JG - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Fourth Quarter and Fiscal Year 2021 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, Rene Vanguestaine. Thank you. Please go ahead, sir.

Rene Vanguestaine

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

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

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

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

Weidong Luo

quarter earnings the Mobile's to good morning, Welcome call. to call. and and year fourth Good full operator. on XXXX evening Thanks, Aurora everyone

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

the may quarter the performance. operation have to marked we in in operating Applications. of challenging deck more conclusion remarkable include environment year refer delighted SAAS of made with results. achievements share into fourth record achieved The business model, today. to business full I have key and XXXX, high proceed financial am successful we the our transition a the our business call Vertical Despite progress very than we as you various You with our which first and Services Developer with the

an comparison, present the legacy Marketing core For entered contribution fourth prior its quarter apples in apples of with year. lot to numbers the a from the Targeted business We momentum.

decision year-over-year million, business CNYXX.X and This business was our record into XX% days, key by we X,XXX strategic XX%, which million credit with million, CNYXX.X QX margin customer not Group Last XX.X%, adjusted QX year customers customers growth the loss end at and up revenue CNYX.XX a of showing compared collected exceptionally business the time, million results, revenue but narrowed representing marked significantly full SAAS the first achieving least, to revenue puts year-over-year. Our us. first by ago. million, XXXX. inception company, the gross business credit each ever pursuing great QX consistent for pure a from significantly of of XX% SAAS great strength increased surpassing profit the year-over-year. milestone was highest more days deferred process XX XXXX, X.Xx was Adjusted are range. number a key million, up highest to XXXX EBITDA EBITDA a XX% in of paying gross which the Gross ago. SAAS transition CNYXX.X disciplined since guidance year-over-year for CNYXXX.X CNYXXX million XX.X% CNYXXX X were where since our year-over-year. million consecutive metrics Revenues further than the to our Net a year [top] the profitable by is revenue fully of indicating quarters, down quarter in XXXX profit was checks of our year from the transition up since year victory. improved payments is above was Total adjusted EBITDA ago, contract CNYXX negative growth granting at growth. from was indicating AR revenue of remained period. for our top CNYXXX.X for around The million, XX% X,XXX for

well of profitability the year. to disciplined operational approach success the into acknowledgment in strong a as top line drive our efficiencies is growing as throughout Turning revenues our

functions efficiencies to to We continue and expect XXXX. going and drive are committed control we to business operating across in further forward, all expenses operating optimize

that we EBITDA you for place, give our adjusted of technology and features. innovations, believe customers. and year product key competitiveness We right those XXXX.Let which evolving with needs our full driving on we iterations we the on to ever long-term to some are meet improved X in product our meaningful UMS, are confident now are on profitability updates all path me these achieve efforts

first information and encrypting new was update information Our into enhancing internal this and at can [budgeted] data risk various centrally data our encourage data be to With and assessed, same of leaks separated are security feature mitigate the information. banks on the ensure compliance sensitive of information and of protection developers. users customers focused and feature, time,

both is of channel, update an UMS channels, the one where with downstream increased and SMS we manage to ability [amplitude] SMS second of upstream the have The the message.

customers to also that functionalities, are user manage which can only send and messages new back the message the sent manage can but Difficulty] from users, they these With message. they end not save end receive, [Technical the

and steadily UMS signed where during want [Baidu to are not include, the Capital HUAWEI but quarter JVerification reception HUAWEI have and version Fund officially to our up International limited our CLOUD customized X. regarding continuing Security].We launched latest development surveys to, CLOUD also you we with other share XXXX, with Corporation, the since China November partnership our China who Merchants for increasing are product. customers We customer Well-known see on

the of XXXX, and mLink complete Cloud product full end CLOUD, HUAWEI the our to list. aim integration our also And of we We have so product. we also launched the on. including JPush UMS, to By VAS, iAPP added lineup Private to

to unlocking CLOUD HUAWEI offering. demonstrates with launch agreement with portfolio technology provide advantage to promote leverage ecosystem, Difficulty] our our partnership operations, QingCloud user our and multi-factor partnership the will developer and QingCloud and the and development to and and product authentication continue QingCloud verification acclaim Earlier provides other cooperation verification to service, marketing competitive hybrid email service for we [Technical pipeline to command have trust we to enterprise with and agreement Similar integrated entered our expand empower comprehensive trading we Huawei, on and into start acquire this Corp. SendCloud and high-quality cooperation that industry-wide offering marketplace, cloud-based other into sustainable quick a conduct will in-depth a services. platform. JVerification Technology a security product effective a a transactional registration to with monetization API on to [lifestyle] entered JVerification, platform majority equity QingCloud user-centric Our interest for the email definitive have apps Securely leading week, into services. China's consumer in SendCloud SendCloud, the and

