iClick Interactive Asia Group Limited (ICLK) 30 Nov 222022 Q3 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for iClick Interactive Asia Group Limited's 2022 Third Quarter Unaudited Financial Results Conference Call. At this time, all participants are in a listen-only mode. After management's remarks, there will be a question-and-answer session. Today's conference call is being recorded. the to turn host, now will call your over Ms. I Investor Relations Li, Director. Lisa ahead. Lisa, please go

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

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

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

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

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

Forward-looking statements involve inherent uncertainties. risks and

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

uptick Thank in the you, welcome sequential the resumption quarter-over-quarter in combining total of increase our increases And revenues lockdowns gradual everyone. X% easing of after how and economic share measures past related driven growth and were We to and execution business the will strategies the Solutions our Lisa. associated by revenue over and activity. with I solutions, marketing X% the for quarter and business first call third COVID XX% future. improved in in modest containment quarter performance envision saw in we for a the our the quarter. Enterprise and These largely

demand and also contribution economic the fundamentals continued see XX%. to with SaaS and increased recovery Enterprise growth. for new remain the for We our activity further in business are resumption of high our that will hitting technologies pleased a We sales about innovative turn plus of business record and drive services optimistic Solutions revenue

notable during and the value drove value. core clients the roll We drive rests services our continued our and future as to us assisting cash, market positions exceptional strategy believe valuable we that In implementations and this central proposition offering the to a value accomplish breadth macroeconomic our core and of is to success, as iClick value reserve ability solution to allowing across on innovator our out in to we remain in in maintain achieved operations, This capabilities leading we believe our diverse the optimization continued cost have for headwinds, our conditions teams addition, intact, our to sufficient customers strengthen rebound weather quarter improve. goals. solutions products

CPS full with e-commerce build collaborated Jingdong to we inauguration stack private Technology Alliance offering in aims integrated JD.KEPLER or retail Technology domain Cloud Service the and apparel empower FMCG Chain Jingdong solution example, Supply services. Changxun affordable of based through with cosmetics Solution all Commodity the For a and industries Promotion solutions. This retailers SaaS ecosystem upon and Jingdong iClick's smart luxury to

through recognized awards. numerous were industry also We

first we of example, third-party the Award. the For Alighting provider of by half first service [indiscernible] XXXX

like receive go call Zhang now industry And strive financial results. industry ahead. remarks. destination, would our our please remain our strong discuss to turn David, I are to leader solutions my honored We we to wide mix. the to over across opening a and by third David to concludes the continue This CFO, quarter

you, XXXX was $XX Thank million, same share to of for of will key third compared results year-over-year. I of for our financial XXXX period Revenue Hello, TJ. quarter everyone. by third XXXX. the quarter XX% decreased

million pandemic $XX XXXX $XX.X high at impairment and with the the value XX% million from of for solutions non-cash was partial the quarter for solutions enterprise compared mainly onboarding of XXXX. represented the for Total for management, million, XXXX $XX.X business. our XXXX The decrease charge decreased third by $XX.X profit quarter in XXXX, our of quarter third Revenue $XX.X were XXXX and costs overall shortfall compared of due expenses. third advertising challenges revenue. in million staff compensation, between share with control was promotional a of Looking shift were individual Goodwill was $XX.X with carrying of some was third to affected million the XXXX, million quarter result solutions the for million third impairment and million implementation compared the $X.X XX% of changes recorded for third based with $X.X business marketing primarily This progress from of the in market the Gross as of for our aligned fair XXXX. the value to of decrease as million, unit expenses of excluding loss which $X.X Net decreased quarter advertising the quarter China. compared compared solutions of away million operating and with due the XXXX quarter a third clients reporting equity estimated XXXX, investments new quarter impairment from of from and quarter of the XXXX $X.X million to in risk from revenue segments, industry. and due third loss of impairment $XX by $XX.X September for with for business million of marketing XX, strategic million. this operating resulted of million of of of slowdown mainly $XX.X the $X.X advertising third totaled slowdown the

