Aurora Mobile Limited (JG) 9 Sep 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Aurora Mobile second quarter 2021 earnings conference call. At this time, all participants will are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. to conference like host to now Mr. today, would hand over the your I Vanguestaine. Rene you. Thank ahead, go Please sir.

distributed available Thank you ir.jiguang.cn. today. was for Rory. joining and you Hello us Aurora's everyone earnings website the IR on and thank earlier at is release

the Financial Weidong Chairman Officer. Executive are and and Mr. Mr. Chen, Mr. Fei President today Shan-Nen call Chief On Luo, Officer, Bong, Chief

all your that prepared remarks, three questions follow. the their available answer will Following to session during Q&A be

to the remind current in in future forward-looking with update I predict risks, These as go or are like filings of uncertainties that not Act obligation materially from applicable are Reform ahead. a Securities company other these market and statements of Commission. any Before this and meaning company's factors Litigation to events the Please Luo. operating to and over XXXX. required Mr. now contains forward-looking we would The as to result forward-looking difficult the turn as the or like law. new regarding information begin, differ the XXXX, those to any conditions, statement Exchange except in performance call does included U.S. would information, and/or and you Securities statements of the conference I may otherwise, defined of Private undertake which that, Further statements. as under With results, based the company's actual conference and amended upon forward-looking cause Section Securities to are Act and the U.S. achievements within XXE of management's expectations current Exchange

and operating second is to good and everyone key we model you Aurora Welcome I the results progress of business to quarter call have under this in quarter where the of share since call. the to This the with strong morning pure the been delivered business achieved earnings We our am to XXXX SAAS on Good Rene. second now beginning quarter and pleased call. XXXX. XXXX. business second evening Thanks off kick metrics Mobile's

results, Before quarterly I remind earnings website our IR for like comment on to reference. on your everyone I available that would deck QX our is the

You the the with call we may deck as refer to proceed today.

our Let's of and performance our begin key highlights quarter with for financial review of operating second XXXX. the

As the end XXXX and a vertical Targeted XXX% at business include on and services reminder, our which is completely exited we SAAS the applications. Marketing the focused business, now developer of

the second contribution grow apple-to-apple presented paid numbers quarter, has in year. In legacy concerted apply company-wide it effort Marketing our For comparison, we the and SAAS exclude Business continued Targeted prior and our to to from off. the focus

business XXXX. year summary our million, XX% our since continued above the two than developer Here is by pure RMBXX which was more substantial improvement us results profit mainly number XX% into from XX% business transition The up gross ago. from consecutive a revenue XX.X%, quarters was demonstrating X,XXX growth strong due margin year RMBXX.X XX% the ago. both to a quarter, XX%, of XX% growth up X.X of XX% from from SaaS helped strong has in growth of of operating times was And is driven paying negative to ago, for mainly The successful deliver increased of to year-over-year. growth this year-over-year. with XXXX gross significant a The Revenues strong compared were SaaS their improvement from our customers X,XXX beginning applications. the the leverage. adjusted and strong momentum a was Group business Revenue year-over-year. the SaaS million, year-over-year. XX% vertical a model services the QX margin year million, up Gross year a XX% EBITDA RMBXX.X of profit ago, with gross

Here, JG on update Video-as-a-Service, Messaging and our I products, latest which give JG take JG System, to Unification an to UMS would moment is like a JG VAAS.

UMS million. We launch. The customers providers, platforms video for from these signed see and value VAAS The JG JG healthcare, for products diversified and continue current new come strong and VAAS and networks, number our for and crossed media, including finance, short total e-commerce since to a RMBX of product, their respective namely industries contract more. market potential has UMS content demand and over wide medical social

optimize drive recently delivery this expand such integrated They and reach. Paotui, UU and an partnered messaging our to errands partnership, flexible management. UMS user consumer start costs UMS with platform. Through their channels help online we operations on platform UU example, different JG messages intelligent sending platforms increase Paotui and operations was manual solutions reduce with For smart JG to implementing as routing efficiency with operational able different to AI-powered to throughout replace

