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  "documentTitle": "Qutoutiao, Inc. (QTT)",
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  "presentationDate": "2020-01-17 00:00:00",
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  "notes": "The slide highlights a discrepancy in how the company reports loyalty program expenses, suggesting they are understating costs by excluding user acquisition expenses.",
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      "text": "Based on the tables above, which were created using only numbers disclosed by QTT in SEC filings and calculations based on numbers disclosed by QTT it is abundantly clear to us that this business is structurally unprofitable and will inevitably fail without constant injections from the capital markets.",
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      "text": "Gross profit less loyalty expenses per DAU per day: -¥0.11",
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      "text": "Based on the tables above, which were created using only numbers disclosed by QTT in SEC filings and calculations based on numbers disclosed by QTT it is abundantly clear to us that this business is structurally unprofitable and will inevitably fail without constant injections from the capital markets. QTT knows this, which is why it resorted to attempting to pass off “user engagement expenses” alone as its total loyalty program expenses, despite QTT clearly stating in numerous SEC filings that the loyalty program consists of both “user engagement expenses” and “user acquisition expenses.”",
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      "text": "(1) Based on 73.1 million reported total installed users at the end of 2017 (Source: QTT F-1, p. 13)",
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