iClick Interactive Asia Group Limited (ICLK) 26 May 212021 Q1 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for iClick Interactive Asia Group Limited's First Quarter 2021 Financial Results Conference Call. At this time all participants are in listen-only mode. After management prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. turn over to Ms. your like now the to call host, I'll Li, Relations Lisa Director. Investor ahead. go please Lisa,

Hello, everyone, issued to call. are and welcome online. The results XXXX posted company's conference financial results were earlier and iClick's today first quarter

Chief the will Terence and level the Chief You our provide He quarter up call thoughts over Co-Founder Executive turn first the for IR Financial the of strategy Officer before full distribution for follow to press ahead. ir.i-click.com. review at results Q&A. insights will then iClick, T.J. and the for our visiting quarter and and sign Officer, XXXX. website and can first by guidance and additional Jian give of back us remarks first results earnings high financial share download is call our second will closing section the on the of provide for release for on a list Tang, XXXX opened quarter of Li, T.J., his year execution

we today's Reform contain of under statements made Securities provisions discussion safe U.S. Act that continue, harbor please forward-looking the Legislation of XXXX. will the Before note Private

risks involve and statements inherent Forward-looking uncertainties.

assume turn measures the comparable press go call Officer contains information ahead. over Jian as different the Securities and that and these our Exchange unaudited Executive Commission. and the from discussions includes financial a now Co-Founder, earnings Please As be financial obligation reconciliation to unaudited also T.J., filed iClick's the I well applicable as law. GAAP measures. company conference information of U.S. press update the Tang. any non-GAAP in not release required as call this measures. will directly to please to statements, unaudited with is except note views may company's the Further such, and as included and expressed today. results Chief most GAAP uncertainties any release the unaudited risks materially under regarding other company's iClick's of forward-looking does XX-F The non-GAAP

to COVID-XX performance, Thank everyone. we quarter XXXX gross net and adjusted ongoing income. call, a and strong first reported began revenue, record EBITDA you, welcome profit, Despite as Lisa, adjusted fiscal the impact, with

XXXX, fiscal quarter have strategy data-driven the and believe we the continue in digital firmly as right right time, in China increase operating are structure our first transformation business digital benefit of XX% mention, inherent to as These opportunities help Not unfold. the indicators revenue. to accomplishments the revenue our higher excellent encouraged we consecutive first China. in in are as margin segment of year-over-year, in in benefiting Solutions momentum approximately record strong, of segment the quite reached Likewise, revenue, million, remains that continuing this recovery lingering the Solutions Enterprise quarterly quarter, $XX.X year-over-year, core total first up for record also up the in are reached $XX.X quarter despite effects quarter. our Marketing from the sixth levels XXX% [ph] the XXXX. to at proper for ad pandemic. continues spending to solutions clients another the coronavirus from of significant We revenue our some accounted XX% from Revenue much the our of million and all spot, XX% than reached financial We revolution for higher Solutions leverage SaaS-based in XX%, Enterprise that the we and segment

Solutions SaaS-based of call, opportunities. new in revenue develop a further XXXX in will segment year that investment our particularly initiatives, Enterprise mentioned and I in M&A and previous our be As foster more those

objectives. remain have clientele our tap past on from addition accounts product on years. our these among to strategy into and happy two offerings execution. details And also to efforts to the extending more key In mid-tier share the share the hit with experience we I'm you to continue the leverage We our gaining to market and track clients, to started

we partnership this analytics at and As solutions, of a mini tools announced reminder, platforms. the establishment, front-end strategic beginning mini SaaS-based with and programs Baozun, we the store including data a programs, year, will in provide which

While and has Baozun services respective moving other promote help target opportunities. will The communication. China. both to Concurrently, customers we services both each parties frequent smoothly, back-end handle in account infrastructure integration to their operations introducing to jointly in progress key been clients cross-selling teams are

and solutions resources from comprehensive to are demand integrating working on fulfill all currently We the clients. technological develop

