Hello (MOMO) 14 Mar 242023 Q4 Earnings call transcript

Fourth Quarter and Fiscal Year 2023, Hello Group Inc. Earnings Conference Call. [ Participate ] presentation followed by a question-and-answer session. Please note this conference is being recorded today. I would now like to hand the conference over to your first speaker today, Ms.

Jing. Ashley you. Thank ma'am. ahead, Please go

earlier Good morning us Fiscal you joining were everyone. Earnings the available company's IR good for Hello evening, website. released results today company's and Call. Thank and Group's are Conference on for The and today Fourth XXXX Quarter

highlights the who business and call Hui, Ms. today of CFO Tang well will CEO company's [indiscernible], as of Yan, Mr. the Ms. financials and of company. discuss the Peng operations the On CEO the and are company; as the company; guidance.

for We be Q&A all will available the session.

now market like the new will filings not does I and the Before relate events of are based statements. Further we harbor begin, future factors, information, or included and regarding company's remind on COO, management's of of Reform other Act differ the statements undertake under Mr. this that and operating otherwise, achievements to or I result statement law. our factors this to and Litigation uncertainties the risks, company Exchange unknown any as Securities Sichuan. with company's a predict obligation forward-looking would call current forward-looking to call any as Zhang may except all beyond current forward-looking the other The required or company's safe uncertainties and over expectations U.S. which made update pass in information Commission. of those and Private from under to to the events actual contain is XXXX. performance many materially are risks, results, in that statements to difficult Securities the conditions may of known involve provision cause you Such control, and the which which are and

our achieve financial you our fiscal lines the with progress work of the growth like performance. joining priorities outlined across results. quarter was fourth of a and team to XXXX, and many through start and Despite year and changes XXXX. I strategic overview environment, details you big XXXX brief I solid business financial external walk strategic our steady in challenges Hello, everyone. will fiscal the implementing in a our year. [ for for our in call. the ] Thank made I'd

with a of RMB Tantan previous loss up down XXX RMB resource compared was ] of XXX to million, margin RMB of operating excellent operating Total a million, million with in same margin the up margin year. For over Adjusted was the million, [ points from year. year-over-year. revenue income ] was the group fourth XX% high revenue The RMB which is and total revenue profit the year-over-year. sequentially, X% ] quarter adjusted from billion, and RMB X.XX percentage was mobile was of new significantly end X% Adjusted improvement RMB Total down year-over-year, guidance. XXXX, X.X and billion of margin [ and app our efficiency percentage X.X XX% due primarily XXX was points down improvement XX.X%, cost by year-over-year. The operating X% XX.X%, year-over-year X up income million, of our year-over-year, was at and operating improved year-over-year. a past profit the management significantly the utilization team's year-over-year stand alone of app income RMB XX.XX X.X% X.XX in in the with period XX% came [ in

improvement app [ year-over-year stable by by and alone in driven cow productivity over RMB and was ] We've initiatives optimization the of percentage normal XXXX. total billion, and past [ efficiency stand billion, our healthy year-over-year, rapid profit compared Momo businesses RMB with Adjusted RMB due economy new billion up from spending points. across was down X% revenue XX.X%, optimization the revenue and XX from with percentage weak past a softness in from up with momentum was gross Standalone decline by XX.X significantly was year. effective The operating investments the Adjusted XX XXXX, the ago. At in X.XX resulting initiatives operating year year. Tantan of RMB XX.X%, mainly fiscal up app efficiency ecosystem. billion, cash up new Momo XXXX, growth to business. operational significantly margin by app a our RMB profitable. Total revenue group income product overseas proactive X.X X and lower points ] amid revenue ] a the maintain billion For XX.X cost the from our implementing and we mainly driven improvement business despite maintained from ] was supported [ X.X the app margins in our [ income macro of make cost improvement to the strong margin Tantan, a and continue economy X%

in access resources. investment reduce human and reallocated channels ROI We low to continue to

to ARPU. the continue experience to we addition, optimizing improve In paying

a our efficiencies, we marketing profitability. use As revenue. delivering with declined due improved cash more Accordingly, Tantan consecutive to for result, reduced than decreased significantly revenue of earnings quarter

RMB was XXXX, billion, year-over-year, down XXX fiscal million and revenue RMB For XX% XXX was compared a income adjusted X.X with total loss in million RMB operating Tantan's of XXXX.

