- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be 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, Rene Vanguestaine. you. Thank ahead. go Please

Rene Vanguestaine

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

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

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

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

Weidong Luo

quarter earnings to Welcome evening, third morning, call. XXXX Good Rene. Thanks, good Mobile's everyone. and Aurora

with remind available refer I the IR results, site, on everyone proceed deck that the is may earnings Before I quarterly call today. comment on QX the we you would Web as our deck to like our to

and for our While we solid was business lines. through in performance to macro-economic navigate of QX measurements financial quarter uncertainties, a continued most

opportunities for and future footprint details our later remarks. expand into overseas more the growth. actively also in are will into my We I prioritizing markets expanding of section

the pleased control and cost progress. our very quarter third initiatives are continued our We in with

year-over-year. a quarters Here want that RMBXX down some of XX you. to for past since since the key results is of narrowed great at Lowest down XX% QX at snapshot is XX% million, RMBXX.X improved operating at share the million, XXXX, we XXXX, of expenses by Lowest Adjusted loss revenue with of the XX% negative Deferred net QX EBITDA year-over-year. million, significantly by business year-over-year. to significantly highest the XX RMBX.X XX in despite in the QX environment. I'm recently. at about announced social RMBXXX.X year-over-year the the improved one Total media of AR largest call turnover the XX% X tech massive million. of days days And by company the sure number world's everyone history XXXX layoff -- large tough [indiscernible] X,XXX. Company, from days to up by customer balance in days

stronger. these past am the help efficient. financial proud company more much has will very of decision Looking such have become executed we a worse and few and the Back highlights times in and stayed our difficult key cost financial to brilliantly of wiser. start slow that on been together cutting a back this our [Indiscernible] quarters. been on I restructuring will be could these not and second to in make that now, to we've out come we XXXX leaner decision team situation. I'm confident half in a and

million, year-over-year. RMBXX record quarter down historically expenses This with of operating quarter, level XX% we another low

since also Our net loss the is year-over-year. of at by RMBXX.X XXXX QX million, down XX% lowest narrowed

where to revenue is faster to expenses. and organically QX we ensure main our efficiently operate than of financial our One into we XXXX continue goals grow going year

business our saw sign sequential revenue most the lines this Another from we as perspective, growth is quarter. encouraging of revenue in

While growth, anticipating more in a we this to definite trend. still are earlier too it’s call recovery

lines sequential the us. sign positive major growth for business is a in our However,

economies the possible health back revenue our comfortable As change. indicative we are are for currently the through as the domestic that more in of countries, and look growth to and we of want global see before going more [indiscernible] business normal. that sequential transitions trends are the some will to several With at saying said, sequential we major business continue quarters

several X% offset Now, the to weakness X% Subscription quarter-over-quarter X% value-added Services. was the the due and increase streams Subscription our within in Services million, in business Subscription Developer in quarter-over-quarter which improve RMBXX.X increased decreased in enterprises to to revenues year-over-year revenues the different Services, XX% were let base, JPUSH, just few. operational up revenue are up through up by revenues, mainly including including to year-over-year. to Year-over-year Services go due we and others, grow and me by help well-known UMS the growth million. and line, core by their Group. XX% services The Services RMBXX our and that Subscription Services. Developer by a services, revenue growth APP mainly million, and by Analytics, to products signing increase in and contributed [indiscernible] X% RMBXX.X Services customers name quarter-over-quarter managed customer developers ARPU decreased to the efficiency. to Value-added sizable

the Tencent, reputed customer while of reported customers stream, and quite of advertisers customers third-party Baidu, Alliance leaders to of from and saw budgets, industry trend this JG continuing came revenue XX% advertisement across AHS. consisting visible rest key and Major more market larger many to verticals, customer contributed Alibaba Alliance [indiscernible]. is JG market include, demand pressured we than pipelines. As by those similar further cutback Direct

and drive are to bounce back, continue temporary, expected projects are that actions taking we that and Although advertising to we these our on the the market factors resources growth. believe prioritizing most is will

in X driver platform during QX. of become development our we Mediation traffic joined AD Services XX are and DAUs our an enabling mobile to platform for DAUs ADs important of With our ecosystem. in -- Platform the have the over the over more have internet APPs monetization launch QX, million join and anticipating advertise

