FENG - Earnings call transcript Q3 2021 | Phoenix New Media Limited

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Phoenix New Media Third Quarter 2021 Earnings Call. [Operator Instructions]. I must advise you that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Muzi Quo [ph] from Investor Relations. Thank you. ahead. go Please

Unidentified Company Representative

our you, a Quarter Thank today to New and management a Liu; Phoenix our Lu. conduct Mr. All today's then of On Earnings operator. the Conference Third call, and Shuang Mr. XXXX Executive first here session. Financial Call. Media's Officer, Chief Edward provide right. will Officer, Welcome Chief review I'm Q&A by results joined quarterly

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Shuang Liu

Hello, the you, of everyone. content In content committed capabilities. leadership today. Thank Quo. joining to continue and our environment call for you to while uncertain navigate third our in competitive remaining Thank original differentiation macro Muzi production an core us quarter building we XXXX, on

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times X been million on on Our and our times XX over viewed has platform original content million Weibo.

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our increased extended client the third wellness of column its have also lifestyle-related sectors Lab underrepresented, previously to to XX.X% cosmetics broad and quarter. in balanced number help mix. our we were tech such presence us spreads. shifting On of more We health increased by advertiser brands as our in to from sequential focus followers Phoenix XX%, deepen where and products the and revenue total a basis, a This by

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within enhanced terms distribution the and popular app, selecting high-quality we In by recommendation distributing interest-based method delivery and strategy. from distribution algorithm of complements We-media contents the of This our content content accounts.

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certain the enhanced quality users. of the content of reducing from weight also interest weight reviews in feedback the areas core increasing users have of by and our less reviews from We on active

was our our click-through content increased by and quality was the of Following distributed XX%. these rate adjustments, optimized,

progress diversification. in Finally, share I'd revenue to like our

reading, monetization [indiscernible] make our last X-year First, we recordings, content. completed we for for agreement Meanwhile, platforms strategic our for reached its with channels premium progress online XX we new to In our building and access to continue future and in quarter, IP an books. expanding regarding books for various audio authorized operations. a team building pipeline -- recording started over audio cooperation

cultural for and recovery differentiated execute with of creativity on we'll continue to As products. ensure and national strategy the this culture for museums culture hand, the merchandising e-commerce, of quarter, conservation heritage preservers to our one scarce

Phoenix the on master other launched the an original culture [Foreign on hand, Language], considerable innovation On attracted has video platforms, traffic. column, content and that series social we

houseware, same in our food, wellness, clothes we product incorporated and in and health the selections For accessories. crafted gourmet

anticipating In environment we client structure Finally, balance companies forward shareholder relative sheet proactively challenging group real healthy strong a and we the debt Evergrande estate as and response, of optimizing going government our estate regarding backlogs. real risk base defaulting, with our tightened on regulations focusing increased. our are and are vertical,

value are rigorously international we Additionally, in order curve. quarter, monetization than industry our we've create focus advertising optimizing growing presence, our chain new expanding to In a our undertaking new growth the maintained strategic along client products on business the verticals, initiatives other third capabilities. extending our and our during summary,

face to industry business initiatives, continue result to CFO, as our original content. uncertainties, prudent of call influences dynamics elevate look a will a in pressure provide consistent macro plan turn into closer our remain that, our delivery of While current Lu, we the financial. to now of brand shifting the with through a evaluating and the With I business to line we Edward quarterly

Edward Lu

you, today. thank all for joining our Shuang, call Thank conference you and

quarter quarter to of period of was same same of of the Our operations now million, last decrease million other million, quarter total million Net a XXXX XXXX. in million Operating paid revenues by some Paid RMBXX.X third third advertisers the XXXX. increase I increased year. were million XXXX XXXX RMBXX of from related same reductions the in RMBXX.X to in audio books. revenues in last RMBX.X year, same last of of the in X.X% from the third the from year. million the the of third XX% to provide same to XX% increased Revenues from RMBXXX.X from RMBXXX.X decrease was by in period licensing spending representing last X.X% third the advertising in in negative operations same revenues fees XX.X% of loss period million of to of XX.X% million advertising on a in in XXXX of same the additional of XX.X% third the year. year. from RMBXX.X quarter quarter Revenues the were last representing period due by margin and period. RMBXXX million from the quarter from of compared the million from mainly industries e-commerce RMBXXX.X revenues negative RMBXX.X quarter of compared of during period the quarter in in third of content period revenues RMBXXX.X from XXXX services in to Loss in the third color XXXX to million XXXX period RMBXX.X of last the year, in in to certain due from mainly the in increased the will of

expenses X.X% the net loss debt attributable from earlier, in compared were headwinds debtors. where year. particularly third Net Non-GAAP in to quarter iFeng These same to was Non-GAAP XXXX loss certain year. negative third year. as increasing RMBX.X strong compared operations loss the attributable from period XXXX same attributable period of slowdown of macroeconomic incurred XXXX of million in challenging income quarter. the quarter Non-GAAP RMBXXX.X the from continuing non-GAAP million As of to period loss continuing period RMBXXX.X from attributable we the continue iFeng operations third from bad last last the margin RMBX.X operations the was net net iFeng year. XX.X%, estate the the operations the of we operations to loss as challenges was to to from in iFeng from industry million the RMBXXX.X RMBXXX.X from operations non-GAAP was in to million million sector, quarter third in of same operating million well of third XXXX in of landscape last last continuing in quarter continuing face mentioned real same million to to RMBXX.X of negative in compared compared of of in

our to on sheet. balance Moving

short-term cash As the USD restricted company's and RMBX.XX approximately or were deposits, cash equivalents, of billion, September term XX, XXX.X cash million. XXXX, and investments

like of to the provide I'd quarter Finally, business outlook fourth for our XXXX.