of Going recently help existing more and JG better UMS which our VIP developers. a customers. we for services upon an to their help these a UMS UMS, customized for forward, mobile account launched cost. a integrated, In able we with free services as Mobile into When basic will mobile additional quick customer also we asset continue jointly will and meaningful extensive are developers this public convert this and fee free provides to our us create services. of trial registering developers We chain multi-channel turn, customers. use version an can version deeper without of build new value messaging connection paying provide solutions, closer to cloud

can VIP limits and channel unlimited upgrade For customers enjoy JG API of management, multi-channel with and UMS higher call push requirements frequency the management, higher other for services. exclusive VIP user version notifications and to they

our evolving turn new drive efforts discussed need our continue push business will order meet R&D in to to and before, we growth. we to innovation continue As needs the requirements, which in to customer

and a few continuously during innovations the some as the the minutes take our to to for efforts products, is which top multiplatform, are introduced for of to R&D you the a our focus our and of functionality Besides UMS equipped organizations of a now analytical of stay remains to developers to share smart analysis would iterations with cycle. of motto push integrated of added services, through quarter I with recently which continuous priority. push version product VAAS ahead JPush innovation like App platform. new push our multi-channel result post Our relentless message our the promote progress developed we at game. the a

past data, of accurately data real and For click-through from including efficiently more visualize in identify and key issues end to are the delivery total given the help with levels. These example, reached developers message messages number different time. ability sent, users to total message rate developer statistics

data For the undelivered utilize from fail, functions full and the real of they delivery cycle our message uncover reasons message developers that push any messages. delivery analytics detect can the cause can the and to there also root from all

push click-through by of functionalities and the in rates click-through they intelligent reliable, push learning recommendations, notifications push our more rate of pot these create We will the increase help from the turn more toolkit believe push the our that of feature, rates With developers a past providing the on of strategy push a new assist have functionality and and much in improving message toolkit help effectively this message. developers and greatly this comprehensive accurate will rates delivery strategy results. developers delivery this and the based

discuss who to greater detail. Now, I the performance will QX will the turn call in Fei,

Thank you Chris.

growth XX% XX% a of the respectively. robust Let businesses. on SaaS primarily a within acquisition. by and different revenue strong me XX% million, new of revenue XX% services from services XX% quarter-over-quarter of subscription discussion year-over-year RMBXX.X quarter start The second year-over-year of revenues growth an fueled and In streams driven a customer growth developer million, the XXXX, in RMBXX.X the services. a basis in revenue increase value-added and by growth was were Subscription year-over-year, reached services

products cetera our of ago. ago. revenue a RMBXX,XXX to resulting delivered the In higher such various RMBXX,XXX subscription ARPU customers JVerification, XX% for to of products to in non-push X% notification uptake by year has products in non-push achieved product increased services continued effort a multiple as addition, the the cross-selling results ARPU increasing compared lines. a XX% JAnalytics, year And JSMS,, subscription from we overall RMBXX,XXX This contribution notification our solid et to as subscription increase efforts via non-push with

customers so on. New and the year-over-year and RMBXX.X from Yonghui set XXXX quarter once contracts again within In value-added where China in and grew include JG of impressive notable second RMBXX.X million in developer advertisement from XX% XX% Everbright Superstores this includes to services SuoYang quarter-over-quarter a million from by XXXX. quarter first services International, quarter revenues renewed quarter, by which RMBXX.X Paotui, results and SaaS, million Bank, revenues UU of services, in delivered Alliance

our for demand continue see very products. solid and strong We Alliance to JG

resources On apps to traffic side we of to total our quarter quarter-over-quarter. the XX% to more network sign pool. the apps this in representing XXXX, compared in number growth mobile up XXX grow a the apps of during all the within supply quarter, continued order XXX The Alliance, exceeded JG first to apply

