Sound (SOGP) 30 Nov 232023 Q3 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for LIZHI INC.'s Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I'll now turn the call over to your host, Effy Kang, Head of Capital Markets for the company. Please go ahead.

much. very you Thank welcome INC.'s and Earnings Quarter Conference Call. to everyone, Third LIZHI XXXX Hello, financial results and earlier our released We operating they available today, via are online. and services newswire CEO, call our will Participants on Founder today's and Mr. include Marco Lai; and Ms. Acting our CFO, Chengfang Lu. remarks, begin and financial business will the Management introducing quarter. in third development prepared with performance

is As conference being a reminder, recorded. this

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

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

our of business impacted a to or these not factors anticipated, statements Forward-looking obligation and inherent risks as its differ do projected statements cause underwriters involve information the forward-looking beyond may many required number affiliates, materially which and by accuracy except under control. risks applicable actual of of that undertake update The these The law. representatives and company, are to could uncertainties those results any from be uncertainties. advisers,

unaudited the that now Lai. unaudited measures unaudited Please will and CEO, conference and press to earnings include discussions non-GAAP Marco to LIZHI's earnings well I call to refer Mr. unaudited over Please measures. go turn a of note release of non-GAAP for our also GAAP Please reconciliation as ahead. LIZHI's measures measures. GAAP financial this as call financial Founder release press

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XXXX joining Third Earnings Call. Thank everyone. for you Quarter Hello, INC.'s [Interpreted] Conference LIZHI

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a quarter assets, while and XXXX, audio-centric strategy. execution a of ecosystem. empowered domestic we of the Leveraging million. our fostering third our In diversified vibrant innovation we XXXX, In RMB the online XXX technological quarter further globalization advancing business, business revenue of third consistently our the global long-term reached steadily our [Interpreted] strengthened the

average commitment reinforcing MAUs we monthly and amounted region. the charted, Despite long-term to paying users our XX.X pursued average XXX,XXX. our our macro headwinds, to million, totaled had steadfastly total mobile Our we course

reduce of efficiency efficiency During to development capabilities reinforcing support continued businesses. better diverse the also of and the to spectrum our quarter, and improve we our to globalization increase agility organizational cost while operating

our let third during me Now go developments the over business quarter.

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terms for In through creator committed ecosystem proactive business, audio of building base. healthy refinement our operating meticulous expanding [Interpreted] and our our nurturing strategies entertainment of to and content product our we mechanisms and optimization of a sustainable remain

solidifying our edges. the We while have also of platform's increased base scale enhanced our competitive creator the creator quality and

motivate vocal the strategic creative further launched top-tier while During platform's elevating in our our their designed empowered to the the creators appeal to ] quarter, addition content creator contributors. initiative content continuous also distinctive challenge, Starlight [ unlocking their and mid- and a talents, showcase long-tail we creators content This cultivate optimization content to of to the program the potential creator community. platform,

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[ more In enriched and the through strive ] and experience content product improve we to addition, high-quality attract user [Interpreted] offerings innovation. users

a and a added options. and We product augmenting suite carefully stickiness to user continue we ], enrich events, marketing and introduce users features experiences. Furthermore, culture content with diverse drivers user programs interaction cutting-edge active audio-based of new [ quarter, sustained diverse our of product engagement ] area singing harnessing our [ technologies more on and through to innovative we tools, content our engaging engagement. participation both based modules the with preferences, design and iterate curated During user to providing

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social functionality, [Interpreted] advanced products more. networking our technologies features, As we users AIGC business, our with cross-device capabilities, integrating global including delighting are for innovative and in invested real-time next-generation by deeply

Meanwhile, needs. to product thereby user cross-team empower product we product approach to engagement offerings, development our by leverage diverse We refine productivity. innovation capabilities to innovation, interface continue advanced to functionality. to as user product our effect technologies improve network enhancing areas, the operations our endeavor of continue we collaborative across catering to user and and We also localization increase boost growth. we Organizational-wise, have innovative a fostering taken organic other to key

Moving international will global ultimately developing expansion continue accelerating footprint. of capabilities globalization markets, forward, the we reinforcing and our

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to our turn, [Interpreted] advancement, to respect capabilities empowers This, drives product in product technological to across provide R&D innovation With continue support. global we business. strengthen customized more and our progress

training are deepened product into assets, innovative we vast innovation. and integration development consistently Through AI AIGC enhanced unlocking multi-model business the our opportunities and model of also have fortifying technologies optimization, our We algorithm ongoing more ] framework. [ for

On we to text of them languages, performance Chinese TTS, constantly and and automatic diverse speech and the improving been speech, recognition scenarios. have English voice adapting both technologies, stability ASR for for or and

we voice-changing scalable, We have capabilities. in-house high In our and VoderX, further information and quality the IM in DOREME, for instant into RTC latency audio our transmission also seamless achieved integration business messaging including meantime, video streaming. breakthroughs AI low technology, customized enhanced platform, empowering on with our a of real-time performance, the platform

of and data improved platform systems data marketing terms applied the our versatile management other analytics and In to technology construction, further fields. and AI we technology

development. general, fortifying business technological and cornerstone industry-leading pursuing Collectively, the we remain initiatives capabilities have the of the continually development. to to operating these technology advancements improved believe core overall We committed empower standards business In our technological efficiency. are

