Earnings call transcript Q2 2023

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Operator

Hello, ladies and gentlemen. Thank you for standing by for Lizhi Inc.'s Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded.

I'll now turn the call over to your host, Effy Kang, Head of Capital Markets for the company. Please go ahead.

Effy Kang

much. very you Thank welcome call. Lizhi and XXXX second earnings conference to everyone, Inc.'s the quarter Hello, our and released and We financial they earlier Newswire are today, services available online. operating results via and call include today's on Participants our Founder CEO, will Mr. Lai; our COO, Marco Mr. our Mr. Zelong Li; CFO, and acting Lu. Chengfang Mr. Mr. and Li Lu prepared remarks. with will begin

reminder, a is being As recorded. conference this

of conference of ir.lizhi.fm. at our will a available be addition, In this on webcast website replay call the section IR

discussions the will Safe Before Private contain target, statements may, continue that we similar potential, continue, Act the of please will, or believe, made statements words expressions. Reform Harbor Litigation today's provisions These typically U.S. note Securities under expect, XXXX. such intend, other forward-looking of estimate, contain as

GAAP to required impacted by unaudited number risks applicable obligation involve affiliates, could actual note factors a uncertainties GAAP advisers, as press reconciliation representatives also measures anticipated, unaudited business inherent cause Please The press any a that underwriters discussions non-GAAP as under Lizhi's and well our for non-GAAP financial to and not includes measures refer forward-looking which measures. of unaudited Please to update its statements or to are as those accuracy projected risks Lizhi's earnings beyond undertake from be control. do differ call of many law. and materially that results information, release financial the The of of Forward-looking measures. release this these conference except may earnings uncertainties. these of and statements unaudited company,

ahead. turn Please our will COO, the now Mr. go to over Li. I call Zelong

Zelong Li

second quarter Lizhi Thank everyone. earnings XXXX Inc.'s Hello, conference for joining call. you

optimizing executing core we audio-centric XXXX, of seizing strategy features experience. elevating online quarter our user technologies, and [ph] globalization on second remain committed by the to advancing product In

challenges We to fostering ecosystem. by revenue company's thriving million. increased are macro RMBXXX the XX% Despite year-over-year a quarter, in second the business actively

totaled paying Our and million, our total monthly amounted MAUs mobile XXX,XXX. average average users to XX.X

million. RMBXX.X net also income We of a achieved

Now With enliven me refined the audio themed go second quarter. community we let developments atmosphere introducing management operational effectively by diversified implementing business more the the the during to business, respect activities. across over and our entertainment further

For and our voice users. midyear strengthened interactions creators content -- example, the gala between the and connections early activities

the actively activities, encourage such as programs. season participate launched with our of featuring podcast college quality which area a also in week, We content midyear themed national to creators our examination, the special

gladly matrix better Many popular include content Talk, young sharing and personal suited on that audio-based [indiscernible] creators and to our minds. store with users, were sessions, offerings our young diverse experience. delighting content interaction Radio our diversified Beijing with featured inspire taste thoughts livestreaming their We enriched users preferences,

experiences will functions connect continue closely roll differentiated continue our promoting entertainment cycle with and product experiences. fostering users and our features out across activity our more formats and users, immersive forward, to Going exploring audio content ecosystem. virtual innovative additional a our matrix to highly product community providing vibrant innovative will and and we in creators reaching we product Furthermore, product

wide the upgrade creator continue them differentiated system helping development support customized creators creative flourish solutions, ecosystem, For and our to our of area management content and we on content platform. our with grow

sets success enhance diverse their quarter, the system. operational to For and management support creators through streamer launched on content focused refined meaningful with program providing the our growth example, needs our and newly we in our development summer capabilities second skill for

continuously system, the offerings attract improving further our with and star inspirational planning. the support content in also generation content ideas young for channel them content our outstanding creators rising up worked emerging in We high-quality conceive to We hope a more involved By across of set to enriching stars and content creation, we more helping our our creators talented users management rising cultivate platform. attract faster. and content grow greater official

continue business. empower then, functions we development upgrade and business, our core to propelling further and global diversified our innovation the global product of accelerating Last the user product through networking integration with functions. launched consistently chatbot, since our social technologies, of we enriched have the our Regarding FRIEND MY quarter, product we experience AI global various in new TIYA the And product. App, audio-based

and Users In and large new and brands year, virtual Alex. through a their interest smarter musicians, own enabling customize exclusive social online pool we to May such can preset over users' experiences. AI more of experience. launch preset enjoy diverse create DJ This virtual leveraged companions, and TIYA engaging virtual avatars this needs to online social AI cater companions our to XX as characters spanning also consultant, unique Fresh game

in a launched consistent MY gestures the users to empowers companions. AI AI voice emotional share for our naturally micro expressive extensive enables social Avatar AI speak realistic more to further to FRIEND, and we to scenarios, and July, Animated a the our move AI technologies, innovation enhancing establishing which all expressions This more their facial across friends function. feature our to deeper friends between users add the AI now to networking platform. their users users feature customized friends, with In interactions Thanks can new customize and access connection accommodate AI