XXXX. DAU of first RMBXXX result this our apps a from traffic As increased quarter RMBXXX XX% network by in growth within million within the pool, has to million

direct a agencies demand in customers ad JG us further from reach industry of In limited XX% see JG Major [indiscernible], Alliance base shorten we revenue large broader sales Xiaoman, Alliance strong market from focused repeat the the many TravelGo, Weibo, not ad Alliance Du serving go-to-market direct while are developers stream and JG the to and include, who side, et to customers XX% used leaders demand process, To Taobao, continued second but while team the our of contributed KA to contributed market cetera. Alipay, than we customer consisted across close help On They expand quarter of revenue. program customers. many cover quarter, came verticals. agencies more have of on customers. rest to

management by the to move majority growth let's' applications and significantly on help coming which year-over-year grew with XX% financial intelligence to recover financial management, by financial applications. from the of pandemic, vertical risk continued the risk management XX% of market the revenues with revenue, of in the as the iZone, increased revenue Vertical ARPU. the the XX% of In from the include Now demand business. the growth impact risk year-over-year segment, discussion

highest recorded in the with revenues, of since the XXXX. quarter we quarterly compared of the beginning COVID-XX results first quarter, This

as demand product for huge customers this institution. licensed to We such from and see KA banks continue financial

customers customized Mashang from renewed DigiTech. single meaningful by recent growth and product with Financial projects us a and customers Consumer The few of lack intelligence year-over-year. our delaying increased digit to include market Xiaoman to Finance, macroenvironment. XXX due Revenues due Du New was

double to lastly, while And underway, TravelGo, including significant with revenue product large growth. With This completion our of a to with quarter strong However, mainly the is business we many and pass the during Netease was large-scale on. digit the one-time contracts. continued now corporate so that, few still ITE result the customers, delivered see new call renewal Shan-Nen. iZone to due will I Media, over solid transition

Thanks change in RMBXX and the invest to R&D to X% expenses increased million, million, mainly items. operating marketing go increased the by to the million. increased to business key staff expansion. in Okay. the cloud due expenses particular, RMBXX.X XX% support X% will expenses Fei. some and through of to higher expenses operating the On increased and increase to due to Selling SaaS R&D to department, balance Total costs sheet bandwidth expenses. In we I continue mainly by by year-over-year marketing offline RMBXXX.X mainly result by control as bad our expenses million promotion RMBXX.X of in since decreased which RMBXX.X million the value of as XXXX. in on Adjusted the best companywide fair X% and swap RMBX.X and visits to negative measures. contracts, year-over-year in of negative EBITDA calculated QX focus And debt currency to activities. from reduction this performance improved due was foreign adjusted share-based to RMBXX.X strict G&A EBITDA expenses XXXX. financial of EBITDA, XX% year-over-year excluding provision customer compensation was million, QX our million

solid quarter financial we of another results. second delivered For XXXX, set of the

increased margin significantly for XXX% by our X%. comparison, For increased result by group XXXX year-over-year businesses gross only contributed include the however, margin a improved of key XX.X%, XX%, direct from quarter SaaS XX% SaaS businesses. to highlights gross by a this high-margin QX revenue OpEx, being

important will momentum achieved And KPIs the of As our key we that we from in only start to and the have growth will results Ibiza very delivered have we the bring business is improved more scalability two we very XX%, continues coming SaaS where this with believe business by the adjusted quarters. second a sheet. the monitor. continue I QX model. with which QX and are that balance solid to we pleased and quarter On demonstrate our result, XXXX to results the results closely

from to AR in And shift XX Firstly, marketing decreased significantly XX from on in due SaaS QX targeted this turnover XXXX days improving days the business. both similar This the the trends the quarter, the legacy days to was on focus to companywide away collection. quarter. to focus last

deferred in RMBXXX for the which fifth at Secondly, total million exceeded represents a quarter-end. balance, collected revenue has advance quarter customer, from cash consecutive

As of XXXX, at RMBXXX.X June was XX, balance million. the

of Next, convertible current total of long-term XXXX. Accounts as loan of April includes payable of in RMBXX.X assets deferred RMBXXX.X at of million And RMBX.X to of XXXX. the of of mainly were million of and quarters RMBXX.X RMBXXX cash accounts receivable RMBXXX.X million cash the million, business of RMBXX.X XXXX This liabilities Total million, XX, June million, assets RMBXXX.X term cash fixed of were and the XX, over redemption of June million. RMBXX.X outlook. balances investment this prepayments of million. due as equivalent million RMBXXX liabilities RMBXXX.X in accrued reduction was million. short million, $XX revenue to at and The on notes million, includes

a XXXX toRMBXXX for compared to year for with change of for full the for value-added The our accounting revenue, business. guidance gross XX% full the year-over-year year. revenue of business guidance in our in now representing of to net gross revenue caused our update XX%. And range our under million RMBXXX growth due new is third-party primarily revenue Alliance margin rebates from GAAP. service method Our outlook has The revised to any last year above net service, is remains of agent developer JG agents use XX% U.S. million,

