BLCT - Earnings call transcript Q3 2021

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Operator

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the BlueCity's Third 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

over will company. Wu] proceed. turn I to Ms. the please the Now, for call [Lia Manager [Ph], Wu, IR

Unidentified Company Representative

quarter everyone. to hello and Operator, conference call. you, BlueCity's Thank third XXXX earnings Welcome

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

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

Forward-looking and statements risks involve inherent uncertainties.

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

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

Baoli Ma

to you Thank enhance strategies earnings which experience. all [Foreign our user everyone. the call hello, today. In and you, on] and Thank Language] our optimize conference continue our growth for Language] operations our [Foreign [execute we [Ph] joining offerings quarter, project in third

further also company's improved revenue We in structure. the

of Language] structure, started our This provide As MAU new XXX.X% revenue our a well and across He of the membership year-over-year, stage connected and to BlueCity's result multiple Total we priorities. revenue X.X strong growth fruit. million, XX.X% that we XX.X% content. product [Foreign company continued progress apps our our fully a optimize and our strategic get services solid paying along our increase efficient momentum, a with During with growth XX.X% made users operations [Foreign particularly users, reached way the result, respectively. to Health for maintained up our in year-over-year to demonstrated our more of as creating entertainment quarter, strategies accelerate engine and as have diversifying enjoy to innovation bear Language] with

popularity Some among users. already gained features have our

While [have to how on stage [Ph] For would space, get the more month-to-month basis. initial of offerings on have we voice revenue example, last are chat offline Language] which room, a also in gained] of the two-digit introduced [Foreign growth traffic. exploring a variety introduced we great year, from online

a or launch information. we feature For activity offline users example, plan to post our to share enabling

which [societies] members Asian on Language] of safe with strong we begun and will enable [to more overseas Meanwhile, users cost choices, countries. full besides saw [Ph] list are users reviews Health vital of services closer Mr. packing, of further greater restaurants daily heer In services, [conversation] great He Southeast express a screen peoples' most video privacy. more community. and to the plans to we members' spending [Ph]. our [indiscernible] personal call. market rollout screen The Finka's them LGBTQ-friendly provide delivery also quarter, new a on for prohibiting goal XX% for in by live and male prevention needs Language] XXX-city of introduced features markets, both Finka, domestic during Language] all With stepped products. healthcare [Foreign men's the consumer of effect, marketing [Ph] chat, the [Foreign trend] a we expenses information a aggregate and will third offerings and leading products health. travel also leave Blued, to a sexual cut network security as necessities. to we measures our we've Currently, [indiscernible] heer [indiscernible] In [Foreign new offline identity this we captures customer-friendly Finka and in the and The community in versions, to important this and Mr. for the cultural products. covering user Language] November recordings heer, series With international overall XXXX, background community, our more this how offline user important [Foreign and spending and provide brand expand will on rollout another our include to of in launched the optimizing it our and services environment committed members to has six are He on quarter, [indiscernible] further another third automatic and of personal last advertising of often [Ph]. HIV is digital growth us quarter, This from services and and LGBTQ commitment membership always then choices. safety which we feature transformed the most through from our on customers. content reminder quarter, [indiscernible] and strategic stories, feedback streaming to just discreet for providing consumer during got spaces and of the blog, protective growth shows our base quarter-over-quarter milestone core success and Finka's to path We [indiscernible] [Foreign give is provide Mr. paying our of X, orders share convenient the It Language] is our in to a health products [operations] XX%. increases we to for product part rate priorities Health improving providing can of community. a quarter ratio lifestyle enrich as a our different than male secure Privacy

marginalized on health rise also activities quarter Responsibility Health products, Health proven to services Day CSO, me LGBTQ gay conducted In But growth structure, emphasize [Foreign the COVID-XX on increasing the to environment, well to strategy. in discuss actor the commitment of charitable well would the revenue the to robust subgroup users' our the future. groups. We of of comprehensive with of and World also Alfred, improving quarter, to he's that the Language] gradually the in products it we video are all to community. our He profit that this to platform and our like organizations by who a business. some our values macro dedicated online-offline revenue I aim growth in in a about will pay Mexican [Foreign collaborated because Language] continuously Morin, lab we turn headwinds Now, this proud develop setbacks as Mental men's further And XX, for of from communities, October enhance we aspects Our and are to screening being our willingness more near covering call create needs. is from for we different Corporate visibilities Social [Foreign our openly we the as Polo to an we by a donate over see will let improving the confident Language] into suffer