We we'll ready. several are more are you also they clients pilot-case and on once working share details with

customer’s the presence only and One-Stop to from accounts see also verticals our industry the synergies to continue rapidly from number of gaining market key Solutions record. but track targets that significant desire, strong We not penetrate a exploring

to we them the cross-selling Solutions. to the higher Enterprise from in over smart Solutions address all from adopt with issues Marketing more the experiences we One-Stop witnessed Baozun, unprecedented will opportunities, XXXX and exploring developed With service have addition are technological face In we conversion private or from a clients Solutions segment, can from we products, the leading leveraging extensive seeing and domain from both iClick and data-driven willingness capabilities a rate also our customer and retail, account opportunities traffic, likely the when challenges Baozun. [ph] key our

the a the the as based being gaining account As mid among customers, segment. market this of higher [ph] key use market untapped share and huge aggressively on in number clientele merchant we segment, we continue

solutions series the Given needs with feedback the unique product, standard And market clients mid-tier different launched first we initial targeting some been a We solutions, quarter. developed positive. and the including key many this the from the has industry SaaS verticals. clients first iSCRM quite across of in opportunity, of have SaaS to introduced

from second year. faster and second new result, As half seeing financial of pace clients in this our start the XXXX, to we the expect some contribution in a of the ramping at mid-tier beginning quarter

that those designed of into tapping standard strong smart the to In specifically demand brands ice part addition in have was cross-border are in China, demand to based capture resulting called private the retail and another the aggressively clients, build revenue iSmartGo fulfill WeChat clients iSmartGo enormous domestic our and on to operate for fulfilling travel the the pandemic. marketplace to e-commerce e-commerce product brands helps necessary and themselves. infrastructure the maintain launched to we traffic owned market lost also eliminates foreign develop ecosystem, due from restrictions SaaS-based iSmartGo. domain the need from

and On for characteristics. three front, Ideally, product looking have offerings, M&A are the will both our M&A always to key we deeper. opportunities targets our scale wider

we cross-channel First, on WeChat not capabilities clients. products that technological to omni-channel limited including of our allow platforms, to us or but offer will manage more easily SaaS will behalf

analytics strong functionality modules enhance will solutions into. offer verticals current key industry relations more of our in certain focus will current can third, data our including customer data capabilities, Second, And will already offerings, that our we clients a base management. products have current they beyond their on cross-sell

Parllay a [ph] example automation carefully our SaaS our that we target of digital in expertise Parllay solutions and of accelerate acquisition has suite a of us has terrific and enhanced it how integrate Enterprise of Our Solutions. growth candidate into brought WeChat-based marketing is solutions offerings. the helped

opening of first our quarter financials. the developments and the M&A mature. exploring with concludes remarks. would Terence We to turn my Terence? become Li, And as call to will future share carefully, like them assessing I now and discuss over have the CFO, you, This any opportunities been to

in first effects to with of the Despite the market T.J. share Thank our the you that financial I'm and everyone. strong happy quarter Hello, coronavirus fully XXXX. an of has yet you, pandemic to expanding performances ongoing recover.

gross quarter profit, revenues, with financials many no record The records, adjusted [ph] first adjusted and first including set quarter net income. EBITDA,

XX% rising was growth revenue First revenue set million. from both and revenue by account XX% million, grew increased driven new a in Enterprise Cash, XXX% equivalents, of a due to million in margin quarterly time performance XX% total also and marketing the quarter demand our XX, Solutions Marketing [ph] market first contributions by quarter and million, first first year-over-year, total and Solutions the as to million was XX% XX, and This Enterprise year-over-year Solutions. Marketing $XX.X XXXX. Solutions of by cash higher growth from in compared deposits status for March December to campaigns. of $XX.X growing cash driven continued Marketing quarter Solutions $XX.X Gross XXXX our new year-over-year Solutions $XXX.X record, high. record to was million, restricted $XX.X as growth $XX.X in of up primarily year-over-year a revenue, quarter up profit Enterprise

Our growth balance sheet organic and both remained our M&A strong accommodate to opportunities.

March repurchase XXXX, XX, We through million. value have of of was approximately a the $XX XXXX. in And $X.X million aggregate purchased paid as XX, share December ADS program

my on will For I the discussion, rest results. non-GAAP our of focus

making first in accessed versus positive billings the income Relations up quarter can spend. $XXX,XXX recovery and growth performance optimistic $XXX results by $XXX,XXX financial from up release continue XX% at the with press which income. XX% future ago of website. for Investor and EBITDA reconciliations consecutive first and XXXX the for Gross the that trajectory. a quarter along in quarter of Adjusted the of Adjusted the we be first net our quarter XXXX $X.X non-GAAP of the was was XXXX You year-over-year. quarter these in in post million, first today of earlier find can first adjusted period million, a the of Overall, driven the and in net sixth XXXX pleased was will quarter advertising we quarters year similar are

we of recap issued measures in please information, press see further other today. For the release detailed financial the

have number that of have The Solutions this tailwind continue for the to confident available we'll to term partnership we term, accomplish full this lead initiative emphasized even opportunities And remarks, this over to in products gain market a market in and pay XXXX year among transformation if for like out be we opportunity us The of further of will Growing that, our and of for us any last digital a our As us. contributions can longer share, revenue companies a remain prepared M&A build profitability. China short some - be investment investment in front remarks ours continues innovate mega [ph] priority. the high prepared offline-to-online to trend. goal. powerful and potential roll and opportunities to a Enterprise

