- Earnings call transcript Q3 2022

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Operator

Good day, and thank you for standing by. Welcome to Phoenix New Media Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to conference like to I'd now, hand over the Ms. And from Investor Guo Relations. Muzi Thank you. ahead. Please go

Muzi Guo

Thank to today then results operator. Mr. first conference Mr. you provide Welcome session. Liu; conduct Edward call. XXXX third Shuang of call I'm a earnings Lu. quarter a On Q&A joined management our review and here and by today's CEO, Phoenix our CFO, New will Media's quarterly the

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Shuang Liu

and you joining Thank you thank for today. Muzi. our everyone, Hello call

The macroeconomic third weak by XXXX caused for one outbreaks. demand advertising due challenging the ad a business and our to COVID quarter environment remain of

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accumulated video original Insights countries and in proven Language] all and [Foreign has followers The channels. as distribution value. social Our consistently employs, XX Global main five series media journalists influencers overseas with journalism across located with continents and its is collaborating channels domestic series XX commercial -- the million over

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We features. Moving on rolled and out our news coverage. upgrades to our to interactive several improve

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And efforts, time next the per by With by average uncertainty these and an user XX% joint XX% increased increased retention XX%. spent respectively.

to on like to progress move I'd in diversification. revenue Next, our

premium to our work original the IP develop new during and reading growth We We online monetize collaborated expanded our of epitome to further lay developing for segment our continue the derivative. quarter. with content library to of reading online platforms drivers growth

there although – for homes, numerous numerous For new have our been resale numerous home sales and real standard. product remain estate – campaigns the vertical, marketing

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product category and e-commerce, to in sales grow. wellness continue health As for

regularly our new our we Festival. service customer the review attended product wishes with on. world. product Weixin sends needs upward As important and to action food digital rate virtual the an platform, our molding coupons their featuring with customers last are repurchase. celebration all Julie in and substantially Combining of over has of favorite XXX, landmark the to components groups expanded image and collection so character Tower Chinese information quarter, shared and Forbidden added people are collection Tokyo which to launched selection, Mid-Autumn properly loyal holiday released The the connection to Phoenix our [indiscernible] [ph], a City, girl The the Taipei is Julie of increased

as news emerge reach committed virtual In will a our clients younger to influence as set resources continuing [indiscernible] enrich the sharpening organizing through events priorities. At of our new clear to characters events, trend our marketing, and complement forward, focus to the assist marketing and strengthening advertising offerings Julie our coverage despite align macro our more, brand products. in innovative to remain headwind, same summary, we working digital future breaking solutions our audiences. we're Going and upgrade to while time,

business With CFO, call look on our forward, remain evaluating prudent, provide shifting Going business and elevating initiatives, in will Lu our to quarterly pass Mr. with into consistent aligning closer dynamics high financials. now will influences brand delivery of our through we the that, I to industry a with certainly our Edward contents value.

Edward Lu

of mentioned for XXXX. walk I Thank and through will now in RMB. be you, third hello you everyone. the Shuang figures All quarter our financial performance will

Paid the spending advertising million compared regions to in advertising of in certain RMBXXX.X intensified third million in RMBXXX.X RMBXXX.X RMBXXX.X of year. from outbreak year. in the third did XXXX certain China the the such negative XXXX. entire same the same period quarter the last customers. third losses RMBXX.X million not were revenues of because were mainly amount relating were decrease the for content compared year. mainly due the to spending RMBXXX.X in receivable was of compared elaborate, compared in And from To revenues reduction operations revenues of of of same the Our recognized competition and is million, to of period Group. quarter we credit total COVID-XX in million last accounts to Evergrande industry-wide million in industries to RMBXX.X last allowance services in reduction of million the in and of the same XXXX, in advertisers the net impact notes third receivable The period of the year. the the Loss decrease to mainly the quarter. due million quarter in certain company was the period million, was RMBXX to The of recognize loss last in This RMBXXX.X

attributable period net last the XX.X also addition, loss of Net CNY year. decrease income the was measures million same million CNY to was compared In iFeng implemented. in to strict cost to attributable XXX the of control

balance our to on sheet. Moving

As the cash cash and XX, XXXX, the restricted and X.X deposits cash RMB short-term for equivalents term or of company's US$XXX.X September billion, million. approximately investments