Chung-Chieh Ying

for call Mr. you, Thank joining and you Ma thank today. our everyone

business just goal. towards right the stays on Ma Mr. track our mentioned, our As long-term

to we we're percentage respectively, to and our with as quarter, as to our from XX% This same the He profitability. pursuing on Furthermore, last we XXXX, to third see cost implemented order increased of our total X% and the related comparing membership of addition for a to from measures are line the to period and in balance process year. top focus contribution In revenue of pleased our product model growth, membership control X% and customizing the and in revenue efficiency. quarter reassess between products X% pleased services we still revenue growth Health health stream, in to continue and revenue improve revenue and diversifying services, in was operating portfolio our increase, business our

sequential continue our heightened offering higher for for overseas example, basis, as grow. expenses acquired the and XX.X% users the long-term was [indiscernible] as countries organically on see our and service product overseas to regions with a means growth to We're activities. such sustainable future the on in targeted potential business looking we through ROI our promotion monetization For increased considerable and as and decreased as that to

Looking remain with committed and optimizing focus on ahead, our we will our a strategies executing growth to reaching product our services. offering

will which services. total LESDO, Lesbian differently than in with pay a health quarters. and contribute We have of efforts less online male stay operation HIV from of with raising of awareness lower willingness past revenue users to the our of continued networking to prevention. we also quarter, In users, discontinued X% social our mission the for we

of stage the our we to our will community. continue right LGBTQ of forward, core the on We our serve believe are growing strategies and of with towards Going the the execution. well-being to growth business on next soundness the focus we strong directions

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

Junchen Sun

Thank you, Alfred.

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

numbers Before unless that, otherwise. third I are of specified. XXXX basis for a go note our All please the i.e. renminbi details, on into in changes percentage presented year-over-year unless quarter otherwise and dated

our on Some detailed is content IR website. analysis which is release, press available earnings in

strong XX.X% services. XXX,XXX. driven total RMBX.X growth decrease strong from our million million, MAU users reach paying RMBXXX of has XX.X% this total year-over-year QX to live revenue our In by and grown for the from in a streaming with revenue total to Our quarter, X.X% primarily our

well the Revenue decrease Revenue the year-over-year. The in we the increase and million ARTPU significant headwinds encouraging period paying operations from per to of the more decrease diverse attracting last total Revenue Health to in industry XXX.X%. was advertising a a resources from across revenue to revenue coming The China. same XX.X% devoted overload with the increase Revenue efficiency. advertising XX.X% live Health quarters from benefited streaming also services diversifying maximum the services efforts However, with from debt increase overseas momentum was Risk revenue advertising in to primarily membership reached in the streams for million Health membership our million growth was apps. membership this result as in RMBXX.X number live due year-over-year solutions from total the in streaming was from as services and are stronger the the He RMBXX.X in expand the our primarily advertisers, as Note million for revenues. RMBXX.X as continuous a live streaming achieved He accomplished average quarter. up our Revenue from was diverse He fully, year-over-year increased we the to up services a up services health-related primarily on of by motion X.X% company's meaningful contributed improved in XX.X%. paying due RMBXXX.X with XX.X in in more users sales and company our from services year. offerings. show reduction progress revenue slightly talent decrease the user of due streaming of decrease representing live

mainly the reduce Now, was the RMBXX.X [indiscernible] the our partly revenue primarily overall Health He live XX.X%. sharing margin of from the by and down million, growth moving actively services increase XX.X% due stock services, of the advertising a and down decreased development up were decrease to costs more down margin sustainable of marketing offset were cost year-over-year. the decrease the to the cost commission revenue with of The expenses implement of RMBXXX.X XX.X% key [content the revenue was our the revenue streaming was Sales The improvement. remains bandwidth due the was increased of RMBXX.X were and services. expenses as same from of G&A expenses, of RMBXXX.X to cost; sales increased components XX.X%. solutions, Operating partially now with down and profit to was for light cost staff million, sharing decrease are streaming revenue. costs, expenses million, decrease server] the decrease with expenses, RMBXX.X strive decrease million, to in offset percentage share-based The [offset] and decreased compensation cost. The last and staff revenue of due products connected was model of cost. by which share-based gross and and million of to to million; to XX.X% We due to X.X% offset last [Ph] and along and XX.X%. increase to The further the remain revenue of compensation cost RMBXX.X our cost, technology-related by explore sharing X.X%. and achieve year. decrease and We partially increased compensation partially by committed costs. contribution and period the increased gross share-based We to [Ph] accelerate by membership staff were expenses. promotion our still the expenses expenses Technology department the was and and mainly the mainly in

million, year. due termination with the RMBXX.X RMBXXX.X RMBXX.X same last compared goodwill adjusted million was had impairment million in net of year. last the net in RMBX.X Net which loss This Adjusted Lesdo-related compared quarter, of same and loss business. was the income RMBX.X of was intangible the million, assets loss of to net quarter million, we period of with

