BLCT - Earnings call transcript Q2 2021

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Operator

Good day, ladies and gentlemen. Thank you for standing by and welcome to BlueCity's Second Quarter 2021 Earnings Conference Call. Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, we are recording today's call.

objections, disconnect any this have you you at may time. If

proceed. over will the Kong, please turn I to company. the Kong, for Now, Relations call Lingling Investor Head Ms. of

Lingling Kong

to Thank BlueCity's call. you hello operator everyone. second XXXX earnings and quarter conference Welcome

Mr. We A today Chief Ma, today. press released Chief results are Alfred Sun, Acting well on Executive of the website Mr. release as Officer; earlier and website. Joining IR Junchen company's will Mr. from be Chief this replay as Ying, also few services. available Baoli call us Officer; is Strategy Financial hours a at Officer. The newswire IR in ir.blue-city.com, our available on

today's XXXX. we Private the forward-looking will U.S. contain under Litigation Provisions Before that statements Act Reform of please Securities continue, of discussion the note made Safe Harbor

statements risks inherent uncertainties. involve Forward-looking and

company during assume the the from SEC. under note comparison and financial included As only. with except public for materially results regarding Please statements, applicable will law. update expectations risks filings as that expressed actual in to and such, does be these Further measures any any call, uncertainties discuss is information company's other may certain required management different company's purpose also the The today. non-GAAP not today's forward-looking obligation the

please take to details Mr. ahead. Acting remarks. conference call translate Then of that otherwise in strategies. over Mr. unless Chinese. are Ma Our now discuss be I GAAP mentioned reconciliations Ma, stated, press the Mr. CFO, our go on highlights. me remarks that, note CFO, call then over opening please growth results With CEO, all and will our measures GAAP the to can that, non-GAAP Mr. in during earnings to Mr. financial will turn Also, Baoli the Ma. Chinese Ying, After found in our Sun let release. his figures will deliver our our renminbi. will our

Baoli Ma

our joining today. all hello Thank and everyone. Lingling earnings you conference you for Thank call

year-over-year million across Total with a Health More XXX.X services. year-over-year X.X revenue XX.X% to excitingly year-over-year healthy membership reaching momentum strong foundation incremental XX.X% executions. up This our are engagement quarter and pleased growth outstanding monetization from He set by growth business fully the to XXX,XXX continued growth expanding XXX.X% reached growth the million. our lines. results MAU’s healthy user monetization improving by with user year-over-year solid grew from We XXX% In paying for ability capabilities and of all XX% revenue grew All through up steady demonstrates opportunities. and users and drive our total this year-over-year. growth

with a allowing access. one-on-one session, user doctors special streaming health setting live our limited Another a range exciting Dozens launched successful were appealing in kick hosting available to participants of renowned personal late raise China’s hospitals encouraging quarter such platform. and off this via in and users Q&A July. services Health from users interact HIV topics each strategy patients of wide Health promotion brought to activities hosting feedback. over on of health. This XX,XXX event to digital was start He clients for consultation very users top China’s the great with aimed streaming hospitals in from on with includes three started thing timeframe thousands as more doctors and were to the as well men’s live This knowledge as top live and with offering He and of questions sessions awareness online consultation

our the launch successful online also pleased consultation are to of related on services, extremely HIV the we addition with progress front. In the

service from XX recently. post prophylaxis two delivery of of cities in path, exposure coverage expanded successfully have we to China XX First, our

as PrEP manufactured this very be PrEP, efforts it showing improving was promotions of and in increasing demand as PrEP still HIV rewarding. pre-exposure also to China in at prevention risk awareness elsewhere a domestically out, China. awareness remains soon in proved quarter huge HIV well and yet for the slow on shelf protection populations important PrEP triggered sold affordable our among solution, in awareness of and orders the The plus and is useful prophylaxis, world. an Second, number

committed members are be China for availability increase domestic and to We believe accessibility value societies. partnership with will further deepening manufacturers our in in we and critical PrEP to which

our goals for on are mission to We execution right direction with unwavering strong and He the our achieve Health capabilities.

