising campaign on the search engines, according to the terms of the customer contracts so the Group views itself as an agent, and records revenues related to these services on a net basis. e-Government The Group generates revenues by entering into service contracts with governmental agencies for its e-government |
Advances from Customers and Deferred Revenues | (p) Advances from Customers and Deferred Revenues Upon the entering of contracts, customers pay the contractual balance as prepayments. The Company allocates the prepayments into advances from customers and deferred revenues. Advances from customers are the balance of the advertising campaign spending that would be recognized as the cost payable to search engine providers when advertisements are placed. Deferred revenues are the revenues to be earned by the Group for services and is recognized as revenue according to the prescribed revenue recognition criteria and policies described above. |
Cost of Revenues | (q) Cost of Revenues Cost of revenues primarily consists of costs related to hosting the Company’s cloud-based platform, providing implementation and ongoing customer support, data communications expenses, salaries and benefits of operations and support personnel, costs associated with website development activities, allocated overhead and property and equipment depreciation. |
Research and Development Expenses | (r) Research and Development Expenses Research and development costs include payroll, stock-based compensation expense and other operating costs such as outside services, supplies and allocated overhead costs. Research and development costs are expensed as incurred. The Group expenses all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance of the existing websites or the development of software and website content. Costs incurred in the development phase are capitalized and amortized over the estimated product life. However, since the inception of the Company, the amount of costs qualifying for capitalization has been insignificant and as a result, all software development costs have been expensed as incurred. |
Marketing Expenses | (s) Marketing Expenses Marketing expenses mainly consist of advertising costs, promotion expenses, payroll and related expenses for personnel engaged in marketing activities. Marketing expenses are expensed when the services are received. Advertising expenses are recorded as sales and marketing expenses when incurred, and totaled nil, RMB6,094 and RMB14,886 for the years ended December 31, 2015, 2016 and 2017, respectively.. |
General and Administrative Expenses | (t) General and Administrative Expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, including accounting, finance, tax, legal and human resources, professional fees and other general corporate expenses as well as costs associated with the use by these functions of facilities and equipment, such as depreciation and rental expenses. |
Operating Leases | (u) Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations and comprehensive loss on a straight-line basis over the terms of underlying lease. |
Share-based Compensation | (v) Share-based Compensation All share-based awards to employees and directors, including stock option awards are measured at the grant date based on the fair value of the awards. Share-based compensation, net of forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. The Group uses the binominal option pricing model to determine the fair value of stock options and account for share-based compensation expenses using an estimated forfeiture rate at the time of grant and revise, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Share-based compensation expenses are recorded net of estimated forfeitures such that expenses are recorded only for those share-based awards that are expected to vest. |
Employee Benefits | (w) Employee Benefits The Company’s subsidiaries, VIEs and VIE subsidiaries established in the PRC participate in a government-mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in mainland China to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. The fair value of the employee benefits liabilities approximates their carrying value due to the short-term nature of these liabilities. The employee benefits payable amounts to RMB1,394, RMB2,244 and RMB2,709 as of December 31, 2015, 2016 and 2017, respectively. Employee social benefits included as expenses in the accompanying consolidated statements of operations and comprehensive loss amounted to RMB26,221, RMB49,557 and RMB66,511 for the years ended December 31, 2015, 2016 and 2017, respectively. |
Non-controlling Interests | (x) Non-controlling The non-controlling Non-controlling non-controlling |
Income Tax | (y) Income Tax Current income taxes are provided on the basis of net income (loss) for financial reporting purposes and adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred tax assets and liabilities are recognized for the tax effects of temporary differences and are determined by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse to the temporary differences between the financial statements’ carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to reduce the amount of deferred tax assets if based on the weight of available evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes arising from a change in tax rates is recognized in the consolidated statements of operations and comprehensive loss in the period of change. The Group applies a “more likely than not” recognition threshold in the evaluation of uncertain tax positions. The Company recognizes the benefit of a tax position in its consolidated financial statements if the tax position is more likely than not to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to uncertain tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. |
Comprehensive Loss | (z) Comprehensive Loss Comprehensive loss is defined to include all changes in deficit of the Group during a period arising from transactions and other events and circumstances other than those resulting from investments by shareholders and distributions to shareholders. For the years ended December 31, 2015, 2016 and 2017, the Group’s comprehensive loss included net loss and foreign currency translation adjustments. |
Loss per Share | (aa) Loss per Share Basic loss per share is computed by dividing net loss attributable to holders of ordinary shares, considering the accretions to redemption value of the preferred shares, by the weighted average number of ordinary shares outstanding during the period using the two-class two-class if-converted |
Segment Reporting | (bb) Segment Reporting The Group provided various services to its customers, commercial companies and also government agencies or state-owned entities, including keyword bidding, graphical and non-graphical |
Statutory Reserves | (cc) Statutory Reserves The Group’s subsidiaries, VIEs and VIE subsidiaries established in the PRC are required to make appropriations to certain non-distributable In accordance with PRC laws applicable to foreign investment enterprises (“FIE”) established in the PRC, the Company’s subsidiaries registered as wholly foreign owned enterprise have to make appropriations from their after-tax non-distributable after-tax In addition, in accordance with the Company Law of the People’s Republic of China, the VIEs and VIE subsidiaries, registered as Chinese domestic companies, must make appropriations from their after-tax non-distributable after-tax The Group has made no appropriations to statutory surplus fund and other reserve funds for the years ended December 31, 2015, 2016 and 2017 as the Company’s subsidiaries, VIEs and VIE subsidiaries in the PRC were in accumulated loss positions. The general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective company. The staff bonus and welfare fund is liability in nature and is restricted to make payment of special bonuses to employees and for the collective welfare of employees. None of these reserves is allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except under liquidation. |
Recent Accounting Pronouncements | (dd) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, The Group has completed its analysis of Topic 606 and has concluded that the measurement of revenue and the timing of recognizing revenue is not expected to change, except for the variable consideration related to performance based revenue. The Group has adopted Topic 606 on January 1, 2018 using the modified retrospective method. The Group used most likely amount method to estimate variable consideration related to performance based revenue at inception of the contract. Based on the analysis, the Company identified approximately RMB5.9 million cumulative catch-up In November 2015, the FASB issued ASU No. 2015-17, non-current In February 2016, the FASB issued ASU No. 2016-02, right-of-use No. 2016-02 non-public On August 6, 2016, the FASB issued ASU 2016-15, “Statement In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-01, “Business In January 2017 the FASB issued ASU No. 2017-04, 2017-04 In May 2017, the FASB issued ASU No. 2017-09, 2017-09 In June 2018, the FASB issued ASU No. 2018-07 |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Company's Operating Subsidiaries, Operating VIE and Operating VIE Subsidiaries | The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIE subsidiaries. As of December 31, 2017, the Company’s operating subsidiaries, operating VIE and operating VIE subsidiaries were as follows: Operating Subsidiaries Equity interests held Place and Date of Incorporation Gridsum Holding (China) Limited 100 % Hong Kong, July 2014 Dissector (Beijing) Technology Co., Ltd. 100 % PRC, October 2014 Operating VIE Economic interests held Place and Date of Incorporation Gridsum Holding (Beijing) Co., Ltd 100 % PRC, August 2014 Operating VIE Subsidiaries Economic interests held Place and Date of Incorporation Beijing Gridsum Technology Co., Ltd. 100 % PRC, December 2005 Beijing Moment Everlasting Ad Co., Ltd. 100 % PRC, January 2011 Guoxinjunhe (Beijing) Technology Co., Ltd. 100 % PRC, April 2012 Beijing Yunyang Ad Co., Ltd. 100 % PRC, March 2013 Beijing Guoxinwangyan Technology Co., Ltd. 80 % PRC, August 2015 Beijing Gridsum Yizhun Technology Co., Ltd. 100 % PRC, February 2016 Beijing Zhixunyilong Software Co., Ltd. 100 % PRC, May 2017 Beijing Gridsum Wang’an Technology Co., Ltd. 100 % PRC, June 2017 Beijing Hainatianchuang Technology Development Co., Ltd. 51 % PRC, August 2017 |