In joining Alliance addition, of macroenvironment delayed uncertainties, traffic due partners have supply JG our temporarily integrating some potential with our to the network. and recent

the term calculate forward. the our main above The numbers growth growth under the revenue JG that, long targeted business. outlook and outlook going year expect still excludes Alliance marketing the quarter ended of unchanged for In However, a XXXX, current shares. and estimates purposes, customers' the driver are revenue repurchase to the plan. is we company's and which quick the update change. market and current and before to did will reflects demand, remains prior note preliminary conditions for comparison meaningful to any all not And lastly, I market be conditions it subject we used give operating revenue from I XX, based on share repurchase Please percentage conclude, the June

XXXX, the XX, concludes total repurchase program. June this And of As prepared XXX,XXX since have we repurchased remarks. ADS of our management's of a cumulatively, start

are any now. to We Operator, take please proceed. happy question

Instructions]. [Operator

is question. Jacob first of Alliance line Silverman from the have Please This We from coming go ahead. Global. the

methodology, we are Also, reported JG will for that margin questions. an details my us reported any additional when taking have accounting maybe for to Thanks everyone. And give a on Are margin, the Alliance? Hi due gross can why you on partners there can for diligence? doing impact around expect joining? delaying start customers gross

will question and Hi is I first Fei. answer answer Shan-Nen Jacob. your will second This the question.

macro know, has our pool. you the right. because privacy resulted compliance getting the now required mobile integration developers partners delay changed, potential is pipeline issue to on right. these Alliance as Because issue, app for it environment collection government And in the for in some by temporarily issues, So are of of of supply join of to this, focusing apps has the rectify the own which JG many terms our their recent the data traffic in a regulatory

the the So they will us. with including third-party partners, down cooperation slow

the collaboration process. is However, once work finished, they will compliance renew their

great going this will which is business, say business to Despite we for are question. still why this going the will our expect growth unchanged XXX%, high, business that's to year longer the for this to revision, to expect the the we have. remain actually Shan-Nen JG term JG we very answer a right. Alliance, Alliance we for driver already a still outlook be And second have is and which growth So close the forward, the achievement

gross expecting the the major the impact gross $XXX on to But is that before, I if because the revenue, accounting impact the net we margin, downward margin adjustment. of we will example versus at be on look versus the some not yes, it gross and Jacob, impact only X%. used $XXX are

So answer not question some your but will gross to is, deterioration be be material. yes, there margin, do in it expect we

delays are there delays getting end there Okay. Are And for any customers' your end? customers the JG then on on Alliance? on mostly

side, This delay their No. from side. all customer There's no our yes. the from from side, is

Okay.

also -- go like you sounds ahead. it So

done. am I No.

Okay.

like sounds maybe what expect improve environment, to Day? are it that the will your the Or in relationships After more Singles maybe for regulatory we improving. success recent maybe year are now should continue the So publishers sure publishers in XXX, with in given you next XXXX?

fourth see is will to I improvements we rectification apps start ongoing these from think starting quarter, process. Because the the the for regulatory, right. the

are through With some the right. So GAP] partners, revised the doing -- they guidance, end of [AUDIO of the the the

actually, So are to a the expect quarter. growth third flattish for going quarter-over-quarter we

actually, we normal seasonality normal. year, from So our quarter, this the seeing right. past is In in you if third at right, XXXX, flattish look second to quarter actually are situation, a

actually they of But we we similar they the seeing of in some collaboration of the some regulatory if and work us. finished there's are said, will the flattish their since expecting But that slowdown, supplier growth, work, were higher their quarter-over-quarter pipeline, because no So trend, with the start a slowdown, right.

have JG a from continue business do Double traffic demand the also positive to Singles expect side. do And impact quarter. the to will we we grow Alliance the this in to fourth expect XX, So Day, the

quarter quarter. guidance quarter-over-quarter year to fourth full third reflected our from growth actually already why that's the the So

progressing Video-as-a-Service been recent the How then months as has switching pace new of And signups? gears. Okay. such in has

Yes.

