JG - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Third Quarter 2021 Earnings Conference Call. At this time, all participants will are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [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, Mr. Vanguestaine. Rene you. Thank sir. ahead, Please go

Rene Vanguestaine

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

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

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

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

Weidong Luo

XXXX. first the been SAAS under quarter call. good on and where we call. of since This pure morning is everyone Good third the Rene. earnings Welcome the model beginning Mobile's to Aurora XXXX to the quarter business have operating Thanks, evening

third in see and our our straight business business metrics share and continue will results SAAS We of business, quarterly key you XXXX. business quarter the growth into progress the I in great and to go with

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

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

review XXXX. our and the operating key of third for begin with of quarter financial Let's highlights our performance

we Targeted is a XXX% Subscription end model, focused of our As include and exited at and Marketing completely XXXX, Vertical the now which reminder, Developer Services business Applications. on

from trend apple-to-apple our contribution upward the in our of steady effort SAAS result in legacy a and the a building dedicated Marketing solid full quarter, For year. the numbers presented we in have business, is comparison, Targeted growing first In them. seen exclude and which

a from six record RMBXX.X with X.Xx is year-over-year XX% results customers SAAS on year RMBXX.X in from for basis. a margin another Here in summary million ago. to time. majority for leverage. was year set profit Vertical up revenue was up to suites Services business XX% paying XX% AR quality X,XXX continued was XX% a granting strength the growth. ago, disciplined adjusted Revenues days, from a were out Applications Total up Revenues Gross substantial of our XX days more of and the quarterly XX% compared strong Group XXXX. growth XX% XX.X%, million of increased customers to million is year-over-year. a RMBXX.X than a was year-over-year, RMBXXX quarters, consecutive X,XXX million, demonstrating solid deferred XX% operating year-over-year. and indicating of number from The improvement gross negative our indicating our credit up in with Development high paying decrease on and ago, which year EBITDA

profit beginning the XX.X%, our been our backbone XX% to and the that and the feedback our growth innovation are strive model strong of successful from needs growth effort iterations. to improved SAAS pure business The revenue transition requirements with our for revenue In recent XX% driven customers' exceed continuous was various innovations lines. result by year quarter, of gross always group continuous of relentless was into provide ago prioritization across mainly services’ team SAAS product of has Our we to of solutions business updates of products. in a We greatly margin year-over-year. growth you XXXX. and develop since has The share which developer this proud our

up feedback and been industries. services vertical, always of from to meet all products industry suitable product market. [indiscernible] user can our each that the we scalable to needs base specialty development based in specific Our move upgrade on and address each target and those and of introduce requirements also for has rightly Then and solutions on offer

whereby how to our and For core go cultures product, participation app, customer but and on their of JPush Many In free Xiaomi, the the phone function fulfill in easily app upgrade of deeper mobile to channels creating brand-new such needs. development including channels example, raise mobile operating the we our have a HUB focused integrate into limited a deeper Oppo, QX, and we Meizu. do can major push featuring to customers' Vivo systems not launched seven manufacturers version recent developers been Huawei, efforts engagement. as

manage on. the channels this each our our had Mobile in mobile function, one there on increase mobile all manufacturer not rate apps major go. apps. HUB are GX they longer of operating overall easily message function, those using significantly on and have platform their HUB no do systems function, app channel integrate prepay can sequentially XX% push notification all to of seven delivery integrate app By and these developers compared by to developers the this we improved of HUB the use who which For notification to able

push China As newly customer that with As results has of and several today, their have our developers as of XX% simple already efficient This interest. very notification a integration the our cements apps. this in milestone of marks push and introduced HUB our products have their over improve product VAAS provider new steps JPush X,XXX of function this generated one already in XXXX, started greatly use using leading integrated Over much apps apps the new position new helping function function. SDK into

the and short few some can of VAAS past With industry, even demands the evolved be become years that video over and notice verticals the we industry more scope growing in the range can dependent product on service.