XXXX. had providing million, the the compared remarks. XXXX. industry, XXXX, increasing of given that our specific term XX, cash the show with RMBXXX.X million our equivalents And to guidance, XX, revenue September of of and we cash a prepared As talent streaming for as not moving in uncertainty RMBXXX.X now live guidance we concludes are full-year And and deposit December

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

Operator

first from the Capital. of line is your is Our go Loop open. of Instructions] question line [Operator ahead, you. Champine thank Laura Yes, Please

Laura Champine

impacting Good think might key Thank Could growth? give to business, for sense you live my question. taking business negatively the what of and thank that factors morning, us streaming for us you you when outline you. that a the are return are

Chung-Chieh Ying

high it's in the What these competitive, business. are And shares that live Hi, streaming for to China, or doing might competition business high measures revenue different live the Alfred. companies, are market. in improve Laura, revenue the our way Yes, become stream is some this several live more especially streaming implementing a give is actually they a cause we share. severe we

training engaged. some features well-known to to less them or streamers, Also, audiences. helped we some as example, gamification For to will some help keep such we attract live introduce give them users develop more features

We in concrete some more expect to result see XXXX. early

Laura Champine

question, competitive that think you cut in market follow-on gotten I for that comments BlueCity a prepared performers, you as the just also would but How And mentioned you you your that has mentioned work? the think can takes. raise

Chung-Chieh Ying

less the try user, We app, streamer training because and our mentioned have they streaming introduce help in attract to our of also, stronger audience. And live them products. live streaming. live give I help as try offering, will And those the a those for doing with some so, Blued more content -- the try stickiness to because to the them we to increase the live more earlier, well-known streamer to the product for

we our be the nature able months. improve So, the think due of this that few will over business users live to to stream next we

Laura Champine

it. Got you. Thank

Operator

you. Thank

Capital Our Zacks from Moore question go next Please the Tim is of Research. of line ahead. Small

Tim Moore

thank Yes, you.

mentioned that us press I out open maybe heer. awareness he And know of been males, up just mentioned and provide building that how progress with Mr. Your on there. it you you're on all kind also, you're more color if to And release maybe six all details and how getting men? to launched you can it going wondering for products I Health. was have

Chung-Chieh Ying

we within the Blued quite always Right Okay. within the increase a of app now, the marketing awareness awareness mainly brand activities the increased We -- of products. brand. planning few actually are to

the to the also online open to products. the third-party plan We have sell store

outside revenue. Blued in think the mid near-term, the customers be try than of our significant enough [Ph] But will to from the I sales in products sell more through app will the long-term, the we to customers the [other] Blued to users. to generate

Tim Moore

Good, good.

your had The million, question you do Do something or your capitalization. you to cash, net market plans acquisitions more with reinvest it the I like anything? XX% your $XX are equivalent to of that have was plans or other do spend it's looks of what any have

Chung-Chieh Ying

still We core focus business. on our

quite and positions, for purpose the other for the other operations. new at brand, next and least is we just cash we for next operations cash business, cash Health mentioned earlier, He we we enough years, our need -- business, for although For our the it won't core the we the than expand the three as because, to use launched have our

for will our So, for cash that used position, core business. be mainly our

Tim Moore

maybe features are of -- to anything or more would stream, that you. you offering benefits I'm that lastly, are are make if besides you new really streamer, competitive you think just more Great, some live adding live in thank space the is you against some going there experienced the that's differentiated. any peers there higher of And revenue the training wondering shares? that that make less to in putting you're there

Chung-Chieh Ying

example the pay PK the then among the pipe that to try a service, pay to example One and service buy the for users streamers, live the features to attract for one, we have related some [indiscernible] more discount if is to that the user the is for to first features, some like services. for might streaming that live time

Tim Moore

that And is it for you. thank questions. Great, my

Operator

you. Thank

Group Our go [Ph] next Please Yu] of is Incorporated. the ahead. question [Ethan First from line Choice of

Unidentified Analyst

and first under the are sales company's He what good QX. translate I continuously year? next improve to in that follow-up I Thank will taking my it? initiatives you. [Foreign was the Thanks in the to strong QX, is the gross my plan for Health later, for is launched also and brand And What contribution of quickly from have second a you growth for Health myself, the would company's doing newly question He regarding Language] expectation be pressure you Hi, evening. is my question. thank your question sales for expectations year, next margin

