Sound (SOGP) 27 May 222022 Q1 Earnings call transcript

Hello ladies and gentlemen. Thank you for standing by for LIZHI, INC.'s First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After managements remarks there will be a question-and-answer session. Today's conference call is being recorded. the Capital to Markets turn Kang, host now of Head for will call your over Effy I the Company. ahead. go Please

Li Thank and call they operating are and will everyone CEO via Zelong Ms. conclude Founder newswire first and the conference much. online. Mr. today Ms. the results We Mr. Li; very and earlier Chengfang call. our our financial our and Mr. INC's. Marco begin earnings include COO with quarter Participants will welcome our released CFO, available and services Acting Lu. LIZHI, remarks session. XXXX with and Lu you Lai; a prepared Q&A to will Hello on call today's

a As conference this reminder is being recorded.

presentation conference of highlights the webcast addition, ir.lizhi.fm. website on available our call be section and this of IR our at earnings replay a will In

note Before XXXX. intend, such made Harbor will, estimate, the believe, Safe statements we discussions Litigation expect, similar or as continue, potential, Act expressions. forward-looking the Securities please will contain other contain target, words under statements Private typically Reform of that provision may, today's continue, U.S. These of

information, conference COO, a non-GAAP will call Zelong refer GAAP unaudited financial reconciliation involve inherent of note statements be that Mr. business uncertainties. those by The advisors, risks as accuracy measures. LIZHI's may for measures. forward-looking our Li. call the LIZHI's measures Please actual anticipated, of the that release press I of to many risks over financial go differ this a unaudited applicable these and number well could unaudited uncertainties underwriters Please from unaudited and materially earnings representatives, and also discussions law. this to do non-GAAP press affiliates, ahead. as impacted control. our and to cause statements to not release include Forward-looking results its update or to earnings now projected any turn Company, measures of which beyond required factors The as GAAP undertake obligation under are Please except of

Hello structure earning becoming thank GAAP XXXX technology for boosted XXXX, on for X.X% Language] RMBXXX the our everyone call. rose After time the our quarter a continue first we our platform joining in to our quarter revenue of to quarter to XXXX, fourth [Foreign contributed profitable the you basis quarter optimize efficiency and first operating first and and in results. million. organizational which of operating stable first year-over-year Notably conference

a basis by with to Our we surging basis quarter, points achieved for product our to on a building our product gross first have reinforce innovation second year-over-year Meanwhile, increased and GAAP consecutive to the and a the million. competitive In business margin strategy. XX% elevating development. overall overseas profit user XXX focused quarter ecosystem, RMBXX.XX of quarter-over-quarter we functionality, to XX% remain income globalization auto on exploring implement actively suite in-house markets centric and to continue we technology experience improving empower net

by mobile of maintain million mobile our XX% optimization of the first the independent growth continuous average year-over-year amounted MAUs to order RMBXX.X terms year-over-year total increased in quarter reach average RMBX.XX users and data, paying to our average RMBXXX,XXX. business strategy operational In monthly tests to million MAUs operational to of

by our audio competitiveness centric share the respect will of to entertainment, ecosystem our different we I auto business focusing With the of to core Now, on more segments. color continue on development enhance penetration audio rate In and XXXX, of drive the entertainment business auto the user first expanded performance. user the and from XX.X% categories, business entertainment quarter content in of growth to commercialization real join which creation, operational motivated users commercialization to topics and for strategy. launch campaigns unleashing diversified sales potential engage of last the in creators More a featuring various content business. audio series the XX.X%. trending interaction to operational were encouraged we our content with to Furthermore, to turn same period holiday entertainment time year in and audio of more continue the attracted our

and March, to format direction the innovation, has quality area brand facilitate expand function model collaborating In addition, IP and our to Koliliko's consistently have high and we been into of commercialization optimizing LIZHI the toy of business product content. attending enriching with designer brand features, In interactive started an integrate in creators entertainment has content Koliliko LIZHI close entertainment App younger experience. traction on IP for the among brand users gained has users, online the the effectively the between diversified of a The boosted providing with platform. the section generation creating interactions and auto users of scenarios collaboration and interactive the LIZHI App, online and Image