wider renowned on future. quarter, the most the products of During in intended the our near rollout one VAAS industry started smartphone smartphone in testing manufacturers for their appliance the

screens keeping right integrate users has displayed geared better become tailored, user and different quickly customized and more update way smartphone become the bringing appliance devices, made that integrated and on By a engaged on short experience. of videos these different user and groups, As content the screens more appliances. into out providing displays towards and are --

going product market product requirements and applications continues potential satisfy and stickiness has VAAS believe to increase and our user VAAS time. vast Our user customers' retention that forward. We

and and addition, freedom into video their provides In play including service their service culture the actions, perform our Whilst to opportunity manage developers enjoy [indiscernible] launched can video to we manage review convenience for of create, quickly lines. fundamentally Each integrate recently and they upload, developers the own an with video apps, apps. their videos cloud have new app under apps. a service their service [indiscernible] our who process eliminates provider implemented on-demand on own their those the streamline product videos on the want on-demand developers app to This VAAS have function.

we Within product. release inquiries many QX, seen and this the customer short interest in great period about have already the receive

XX, simply that our development develop for service on customers share officially service partners. robust with has a and CLOUD video cloud to have and By that Currently, can customized so, their is cooperation and observed command long-term demonstrates capabilities to acclaim into CLOUD. doing specialty finally, strategy JVerification and and ties CLOUD we to industry-wide face account. developers app added customers' developers become our purchase with on-demand product based our experience HUAWEI of by satisfy we I and technical you and launched easily We step requirements trust and want exciting HUAWEI value deeper another new to JVerification very logging our closer our trust other Last services. is go with HUAWEI November great can The the needs. part on

monetize more JVerification, potential help their JIGUANG Alliance, monetization gain CLOUD reaching and on access We package also customers CLOUD, service developers with JIGUANG's operate, messaging, the the In results UMS VaaS, grow, instant bring can and can future. HUAWEI addition customized to and in cooperation out this possible traffic us will to that notifications, benefit JIGUANG and developers HUAWEI which that to near include products push fee-paying applications. by believe other

paying customers started. have we alliances fact, signed already In since number of these a

the discuss will Now, turn greater I Fei, in who the detail. to call performance will QX

Fei Chen

[Chris]. Thanks,

a efforts the subscription Services impressive third XX% XX% have our new Let from and Services basis. me in new non-push strong year-over-year, revenue subscription a by product acquisition, increased various products growth XX% streams growth quarter 'XX, different The start of of RMBXX.X year-over-year on In growth revenue a the Subscription result within million, very XX% growth year-on-year services businesses. robust revenues on a discussion was Developer SAAS in in of RMBXX.X the primarily continuous customer JAnalytics via cross-selling customer uptick Subscription services. increase lines. from million, multiple JSMS, as value-added revenues were JVerification, such driven customer an Apart our acquisition. reached

year ago. notification products notification to compared increased contribution ARPU XX% revenue subscription also RMBXX,XXX Non-push higher XX% RMBXX,XXX of and achieved our with result, year products for ARPU a in by a RMBXX,XXX, non-push to As increasing a a services of overall the resulting XX% ago. from

SAAS outstanding from market. quarter proven New McDonald's grew developer in company, introduction has and its from RMBXX.X demand in on. advertisement be China the products services RMBXX.X Southern million to achieved JG continuously million and the quarter strong Alliance so notable by of which revenues News, within Grid services for Value-added includes JG significantly to revenues The the and renewed XXXX. include since NetEase services, contracts results customers Power XX% third to our where Alliance Starbucks, year-on-year

into demand this the trend continue expect strong We future. to

apps our the second the is network side XXX during exceeded network stabilized compared of The RMBXXX for growth total the same million, to within a increase as our continued DAU quarter, On within quarter-over-quarter. opportunities apps to grow as XX% XXX strategy in XXXX, we vital quarter. second quarter the of number channels. part Alliance, of supply pool The to monetization traffic JG at this has representing total it a