striving such -- improve [indiscernible], we major as efficiency. have are spread mobile the monetization the and market, in As to Mediation also to grow AD developers overseas, have rapidly platform established establishing

demand overseas companies we EngageLab, emphasis coping and our After and for team’s provides messaging invite our While uncertainties, is expanding out API at user at market allowing and refined markets. are based growth going carry of tools companies present, consistently with on www.Engagelab.com I best strategy including: This into engagement platform users see the we We focused very in delivery channels believe help set major growth we going both companies. Based to the we companies yourselves. inquiry in accurate this our global in from both and developers believe rates. a business milestone high to strategy and pleased our mid-October we and and WhatsApp now EngageLab have Service, of of Chinese of overseas to reach At in we [indiscernible] site the on market with we based position on the a Web since Business the the -- exploring possible cost going AppPush, forward. a overseas of is with our put and long-term and substantial effort, for launched near-term progress. can companies, and stay from Chinese services becoming our some several messaging segment Chinese are months that major reach that WebPush, effectively. Email service five low since is for the us, rates and overseas to our additional visit you nature to SMS message we efficiently overseas services overseas Service, conversion overseas current meet tap

Applications the are now future in pass to material. With our on performance. this share We other and of more aspects call Shan-Nen, when information regular who will the numbers will that, quarters provide our updates about will over business the I Vertical

Shan-Nen Bong

and Vertical And Vertical some which Management intelligence. Chris. increased by me colors increase Vertical million to revenue, management the decreased risk year we market XX% sequential revenues now and growth Thanks, quarter, quarter-over-quarter of good this encouraging. Vertical due the Financial in growth Risk mainly Management business. segment, on very Application X% Application is financial the applications let increased consists seen In -- mainly XX% has such quarter-over-quarter Applications In have by as numbers over decreased The was quarters. in Financial RMBXX.X customer to the Risk year-over-year. quarter-over-quarter growth revenue by X% shown and revenues year-over-year. by provide demand

to limited key discovered up our ongoing clients Management has deeper with Risk with also renew more client many additions our has continuously but mix including Also, first and our have new Financial existing helped customers, connection our product customer, While the our to improvement it to pushed and not base. establish signing more team opportunities [indiscernible].

year-over-year Services Intelligence growth, strong up up to revenue million. quarter-over-quarter Market and Our RMBX.X XX% delivered XX%

quarter, operating overseas markets, we strategy signed balance to but our further and and key to cemented items. and retain [indiscernible]. have limited including, through PRC key I expenses. expenses University well-known Morningstar, we our will not up customers from numerous Tsinghua go now some this of During both customers sheet Onto

marketing RMBXX.X costs control XX% to year-over-year compensation in the decrease optimization result particular, expense category Adjusted to by at to have doing solid million, few so, R&D and reduction marketing decrease decreased EBITDA quarters. quarter the associated platform. Selling and and is by mentioned achieved share-based we XX% and headcount a down X% a in and negative RMBXX of XX, to our million, Chris costs, XX% operating As a expenses over of we respectively in to have salary very to million, accordingly due cloud and RMBX.X due times. year-over-year. which salary expenses another by three RMBXX.X And reduced million, decrease to And has earlier, had XX% headcount, mainly as to due year-over-year, lower G&A salary XX% expenses quarter-over-quarter, RMBXX.X tide in tightening the operating the low by mainly costs tough our through results All by been expenses improved these components result decreased expenses recorded for us million. expense record within mainly improvement theme have past the decreased headcount. by reductions, by of and this quarter. cloud costs

operating In the year-over-year. and and had of the for this million, the have recap. of off QX expenses effort loss quarters continued good the to us. I narrowed QX net million, lowest RMBXX.X negative down and has since company-wide XX% to quarter, since want expenses XXXX had year-over-year. pay at headcount operating yielded we are XXXX lowest optimize Our decreased to And RMBXX for below highlights past XX results We XX% by

