JG - Earnings call transcript Q4 2023

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your host today, Christian Arnell. Thank you. Please go ahead, sir.

Christian Arnell

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

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

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

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

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

Weidong Luo

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

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

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

discussion growth comment to give for are the this performance as The reasons is and growth, if follows. quarter quarter, this the Overall, were for of growth. a I appropriate

the for quarters EBITDA. adjusted record, of a consecutive first history, positive have we Firstly,

in revenue our quarter total single every Secondly, XXXX. grew

quarter and great of also overseas continued of gross least, not also XXXX. quarters quarter. every our revenue expand this XXXX. revenue Last growth product, recorded profit recorded Subscription globally grew results Developer our Fourthly, in but Thirdly, sequential EngageLab, in all to

light let Next, me business the on shed and more revenues.

growth our revenue, by revenue. For group X% Services the achieved quarter-over-quarter, mainly in growth of Developer we driven total positive

streams. through Subscription consists which go Services by decreased our the and Services, me revenue, X% due weakness different growth year-over-year to Services. but revenue Value-Added let to offset Developer in Value-Added Services Subscription in Now Services, of quarter-over-quarter mainly the X% the grew X%

increase discussion quarter-over-quarter. revenue was detailed Next the of This XX.X Subscription X% RMB million, mainly is driven line. in were by up quarter-over-quarter. both business ARPU year-over-year Services year-over-year and and each

Within ARPU mainly the for has come. completed year the XXXX, very many more this I'm the all steady quarters believe in a Subscription private good results sequentially throughout increase the to deployment in XXXX, QX our Services In by customers. trend revenue encouraged of year. and grew purchase team handful due X will

notable limited to Pacific Singles' XX% advertisers allocation the and just of few. but SF decreased their and Services Value-Added this and Everbright Finance, spending customers Double the quarter-over-quarter, renewable Insurance in increased include QX, Bank card festivals XX% new increased Express, year-over-year million, a budget X.X was but us. to Telecom, where due Day China in to center name RMB Some were annual credit XXX revenue China quarter by to more online shopping which XX and not

in QX. event However, no such

news you great QX and would in we I like had business. our EngageLab to some share exciting achievements Next, with for

our This growth signed we Firstly, by EngageLab more to the end quarters. XX% purchase tremendous of up between had the saw XXX product. than XXXX, customers

quarters. XX% has growth Secondly, between the million, cumulative representing EngageLab great contract value XX RMB the of a

countries different are EngageLab around customers from our the world. Thirdly, XX

number impressive for tough in We an achieved EngageLab in overseas grow business. business we the quarters has and value quarter this to the show every team record uncertainty hard market the proud did milestones aim quarter, the we and environment and very our work to is QX means we I'm the of it. the the over As in between order earnings such in that graph, past put growth. contract air. easy considering no This an customer task by great

demand continue EngageLab We to strong see product for overseas. our

aim feedback Our and use WebPush, the AppPush, service, we EngageLab enabling the EngageLab major WhatsApp advantage of key platform, an on more customers is importantly, effective countries customers a in our to expect customers business We to customers' different we meet to SMS product a continuing for of messaging their achieve fine-tune regions is our product stay the game on basis, manner. yet customers API. to one-stop services, ensure goal, in allows WhatsApp channels: us customer our engagement by e-mail Based any following -- our cost-efficient the engage and to regular it our global expectations. our and received, own products of ahead

Vertical over the about and aspects to will our who quarter. call performance the this pass share now will of I Shan-Nen, that, Applications for financial other With more

Shan-Nen Bong

Chris. Thanks,

I'll had Next, Management where of Vertical tough where and go a Risk made it up is quarter, Market recorded single-digit revenue for and the both over Intelligence. Applications year-over-year decline Financial revenue quarter-over-quarter. Vertical Applications

stable quarter-over-quarter. Financial However, and revenue for pretty grew Management, XX% Risk stayed year-over-year much

in recorded the growth. trend a number other revenue limited [Foreign fact every that number The that is by growth customer XXXX. growth Finance, China. quarter we was we XX% year-over-year have particular, observed Language], XXX up customers XX% customer [Foreign In of financial to institutions many include not sequential has and that Meituan, good have throughout positively These Language] licensed one but signed impacted QX

revenue the some ITE, funds. app Intelligence, amidst towards XX well-known remained Nevertheless, Chinese-based and the to as Market Chinese Baidu, many ADR still to market fund for slow sign managed we for such lackluster. data demand and due condition, global weak investment large up decreased the quarter-over-quarter continued Taobao, sentiment XX% as this top-tier still and XX% customers year-over-year investment As hedge

