QTT - Earnings call transcript Q3 2021

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Operator

Hello, ladies and gentlemen. Thank you for standing by for the Third Quarter 2021 Earnings Conference Call for Qutoutiao Inc. At this time all participants are in a listen-only mode. After management's remarks, there will be a question-and-answer session. Today's conference call is being recorded. the to turn Wang. host, now will call your over Angela I go Angela. Please ahead,

Angela Wang

very to online. The Thank of Welcome have via much. you everyone today, earlier conference operational were and of Newswire and Services XXXX made the call Qutoutiao, financial Inc. available company's been results released earnings quarter third

our call section website at and ir.qutoutiao.net. You can press Mr. earnings Eric our the CFO, our release by Mr. on of today's will Zhu. also view visiting include CEO, the IR Xiaolu Participants Tan;

Before please statements Securities continue, the Harbor note we XXXX. will that Private contain made provisions today's forward-looking Litigation U.S. Safe of discussion Reform Act under the of

inherent involve statements Forward-looking and uncertainties. risks

applicable a non-GAAP under unaudited start financial this Qutoutiao's unaudited measures. and earnings the filed with materially of discussions as note law. other the to of reading release financial from may by that the Eric’s Commission. and update measures, includes call press any As such, as expressed contains results company's public the Qutoutiao's as statements, does uncertainties filings as Securities U.S. the obligation the GAAP out different unaudited The business. conference measures. well company's assume measures is press non-GAAP will to on reconciliation included unaudited risks company release prospectus other Please not and except GAAP regarding and in required today. Exchange and be these the views I Further forward-looking information any commentary

Eric Tan

call. And Thank today's for thanks, you. conference everyone, joining

of their our has pressures efficient a business in facing we half us to the structure, our align own. as of the customers more year financial second upgrading for into difficult advertising the of The while many been lines try

is the of dictated going regulatory lack in It decisions. confidence advertising observe effect overall to uncertainty the that advertising the to spending in has or much economic forward continue budgeting Internet of the market sector. actions visibility headwinds the the the and advertisers and due on customer We negative

to expect be momentum. and of pressure been there fourth year as the to continue upward to next our yet early the under year straight of not We quarter some next -- has

our in into believe wider operating previous sustainable Qutoutiao. can't focus stated in arrivals, the on we towards improving we control industry step we efforts a laid term the be we for efficiency. long business, For quarters, putting XXXX foundation as have where growth solid We will

in third XX One of spots the our averaged user second and million Midu from to results brightest content Midu's a period above around the quarter, achieved QX growth up Novels we in year same and the the in in million of increase was DAU the creation. ago. continued expansion XX compared XX% quarter,

innovative proprietary to series. platform and will of operational We also drama even on sure second a invest creation and the most of a the take half a on In notably interaction in users, standalone break content basis into positive Midu continue reach rich mini more disciplined make to can turn cashflow XXXX. approach in and future basis quarters through format building our we the and meantime, offering content

our call Thank of operating to quarters, cost But track over have Midu far turn efficiency term we This so will certain of better have first the not still implementing Xiaolu. for and CFO, in beginning the foundation solid is and much. remarks year. results growth company a and very breakeven Qutoutiao. operating solid is fourth [indiscernible] the concludes now the sustainable I we for are the going measures charges, as you since as Eric's quarter, result long coming more the to and at control XXXX IPO. on to Excluding as impairment The our the of of the we rest year more the hoped,

Xiaolu Zhu

today's joining and Eric, you, for call. you, everyone again, Thank Angela. And thank

to third revenues with average of regulatory of of our of million were and and constrained net RMBX.XX advertisers. due and budgets million for MAU tightening Our RMBXX RMBXXX quarter million quarterly the DAU the ARPU the environment RMBXXX the

expenses be excludes more stock-based content costs referring expenditures a more costs. detail. note, in measures at our increasing of RMBXXX I with which decrease XX% non-GAAP will year-over-year Please to look compensation. were budgeting revenues and efficient due despite of to procurement Let's million, Cost IT

RMBXXX As and year a margin profit remained sequentially. over margin. result, gross year we improved Gross million XX% gross flattish generated and

a million Midu to base from the percentage by the user of Novels. XX for increase percentage of of year-over-year. investment RMBXXX increased XX% ago, base point sales and as it which second quarter Our combination revenue came due and a a represented And increased expenditures in revenue year XX%, marketing totaled to lower growth

provision -- due R&D advertising default quarter, expected which RMBXXX million. was commercial Our expenses bills over year loss the to G&A credit of the by during which XXXX. revenue counted compared revenues. XX% customers increase decrease The due certain million the of a mainly RMBXXX quarter, mainly from of was X% by additional ago. were G&A were expenses decreased from of RMBXXX of million an result to expenses a during was that, was issued the to credit was revenues. XX% X% The mainly total Exclude loss our

XXXX. great mentioned real especially pressures of operating earlier, of sector, facing the customers financial the those of was online some from sectors the are estate Eric some a that. And result in and default As and advertising our

these the credit We last customers Novels, QX the around in will have credit year the the our RMBXXX Midu in year-to-date impairment and to to carry taken million XXXX result of investment for year, to up the of in charges XXXX. full beyond. in breakeven After XXXX ramped loss Midu results rest XXXX. only the losses. has losses our this over an expect and still half of quarter And to excluding We XXXX. of been breakeven and company for third in we made loss don't expect these second approach operating careful our will impact We

restricted investments of term XX, short As of or cash RMBXXX cash September US$XXX and December had million, as million RMBXXX compared XX, to cash, XXXX, the million XXXX. equivalents, company of

revenue of million For the be next between and That quarter, very our to ranging expect you RMBXXX prepared concludes i.e. RMBXXX Thank we much. million. XXXX, today. remarks QX

open We are proceed. questions. Operator, for please now

Angela Wang

Thanks your time. again for

you us. to day. If Have a not any hesitate do further contact good have questions, please

Xiaolu Zhu

Thank you. Have good day. a

Operator

Thank concludes you. This our conference call.

You disconnect may now your you. Thank line.

Qutoutiao (QTTOY) 21 Dec 212021 Q3 Earnings call transcript