Aurora Mobile Limited (JG) 9 Mar 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Aurora Mobile Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. [Operator Instructions]

Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your host today, Rene Vanguestaine. Thank you. sir. ahead, go Please

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

Shan-Nen Weidong call the and Officer; Officer; Manager. Chen, today Mr. Mr. Bong, On Luo, Financial Chief are Chief Chairman Executive Guangyan General and Mr.

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

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

conference like the Please to over now ahead. I'd turn Mr. that, to With go Luo.

evening, XXXX Quarter Fourth morning, Thanks, Mobile's good Earnings and everyone. Welcome Rene. Aurora to Good Call.

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

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

environment the like the we by upon quarter, what learned, caused fourth journey challenging pandemic, years of to Before in reflect in we what right, would a at did came looking out the more efficient. I'm came and past couple times our to of how we became toughest much organization. the an resilient time, proud can say grow we as that difficult and from and how I we

way, afraid of making always constantly growth. we we our right to Along matter overall ensure have reviewing are the been long-term to necessary track no tough how on decisions strategy, the not

revenues is for later Throughout and stronger I make profit, long we In controlling We bringing core and business started This as didn't XXXX, more mid-XXXX, a globally. improved period, lowering Services. our restructuring and fresh the pure in across we harnessing rewards details we and remained going gross company. with economic the or stop management acted uncertainty strict enacting effort, nimbler us by our run. really and while SAAS QX Developer give quickly margins strong and a tightly as cost transition organization you will to a major proactively this innovating business pass. line, our

we glad decisions, also our made results. We're efforts reflected and are these financial in our

share me of the with key results some Let you.

since net QX expenses year-over-year. growth. have by Second XX RMB Services, at RMB profit Lowest quarters QX RMB million. Services Highest XX.X the since Developer loss IPO operating EBITDA including Applications gross Lowest XX.X improved XX% adjusted at for in All business, million. and Vertical positive adjusted Value-add record X.X XXXX Subscription, Q-o-Q XXXX at XXXX adjusted million. million, X.X of past RMB since at

customer to year-over-year the company million. since AR is at number history highest XX% Total up X,XXX. RMB in at XXX.X Deferred balance the turnover days days lowest XX the revenue IPO. of

at biggest quarter-over-quarter, by XX.X revenue our growth sequential report Services Total growth Developer Developer thrilled in up growth to I XX%. and business applications have Services, rose with both contribution X% am and million, vertical revenue to QX achieved XXXX. core revenue RMB the

that, OpEx to our recorded lowered from adjusted adjusted cash RMB level. QX With RMB our and quarterly OpEx positive XXXX million, QX second X.X component XXXX historically XXXX. negative in In by at significantly bringing the the improved was highest million X.X quarter this RMB EBITDA of million for of the quarter, low we since revenue a X.X

the at XX% loss year-over-year. lowest RMB Our since -- was improved lowest by XXXX million QX also X.X the adjusted net

a believe Furthermore, we deferred XXX higher note more of our last ended for we total hard worked performance team with it are QX that impressive running has this I up financial things numbers the RMB revenue is come. in showed a XX% well. set versus will achieve. quarter million on XXXX than sincerely And our more remaining to good This business obligations year. that

December end that XXXX in the marks of X from of are the policy beginning emergence We the the China's COVID confident pandemic.

some Even though gradual life a has consumer, this, pre-COVID people's our is XXXX and recovery resume economic Therefore, path believe, growth. to for very and a in and normalcy to promising. the hearings, there on return outlook renewed of short-term the we of be put consumer levels may country activities business social

XX.X revenue RMB revenue to which Value-added mainly Developer by offset the Services increased to in revenue Subscription Subscription different Services. Services Value-added increase streams. both Now Developer XX% let Year-over-year, by Services, due X.X%, our mainly due weakness me Service the go million, in the growth and decreased was in Services. through quarter-over-quarter to

and year-over-year. and Subscription revenue efficiency. Subscription to core and UMS App line services Analytics, our quarter-over-quarter products that includes other XX.X developers Services operational help improve up million, RMB enterprises services, up were JPUSH, and XX% business X%

a cloud and to including limited private renowned customers increase contributed were board, not the bring to to on we growth, revenue revenue [Indiscernible]. but service number Our able of has Subscription