XXXX, cash restricted and and $XX.X cash million XX, equivalents, term with the as $XX.X As December million of had cash September deposits XXXX. of XX, compared company of

loss GAAP income with of For million for compared third quarter of of of quarter million, million, the net third measures, the earnings for third of XXXX million $X.X was $XXX.X $X.X of third third of adjusted with the the third million $X.X quarter was billing non quarter million XXXX, Gross quarter a compared net $XX.X XXXX. for XXXX of in for compared $XX.X quarter of was with adjusted for XXXX. loss EBITDA Adjusting XXXX.

turn please see the issued Thank we in more For now With further release I'll you. remarks. that, today. information, closing TJ the for call press back to details

Thank you, David.

quarantine suggest in may on geopolitical [indiscernible] supply conflict curtail announcements impact economic activities, restrictions recent lockdowns the short term. chain world government's still travel and and easing bode consumer operations business and for signs of around that Chinese sentiment, further disruptions company's performance While adversely requirements well might weigh the

future. the economy, its government. better the conviction to overall sustainable greatly as Congress report Chinese well the from SaaS for mega XXs We commitment consumer iClick we digital the clients the consumer strong steadfast ahead The so of by beneficial term, to longer with will our development. the highly the cautiously deliver optimistic enhancing Solutions intact growth servicing can the upgrading top acceleration improve. solutions further supporting seize remain continue explicitly product digital segments indicated transformation and enormous China, and nevertheless In plus offerings importance that Enterprise are strategy confident be economy Therefore, trend capability and tier of centric we party of and total expect in conditions recovery our opportunities as our in of as the implementing

resources geopolitical operating remarks, strategy ensuring parliament regulations, though provide how has been a conflicts environment XXXX recap my last has second by resolute us a maintain our and shocks. in cash year. of these help I remained of environment half withstand we I to to sufficient uncertain constituted defined the at for closing Even would have last like Before macro since year, and the that we entered execution the us end of micro end in we

approach. this million within have borrowings. at end $XXX $XX business margin Our as as Consequently, the Solutions cash wind in of a segments of and is high cash, cash compared as risk strategy September, basis to reached XXXX, lower the the approximately of of well with and down reduction our Marketing end bank our almost million the equivalents operating higher

support have Solutions, invest economic to Enterprise In well we continued higher rebounding which in and of our activity to prospects in of iClick the is improved transformation the long R&D trend to momentum. drive core strategy future associated China, as growth the strong digital long what recovery addition, and remained capitalize margin term believe in positions will our the expenditure relatively client fundamentally demand. our Thus, investment in is constant. business we This sentiment term our has on

been streamlining please management further today's our being the through and shareholders strategies, questions. to and other and be who with ourselves our cost Thank my again, for a continued results all expenses our clear that, our by number have of course, partners, for open operations proud carry In concludes these execution all, deliver to you our in stakeholders vision sound believe the solid the continued call forward market. and through participating your optimization, remarks and volatile we in of iClickers for wish our and to able I all sum, work With in driving in we And thank Lastly, parallel go will we clear digital floor support. so iClick clients, conference periods. ahead. [indiscernible]. we This establish acknowledge now for to are of dedicated we will better Backed have reducing Operator, and support. areas. transformation a

our Instructions] ahead. Nelson [Operator will come of Cheung And you. Please question Citi. go Thank from first

my advertising and taking and the as project myself. regarding of [Foreign And to for question. translate my business. year in outlook is be would My business you. management well? COVID Thanks quarter fourth on Language] implementation let fourth into question what the quarter impact ES of is Thank related year? question So I'm the next next the first wondering the me second

QX, Thank QX the ES your questions trends for correctly, [interrupted] [Foreign understand I and performance about If is with of our saw your Well, are MS business. TJ. or you Language] question. in compared This businesses. outlook

I measures COVID a under eased. In think the due clear. QX, second are the related the quarter lockdown. very were cities And control were to reasons of these COVID, lot in