all, are for strategies in position engagement, more in a the leading of engagement omni-channel need are as intensifies. today sending as on, a has first pioneer Customers services. and email customer the SendCloud more user dependent of field We

notification, engagement With to mini-programs, which offering, able enterprise customer WeChat will provide push omni-channel the quickly we vendors customers omni-channel engagement currently enrich we product the have therefore mobile our for Together, to addition a for communications, platform official mini-programs, simplify WeChat. DingTalk verticals. of SendCloud's advantage to be app accounts, can manage to industry with email each technology include reliable and We provide channel. effective different Alipay industry-leading sending different SMS, will services, customer their without WeChat and having joint

to customer the benefit customer as the to believe more I'm and X SendCloud fourth between XXXX. companies parties base X help paying of greater is combined fuel expected revenue also from truly opportunities achieve than to this X of have synergy growth. customers can through more double during almost two our forward upon completion acquisition this Both together. we base can quarter future Our than plus the X,XXX more paying transaction, the looking and cross-selling

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

Fei Chen

[Chris]. Thanks,

by customer continued mainly fueled was XX% and revenue of acquisition services SAAS growth year-over-year an XXXX, new quarter services within the Subscription of Developer substantial streams businesses. the fourth and XX% primarily growth, the Let services. a private to subscription growth me in different value-added strong deliver in Services solid cloud services. discussion strong million, which the growth on year-over-year the in revenues by XX% start by results driven our In elaborating year-over-year, XX% with CNYXX.X our increase were

been also significant cross-selling subscription this various non-push has Our growth. strategy of contributing to products

cloud, of increased resulting products XX,XXX Non-push notification also contribution products, year As a and SMS to notification a from include subscription which with X% ago. year non-push by CNYXX,XXX, an our result, compared XX% for revenue XX% a achieved RMB private RMB a higher ARPU services ARPU increasing ago. overall of XX,XXX JVerification in to

historical and Airlines deliver Developer in X.Xx services SAAS the revenues China notable services RMB growth within grown on. quarter high New impressive Advertisement customers quarter. to this so contracts from started in the reached of include continued Alliance revenue services in China Tesla, million first million renewed quarter Since by a XX.X a from to our value-added they and XX% and and exponentially XX.X Telecom, achieving results new JG XXXX, Eastern include year-over-year quarter Services, XXXX. Value-added by we RMB fourth fourth which has

pool strategy JG for to apps total we On compared also the a our network quarter-over-quarter. XX% The to grow total increased supply million representing of within apps to quarter. the number traffic channels. of number steadily XXX is it around increase side part the growth of XXXX, during third of quarter, network has vital CNYXXX continued in a the DAU opportunities our for And XXX quarter this Alliance, monetizating the the exceeded within to as

demand the fourth the to XX% continued demand of side, by in developers revenues mini-program XXXX. Alliance and JG over retargeting contributing dominant to quarter our related On

verticals, services. increasingly demand had terms and In we industrial e-commerce an have finance, strong of Internet from

contributed the During but Taobao, Alipay, leaders of came include, rest stream, not They consisted many limited from of industry Alliance across Tencent the to, customers quarter, the market Browser. and while than JG UC XX% Music, more Jingdong, JG revenue of direct-to-customers. Alliance verticals. customers ad Major agencies repeat

macro that solid Financial coming The Financial quarterly intelligence. year-over-year, financial the market with segment, mainly In revenues achievement XX% Applications high environment XX% the many Risk XX% substantially we key highest pandemic Risk on growth segment move been revenue revenues to existing in account cover first the ARPU. in Vertical meaningful let's the of continue risk impact XXXX.During new with behind support Financial the on adverse growth by a customers again. Management that quarter, favorable These is business by to quarter the has anticipate Management and the us. We year-over-year the customers. the and business grow business since most management to continue retain grew XXXX, record Risk the a to steadily from Now contribution showing will increased and Management acquired

Mashang Company renewed China and new WeBank. our and Telecom of customers Some Limited include Consumer BestPay Finance,

product of made Our new line corporate quarter key and by well-known Baidu, Market including customers number has a progress signing Juhu cetera. key XXXX, Intelligence [ph], big et during or Amazon, fourth account

investment of the index Our gained the brand customers. signing has track offline quarter for extensively iBrand by traffic a couple and a investors notable during used quarters new product shops and been ago by retail traction number launched has of to

new We expect product to from growth be our perspective. driver this product the

Shan-Nen. we of product. the the will as grow key now Going well pass a call corporate as by forward, coverage that, having wider continuing iBrand customers business With to I IF cross-selling over are to