product build In Going forward, of to our and core we technologies, will development expansion in the forward capabilities including pacific through AI business advance audio empowering transmission, through our efforts. further meantime, localization, commercialization continue innovation. positioning product strengthening constant the processing and innovation global technological and global and we our with push foundation

for a optimize and front, we features commercial voice solid products functions relevant diverse more further integrated On innovative based the product foundation technologies, and product the on AIGC our launch the application. AI laying

our reducing efficiency. operational development technical comprehensively technologies, For operations, improving effectively and sales cost we applied

amazing and next-generation forward, AI the we technology of development exploring in and ultimately the users field, we technologies, voice-based advantages experiences. our applicable with will most networking AI enhancing As move incredible continue social research scenarios in making our

deeply the innovation we and our voice and product we AI empowering AI refined Looking through and to more products, our ahead, AI out technological ecosystem will integrate across assistance challenges, innovative Moreover, chatbots our further AIGC go operations. the technologies, will advancing business, continuously despite macro continue business through elevate all and expansion. to and global adopt development competitiveness optimize

With that, I call will more who our all. our Lu, over CFO, results to detail. the discuss Chengfang Ms. you in will turn financial now Thank acting

Chengfang Lu

We revenue and Thank everyone. the growth and hello, maintained second in innovation-driven XXXX, building you, sustainable year-over-year on a Zelong, quarter focusing ecosystem. of while

technologies over Moving forward, core expansion strengthening we will global continue business development and long product spur promote to the term. ongoing

as sharing brief quarter audio million, the for second representing product a our were of continue fees entertainment diversify partially million to representing increased I'd of revenues RMBXXX.X RMBXXX.X of our like in our a total XXXX. Cost year-over-year mainly increased increase by handling of revenues XX% our miscellaneous welfare increase matrix. were provide increased the Now decline XXXX, the In and of net an to second financial payment costs. salary benefits overview to results creators, second and to costs, content in attributable to an other of increased quarter, we XX% offset related salary quarter year-over-year, average revenue

this million in of Non-GAAP XXXX RMBXXX.X of profit gross quarter last last the compared this last in compared second XX% Gross year. year with in second gross the margin quarter compared in RMBXXX.X second with quarter period period of RMBXXX.X was million was period in in was the Non-GAAP in the in with RMBXXX.X same million the same quarter profit XXXX million compared year the period XX% of with was same year. the margin the XX% of second same Gross XX% year. year. last of of of

and expenses with of due decreased related XXXX in were increase last to increased of year number of R&D second RMBXXX.X million partially benefits compared million RMBXX.X of services were welfare salary the offset Operating the last this RMBXXX.X period expenses, provided and and in quarter RMBXX.X same third development and second of compensation the and compared period development in Research share-based staff expenses with same related million the by to expenses research year, by in the the to parties. increased million in rental our quarter expenses primarily year.

same marketing our in million of second of in sales staff. in increased the related expenses to to and with last expenses number in benefits Selling marketing RMBXX.X and RMBXX.X increase XXXX welfare were branding year, of attributable marketing and salary quarter the increased million the primarily period the compared and

based monitor promotion and and will advertising expenses our conditions. market accordingly on adjust We

increased and year. benefits quarter partially welfare increased the RMBX.X to was salary. and RMBXX.X million General with year, mainly were for administrative the litigation compared related in the in fees, compared expenses other of RMBXX.X the the second million second miscellaneous period same million Operating XXXX of quarter contingencies, million service average same with period RMBXX.X and in of share-based last decreased by of provision compensation expenses income salary professional XXXX offset last expenses, in driven by

of million operating the million second period RMBX.XX second the second XXXX the in last year. basic XXXX compared with period million this second period Non-GAAP year. period of compared in in per quarter period ADS diluted last income the XXXX same with the in RMBXX was compared income year Non-GAAP quarter RMBXX.X and quarter ADS with in income of RMBXX.X with in and in were compared of the same million million year. was income same same year. compared and RMBX.XX, income Net in last RMBX.XX Non-GAAP net net RMBXX.X with same both last RMBX.XX second the quarter of RMBX.XX of of RMBXX.X was respectively, and RMBX.XX in of of XXXX per last the the respectively, were Basic the of quarter diluted million year. net RMBXX.X in

short-term cash million. of As and had cash XX, investments we cash equivalents, of June and XXXX, restricted RMBXXX.X

prepared all This Okay. today. concludes remarks our of

Effy remarks. turn would I the to closing like to the for call Now

Effy Kang

Thank again today. joining you us for once

contact questions, Lizhi's Investor our provided Piacente free Relations you please the website, the feel If information Relations. ir.lizhi.fm, further on or Thank contact you. to Group through have Investor

Operator

Thank you. the conference call. concludes That

you. disconnect Thank now your may lines. You

Sound (SOGP) 29 Aug 232023 Q2 Earnings call transcript