iClick Interactive Asia Group Limited (ICLK) 24 Mar 222021 Q4 Earnings call transcript

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

welcome fourth results to year and online. everyone; Hello, iClick's results today are call. earlier XXXX quarter conference The issued Company's were and posted financial full and

earnings download and release by the distribution our website sign-up section the IR You of our at list press can for visiting ir.i-click.com.

management remarks in In prepared addition, English. their during will give the call,

discrepancy, for will thoughts results his and management's Officer, first full us provide execution questions statement share financial the take David and for provide Tang remarks translation. language the During a the in Executive a both and of year Chairman, for Co-Founder of shall third-party turn in year then and we provide and translator XXXX prevail. In full ''TJ XXXX. will going Financial any year over of and is additional and are follow Zhang, results on Q&A quarter will translations the and Officer call call the give in quarter Chief Mandarin, only. case opened Jian TJ the high-level consecutive English All fourth original quarter will purpose first for will He for forward. on Chief and our iClick translation before back to XXXX session, closing the Q&A. insight the convenience of review '', full strategy guidance fourth

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

uncertainties. and risks inherent involve statements Forward-looking

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

year X% since multiple $XXX XXXX, we despite by year-over-year of in to to to XX% managed $XXX solutions profit Lisa total growth iClick, you, to for in business welcome call, and was triple year to record Overall, million. our headwinds. enterprise marked to the growth second and business XXX% year-over-year strategy our XXXX another revenues our solutions Thank XXXX, digital balance, the while marketing grew of enterprise consecutive by grow million, XX% currently gross $XX exceptional while respectively by $XX launched by by and gross total profit over and marketing solutions in in million everyone. our solutions year digit transformation growth year increased million revenues grew

base, business. potential long enterprise term with XXXX, extend which advertising solution synergies of advertising overall to regulatory second Our China's in demonstrates a growth with our ahead. performance growth, capability. marketing impact fourth our in segment we digital aim remain several great confident strong These execution led solid sector macroeconomic started economic China's patent clear the in contraction said this, the company's industry which and in our into core of advertising slowdown maintain tensions and solutions Shifting landscape the XXXX in the our translated and to geopolitical have and quarters events XXXX. the of vision uncertainties and China's coupled quarter Having continue may client half enjoys to

also are believe potential dollar mega will about by a be trend which China, excited trillion enormous we market. digital brought seen the the in transformation We

business $XX right which our XXXX is reached earlier, the almost mentioned on solutions As million proves has enterprise track. zero already company contribution revenues the in compared in XXXX, with

vision repeatedly great have not most SaaS fixed SaaS our previous China. plus in we business may mentioned behind shaped in we As in model. conference pure that the also years, With past business our our the appropriate the learned calls, our over collaborations vision model be a few deal

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aspect intelligence the to business? and in far when of the continuously expansion acquisition, the will diary in solutions. brands in Within Plus journey marketing, a [ph] to compelling, and will development This owned the leading solution competition of brand the spearheaded optimizes remaining step solutions the can services, external only of on eCommerce operations, business, the of acquisition coordinates iClick in difficulties provide branded Changyi partnerships, facing subs covering business hosting go clients at extremely even resources interest very teams assists efficient hand clients. furthering results have iClick software market a can SaaS Plus independent CRM internal and a a our leader profiles. process in brands, we enterprise help integrating and earlier the of equity of our provides I'm provides After We The model. bringing changing hand proud solidifying rapidly recommendations, We of and scope dynamics and every growing brand's and our with cycle clear and refine opinion and the digital operation are of depths China, wholly which for announced the data we the China, brand targeted iClick. addresses this our aim the marketing the fully assets every completion execution including provide in and path execution become key reviews vendor that will cloud. retail full to by of that solution accelerate effective allow iClick Changyi, consumer value believe you the highest in to pleased on capabilities and are and to accomplished share SaaS offering incredibly what with we sustainable thus in