with and ARPU to the J&T a Express, growth few. in and just like customer customers well-known contributed to [Indiscernible], increase IPA, also name and to managed revenue, in sizable we base our The grow several

have we expressing service trends of launch our the been encouraging EngageLab the products. have in seen Since customers and in platform October strong their interest overseas

growth We reach. to are higher improve and services expecting efficiency global XXXX, help into to developers stronger continue products cost-effective and will revenue our we and going with user

further mentioned XXXX. As consumer activities I earlier, in are anticipating we recover to

activities. our revenue down for XX% was to the JG Tencent, services by services us. Year-over-year customer quarter-over-quarter first increased a across XXXX, in in the the value-added continue overall expect indicator growth services leaders industry revenue some The which Bank of to Key trend reviving value-added of customers Xiaoshan will good saw quarter-over-quarter it and a and already we was revenue XX%, Alliance market major customers we sign QX, verticals. in XX.X RMB BAT, repeated and Alibaba, positive is During many consumer XXXX. growth year-over-year Major consisted and recover Juhu. million, Baidu, include of growth

was million forward. Growth over in our more going XXX%. by we And DAUs that over believe of QX this platform more seeing we and For from end in back platform the of DAUs interest economy as quarter. recovers our will Adpub join that our apps XX joined XXXX, launched in various overall are DAUs more China, the

e-mail exciting solution our which It's our major and a for in our push marks in SMS integrating Another in service us. pioneer our news, technology platform. notification milestone the JPush, also and work ChatGPT

become of has important AI first AI the very be the many movers for it to in Today, products of cornerstone applying one and us and services, is technology.

benefiting us integration proactive great Our make to of and edge smarter give technology products model our opportunity AIGC our further customers. all the interactive a and language really

and information attract solution. enable of Using into ChatGPT quickly to time, critical the can service, efficiency high a the concern click-through conversion. been AI user to preference. to personalized users' JPush conversion, X powerful long information The our high ChatGPT creation tap engagement. AIGC content according achieve of rate generate a into delivers click-rate effectively high-quality to push customers intelligent integration these a and integrating the a reach attention how and has user personalized generating e-mail resulting for developers content push and content creative will profile For improving developers e-mail recipient AIGC and the for of to And from

interact only more thereby e-mails, services with marketing achieve and but e-mail not and increase improve upgraded of also readily response our of rate rate their will target users helping higher e-mail and the effectively success. The the conversion attractiveness customers

month, earlier partner AI Bot, of developed generative became by the Baidu. Furthermore, ecosystem a one last ERNIE chatbot we of first

dialogue ERNIE initiative empowerment additional is of our We engagement surfaces. strategy leading Baidu's in an chatbot will technology. and Bot leading step technology This our and in and support our the assess apply AI marketing customer with intelligent of AI-driven technology implementation

given ERNIE and products. in will we for Bot we integrate Bot partner ecosystem be our with priority an As internal testing ERNIE will

Many of [Indiscernible] broad our including Auto. PC Automobile, and companies [Indiscernible] India, new ecosystem, has renowned Solution, Xiaodu, joined High Enterprise

that going forward, mega new getting our clear businesses ready It's for this are trend. AI

improve We empower the to technology development SMS dialogue great will and in of e-mail for and also richness engagement. marketing out our ChatGPT conversion the research ChatGPT-related carry push interactive rate in-depth to further real and content realize and technology, people similar message,

vertical aspects more application the call over to of I performance. who our will about pass that, information will other and the With now share Shan-Nen,

Developer service, also of our and forward. recovering Chris' echo sequential by increased comment services, Intelligence. effort to especially quarter-over-quarter and mainly Chris. very we see decreased trend. would promising a our going developing application only risk seen our in by growth Thanks, developer XX% relentless QX in revenues, consists in With application in financial like revenue vertical I on in applications intelligence. Vertical year-over-year. X% market Market revenue Vertical core Not we've management and trend

decreased due Risk November the impacted our in consumption XX% financial COVID in were decreased Financial to segment, and management of outbreak to revenue XX% The revenue December many the XX.X year-over-year. last was by million Management risk Q-over-Q decrease year. to In customers' RMB by

