LAIX - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by for LAIX Inc.'s Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions]. After the management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Director company. Relations Investor He, of the Harry Please sir. go ahead,

Harry He

will The guarantees the Private the Hello, and our you, up discussion the LAIX, CEO are Act. established begin and the issued statement company our and for Litigation and as Liulishuo. Bing relating download list and First and performance with that company's subject at ir.laix.com. you some Thank CFO, qualify today, prepared sign IR to Sun, also remarks. results harbor by to the and liability will earlier as to certain from for Please assumptions Quarter U.S. visiting note everyone, Call future Founder; our of and website factors. of release and welcome risks Dr. today's Maria. to other earnings can safe performance were are Conference Securities not statements XXXX uncertainties, are intended contain known distribution press Reform company's for forward-looking by Earnings Yi Wang, the Such statements future Mr.

mentioned obligation and any financial and discussion undertake including these Commission, Exchange its today's required this Securities update the that the risks are results does those by annual except the not and as release business control is The with cause earnings could results included of of in forward-looking general the filings company law. report. company information, certain of LAIX' to risk materially discussion. affect from company's A actual and differ Some could beyond in factors to

only. non-GAAP financial discuss call, today's for measures certain During comparison will also purpose management

to release ahead. to please the of and refer Dr. go a definition over I turn our a financial earnings of today. financial CEO, Dr. results, Wang. For Yi please earlier now Yi call GAAP Wang, will non-GAAP the to reconciliation non-GAAP issued measures

Yi Wang

cost on continued conference quarter, revenue In you, beat both The previous margin Thank fourth quarter the to previous quarter Thank restructuring earnings the net quarter. our we you initiatives. million, in which profit and guidance. to were efforts have grew operating into Gross XX.X% our Hi, and joining enhancing put XX.X% solid XXXX total our call. efficiency organizational from everyone. the control progress Harry. great fourth in for RMBXXX.X made

was decrease forming Our to and net RMBXX.X expected quarter user user the and the improve is the content-oriented have loss experience-centered exploring constantly a improving even first we in a further to XXXX. technology-based, reduced of million, XX.X% needs and quarter our and experience, company learning from culture inception, been user Since previous system.

plan and Looking channel ahead, high-growth with into new acquisition efficiency markets to developing user potential curriculum we content. and expand by increasing new countries

learning customized professional we corporate training specific will to plan tailored discuss In our execute to continue over our growth results. on and terms strategies, and Sun, proposition CFO, who the for to industries services, of system to solutions key to with value value AI to technologies will enterprise customers financial In more provide I utilize our Mr. needs. talent we bringing will our turn now market maximizing of all long-term our and call the shareholders. Bing strong summary,

Bing Sun

hello, Thank Yi, everybody. you, and

was increase and million in last million, for billings RMBXXX.X of million for our for control for were for RMBXXX.X primarily X.X% quarter XX% RMBXX.X previous RMBXXX.X same million quarter year. compared Net our the primarily the quarter decrease same financial million a personnel compared quarter to due personnel due the the decrease quarter year, same in RMBXX loss and the the RMBXX.X from operation quarter-over-quarter million million the management. RMBXXX.X change increase year. loss an and leasehold Net control was profit for a RMBXX.X the company's charge quarter year. last previous and quarter and for ordinary million, with year. same a were by due optimization expenses million cost the the the RMBXX.X RMBXXX.X a from The from to IT-related from quarter for XX.X% the XX.X% last and million for decrease for RMBX.XX efficiency the and for to user from were of the decrease RMBXX.X Gross optimization quarter XX.X% were the million for Basic metrics with expenses a quarter expenditures for previous RMBXX.X XX.X% previous for Gross RMBXXX.X million, quarter R&D impairment operating year. and take primarily RMBXXX.X from and marketing XX.X% with RMBXX.X expenses XXXX. gross G&A year. was primarily stringent increase previous decrease quarter previous changes from decrease user due The the Sales XX.X% quarter in and operations The same last was X.X% million XXXX RMBXXX.X same Loss XX.X% last million the of and previous year. a million decrease due company's key decrease the from for a of and year. cost quarter net to on RMBXXX.X with primarily previous personnel RMBXXX.X and diluted last for at a stringent decrease last a by and to quarter-over-quarter were last control XX.X% personnel primarily ordinary user the quarter quarter the now decrease year. revenue quarter optimization staff Total compared attributable the advertising was quarter expenditures increase in service for quarter cost onetime RMBXX.X from million quarter last million, management. same from to quarter XX% revenue an in acquisition compared for the million, RMBXX.X loss was benefits expenditures. quarter, expenses last same secondarily, net million The RMBXX.X the the the from year. an in decrease X.X% RMBXX.X million million structure. to for RMBXXX.X margin same in for optimization XX% and, were management. a Cost the improvement. million for and year. million previous fourth share decreased million, expenses changes The previous same was last RMBXX.X same quarter a stringent previous RMBXXX.X from Adjusted from cost optimization million the RMBXXX.X Let's The RMBXX.X XX.X% with last look in acquisition RMBXXX.X salary caused of same fourth XX.X% due a million a million, acquisition decrease the was in million attributable the and quarter was the XX% to efficiency for for to were decrease management. shareholders due from RMBX.XX G&A compared RMBXXX.X per primarily control from million the for previous and million RMBXX.X the quarter for was quarter of the RMBX.XX