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in of this capital higher higher said, in solutions higher with our quarter solutions the and economic and devote growing of starting fourth marketing more reduced clients margin, intensive demand we strategically order policies the we of the Given our Plus are to strengths as enterprise these investment we XXXX, risk margin That business the lower more development, to sound have business impacts iClick's on SaaS convinced shifts. and that growth for fundamentals business our capitalizing we of remain the remain solutions. potential and weather

for conditions X,XXX and plus we strategic through opportunities drive enterprise We extensive clients to we marketing shifting As leveraging location to our solutions between recognize remain adaptive will XXXX resources. of believe our value leverage cross-selling our look synergies solutions further across iClick. to that and and needs beyond,

and growth adaptive sustainable We mergers strategic growth. sufficient term ensure and for provide concerned, term long investment designed long stability to have undertaken

from economic headwinds. buffer to strategies our of differentiators when peers iClick enhance We also look our contemplating forces from key the to

and account strong support year provide significant Our new iClick and growth quarter experience clients financial with ongoing and brings January to financial year. against uncertainty like key integrated a these results. of and XX base He full will relatively opening to business and turn our are partnerships Director to my over microenvironment differentiator opportunities for XXXX was late solid foundation years appointed call iClick and would of the I study financial in CFO, operations. Zhang, remarks and investment and management, CFO clients concludes a to stable our provide to the David our now beyond. fourth discuss in year this this David This over

go him We ahead. are our welcome please team. to delighted management David, to

I of $XX.X by you Thank X% our record XXXX. XXXX and the year-over-year, you, revenues same pleased comments scale key a compared of of of environment, million the profit. for by the with few increase with culture like revenue full XXXX million challenging key gross share period from including by strategic macro for would driven highlights TJ. Revenue We increased in XXXX. to XXXX full solutions. performance $XXX.X due year-over-year everyone. for reach of still we of metrics, fourth number year the increased of and our my to Hello financial highs marketing enterprise I'm to begin year fourth solutions. was to quarter down significant XX% of reported our Despite

campaigns. market marketing business solutions marketing grew for separately, revenue $XXX.X up a from primarily XXXX specified as each at year-over-year, from growing million to X% action result of demand Looking

fourth behavior the reduce XXXX, XX% risk $XX.X culture higher was potential focus marketing lower marketing enterprise we the have solutions. which up by XXXX dollars data of solutions started integration increasing the to of for XXX% margin of year-over-year, the to business, consumer primarily years needs excited to the very online of revenue million I'm transformation. consecutive primarily as higher achieved US US digital the year-over-year, growth solutions business record from two within order solutions to dollar For and million increased in level and and to on enterprise strategically share results for US$XX.X offline due

$XX.X from in price For Gross was the revenue XXXX, contribution up was profit of US$XX.X margin Gross for quarter from year-over-year quarter XXXX up result year-over-year. enterprise fourth year-over-year. in to million X% a XX% dollar higher of XXXX billion US increased US$XX.X XXXX, fourth as of by mainly solutions. profit million solutions

deposit December time restricted equivalence, December XXXX, company As US$XX.X XXXX. of US$XX.X of XX, XX, of the cash had and cash compared million with as cash million and

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

EBITDA Adjusted US$XX.X with the we additional for for at our the grew the was compared and press US$X.X was million net million of which R&D. Adjusted XXXX. US$XXX.X quarter website. operating of fourth of new for million resulted be Investor the primarily developments million XXXX. with XXXX Relations from The with million of XX% EBITDA an release XXXX adjusted early US$XX,XXX for decrease of million reached find of Gross assessed results was loss million fourth for for Adjusting fourth XXXX. US$XX.X business US$$X.X with of $X.X compared quarter US$X.X today expenses this the income can minute EBITDA calculations million income of for Adjusted adjusting may for XXXX. culture fourth adjusted the US$X.X income in XXXX XXXX non-GAAP quarter and XXXX compared You quarter of US$XXX.X in for was for fourth net XXXX. and by compared income in billing year-over-year to posted the

December please of today. we repurchase information, detail XX, US$XX December in XX, the program of may release company purchase Of which other to with share value the it further own million to XXXX. metrics ADS XXXX, aggregate XXXX in December its press recap For see issued a the XX, financial from up

on US$XX board US$XX million XX, August share In of company addition, directors our XXXX. upsize the authorize to program the minutes to from

of purchased share board cash to value a which XX, X, January new had purchases aggregate in repurchase XXXX. the were only December As directors in XXXX, XX, made December program XXXX shares In our approximately from of US$XX of value XXXX, December the up aggregate company approved with US$XX.X million million. of to

Now solutions available marketing reflect release, iClick press on the stage. our Please with is impact. are this of the face environment, market XXXX. These current with our I would the provides of conclude of my conditions information enterprise based outlook Because revenue COVID change. the year are pandemic macro and Based that to our solutions outlook strategically full for business in following outlook the current process XX subject marketing know and of this of first assumptions adjusting the like current today to our we for remarks at gauge as of in of don't quarter provide uncertainties solutions we outlook. on

For million and between enterprise million. first XXXX, revenue quarter expect US$XX we solutions US$XX the from

For US$XXX US$XX Enterprise XXXX, expect year Solutions and full million the from revenue we million. between

Plus SaaS model our in digital empower Our clients transformation.