Consolidated Financial Information of VIEs and VIE Subsidiaries including Inter-Group Transactions with Other Entities in Group | The consolidated financial information of the VIEs and VIE subsidiaries, including the inter-group transactions with other entities in the Group, has been included in the accompanying consolidated financial statements of the Group as follows: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Total assets 584,080 672,499 1,054,865 Total liabilities 580,242 570,740 996,074 For the year ended December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Net revenues 290,403 533,681 558,393 Net income 24,060 105,597 160,550 For the year ended December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Net cash provided by/(used in) operating activities 142,418 (109,839 ) (148,018 ) Net cash used in investing activities (23,454 ) (45,968 ) (22,920 ) Net cash (used in)/provided by financing activities (4,000 ) 62,151 201,019 |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Amounts of Corrections in Consolidated Financial Statements | The amounts of the adjustments to the line items of the financial statements for 2015 and 2016 are shown in the Restatement Adjustment columns in the tables below. For the Year Ended December 31, 2015 Consolidated Statements of Comprehensive Loss As previously reported Restatement As revised Revenues 237,624 (2,335 ) 235,289 Less: Business tax and surcharges (2,785 ) (307 ) (3,092 ) Net revenues 234,839 (2,642 ) 232,197 Cost of revenues (35,237 ) 1,845 (33,392 ) Total operating expenses (245,274 ) (1,463 ) (246,737 ) Loss from operations (45,672 ) (2,260 ) (47,932 ) Net loss for the year (48,835 ) (12,938 ) (61,773 ) Net loss attributable to Gridsum’s ordinary shareholders (85,168 ) (12,938 ) (98,106 ) Net loss per share attributable to Gridsum’s ordinary shareholders, basic and diluted (8.52 ) (1.29 ) (9.81 ) As of December 31, 2015 Consolidated Balance sheets As previously reported Restatement As revised Accounts receivable, net 279,537 (6,001 ) 273,536 Prepayment and other current assets 107,046 (1,659 ) 105,387 Total current assets 585,106 (7,660 ) 577,446 Total assets 625,907 (7,661 ) 618,246 Accounts payable 103,289 (3,730 ) 99,559 Taxes payable 16,484 9,628 26,112 Deferred revenue 31,308 (12,940 ) 18,368 Advance from customers 104,605 8,177 112,782 Accrued expenses and other current liabilities 70,908 (3,616 ) 67,292 Total current liabilities 360,133 (2,481 ) 357,652 Total liabilities 360,133 (2,481 ) 357,652 Accumulated other comprehensive loss (19,052 ) 42 (19,010 ) Accumulated deficit (191,644 ) (5,222 ) (196,866 ) Total Gridsum’s shareholders’ equity (210,628 ) (5,180 ) (215,808 ) Total equity (210,244 ) (5,180 ) (215,424 ) For the Year Ended December 31, 2016 Consolidated Statements of Comprehensive Loss As previously reported Restatement As revised Revenues 409,371 (37,493 ) 371,878 Less: Business tax and surcharges (9,112 ) 1,057 (8,055 ) Net revenues 400,259 (36,436 ) 363,823 Cost of revenues (53,487 ) (2,220 ) (55,707 ) Gross profit 346,772 (38,656 ) 308,116 Total operating expenses (383,522 ) (4,754 ) (388,276 ) Loss from operations (36,750 ) (43,410 ) (80,160 ) Foreign exchange gain or loss (829 ) (771 ) (1,600 ) Other expenses (1,780 ) (286 ) (2,066 ) Income tax expense (28,387 ) 13,586 (14,801 ) Net loss for the year (67,746 ) (30,881 ) (98,627 ) Net loss attributable to Gridsum’s ordinary shareholders (97,396 ) (30,893 ) (128,289 ) Net loss per share attributable to Gridsum’s ordinary shareholders, basic and diluted (6.47 ) (2.05 ) (8.52 ) As of December 31, 2016 Consolidated Balance sheets As previously reported Restatement As revised Cash and cash equivalents 524,454 (4,002 ) 520,452 Restricted cash — 4,002 4,002 Accounts receivable 412,301 (56,421 ) 355,880 Prepayments and other current assets 160,087 29,653 189,740 Total current assets 1,166,272 (26,768 ) 1,139,504 Fixed assets, net 56,107 (3,489 ) 52,618 Intangible assets — 5,313 5,313 Deferred tax assets — 7,118 7,118 Other non-current 3,947 — 3,947 Total non-current 60,054 8,942 68,996 Total assets 1,226,326 (17,826 ) 1,208,500 Short-term loans 65,093 (93 ) 65,000 Accounts payable 12,150 37,414 49,564 Salary and welfare payables 54,779 (11,959 ) 42,820 Taxes payable 66,589 262 66,851 Deferred revenue 50,110 (29,053 ) 21,057 Advance from customers 106,570 2,811 109,381 Accrued expenses and other current liabilities 58,473 18,105 76,578 Total current liabilities 413,764 17,487 431,251 Total liabilities 413,764 17,487 431,251 Statutory reserve — 6,662 6,662 Accumulated other comprehensive loss (10,879 ) 792 (10,087 ) Accumulated deficit (268,081 ) (42,766 ) (310,847 ) Total Gridsum’s shareholders’ equity 812,231 (35,313 ) 776,918 Total Equity 812,562 (35,313 ) 777,249 |
Estimated Useful Lives of Property, Equipment and Software, Net | The estimated useful lives are as follows: Computers 3 years Furniture, fixtures and equipment 5 years Vehicles 5 years Leasehold improvements Over the shorter of lease terms or the estimated useful lives of assets |
Estimated Economic Lives of Intangible Assets with Finite Useful Life | The estimated economic lives are as follows: Software and other intangible assets 3 -5 Acquired customer relationship 10 years |
Concentration and Risks (Tables
Concentration and Risks (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable | Credit Concentration Risk | |
Schedule of Concentration and Risks | Customers with a receivable balance exceeding 10% of the total accounts receivable balance, net of allowance for doubtful accounts, as of December 31, 2015, 2016 and 2017, are listed as follows: December 31, 2015 December 31, 2016 December 31, 2017 (Restated) (Restated) Customer A 32.5 % 21.8 % 25.9 % |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Accounts Receivable | The following summarizes the Group’s accounts receivable as of December 31, 2015, 2016 and 2017: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Accounts receivable 274,800 376,839 644,729 Less: Allowance for doubtful accounts (1,264 ) (20,959 ) (45,449 ) Accounts receivable, net 273,536 355,880 599,280 |
Allowance for Doubtful Accounts | The following table sets out the movements of the allowance for doubtful accounts for the years ended December 31, 2015, 2016 and 2017: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Balance at beginning of the year (92 ) (1,264 ) (20,959 ) Charged to costs and expenses (1,172 ) (19,695 ) (24,490 ) Balance at end of the year (1,264 ) (20,959 ) (45,449 ) |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Prepayments and Other Current Assets | The following is a summary of prepayments and other current assets: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Deposits to search engine service providers 83,463 93,374 170,403 Prepayments to suppliers 10,513 53,605 96,839 Advances to employees 3,451 14,617 12,372 Prepaid rental and other deposits 7,219 10,846 12,598 Penalty receivable from customer — 15,676 257 Receivables in connection with exercise of option from agents — — 2,565 Others 741 1,622 11,058 Total 105,387 189,740 306,092 |
Property, Equipment, net (Table
Property, Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Property and Equipment Net | The following is a summary of property, equipment, net: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Computers 36,343 65,851 73,292 Furniture, fixtures and equipment 3,505 3,640 4,072 Vehicles 1,833 3,770 3,772 Leasehold improvements 16,341 23,200 42,593 Total 58,022 96,461 123,729 Less: accumulated depreciation and amortization (22,182 ) (43,843 ) (72,856 ) Property, equipment, net 35,840 52,618 50,873 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Intangible Assets | The following is a summary of intangible assets, net: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Acquired Software and other intangible assets 442 5,524 11,051 Customer relationship — — 677 Less: accumulated depreciation and amortization (40 ) (211 ) (2,302 ) Intangible Assets, net 402 5,313 9,426 |
Schedule of Expected Future Amortization Expense | Expected Future Amortization Expense Twelve months ended December 31, 2018 2,513 2019 2,503 2020 1,530 2021 773 2022 773 Thereafter 1,334 Total expected future amortization expense 9,426 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Accrued Expenses and Other Current Liabilities | The following is a summary of accrued expenses and other current liabilities: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Customer deposits 48,218 40,928 26,445 Accrued expenses 14,585 31,644 57,685 Accrued property, equipment and software related payables 3,866 3,397 2,706 Others 623 609 3,885 Total 67,292 76,578 90,721 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Component of Income Tax Expenses | The following table sets forth the component of income tax expenses of the Group for the years ended December 31, 2015, 2016 and 2017: For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Current tax expenses 15,371 21,919 15,571 Deferred tax recovery — (7,118 ) (11,296 ) Income tax expenses 15,371 (14,801 ) (4,275 ) |
Reconciliation of Differences Between Statutory Tax Rate and Effective Tax Rate | Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2015, 2016 and 2017 is as follows: For the year ended December 31, 2015 2016 2017 % % % (Restated) (Restated) PRC statutory tax rate 25.0 25.0 25.0 Effect of overseas tax-exempt (13.7 ) (59.4 ) (15.5 ) Effect of tax holidays 6.3 16.9 (3.1 ) Effect of lower tax rate entities (0.5 ) (0.2 ) (0.1 ) Permanent book-tax (17.1 ) 1.6 (0.5 ) Changes in valuation allowance (33.1 ) (0.7 ) (4.3 ) Change of tax rate — (0.7 ) (3.0 ) Withholding tax — (0.2 ) (0.3 ) Effective tax rate (33.1 ) (17.7 ) (1.8 ) |
Schedule Deferred Tax Assets and Liabilities | The following table sets forth the significant components of the aggregate deferred tax assets and liabilities: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Deferred tax assets Education expense 150 49 10 Advertising expense — — 179 Provision for bad debt 293 3,148 7,186 Accrued expense 216 253 159 Charitable donation — — 910 Capitalized R&D in PRC tax return 5,641 6,123 13,160 Intangible assets under PRC Law 794 1,218 1,364 Loss carry-forward 15,207 19,236 28,747 Total deferred tax assets 22,301 30,027 51,715 Less: Valuation allowance 22,301 22,909 33,323 Total deferred tax assets, net — 7,118 18,392 Deferred tax liabilities — — — Intangible assets from acquisitions — — 249 Total deferred tax liabilities, net — — 249 |
Changes in Valuation Allowance | The changes in valuation allowance for the years ended December 31, 2015, 2016 and 2017 are as follows: As of December 31, 2015 2016 2017 RMB RMB RMB (Restated) (Restated) Balance at beginning of the year 19,249 22,301 22,909 Provision 3,052 608 10,414 Balance at end of the year 22,301 22,909 33,323 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Changes of Convertible Redeemable Preferred Shares | The following table sets forth the changes of each of the convertible redeemable preferred shares for the years ended December 31, 2015, 2016 and 2017: Series A Preferred Shares Series A-1 Preferred Shares Series B Preferred Shares Series C Preferred Shares Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Total Amount RMB RMB RMB RMB RMB As of December 31, 2015 3,125,000 40,181 1,302,084 28,492 2,962,239 126,641 4,640,843 280,704 476,018 Accretion — 1,033 — 830 — 6,573 — 8,289 16,725 Accumulated other comprehensive income — 1,226 — 870 — 3,910 — 8,578 14,584 Conversion to Class B ordinary shares (3,125,000 ) (42,440 ) (1,302,084 ) (30,192 ) (2,962,239 ) (137,124 ) (4,640,843 ) (297,571 ) (507,327 ) As of December 31, 2016 — — — — — — — — — As of December 31, 2017 — — — — — — — — — |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Assumptions Used for Calculating Fair Value of Stock Options Granted | The fair value of each option grant is estimated on the date of grant with the following assumptions: For the year ended December 31, 2015 2016 2017 Exercise price US$0.42 — US$10.11 Risk free rate of interest 2.59%-2.95% — 3.14% Dividend yield — — — Life of option (years) 10 — 10 Volatility 46%-49% — 46% |