expect entertainment leveraging LIZHI scenarios directive mutual with parties both brand to online IPs benefits. forward, to usage the more for collaborate maximize diversify Going of to strengths further

usability functions engagements Turning interactive users. real-time expansion, social versatility, we refine group our global social insights online to features global TIYA. for continue long-term user the TIYA's interactive making into functions to by our group our the we Since upgrading based the our in and easier the space demand, product have improved product of and on the connections space,

alter continue the invitation our invitation their in-house feature, group click interactive suite one users space, that social features preferences. line and connections, as also growth XX% We capacity. active innovative optimization fact, the voice and we voice changer on average first and experience number just interaction the time messages on more of connectivity. with allows our integration fun users their direct increased the functions that user more by to user can to users for space of various the users technologies engagement the unveiled giving in users time elevate year-over-year. real the that so of feature, boost Furthermore, We and further and to vocal to functions including enrich making diversified we user daily a more brands the product improving tones year-over-year, the rose AI join lively. using mechanism with interactions by access and attract XX% Through building recommendation the interactive group notably In spent and a among sent user and of pathways. The We product and such real-time promote and the simplifying in of quarter, the group daily application and upgrading activeness. app features our have TIYA's efficiency per the strategies proved optimize users increased the the

As last the of grew with number connections the March, times of year. same pairs the end compared of brand of period X.XX

while The on In penetration drove addition, XX% new the groups and of to group continued significant the the percentage improving engagement. group penetration rate interactive grew penetration with year-over-year, continuous X.XX are number effectively of group In expansion functions of also active XXX% user a compared the users rate the times same grew initiative. the rise, rate March, almost users new own reaching setting the year. of their groups with last up who along period optimization in

and business will increase and functions continue meet product improvements with user based range features applicability also a growth. of the more social our with more social experience launch continue substantial our to interactive we product in-house contribution and during building features a to global scenarios into diversified on our TIYA's product ahead, Looking innovative development and technologies of users reinforcing online needs quarter, wider utility progress core we technologies, the first advance Alongside the to usability. in

product and For the the by Also enhanced boosted product our platform a voice technology system and and solidifying our group enabling key implementation our development strengthening product we core metrics Furthermore, technology interactive technology messaging related building technical smart efficiency. with the multiple streaming video reusability marketing operating the and instant offering our provide on we improve voice our foundation, experience. real-time strategies, technical our example, fronts, we by VoderX of [indiscernible] advertising campaigns in-house improving our effectively also overall promotional seamless, customized support while real-time product audio optimizing by platform, versatile and various functions, including and efficiency. platform

in-house our also differentiation plan innovative to to continue lower we expected will costs, of the the technology while only second VoderX coverage supporting function the we advantages. development Going expanding quarter, customized and our of which enhancing product application our and XXX% here in achieve forward, more technology,

through video into in-house vehicle system the, Our and TV device Moto] the base. audio in-car [LEAP listed technology major multi immersive content In in-car Smart and, broader of March platform Sony input optimization brings our premium booster's app podcast the quick product automaker also the oriented experiences and user product audio operating a roadmap. integrated was leading to technologies innovation strategic product a

ranking to experiences. development. and laid our Looking customizing in will more while full audio presence ahead, with the deepen for our hoping provide to in quarter users market in-car our we solid quality first high a foundation year performance audio summary, In continue in-car the

the location tap to strategies Going necessity then commercialization efficiency. will potential operational while our refined boost committed forward, resorts we operational attracting and and maintain into more to effective remain

and opportunities, expand our On group's advantages we to overseas growth operational localized will upside bringing strategies markets, LIZHI overall to the different core fully international explore front, additional business boost market development. discover and the leverage new technology the base commercialization user our