in last our discussed developers due became SDK their been integrating has the delay there regulatory quarter. that requirements and the alliance our to during earnings network the some in joining focus As call, top

this lays help the achieve us seeing we a equation a during period solid ramp-up fourth and for growth of However, on in sequential side of strong the foundation the turn, quarters. integration the the supply quarter, can, are which it coming revenue

related retargeting of in pivotal continue app On and contributing our to Alliance to JG play by demand the a the XXXX. mini quarter majority demand side, program developers role revenues third

the Alliance limited quarter, to agencies During market XX% They repeat while direct Taobao, of not customers more include, the Major industry contributed Maotai, Alipay, revenue JG rest and of Vipshop JG customers. and many from but Biadu, Alliance came consisted other JD, TravelGo. customers across than Weibo, verticals. leaders of stream

Now by Management in let's steadily grew with Financial Management, segment, and growth with ARPU. Management by move XX% the Market Financial increased share Risk Intelligence revenues year-over-year lion's on to XX% iZone the the Applications help substantially Risk that the In from cover the the Risk XX% growth coming Financial year-over-year of Vertical of revenues products. business. These

COVID-XX highest with mainly of revenues for quarter, existing paved customers for and The retain first This our products new since acquire quarter in Risk customers the has of Management another had the each Financial us beginning we way the demand to XXXX. quarter quarter. strong remarkable

digit [indiscernible] XXX [Taikang] Financial include New customers and Insurance, tech. renewed [Ducham]

out Our China XXXX Market slight year-over-year investors dip the to recorded investment forward. concerns. Intelligence many ADI product for such going we recover Nevertheless, investment ADI in line the product expect to to as third regulatory quarter due quarter the demand and pulled in China lackluster this current revenue environment line X% a due quarter in

business revenue cetera. And With we customers over X% Himalaya, signed growth Media, XXXX, our Ali Shan-Nen. with contracts delivered iZone Entertainment, year-over-year. have quarter I'll modest to a has pass lastly, third et NetEase large many that, renewed the During call include

Shan-Nen Bong

in to invest and traffic due bad balance by compensation improve due stock increase by year-over-year RMBXXX.X increased mainly to and expenses. financial XX% of Thanks, of in the businesses. increase RMBXX.X to in our foreign RMBXX.X EBITDA And excluding strict let's expenses as to G&A bandwidth million, as such measures. Selling in stock due by EBITDA QX expenses million, calculated and impairment and talk expenses reduction compensation currency increased the value contracts about and to In RMBXX.X of increased in higher Adjusted total items. operating I'll proactive some decreased to key our of expenses million. due cloud continue And to particular, IT the share-based to to fair by Fei. department, negative improved go debt year-over-year expenses. mainly through investment expenses to R&D RMBX.X support provision in XXXX. X% XX% the the marketing we infrastructure, by million mainly R&D expenses X% XX% of million SAAS The million, operating expansion year-over-year and negative million control RMBXX.X long-term as RMBXX compensation, change from to sheet swap

XXXX, of we another third financial set delivered the For of solid results. quarter

XX%. of SAAS gross quarter XX.X%, contributed being direct a include: this X%. by by For businesses gross improved to margin comparison, Operating QX XX% expenses businesses. margin however, from year-over-year XXXX XXX% significantly for key result increased Group high-margin SAAS only the revenue by increased highlights our of

we our delivered QX, result, results we have business new and achieved. in continues this quarter the of believe model. a bring EBITDA And of we coming this pleased where QX with SAAS third have is the will the growth improved As for scalability are results that by to business demonstrate We adjusted strong our more the the and results, XX%, to year very quarters. continue which QX momentum

that very to we start balance on important I'll the with Next monitor. closely sheet. KPIs two

collection. to have SAAS QX days on businesses XX decreased policy to was XXXX both days to we last this similar AR focus the from XX Marketing to in legacy the and days in from business trend This disciplined AR turnover the quarter, focus and quarter. our away seen the shift due improving the credit on Firstly, Targeted granting