to revenues total RMBXXX.X between RMBXXX.X forecasting are be million. We million and

forecasting million RMBXXX.X between net RMBXXX.X and revenues, For million. we advertising are

we million. forecasting revenues, million RMBXX.X are service paid RMBXX.X and between For

efforts our plan Leveraging and concludes such to cause profit business shareholder While This may term. through our mix. TV, Phoenix stream future. convinced are managing competitive We expenses, resilience we the in enhance we operations adversity our our navigate margin our in improving fostering in optimizing our near to with will portion volatility differentiation of be call. prepared content, to our remain revenue by the we proactively and collaboration that committed in able increase the way our value our original

We for ahead. are now Operator, go ready questions. please

Operator

[Operator Instructions].

first Your Xueru Zhang XXResearch. question from of comes

Xueru Zhang

to any also outlook? you to I on wonder regain are if color take share going And the growth could measures your some we business momentum?

Edward Lu

and our Xueru, many business is must have intense Edward strengths, well. and face our There future macro well business. review and environment advertisers Actually, we negative opportunities. speaking. affected challenges us, as these this our we are by competition, as being our on impact weakness with advertising do but is all and challenges analyze brand thoroughly as This regulations face

We drivers plans of the have accordingly. strategic revenue and behind on done a each thorough our analysis part advertising goals and action set

users active revenue. We Our made the to in the drive our user increase programmatic plans app. our and advertising retention time overall spent

For user richness of user interactions app our are our our groups, to we more targeted content. and the upgrading increasing allow

continue to to product efforts invest have to value. increase our We commercial in its

our actively clients; focus parts: and advertising, our need In on base. one number we of expanding On are we increasing brand to premium. terms the of pricing X client Increasing hand,

tailor client resources wider to are a our We to marketing base. upgrading

project For markets. colleges. [Foreign example, Language] closely are to It targeting our younger caters with who works like advertisers

Also, Lab, FMCG reach us out expertise product to product the professional exposure We promote through followers, with advertisers and endorse sector provide a in use have millions wider testing Internet. in influence marketing, advertisers third-party your [Foreign on MCN, our channels and Phoenix to and our Language], through of the reviews. advertisers our of for platforms increasing helps Our we followers media selection product.

needs. network content with to customers globalization creator overseas helps Our reach us

growing base, premium. key to from continue our Aside to our our we also brand elevate as influence customer pricing

brand and in content is our reflected original Our events. off-line influence

we support maintain to events. enhance and allocation to premiums. We to guarantee so, and brand our doing more By awareness to will optimize content hope our advertisement our trademark our resources get

Operator

question next comes from of Shanghai. Alice Your Tang First

Alice Tang

saw So credit that we up Evergrande's quarter, has bad amounts risk. this the built to of company debts large due

will explain So some management, future impact us could on it color of company's the business? Evergrande have what business impact on the on perhaps further your also give operations? you And

Edward Lu

Thank you, Alice.

this issue big liquidity impact had Evergrande's on a right. You're us quarter.

course, up our accounts We this on close we and was balance. to will million. have are impact Evergrande. But quarter's to the attention continue RMBXXX notes paying The our financials, to loss off overdue receivable on operating a follow And the we prudent, written situation. of of be on receivable from income fully the

terms relevant ensure in debt, and auditors we So followed of our take provision. always bad standards, always to sufficient accounting with closely we have work we a

we show major to But pay At signs half third default market. year, actually full future. of on uncertainty huge collect delayed time, But quarter, the in had these other this in in be bad there the first Evergrande For is the accounts, didn't the to in the flags debt will take same the started red us Considering the risk. from though, our they additional there a of see no in provision whether expense Evergrande we hand to we quarter. can on on financials time.

top had is was and them advertising receiving we been year. our the future Gross might of this impacted extra be good, we to business with and in Evergrande mold. cost line chunk from of our per time it work the bottom As make margin to up. September on Losing need the means impact work on business, and this to future, relatively our most hard their negatively until payments

estate Alice, team Our to relatively now and the are along of I credit exploring business balance I the question. our base the real actively expanding with industry and have answered downstream client we healthy more is take sheet. actively upstream good Also, a your opportunities. chain hope

Operator

questions Muzi for back now There to to are the Quo [ph] like no time. closing this further at remarks. hand I'd conference

Unidentified Company Representative

operator. you, Thank right. All

Thank for free session day. a Please We on end conference this have to feel Q&A us you further the us have you any to contact today joining good Have come call. if questions. call. our our and of

Phoenix New Media Limited (FENG) 16 Nov 212021 Q3 Earnings call transcript