So signing recent number, right, is when up, actually RMBX products, like which that actually contract these we the having right, was I VAAS has RMB million the the for quarter progress, already basically close signed when data last it's it been at and two million. to the UMS, actually the contract look value shows were call,

actually already doubled. So

major are signed for meaningful these we such with the China And actually right. to very actually famous, up two in big customers Securities, products. make as we contracts, just So progress continuing Merchants actually

as similar customer, this industry, new names through So our same to in the customers a use the right. can with these push household continue to case as study we

So continue two momentum quarter expect these we before do the businesses following gain to to the in year-end.

And one me. placements, one are offering? further with ad are you the sharing Maybe to for Videos-as-a-Service, offering combination monetize capabilities maybe any last you in subscription that considering ad already

Yes. right. we Actually, thought this, about

once business It's that's right. I much model. true Actually, type the One, we two like right. very what which subscription margin, offering the margin. SaaS a it's true pay a to But are a is like fee which JG the think media of need we like right. is need similar of and model, Alliance well fee, pay software kind we will also different bandwidth to as we actually cost, offer to model, certainly pretty as currently business a will

So the lower be Alliance current model. JG dramatically than business margin will

way on. actually it later Chris, choose subscription continue want add? a of of model, opt the for once to have a think do not have we being, massive, we And good model gained time can on size before subscription anything first this monetizing. about based we then this to the to So focus we to

different is Yes. directions. Also, actually two this

financial apps. to to banks. in So on have industry, VAAS huge some first But are to have any within we they budget content. vertical the And advertisement not their all, apps, focusing those for want they willing invest these industries, example, of

But this some a are model. those like monetize pay case, for in to advertisement. So SaaS willing in internet companies, the companies, they they business by

what SaaS to model. So similar and industry, stage, case, we on in the we financial pot But budgets probably focus in to the spend share first they will that model they like and and through business revenue case, huge the have banks are because very in we traffic services. the revenue our want push in

much everyone. so Thanks alright. All

Thank you.

coming from go have ahead. the Ryan which Roberts next Capital. from You Please question, is Navis

management. guess the first supply from update. really, from side of Hi. Good one most I bit about my evening talked of Kind couple Thanks for JG you the the Alliance. side. questions A a coming of is

a some demand? their and with from DAUs so the sounds forth guess your thought, or XXX. slowing I from It up you seeing like year-end, are target are What I undergoing is What kind down was last current nice So around rather which and about of XXX, about and are you QX of guys. apps there? quarter the integration are rectification you step

which hear the guys have capability. doing to So it would on well seems are happening revenue think want that of me make you pretty demand DAUs, generation first. like what's solid side that I you some just on

Hi is Fei. Ryan. This

right. always the large existing never want So users, their users new wake it's actually to who acquire customers want from dormant an also internet issue, companies, up right, demand and side, they as older more users, because in new to

our the So fourth third business the the revenue, going million to with quarter of expectation it's even to time size RMBXXX revenue. close be this being quarter, for of

still versus is relatively huge right. this industry, the to the market size for compared advertising So small

media our with right, service, for format, which this which compete directly is advantage. completely doesn't JG to that's also our the So new serves why Alliance service really providers, actually and existing

all demand up be the see and supply we always right. and pent side, So the been bottlenecks these will has

regulatory process has settled, growth. then So little that's a renew can until why we bit macro the we to the need wait

Right. little about And bit me to loads. then just talk ad a the

think was for value the the JG things, one current of turn the could What's monetization. ad looking load that Alliance? like of one for I little

Yes.

the denominator basically DAU, by is XX%, Exposure load is about ad right. right. So still the divided

functionality load from before DAU to we tuning much acquire It And and DAU, want SSP the a will actually actually traffic, the fine be has process focus the exposures, for offer possible trial in yet. are apps as it, our We right. the to been result our yet. actually certainly, hasn't launched on per And hasn't do continue product We been focus much will okay, the the few load. product X.X, able which we as the July been launched as ad pretty of multiple really we is encouraging. got in that So and ad offer working perspective. to with

DAU, increase able load XX% to right. basically by are the we same ad the For

So we to network have migration in also our already a this our established migrate plan existing SSP X.X. into apps

we and we So start with the and they results wanted, with becomes move first will DAUs the smaller when we will achieve then that apps greater stable DAUs. on to those

be we the to a So of effort expect we such process be the continuous to majority fourth end migration and before ongoing to and hope finish able of migration quarter.

the addition to JG built we because in this acquisition, continue grow already this, seasonal of the in Alliance. for DAU can the coming traffic leverage fourth fourth total That's acquisition, in growth will exposure the help we the why traffic to to in So quarter, assumption quarter-over-quarter expect will quarter. we that our organic quarter

sky scenario, kind blue of in load your a what's ad In target QX?

increased maybe by it think I XX%.

to from XX% going are you to So increase XX%.