Summary of Stock Option Activity | A summary of the Group’s stock option activities for the years ended December 31, 2015, 2016 and 2017 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life In Aggregate Intrinsic Value Outstanding as of December 31, 2014 2,192,161 $ 0.42 7.98 16,471 Granted 331,000 $ 0.42 — — Forfeited/expired (24,000 ) $ 0.42 — — Outstanding as of December 31, 2015 2,499,161 $ 0.42 7.28 28,540 Granted — — — — Forfeited/expired (62,500 ) $ 0.42 — — Outstanding as of December 31, 2016 2,436,661 $ 0.42 6.24 34,423 Granted 1,320,000 $ 10.11 — — Forfeited/expired (44,606 ) $ 0.42 — — Exercise (1,088,647 ) $ 0.42 — — Outstanding as of December 31, 2017 2,623,408 $ 5.48 7.15 25,781 Exercisable as of December 31, 2017 1,161,247 $ 0.42 5.20 11,412 |
Summary of Restricted Stock Activity | A summary of the Group’s restricted stock activity for the years ended December 31, 2015, 2016 and 2017 is presented below: Number of RSU Weighted Average Grant date Outstanding as of December 31, 2016 — $ — Awarded 936,999 $ 9.75 Vested (300 ) $ 11.24 Outstanding as of December 31, 2017 936,699 $ 9.75 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Purchase Price Allocation to Assets Acquired and Liabilities Assumed | as of the acquisition date. The purchase price allocation to assets acquired and liabilities assumed as of the date of acquisition was as follows: May 31, RMB Cash acquired 643 Prepayment, deposit and other assets 335 Property, equipment and software, net 888 Customer relationship 677 Accrued expense, other payable and other current liabilities (309 ) Deferred tax liability (271 ) Goodwill 537 Total 2,500 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Earnings Per Share | The following table sets forth the basic and diluted net loss per share computation and provides a reconciliation of the numerator and denominator for the periods presented: For the year ended December 31, 2015 2016 2017 Numerator: RMB RMB RMB Net loss attributable to Gridsum Holding Inc. (61,757 ) (98,574 ) (238,996 ) Accretion to convertible redeemable preferred share redemption value—A (1,286 ) (1,033 ) — Accretion to convertible redeemable preferred share redemption value—A-1 (1,029 ) (830 ) — Accretion to convertible redeemable preferred share redemption value—B (7,945 ) (6,573 ) — Accretion to convertible redeemable preferred share redemption value—C (9,447 ) (8,289 ) — Cumulative dividend to convertible redeemable preferred shareholders—A (3,297 ) (2,571 ) — Cumulative dividend to convertible redeemable preferred shareholders—A-1 (2,355 ) (1,837 ) — Cumulative dividend to convertible redeemable preferred shareholders—B (10,990 ) (8,582 ) — Numerator for basic and diluted net loss per share (98,106 ) (128,289 ) (238,996 ) Denominator: Weighted average number of ordinary shares outstanding, basic and diluted 10,000,000 15,054,865 30,243,250 Net loss per share attributable to Gridsum’s ordinary shareholders—Basic and diluted (9.81 ) (8.52 ) (7.90 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Future Minimum Lease under Non-Cancelable Operating Lease and Other Agreements | As of December 31, 2017, future minimum lease under non-cancelable Rental commitments Other commitments Total RMB RMB RMB 2018 25,792 10,080 35,872 2019 8,242 9,398 17,640 2020 2,748 6,835 9,583 2021 and thereafter 1,380 3,992 5,372 38,162 30,305 68,467 |
ADDITIONAL INFORMATION_ CONDE_2
ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Balance Sheets of Parent Company | Condensed Balance Sheets of Parent Company As of December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Restated) (Restated) ASSETS Current assets: Cash and cash equivalents 19,616 316,210 27,355 4,204 Amounts due from subsidiaries and VIEs 72,163 299,546 518,976 79,765 Prepayments and other current assets 3,701 3,187 7,085 1,089 Total current assets 95,480 618,943 553,416 85,058 Non-current Investment in subsidiaries and VIEs 164,983 170,509 — — Total non-current 164,983 170,509 — — Total assets 260,463 789,452 553,416 85,058 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY/(DEFICIT) Current liabilities: Accrued expenses and other current liabilities 253 12,534 19,728 3,032 Total current liabilities 253 12,534 19,728 3,032 Total liabilities 253 12,534 19,728 3,032 Commitments and contingencies Series A convertible preferred shares (US$0.001 par value; 3,125,000 shares authorized, issued and outstanding as of December 31, 2015; aggregate liquidation value of nil as of December 31, 2015, none issued and outstanding as of December 31, 2016 and 2017) 40,181 — — — Series A-1 28,492 — — — Series B convertible preferred shares (US$0.001 par value; 2,962,239 shares authorized, issued and outstanding as of December 31, 2015; aggregate liquidation value of nil as of December 31, 2015, none issued and outstanding as of December 31, 2016 and 2017) 126,641 — — — Series C convertible preferred shares (US$0.001 par value; 4,640,843 shares authorized, issued and outstanding as of December 31, 2015; aggregate liquidation value of nil as of December 31, 2015, none issued and outstanding as of December 31, 2016 and 2017) 280,704 — — — Total mezzanine equity 476,018 — — — Shareholders’ equity/(deficit): Ordinary shares—Class A (US$0.001 par value; 20,000,000 shares authorized, 4,543,461 shares issued and outstanding as of December 31, 2016 and 2017, respectively) 31 31 31 5 Ordinary shares—Class B (US$0.001 par value; 180,000,000 shares authorized, 25,191,705 and 26,280,367 shares, issued and outstanding as of December 31, 2016 and 2017, respectively) 37 168 176 27 Additional paid-in — 1,090,991 1,107,201 170,174 Statutory Reserve — 6,662 6,730 1,034 Accumulated other comprehensive loss (19,010 ) (10,087 ) (30,539 ) (4,694 ) Accumulated deficit (196,866 ) (310,847 ) (549,911 ) (84,520 ) Gridsum’s shareholders’ equity/(deficit) (215,808 ) 776,918 533,688 82,026 Total liabilities, mezzanine equity and shareholders’ equity/(deficit) 260,463 789,452 553,416 85,058 |
Condensed Statements of Operations and Comprehensive Loss of Parent Company | Condensed Statements of Operations and Comprehensive Loss of Parent Company For the year ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Restated) (Restated) Revenues — — — — Cost of revenues — — — — Gross profit — — — — Operating expenses: Sales and marketing expenses — — — — Research and development expenses — — — — General and administrative expenses (565 ) (802 ) (872 ) (134 ) Total operating expenses (565 ) (802 ) — — Loss from operations (565 ) (802 ) (872 ) (134 ) Loss from subsidiaries and VIEs (61,192 ) (97,772 ) (238,124 ) (36,599 ) Net loss (61,757 ) (98,574 ) (238,996 ) (36,733 ) Accretions to preferred shares redemption value (19,707 ) (16,725 ) — — Cumulative dividend to preferred shareholders (16,642 ) (12,990 ) — — Net loss attributable to Gridsum’s ordinary shareholders (98,106 ) (128,289 ) (238,996 ) (36,733 ) Comprehensive loss (81,103 ) (89,704 ) (259,576 ) (39,896 ) |
Condensed Statements of Cash Flows of Parent Company | Condensed Statements of Cash Flows of Parent Company For the Year Ended December 31, 2015 2016 2017 2017 RMB (Restated) RMB (Restated) RMB US$ Cash flows from operating activities: Net cash used in operating activities (56,436 ) (188,097 ) 2,424 373 Cash Flows from investing activities: Investment of subsidiaries and VIEs (185,448 ) (103,298 ) (291,008 ) (44,727 ) Net cash used in investing activities (185,448 ) (103,298 ) (291,008 ) (44,727 ) Cash flows from financing activities: Proceeds from issuance of Series C preferred shares 262,561 — — — Proceeds from issuance of ordinary shares — 615,032 3,091 475 Payment of financing costs in connection with the issuance of Series C preferred shares (1,061 ) — — — Payment for IPO costs — (27,043 ) (3,362 ) (517 ) Net cash provided by financing activities 261,500 587,989 (271 ) (42 ) Net increase in cash and cash equivalents 19,616 296,594 (288,855 ) (44,396 ) Cash and cash equivalents at the beginning of the year — 19,616 316,210 48,600 Cash and cash equivalents at the end of the year 19,616 316,210 27,355 4,204 Supplemental schedule of non-cash Accretions to preferred shares redemption value 19,707 16,725 — — |
Organization and Principal Ac_3
Organization and Principal Activities - Company's Operating Subsidiaries, Operating VIE and Operating VIE Subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Gridsum Holding (China) Limited | Operating Subsidiaries | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | Hong Kong |
Date of Incorporation | 2014-07 |
Dissector (Beijing) Technology Co., Ltd. | Operating Subsidiaries | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2014-10 |
Gridsum Holding (Beijing) Co., Ltd. | Operating VIE | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2014-08 |
Beijing Gridsum Technology Co., Ltd. | Operating VIE Subsidiaries | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2005-12 |
Beijing Moment Everlasting Ad Co., Ltd. | Operating VIE Subsidiaries | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2011-01 |
Guoxinjunhe (Beijing) Technology Co., Ltd. | Operating VIE Subsidiaries | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2012-04 |
Beijing Yunyang Ad Co., Ltd. | Operating VIE Subsidiaries | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2013-03 |
Beijing Guoxinwangyan Technology Co., Ltd. | Operating VIE Subsidiaries | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 80.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2015-08 |
Beijing Gridsum Yizhun Technology Co., Ltd | Operating VIE Subsidiaries | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2016-02 |
Beijing Zhixunyilong Software Co., Ltd. | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2017-05 |
Beijing Gridsum Wang'an Technology Co., Ltd. | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 100.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2017-06 |
Beijing Hainatianchuang Technology Development Co., Ltd. | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity/Economic interests held | 51.00% |
Place of Incorporation | PRC |
Date of Incorporation | 2017-08 |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Detail) ¥ / shares in Units, $ in Thousands | May 05, 2018USD ($) | Oct. 03, 2016USD ($)shares | Dec. 22, 2014CNY (¥)¥ / shares | Dec. 31, 2017CNY (¥)Subsidiary | Dec. 31, 2017USD ($)Subsidiary | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | ||||||||