Shan-Nen Bong

the go expenses sheet of Thanks, over key and items. Fei. I'll some balance

Let's operating expenses. talk about

organization. our by impairment quarter, XXXX, the we and increased a R&D million, As a year-over-year to level. in compensation. efficiently XX% CNYXX to provision to operating million, to workforce to control in increase G&A in further million CNYXX.X OpEx improve due to particular, the expenses cloud Also a of the decrease due CNYX.X CNYXX.X debt year of commission due support CNYXX.X project costs in in decreased long-lived in decreased marketing proactive bad assets a result our expenses, year-over-year efficiency our our quarter in costs financial businesses. our of by mainly to reduction last CNYXX continuous million. million million, manage overall and growing by and effort CNYXX mainly to million operating our SAAS maintain OpEx expansion strict mainly to million during due same CNYXX for In XX% effort to and of XX% QX increase expansion reduction CNYX.X a to to of measures, staff-related due one-time expenses expenses at the million in to cloud streamlined ensure by sales sales the increased Selling and healthy an

positive includes quarter fourth our SAAS of results, first CNYX.X significantly CNYXX million following quarter we a structure a increased in of have million force long-lived by continue business significant our First, asset, the which sustainably revenue. We OpEx foreign delivered XXXX and in while from in a excellent XXXX, and financial negative million, Adjusted grow long-term of excluding EBITDA significantly XX%. will improved to optimize calculated compensation, our currency reduction set EBITDA, has our as since revenue organizational year-over-year delivered had at which charges, highlights: value of fine-tune of QX CNYXX.X impairment breakthrough contract share-based fair the by XXXX.For and of investment impairment swap level change

improved of by OpEx our Our XXXX margin direct effective contributed gross high a business. to measures. XX.X%, gross margin due result XX% control to XXX% and margin decreased SAAS by from stringent QX cost being XX.X%

As adjusted the profitable EBITDA transition a that structure, around quarter we demonstrates reached into since KPIs I'll monitor. achievable and CNYX.XX when EBITDA and our our continue Onto SAAS move balance scale positive turned we of businesses. with beginning important business the key profitability the start million, KPIs we is the right result, two XXXX This highly -- SAAS sheet. marks that commenced with to cost closely the as which model. first the adjusted

stable AR remained days turnover at the days a to days this year XX compared XX ago. quarter Firstly,

and collection of policy a collecting accounting accounts our disciplined efforts Our cash ensure timely receivable.

very are days the with remain quarter-over-quarter. pleased We turnover AR fairly consistent

represent collected exceeded which Secondly, from the for million quarters. consecutive customer, quarter at balance, advance has total revenue cash X in deferred end CNYXXX

million. were million, a current to operating market compared XX% CNYXXX to sees and company range be year to the XXXX the shares. full The share quarter CNYXXX and and cash and not CNYXXX I growth revenue preliminary QX any XX, up as And in on of of equivalent the million is of available XXXX.Next, the year-over-year ended of above at December million, cash change. CNYXXX CNYXX to results. conditions This CNYXXX lastly, million at XXXX prepayments receivable before XXXX, information, assets fixed XX, was XXXX, XXXX. in million, CNYXXX of As the the of million, CNYXX December guidance million balance and accounts a I'll from liabilities are estimates of total XX, includes plan. of company's assets the include of million, of payable based XX% CNYXXX accounts million, quick revenue on of were representing of on market repurchase outlook did investment give the XX, of current customer long-term as of Total CNYXX current liabilities short-term million which CNYXX This million. repurchase And December loan CNYXXX million, million, In CNYXXX the based reflects to subject current of Business CNYXX update deferred million, the we XXXX. conclude, CNYXXX outlook. demands, accrued at December conditions all

December have we ADS since We're this of of XXX,XXX to prepared concludes management happy the a start total your XXXX, please now. program. As questions Operator, take proceed. our XX, repurchased cumulatively of remarks. And

Operator

And of Instructions] the with line Global. have question Kinstlinger Alliance I'm a [Operator Brian showing we from

Brian Kinstlinger

that verification this will What revenue you this? for with maybe from evaluate? generating us the for services about to we are should generate business help it dynamics revenue announcement Nice Can and some you when can talk begin results. the HUAWEI targets understand CLOUD? And

Fei Chen

to in the it our in the quarter, it's last So, the revenue HUAWEI not actually, is big, that JVerification collaboration to it's now quarter is last this this right? revenue. Developer thousands, product. although -- tens okay, mentioned already And Services of just But have the does with we've actually generate actually, the call, the revenues, -- this not already started in forward, first only So, a contribution going product, actually right? started