represents customers. collected Secondly, the in total which from deferred balance cash banks revenue the

million sixth exceeded consecutive has end. quarter For a quarter RMBXXX at

of in million, from up RMBXXX XX, As was million September at XXXX, year. the this RMBXXX.X balance QX

of RMBXXX assets total and of loan assets XX Total of September current September million long-term prepayments cash fixed RMBXX.X million. RMBXX.X liabilities liabilities short-term million XX, This RMBXX million were RMBXX.X were includes of Accounts investment of payable of as million, of RMBXXX.X million, at receivable million. deferred RMBXXX million. Next, of RMBXXX.X XXXX. revenue equivalent of million, at XXXX. accrued as RMBXXX This million, in RMBXX of of RMBXXX.X accounts includes cash million,

growth operating and based available of to and percentage which conditions Next are RMBXXX the that year subject from XX%. prior conditions gross information, our The calculate in year revenue and all business market year-over-year outlook. used revenue million, Please million Company's remain Marketing guidance reflects for the to Targeted changes. the XXXX demand, margin to compared sees market XX% Based exclude purposes, preliminary the for numbers to the growth Company year full outlook the revenue business. growth full our current is comparison on on estimate XX% be with representing and to guidance the to and the above of meaningful the current current on of year to range customer RMBXXX note last

conclude, I quick I'll the before plan. give share on Lastly, quarter repurchase the September any not XX, a repurchase XXXX, shares. update we ended did In

concludes your this As We're XXX,XXX back program. September you. total questions the of to of we repurchased since happy start XX, the And our repurchase have Rene, remarks. of prepared ADS XXXX, to cumulatively, a take management's now.

Rene Vanguestaine

start the please Q&A. Operator,

Operator

Our is line go Partners. from Kinstlinger Alliance Brian you. Please first Thank [Operator Instructions] the of Global question ahead.

Brian Kinstlinger

be Has gradual regulations? discussions to there still of the more pace to have new of picked the to to before and Or pace? go bit on pace the pace Alliance a is a comment you pace pickup the you going rapid integrations? same the JG can to prior up that First, returns

Fei Chen

is Fei. this Brian,

before quarter, join with of in many So in third fourth So, to actually the the Alliance, the delayed process terms process, were apps they the renewed right? from pipeline started has end starting apps, us. see quarter, of we JG do beginning the the engaging the of

pipeline, are but So medium-sized are pipeline. some decent only us. a large seeing discussion apps very with who in a It actually will be strong the large, not we currently some very also apps pretty

to we number in or current going of So DAUs a joining do decent be network expect quarter. there's our joined

this why to of we able the because the be will We've outlook give we narrow this right? this situation, have guidance So, that that's upper for range you as end. to confidence our revenue, seen, narrowed

the and So have. shows we visibility the that confidence currently

Brian Kinstlinger

pace go the follow-up apps recovered own improve a their for just Is recovered to their you or more that. is on those apps? have and regulatory it still as Maybe fully situation partially

Fei Chen

it has I XX%, will XX%. that it of Yes, -- say think be I would most recovered.

Brian Kinstlinger

Okay. about Alliance. as how in kind sales going the mix and these And And drivers? Talk versus forward growth terms then of publishers? CDs rank direct JG of of you

Fei Chen

growth the there our previous always product that's for has the supply driver Actually, always the a is the actually commentary you -- in -- previously that because demand think I calls. -- this shared I not on demand is with bottleneck side. as bottleneck actually and been always the

as right? joining long again. more to more customers on are impression, demand that's more our as to the the offer joining So apps to the be network, DAUs we more want emphasize there I situation able So side, will exposure

Brian Kinstlinger

launch? will revenues over about trends lastly, maybe then term? terms And early maybe long to before product cycle, and go long this how can with JG respective purchasing? product do the sales near this And you And in the you talk through the that, expect since Okay. adoption test of customers how Video-as-a-Service impact