XXXX, RMBXXX.X equivalents, as short-term company's and XX, cash, RMBXXX.X million XX, the XXXX. were XXXX, compared and of totaled X-month September December December due a operating of RMBXX.X restricted December cash XX, XXXX, primarily in RMBXX.X million million as used the period Net balance decrease to XX, sheet, ended In terms gross for of RMBXXX.X cash billings. activities million the in and investments our and respectively, cash with million as of XXXX,

investors. quality current the user on by its company's and assets control to user-related and acquisition RMBXXX.X diversified current while XX, other As manage RMBXXX.X based liquidity labor engagement and liquidity the ability obtain operating preserve is flow exceeded expenditures, including capital million. months liquidity traffic December efficiently fund optimizing deficit higher its debt above-mentioned XXXX, was the with to XX enhance equity believes Currently, based it cash next at its liabilities company's the total strategy The will also measures. meet discretionary for expenses. ability sufficient of to working from company or various shareholders' further The to reducing financing company's has reduce future by on and courses costs. capital operations million the is The costs and the retention of company to offering by implementation and cash the least that

million as RMBXXX.X December XXXX, deferred As totaled revenue XX, million of RMBXXX XXXX, RMBXXX.X and as of of and compared revenue December company's XX, with XX, the XXXX. million deferred long-term September

to let's Now our turn outlook.

subject XX.X% million, a from RMBXXX which currently the first expects net decrease revenue view same on approximately current This Operator, XX.X% million reflects of our change. situation market quarter the forecast to which prepared to company's preliminary the XXXX, the the to million business remarks. for go company represent would current quarter ahead. RMBXXX is This of RMBXXX.X to be and between concludes For please year. last and conditions,

Operator

Leah a from ChinaRock from of the coming have Fen line [ph] we And Capital. question

Unidentified Analyst

net remarks, further elaborate be quarter. the will In that? more the prepared the you loss next in Could mentioned please improved on you

Yi Wang

question. you thank Well, the for

cost is to sign. continued focus by of savings, expenses XX% QX on the year-over-year in This operating efficiency improving we positive and operating As a XXXX. decreased

capability control. more commitment it in XXXX, cost this decreased which year, again company's QX our substantially So of even execution proves and in

revenue right is see all -- means the you acquire now, offering As main and still users to Adults good efficiency. improve conversion overall our to business, to optimize our contributor product opportunity to we to the continue know, leverage different and the while

new future. we be meantime, As hope contribute stabilize, that able our to business business the the in our more main to initiatives, begins in will

So for further the more you I'd they when question. Thank be discuss materialized. to are happy

Operator

time. this now Harry to don't have questions He. we turn further back And Mr. will call at I the

Harry He

again, Thank you, us. for once joining

questions, or Investor further on to the free provided please our information Investor through website Operator? have you Relations. contact If Relations contact feel TPG

Operator

for concludes this call. participating. you Thank conference today's And

now disconnect your may lines. You

Bing Sun

you. Thank

Harry He

Thank you.

LAIX (LAIXY) 28 Apr 212020 Q4 Earnings call transcript