Number of wholly owned subsidiaries | Subsidiary | 2 | 2 | ||||||
Accumulated losses from operation | ¥ 549,911,000 | ¥ 310,847,000 | ¥ 196,866,000 | $ 84,520 | ||||
Net cash (used in)/provided by operating activities | ¥ (306,704,000) | $ (47,141) | (235,177,000) | (97,377,000) | ||||
IPO [Member] | American Depositary Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
American Depositary Shares issued | shares | 7,705,000 | |||||||
Initial offering period | The Company completed its initial public offering ("IPO") on September 23, 2016 on the NASDAQ Global Select Market and the underwriters subsequently exercised their over-allotment option on October 3, 2016. | The Company completed its initial public offering ("IPO") on September 23, 2016 on the NASDAQ Global Select Market and the underwriters subsequently exercised their over-allotment option on October 3, 2016. | ||||||
Proceeds from issuance of American Depositary Shares | $ | $ 87,100 | |||||||
IPO [Member] | American Depositary Shares | Class B Ordinary Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of common stock issuable on conversion | shares | 1 | |||||||
Variable Interest Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Registered capital of the VIEs and VIE subsidiaries | ¥ 146,000,000 | 124,000,000 | 124,000,000 | |||||
Assets in the consolidated VIEs | ¥ 0 | ¥ 0 | ¥ 0 | |||||
Exclusive Business Cooperation Agreement | Gridsum PRC Holding | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of net income as service fee | 90.00% | |||||||
Agreement term | 10 years | |||||||
Notice period for agreement termination | 30 days | |||||||
Exclusive Option Agreement | Gridsum PRC Holding | ||||||||
Related Party Transaction [Line Items] | ||||||||
Agreement term | 10 years | |||||||
Equity interest purchase price, per share | ¥ / shares | ¥ 10 | |||||||
Exclusive Option Agreement | Gridsum PRC Holding | Maximum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Material contract, value | ¥ 1,000,000,000 | |||||||
Restructuring Plan 2010 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership Interest | 100.00% | 100.00% | ||||||
Subsequent Event | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceeds from convertible note issuance | $ | $ 40,000 |
Organization and Principal Ac_5
Organization and Principal Activities - Consolidated Financial Information of VIEs and VIE Subsidiaries including Inter-Group Transactions with Other Entities in Group (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | |||||
Total assets | ¥ 1,403,097 | ¥ 1,208,500 | ¥ 618,246 | $ 215,653 | |
Total liabilities | 859,406 | 431,251 | 357,652 | $ 132,090 | |
Net revenues | 469,533 | $ 72,166 | 363,823 | 232,197 | |
Net income | (239,124) | $ (36,753) | (98,627) | (61,773) | |
Variable Interest Entity | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 1,054,865 | 672,499 | 584,080 | ||
Total liabilities | 996,074 | 570,740 | 580,242 | ||
Net revenues | 558,393 | 533,681 | 290,403 | ||
Net income | 160,550 | 105,597 | 24,060 | ||
Net cash provided by/(used in) operating activities | (148,018) | (109,839) | 142,418 | ||
Net cash used in investing activities | (22,920) | (45,968) | (23,454) | ||
Net cash (used in)/provided by financing activities | ¥ 201,019 | ¥ 62,151 | ¥ (4,000) |
Principal Accounting Policies -
Principal Accounting Policies - Additional Information (Detail) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥)Segment¥ / $ | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2018¥ / $ |
Significant Accounting Policies [Line Items] | |||||
Revenue decrease as a result of a change in revenue recognition method | ¥ (42,100,000) | ||||
Revenue increase due to a cutoff adjustment, and by an adjustment related to business tax and surcharges | 6,000,000 | ||||
Net revenue reduction | (36,400,000) | ||||
Accounts receivable decrease | (56,400,000) | ||||
Accounts payable increase, in order to reconcile its accounting to that of its main media partners for SEM solutions | 37,400,000 | ||||
Decrease in deferred revenue due to reclassification changes and associated adjustments to accounts receivable and deferred revenue balances | (29,100,000) | ||||
Exchange rate used for conversion of financial statements from RMB to US dollar | ¥ / $ | 6.5063 | ||||
Property, plant and equipment, residual value, percentage | 5.00% | ||||
Impairment loss of intangible assets | ¥ 0 | 0 | ¥ 0 | ||
Goodwill impairment loss | 0 | ||||
Marketing expense | 14,886,000 | 6,094,000 | 0 | ||
Employee social benefits included as expenses | ¥ 66,511,000 | 49,557,000 | 26,221,000 | ||
Number of operating segments | Segment | 1 | ||||
Percentage of after tax profits allocated to general reserve | 10.00% | ||||
Percentage of reserve fund to registered capital when appropriation not required | 50.00% | ||||
Subsequent Event | |||||
Significant Accounting Policies [Line Items] | |||||
Exchange rate used for conversion of financial statements from RMB to US dollar | ¥ / $ | 6.8755 | ||||
Accounting Standards Update 2014-09 | Subsequent Event | |||||
Significant Accounting Policies [Line Items] | |||||
Cumulative catch-up adjustment to retained earnings | ¥ 5,900,000 | ||||
Customer Relationship | |||||
Significant Accounting Policies [Line Items] | |||||
Finite-lived intangible assets, estimated useful life | 10 years | ||||
Variable Interest Entity | |||||
Significant Accounting Policies [Line Items] | |||||
Employee benefits payable | ¥ 2,709,000 | ¥ 2,244,000 | ¥ 1,394,000 | ||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Original maturity period, demand deposit | 1 year | ||||
Maximum | Software and Other Intangible Assets | |||||
Significant Accounting Policies [Line Items] | |||||
Finite-lived intangible assets, estimated useful life | 5 years | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Original maturity period, demand deposit | 3 months | ||||
Minimum | Software and Other Intangible Assets | |||||
Significant Accounting Policies [Line Items] | |||||
Finite-lived intangible assets, estimated useful life | 3 years |
Principal Accounting Policies_3
Principal Accounting Policies - Schedule of Amounts of Corrections in Consolidated Financial Statements (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016CNY (¥)¥ / shares | Dec. 31, 2015CNY (¥)¥ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014CNY (¥) | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||||||
Revenues | ¥ 371,878 | ¥ 235,289 | ||||||
Less: Business tax and surcharges | ¥ (9,696) | $ (1,490) | (8,055) | (3,092) | ||||
Net revenues | 469,533 | 72,166 | 363,823 | 232,197 | ||||
Cost of revenues | [1] | (94,640) | (14,546) | (55,707) | (33,392) | |||
Gross profit | 374,893 | 57,620 | 308,116 | 198,805 | ||||
Total operating expenses | [1] | (594,077) | (91,308) | (388,276) | (246,737) | |||
Loss from operations | (219,184) | (33,688) | (80,160) | (47,932) | ||||
Foreign exchange gain or loss | (8,552) | (1,314) | (1,600) | 1,339 | ||||
Other expenses | (2,066) | |||||||
Income tax expense | (4,275) | (657) | (14,801) | (15,371) | ||||
Net loss | (239,124) | (36,753) | (98,627) | (61,773) | ||||
Net loss attributable to Gridsum's ordinary shareholders | ¥ (238,996) | $ (36,733) | ¥ (128,289) | ¥ (98,106) | ||||
Net loss per share attributable to Gridsum's ordinary shareholders, basic and diluted | (per share) | ¥ (7.90) | $ (1.21) | ¥ (8.52) | ¥ (9.81) | ||||
Cash and cash equivalents | ¥ 166,690 | ¥ 520,452 | ¥ 198,523 | $ 25,620 | $ 79,992 | ¥ 61,830 | ||
Restricted cash | 245,320 | 4,002 | 37,705 | |||||
Accounts receivable | 599,280 | 355,880 | 273,536 | 92,108 | ||||
Prepayments and other current assets | 306,092 | 189,740 | 105,387 | 47,045 | ||||
Total current assets | 1,323,382 | 1,139,504 | 577,446 | 203,400 | ||||
Fixed assets, net | 50,873 | 52,618 | 35,840 | 7,819 | ||||
Intangible assets | 9,426 | 5,313 | 402 | 1,449 | ||||
Deferred tax assets | 18,392 | 7,118 | 2,827 | |||||
Other non-current assets | 487 | 3,947 | 4,558 | 75 | ||||
Total non-current assets | 79,715 | 68,996 | 40,800 | 12,253 | ||||
Total assets | 1,403,097 | 1,208,500 | 618,246 | 215,653 | ||||
Short-term loans | 266,019 | 65,000 | 0 | 40,886 | ||||
Accounts payable | 208,152 | 49,564 | 99,559 | 31,994 | ||||
Salary and welfare payables | 60,696 | 42,820 | 33,539 | 9,329 | ||||
Taxes payable | 103,331 | 66,851 | 26,112 | 15,882 | ||||
Deferred revenue | 13,391 | 21,057 | 18,368 | 2,058 | ||||
Advance from customers | 116,847 | 109,381 | 112,782 | 17,959 | ||||
Accrued expenses and other current liabilities | 90,721 | 76,578 | 67,292 | 13,944 | ||||
Total current liabilities | 859,157 | 431,251 | 357,652 | 132,052 | ||||
Total liabilities | 859,406 | 431,251 | 357,652 | 132,090 | ||||
Statutory Reserve | 6,730 | 6,662 | 0 | 1,034 | ||||
Accumulated other comprehensive loss | (30,539) | (10,087) | (19,010) | (4,694) | ||||
Accumulated deficit | (549,911) | (310,847) | (196,866) | (84,520) | ||||
Total Gridsum's shareholders' equity | 533,688 | 776,918 | (215,808) | 82,026 | ||||
Total equity | ¥ 543,691 | 777,249 | (215,424) | $ 83,563 | ¥ (123,820) | |||
As Previously Reported | ||||||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||||||
Revenues | 409,371 | 237,624 | ||||||
Less: Business tax and surcharges | (9,112) | (2,785) | ||||||
Net revenues | 400,259 | 234,839 | ||||||
Cost of revenues | (53,487) | (35,237) | ||||||
Gross profit | 346,772 | |||||||
Total operating expenses | (383,522) | (245,274) | ||||||
Loss from operations | (36,750) | (45,672) | ||||||
Foreign exchange gain or loss | (829) | |||||||
Other expenses | (1,780) | |||||||
Income tax expense | (28,387) | |||||||
Net loss | (67,746) | (48,835) | ||||||
Net loss attributable to Gridsum's ordinary shareholders | ¥ (97,396) | ¥ (85,168) | ||||||
Net loss per share attributable to Gridsum's ordinary shareholders, basic and diluted | ¥ / shares | ¥ (6.47) | ¥ (8.52) | ||||||
Cash and cash equivalents | ¥ 524,454 | |||||||
Accounts receivable | 412,301 | ¥ 279,537 | ||||||
Prepayments and other current assets | 160,087 | 107,046 | ||||||
Total current assets | 1,166,272 | 585,106 | ||||||
Fixed assets, net | 56,107 | |||||||
Other non-current assets | 3,947 | |||||||
Total non-current assets | 60,054 | |||||||
Total assets | 1,226,326 | 625,907 | ||||||
Short-term loans | 65,093 | |||||||
Accounts payable | 12,150 | 103,289 | ||||||
Salary and welfare payables | 54,779 | |||||||
Taxes payable | 66,589 | 16,484 | ||||||
Deferred revenue | 50,110 | 31,308 | ||||||
Advance from customers | 106,570 | 104,605 | ||||||
Accrued expenses and other current liabilities | 58,473 | 70,908 | ||||||
Total current liabilities | 413,764 | 360,133 | ||||||
Total liabilities | 413,764 | 360,133 | ||||||
Accumulated other comprehensive loss | (10,879) | (19,052) | ||||||
Accumulated deficit | (268,081) | (191,644) | ||||||
Total Gridsum's shareholders' equity | 812,231 | (210,628) | ||||||