XX% by negative which component represent we of XX% And since expenses, closely to lowest operating by sheet. at As will that EBITDA RMBXX.X million share million, monitor. RMBX.X year-over-year. improved decreased QX two I the mentioned, again adjusted at OpEx KPIs adjusted very year-over-year. the had cash We of on balance the XXXX key

quarter. from turnover XXXX XX QX Firstly, days the this AR XX to in decreased in days days

key advance collected Our in RMBXXX.X during total and doubtful times. receivables. financial for policy of particularly KPIs of tracking of and performance, million. companies collection which important contract for deferred SaaS at collecting ensure disciplined And that And to history to cash recorded company accounting exposure balance mitigate in future bad performance secondly, from the the revenue, the a accounts highest efforts the very customer we the this the represent is our cash one of timely challenging debts these

accounts the includes at the million September of RMBXX.X deferred RMBXX liabilities XXXX. on on current of conclude, financial remarks. RMBXXX of total of were intangible million and revenue Accounts repurchased liabilities of accrued RMBXX.X this of In We're quarter the payable program. And next, I at the RMBXX.X give And shall ADS ended goodwill of million. Another our XX, XXXX. equivalent September demonstrates million, million. RMBXXX concludes KPI assets consecutive the exceeded may XX, business. matter, quarter. total repurchase million conditions of were under update million million, as XXth the we from assets continually prepayments balance current XXXX, take of And million, And of before RMBXXX revenue of as cumulatively health million And I million long-term of RMBXX growing the resulted for prepared fixed we September proceed. of RMBXXX.X and and this ADS our lastly, XX,XXX start XXX,XXX and in deferred this the of RMBXX.X angle And since -- quarter plan. share and a this RMBXXX.X of includes This a Operator, XX, RMBXXX.X RMBXX.X have now. SaaS repurchase with to SendCloud during acquisition investment you question receivable other cash XXXX. cash March assets end has million; our repurchased quick assets excellent happy total and million; management

Operator

Kinstlinger [Operator Instructions] Please is line Global. from the question proceed. from First of Brian Alliance

Unidentified Analyst

is now fourth that taking quarter, Hi, from similar or my you compared quarter? Brian. any so I expecting allude that we're it with to Thanks are This questions. third results, start on Should through just seeing there. could [indiscernible] is the how for want be the you looking to new trends we halfway to? far

Shan-Nen Bong

Hi. again is we should sequential a QX this based achieve have Yes, date, question. to the Thanks that Shan-Nen. to This will for the seen be growth -- quarter. trajectory on in able

of our up and do see start recovery most, sign all if for of we things not businesses. So pick are to

Unidentified Analyst

you. Thank

question, mentioned revenue. the Another guys deferred in abundance you

see unusual Do and you And think do that is this any? think you strength do if in why any, any growth way? unusual you if segments, weakness, do which affecting your is? see which you So

Weidong Luo

A layers to Application, they few advertising those the added unlikely deferred base, because are the are [indiscernible] of prepay. of value makeup terms the of coming in so are and Business mainly Vertical the revenue, Subscription services customers from mainly

the the of revenues main focus component deferred Subs Application. Vertical from coming are or So and

on no -- don't been in do [indiscernible] I concern, coming this guess it's from. any I not terms So and the where growing, we based see see do have But we has on quarter-over-quarter. that balances weakness we of

Unidentified Analyst

all I you Thank so Great. much. That’s had.

Operator

the from Kevin of [ph] proceed. Wong line the questions. for [indiscernible] from -- question Capital. you Instructions] Please have the line We the Thank [Operator

Unidentified Analyst

I Hi, management. question. may. my I to Many for questions, if thanks like have would taking three

have insights The for platform the for we question, Euro. That's launch the in more you first noticed for have one of overseas you the BYD is with related first EngageLab to cooperating question. EngageLab us? that on provide customers. the second Could started expenses And

love more details to that. hear the we'd So about on

with financial So finally noticed the a question second that is in BYD. a the And your done have related managing you We cooperation question. more job to good OpEx. related

with you we this turn are when with if expecting could when quarters. if the also, share -- few OpEx next you also appreciate us to the adjusted you positive trending share can So how us in is EBITDA? And Thanks. could company

Weidong Luo

Sure, Kevin.

recap your me question. Let

For the about you're right? EngageLab our the first for one asking overseas customer,

Unidentified Analyst

Yes.

Weidong Luo

Okay.