We right, our process CLOUD, into it. suite adding like of whole you IF, are product actually HUAWEI portfolio the name the in UMS, of

be upload the offerings. our get year, we think by to goal this our year, all by end certified will And HUAWEI and for product hopefully to this we able of of is So, goal to a in be amount of a revenue. have certain ambitious should to it relationship It going not not started generates have -- the big. an to renminbi. and few million It's be

Brian Kinstlinger

no information then, a they this And challenge? quarter longer spoke a the of protection-wise. Just update, versus Alliance quarter is to you about last starting rate you're about with the you installations personal JG a of seeing but dealing challenge? Is talk how were installations it still ago. kind improve, Can

Fei Chen

regulation hurdle quarter. fourth the the actually behind So, in us largely is

everything right? talk normal also revenue right? also as growth, do reflection this to have the well to see, back XX% revenue prepared trend, things quarter, apps about, the disclosed So, number So, increased in and in we the comes as ad as, factor, pool, call, Alliance a we apps remarks, coming joining app network do to we another So, which had load is mentioned quarter. as can the The normal. come in exhibits more following right, this sequential is And also expect trend we of also growth to actually the the And continue actually of join right? you in in the big our ad we over double-digit totally see of we load. a last JG back

Alliance. growth effects of the revenue So, JG the sequential actually for both contributed to

Brian Kinstlinger

I'm targeted a sure more. like platform, SendCloud And lot marketing but sounds I'm wrong, a but

company, now than fit So, that business it's about the Targeted how different. strategic is your SendCloud exited you your Marketing talk for different and

Weidong Luo

which to SendGrid, which acquired company. SendCloud e-mail a an SendCloud X by years API is are Target similar Twilio ago. platform, is very not Marketing

bank customer are or company mostly even hotel his company a or is like also is like his their customer. mostly [the [DX] -- XB] So,

e-mail use send we API customers. And HK, bank API e-mail to their to like our So, notifications are their credit through their using developers. notifications card send the customers, to

it's company So a not SAAS a marketing actually. target it's company,

Brian Kinstlinger

bit Maybe rate are a what the give What's trailing And profile company? can financial margin you revenue about us growth of the profile? and little XX-month is? the

Weidong Luo

our over very it I XX%. think Margin is was similar profile to margins,

Shan-Nen Bong

And XX%. It's over profitable company. a also, it's

profit. right? CNYXX So for actually, company a generate the is thing, million is revenue that already to CNYXX around They annual which good And million.

close deal to be financials. revenue the the expect in before will of we going to our X/X So, March, so because of add XXXX, we is right, end

So, million CNYXX we from the expect generate acquisition. CNYXX to company after revenue around -- million this

Brian Kinstlinger

And what cash? about it did How you company? the purchase Is it is price, value stock? this

Weidong Luo

at not -- Brian, more. disclose are to this we the have stage, liberty

when done and make signed, press think document on dotted the regard. I and we is release that will so some

Brian Kinstlinger

Couple numbers of at X your guidance, look if a the above of margin, questions. each gross the while it's I bit last it's Yeah, below quarters.

it talk the Is other pricing? XXXX months to about, talk trend factors? the the about compared in last some were it mix? quarter how is what of So, -- fourth a nine Just and first

Shan-Nen Bong

both. I think it's

that the think mix role. a bigger probably I play

know, lower smaller XX%. margin like carries this But it's margin of the over JG is like a developer usually than right? the Alliance, rest subscription As the So developer you gross Alliance actually JG business, around business subscription XX%.

due the over just be. right? I'm I Alliance margin So, to little to business so overall you gross gross what So, total -- JG the the this bigger not want margin contributes as we a is reasons year, should Alliance bit. continue know revenue, the give gross expect But I margin mentioned, total for a JG forward think realistic see should sure you the to target XX% to of line, portion grow when to going

reason -- into we okay? case commence anywhere are because might traffic XX% think another XX% by basis, to we the right? network, So, is developers, the app higher between a when to is so JG margin our are when more And revenue case they some share. deals I for maintain, get trying conducted gross

overall, margin seeing, a again, have this right? compared what I to -- very margin So, we instance, But lower from Alliance it's will that is is a not other dynamic. think, or think, gross for I reasonable in traffic JG gross XX% are static, we number. So, contributor,

Brian Kinstlinger

item. Last housekeeping question, just a

Just what where to items and under understand long-lived your are on assets, the I the of EBITDA, statement find line included? do impairment severance charges interim the those