growing first industry online positioned enormous to consultations health advantage a well with awareness are inherent demand value. China's the for and With our mover opportunity we this capture and weakening competitive HIV

across over X.X app everyday Store overseas community TVC social Blued activities an vibrant encouraging X.X Live of Your UI individuals self filled encouraged activities more views posts and prime heartwarming app the from in June On successful generating Live X.X presented It values. to create off million user a users presence. X and was app from LGBTQ posts on online prime globe. this Blued of of our [ph]. on apps the social Blued remain attracting featured with on media network to Blued events to organize variety we -- million across mobile multiple TV connect actively app increased The the individual global on we the the front, in rainbow grid social launched during The after months combines committed which America commercials brand wide In the months, Blued and of the and via real features kick app, celebration and cultures XXXX share also global XX, XXXX fun the building others participate campaign experience. to to diversity fundamental streams, [ph] Latin released Blued the global with to ratings their global from extensive a combines Your as live platforms market a new identity. to public inclusivity over quarter, the which to of party Apple campaign campaign. Taking continue and the campaign. advocate Pride and and and all our its Blued campaign XXXX walks -- extraordinarily life a example, Pride Pride and

Moving further our will more to continue to global visibility brand forward, enhance we improve in and the awareness events capabilities. social organize aware And monetization market.

edition Mainland continued based product product innovation and location upgraded friends We accelerate networking the also to China find we achieve to function, and in addition our optimize meaningful In allow our offerings users June, program. to social our our and screen live new a users the streams video of instead calls. cities recordings, prohibiting just of different series features nearby. identity including protect and screenshots friends during In August, privacy on we global to introduced located and

faces capturing three to user added screenshots. out and from do service authorization. appear see users monthly efficiency user’s measures subscribers we X% already have users thumbnails Finka, within added new this months can addition package new to profile. in ensures individual main access photos paying of allow features preventing promoted owner disappear Meanwhile ratio choose for within In and Album that a matching drove gave albums shown to interactions. the visitors This Statistics function Private which With it public page the their launched. read photos after to exceeded can viewer the and not send protective albums, allowed when security, the being only that seconds through

psychological user across the to user’s place, and our remain We with in we began responses closely focusing committed issues experience, remain addition the LGBTQ further monitor to will we to our all forward, on continued services platforms. our offerings to in the Moving value group. health community, optimize committed already in

for Interest insight, psychological experience Public cooperate increase institutions established to Interest psychological called psychologic Public awareness health years is supporting community Danlan sexual members consulting minority Our need. resonated Meanwhile, video with consulting Danlan minorities. with interest the which issues Danlan of free XXX-hour series in launch and group via our within to of for mental will expected project

turn call me about to over our the CSO, will our let discuss Alfred, strategies. who growth Now

Chung-Chieh Ying

joining is Thank July plainly maintains mainly CSO business company Mr. purpose the a are and as and profit the make joined and to The for year. sustainable when thank operations. my for everyone for I call you, today. for ways our BlueCity joining looking the Ma in this future you company

my quality you some term has long order business caught competitive pursue in I our me market. strategies. What a did on is across give it resilient In of company that, thinking to let is core with Our highlights strategy growth, to growth. latest quality achieve our

our is The about business first, model.

where streaming services will We maintain quality revenue leading content. in with continue and to live the a high monetization stream position diversify methods we

Our long-term and health services from contributions product goal revenue larger social services. networking to related membership and have is

it to momentum becomes our we raise for health achieve in expect the in growth future and new quarters the and and Health stronger of to community awareness driver As company. continue the pursue growth lifestyle, a better members He

offering. second The product is our about

services to provides markets different continue LGBTQ of serve refine portfolio, product through different and and customize will unique We in our effort. our which R&D branding the to subgroup

to addition the R&D, complement the we product users. opportunities and acquisitions current those and a market sectors further products our synergies strategic the evaluating to are we expand has growth broader portfolio. current our better which in range organic In will our exploring business to via from investment to and to potential Therefore, remain reach greater of committed

third the probability. The is about

value. our operating in measure model lifetime We user's reassess process are and our business by to the efficiency

a a our our While base, for user we products, the and community members. lot solid invested brand company was going period, through services, name, the expansion have in a

retention revenue services, Therefore, to measures operating the user starts We year. increase not also are stage our which to now this products improve balance but and control efficiency, via engagement we QX only to and the in from we profitability. strengthen will expense growth our implement our will the for prime focus and between