must affect optimization part management, [indiscernible] submit activities negatively of in led in experience with retention. the efficiency and the cost the [ which improvements, Tantan's ecosystem of team's that user our to mechanistic and year ] pleased we're we in While and execution first

behind our lack the half, through expectations. While work efforts fully product caused second solved has has in the it also problem to various our operational been significantly and

were As to unable and this ] discuss committed towards hard a year. [ Rich [ more remain in later. we will working We new detail features. this to dating in ] goal breakthroughs explain meaningful make any result,

through Now as priorities we respectively. I'll new for the we walk well progress facing strategic plans Tantan challenges made vendors, our deal as to you with our them and against Momo, the and are the

pressure continue structure and the with our despite is productivity of user revenue the ] the this the for cash the app, In business. to main goal scale cost the keep mobile to the [ cow past optimize For economy remain operations in XXXX stable, year, macro improving efficiency, and profits team the introducing regulatory by and despite operating policies, revenue pressures changes the optimizing cash we external by increased and Meanwhile, and margins humanization and from features. revenue new staff product monetization continuously mitigated pressures.

to thanks pursuing On our decreased year we marketing acquisition The and channel more [ ] XX% year-over-year, fiscal stable paying have ROI the of our user front, efforts. unit users channel than In and XX% of in remained X months to on users the channel product focused while we channel XXXX, improving acquired year-over-year. cost group XX% XXXX, investments number bring profitable acquisition. by rather user unprofitable reducing pursue first

paying active optimization, users temporary However, the [ at impact Eagle which due million, COVID with pressure the of number number the year, end community of a the the long-tail XXX,XXX of on the decrease short-term of and regulatory-driven ] quarter, resulted and a the number the of previous in quarter. fell extraordinary compared was users users. In system of paying to product fourth app of X.X adjustments normal

X% cash the fourth revenue house RMB business. our billion, driven year-over-year. Now down Momo's In quarter, Momo of ] productivity was app let's the X.XX go through [

year-over-year with recur billion, in fiscal earlier down a our Momo's year-over-year, economy revenue For efforts. in pandemic than streaming the operational over we the RMB Momo's quarter and delivered X, year totaled growth XXXX, live X.XX to XXXX, expected. Thanks X% early positive quarter live and revenue streaming product

proactively the However, enter revenue our the as a same revenue the of oriented year risk, revenue decline weaker reason become year's second the regulatory the in XXXX. same period in competition half, in reduced in revenue we of manage XXXX. softness expected. recovery team operational [ The time, the is the the events better of events, At and economy spending Momo live in competition resulting decreased for half with than second combination to decline the compared main ] streaming from

continued the the interactive ], of [ front, enrich of cohorts our spending paying [ backdrop against improve team game type On to in features [indiscernible] approve introducing conversion ] different product users and softness help long-term new [ users features live positive on in of only cohort, side game of supply a the also and advice mid- but the growth live streaming. not stabilize plays engagement streaming the to ]

Tantan, million, the quarter, at RMB the year-over-year. from RMD fourth [ RMB flat million, Gross from XXX value-add Regarding excluding ] down normal XX% for app totaled year-over-year. XXX XX% was Revenue the year-over-year. revenue loss X.XX totaled billion revenue standalone up services, from

of app XX% billion, standalone year-over-year. Whilst The Tantan Momo incremental For revenue X.XX the Mono up revenue rate the largely from than contributed the we the fiscal Momo down the year was mainly from totaled by RMB XX% revenue XXXX, of revenue from gross X revenue, decrease down expected excluding at The content, revenue from X% Gross for X.XX billion, offset beginning app. decline reasons. X.XX year-over-year. app billion, RMB in higher year, was was gross RMB app year-over-year. the the

economic expected, First, than recovery the was soft. remained user weaker spending

Second, the a in adjustment year's resulted users. community in maintain product healthy in the to decline a half second ecosystem paying

efficiency On video-based nonpaying as monetization. on the experience features the audio the with improved wide positively product integrating of for and homepage, the

On on X revenue app growth, in operational focus the improvement. resulting to user-oriented operational fronts, we efforts organic drive