Yes. XX% to XX%, yes.

somewhere are that We in range. thinking

Okay. Understood.

is how companies to but I nice, kind see are basis in kind SaaS think or about what cohort you VAAS it's you think that's where some of Thanks. you any any maybe expect analysis kind might or for you that have rate data of And helpful. a have some there. growth kind updates of your Okay, more be them? of typical guys really kind maybe I of have those some average following? talked on bit Can as kind is that of of those share were Do of share wherever of there's you about cross potential some think because customer you Subscription a revenue we another can points, some and of I growth we many, deliver recurring wonder terms you the if lot if kind is, in the explosive talking question a data are then yet had past those of selling progress a VAAS lot. there. revenue, kind other metrics, business, of

we right, that's of do Yes. like kind We do. metrics, Actually, those have metrics. SaaS

segment customers, we customers right. top on based companies which KA is into our business, buckets, subscription-based two right. the the is actually So the subscription X,XXX One DAU, internet

customers, to sticky, these actually the it's XXX%, been when for XXX% based, customer. second bucket several we which are SMB, And And is okay. the then the over customer past dollar the range for are very type who at okay. look net in retention actually NDR, smaller those more a like dollar So basically retention, of of years, customers

of the and ago, For day ones. certain of every tend every customers, operation. period come year, right apps know, of, in you certain China these types the actually survive a by smaller for cannot as They after they a to, time nature

at look NDR, So around when we these in segment they customers, actually the are the of range XX%.

unless with we like right. increase these for customers to deal So these do type this is kind want the natural. It's to of of NDR very difficult customers,

the that's So situation, current okay. of sort

which you signing of KAs and That's JG there to handling KAs of Alliance that of adjacent advertising to where maybe you more you Where kind lot labor sales realize on everyone could bit mini-programs? advertising a internal Is stable? can themselves, helpful a to exposure hear having potential going I kind a would an kind that, inventory of intensive kind itself? with is continue kind kind these are thing, customers of but in much focus in-house? little lime process at eventually, this And supply least the the purchase are Or to ultimately, client do at that right, of very that there side going of target this, alternatively, must some draw that of that WeChat XXX% for realignment else. kind you? where, having the That's and SaaS be a business agents of or the be sell start maybe make point XXX%, kind of good. And sticky. a sight are respect for agents then is mentioned Understood. of you a

Yes.

Alliance JG split, perspective, of currently, from actually right, revenue revenue actually, So from revenue the already agencies. ad the our over are coming XX%

of customer operation acquisition, they themselves. ad these they will acquisition placement as agencies, So lot customer themselves well. even, do most a the then add will actually do And basically the of them, they will ad a

So for actually, on, we only offer the them work platform right. to

set our So agencies right. really like automatic internal of it it's this very doesn't already resource, of require for labor or whatever actually, kind and

customers, of we very revenue These sales And So to deal we continue going large are more few ad their as need like expect maybe to main directly that have as customers, large to very is because are request Weibo, these because with right, these right. agency or grow serve on customers demand force, we right. will mission a actually kind WeSee. a each, forward, pile such complicated they direct such them the

for of to let customers, agents will majority it. the do the So we

the do we team operation not budget okay. opinion. our an is It's sales build our So in and We that. ad add issue We force, to will a don't in massive scalability never need very strategy. not

the that in marketing could Or a some So potentially likely was of we kind the bit? sales cards? spend and down come not see of

right. continue to the Yes. generate in expense It's our goal leverage actually to line items,

revenue. go first of marketing certainly, a to total down needs percentage as So

pretty high. for think the JG we this think leverage Alliance I is business,

to what ideal in up, We business. And Subscription revenue, get will head do the for subscription continue still we to okay. actually okay. need actually is yet, per is range leverage actually work is on to the not go business, the

KA a right. will verticals, companies to like they actually RMBX They industry and Such of a generates customer. have by sort forward, So vertical serve the already before. revenue building also, not the actually KA customer, serve does we Merchants which can right. team, million like that's sales China are And this exist Securities, vertical basically and kind of customer why going going

customers, by sales So right, from, will where serving efficiency the this is come the large right.