Total equity | 812,562 | (210,244) | ||||||
Restatement Adjustment | ||||||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||||||
Revenues | (37,493) | (2,335) | ||||||
Less: Business tax and surcharges | 1,057 | (307) | ||||||
Net revenues | (36,436) | (2,642) | ||||||
Cost of revenues | (2,220) | 1,845 | ||||||
Gross profit | (38,656) | |||||||
Total operating expenses | (4,754) | (1,463) | ||||||
Loss from operations | (43,410) | (2,260) | ||||||
Foreign exchange gain or loss | (771) | |||||||
Other expenses | (286) | |||||||
Income tax expense | 13,586 | |||||||
Net loss | (30,881) | (12,938) | ||||||
Net loss attributable to Gridsum's ordinary shareholders | ¥ (30,893) | ¥ (12,938) | ||||||
Net loss per share attributable to Gridsum's ordinary shareholders, basic and diluted | ¥ / shares | ¥ (2.05) | ¥ (1.29) | ||||||
Cash and cash equivalents | ¥ (4,002) | |||||||
Restricted cash | 4,002 | |||||||
Accounts receivable | (56,421) | ¥ (6,001) | ||||||
Prepayments and other current assets | 29,653 | (1,659) | ||||||
Total current assets | (26,768) | (7,660) | ||||||
Fixed assets, net | (3,489) | |||||||
Intangible assets | 5,313 | |||||||
Deferred tax assets | 7,118 | |||||||
Total non-current assets | 8,942 | |||||||
Total assets | (17,826) | (7,661) | ||||||
Short-term loans | (93) | |||||||
Accounts payable | 37,414 | (3,730) | ||||||
Salary and welfare payables | (11,959) | |||||||
Taxes payable | 262 | 9,628 | ||||||
Deferred revenue | (29,053) | (12,940) | ||||||
Advance from customers | 2,811 | 8,177 | ||||||
Accrued expenses and other current liabilities | 18,105 | (3,616) | ||||||
Total current liabilities | 17,487 | (2,481) | ||||||
Total liabilities | 17,487 | (2,481) | ||||||
Statutory Reserve | 6,662 | |||||||
Accumulated other comprehensive loss | 792 | 42 | ||||||
Accumulated deficit | (42,766) | (5,222) | ||||||
Total Gridsum's shareholders' equity | (35,313) | (5,180) | ||||||
Total equity | ¥ (35,313) | ¥ (5,180) | ||||||
[1] | Share-based compensation expenses were allocated in cost of revenues and operating expenses as follows: Cost of revenues 335 319 501 77 Sales and marketing expenses 1,651 2,252 4,739 728 Research and development expenses 3,347 3,955 8,641 1,328 General and administrative expenses 3,473 4,103 9,042 1,390 |
Principal Accounting Policies_4
Principal Accounting Policies - Estimated Useful Lives of Property, Equipment and Software, Net (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Computers | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture, Fixtures and Equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (description) | Over the shorter of lease terms or the estimated useful lives of assets |
Concentration and Risks - Princ
Concentration and Risks - Principal Accounting Policies - Schedule of Customers Accounted for More than 10% of Accounts Receivable (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Receivable | Credit Concentration Risk | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 25.90% | 21.80% | 32.50% |
Concentration and Risks - Addit
Concentration and Risks - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥)Customer | Dec. 31, 2016CNY (¥)Customer | Dec. 31, 2015CNY (¥)Customer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014CNY (¥) | |
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | ¥ 166,690 | ¥ 520,452 | ¥ 198,523 | $ 25,620 | $ 79,992 | ¥ 61,830 |
Currency Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Cash and cash equivalents | ¥ | ¥ 135,542 | ¥ 103,973 | ¥ 178,577 | |||
Customer Concentration Risk | Sales Revenue, Net | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of revenue accounted | 44.00% | 55.00% | 55.00% | |||
Number of customers | Customer | 20 | 20 | 20 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | ¥ 644,729 | ¥ 376,839 | ¥ 274,800 | ||
Less: Allowance for doubtful accounts | (45,449) | (20,959) | (1,264) | ¥ (92) | |
Accounts receivable, net | ¥ 599,280 | $ 92,108 | ¥ 355,880 | ¥ 273,536 |
Accounts Receivable, Net - Addi
Accounts Receivable, Net - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, net | ¥ 599,280 | $ 92,108 | ¥ 355,880 | ¥ 273,536 |
Trade Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, net | ¥ 449,411 | ¥ 280,866 | ¥ 231,734 |
Accounts Receivable, Net - Allo
Accounts Receivable, Net - Allowance for Doubtful Accounts (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at beginning of the year | ¥ (20,959) | ¥ (1,264) | ¥ (92) | |
Charged to costs and expenses | (24,490) | $ (3,764) | (19,695) | (1,172) |
Balance at end of the year | ¥ (45,449) | ¥ (20,959) | ¥ (1,264) |
Prepayments and Other Current_3
Prepayments and Other Current Assets - Summary of Prepayments and Other Current Assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Prepaid Expenses And Other Current Assets [Line Items] | ||||
Deposits to search engine service providers | ¥ 170,403 | ¥ 93,374 | ¥ 83,463 | |
Prepayments to suppliers | 96,839 | 53,605 | 10,513 | |
Advances to employees | 12,372 | 14,617 | 3,451 | |
Prepaid rental and other deposits | 12,598 | 10,846 | 7,219 | |
Penalty receivable from customer | 257 | 15,676 | ||
Receivables in connection with exercise of option from agents | 2,565 | |||
Others | 11,058 | 1,622 | 741 | |
Prepayments and other current assets | ¥ 306,092 | $ 47,045 | ¥ 189,740 | ¥ 105,387 |
Property, Equipment, net - Summ
Property, Equipment, net - Summary of Property and Equipment Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Property, Plant and Equipment [Line Items] | ||||
Property, equipment, gross | ¥ 123,729 | ¥ 96,461 | ¥ 58,022 | |
Less: accumulated depreciation and amortization | (72,856) | (43,843) | (22,182) | |
Property, equipment, net | 50,873 | $ 7,819 | 52,618 | 35,840 |
Computers | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, equipment, gross | 73,292 | 65,851 | 36,343 | |
Furniture, Fixtures and Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, equipment, gross | 4,072 | 3,640 | 3,505 | |
Vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, equipment, gross | 3,772 | 3,770 | 1,833 | |
Leasehold Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, equipment, gross | ¥ 42,593 | ¥ 23,200 | ¥ 16,341 |
Property, Equipment, net - Addi
Property, Equipment, net - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expenses | ¥ 29,858 | ¥ 23,722 | ¥ 13,069 |
Intangible Assets, net - Summar
Intangible Assets, net - Summary of Intangible Assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||
Less: accumulated depreciation and amortization | ¥ (2,302) | ¥ (211) | ¥ (40) |
Intangible Assets, net | 9,426 | 5,313 | 402 |
Software and Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets gross | 11,051 | ¥ 5,524 | ¥ 442 |
Customer Relationship | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets gross | ¥ 677 |
Intangible Assets, net - Additi
Intangible Assets, net - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | ¥ 1,616 | ¥ 171 | ¥ 31 |
Intangible Assets, net - Schedu
Intangible Assets, net - Schedule of Expected Future Amortization Expense (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||
Twelve months ended December 31, 2018 | ¥ 2,513 | ||
2,019 | 2,503 | ||
2,020 | 1,530 | ||
2,021 | 773 | ||
2,022 | 773 | ||
Thereafter | 1,334 | ||
Intangible Assets, net | ¥ 9,426 | ¥ 5,313 | ¥ 402 |
Short-term Bank Loans - Additio
Short-term Bank Loans - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Short-term Debt [Line Items] | ||||
Short-term bank loan | ¥ 266,019 | $ 40,886 | ¥ 65,000 | ¥ 0 |
Weighted average interest rate | 4.68% | 4.68% | 5.24% | 0.00% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Accrued Expenses and Other Current Liabilities [Line Items] | ||||
Customer deposits | ¥ 26,445 | ¥ 40,928 | ¥ 48,218 | |
Accrued expenses | 57,685 | 31,644 | 14,585 | |
Accrued property, equipment and software related payables | 2,706 | 3,397 | 3,866 | |
Others | 3,885 | 609 | 623 | |
Accrued expenses and other current liabilities | ¥ 90,721 | $ 13,944 | ¥ 76,578 | ¥ 67,292 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Income Taxes [Line Items] | ||||
VAT rate | 6.00% | |||
VAT payable | ¥ 32,413,000 | ¥ 19,620,000 | ¥ 8,166,000 | |
Income tax rate | (1.80%) | (17.70%) | (33.10%) | |
Statutory income tax rate | 25.00% | 25.00% | 25.00% | |
Minimum ownership percentage in foreign invested enterprise by foreign investor | 25.00% | |||
Retained earnings | ¥ (549,911,000) | ¥ (310,847,000) | ¥ (196,866,000) | $ (84,520) |
Net operating loss carryforwards, expiration beginning year | 2,018 | |||
Net operating loss carryforwards, expiration end year | 2,027 | |||
PRC Subsidiaries VIEs and VIEs Subsidiaries | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | ¥ 178,631,000 | |||
Hong Kong Subsidiary | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | ¥ 6,712,000 | |||
Hong Kong Subsidiary | Minimum | ||||
Income Taxes [Line Items] | ||||
Withholding income tax rate on dividends paid by FIE | 5.00% | |||
Gridsum PRC Holding | ||||
Income Taxes [Line Items] | ||||
Dividend withholding tax | ¥ 0 | |||
Retained earnings | ¥ 0 | |||
Hong Kong Inland Revenue Ordinance | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 16.50% | |||
PRC Corporate Income Tax Law | ||||
Income Taxes [Line Items] | ||||
Statutory income tax rate | 25.00% | |||
Withholding income tax rate on dividends distributed by FIE | 10.00% | |||
PRC Corporate Income Tax Law | Beijing Gridsum Technology Co., Ltd. and Guoxinjunhe (Beijing) Technology Co. | 2014 to 2019 | ||||
Income Taxes [Line Items] | ||||
Preferential enterprise income tax rate | 15.00% | |||
PRC Corporate Income Tax Law | Beijing Moment Everlasting Ad Co., Ltd. and Beijing Yunyang Advertisement Co., Ltd. | 2016 to 2018 | ||||
Income Taxes [Line Items] | ||||
Preferential enterprise income tax rate | 15.00% |
Taxation - Component of Income
Taxation - Component of Income Tax Expenses (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Income Taxes [Line Items] | ||||
Current tax expenses | ¥ 15,571 | ¥ 21,919 | ¥ 15,371 | |
Deferred tax recovery | (11,296) | $ (1,736) | (7,118) | |
Income tax expenses | ¥ 4,275 | $ 657 | ¥ 14,801 | ¥ 15,371 |
Taxation - Reconciliation of Di
Taxation - Reconciliation of Differences Between PRC Statutory Income Tax Rate and Group's Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Effect of overseas tax-exempt entities | (15.50%) | (59.40%) | (13.70%) |
Effect of tax holidays | (3.10%) | 16.90% | 6.30% |
Effect of lower tax rate entities | (0.10%) | (0.20%) | (0.50%) |
Permanent book-tax differences | (0.50%) | 1.60% | (17.10%) |
Changes in valuation allowance | (4.30%) | (0.70%) | (33.10%) |
Change of tax rate | (3.00%) | (0.70%) | |
Withholding tax | (0.30%) | (0.20%) | |
Effective tax rate | (1.80%) | (17.70%) | (33.10%) |
Taxation - Components of Aggreg
Taxation - Components of Aggregate Deferred Tax Assets and liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Deferred tax assets | |||||
Education expense | ¥ 10 | ¥ 49 | ¥ 150 | ||
Advertising expense | 179 | ||||