Tantan. to moving Now

its breakeven of and goals product sustainable despite small Our achieve business channel back for the ] our monetization driven the throughout strategic Asian this positive to growth was [ funds, and culture achieving the year the beginning to Tantan the by pressure that hit profit year, strategic at and both on on overall product Tantan model pursue revenue. operating for and first milestone for dating year efforts suitable of the maintain a goal breakeven on of develop cycle, the

and continued personnel channel of With our to set the efficiency due was our improvement optimization. efficiency cost in and primarily cost initiatives improvement optimization

set in and of has beginning, make sustainable due its growth. yet execution ] to elation, Tantan achieving some I However, to at mentioned breakthroughs as [ in efficiency strategic in the goal

holidays. beginning supplies our the engagement [ As pandemic from trough ] at recovered the user Chinese around level year and the base quickly XXXX, new of

the due user However, to to centers. overly our screening aggressive overlay adjustments

at ] Our of that platform the user of improve the that [ gaming and table starting ensure ecosystem. [indiscernible] the and ecosystem user experience our our leading to in panel experience health spring to user decline retention impacting significant experienced threatens attack a our

Our team campaign anti-bank launched ]. ] [ Berger [ X-month

our experience I was channels December negative putting base in COVID significant reduction pressure missteps XX% a our impact our in December with mentioned, the on received XX.X combined investments from impact the just of the user channel further user down MAU retention, has However, to on and spending with our million. and in significantly

As of of sequentially. the net a the XXX,XXX X.X decrease million paying users, Tantan quarter, fourth of end a had

sequentially. Turning of number reduced financials, paying to down and RMB fourth quarter million, X% was The to decrease users. year-over-year XX% Tantan's a attributable the revenue XXX total for [indiscernible]

decline the year paying down XX% the in to XXXX, channel For The fiscal RMB and [indiscernible] subscription total resulted was billion, X.X campaign decrease investments, was anti-bank adjustment revenue users that to year-over-year. renewals. due from

In was business down year-over-year. line, XXX revenue gross RMB terms of million, XX%

million, streaming turned profitable the an year-over-year. fiscal primarily was this million for of revenue XXX million on channel reduction adjusted compared investments. XXXX. Tantan operating loss X% income Tantan live While operating driven RMB RMB down in unproductive in XXX to year XXX by revenue, RMB was was XXXX despite pressure adjusted significant

optimization. As allocation the revenue much with count. part than the our of resulted declining in ARPU improvement cost less optimization continued in and user staff strategy Meanwhile,

would on the and of front. through the progress I to Now like product Tantan's you walk details channel

XX% front, competition channel avoided over positive to allocating by compared ROI. cost site reduce We declined [ continued external ratio ] by seasonally marketing First, team total seasonal channel investment acquisition caused couldn't profitable. marketing cutting channels to expenses cost [indiscernible] different generate and the XXXX. on XXXX. acquisition compared to unit the the And significantly that our by adjusted facility to cost our user year was fiscal reducing with ROI windows. By was [ investments to is for reduced remain Tantan put channel in ] negative on pressure by essential Other XX% XXXX, base, user

this adjustments On activities in XXXX, and will side focused fight against the spending strategy mainly that on out ]. spring product user operational team [ the product and our product upgrade to

basic XXXX. recovered. in on plays privilege on improved commercial start last growth the products and of team product paying which increase ] on of users premium the Information [ and Technology the increase impact variety in experience server in under By throughout end activities membership [indiscernible] appropriate Ministry significant paying a regulations ecosystem year. subquential for in mitigate product and with top quarter renewal. We also continuous the ARPU paying a the user the [ control guidance has launched positive services, and and base a which combined of membership of the To of of spending Our year and reduced every Pago XXXX, experience [indiscernible] single ratio the ] were Industry

the Without achieve to positive of our product innovation on XXXX in the the focus improving value-added year, strategic are Therefore, management cost innovate the to center and growth in service, resources sustainable is of cycle, continued XXXX, in product Tantan not dating second the we the the focusing live improvement optimization services projects. Tantan to allocated achieved on monetization and emphasizing as and profitable growth. thanks priority ARPU. streaming back for ] continue efficiency half improvement due growth innovation. accent chatroom [ initiatives Beyond to cloud. breakeven in as and the began the well live We achieve [indiscernible] since of and streaming the on lack to dating the breakthrough in effective ultimately business the to experience our overall biggest ecosystem of