for Enterprise top to addition outlook remarks quarter to like of gauge market We the our we profitability our be from to the In to focus million. conditions be meantime, managing growth conclude million. note Revenue revenue these for now key the XXXX revenue XXXX $XX for between revenue bottom our year [ph] and is million. turn to will Solutions will my Solutions with to million revenue closing for In best and quarter write remarks. $XX Please and our line are between top is both change. we I and Solutions. be our second second With in million I guidance the T.J. can, for the and second growth to that that, our the between current $XX Enterprise with assumptions reflect Enterprise line million over and line from quarter year current to million estimated XXX outlook $XX COVID-XX, estimate on off as based million back be XXXX. call $XX subject between $XXX full XXXX to $XXX be for now the

Thank you, Terence.

established growth XXXX these expect are continue. financial We momentum and over that has in proud carried trends the to into XXXX

looking base We the the are digital the for market pace And we profitability in revolution this steadfast still segments digital at Enterprise capitalize of Solutions in rapid to stage. early online-to-offline leader committed initiatives to to are many The company. China. higher the view remain brands result revenue in continue Marketing our essential and customers growing margin Solution a are for segment the as to and transformation to

tap both help Solutions for effectively significant customers an for account solutions data percentage Our Chinese Enterprise driven see continue growth Marketing into brand behavior. increasingly Solutions total expect can revenue. of Enterprise still and larger opportunities We Solutions consumer to and to such

iClickers team making the are China. in reiterate to in to us all our certainly today's earlier who want on this beyond. happen, digital appreciation customers. iClick. thank to both you have here who for all help discussed shareholders to our concludes help I to impressed XXXX on at unfolds innovative remarks. them capital appreciation and customers in entrust confidence their to data initiatives, strategic us that And the chosen businesses, call. and This revolution I Our focused my deliver the want all thank as us seek I results management our want grow to our Thank really our solutions I joining prepared have

We please will call ahead. the to go open now questions. Operator,

Global Thank first you. comes Instructions] from [Operator ahead. Kinstlinger, go Our question Brian Partners. Alliance Please

Great. taking so questions. Thanks for much my

you do the to with update HubSpot partnership's and First, meaningful making those might you're us drivers business? the more think progress can growth Oracle you on when and your become

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your Thank you question. for

in customers. and tool more product. to functions is very customers. further rely the last And companies. product on are with a time, actively iSmartGo the time HubSpot, our will became it part as a with ecosystem. and because private in it the them. year, overseas with product future, the promoting mentioned domain of we're make But to cooperation And And our customers will one aware I've QX will to called targeting more cooperation that iSmartGo. help take this to this are we the the our of two to this we've customers going launched tool rather customers believe this these promoting market solutions for a And useful time, and roll Oracle overseas brands going actively As specific out of we to Korean overseas cooperation Chinese this But WeChat take long our I our

Great. Thank you.

question Thank Cheung next you. Citi. Please ahead. is of The Nelson from go

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management you results. on thank taking of my So set question strong for quarterly solid and the congratulations

two I've questions. So

is guidance The first regarding your annually. question revised

the will a is the on Enterprise Solution revised be And my or Just Enterprise growth of the mid-tier to due guidance? to client revenue the question clients mix second your it incremental of certainty your partnership? Is in wonder whether higher Baozun Solution. the related from driver

year? more mid-tier KA mix whether this you're track Just wonder you. color clients and to the meet on you management, XXXX mid-tier Thank can target on if current and client provide of

is starting This believe projects market, some that kick first the also we we run solutions, than your we demand the the SaaS the to general some before in the numbers mainly the that revised on of June, case right because earlier would market. maybe than to in start is kicking sometimes and about are for Nelson. we Thank numbers, so that question standardized enterprise And guidance, Terence. the see half. that And we second in now you, with original from secondly, guidance maybe products launching of Baozun, from hopefully some our stronger

So like waited we market know, to more now a have we a that right more of that's and you that confidence showing why kind on bit numbers.

part of to I second question, think T.J. the would On the the I address questions. let

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QX been outlook lot from of year, for your question this operational we've and seen very our progress encouraging done mid-tier out to year? We've As provide Well, about early in progress. And to already reach have customers, And to we distributors the a acquired bought to the some we've who the We've leveraging already customers. them. this work. adopters us. standard services SaaS also products

being very the So is is initial feedback positive. -

I our year. contributions customers the since we'll these revenue therefore the base in As kicking customer will as mid-tier this to And second revenue. purchase recognition, and products, our - mid-tier quarter the well, customers as gradually recognize grows, financial the in think we see that from