Provision for bad debt | 7,186 | 3,148 | 293 | ||
Accrued expense | 159 | 253 | 216 | ||
Charitable donation | 910 | ||||
Capitalized R&D in PRC tax return | 13,160 | 6,123 | 5,641 | ||
Intangible assets under PRC Law | 1,364 | 1,218 | 794 | ||
Loss carry-forward | 28,747 | 19,236 | 15,207 | ||
Total deferred tax assets | 51,715 | 30,027 | 22,301 | ||
Less: Valuation allowance | 33,323 | 22,909 | ¥ 22,301 | ¥ 19,249 | |
Total deferred tax assets, net | 18,392 | ¥ 7,118 | |||
Deferred tax liabilities | |||||
Intangible assets from acquisitions | 249 | ||||
Total deferred tax liabilities, net | ¥ 249 | $ 38 |
Taxation - Changes in Valuation
Taxation - Changes in Valuation Allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
Balance at beginning of the year | ¥ 22,909 | ¥ 22,301 | ¥ 19,249 |
Provision | 10,414 | 608 | 3,052 |
Balance at end of the year | ¥ 33,323 | ¥ 22,909 | ¥ 22,301 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Shares - Additional Information (Detail) ¥ in Thousands | 12 Months Ended | |||||||||||||
Dec. 31, 2017shares | Dec. 31, 2015shares | Dec. 31, 2016shares | Sep. 23, 2016shares | Mar. 31, 2015CNY (¥)shares | Mar. 31, 2015USD ($)shares | Jan. 31, 2015CNY (¥)shares | Jan. 31, 2015USD ($)shares | Oct. 31, 2013CNY (¥)shares | Oct. 31, 2013USD ($)shares | Jul. 31, 2011CNY (¥)shares | Jul. 31, 2011USD ($)shares | Sep. 30, 2010CNY (¥)shares | Sep. 30, 2010USD ($)shares | |
Temporary Equity [Line Items] | ||||||||||||||
Redemption start date | Sep. 6, 2017 | |||||||||||||
Minimum redemption rights percentage threshold of outstanding preferred shares | 50.00% | |||||||||||||
Accrue interest rate | 10.00% | |||||||||||||
Minimum number of stock issuance value required for qualified initial public offering | $ | $ 30,000,000 | |||||||||||||
Minimum market capitalization value required for qualified initial public offering | $ | $ 160,000,000 | |||||||||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | |||||||||||||
Convertible Redeemable Series A Preferred Shares | ||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||
Convertible preferred stock, shares issued (in shares) | shares | 0 | 3,125,000 | 0 | 3,125,000 | 3,125,000 | |||||||||
Aggregate proceeds of convertible preferred stock | ¥ 35,707 | $ 5,250,000 | ||||||||||||
Redemption price percentage of original issuance price | 125.00% | |||||||||||||
Liquidation preferences percentage | 150.00% | |||||||||||||
Convertible Redeemable Series A-1 Preferred Shares | ||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||
Convertible preferred stock, shares issued (in shares) | shares | 0 | 1,302,084 | 0 | 1,302,084 | 1,302,084 | |||||||||
Aggregate proceeds of convertible preferred stock | ¥ 24,251 | $ 3,750,000 | ||||||||||||
Redemption price percentage of original issuance price | 125.00% | |||||||||||||
Liquidation preferences percentage | 150.00% | |||||||||||||
Convertible Redeemable Series B Preferred Shares | ||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||
Convertible preferred stock, shares issued (in shares) | shares | 0 | 2,962,239 | 0 | 2,962,239 | 2,962,239 | |||||||||
Aggregate proceeds of convertible preferred stock | ¥ 107,100 | $ 17,500,000 | ||||||||||||
Redemption price percentage of original issuance price | 125.00% | |||||||||||||
Convertible preferred stock conversion basis | Each preferred share was convertible into one ordinary Class B share. | |||||||||||||
Minimum number of stock issuance value required for qualified initial public offering | $ | 100,000,000 | |||||||||||||
Minimum market capitalization value required for qualified initial public offering | $ | 235,000,000 | |||||||||||||
Liquidation preferences percentage | 125.00% | |||||||||||||
Convertible Redeemable Series C Preferred Shares | ||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||
Convertible preferred stock, shares issued (in shares) | shares | 0 | 4,640,843 | 0 | 4,640,843 | 4,640,843 | 4,640,843 | 4,640,843 | |||||||
Aggregate proceeds of convertible preferred stock | ¥ 262,561 | $ 42,000,000 | ¥ 262,561 | $ 42,000,000 | ||||||||||
Redemption price percentage of original issuance price | 110.00% | |||||||||||||
Minimum market capitalization value required for qualified initial public offering | $ | $ 360,000,000 | |||||||||||||
Liquidation preferences percentage | 100.00% | |||||||||||||
Class B Ordinary Shares | ||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||
Number of common stock issued upon conversion | shares | 12,030,166 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Shares - Changes of Convertible Redeemable Preferred Shares (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Temporary Equity [Line Items] | ||
Beginning Balance | ¥ 476,018 | |
Accretion | 16,725 | ¥ 19,707 |
Accumulated other comprehensive income | 14,584 | |
Conversion to Class B ordinary shares | (507,327) | |
Ending Balance | 476,018 | |
Convertible Redeemable Series A Preferred Shares | ||
Temporary Equity [Line Items] | ||
Beginning Balance | ¥ 40,181 | |
Beginning Balance | 3,125,000 | |
Accretion | ¥ 1,033 | |
Accumulated other comprehensive income | 1,226 | |
Conversion to Class B ordinary shares | ¥ (42,440) | |
Conversion to Class B ordinary shares, shares | (3,125,000) | |
Ending Balance | ¥ 40,181 | |
Ending Balance | 0 | 3,125,000 |
Convertible Redeemable Series A-1 Preferred Shares | ||
Temporary Equity [Line Items] | ||
Beginning Balance | ¥ 28,492 | |
Beginning Balance | 1,302,084 | |
Accretion | ¥ 830 | |
Accumulated other comprehensive income | 870 | |
Conversion to Class B ordinary shares | ¥ (30,192) | |
Conversion to Class B ordinary shares, shares | (1,302,084) | |
Ending Balance | ¥ 28,492 | |
Ending Balance | 0 | 1,302,084 |
Convertible Redeemable Series B Preferred Shares | ||
Temporary Equity [Line Items] | ||
Beginning Balance | ¥ 126,641 | |
Beginning Balance | 2,962,239 | |
Accretion | ¥ 6,573 | |
Accumulated other comprehensive income | 3,910 | |
Conversion to Class B ordinary shares | ¥ (137,124) | |
Conversion to Class B ordinary shares, shares | (2,962,239) | |
Ending Balance | ¥ 126,641 | |
Ending Balance | 0 | 2,962,239 |
Convertible Redeemable Series C Preferred Shares | ||
Temporary Equity [Line Items] | ||
Beginning Balance | ¥ 280,704 | |
Beginning Balance | 4,640,843 | |
Accretion | ¥ 8,289 | |
Accumulated other comprehensive income | 8,578 | |
Conversion to Class B ordinary shares | ¥ (297,571) | |
Conversion to Class B ordinary shares, shares | (4,640,843) | |
Ending Balance | ¥ 280,704 | |
Ending Balance | 0 | 4,640,843 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) | Sep. 23, 2016CNY (¥)shares | Dec. 31, 2017Vote$ / sharesshares | Dec. 31, 2016CNY (¥)Vote | Dec. 31, 2016$ / sharesshares |
Class of Stock [Line Items] | ||||
Shares authorized | 200,000,000 | 200,000,000 | ||
Common stock, conversion basis | Each Class A ordinary share is convertible into one Class B ordinary share at any time by the holder thereof. Class B ordinary shares are not convertible into Class A ordinary shares under any circumstances. | |||
Shares issued in IPO | ¥ | ¥ 615,032,000 | |||
Class A Ordinary Shares | ||||
Class of Stock [Line Items] | ||||
Shares par value | $ / shares | $ 0.001 | $ 0.001 | ||
Ordinary share, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||
Number of votes per share | Vote | 10 | 10 | ||
Ordinary share, shares issued (in shares) | 4,543,461 | 4,543,461 | ||
Ordinary share, shares outstanding (in shares) | 4,543,461 | 4,543,461 | ||
Class B Ordinary Shares | ||||
Class of Stock [Line Items] | ||||
Shares par value | $ / shares | $ 0.001 | $ 0.001 | ||
Ordinary share, shares authorized (in shares) | 180,000,000 | 180,000,000 | ||
Number of votes per share | Vote | 1 | 1 | ||
Shares issued in IPO | ¥ | ¥ 7,705,000 | |||
Number of common stock issued upon conversion | 12,030,166 | |||
Ordinary share, shares issued (in shares) | 26,280,367 | 25,191,705 | ||
Ordinary share, shares outstanding (in shares) | 26,280,367 | 25,191,705 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017CNY (¥)$ / shares | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expenses | ¥ | ¥ 22,927 | ¥ 10,630 | ¥ 8,806 | ||||
Weighted average exercise price of share | $ / shares | $ 10.11 | $ 0.42 | |||||
Number of stock options granted | 1,320,000 | 331,000 | |||||
Weighted average grant date fair value of options granted | $ / shares | $ 4.93 | $ 0 | $ 8.81 | ||||
Employee Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | 4 years | |||||
Number of shares vesting in equal monthly installments | 36 months | 36 months | |||||
Stock-based compensation cost, unrecognized, related to non-vested awards | ¥ 38,300 | $ 38,300 | $ 17,467 | $ 28,643 | |||
Unrecognized compensation cost related to stock awards, weighted-average period (in years) | 2 years 1 month 6 days | 1 year 3 days | 1 year 4 months 6 days | ||||
Employee Stock Option | Vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of options granted to vest at the end of one year | 25.00% | 25.00% | |||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Number of shares vesting in equal monthly installments | 36 months | ||||||
Stock-based compensation cost, unrecognized, related to non-vested awards | ¥ | ¥ 55,473 | $ 55,473 | |||||
Unrecognized compensation cost related to stock awards, weighted-average period (in years) | 3 years 9 months | ||||||
Number of restricted stock units granted | 936,999 | ||||||
Restricted Stock Units (RSUs) | Vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of options granted to vest at the end of one year | 25.00% | ||||||
Stock Option Plan | Class B Ordinary Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Ordinary shares available for issuance | 2,500,000 | ||||||
Share incentive plan termination date | 2,022 | ||||||
2017 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Ordinary shares available for issuance | 2,500,000 | ||||||
Share incentive plan termination date | 2,022 |
Share-based Compensation - Assu
Share-based Compensation - Assumptions Used for Calculating Fair Value of Stock Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 10.11 | $ 0.42 | |
Risk free rate of interest | 3.14% | ||
Risk free rate of interest, minimum | 2.59% | ||
Risk free rate of interest, maximum | 2.95% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Life of option (years) | 10 years | 10 years | |
Volatility | 46.00% | ||
Volatility, minimum | 46.00% | ||
Volatility, maximum | 49.00% |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Options Outstanding, Beginning Balance | 2,436,661 | 2,499,161 | 2,192,161 | |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 0.42 | $ 0.42 | $ 0.42 | |
Number of Options, Granted | 1,320,000 | 331,000 | ||
Number of Options, Forfeited/expired | (44,606) | (62,500) | (24,000) | |
Number of Options, Exercise | (1,088,647) | |||
Number of Options Outstanding, Ending Balance | 2,623,408 | 2,436,661 | 2,499,161 | 2,192,161 |
Number of Options, Exercisable | 1,161,247 | |||
Weighted Average Exercise Price, Granted | $ 10.11 | $ 0.42 | ||