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powerful are the as Internet This honor, announce marks China China's was we of the and companies delighted capabilities Internet lauded Internet industry. that month, fifth our of China. one the Society Society by company top of received consecutive that broader [Interpreted] last the this XXX of representing to recognition comprehensive the year by have We

our ecosystem. will business challenges, no efforts we Going building more refining strategies the forward, proactively in spare despite macro competitive and a

resource technology of allocation, effectiveness while streamline deeply We company's business. integrating we propelling AI will Meanwhile, throughout continue [ the and to sustainable the fresh our technologies more improve with improve and will our core also momentum. AIGC long-term capabilities and voice adopting ] operations further the development

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that, more our turn over will now you call to who will the Thank CFO, all. financial I Acting Chengfang detail. Ms. [Interpreted] results Lu, our discuss With in

hello, Marco, everyone. and you, Okay. Thank

of revenues net third in Despite RMB during backdrop that quarter. and steadfast our technological remained in complex quarter market XXXX the XXX.X uncertainties core Our innovation the million. strengthening competitiveness persisted, the we were through

committed forward, enhancing Moving remain and developing stakeholders. deliver to organizational enduring our to efficiency, positioning we to further agility, us globalization overall capability value enhancing

XXXX our to the quarter RMB RMB year, revenues I'd results revenue audio decreased Now this of in same in profit Cost last was period Gross the XX% RMB XXX.X XXX.X like compared same XXX.X with in handling net was million last this margin year, year. in with primarily period XXX.X RMB year. in compared same the other costs. third spending million were XXX.X period of Non-GAAP in decline overview user last to due miscellaneous million in XX% compared gross million RMB total with payment revenue financial of compared XXX.X entertainment provide the to costs quarter same year. XXXX. period in the our a products. period brief this the and margin last in period the of of of last was quarter, compared this quarter our XX% compensation RMB million fees, was In XX% year. same of quarter Gross RMB share-based for and RMB users in paying of this gross quarter mainly average million XXXX in in with quarter XXX.X with sharing million compared the was the last the with Non-GAAP expenses, million of on third of of profit attributable same XXX.X

and representing quarter the the by and depending in XX.X expenses attributable market in period increased quarter in RMB severance this Research RMB optimize decreased year. RMB R&D were promotion expenses of the primarily Selling X% to of marketing an to its adjust period marketing services development XXX.X and to expenses million branding expenses. on expenses advertising the The last salary RMB offset and primarily million compared related increase and to discretionary with the third XX.X expenses XX.X the year-over-year, XXX.X due by and and XXXX will company the with RMB accordingly of partially same compared of of efficiency, third monitor pay were conditions. expenses Operating million XXXX, development million year, were welfare same parties. decreased quarter last related in increased benefits third in to provided million research

decreased and XX.X of period professional was Non-GAAP for with by income General of the miscellaneous quarter of contingencies X.X ratio with in depositary other the September operating the fees attributable on expenses. remuneration relation change period to RMB period XXXX other with RMB same million by RMB the XX.X million expenses XX.X loss in operating quarter in compared fees provision in period service last and million RMB the million year, year. non-GAAP of Operating with operating income expenses the ADS million compared administrative to were RMB was in compared last of third RMB same third litigation X.X last compared year. XX.X XXXX the provided of in loss year, in the million of parties, were the million of third RMB income same in third RMB driven of mainly last million the quarter of XX, to XX mainly same bank XXXX Other quarter of this in XXXX. XX.X

of income in net in the RMB ADS the of RMB quarter quarter Non-GAAP both X.XX compared loss of compared X.XX was per of and million compared Basic and million last non-GAAP with XX.X XX.XX per this RMB in third of quarter ADS and quarter period in X.XX RMB net year. the diluted diluted same of Net XXXX basic of million net year. both in income in loss RMB last basic of million of the same the were net of was RMB same basic and XX.X RMB last period XX.XX XX.X Non-GAAP year. period and RMB in XX ADS last loss compared diluted with the net with per with RMB third were the diluted period income ADS XXXX X.XX RMB income net loss net in and year. per of non-GAAP same XXXX third

XX, cash million. cash equivalents XXX.X cash of restricted September and we RMB of As XXXX, had and

our all again concludes Thank you joining for of This today. remarks. us Okay. once prepared

through Relations website, further our Investor contact Communications. the questions, feel or contact to If you have LIZHI's Piacente ir.lizhi.fm, on provided Financial information free please

concludes conference Thank you. This call. the

good disconnect Have You may Thank your line. day. you. now a