Weidong Luo

Yes.

verticals, video demand and market, as So the So verticals, in many this local educate with -- recently from in as very contract app. This for read diversified industry and XXX,XXX, are a the go big the customers smart the actually, favorite you we transportation, is that the have a So products, appear right? refrigerator and services will product million on is on we JG user's is coming up industry actually, you launch, we contract, user the wake this to the leading in when terms those the entertainment, China. videos. IoT showing we to such have close since okay, about strong houses, mobile your about big the financial the on right, then institutions, the screen ARPU interest which right? initially, for a release, And RMBX you verticals VAAS versus this successfully signed expressed actually traditionally, press manufacturing app appear the morning, cooking right, breakfast, in will kitchen very the developers start are of devices. discovered when explore continuing preparing IoT you Think case the security your to up short start content, your

going powered going is to this more All isn't possible JG to make is is VAAS. by because So be cooking your it this fun?

So is the think we what's think we that future, going it's happen in really and this to exciting.

but across is I going industries trend, the not see think the the adoption demand do to we there. overnight, multiple actually, are happen

Brian Kinstlinger

So small very a a contributor that we to soon? as to look Or of it the become XXXX, be growth? catalyst But revenue. too in second term, does the even revenue there'll short is half maybe to

Weidong Luo

revenue year, is have to right? related In to. the the still the SDK to are aiming But of to relatively for are this Yes, aim we -- traditional to tools, our push and strongly sell actually, and we the products, to drive what correct. promote base product. sales force other our large next That's -- the services contribution term, small, given short you the have

is as VAAS product our for be will focus this for year as there next new key certainly, So well products. two UMS the product

Operator

Navis the ahead. our line go have We from question Ryan of Please Roberts of Capital. next

is open. line Your

Ryan Roberts

financial of So the, the is more performance. my on really I question kind guess,

kind question bit I little little on softened quarter. SAAS, moves quarter-to-quarter. of margin from this of first it's kind know for in from looks So it like gross a around It a

question on can us might a have about that that? curious of kind why was kind some color give you outlook been? I've I so And after the And of got if

Weidong Luo

guess we on expected, some Yes. some as we move a get J more there's much did that have I functionality for Yes, what in this we of the guess drop apps a bit, managed more of of revenue. to the as the but margins alliance share than brought I not we the

them margin. gross So of case, are benefits some in giving that our the of we

continuous So to trend. not we do expect that a be

the So be nevertheless. above we margin XX% expect to

margin as dip. don't we meaningful So as as see the far concerned, that a is

Fei Chen

Yes.

So to our we XX% least that's our at aim keep near-term above margin gross target.

Ryan Roberts

Got you. Got you.

like, of kind base sounds I that then case. And a guess, Okay.

I quarters, past think above several in that. It's certainly been well the

back pace, how update you normalized shaping you go ad or the with thinking asked at can there here, here to sign-ups I next into, kind on maybe as are So now year? kind to do Alliance But And like sit pool, also kind those which we -- are end have want that's, it about on really, how a of I'm back overall really the of developers Because mentioned of and the not. vagaries on year that ECPM. in year And December kind that. almost into of looking metrics guess, JG I guess, of how are actually, what ahead? November, How Alliance, we're are about we as sounds I previous you're you into in coming about load you up? thinking in JG the the realized devices the there analyst looking we us

Weidong Luo

Yes.