In expenses XX.X million, the sheet of decrease year-over-year operating The XX% quarter-over-quarter. are the some to and our a slightly has but XX.X through and of years. we very Overall, was key expenses year-over-year single our QX spend RMB to On efforts go testament items. now increased our X% is monitoring at I'll representing OpEx wisely balance CNY operating expenses. commitment summary, pleased every with This million. by expense QX between penny. control decreased

And its if RMB previously management's again you effectively look the a at the decreased announced. million This years, the by an XXX plans representing year-over-year. OpEx on basis, to shows as has determination execute cost-saving it between XX% decrease annual

business, at we growth execute growth sooner this run result With come fairly will I phase the believe I long top managed the and stage, the next ready is relatively so well well, for as think than later. line to cycle. OpEx to this the is company -- rather ready group low

OpEx share-based decrease individual R&D year-over-year RMB depreciation particular, due compensation by Next, XX.X categories. a I'll initiative. salary In expenses to expenses costs million, mainly and the due and go reduced XX% and the decreased in headcount associated to through to lower cloud server growing

decreased streamlining recognized to year-over-year XX years. loss also XX.X in between the Further contributed expense at to Selling level. of noncash and to resulted year-over-year due CNY a onetime the salary by of the XX% due to XXXX. expenses in million, mainly impairment a to costs last make as in XX.X G&A million, optimal headcount salary marketing to decreased from million adjustment by operate decrease decrease RMB RMB year QX we mainly reduction costs XX% further headcount of

positive event ended another And which currency reduction adjusted impairment foreign for as in long-term change EBITDA, adjusted of the in quarter. quarter consecutive this excluding force EBITDA where a value the XX/XX/XX, historical recorded investment contracts, share-based positive this quarters calculated the And have adjusted fair and is is EBITDA. charges, of compensation, of we in EBITDA

On sheet. to closely I'll two that share we the important balance monitor. KPIs very

a days, terms customers of improvement AR quarter-over-quarter. as us collection cash which is days. XX at X turnover an at let XX to shorter is healthy These days time. days leading believe a in is industry even days days collect they from very of continue We We this maintain shortened period the turnover important X

for the the cash of advance collected contract for Secondly, is which to we that customer in This one is the key XXX.X of revenue, represents performance, financial of balance high SaaS the of KPIs million. total company million. be our track RMB continue revenue same are performance eighth And flow, more is at advance consecutive risk cash from collecting our in deferred mitigate quarter the CNY very This we debt. customer. bad as balance important XXX exceeded time, has cash this where of greatly future improves

we XX million from a flow, spending. have inflow we cash combination great cash tightly collecting inflow total the And XX.X XXXX, actively team of and On cash of was million. recorded CNY of customers, control CNY our in we operating QX sales cash net where and this of our another cash quarter

XXXX. and fixed cash deferred of total XX. million XXX.X and assets accrued million assets XX.X of Next, CNY other of receivable were cash XX, of payable XX.X million, million liabilities X were million, CNY accounts December of in XX.X revenue lease XXXX. current million, operating million. intangible million, of of XX.X and prepayments million, CNY December from assets current X.X includes RMB March as SendCloud includes XXX.X Total accounts XXX investment XX.X as the million CNY CNY acquisition of This of liability equivalent of of long-term CNY CNY CNY XX.X XXX.X liabilities goodwill of million, CNY of million, XXX.X CNY million, current at resulted This CNY CNY assets

the operating our summarize me the have earlier. every years. juncture, in and quarter this time more Subscription more and take operating XXXX. EBITDA. At few are grew growth signing revenue expenses of that by positive and In quarters CNY sequential single recorded annual EngageLab first for And also all to Developer of Chris our quarters profit million in quarter we minutes of QX Gross mentioned the here has adjusted customers XXXX, in contract growth between XXX up let total XXXX. Total revenue has a quarter. of And every product decreased globally history, consecutive

result We this shown has have many such. right things in quarter as the and done

We the not Nevertheless, with execution, are very will on laurels. numbers. and efforts our QX sit we pleased

plan deliver We execute to continue our will goods. and the

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

remarks. management's prepared take happy now. your concludes We're to Christian? questions this And

Operator

first [Operator Instructions] take now our We will question.