revenue management QX as far risk seeing in in financial in about decline so temporary, consumption worried year. too we recovery XXXX we was not are the and are already We believe this

to Our Market strong Services XX% up million. and XX.X growth, revenue Intelligence XX% year-over-year quarter-over-quarter delivered RMB

recovery the of as a During and increased result many well-known in this of clients. and new sizable revenue quarter, customer our spending addition

focusing we The has of include, Zhongxin big and Sentosa. share. among customers Tencent, Baidu, renowned Baba, us helped and market customer in up others, gain strategy our that Furthermore, KA Securities quarter additional signed this on

and On go items. some expenses balance the operating key I'll sheet now through expenses. of to

cost proved and As of to us active wise, strategy very as organization. earlier, helped our nimble our Chris action a maintain and stringent quick management mentioned

operating in have low expenses. We of another quarter had historical terms

million, to category at XX% as reduction costs by Excluding result that R&D decrease of salary and expenses within cloud in of and platform. of depreciation our costs expenses lower a a and compensation XX headcount RMB decreased reduced share-based due long-lived All in particular, noncash year-over-year mainly associated million, optimization down to cloud improvement noncash and loss year-over-year. components RMB XX% X impairment assets XX OpEx recorded

expenses mainly expenses XX%. marketing and in this and quarter. to decreased RMB count head XX% costs due accordingly decreased salary Selling in million, to XX.X decrease by Marketing by

to a million long-lived impairment to this in XXX% the due to by XX.X onetime quarter. cloud increased due in expenses million, going noncash G&A costs for increase asset mainly RMB RMB XX.X

level. expenses second expenses and deliberate us of has prudent million. company-wide QX a delivered adjusted comparatively low and quarter since operating XXXX, helped Our hiring A strategy EBITDA positive X.X RMB positive control maintain

And year-over-year. some X.X XXXX had net X.X positive since by recap at at million let improved this XX.X achieved expenses QX 'XX We million, since XX% adjusted We year-over-year. lowest negative of and since loss highlights of at by of adjusted RMB RMB we lowest a operating down EBITDA me IPO X.X improved had million the RMB XX% quarter, QX quarter-over-quarter. second adjusted million, RMB the

to KPIs on And I the share closely very that will important X sheet. we balance monitor.

cycle, we payments XX have to XX diligently days days lowest IPO. hard in pay in Firstly, debts. from level and tiny been and is important. very have since basis. Maintaining tribute help days I to a doubtful working short low the AR on that mitigate collection has it which our turnover the to from turnover decreased And is turnover customers team us to AR cash risk who to best AR days QX a means which collect our days

of performance revenue, deferred the company deferred that at SaaS this RMB in Secondly, the companies financial advance collected And XXX.X our million. is cash has customer where one of tracking we another in million. which total the highest of XX XXX future history contract from revenue is recorded the performance KPIs key exceeded quarters for represents consecutive balance standing for RMB

for flow a deferred X continuous revenue also have great sequential in of challenging growth another marks the with which In addition, that quarters we us this source is time. such cash quarter

of And healthy deferred aside, revenue signifies also the business cash level in great our is flow shape. that

very continued buy revenue are pleased trending has we this of services deferred customer quarter-over-quarter Our our after with and to balance. the year year, and

assets million, Next, cash of XXX.X of this at fixed million; of prepayments and assets million cash million, current XXXX. of at long-term investment million; RMB and RMB And RMB XX, RMB total XXX.X December RMB XXX.X equivalent at receivable million. XX.X XX.X includes XX.X assets accounts were RMB other

acquisition XX.X of million Goodwill the assets RMB XXXX. resulted SendCloud from intangible of XX.X in and RMB March million

million liabilities XXX.X RMB of payable RMB RMB revenue current of million; XX.X of and accrued includes And were X deferred XXX.X million; liabilities total loan million; This as million. XX.X short-term December at of RMB XX, accounts XXXX. of RMB

conclude, And plan. repurchased ended ADS In XXXX, the ADS. repurchase have I XX, since a a lastly, the repurchase before on give share our X.XX we of quick million Cumulatively, of start quarter update repurchased I'll XXX,XXX we the December program. total

this concludes you remarks. take proceed. management's the happy the may We're questions And prepared Operator, now. to