XXXX we're going likely is highly So year. to I mid-tier that acquire this that it customers think XXXX to

much. very Thanks

Thank Chong, mute or from Jefferies. ahead. Chong Please line open your is did with your our you. Mr. you go next line? Thomas comes question And

industry? GP Thank Thanks, the about for management Language] for as the [Foreign as well terms or merchants Enterprise merchants, trend different mix number you. the taking Can the management the the talk across of of margin Solutions, merchants, penetration questions. size my well as in the as the of

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Well, the this your on directions. Thank also you question year for focused customer two Enterprise about growth, were Solutions. we

first And bit whole key The be to base. year is will key we're going And And in well And we the with account we mid-tier very a cooperating expand target to products XXX clients. another are clients. to the as target to XXX accounts of SaaS our account for to the XXXX over And Baozun. to Solution year, By merchant the going added XXX further customers. this will progress in the - XXXX to XXXX, we've clients. to had the XX this we on of direction year, to acquire direction upsell the will And to this customers, we first key likely based in accounts Marketing quarter seen, sell standard end continue XXXX, new acquire little achieved. key client our as is second them. be way, is

This is Thomas. Hi, Terence.

gross on Let profit margin me add your questions.

a standing accounts, relatively better, Firstly, could range. on are because at be most expenses know, and XX% standardized before. that, about be our we is And been you to expense that it actually margin. high still key will R&D at we at margins of And even XX% gross it standardized profit products, have XX% and of believe more that

kind two we you. current the the of that a Thank that's of So have. profiles segments

you. Thank

Next Cheung, line is Julian Cheung of ahead, Bank your Please open? of [ph] go question ESG sir. Mr.

outlook [Foreign been the question saturating mobile quarter. My and you. translate publisher also, impact upcoming they're What's will Advertising billing pandemic IDFA, Yes. will they Thank iOS Language] marketing targeting its the I'll in management XX and from recovered side. across to verticals management? launch projects? be attribution budgets our the management's recovery for with our Solution growth account the in the Marketing and of and the the the the enlarging strong relates revenue impact for what to deprecations and Congratulation accuracy business. on revenue our And and China advertisers chain myself. has industry upon our from of

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your Well, such the their many of in is the retaliatory This put industry outlook. of China hospitality, question will see controls as I pandemic well we've industries, level. thank fact that and to question. normal travel and under world, advertising both due recovery for seen is rest the as will have XXXX. this they largely the recovery some getting industries first the the in you year about the advertising closer to and Yes, budget the take for seen advertising

the and are On some adverse impacts subjected hand, education, regulations, events. from one-time online there are as other to industries some also such

business St. that different the KOL will John line you on year, business spending on addition, And to But iClick, for if focus from healthy strategy that business. Solution negatively industrial For and going is steady And in incident And growth. our more advertising with affected this healthy year of has this the you we're see Marketing Solutions our cotton developing example, quite apparel Marketing has Solution therefore, are in related industry. contributions BCI the focus revenue is look at the of enjoying been to Marketing growth. business, clients the and balanced. MCN this

in conclusion enjoy in steadily. So iClick our recovery Marketing will also XXXX, overall healthy industry will the advertising grow Solution and business

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businesses. the on As to about Solutions policy the the and question reasons, of impact IDFA had limited there second business are are and your I several policy, the a industry as several part us as and limited understand far this There impact also Apple's of reasons. has advertising on has Marketing

First And to is was is the limited. is small. And the this Marketing so for launched. around China market newly second Solution Apple's Apple very business, our policy share in exposure is our XX%,

first So time phones, of upgrading see and it upgrading out operating of upgrading opt or the the app. you customers will to will some whether cell take may of require Because not. systems

industry hardware they marketing perspective, is time. is So actively And take also this all advertising perspective. the policy. from also around industry or alternatives this exploring from And

of so had therefore And around limited think the placement Apple understand, and impact IDFA us. has via So XX%, just app IDFA as very on is we we as far limited. the policy - that

customers rely And login users. actually which depend provided customers by on the stage, first-party on data will status so on CDP and we heavily at our when serving current platform, iClick of centered very

question. to So this answer your is my

[Operator you. Instructions] Thank

closing turn no I the Please questions, to the company to over back go for remarks. As ahead. there call are further like

us for again today. once you Thank joining

please free on you provided to Relations further Thank department iClick's our If questions, have website. the Investor you. any feel through contact information contact

concludes the This conference call.

you. You may line. now Thank your disconnect