Chinese efficiency our And of user short part our low facilitate launched actually, ensure plan and all this the the overseas. have refined accurate that companies with companies to we can So going out to this in is just offer. can this Chinese high we our and rate carry EngageLab that reach overseas cost

well. exploring mentioned at If our present moment we at And solution major omni-channel Service, at you look we global the the to have services, AppPush, additional we SMS our including committed market and Services, messaging to channels Email developers. provides offering are overseas EngageLab, in in release, EngageLab as and as enterprise WhatsApp, WebPush, five press and actually, messaging are

can venturing to overseas, suited colors their companies in developers And up give more are. I based up until believe efficient wish effective who than niche sign to overseas based recently XX in where also have the of and hopefully, well customer with more overseas we you we’ve is a And So a Chinese many terms way. some besides customer in the pipeline. more our we EngageLab

with And for EngageLab for one overseas in right companies question. results this deliver And that made my at answer hope resources overseas definitely future. I Chinese recently. I that's you that the of in second is going Europe, some the can the the this strategy you customer regards press believe corporation. to our if terms near I next BYD of background in have and in we release -- And is to we positive put So or the give sure. question your one look and okay, have

So particular Northern more Norway, this Europe, services think for I entered in in them into September, in -- -- this Norway. the electric of with pure it's SUV where have X,XXX we've is their in late than in agreement this they country late launch to delivered in BYD

able so particular messaging help for are improve solution, on BYD user in and carry to effectively out experience our their we users. the that leveraging market, messaging reach So cloud their

the so-called we especially in compliance Europe, requirement, messaging from various Chinese is system, GDPR believe security company delivery apart that So, very faced where stringent.

our competency. So for quality well going solution based particular, Chinese in catered and with I is Chinese company believe companies our based compliance And experiences in data and messaging -- overseas. stable

any overseas, more it provider out choice more our believe doors we think And question? service we contracts the without matter. similar in I think with Kevin, us securing third I press future what releases look guess of open And and that we this are your with in will for for and was this project doubts. do BYD,

Unidentified Analyst

or very past Okay, you've the coming One managing two your because question trend good OpEx, quarters. the things. the of in few the trend third is about again, a over OpEx the done job

to we'd OpEx very from to And -- going express secondly, positive? EBITDA turn few in when the So to quarters. to the are of like straightforward, turn EBITDA trend coming about you hear adjusted we the

Shan-Nen Bong

Sure. seen past a the controlling the operating on expenses four quarters. by our have question. expenses quarters, I made as have for this we good we third Chris That's really quarter have And we guess progress. have the past to past released the financials myself, over for have tough Sure. And five quarters. mentioned year, for operating XX based and the lowest proactively that we few you the

to cost And cost to to reduction straightforward. EBITDA effort perspective, our heads team's easy, that operating are expenses loss said global will operating company's our be are an turn be at to initiative adjusted execute -- there to internally, achievement long believe more And when challenging to since at now. believe means keep recovers, effective we the optimal And are control say course and I -- year-over-year. the level some unforeseen economy we it as not due this scale to the was at And moment turning this are process. XX% in we our turn think when our plan improve level, answer We with is the of that's pretty by optimized my that have we the this Back having QX a positive point, expenses still, event. probably keep EBITDA. record any in events guess low overall grow expenses that, And EBITDA the at departmental do continue specific timing and quarter-over-quarter. our and only level. and so by adjusted ongoing continuously uncertainty might all my we as And net no a question, this at as could we no continue natural is you all macroeconomic I the that aware, to the XXXX. all the we your and for of positive adjusted to revenue give potentially But Kevin. lean

Unidentified Analyst

Very Okay. Thanks. clear.

Operator

this Thank At Rene closing there you call the remarks. for from line. no the like further questions time, to questions. are to the for back hand would I

Rene Vanguestaine

Thank you tonight. our everyone call for joining

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

Operator

gentlemen, and you may your now Ladies disconnect lines.

Rene Vanguestaine	IR
Weidong Luo	Chairman and CEO
Shan-Nen Bong	CFO
Guangyan Chen	General Manager
Brian Kinstlinger	Alliance Global Partners

Aurora Mobile Limited (JG) 23 Nov 222022 Q3 Earnings call transcript