] Wong line question from Calvin [ Spica is of the from Capital. First

Unknown Analyst

First This ask would for congrats to may. to you, EBITDA. two Well done. management, is consecutive quarters positive I questions, of result. a if of great all, like I adjusted

follow-up to management adjusted will going question. first one, this trend want on adjusted forward the first just see a EBITDA. That's how The in XXXX. you EBITDA I this hear from

second And on EngageLab. again question,

lab been quarter. we've know every tracking business engaged You your

So it value of expectation every and results in great with our seems that than contract better doing number it has quarter. terms been customer

expecting you the in are we know like a, So revenue explosive by quarter contribution would to growth and b, every forward; quarter? is such what things: X going EngageLab this

Shan-Nen Bong

Okay. Calvin Thanks, ]. [

take me minute question. recap a to Let your

one adjusted you of shareholders event yes, positive and in This Yes, delivered recorded. So adjusted that see take are Yes, of our EngageLab. in thrilled positive another for one two fact that and every is day, I I us other a that QX very are quarter since hard EBITDA we pleased work the on the besides of possible and adjusted XXXX. positive we the have the is you, IPO this questions, said, this out, this adjusted with we investors putting is have really to day EBITDA guess, I And is question. to to believe historical let on that me EBITDA are we positive as have day quarters X and fact EBITDA.

decreased numbers XXX to quarters, you'll the And see the like we'd I there if over important the is as that we most Between annual of OpEx deliver CNY the the has between and message million. actually XXXX one the years, X OpEx trend good peel XXXX thing think through mentioned. by

we we we in million or all initiatives reduction rental we So expenses, trimmed our have CNY have and cost-cutting more to XXX expenses space. reduced even the saved reviewed undertaken, than then that XXXX office various headcount in summary, from

in to year seriously been the So our over months. OpEx working we reduce hard past past have XX the

really lower this are much important. for this what good a really, we XXXX. With in is position means So OpEx,

natural domestically or As as line EBITDA the will as positive globally, a so believe course events. sooner I come of EngageLab to top said, we long continue adjusted or through I our grow later,

So question. first this to answer is your an

let happy by well. by is a QX again EngageLab. on it's overseas. that the and result trending are me very things in as to you is company I question I for for dedication And the has to mentioned. and expand by commitment this Chris our second recap think And EngageLab the of the achievement have he's And guess, really our investment team no the great true. mentioned that fluke, Yes, fact see Chris, that been

RMB Firstly, the impressive. world. number by different QX. grown the And XXX XX% million contract grown quarters. -- And the from quarters, cumulative between the around to customer the value to our number customers achieving XX% come secondly, XX up countries thirdly, has this revenue growth customers' has And is XX simply XX% between

So single grow in every business for this to summary, we do hopes have quarter. high

I As due where share we we expansion quarter, to in further believe have a position proximity, plan. just Chinese first overseas And last overseas high we ISV, software off our the to to penetration that especially the we more familiarity about is have talked solidify last started Southeast cultural the previous teams grab market, week, there. And mentioned addition small of team vendor using market in kick market cellphones arrangement to Asia, started can quarter, and in independent sending I the Singapore our there. to

the is this So EngageLab.

revenue And the -- that years. recognize on the it on the revenue depending be still of is X year fact aware, length for This contract, contribution is the you're it not X based simply you as we you that, material. asked, amortization or talked

So that its will the I CNY way years. to mentioned XX the books the million over earlier contract make

I revenue, explosive revenue recognized can of from grown means the that the on number growth. to with one XXXX However, is revenue, you the which Xx EngageLab is share which is QX QX, recognized lab has overseas

I leave this callers all the to is fact would today's the that with summarize, is like business our message So call, may EngageLab and if you I great. in doing

quality quarter. your necessary ], to answered continue this every We to and to and Calvin invest will continue in every infrastructure [ market Asia delivery we'll the service, explore great in ensure single service question. hope Southeast

Operator

Brian line Global will question. of the This our now from next Kinstlinger take We is Alliance Partners. from

Brian Kinstlinger

service new maybe and mentioned, I what on are Can grow the industries have continue to new I Subscriptions the business your whole customer a due economy ARPU. bunch. the are to have I think impact nicely, generally, about the this accounts? are you trends talk offering in like? might this XX But higher What growing And heard you subscriptions ability or Chinese having. recovery? to discuss driving is quarter.

Shan-Nen Bong

any industry, concentration. Okay. for Yes. subscription, Thanks, Brian. guess I we This don't see is for Shan-Nen. particular

board. it's think I the across

we how this ago, than infrastructure, the people As we us. for mentioned a employing couple a employees, a notification investment. seen outsource they than of willing change quarters push do look company to like of to in years, investing past at now are terms few have work, more own to Rather in engineers their

where customers, So new change be or we pick private by companies. it up we of this terms cloud. That's public mentality all the in cloud see

in do we new -- see terms any this the of concentration are So customers from. not where

Brian Kinstlinger

and right the offsetting subscriptions in now could demand the you speak just Is us you the having strength on it can economy impact revenue? much neutral better of take your China. on on recovery? Is through it kind then Chinese And impact to is Just your in to the the economy? the do

Shan-Nen Bong

Sure.

market If relatively that you can and the will growth, compare through domestically, such but not is it where domestically. low but a overseas, you that domestic do -- sense growth we think is from. still stable sure we I'm go Yes, see growth we overseas explosive

Brian Kinstlinger

revenue. your on impact big a having know is EngageLab But

in So assume I coming now? in still is China recovery the growth

Shan-Nen Bong

growth slower is much Yes, yes. But the to EngageLab. compared

Brian Kinstlinger

driving more? you change so, there And confidence? you subscription opportunity still what ARPU can is And if per gives then to that And even grow the ARPU quantify in that's this?