Lastly, portfolio expands the In our the new year-over-year. to Momo of Tantan, total terms XXX products, growth was new and revenue develop goal of our and including RMB long-term product million, endeavors, social enrich XX% game fourth up the beyond and in is engine. quarter, apps,

year-over-year, the Revenue growth up fiscal app high base RMB billion, overseas our business rapid XX% growth from standalone apps XXXX. of in was by standalone rapid the driven For XXXX. remain year from momentum X.XX

our while domestic with the continuing life and team's their mature cycle, potential. have expenses app, monetization focus XXXX for on As to controlled relative given operational costs

Compared overseas of ] the with was with rapid negative of still and effort our in border operating maintain several result, currencies less factors, combined has domestic the of the business of a overseas and stage improve in growth team early channel accumulated margin. still rate more product at experience [ affected the a relatively with for was [ higher size, previous XXXX as by earthquake Turkey in products, the As profit its than the such is vendors though ] devaluation growth [indiscernible] endeavors. Even profit should our the app product revenues the revenue market and with countries team.

enrich On the experience product cohorts. continue operation localized to for we front, and different and users

the On users and the according change front, paying acquiring strictly channel team our focus revenue investments to channel ROI. adjusted on

thanks supported with efforts the in operating to our result, users. Operating improvement a leverage. channel number an margin covered year-over-year, As in continued product improved ARPU increase of a paying has and profit investment significantly

to increased close in in profit significantly few Our a million million overseas business RMB to from XXXX. XXXX RMB XXX

in-space also to In product new made sectors revenue Soulchill and developed development. In XXXX, opportunities brand-new ] in [ profit-oriented we short remarkable progress Apple in exploring have addition products, a ] app [ VisionPro. [ technological by ], leveraging we for

As this place in of with still in enrich cases and in we is in The was launched its and Apple motion [ simultaneously use app native interactions the stage, February continue will early product XXX year. for and connections. VisionPro social ] X to very

review. about our business talk Let's

priorities talking first with like in about the is time would investors management's some spend this As this call for XXXX, to our I year.

and this healthy an goal Momo [ maintain and to and with radical administer through bonuses. We by features ecosystem order will competition the plan business In further social user-oriented social approaches excellent in app revenue reduce broadcasters all, of new monetization card our we In a nonevent revenue-oriented order activities. increased obtain the First to to ] third, productivity social cash to adopted ] events. related agencies driven maintain contribute of large-scale ecosystem. game leverage to for competition Momo by [ events operational

part We advanced savings increase sharing. daily to use the bonus revenue will of

live put latest some present competition revenue, on lost in our streaming and decline pressure revenue. the we'll As

impact our to to the revenue mitigate continue lower our ways to for on efficiency We of optimize cost will profit. look

is to this core top Tantan that, the And experience. on year for model improve to ] growth strategic [ efficient our business an growth. dating Tantan, that of profitable For drives

region brand market. to the MENA market. with Regarding monetization pan-entertainment X and experience the that firms we products invest take social Soulchill build space find great a our portfolio industry to services has in we past to not each we product. more job we still We added that over MENA in XXXX, interact the other, believe long-term business endeavors, market value [ more unique to and beyond users the on and have in create this vendors on and we for on strikes social to know and and new boundary diversified built new in well successful growth and a and plan We Tantan top engine. ] new build now succeed plan advantage and the Hello and the can how explore and our the in the beyond the our help believe bigger explore with we room are new localization, enriching ecosystem. our has social that Group experience resources Momo pushing growth effectively overseas In of a continue years, to market to shareholders. We the company doing if border a leverage good limited to for a area. replicate Based

long-term over fundamental I demonstrates for a paid cash [indiscernible]. Kathy dividend. creating commitment the And has and financial for ] business and the confidence company the device value with your the management's the call repurchase Thank of our now conclude [ like is million the shareholders. will pass for amount to in has you dividend approximately XXXX. declared would the in per of $X.XX to payment a XXX our to contributable USD that of cash sixth I Inc, total amount Group a cash special This net to X/X Lastly, Hello Board adjusted ADS, income consecutive together, confidence or in program. of that the which year It to And by announcing will review.