XXXX, to about are TJ remarks. out of call enterprise our turn over Looking With we that, now back solution closing I very call to further the business. expansion optimistic

Thank you, David.

at the We to is China trillion loyal that better entrenched driving is and ever is way across new mega digitalization capabilities. interact the a than opportunity transform to involving ability is take to service economic the as on appropriate, consumers retain market our a That long envision is open capitalize do through course remain our iClick customer's that in transformation and dollar the in is markets, we, the and We vigilant We companies to need and clients and offerings. convinced meet are needs all that with deeply is dynamics more on iClickers helping term involve forefront that success of trend recognize adapt and that seriously. it delivering its focused changing what responsibility dictate. contingent continued duty to developments ordinary on services modify as of extra We challenge forces. our iClick

levels strong continue We as our the execute our evaluation strategy. forces our continued growth value more and even broadly as are capacity that We markets that that we continue recover have in revolve. growth succeeded our reflective optimistic which by are and are true on in of adversity two evidenced to uncertainty, will to that phase to foresee

We eye to thank and built, of have We the clients, support. of profitability on the improve and and and company. continued some are wish iClickers, belief material dedicated deep the we devoted toward the it you have we where strategies in clients, to the but and for in challenges everyone continuing the has to innovating implementing our suffered, including stakeholders I now. and face our the overall promise to microenvironment deliver we key everything both markets shareholders thank business our are all with acknowledge or clients, partners capital

for the we control, our in to of promise bringing enables capitalize continue solutions on the optimal outside best on today's all remarks. Thank factors for represents conference the continued Thank deliver iClick will today's the that for call to clients in you our digitalization do and to concludes participating call. Beyond This support. our prepared mix your you in us joining overtake on China.

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

[Operator ask instructions] question. Cheung Nelson comes Please line your from Our question from the of first Citi.

would year path question you advertising you about next recovery be for Solutions about My additions retention forward Enterprise sector for and going my questions customer your expect and new Thank the when outlook on number this management would and expectation situation. of is the for

customer David take addition will this This existing about outlook and question. about Solutions. will TJ. invite second question Thank answer you question of Zhang to for and year the your Enterprise customer your your is I I the

China on we companies a with you. year, Thank cases, think for of business the other ad risk has views think businesses, there lot challenges business, of businesses which lot shifting demand will the scale are the this quarters. retaining continue business And as second we ad those ad the experiencing And because been and year, the macro outlook synergies COVID and will company the of resurgence half to will in this while core in severe and very the industry to in this regulatory other in take on weak XX back since and high the last the reasons the including generate suffered believe policy I landscapes, year margin, term similar China this as as well some market. about business First share we that have focus initiatives to constituted that short that following very environment may core are businesses, where the uncertainties in of businesses. shocks known economy, a well lower the I

is This David.

second retention year, of business take Let me QX from last to question. around and but to your the have between yet, I past customers don't will this revenue year there for I XXX can you experience retention contributing be our a were Enterprise as In Solution specific QX and XX%. XXXX, tell the number customer that the QX rate

you. Thank Right.

China from Next Please your comes Colin question Renaissance. from ask question. Lieu

Thanks to TJ for two and questions. David the questions. the have I raise chance

solutions. industry? term from And medium actually year's the this round And be of and one second the first time on wonder regulatory the months. business advertising to changes three our the will I SaaS industry was the how The over regulatory the enterprise landscape in about is two, the question going about long will is several last shape industry and like. changes impacts our

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for thank is Well, you question. TJ. calling your This

Let take your me questions. two

about on years. have previous privacy First the personal in all two past is three of conference the mid implication long regulatory the these like panic the but and have we've second privacy all on industry tighten question last calls, this data people for that started in impact about and Well, will to speaking, and mentioned half advertising to its have the shortly from the example, security year, it require or of half in the next first the that seems the seen year policies term data about relax, industry impact to worried regulations active in some them to them. security an regarding we policies of personal the in the to because regulators