Chung-Chieh Ying

[Foreign Language] Okay.

improvement margin, of and better increase what together better the the will the are first our of example, the expect the is we from membership high revenue margins to related structures, that we [indiscernible]. revenue with do trying That business, first is For we health business the services the to point. contributions for be

The our overseas business, second expense also we for point that implement the is control.

nearly basis, down quarters. few sequential earlier, expenses we advertising a do we on the the mentioned so to will As over next was promotional and XX% continue and

much see year will especially a operating second. better you in So, that's efficiency, XXXX,

The improve of third we especially related are is pretty also bandwidth and that we to to tech. high the some point try the benefits tax one-off. will to expenses But related technology much our expenses related already the see

So, going tech see forward saving especially we expense next better a area. will year, in the

these, we that, with business. have consumer quite OEM got already and plan [OP] well. Health's [Ph] to the probably so-called as think prior print all already a margin we when So, started Language] we business, will business, We better [indiscernible] we a do a time spec XXXX. of in business lot [Foreign better Okay, He the OP the margins have meaning

you see Health's business He step-by-step, can So, actually developing stage-by-stages. was

for first stage receive you'll So, online medication business. the

from kinds -- very we these Mr. brand and well, know stage of consumer we heer launched a second for Mr. there strong we that needs heer products. brands, reason our heer launched we that, is the Mr. that, users' our be users demand will The and know consumer the consumer

during initial So, six brand the the that's to Mr. brand. stage, decided we products. why has heer's And the launch

from you have the a users. product that For expand [Foreign as we growth related will see the structures. He membership next product the strong Health's future Mr. get see strong in business the of should think to health revenue second will a also we that from already Language] we a popularity with that Okay, found contribution heer, growth quite business -- and because have the significant business sales sales heer better our try very We among stage this good year, Mr. to line

positioned now, margins as ourselves although but see are We live right company. streaming revenue not better also live the And to we biggest the is the expect streaming in future. basis -- contributor,

business features be to try with as will for develop able see business, reliable structures, mentioned develop revenue So, to we will in streaming try earlier, the year XXXX, to we we business. much because -- I along to will our will will better try business. probably even some develop And more live live more ecommerce we the you streaming related

So, we area considering. that are is one

our changed. which we been are has lifetime are to lifetime you. users, mission provide a So, offer the [Foreign company the of to dedicated still Language] follow-up. the I circle service have you. Thank Thank this to not

global in with metric. market please overseas MAU for period color more strategies for you performance business overseas you. revenue Okay, the or all million Thank of may of the Regarding share your terms a update RMBX.X change you last almost as million, RMBX.XX would the on MAU market Any total was overseas and overseas million expansion? in year. RMBX it's Language] versus [Foreign our same business, your

MAU business So, from XX.X% versus contributions XX.X% year-on-year. third overseas this growth same the release, in the year for in our also year-on-year And the XX.X%, was can the last as year. for you the accounted for period quarter X.X% sales see

million if do was calculations sales RMBXX.X the period overseas the RMBXX roughly last year. versus So same million you revenue

XX%. year-on-year the was So, growth sales

the control. already up our can grow third and the continue quarter in business as even our So, we that implement year, you expense cost to measures this to overseas see some

we our control one, the the do control bring and more transformed will on Show streaming is next cost is called social We in overseas the business probably streaming So, as this more future for That this try to more first far the now Talent monetization sales oriented business the the measures concerned the for will and expense in oriented. be for business, that called right especially our measures way overseas, future we because live so is year. cost try our live will is measures to business. business growth the to one what and will we that our overseas enhance for is will in and will organic as believe for the overseas will second And MAU revenue implement to strategy we network overseas continue growth. so rely

internal -- next total [Foreign maybe information become our MAU So, Language] so have business MAU, that this at significant year is [indiscernible] concerned overseas a our accounted to MAU, for try profitable part of MAU overseas overseas is target for Another meaning target to additional of business. business to XX.X% already very business here. for

Unidentified Analyst

Great, I no you. have more Thank questions.

Operator

and Ladies of have you. Thank we the session. gentlemen, our question-and-answer reached end now

back I'd like the the to Now hand to conference management for closing continue. remarks. Please

Junchen Sun

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

Operator

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

disconnect. all now You

BlueCity (BLCT) 26 Nov 212021 Q3 Earnings call transcript