And consumers the performed business business, because and for business for interact However, -- COVID slow making the seen still assets very control investment. there. the digital needs and their the Therefore, to ES in remain our help better. prudent trends better opportunities recovery, many industries speaking, them we trend with speaking, including ES but unclear. the ES strong. clients' better measures of Overall customers their by in demand the our future digitalization industries, the of not our many are providing related has manage some Relatively still we've is meet always

of quite our So amount there is Therefore, is a always businesses. the ES good. strong pipeline

clients' and of the and control with then have -- clients interaction takes However, lockdown a about related not kind education (ph) make then our have to a lot Solutions weak. in it very the speaking, e-commerce the industries long of brands recovery advertising logistic to the just industries been as big of new because put a to entire delayed some off, our usually solution But performance a other Marketing strong. advertising clients, and have And us during some and adversely seen process. measures tightening been [CCAP] control it advertising the to implementation than Well, decision because the for due the overall year, demands clients. entire QX. industry even such and Actually, many year also our time actually as particular, entire gaming QX of adjust the onboarding working with QX, their government budget. requires have to we’ve And last measures, business onboarding therefore industries this business, disappear some due but the better COVID is of the Since rather affected. or regulations. is facing started the some companies, or In

weak in that this actually forecasted So Thank wind to And year. with early remained that's Marketing made business. question. some marketing down strategic our And and is trend overall for the my we choice decision is your solutions line you. value we our have say speaking, year. answer This business this can Solutions to this

The Please next Jefferies. of go question comes ahead. from Thomas Chong

[Foreign Language] taking for my Thank management questions.

I two is question questions. business. Enterprise have Solutions So My for first the

new so second acquisition our view question strategy Thanks. our should and for advantages? how and business. And Enterprise Solution is client [indiscernible] how how So for my clients existing competition is landscape we far? also the And the competition and

Language] David. is [Foreign this [interrupted] Well,

QX good with Let me compared first rate. saw retention question QX, the about take your a retention

many to was competitive retention of more customers would terms And like to quite their number, invite You TJ to was that level. have the customer rate and the can sales. our question rate see I as landscape, existing high the answer retention about And XX% to your contributed amount, dollar question. XX%, in

Language] Okay. [Foreign [interrupted]

answer about me landscape. question Let second competition your

SaaS think some have providers. China, are at track, I in in still of business a models including service giant this providers, bases. companies players also and there And process different companies these the lot early and its And customer digitalization stage. is

us And think years great lies I product to SaaS through service the kind to big competitive we very winner big accommodate build companies in to business model is in market of been is for customers their business our for me, will we that And three this past develop very key to will that accumulated edge from and a China for be different more with MS plus this over to the future. sized we XB a these years. medium not helpful X for three And is business. advantages. and market next XB our the serving fact serve two room That's large in players. have is digitalization have that all to the expertise advantages have model leading up five our us, our customers. for business competitive built up why think us XC a takes the X plus SaaS to is plus

comes from ahead. of question Kinstlinger Alliance go next Partners. The Brian Global Please

Great. Thank My my are [indiscernible]. you questions taking financial for questions.

of high? And second, is which led you The to first margin continue in the quarter gross this the one is, second revenue. improve And revenue what improved, better much then lower DSO you can discuss margin better in enterprise collections? to is increasing, has the than have has dramatically DSO third a Your why higher quarter? mix can you still both segments quite is the much

we'll recover. to Language] trying margin to I'm the understand [Foreign see So when start

two [Foreign questions. your Language] [interrupted] of Let take me

QX, relationship we valuable good these margin economic increase a with customers. offer maintaining because have The is our we in the control question And days The been services QX. power. first related them. valuable we've And to about collection to these has measures, a already the bargaining turnover putting to lot XXX to our COVID of QX down condition customers has these poor, contribution increased. trying efforts the gross of we But And with It's usually some a existing When why Solutions seen question, receivable to customers order in like their customers, days of have and is we current accounts lot discounts retain have to around XX days locked have improve QX Enterprise Therefore, XX receivables. profit some in and more the receivable improvement. were to compared higher cities also second profit revenue. gross margin. the that's provided due decreased improvement to

clients, our strategy in we'll a – As our not contribution that they increase may to valuable new to value lot QX high to revenue. to Yes, our you. those contribute the Thank is the to chance have retain so their revenue. future customers

now I'll Li to this closing questions at further There are remarks. the no call back time. for hand Lisa

again you today. for joining once Thank us

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

call. the concludes This conference

may your You you. now lines. Thank disconnect