[Operator Global from Instructions] Alliance Brian line of Kinstlinger Our first question the comes Partners. from

to Good and your businesses. and maybe this revenue you growth you talk the segments how Can with recovery your see in which first it? in it. as drive see Can strategic first discuss the partnership you I slide, about missed WhatsApp might

communication are WhatsApp even not have channel. customers, Asia, Sure. as collected ex-China. huge to from entire overseas, China, what you WhatsApp lot our on outside customers of know, Probably, tap a Southeast Brian, is this the on to in Asia, our able of is especially Shan-Nen. we Based

what we to WhatsApp is to customer are channel part the on are the managed their to push besides tap channel so-called able -- helping they reach the So do are as able they communication users. to notification, by of the to

are something are So able or the is much to ensure do, that able reach they usability to help them is -- they higher. we the this click-through rate that rate

WhatsApp that able we this is that happy well them more something to customers. to is reach help So as are

the customers lot launch this product, So for along which already that, is a are in us new waiting of to our market.

our will or customers we we that, WhatsApp, expense of pay the communication are need charge be to with we a is what to channel. done doing And channel for able WhatsApp through course, So to too. cost

Is through you're to right? WhatsApp. notifications essentially, going So to be push able send that

Correct.

channel something event are the is customers that WhatsApp able push their customers. that to use this So the to to reach notification the traditional the get in doesn't

they this increases existing part they the the customers of that Or in already for push, will Now are rates pay? service will be drive just using it get?

an will be it Yes, increase.

will notification charge every done through single We push WhatsApp.

So customer, us. there will additional to the cost to be revenue additional

can not that ChatGPT? intelligent? services you how maybe push the Was SendCloud, ChatGPT then and operated automated And talk with or before Great. about your and are it

past as know, AIGC No, the very is what you seeing we're probably, is huge months. X for

can ask. with they So come you answer creative for whatever question up really that

see -- are tap speak. Because they So some to to if what are improve are we able us seeing so to are seeing the ChatGPT's we asking is really they brain are to is to for creative on need they click-through their doing customers that rate. what content push so

that our do they they are do ChatGPT's to tap how able content creative side. So to is service use to on

that not to own traditional So be content up their at to a be creative having customer, might which push they with for means all. come themselves, which used

they in case. through ask is what say, can so So service, provision the able they're content create, they do to suit that X ChatGPT like optionality our to their to can of best terms choose

to better And with rates to tap on So click-through with message be that, they send that. that that. the they their hope able there'll to through are for are able

click-through with So a at send better for which in able AIGC can fashion they for customize, uses similar for to that hopefully, will a fashion,-- users, e-mail, better our the e-mail customize who template their link, the similar a so a result up SendCloud customer and customers. better to rate their to use they be, a the they're to ChatGPT's the ChatGPT come yes,

asking are yet. something in And this So a as seeing probably, China of we not service. available as this customers you services that know, is these lot are are for

customers help this a to So here have get issue. around -- opportunity great to we need our so to we

China. advertising fourth recovery market in Can Great. saw small we the know for services. I in a helpful. you That's for about value-added quarter sequentially talk revenue the super

So in maybe see XXXX. and the talk you advertising in today about recovery how trends seeing you're that

Yes.

As or see if some we sequential for achieved encouraging. still you the But is weakness the the see, space. look growth, really we've months, advertising quarter-over-quarter, you in which XX next headwinds ahead

us as Tencent as the As platform for our it other more is not bigger because so huge is player. or

to, XXXX do think I'm 'XX to like it sure better I level, So than or back not be will be XXXX. say, expect we but

of that, see growth business in maybe it. you your Got did lines. sequential Outside all basically

the holiday got in first we First, the quarter.

should them. And about each maybe see in So expect from of year. don't quarter for do guidance, the on talk in Maybe revenue the give the first outlook just gradual segments. segment. in segment's level, the you a seasonality we each then high improvement maybe touch you know I but

short questions the to answer your So is yes. both yes,

in of holidays in is So in what to see month expected. low February. shorter Chinese the a yes, and the we seasonality we because the do Year New QX That expect

we QX, QX, QX yes, anticipate forward, uptick. do to Going see

XXXX achieve forward, business yes, XXXX, versus at to expect least Going all as growth. lines we single-digit a do

of comes question from next capital. [Indiscernible] Kelvin the line Our

questions, I if like to would I ask may. X

of First many very Maybe of aspects. course, of company share the with That's these question. first set encouraging all, numbers. good you the have seen could we achieved how already us have results from

a that is overseas overseas other the follow-up any question is second platform going the will the the which other partnership initiative WhatsApp if on initiatives. on table. of And be this and And going yes, with progress what's there --

first recap question I things -- If are asking that... Okay. is what the you're question your the

more And for The color the year numbers QX. overseas and the on more question for last is the initiatives? encouraging -- going drivers second any

Sure.