we So still they Ryan field, next the cetera. have et up in So are we the macro see here level look at goal top people teams, So achieve demand actually people they -- top right? okay? in and -- year, so we for to need what how budget, units bottom used terms undertaking next management of two sitting different usually process finalize business want the a right? currently But confidence also, year's approach their our the look at the environment, to the have down, and the the management and to

entire units, for set the the right? consideration come So in still up So different take business then we to need up for this. company, and we then the process are doing and guidance come go of into currently, we a everything

what earnings this of robust a actually than the progress migration Currently, ad is only we of the be and next will load because we force not a for is into talked little is , So helped continued basically XXXX are factors. is little times, for right? XX% number need load lower SSP iteration. less yes, the to called One then the give I to terms be the in So of the ad bit. actually talk together We first of to needs And delayed number number improve transition operating concrete And used as each The expect this and apps -- models the able call, magnitude by sales should third but load, product the than that exposure. determined expected, also quarter, it improvement product we of product the our actually existing traffic a to to by identify in a not we ad of is which think the next product multiple overall. achieve. actually you to app going about we confidently actually -- working the allows a the third right? So X.X the bit quarter, quarter section. SSP scenario its suitable X.X, about enables full usage enough the is in app which made team some progress a be we

And watch have determine then why when is enters should message, it conduct information and is For add appropriate and think another the analyzed, we it in-app the this need action this one to them to takes a So what page user right? we actually time. we example, conversation after need been how such send has with by they developers to functionality. about this one tell all to

the we such improvements load is than So by perspective can quarter. more improve ad as other improvement, we which third XX% exposure our as other there which the the close to ad the X.X, can this to this Actually, well, by to SSP are technical are will overall goal chances to of from improve making ways give improve load. end display. And and us add have

work, impression are storing happen For identifying And the certain show to example, due unnecessary backup a improvement. in And can displaying and and first will eliminating some improve a opportunities if setting. ad certainly technical which load. we also, the doesn't doesn't the as loss then we this ad rule up, some the help backup is are

are So undertaking multiple try to the we things currently there are improve load. to ad

think of I things one do if So well. these we two or

the trend. to think I continue ad see load upward will

So the question That's you question in the terms -- of third a what's asked?

Ryan Roberts

on The ECPM. was question other

Weidong Luo

And how we quarter the not our focus the that's much third we currently this actually certainly, but on and actually in was CTR of are CDC whole a actually, during ECPM we have spend remained stable in the a And quarter. plan actually the the algorithm. fine-tune ECPM actually lot by and efforts other that by quarter. is other the things pretty determined and improvement on the determined ECPM, well

Ryan Roberts

several China you. bit months demand I of us sense the kind seeing that's you Got could could a touch in a if know give demand, bit last coming be where vertical-wise, of has right because in you're of share would of I what That maybe you in [indiscernible]. on them? you where Can what's some and go, education kind you helpful. outlook the And then are of kind share kind of now? And little of meaningful maybe if and advertising terms the been industry guess, a from from

Weidong Luo

Yes.

of platforms, a Internet recently, earnings. right, reported actually, they So number

were the the in seen and industry client their the side impacted churn, right, by have such which As we they all industry. on industries, reduced education customer which know, directly budgets advertisers gaming the the is environment, macro what expected regulation, key supervision as of or we had

JG those coverage much have two for we Alliance, However, industries. don't in

field app advertisers finance program of the and e-commerce. in mini Our and main advertisers' customers retargeting are advertisers

So customer are areas budgets stable. relatively in those

so any seeing demand actually, demand the And we are not terms the side. of weakening in from

do Alliance impact an forward. going see So the growth demand will really have JG not we

Ryan Roberts

you. Got

Okay.

low. pretty sounds And guess, like sounds so churn it then, I

mentioned your of last you churn agents you mix can sales. I analyst of color between the think and Any asked guess I direct kind share? kind about

Weidong Luo

You versus mean the agents advertising agents, direct?

Ryan Roberts

So that. yes, you went into

any question of I terms know last kind terms of on in of ultimately, mentioned sorry, any in of composition kind any the [indiscernible] kind think the earlier, you ads. in buying platform. advertisers, but who's I many churn you to the of a mean you advertising programs -- changes in Do see overall I question who's of guess, like advertisers.