Weighted Average Exercise Price, Forfeited/expired | 0.42 | $ 0.42 | 0.42 | |
Weighted Average Exercise Price, Exercise | 0.42 | |||
Weighted Average Exercise Price Outstanding, Ending Balance | 5.48 | $ 0.42 | $ 0.42 | $ 0.42 |
Weighted Average Exercise Price Exercisable | $ 0.42 | |||
Weighted Average Remaining Contractual Life, Outstanding | 7 years 1 month 24 days | 6 years 2 months 26 days | 7 years 3 months 10 days | 7 years 11 months 23 days |
Weighted Average Remaining Contractual Life, Exercisable | 5 years 2 months 12 days | |||
Aggregate Intrinsic Value Outstanding | $ 25,781 | $ 34,423 | $ 28,540 | $ 16,471 |
Aggregate Intrinsic Value Exercisable | $ 11,412 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Awarded | shares | 936,999 |
Number of Options, Vested | shares | (300) |
Number of RSU Outstanding, Ending Balance | shares | 936,699 |
Weighted Average Grant date fair value, Awarded | $ / shares | $ 9.75 |
Weighted Average Grant date fair value Outstanding, Vested | $ / shares | 11.24 |
Weighted Average Grant date fair value Outstanding, Ending Balance | $ / shares | $ 9.75 |
Business Combination - Addition
Business Combination - Additional Information (Detail) - Beijing Zhixunyilong Software Co., Ltd. ¥ in Millions | 1 Months Ended |
May 31, 2017CNY (¥) | |
Business Acquisition [Line Items] | |
Acquisition date | May 31, 2017 |
Business acquisition equity interests acquired, purchase price | ¥ 2.5 |
Business acquisition equity interests acquired Agreement term | 3 years |
Customer Relation | |
Business Acquisition [Line Items] | |
Customer relationship, estimated useful life | 10 years |
Contingent Consideration Continuation Of Employment Compensation Arrangement | |
Business Acquisition [Line Items] | |
Business acquisition equity interests acquired, purchase price | ¥ 7.5 |
Business Combination - Summary
Business Combination - Summary of Purchase Price Allocation to Assets Acquired and Liabilities Assumed (Detail) - Beijing Zhixunyilong Software Co., Ltd. ¥ in Thousands | May 31, 2017CNY (¥) |
Business Acquisition [Line Items] | |
Cash acquired | ¥ 643 |
Prepayment, deposit and other assets | 335 |
Property, equipment and software, net | 888 |
Customer relationship | 677 |
Accrued expense, other payable and other current liabilities | (309) |
Deferred tax liability | (271) |
Goodwill | 537 |
Total | ¥ 2,500 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Earnings Per Share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss attributable to Gridsum Holding Inc. | ¥ (238,996) | $ (36,733) | ¥ (98,574) | ¥ (61,757) |
Net loss attributable to Gridsum's ordinary shareholders | ¥ (238,996) | $ (36,733) | ¥ (128,289) | ¥ (98,106) |
Denominator: | ||||
Weighted average number of ordinary shares outstanding, basic and diluted | shares | 30,243,250 | 30,243,250 | 15,054,865 | 10,000,000 |
Net loss per share attributable to Gridsum's ordinary shareholders -Basic and diluted | (per share) | ¥ (7.90) | $ (1.21) | ¥ (8.52) | ¥ (9.81) |
Convertible Redeemable Series A Preferred Shares | ||||
Numerator: | ||||
Accretion to convertible redeemable preferred share redemption value | ¥ (1,033) | ¥ (1,286) | ||
Cumulative dividend to convertible redeemable preferred shareholders | (2,571) | (3,297) | ||
Convertible Redeemable Series A-1 Preferred Shares | ||||
Numerator: | ||||
Accretion to convertible redeemable preferred share redemption value | (830) | (1,029) | ||
Cumulative dividend to convertible redeemable preferred shareholders | (1,837) | (2,355) | ||
Convertible Redeemable Series B Preferred Shares | ||||
Numerator: | ||||
Accretion to convertible redeemable preferred share redemption value | (6,573) | (7,945) | ||
Cumulative dividend to convertible redeemable preferred shareholders | (8,582) | (10,990) | ||
Convertible Redeemable Series C Preferred Shares | ||||
Numerator: | ||||
Accretion to convertible redeemable preferred share redemption value | ¥ (8,289) | ¥ (9,447) |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) - Weighted Average - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Series Redeemable Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 11,609,978 |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 1,605,961 | 2,158,602 | 1,949,197 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Line Items] | |||
Rental expenses | ¥ 35,553 | ¥ 28,664 | ¥ 18,237 |
Xu v. Gridsum Holding Inc., et al. [Member] | |||
Commitments and Contingencies [Line Items] | |||
Lawsuit filing date | Apr. 25, 2018 | ||
Name of plaintiff | Guosheng Qi | ||
Li v. Gridsum Holding Inc., et al. [Member] | |||
Commitments and Contingencies [Line Items] | |||
Lawsuit filing date | Jun. 25, 2018 | ||
Name of plaintiff | Michael Peng Zhang | ||
Gordon v. Gridsum Holding Inc., et al. [Member] | |||
Commitments and Contingencies [Line Items] | |||
Lawsuit filing date | Jul. 2, 2018 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease under Non-Cancelable Operating Lease and Other Agreements (Detail) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
Operating Leases, Future Minimum Payments Due | |
2,018 | ¥ 25,792 |
2,019 | 8,242 |
2,020 | 2,748 |
2021 and thereafter | 1,380 |
Operating Leases, Future Minimum Payments Due, Total | 38,162 |
Other commitments | |
2,018 | 10,080 |
2,019 | 9,398 |
2,020 | 6,835 |
2021 and thereafter | 3,992 |
Other Commitment | 30,305 |
Total | |
2,018 | 35,872 |
2,019 | 17,640 |
2,020 | 9,583 |
2021 and thereafter | 5,372 |
Contractual Obligation | ¥ 68,467 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Restricted Net Assets [Line Items] | ||||
Percentage of after tax profits allocated to general reserve | 10.00% | |||
Percentage of reserve fund to registered capital when appropriation not required | 50.00% | |||
Restricted net assets | ¥ 110,880 | ¥ 178,085 | ¥ 87,321 | |
Statutory Reserve | ¥ 6,730 | $ 1,034 | ¥ 6,662 | ¥ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 05, 2018USD ($)$ / shares | Dec. 31, 2017CNY (¥)¥ / $ | Dec. 31, 2018CNY (¥)¥ / $ | Dec. 31, 2018USD ($)¥ / $ | May 08, 2018$ / shares | Dec. 31, 2017USD ($)¥ / $ | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Subsequent Event [Line Items] | ||||||||||
Cash and cash equivalents | ¥ 166,690 | $ 25,620 | ¥ 520,452 | $ 79,992 | ¥ 198,523 | ¥ 61,830 | ||||
Exchange rate, RMB to 1.00 U.S. Dollars | ¥ / $ | 6.5063 | 6.5063 | ||||||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Proceeds from convertible note issuance | $ 40,000 | |||||||||
Cash and cash equivalents | ¥ 96,400 | $ 14,000 | ||||||||
Exchange rate, RMB to 1.00 U.S. Dollars | ¥ / $ | 6.8755 | 6.8755 | ||||||||
FutureX Innovation SPC | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Convertible note description | The event of a fundamental change, as defined in the Note, the holder of the Note may require the Company to repurchase the Note at a price equal to 100% of the principal amount of the Note, plus accrued and unpaid interest. | |||||||||
FutureX Innovation SPC | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Proceeds from convertible note issuance | $ 40,000 | |||||||||
Convertible note conversion price | $ / shares | $ 6.50 | |||||||||
Convertible note term | 18 months | |||||||||
Convertible note bears interest | 2.80% | |||||||||
FutureX Innovation SPC | Subsequent Event | Class B Ordinary Shares | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument, face amount | $ 40,000 | |||||||||
Registration rights agreement period | 15 months | |||||||||
FutureX Capital Limited | Subsequent Event | Class B Ordinary Shares | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding shares price per share | $ / shares | $ 8.70 |
Condensed Balance Sheets of Par
Condensed Balance Sheets of Parent Company (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) |
Current assets: | |||||||
Cash and cash equivalents | ¥ 166,690 | $ 25,620 | ¥ 520,452 | $ 79,992 | ¥ 198,523 | ¥ 61,830 | |
Amounts due from subsidiaries and VIEs | 2,565 | ||||||
Prepayments and other current assets | 306,092 | 47,045 | 189,740 | 105,387 | |||
Total current assets | 1,323,382 | 203,400 | 1,139,504 | 577,446 | |||
Non-current assets: | |||||||
Total non-current assets | 79,715 | 12,253 | 68,996 | 40,800 | |||
Total assets | 1,403,097 | 215,653 | 1,208,500 | 618,246 | |||
Current liabilities: | |||||||
Accrued expenses and other current liabilities | 90,721 | 13,944 | 76,578 | 67,292 | |||
Total current liabilities | 859,157 | 132,052 | 431,251 | 357,652 | |||
Total liabilities | 859,406 | 132,090 | 431,251 | 357,652 | |||
Commitments and contingencies | |||||||
Convertible preferred shares | 476,018 | ||||||
Shareholders' equity/(deficit): | |||||||
Additional paid-in capital | 1,107,201 | 170,174 | 1,090,991 | ||||
Statutory Reserve | 6,730 | 1,034 | 6,662 | 0 | |||
Accumulated other comprehensive loss | (30,539) | (4,694) | (10,087) | (19,010) | |||
Accumulated deficit | (549,911) | (84,520) | (310,847) | (196,866) | |||
Gridsum's shareholders' equity/(deficit) | 533,688 | 82,026 | 776,918 | (215,808) | |||
Total liabilities, mezzanine equity and shareholders' equity | 1,403,097 | 215,653 | 1,208,500 | 618,246 | |||
Convertible Redeemable Series A Preferred Shares | |||||||
Current liabilities: | |||||||
Convertible preferred shares | 40,181 | ||||||
Convertible Redeemable Series A-1 Preferred Shares | |||||||
Current liabilities: | |||||||
Convertible preferred shares | 28,492 | ||||||
Convertible Redeemable Series B Preferred Shares | |||||||
Current liabilities: | |||||||
Convertible preferred shares | 126,641 | ||||||
Convertible Redeemable Series C Preferred Shares | |||||||
Current liabilities: | |||||||
Convertible preferred shares | 280,704 | ||||||
Class A Ordinary Shares | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | 31 | 5 | 31 | 31 | |||
Class B Ordinary Shares | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | 176 | 27 | 168 | 37 | |||
Gridsum Holding Inc. | |||||||
Current assets: | |||||||
Cash and cash equivalents | 27,355 | 4,204 | 316,210 | $ 48,600 | 19,616 | ||
Amounts due from subsidiaries and VIEs | 518,976 | 79,765 | 299,546 | 72,163 | |||
Prepayments and other current assets | 7,085 | 1,089 | 3,187 | 3,701 | |||
Total current assets | 553,416 | 85,058 | 618,943 | 95,480 | |||
Non-current assets: | |||||||
Investment in subsidiaries and VIEs | 170,509 | 164,983 | |||||
Total non-current assets | 170,509 | 164,983 | |||||
Total assets | 553,416 | 85,058 | 789,452 | 260,463 | |||
Current liabilities: | |||||||
Accrued expenses and other current liabilities | 19,728 | 3,032 | 12,534 | 253 | |||
Total current liabilities | 19,728 | 3,032 | 12,534 | 253 | |||
Total liabilities | 19,728 | 3,032 | 12,534 | 253 | |||
Commitments and contingencies | |||||||
Convertible preferred shares | 476,018 | ||||||
Shareholders' equity/(deficit): | |||||||
Additional paid-in capital | 1,107,201 | 170,174 | 1,090,991 | ||||
Statutory Reserve | 6,730 | 1,034 | 6,662 | ||||
Accumulated other comprehensive loss | (30,539) | (4,694) | (10,087) | (19,010) | |||