for conference you today. our Thank call everyone. joining Hello,

grow a mainly of and Tantan quarter. to was the billion, cost income This financial year-over-year down revenue the attributable the optimization Non-GAAP RMB me Net and XX% [ continued revenue. X% and stable basis take ] the briefly a company down the quarter-on-quarter. RMB on efficiency income which profitable. XXXX X% quarter attributable from turned Momo to previous for activity of million, review. was X.X through initiatives, supported up year-on-year year-on-year improvement Total to fourth X% cow business our XXX.X but was despite lower Now effective let you cash net

let details. Now walk me through you the

year, adjustments. revenue XXXX, up current broadcasting proactive the down regulatory the was items quarter The weak billion, from in manage revenue from product was one, the due and our X% but from for stating billion, fourth fourth on quarter-over-quarter. year-over-year quarter-over-quarter. centric the RMB flat was spending fourth revenue X% service. Momo two, quarter. Momo number order same proactive quarter-over-quarter. due compound for Revenue Tantan's from year-over-year to but business quarter-over-quarter million, macro environment, as X XX% value-added reduce year-over-year XX.X RMB revenue This basis related for broadcasting. the and risk, live XXXX last quarter service ex Total as X.XX the QX XXXX value-added Firstly, Tantan value-added streaming but both XX% of a X% X.XX adjustments on XX% line key well into X.XX X% pivoting a billion to down on was amounted live Revenue the application in number X.XX our decreased was sentiment previous in year-over-year RMB basis X% sentiment operational competition for basis. an down a the live and broadcasting number Looking RMB from revenue three, to of service year quarter last quarter, decrease live the service as live sequentially. totaled broadcasting RMB down quarter QX revenue the factors: billion to of from better soft consumer away application to year-over-year, less events down mainly

campaign in value-added due the On million, and the which to other [ apps stand-alone The Momo amounted down SAM was was growth adjustments X% membership XX% investment, to partially offsetting ] a due the revenue services. from strong sequentially. turn BaaS show decrease [ new in anti XXX.X channel and reduction revenue hand, continue year-over-year paying renewal. decline ] the momentum, pressure to Tantan revenue to in subscription to a users, the from

continued in less than improvement user in the However, declining ARPU much accounts. resulted revenue

due to cost same X.X that margin and and cost streaming. for to period was the the Non-GAAP quarter down X.X connection quarter-over-quarter quarter. RMB to to mix. margin from to the for compared decline billion up events The incremental The shift turning with was quarter expenses. of last revenue an revenue in due in mainly percentage XXXX Now the points year was but XX.X% improvement billion in gross from percentage expenses X.XX the X.XX last points live was a year-over-year of resulted year. for from ago fourth tax period, its various Non-GAAP year-end in increase

to XX.X representing XX% of on million QX the up X.X down RMB for RMB last were for a mainly increase and, period in which respective the expenses compared reduction in their Non-GAAP as X.X in optimization decreased was points decrease XX.X RMB degree, a year. Non-GAAP to primarily for degree, expenses both sales same decrease in million the as total million Non-GAAP revenue and was continuing percentage the G&A and both QX is last from XX.X% from year, the channel RMB expenses to but to and percentage a percentage as X% renminbi quarter. with which revenue with a total expenses X% of However, Non-GAAP or This can control and was of million XXXX OpEx notice, million Tantan, continuous fourth the lower quarter from revenue and due strategy or operating quarter the year as content and personnel a seasonal renminbi to last operating X,XXX quarter personnel ROI. period. optimization RMB marketing quarter an Non-GAAP total marketing cut decreased from revenues. The income for to ago. XXX.X was We period compared amount a Momo's costs a stable XXX million a percentage non-GAAP expenses, XXX.X expenses quarter year-over-year. was total attributable XXXX, quarter. Non-GAAP bonus. for at but due expenses and RMB basis XX% in operating XX%, as X% absolute ended you for was decrease decrease margin efficiency compared XX%. a a RMB of year, operating are The last Tantan fourth XXX.X of significant XXX.X year. The points million the sales amount absolute focus QX attributable remained ] from marketing expenses channel spend lesser percentage quarter XX% was to was a sequentially. same period last decrease offset of to XXX.X total the the lesser was for XXX year-over-year to of personnel from fourth from and down both percentage from of and revenue of R&D costs. XX% previous the same XXX slightly terms R&D the costs. Non-GAAP XX% group last revenue X% compared employees, as of previous the operating R&D same from and the XX% year-on-year decrease X% total the increase to which a the XX% percentage The to from quarter. employees employees year ago compared marketing total [ as of such year from expenses X,XXX for of of Non-GAAP expenses revenue or on year-end