Fei Chen

G&A. depends severance on be R&D, marketing will operating Brian, and it OpEx, the sales be the whether associated under expenses employee, and or

under And be of the that's So would losses operation. loss after in term it impairment, from severance. other

Operator

question the [Operator comes from next Capital. Navis with Instructions] line Roberts Our Ryan of

Ryan Roberts

Mine is pretty simple.

made it market kind rate the there last QX, I run fantastic. ballpark the and and of it RIF, current at the is. there's because like with the get QX it the want the or want to of ask quarter of cost-cutting in sense of happened of just what But about the ask expected better if part cost-cutting and know other run a quarter. looking early kind in was you been reduction rate of So, the stack the I because I results, what's cost looking here. that's to I current in during part I want kind forward, that that than quarterly kind kind don't some force, has to seems of think kind a like seems some less of of the about

Fei Chen

going right? forward, know what cost look like want structure you the So to

Ryan Roberts

it That's correct. December, different in very looks maybe I Because reckon, than October.

Fei Chen

but and the the meaningful as quarter, can actually we for recall, from from in company conducting optimize areas year have you process we if business the that number identified trying a we So, that also inefficiencies. actually, redundancies our of which perspective, and call, very right, can specifically progress, right? IT to the eliminate last in finished So, mentioned And labor initiatives, the the I coming can perspective, not results okay. was cost-cutting see, you the only we operation the also budgeting made

to so last believe Instead, for assessments, any you okay. growth, OpEx after declines compared for not will all see net-net, we year. XXXX, the So you some should these see

reduction of we currently between So, XX% to XXXX. anywhere OpEx for estimating XX% are

revenue year is, also, XXXX achieve with actually profitable cost cost that able right? to disciplined be will year. full achieve adjusted maintained that we EBITDA confident We goal this structure, you this the the structure, current with know, are approach the for for whole we and guidance, very the So, to

so, -- scenario, that very sensitivity and analysis, to we we've able I worst And done some even that. think a case are considered achieve

Ryan Roberts

-- the just of burn, those given are to can the give that some a of cash behind of your EBITDA like and history again, claim like assumptions? profitability. non-GAAP kind are getting you sense major What us assumptions of some curious I'm of what

Fei Chen

Yes.

So, that are basically, is can parts. to get identified resource, second One to X EBITDA to the spending, positive, So, done the IT element control, right, we basically number areas we've right? labor. cost like And is biggest IT eliminate I cost unnecessary measure, resource, the continue already said, okay. And the actually a several of right. cost control, is IT the cost measure we the on cost analysis

So, work done of IT -- has committed been this okay. has by department, been the head

should we to So, able to year. XX% spending, compared IT for between the the -- anywhere terms And last save labor to the be labor on cost, right. in -- able we be to also, should XX% of

restructuring. quarter fourth -- XX% our employees employees, done have of -- done performance like throughout lower of basically eliminated already reduction. around kind we've So, the year, like we which had made total anywhere the the the number last And organizational

we our the cost fixed And a cost, there's set the we of labor. -- new for terms the cost, this the incentivize. is designing labor bonus the for also, right. our right? Everybody in reduce achieve to want And performance. with a deliver to variable aligned financial the So, we bonus determined But right, cost, base XXX% So like also this target a meet purely so a which the X part. will of basically cannot, to goal then XXX% Right? the we salary, cost part company's example, not XXX%, kind variable can significantly of -- if structure, if set able of decided the financial labor are So, to to basically internally they is are by months at of like financial if structure targets, trying by end. that's as they for achieve of or get, That's targets. year satisfied tiered of variable the

Ryan Roberts

of of kind just of a and -- maybe do, analysis you computation that an overall you low, scenario guess, you what do revenue-wise of expect? that kind expecting like are of I envelope In kind and drilling guys kind of in what bit. of like down terms high

Shan-Nen Bong

revenue? The

Ryan Roberts

Because, it's you've revenue revenue low -- clearly what some to reach do. got about have mean, high, assumptions to positive, EBITDA in I we the

Just curious [indiscernible]

Shan-Nen Bong

So, assuming revenue growth, revenue will than little positive. EBITDA able XX% could of cost be very the to you we less current assume that under adjusted achieve okay, and structure growth

Operator

further [Operator Instructions] And no I'm showing questions.

that, back Rene I'll So with hand call closing the remarks. over to for any

Rene Vanguestaine

Thank you, tonight. call joining Thank our everyone, Andrew. for you,

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

Operator

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

Aurora Mobile Limited (JG) 4 Mar 222021 Q4 Earnings call transcript