CFO, will call me who performance. on over let our Acting Now financial the Sun, our to turn provide details Junchen

Junchen Sun

Alfred. thank you So,

our Now the financial for let go me through quarter. highlights

year-over-year earnings stated which in details, All are note of website. I contained RMB changes are a Detailed presented Before quarter press the and IR specified. are otherwise in release and go the available is XXXX into analysis unless for that basis, otherwise. percentage unless our on is on numbers second please our

progress increase million X.X revenue, XX.X% for XX.X% period our driven base, the QX year-over-year, eighteen% strong from growing services improved year-over-year users from paying [indiscernible] quarterly quarter. from In up of slight XX.X% million, service from a and Revenue and encouraging in up our our last Our membership quarter, paying services increase last total the up was overseas this from ARPPU compared same to X.X%, RMBXXX accomplished total premium offerings. of year. X% from in million from same was with services apps period last primarily meaningful our last XXX%. monetization million, XX% contributed revenue an Revenue we was last revenues total user year. a both same a also streaming services from diverse RMBXX.X by reaching grew with membership growth to RMBXXXX, this MAUs XXX,XXX. streams a the X% diversifying increased revenue was year. our growth for total to period to our RMBXXX.X Notably, XXX,XXX of users, Revenue

advertising attracting the Our merchandise membership increase more from potential membership optimizing He due continuous were million, RMBXX.X, as are result offerings. sales membership marketing ARPPU and we with to from in solutions our of this efficiency. and XX.X% as XX.X Revenues for driven XXX,XXX paying for RMBXX advertising service the and up expand as into quarters new new and to XX.X% from continue to for our primarily advertisers services future higher our fully priorities services well reaching Health with our achieve XX.X% growth mostly we our expect as our improved advertising momentum coverage monetization in service our and we year-over-year produce resources primarily services accelerated XXX.X% illustrates offerings. related remains. expect our we offerings users Health future service strong to million Revenues pay by ARPPU about and up geographic the driven increased the up reached and for health was He devoting efforts, services

premium of to sales XX.X% increase increased from million. well He same and costs Now Gross revenue products from services, pushing expenses. the the that the moving last RMBXX.X increased as year from primarily to with growth with three line the the due million membership profit the advertising was and was percentage sharing of our The cost. growth of to RMBXXX.X up XX.X% as points increased last cost was XX.X% gross Cost along higher by of Health period margin higher revenues in revenue stock up benefited margin services. increased and of

expenses offset actively of accelerate our further and sustainable revenue committed revenue million option million period expenses X.X in explore increased loss the were due increase to promotion year-over-year. cost loss improvements. cost the overall the with professional our the still up fees expenses. increased to the quarter up net was and million, XX.X%. Adjusted well production, expect options XX.X%. the the by Net million increase well year. model services revenue, development content mainly of compensation higher compensation streaming sharing net expenses last departments, XX.X%. Meanwhile of a for our to were million was live stock, X expenses. marketing stock the in components and share to net a XX.X% The from The for contribution RMBXXX.X cost and We stock The advertising increased related revenue the as million due futures. stock based up to Sales in were service. as cost share the to compared Operating with key as RMBXX.X share compared partially sharing and percentage loss technology remain margin were expense in membership last XX.X based in of due decrease expenses the XX in loss as to as Technology up we the was G&A million mainly year. bandwidth due same XX.X is implement based server more to adjusted was achieve cost was and to increase and mainly increased RMBXX.X million and second reduce expenses,

cash to XX, million of term equivalents as December and June XXX.X and deposits compared of had As million XXXX. of XXX.X XX, XXXX we cash

growth [ph] the muted pandemic. to moving downtime and our slower our the Due live overseas from streaming resulting guidance. from to expected Now market impacted than progress services the the monetization from economy from

XX% XXXX Our representing between, RMBX.XX downwards year to revised to year-over-year a RMBX.XX total XX% billion growth. full revenue billion, to is the range

remarks confident are strongly. remarks. model prepared That and long-term still we growth we ability achieve -- our our in concludes As our follow of business and objectives, our back bounce to our

now questions. open the Operator, please call Let's for ahead. go

Operator

[Operator Instructions].