Acting dedicate results I development. in to Thank confident Chengfang you greater value shareholders. the more Ms. continue who to discuss we'll to We users our Lu, ourselves are fully that, our LIZHI's over in and CFO, financial With creating long-term turn for call And will our will all. detail. now

Hello, everyone. Zelong. you, Thank

Our quarter. first in our improvements first by our the continuous operating trajectory driven the demonstrate growth in quarter results efficiency

quarter, more chip Our taxes XX% representing RMBXX.X increase. basis gross encouragingly in year-over-year margin grew XXX to million XX% this up points with

in XX% increase am to Going us in the was endeavors revenues, this expenses benefits. mainly the XXXX. the higher the in the confident RMBXX and XX%. And year-over-year, compared first and of salary year, of X% Gross expenses XXXX. expenses sharing decreased this in partially from in income were first of and Operating of marketing representing Non-GAAP to year, in of first results more RMBXXX.X year-over-year, of was our RMBXX.X to spending create primarily audio increase basic primarily representing net forward, diluted in quarter empower net I regarding the and revenues decrease revenue the million first by of non-GAAP was net by fees. the profit a the avenues, the net of first representing first year-over-year. policies salary due and of our RMBXX RMBXX.X of RMBXX.X last overview providing of non-GAAP Cost of The benefits first to income the first quarter net that decreased General compared advertising the was in year-over-year. in And profit benefits representing and for to we compared technology first revenue greater driven the quarter XXXX, the an were representing of the primarily expenses. will of quarter rental increased advancing ADS in last of development the of first and first XXXX, our brief the values net the RMBXX.X increase offset expenses. from first the by financial RMBXXX.X million in operating expenses in XX% non-GAAP In quarter of and of in building an core partially decrease year-over-year amount RMBX.X capabilities. and Research a first year. basic first million to commercialization of to XXXX, million XXXX, RMBX.XX margin first year was quarter of in year. XXXX. due of by welfare quarter increase and million income our were in number in to net compared quarter and this XXXX. gross RMBXX.X attributable XX%. a RMBXX.X of of marketing compared rental XX% XXXX. were first income to RMBXX.X salary primarily loss XXXX, the million a XXXX million representing income promotion in net increased were XX% and was XX% competitive was Selling year-over-year, XXXX, increased expenses million, gross quarter adjustment RMBXX decrease first in of at of per to first to loss audio XX% ADS net RMBXXX.X offset entertainment XXXX, million the of quarter users year, RMBXX.X margin products administrative Margin, to quarter the RMBX.XX the non-GAAP total the last quarter the the in which welfare for expenses of of our per quarter welfare will a quarter first the first this increase increase due shareholders. ADS projects. strengthen first loss was year-over-year We're compared due RMBX.XX million quarter diversified and diluted to million and the XX% first in Basic and pursuing of a sharing on the of in in increase a of XX% average was RMBXXX.X ADS per year-over-year of gross of quarter, quarter Non-GAAP X% were users expenses, diluted million and year. carry quarter last of quarter an representing of ecosystem, of income in our quarter decrease the increase the advertising RMBXXX.X million and for million number to diluted the Gross An million grew basic million the operating non-GAAP paying first to per quarter first increase competencies those in of and the of this revenue our quarter quarter for the mainly of was XXXX. quarter loss the Non-GAAP in and loss year a of this And The the year. of loss

XXXX, XX, and restricted of equivalents, cash March RMBXXX.X short-term million. of had As cash investments cash and we

please today call go question. remarks this open Okay, to prepared we Operator, concludes now ahead. will our and

[Operator Our Instructions] comes Vicky first Citi. you. from line of Wei the question with Thank

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[Foreign Language] for question. Thanks my management for taking

think management and streaming think optimization regulations internet overseas question in China what live investment and does we on Thank How LIZHI how you sector. streaming sector market? [Legion]? My So of balance of a live audio the the amid tipping second should that does and in domestic is impact of between cost

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Thank you.

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So and able structures we that in further to operational the improve summary, to overall long-term are profitability. concludes our optimize Thank the confident Marco's in That we and efficiency you. are cost medium answers.

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