Okay. Sure.

are QX if the think I that a think of I lot have right. at we there things numbers, you look done

as -- reflect about the done ourselves have organization, can give right. that how I on we talk it you and just top we an So internally what it we maybe X and

are And things. these the X so

what and doing customer is I First, market what want would focused it well. so staying do the is I meant say and

on years, for or note to subscription business. a environment X have been tough past X we probably laser-focused despite our So very

and to features help to functionality new a Brian as earlier. efficiency. higher asked develop we new our to operate So continue has as at And customers well

ChatGPT so the are So as see soon our first widely the customers. to we ChatGPT as to incorporate we available, become access of the

this So very is important.

So for all are this we functionality them. have our that appreciative customers

what decision here to we you the tough soon staying is cost past I at earnings our we And And expect. have is we secondly, see if what couple right did as structure think we as heard started as making right of pandemic calls, the than the for time. longer the reexamine probably

departments internally few departments we So many where the regrouped during that time, possible. restructured and

So our employees of, from to in last XXX-ish significantly in think, the headcount XXXX we XXX a process, high I trimmed have month.

is So decision to that have make. was it necessary you was this a tough and it back, we very look But timely. if

And I the that think minimal, only our onetime executed the is continuously. savings is third exercise. impact initiatives believe cost-cutting of have I it's if cost we a

And For cost-conscious sustainable all sales of the be the controlling the us tightly profitability. stay in we expenses. business is long-term it our from is departments, for way we need afloat, all important have model all the mentality to staff. [Indiscernible], this in VP, need to to Everyone because admin embedded is a

I call. I'll have recap we earlier just the what summary, read in guess in earnings

those well. done For have that things we

achieved why have reason revenue quarter growth the that's this quarter-over-quarter So business we in all lines.

and IPO. this last it EBITDA It the answered have again, we hope positive the adjusted achieved we a quarter. highest OpEx quarterly I And your since question. We but not XXXX. adjusted lowest but turn profit least, in long-winded, revenue was And bit gross the have

the and pretty by or lot overseas. asked growing been so. investors and we the been past on this analysts is popular, a month for has Secondly Yes, have of

In me the overseas update. going conclude summary, let

trial XXXX, have than we we So overseas on contract One that milestones higher allowed free half latest we up of overseas are share in customers. overseas, number second have users All the in than the are not customers fee achieved more to for with overseas signed few seeing, that the China, going are services based since those values and do paying are on we is a call. we started all contracts our the means service XX which offer of customers.

invested terms this customers. infrastructure overseas at us, elaborate have how to to of and our And actually And to in I'd are like we peers. stage we how we our more service doing support also on compare for

we are going not we just overseas. So lip servicing that are

So overseas we the do in investment actually have made venture.

reach have which we users. a help communication QX called very that channel again, is which mainstream secondly, WhatsApp, one of of And overseas, actual And our that their the product, we popular is our can XXXX. launched EngageLab is customers in we and to

manage the to effectively customers is And in Singapore, their data well number our requirement And Southeast help cover risk. in can all with region. the current country we presence help service X in efficiently and Asia are privacy we can on customers our versed we the better that entire lastly, our data legal to

costs. overseas So very this the are with that, well will segment provide we I future colors more Definitely, do we'll think the market. in quarters that we confident of in earnings

showing questions. no Rene I to Instructions] remarks. conference the I'm turn for will closing [Operator further back now

you, our Amber. everyone, Thank you, joining call tonight. Thank for

and comments, to hesitate If you Thank have please reach any call. questions team. This you. don't further IR the the concludes out to

Thank call. today's concludes conference participating. you. Thank That for you

You disconnect. may now