Capital The of ahead. Loop Management. Please the line first comes question from from Champine go Laura

Laura Champine

Thank you about business. for live in to information streaming the taking get my question. slowdown I wanted more the

If driving long you've lasting delta about see give got and year it what of sales how or the if on maybe variants be visibility you color us -- before this we the is reflects lasts, it through more that, any talk trend what looks it could the end guidance impact revenues? impact more to like on the was started

Chung-Chieh Ying

which and this market with Alfred. China, Hi, streaming entered Yes, business regarding share streaming increase, live the streaming pretty is result somehow That first that can live the have in and show of is And market reason. was actually that the live competitions. is the -- as those the company you our the impact have business complicated cost that intensified the videos competitive especially the revenue. know, they

try of was adjustment streamers. time to users for of you original kind quarter as That probably to strategies this Tier well. last new reason live taking adapt streaming to third might year, the as And was our know, improve X kind that, longer four the second from adjustments expectation. we much The quarters live will last than study of activity

So what that competition is the continue. we expecting in market are the will

our compared We guidance to live will of business this business the -- maintain to from our the than streaming in and year. to original But improve below our is maintain try second either half try revenue original expectation.

Laura Champine

part on as Are revenue next the is Health? reaccelerate or to year streams growth BlueCity growing business ancillary such there of He is really that the actions focus the taking that of

Chung-Chieh Ying

provide most which is to important is margin the first value forward. that have membership and with the contributions users, our live are the try that that only added With from we owning the will services. -- one is contribution the not are will And improvement By increase the these to trying that The think also can our it service and the two going margins. priority. from revenue we improve lifetime always services also services streaming to we we way higher

Laura Champine

Thank you. Got it.

Operator

from Instructions]. Sir, Kevin go from [Operator Securities. line comes the ahead. [ph] The please question Hung Industrial Mr. of next

Your line you. is open. Thank

Unidentified Analyst

Thank you questions I for taking management question. had here. two my

some First, on geographical overseas impact the of coming what overseas could share about second, the from market control Thank color in the the you. distribution the company's strategy you And this about users? expense quarter?

Baoli Ma

Okay.

the do me Let translations.

mainly are the users in Our Asian region.

example, For and especially South Korea, especially I have are Eastern Indonesia, example Taiwan, on. so for Asia, for Asia Thailand, and Malaysia, like

also in year, lowest a users, user In this addition quite we starting the from number Latin our users to regions of from have America. Asian

our overseas. mainly are users these So, distribution of the

focus higher the In on in terms with lowest that. future will our market, our for we overseas of building strategies ROI market

only looking market. on the real the number We at at in users overseas users contribution the those -- also not looking those we're of are users, from contribution,

at the ROI Because look will acquisition money lot a in we we and for will major of the market We overseas. control. lowest the higher user also, implement with start the spent expense past,

carefully kind we spending as going mentioned one Going specialties always our for expense tight of at is control, I will forward, that profitability very forward. look of because earlier,

will the implement only strategies the not overseas the for the in profitability of we and at company expense So control the future. the market look

Unidentified Analyst

you. Thank

Operator

no questions Sun Mr. let Sir, please the Seeing for back closing Thank the turn call you. remarks. [Operator in ahead. go to me queue, Instructions]. more

Junchen Sun

progress. participating your to interest you, Thank on We operator. Operator. next and thank for again support. And to you today's our for forward call look your reporting you all and appreciate quarter

Operator

concludes for you. your Thank participation. conference the you Thank today. That for

lines You now. disconnect may your all Thank you.

BlueCity (BLCT) 24 Aug 212021 Q2 Earnings call transcript