million, Total of undistributed tax for effective XX% Now tax the was XX% Without briefly tax tax of the an XX%. In fourth our income non-GAAP on XX.X expenses recording income QX, of a XXX.X around company was effective tax, quarter ROE. generated profits rate our accrued in million the RMB expenses. is tax quarter. income with RMB by which estimated rate withholding

items. balance turning Now flow to cash sheet and

XX.XX as fourth XX, of XX.XX short-term December cash, to XXX.X billion billion cash Net RMB deposits, Hello and totaled compared XXXX, of XXXX cash long-term restricted in December was As XX, operating the RMB million. short-term provided investments cash equivalents, RMB by deposits, Group's activities quarter XXXX.

plan We X.XX decrease quarter XX.X% year-on-year business or for in X.XX to of decrease in a on manage a quarter-over-quarter. At around billion and, RMB to Momo revenue outlook. to operational events of to continuous on to risk come degree, further order Lastly, to X.X% XX.X% decrease reduce lesser RMB we basis, range XX.X% year-over-year revenue-oriented our macro XXXX QX a to competition first from better estimated and a billion, regulatory expect headwind. the to segment XX% to due level, representing our revenue the

concluded top base. Please due mid-XX With our operational the adjustment the conditions, to to decrease Ashley deemphasize VAS the stating to decrease to to view by That me today's discussion. represents that, preparation user call to we operational revenue start side, forecast hand lesser to expect degree, this decline conditions, which On live operational revenue in back a our of [ are subject company's current be and changes. preliminary less on Q&A. mindful and, service the turn caused and centric let streaming market ] that

we're for operator, ready questions. Instructions] So [Operator

from [Operator CICC. ] question Instructions] Your comes Kang Jason from first [

for financial guidance X X any the and years? Language] [indiscernible] to [Foreign next

in market I the social [Foreign our teams overseas space and competitive value-added and think Language] [interpreted] based services advantage the made pan-entertainment in on like products. social

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guidance, revenue it I will [ the for Kathy profit ]. and As to leave

perspective and Revenue to perspective. at expectations from both Okay. and this near-term try profit a longer-term look I'll a

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addresses that question. So hopefully, your

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capital much how on going offshore question. payout are potential about pay out, we our think we cash profit compare to demand. reserves we first, the and the So offshore ratio when

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from next Chiang The is Deutsche from Bank. question Leo

] core lastly, Momo, broadcasting live has core in VAS the impacted XXXX? about processability to Momo how make And is XXXX. and current for question users? view Language] My outlook both [Foreign spending of the How in Momo core environment to the [ share management on the co business of the core

Language] [Foreign

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[ For the investment I ]. overall our will leave and to margin budget for them endeavors new Kathy trend,

later want we if good, we to opportunities, endeavors. Investment have really bit we a good we invest will trend we that the a keep for we new will a the defer little definite invest number more hesitate more probably a new question bit point, budget flexible at this budget point this budget endeavors. less. will because see probably until to answer at But with doesn't do Internally, we in little time. If RI for

really at there it's So year. to quite in put trying the beginning number that of a we're the flexible

I we some the And would is I whole the about meaningful any also this way expect personnel of currently I which and stable the On ratio or on to thing very to is think change XXXX, being decreases, to seeing the driver, charging the not the that way. negative a margin that growth cost that margin payout in margin cause the here, a that little to trend remained cost another relatively question, at with one fluctuate question But pressure but revenue could the is cost bit. going a which bit, infrastructure there as is be like level, leverage sales very group -- is do call largest a could one out there might line, it that cost has which I'm margin, not the factor this guess, significant. be potentially gross for little throughout stable, to that

at substantially the So that's will margin which seeing much to consuming expense on plan old the the increase come the we're resources. we of our business, expenses be what increase of as although wise, part investment new in line. Operating won't business, gross the

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is spending I to to that and the down headroom the course, new move Of continue to old heavily but this do ROI. aggressive And cut is business maintain the the on how macro are to, see dependent business we I to factor point, do see second if part some overall we cut flexibility good environment. we At said, cost. regulatory to want on like the on

my how the that's may play out thought whole on year. basically, So margin the current for

Operator, I it we're today. to that's think close. ready for

for Thank today. That does conclude conference our you for participating.

You disconnect. now may