Accumulated deficit | (549,911) | (84,520) | (310,847) | (196,866) | |||
Gridsum's shareholders' equity/(deficit) | 533,688 | 82,026 | 776,918 | (215,808) | |||
Total liabilities, mezzanine equity and shareholders' equity | 553,416 | 85,058 | 789,452 | 260,463 | |||
Gridsum Holding Inc. | Convertible Redeemable Series A Preferred Shares | |||||||
Current liabilities: | |||||||
Convertible preferred shares | 40,181 | ||||||
Gridsum Holding Inc. | Convertible Redeemable Series A-1 Preferred Shares | |||||||
Current liabilities: | |||||||
Convertible preferred shares | 28,492 | ||||||
Gridsum Holding Inc. | Convertible Redeemable Series B Preferred Shares | |||||||
Current liabilities: | |||||||
Convertible preferred shares | 126,641 | ||||||
Gridsum Holding Inc. | Convertible Redeemable Series C Preferred Shares | |||||||
Current liabilities: | |||||||
Convertible preferred shares | 280,704 | ||||||
Gridsum Holding Inc. | Class A Ordinary Shares | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | 31 | 5 | 31 | 31 | |||
Gridsum Holding Inc. | Class B Ordinary Shares | |||||||
Shareholders' equity/(deficit): | |||||||
Ordinary shares | ¥ 176 | $ 27 | ¥ 168 | ¥ 37 |
Condensed Balance Sheets of P_2
Condensed Balance Sheets of Parent Company (Parenthetical) (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015shares | Jan. 31, 2015shares | Oct. 31, 2013shares | Jul. 31, 2011shares | Sep. 30, 2010shares |
Convertible Redeemable Series A Preferred Shares | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 3,125,000 | 3,125,000 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 3,125,000 | 3,125,000 | 3,125,000 | ||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 3,125,000 | 3,125,000 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 0 | $ 0 | |||||
Convertible Redeemable Series A Preferred Shares | Gridsum Holding Inc. | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 3,125,000 | 3,125,000 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 3,125,000 | 3,125,000 | |||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 3,125,000 | 3,125,000 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 | |||||||
Convertible Redeemable Series A-1 Preferred Shares | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 1,302,084 | 1,302,084 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 1,302,084 | 1,302,084 | 1,302,084 | ||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 1,302,084 | 1,302,084 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 0 | $ 0 | |||||
Convertible Redeemable Series A-1 Preferred Shares | Gridsum Holding Inc. | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 1,302,084 | 1,302,084 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 1,302,084 | 1,302,084 | |||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 1,302,084 | 1,302,084 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 | |||||||
Convertible Redeemable Series B Preferred Shares | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 2,962,239 | 2,962,239 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 2,962,239 | 2,962,239 | 2,962,239 | ||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 2,962,239 | 2,962,239 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 0 | $ 0 | |||||
Convertible Redeemable Series B Preferred Shares | Gridsum Holding Inc. | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Convertible preferred stock, shares authorized (in shares) | 2,962,239 | 2,962,239 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 2,962,239 | 2,962,239 | |||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 2,962,239 | 2,962,239 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 | |||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | ||||||||||
Convertible Redeemable Series C Preferred Shares | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | ||||||||||
Convertible preferred stock, shares authorized (in shares) | 4,640,843 | 4,640,843 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 4,640,843 | 4,640,843 | 4,640,843 | 4,640,843 | |||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 4,640,843 | 4,640,843 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | $ 0 | ¥ 0 | $ 0 | |||||
Convertible Redeemable Series C Preferred Shares | Gridsum Holding Inc. | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Convertible preferred stock, shares authorized (in shares) | 4,640,843 | 4,640,843 | |||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 4,640,843 | 4,640,843 | |||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 4,640,843 | 4,640,843 | |||||
Convertible preferred stock, liquidation preference | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 | |||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | ||||||||||
Class A Ordinary Shares | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Ordinary share, shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Ordinary share, shares issued | 4,543,461 | 4,543,461 | 4,543,461 | 4,543,461 | |||||||
Ordinary share, shares outstanding | 4,543,461 | 4,543,461 | 4,543,461 | 4,543,461 | |||||||
Class A Ordinary Shares | Gridsum Holding Inc. | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Ordinary share, shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Ordinary share, shares issued | 4,543,461 | 4,543,461 | 4,543,461 | 4,543,461 | |||||||
Ordinary share, shares outstanding | 4,543,461 | 4,543,461 | 4,543,461 | 4,543,461 | |||||||
Class B Ordinary Shares | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Ordinary share, shares authorized (in shares) | 180,000,000 | 180,000,000 | 180,000,000 | 180,000,000 | |||||||
Ordinary share, shares issued | 26,280,367 | 26,280,367 | 25,191,705 | 25,191,705 | |||||||
Ordinary share, shares outstanding | 26,280,367 | 26,280,367 | 25,191,705 | 25,191,705 | |||||||
Class B Ordinary Shares | Gridsum Holding Inc. | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Ordinary share, par value per share (in dollars) | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Ordinary share, shares authorized (in shares) | 180,000,000 | 180,000,000 | 180,000,000 | 180,000,000 | |||||||
Ordinary share, shares issued | 26,280,367 | 26,280,367 | 25,191,705 | 25,191,705 | |||||||
Ordinary share, shares outstanding | 26,280,367 | 26,280,367 | 25,191,705 | 25,191,705 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss of Parent Company (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | ¥ 469,533 | $ 72,166 | ¥ 363,823 | ¥ 232,197 | |
Cost of revenues | [1] | (94,640) | (14,546) | (55,707) | (33,392) |
Gross profit | 374,893 | 57,620 | 308,116 | 198,805 | |
Operating expenses: | |||||
Sales and marketing expenses | [1] | (192,413) | (29,573) | (139,781) | (88,364) |
Research and development expenses | [1] | (257,921) | (39,642) | (160,387) | (97,553) |
General and administrative expenses | [1] | (143,743) | (22,093) | (88,108) | (60,820) |
Total operating expenses | [1] | (594,077) | (91,308) | (388,276) | (246,737) |
Loss from operations | (219,184) | (33,688) | (80,160) | (47,932) | |
Net loss | (239,124) | (36,753) | (98,627) | (61,773) | |
Accretions to preferred shares redemption value | (16,725) | (19,707) | |||
Cumulative dividend to preferred shareholders | (12,990) | (16,642) | |||
Net loss attributable to Gridsum's ordinary shareholders | (238,996) | (36,733) | (128,289) | (98,106) | |
Comprehensive loss | (259,448) | (39,876) | (89,651) | (81,087) | |
Gridsum Holding Inc. | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Operating expenses: | |||||
Sales and marketing expenses | 0 | 0 | 0 | 0 | |
Research and development expenses | 0 | 0 | 0 | 0 | |
General and administrative expenses | (872) | (134) | (802) | (565) | |
Total operating expenses | (802) | (565) | |||
Loss from operations | (872) | (134) | (802) | (565) | |
Loss from subsidiaries and VIEs | (238,124) | (36,599) | (97,772) | (61,192) | |
Net loss | (238,996) | (36,733) | (98,574) | (61,757) | |
Accretions to preferred shares redemption value | (16,725) | (19,707) | |||
Cumulative dividend to preferred shareholders | (12,990) | (16,642) | |||
Net loss attributable to Gridsum's ordinary shareholders | (238,996) | (36,733) | (128,289) | (98,106) | |
Comprehensive loss | ¥ (259,576) | $ (39,896) | ¥ (89,704) | ¥ (81,103) | |
[1] | Share-based compensation expenses were allocated in cost of revenues and operating expenses as follows: Cost of revenues 335 319 501 77 Sales and marketing expenses 1,651 2,252 4,739 728 Research and development expenses 3,347 3,955 8,641 1,328 General and administrative expenses 3,473 4,103 9,042 1,390 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows of Parent Company (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash flows from operating activities: | ||||
Net cash used in operating activities | ¥ (306,704) | $ (47,141) | ¥ (235,177) | ¥ (97,377) |
Cash flows from investing activities: | ||||
Net cash used in investing activities | (198,521) | (30,512) | (116,388) | (23,454) |
Cash flows from financing activities: | ||||
Proceeds from issuance of Series C preferred shares | 262,561 | |||
Proceeds from issuance of ordinary shares | 3,091 | 475 | 615,031 | |
Payment of financing costs in connection with the issuance of Series C preferred shares | (1,061) | |||
Payment for IPO costs | (3,362) | (517) | (29,892) | |
Net cash provided by financing activities | 190,948 | 29,348 | 650,539 | 257,500 |
Net increase in cash and cash equivalents | (353,762) | (54,372) | 321,929 | 136,693 |
Cash and cash equivalents at the beginning of the year | 520,452 | 79,992 | 198,523 | 61,830 |
Cash and cash equivalents at the end of the year | 166,690 | 25,620 | 520,452 | 198,523 |
Supplemental schedule of non-cash financing activities: | ||||
Accretions to preferred shares redemption value | 16,725 | 19,707 | ||
Gridsum Holding Inc. | ||||
Cash flows from operating activities: | ||||
Net cash used in operating activities | 2,424 | 373 | (188,097) | (56,436) |
Cash flows from investing activities: | ||||
Investment of subsidiaries and VIEs | (291,008) | (44,727) | (103,298) | (185,448) |
Net cash used in investing activities | (291,008) | (44,727) | (103,298) | (185,448) |
Cash flows from financing activities: | ||||
Proceeds from issuance of Series C preferred shares | 262,561 | |||
Proceeds from issuance of ordinary shares | 3,091 | 475 | 615,032 | |
Payment of financing costs in connection with the issuance of Series C preferred shares | (1,061) | |||
Payment for IPO costs | (3,362) | (517) | (27,043) | |
Net cash provided by financing activities | (271) | (42) | 587,989 | 261,500 |
Net increase in cash and cash equivalents | (288,855) | (44,396) | 296,594 | 19,616 |
Cash and cash equivalents at the beginning of the year | 316,210 | 48,600 | 19,616 | |
Cash and cash equivalents at the end of the year | ¥ 27,355 | $ 4,204 | 316,210 | 19,616 |
Supplemental schedule of non-cash financing activities: | ||||
Accretions to preferred shares redemption value | ¥ 16,725 | ¥ 19,707 |