Shan-Nen Bong

QX X,XXX. it's you it's RMB around look And the Sure. ARPU XX,XXX. QX, if XXXX, The CNY of come from at --

well this have of do contract single-digit And as seen where we that pace, much we growth. which fact the some to is see but at cloud year-over-year. to to private complete this XX% about this bigger growth a able of project continue So are is the And a X% grow much Okay? value. slower probably is we of partly

So are increase driving the yes, to price the an same is the annual much. not we On ARPU so basis, what is able too growth. customers, this

Brian Kinstlinger

in such stabilized. line other terms will that to market terms Vertical begin Market begin helpful. then Applications, conditions services. revenue That's and includes like of revenue nonsubscription seems base it. What to get has Intelligence know I But more? this has And of in happen revenues and it Got that to recover to even confident as grow

Shan-Nen Bong

Yes.

you look in much in do If it. the not at a advertising business, as way, invest we

its on run it let we So course. natural

overall the QX, and And market advertising in the on sentiment, pan you fluctuates, single being fairly look has QX So what much the we've peak year, XX. at is QX Double just festival. If depends mentioned, X/XX out QX the will how Double right? fourth then the got XX, every Chris this online quarter

are these So X the peaks.

that Services. for So Value-Added is

for Intelligence slow numbers. Applications, Market seen Management year-over-year. overall But a doing still And doing the of well. for think terms I in well. Risk It's Chinese XX% bit is Vertical is APP demand It's the is Financial increasing what we've ADR

this where companies creditworthiness or to cards. lenders of credit the So the their the who the individual get earn of we or trying -- borrowers is the money, credit to are banks borrowers

services. bank see up this we buying the our terms of inquiries. Each trending So in is

look if something Management growth. business, that the hopes X we have terms Risk So in higher non-subscription Financial of is you continued at

Brian Kinstlinger

sheet, X million. Got it it. by looks to And cash then just you like increase balance the quarter-to-quarter CNY

if quick I million think I a and calculation heard I X change. was CNY operations, from flow, did cash up

compared cash what sequentially? sources of that flow million to So increased CNY million other of X CNY X.X were cash the the

Shan-Nen Bong

in -- of Sure, we made. sure. that we the have We investments one divested QX,

that. on additional received made we So based some we -- some cash

under that's activities. investing -- are those So

Brian Kinstlinger

revenue? That impact divestiture, on does it have any

Shan-Nen Bong

investment. divestiture It's no, at all. No, of not pure

Brian Kinstlinger

correct your I'm I wrong. quarter other the with us first assume is any seasonality. me holidays, And quarter given Great. if then help on weakest And seasonality, lastly

you sure the I second think strongest. you're fourth make I the seasonality. the want that to I Or said quarter, and completely understand just

Shan-Nen Bong

Sure.

overall Year, month, look Chinese in have fact if QX you will shorter even everybody If of China, the that business, entire be New of terms you may, the away. the a at is slow simply February I is because

thing sign and else. So the contracts do to last they want is everything

slow in I definitely the service non-subscription Services But think peak is ad for the will will QX. only QX which business, be So QX and a Value-Added season.

single if should is others, uptrend every assuming should from quarter we see as economy the it QX. an The doing be,

Brian Kinstlinger

assume previous won't the I And in quarter, reading positive. following how in it right? be? am seasonal to I I Is caller's EBITDA you But that be quarters Or given first you the question, the weakness that, -- will right? I reading not that am

Shan-Nen Bong

Yes.

QX think it -- say. be will you what be positive will it to get I will pretty much be EBITDA. difficult

Brian Kinstlinger

Right. after? you'll you think around be breakeven Do

Shan-Nen Bong

the that's Yes, yes. the goal. goal, That's

Brian Kinstlinger

Yes.

work And the the nice year. recovery Okay. on over

Shan-Nen Bong

Thank you, sir.

Operator

no this questions [Operator further Instructions] time. There at

So I will Thank remarks. Arnell to the now for conference you. hand back Christian closing

Christian Arnell

And questions reach good tonight. call any That evening. to the you, joining and or Thank concludes the hesitate have call. you out have for the a if comments, don't everyone, you, to please Thank team. further IR

Operator

call. you you Thank now disconnect. may you. for conference This today's and participating, concludes Thank

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