Weidong Luo

Yes.

customers, -- mini basically the are actually, Taobao, advertisers web such as top and the remain And core, companies quarter. targeting similar the acquired and So customers right, Alipay, program are agencies. the are as that, we stable. for the who are that also, still actually And the the and such top ad the such the guys, purposes who than our okay? as operators very continuing players to in industry, these players industries, they we car other -- penetrate and continue Maotai actually, So we new leverage to our very, some and into same are right, customers

thing. revenue actually in other which pickup add these to the are customers the right, around revenues, it of fresh and XX-XX. right? the good if mix new actually, this a look other So actually, and sales, ad they direct But the agency customers to was seeing revenue XX% platform, the the quarter, of about -- in the bring JG between contributed brand is terms it's Alliance So our you actually, by at mix you agencies agency other last agencies, quarter,

are overall, customers. not any the are customers I So meaningful and seeing any churn think by we large stable

Operator

Please Kinstlinger is next ahead. the Partners. of Brian Our question line Global from go of Alliance

Brian Kinstlinger

higher low to gross a Or First the last few be? as quarters get from pressure that just Will again, where there. previous -- you XX%, that you the of you is margin next the is see -- pace as quite been much long XX%? as just for of the that of base three sort over bit term you'll quarters on have all, of gentleman the

Weidong Luo

the the have to No, in with been XX%, Yes, of I we think QX. expect do we XX%. not business operating margin margin dip

Brian Kinstlinger

Okay. And then...

Fei Chen

our the Certainly, such But between is by but supplier, keep we X%, quarter we -- above JG cook margin So quarter normal, is gross that deal XX% XX%. XX%. actually, the that's Brian, aim said segments decided with as XX%, probably margin gross base and Brian, margin will to case, the USD business Alliance, constantly actually, some developer the the the traffic and actually and app fluctuation the above how keep right? above let So supplier, that the between me clarify right? we right? the we our actually Because sometimes certainly, and

our So goal. that's

Brian Kinstlinger

Yes.

much how talk Okay. head Chinese impact Year we each on And of your next and seasonality as the businesses? then of New an into has the year, about

Weidong Luo

Yes.

look you not Year weakest New at if us, because past first for basically, the seasonality, our the least right? companies So for most only Chinese quarter So us, first for that's two the is well as nobody weeks, quarter the spending and quarter several money. -- Chinese actually is of at is New basically, working, nobody the Chinese Year the years, certainly, other

the impact will certainly that demand for business. JG So Alliance

business by a see certain whole, magnitude it's other because sequential the a visible. revenue the So said, subscription-based, first right? seasonality little quarter. decline as highly you Company quarter, highly, will a the in the in should of that But for overall, highly first be stable, there bit it's i.e., For

Brian Kinstlinger

both bit you're more saying vertical be what and the flat? is But the a SDKs applications, will little

Weidong Luo

will Financial vertical customer called consumer-related that's Risk product Management, okay there demand and end Financial be one application actually, is our demand. Risk Management, but SDK

there less, because a consumer model. it's decrease during their will any volume-based usage borrow because well decreases, to if So pricing demand will our actually, money so time, service use people that as

be than that, industry stable. well, insights, should those other business business the our So -- subscription-based but and as be our that impacted will

Operator

is Ryan Capital. There ahead. Navis of the Roberts you. go follow-question from a line of Please Thank

Ryan Roberts

I question on knocking and had a here and like on are we realize actually so you're thinking Again, I forth. here, about finding but process, so December the planning door. ourselves in again,

maybe this guess, I What that weighing spend, compared next the been as been you're to next year terms at some are about? are of the move which Looking but And I the thinking end? looking year, and that most things key allocations? you tightly headcount. kind into of have concerns last kind you controlled, thinking has about expense know headcount the, in of of R&D of of kind what year, for of year kind what are year, you chunky into

Weidong Luo

Yes.

right, clear. of also actually, in terms is OpEx spending, R&D, and the year, next thing for one So particularly the

okay? can We to happen, think R&D we okay, the resource about increase currently efficiency, the we the a this needs So from perspective resource are expense, also are count, to head next to of -- increase the doing from much human not and lot going improve to right? there's see okay? to only by perspective, the room we not try but where to improve year. IT efficiency, improvement And analysis the are the basically going okay, not we much about And R&D the