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

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

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

CNY our This to which For between macro subject came In paid under are summary, million. change headwinds. current forecasting preliminary quarter and service forecast we XX.X pressure to CNY uncertainties. and current this million line reflects the substantial and due our top revenues, are view, XX.X increased

we to clear a on align type expanding While of we stream, remain are our dedicated diversifying sharpening resources and media focus our priority. appropriate presence to working revenue to

achieve to such, better As a the in our us we concludes continuous this of sustain will us and levers adversity believe portion This future. prepared our that margin through call. recovery prepare the

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

Operator

Thank you.

the now will Instructions] begin question from Zhang ask the Please We first XXResearch. [Operator question-and-answer line from Xueru of your Our question. session. comes

Xueru Zhang

Thank I your you. you for my have taking Good question. morning management. app one business. regarding question Thank

cautious demand, wondering market? you Thank recent ad help quarters, stay platform in seen competitive -- while that you. that company platforms slowdown we've advertisers the the During the can outstanding. what's their a I'm are other with in

Edward Lu

in morning, and endorsement our Good increase your of These strengths the for. stopped differentiated lot the speaking. This media area. for premium a competitiveness replace we Edward is to and But key do we for trying Thank challenges. you and our Actually never are brand of question. advertising face Xueru. content this is you value

First and high streams. effective is high our This of essential been coverage to have marketing. brings news traffic, key of engagement, user always our all, us especially topics user the which and creation hot breaking

[ph] to of be product News audience space. international the and the these information development elevate significant implications the to dynamics. with a seek also and topics Brands exposure carries of to the greater associated

our are mini resonates through as Our advantage customers advertisers their documentary with and solutions brands connections courage, target establish content resilience, content with key values and excellent and in marketing. marketing conveys an to shared type associate this Well, by of that we to universal love. our earlier, our we is like clients. provide also creating comprehensive committed brands with alike. The such their example Journey audience values content persistence mentioned account users The of It

margin. We in general to advertisers are creative middle- in gross and to marketing which content with small-sized catering higher solutions, combining

Our us brand to niche differentiation reach market. helped also

enterprises of overseas. business example, number expanding growing Chinese For their a are

culture strategy more promote marketing and As brands they can tap our world. the of total and into to need different generally they perspective. contracted our resources market, we and effectively all global often brands Chinese our things KOLs complete over abroad their build the from global highlights, a with network And a

can able very few carry they overseas the ability the We are Actually, to pandemic. media also marketing execution in out market. under

on now mentioned large above, demand instead portion that of budgets marketing on mainstream through in on media have light shift budgets of of social the campaign. all of In spend they marketing advertiser their their important of we media is Another this break I must media. prevention emphasis barriers and a change, spending

base platforms Weibo, Kuaishou. Kuaishou and of have accumulated including user BiliBili, Weixin, XXX priorities. We monetization our and a million large The one of become strategic Douyin has & the account this third-party over development

We have platform. plan laid for out action third-party a on our detailed operation

answered questions structure will unique competitive team for are resources your for this effort clients. believe revised continue have with this bring value account. monetization to hope to we also the Our Xueru. target our I I and I stay and

Xueru Zhang

you, very Thank helpful. that’s

Operator

your Thank question. you for

of your from line Tang the Alice. from Alice Please comes question question, Shanghai. next ask First Our

Alice Tang

management. morning, you my Thank taking for Good question.

is cash since will fair give an items. a how still sheet the us company cash? you used, question Can be update my balance the you. have on Thank regarding amount the So of cash

Edward Lu

Yes, X a in billion to very Hi, Currently, reserves, macro cash. Alice, strong crucial sufficient With very thank we us point, question. we capital for manage this you for cautiously. now you fix our right. than position are still more ever-changing to are existing At in environment. have the RMB such it's the

can receivable. burn, We specificating, healthy bring flows sustainable, to down our only set returning strict have focusing from The very goal faster if business cash and you to generate on turnaround of a is operations. cash accounts a profitability by

structure to way reach optimize increase goal operating and efficiency. that is cost Another our to

half Our the first during cost paid management have year, efforts of the off.

our year-over-year. and substantially. expenses also quarter, G&A by this expenses our And decreased XX%, sales During the marketing decreased

So operating while manage positive position cautious driving cash and overall, we to you, will Thank continue our flow. Alice. achieve to perfect with operation cash and

Alice Tang

Thank you, Edward.

Operator

Thank you.

to so of hand sign I Now no there will management was for questions, remarks. team back the closing

Muzi Guo

Thank you.

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

Operator

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

now disconnect. may You

Phoenix New Media Limited (FENG) 15 Nov 222022 Q3 Earnings call transcript