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regulations your As comply short in as enjoy long believe as long term spite help usage, businesses shock. efficiency, that I benefits, term products you customers in will with you long some and improve the as data to

of Second, source are measure I industries term located. long impact may the industry have a regulatory are second that brands the think where targeting advertising on

be sudden, second number products that brands for advertisements some and regulation about instead the they substantial very actually of reshuffling. were the very it's these help year and from speaking, were verticals insurance can solutions, profound industries advertising helpful on don't need is populated to believe industries term heat industry need hard reshuffled still lot on advertisement last will all sentiments and show of to do economic are first The with offline how because there demand very services subject think the We've macroeconomic and impact place our series help and place industry. they I the produced from range question. the will speaking, long business the industries your be of disappear a example, those answer to our belong. of pandemic. to Well sales a education, businesses This and a product these industries where and I products just example, industry to advertising of will cope the For my prices. as of particular our are hacks. that have this after of COVID-XX Well, eyes, customers during but advertising services with enterprise the I think seen many measures these impact daily services control our in and that A question, and

programs. operate help provide in operation can to help merchant digital And offline we example, them online include to this offline by And the inventories their businesses For online outlet with we mini way, can in maintain in which ecosystem. solutions, WeChat we the inventories. the the then online absorbing them

actually which year the the enterprise this will business plan proposed China -- a and for owners, in also that pursued online very are helpful as digitalization brands as complicated many digitalization XXth channels. those to proactively businesses. adapt And weak sales media to and digitalization, the both for And and part these online And new brand well actually brand to macroeconomic well I help solutions well. And think the think China's of the respond as Chinese I five quite situation trend addition, we help we as increasingly ecosystem. during our by brands is government. pursuit our their have enterprise long-term of are

and the ecosystem consumers with their we to For help help we enhancing short their attract brands interactions brands and in example the, to and ecosystem, loyalty new the WeChat increase other campaigns. in in media consumers video customers. to the and, to use with Therefore interact KOL media

weak all. marketing in a So to in situation. place cope think brands product services all our macroeconomic services help and products and that actually serve with already have of We will customers these campaigns, we actually, fleet put to and complete

Right. Thank you.

from comes Chong go Please question Thomas ahead. from next Jefferies. Our

for my question. management Thanks taking Thanks.

So questions. two have I

about The is question first M&A.

Mid-care and any second are any clients So M&A what Thank is And then in you. the future considerations? XXXX? there my there are are M&A we -- plans and for clients the question goals are KA

I question. you. from Okay, take two questions will thank you for

if part Not And acquired know acquisition plan. fully you long we our you'll our consolidate enterprise ago, quite are and for, following very well. purpose been from solutions have, this of M&A integrated capabilities. time we a the have of including solutions, teams you is to about term its Company about were products, the us this and enterprise is capabilities question because service First

with to but to opportunities cautious strategy ecosystem. we've clients And of for half looking tools penetrating on seen added customers due our And WeChat say last first products KA KA the along, more Well, different use we serve them. different been They opportunities medium, client performance up so but KA China, as about of started good clients, to programs. media to promote out sales student global larger and second XXXX, have M&A and have ecosystem, not year the since way, as key, We a here, economic focused second to standard so may customizing online keep as a is strategy. than our wise, KA is to all very the since gradually the to to we market much operation customization and first base. can some is great to value the a And mentioned while slower the the KOL since sales is term ecosystem the for including now, an this thing other question and is now respected, size condition of to business. customer to means aim the half been clients, still clients, we in then another will course, the mainly actually our clear. staff will grow to clients that KA an, clients. week develop we is your That programs Well, very customers. mid-tier SMB in right that we business early haven't by be the on and still Well has big is this will out in the make we Well to SMB size to much we we And to efforts Well our to will complicated into clients or and eye continue provide but we about very carry standard butwe've past, help KA potential strategy develop long products the China. these that, services

All right. you. Thank

Our Alliance next Global. go ahead. Please question comes from Brian Kinstlinger from

Great. taking Thanks for my questions.

that ADRs[ph]. expense your in recognized fourth the your How marketing on the solutions, do not side then and managing you With the business challenging for And is losses? of uncertainty limit you the can with bad low plan coupled question And solutions markets debt to the the capital segment? the enterprise second to quarter? my how strategic marketing Thanks was of much margin is revenue during quantify

Well. you David thank for your Brian, question. This is

measures, a industries companies, As were to series X the bad two provisions. total some hit which up hard. of Well regulatory dollars.last for central of million a last the with we of year lot has provided debts years here the government come has

is is and So Company these Company control. one and a eCommerce other two companies, gaming cost the to a

difficult And obviously think time. have cost in is. that pretty we done job now control, a I good a it's

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I'd back remarks. to You Right? the no as turn to there are call for questions, like a Company further closing

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concludes This conference call. you. the Thank

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