So that increase see are we not the you -- in expense will much will basically R&D. not

Ryan Roberts

Understood.

if maybe earlier to could mentioned And I call. the you Okay. something turn back in

Sorry, maybe we own.

of maybe on kind cloud landscape market I guess, the opens kind some could of bit around for for call, some and a actually kind with that And you investors transformationally company? to? deal? Can of mean about the in of think you exposure what Who talk maybe the you that on gives I us Huawei not your impact maybe the in the or super news of to of What of of, what means providers stuff? mentioned of it. Huawei familiar SDKs maybe kind software guess, are you I kind you're China give you? of that the, overall thinking Who the up and what terms opens of insights maybe that kind share perspective? kind could the I your a that the

Weidong Luo

Yes.

launch on So officially and customized will recently, HUAWEI our CLOUD. verification other service

come call industry clinical the acute robust what for been cooperation we So basically, our trust, service. with we out wide demonstrated capability and

So purchase looking account HUAWEI and CLOUD basically, in phase on by developers they can their our HUAWEI -- JVerification [indiscernible]. CLOUD can experience

a we months. couple So the allowance have of

the this see already alliance. from we few So contracts

plans package us, to service primarily solution with host one to CLOUD platform. platform build integration an one-stop on asset cloud its HUAWEI next, and So into our developer product service

will top give these of So wide experience. ease purchase the developers

So closely with a our to same better systematic of them and will opportunities. regarding provide get more CLOUD training HUAWEI operating channel, we sales at work generate teams the to understanding time, sales this for

marketing targeting also will we them the apply -- events addition, on activities such In financial collaborate with as industry. office, to

course, CLOUD base a we own commercial will that developer group for Of HUAWEI huge itself. also provide great value a

actively to -- the that's our future we far. base so but and various commercial embed We see promote are can in we our what also service into into solutions our cloud them cloud new discussing how one

Okay.

Unidentified Analyst

Language] [Foreign

Weidong Luo

really, I Huawei guess that's their about is their growing about from know right? not manufacturer CLOUD back I the CLOUD customers. actually customer, really faster. mobile busiest HUAWEI HUAWEI

like similar [indiscernible]. a it's So

Ryan Roberts

this CLOUD Right, right. the understand I Huawei infrastructure again, provider brand. like was the HUAWEI wanted get relationship of kind to smartphone that, any is opposed as kind with the difference just to to and of

So about it's smartphone potential -- guess, and HUAWEI I CLOUD some there's versus misunderstanding Huawei maybe blah, blah. for

Weidong Luo

right. That's

are collaborating now We Huawei smartphone. with

are business. with the collaborating we only right? XB have So, business, the We Basically, the CLOUD have HUAWEI they XB business.

So that's customer a synergy.

Ryan Roberts

you a give I'll number... basically, So

Weidong Luo

mean, sales all in has of I the around -- China. We X,XXX only... HUAWEI CLOUD the

Ryan Roberts

number cloud? in in like two right, they're think I of terms China,

Weidong Luo

CLOUD. it's three, HUAWEI number or I'd Currently, or two Cloud say, number Tencent

HUAWEI number think number that's CLOUD, yes, or yes, three. two yes, I

Operator

closing the ahead. [Operator Please like Rene remarks. conference for to Instructions] now I'd back go Vanguesaine Mr. to hand

Rene Vanguestaine

Thank you, [Andy]. for Thank call our tonight. joining you, everyone,

This call. all. Have any night. hesitate a you questions good out please If reach to comments, the to have the further you don't and concludes IR team. Thank

Operator

the today, thank Thank conference ladies you, you gentlemen, and and for for participating. that concludes

now You all disconnect.

Aurora Mobile Limited (JG) 23 Nov 212021 Q3 Earnings call transcript