And not on process. the this our efficiency, is the so marketing, ongoing And only we continue to R&D, sales drive okay. will and also

We rate. our will optimize to continue utilization resource

resource back into we to right. legacy cut innovation, into We the products, the resource right, will new continue product, product okay. allocate will the push older devoted And also, originally human products,

we of sort ongoing are that's implementing. So process currently

to leverage. that So we operating I see yes, our continue think forward, going should

ones, quick of very on quick from last kind things. Okay. the me And a couple of number two side

that on the curios, share curious, what then other And was average could for remind also done. price? the buyback income what of And buybacks, line I I kind you P&L? was am Just the is us prior

Okay.

a me look. take Let

mainly government get income from subsidies, grants the government. Shenzhen is on we So get the the that we other the

it. Got

Okay. the Right. those what were roughly earlier? was And What speaking, prior buybacks? prices

been need that I quarters. now for least to four because have repurchasing to we you back at

readily I don't available. numbers have So the

Yes.

Okay.

could be great. you that would that, on If follow-up

guys. Okay. it. I Thanks much, very appreciate

Thank you.

Thank you.

[Operator Instructions].

the from ahead. Please investment [indiscernible], We have question personal next go

[FOREIGN LANGUAGE]

[FOREIGN LANGUAGE]

Instructions]. [Operator

the line next Navis. the go have This We Roberts Ryan from of Please coming is from ahead. question.

Hi. had the follow-up a I from caller. actually previous

point interesting of platforms. an kind you different potential as about experience had he a couple of So overload maybe user cooperate with and ad

from have that maybe inventory how because am if if that any cooperates multiple of so you monitor experience maybe developer curious, would deterioration a some and kind kind the an wonder an just the impact a clients, you app are concern overall for showing perspective you are problem. on, there developer of kind them, they looking an then of any, I curious is of kind platforms, for with of you kind that of again, would ad way providing of of ad I the so more experience probably, there advertising an the could and am can Is the you on performance, your think if saturated. load I from kind of So of user service element then at advertising could there probably of show you if ad that that's leave with just ad I if and them, but guys concern approach and a kind ROI,

Yes.

never generates, beauty user very X.X So experience right. of being, the low. is a this day time is it issue only show DAU for the Because an actually, the it's product all, we currently per ad right. actually actually of is load, It's the ads, first for only

XX, So right. versus advertisement show XX to they through the media going funding typical or fees like any to

which to format compared even DAU, which the traditional very increased developer whether all, per any is have by is second our users impact actually the this analysis of showing right. is analyze new the one the user of such delete increased still we behavior way done limited. few this number with caused exposure immaterial has to ad whether of we to are as ads. load though And to And XXX%, we app, So

some never evidence us also users which used the it all links the well. sort developer our were we done improved the to in user any find Alliance have we analysis. actually So is to that surprising product. very Actually, app very, actually JG deletion of these the cases, of as able And to retention, with the app in because of

we any So received experience as negative since net product. this never and basically there's launched well net, complaints no we user user

basically for path developers. wise, maybe choose for product Actually we to the A/B app look

A/B our and some show group any advertisement will group don't another advertisement. of our do users can test shows we basically, they So that for

from groups basically result, difference the of and they users. no have these the data two two, So those of

statistical Got Yes. difference. No it.

you. Thank I All right. Okay. am good.

[Operator Instructions].

back host, at no have like sir. Mr. would questions We moment. I hand conference our to this further take to over, the Please Vanguestaine.

Rory. joining Thank our you everyone for tonight. Thank call you

question please hesitate further to concludes any out Goodbye. This had reach the you and If team. IR comments, don't call. the to

and Ladies our participation. call you. for you Thank conference gentlemen, for all Thank that your today. concludes

disconnect may now. You