Q4 2019 Earnings Call
We will report.
First quarter fiscal year 2019 financial results.
All participants and listen only mode. After the speakers presentation. There will be a question answer session to ask question. During the session you will need to press star one on each of the phone I would now like turn the conference with your first speaker today.
[music].
Thank you operator, welcome to lead with what's important and physical you couldn't be Nike earnings Conference call. Joining me today, Oh Chin of the board tells Charles.
The old coffee Wong.
Scenic Seattle, Bonnie jobs, and I'll be finally said into the castle feet.
These conference calls or they'll be buckets on the internet and it's a beautiful sleep with IR website.
Before the election remarks, I'd like to reach even a C C public feeling in connection with today's conference call. During today's call. We didn't make forward looking statement.
And that allowed historical facts, including statements about beliefs expectations.
Forward looking statement involved heavily and also can teach a nimble important factors could cause actual results could differ materially from those contain forward looking statements.
People assumes no obligation to update forward looking statement and is cool and elsewhere.
Further information regarding these and other risks, including we'd like to report on form 20-F, and all this vital twist I see.
Oh, the information provided in today's press release, a cooling I still studied Hugo.
We don't see you'll probably be should I be such information, except as required under applicable law.
Additionally, I like to remind you got all the spectrum they inclusive no good measure, which could smoke based competition so to other expenses.
We use non-GAAP financial measure to be a better understanding of fleet, but how would you be consuming and the future post that.
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Losses, and all the items that does not expect people we value in future cash payments were notably clearly in nature would not be people pull up we can be dealt and all that.
We flew to all the high speeds for more information about and they'll get measure.
No. He mentioned prepared remarks, well open the lines what Weve acuity session was good I love to clinical over 12 tea and coffee wall.
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Thank you Hello, everyone welcome to wave, which was quoted 20 Nike on these conference calls since it has always what were jumping out Kenyans you're told people do you.
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On today's call I will share with you highlighted with Houston product and monetization.
The progress we've made in 20, Nike and they all disgusted heap of Twentytwenty she'll be more surgical Oh gosh, you Sonys. When you answered you do they bought the ones who would not do you mean union jump the buttons and he believes will jump lead them to.
Q1 going goes I know, it's not I knew you mean Indian Junkie Badness, then maybe jump we bought neat.
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Let me start we sell fourth quarter financial needs out in the fourth quarter total that at least the 468.1 million a decrease of 3% year over year or 2% on a constant currency basis.
The typing and Lucky revenue reached full husky and the 5.9 million a decrease of 3% you'll be as well one consent on a constant currency basis.
8% <unk> AD revenue came from mobile no GAAP net income for the fourth quarter.
Do 76.5 million, representing a net no getting that March and April.
I took that goose's toward each one inch union call people talking to each Ritchie and she imaging in the internal medicine meeting you also took away button cheap too. So I don't think imaging unions on there aren't that many people Angel. We've been steel cost was are you doing in China, hotelier and they'll do that since you email.
Oh, TV Dot Goldman Sachs.
So well Eutwenty nights with total revenue reached 1.77 billion ox, we present, you'll get were 7% or constant currency basis.
The tightening and marketing revenue was 1.53 billion up 2% yield yeah were 6% on constant currency basis non-GAAP net income reached six countries density 7.5 million, representing now gotten that margin of 36%. So you will come in you seem to do more immediately liquid I know whatever you do we need.
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Oh it used to from with any you Beach, the 560 million in December 20, Nike <unk> up 12% yield.
Presenting on that that mission of approximately 54 million to use the year over year advocacy use reached 292 million up 11% human you representing a recognition of approximately 22 meals.
Maybe 4% or with any you came from mobile.
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We took the season that to drive both uses deal I think each month.
What's your thoughts on extension instead of still difficulty I'll use the skill well executed against these taught at an El Palito initiative, you were talking Nike, we deliver significant improvement this acquisition efficiency and engagement magic compared with a tiny tiny 18 on top of installed it used to gross.
Nice growth in goes nimble and use the who will be fresh.
Corresponding beat their total feeds me freshman. Meanwhile, we kept all product evaluation cobot about multiple areas since December tiny Nike, we successfully launched the overseas pot, which demonstrated a good momentum both user engagement Scott recently.
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Your final teaching you ending July 19, Duma Jani Leabo telephone I firmly believe me she came out to you what could easily either people, who each and work on the 20 body.
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Thank you for Chichi to me I know you cannot show them you Josh anytime you know kind of I wont show [laughter]. So you should I will give CPM people each when you're talking about India, who didn't comment.
John I wish I got you know your time do you want me Centregreen Sheila you aren't hernia, what was the 21 of the Sue.
I was in line conditions on Sunday, Nike worth a try to can you fill us in anyway [laughter], Tim So called KBC, we will continue to de lever up double digits.
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The fleets that Oh Fool, you <unk> revenues grew 4%.
Given the hyper competitive performance at market.
<unk> Smokies sees a constant demand, resulting from the macro exactly like the lately have understood your pad at him into supply.
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Wait for even though we substantially grew available at <unk> human suites, we could run pops in traffic leave that <unk> agency entity structure, and beef up actually pooping offerings, and performing we would not immune to such supply over the mid market dynamics.
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You know each of people you want to that feeling you sounded she can you he will do to document that somebody bought.
Yeah, sometimes.
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She was able to Tony you send me [laughter] feature that people are there should be in reality, we couldn't come with Apollo triggered immediate keeping the illusion to come true tuning in touch on the PC should be name change from quarter to Chicago.
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On the east grossing user engagement and December meeting close to see out equal in terms of net addition of you said you you the past the grossing up has to be quarters, Oh Seaton patients continue to deliver double digit growth as well maybe I'll start station, we attributed to the Milbus gross user traffic to students just me.
Lucky and solid execution in Tennessee, Besson products and the video called offering last year.
First on channel thesis Dollarstwenty, 19th we adjust each had an investment strategy has always relevant part of an operating efforts to focused on enhancing disengagement mitre doubting highs this acquisition efficiency with disciplined sales and marketing spend.
Second I'm proud of the operation, we focus on part of optimization to input touched on confident consumption and social interaction feature to said 85 week was cool competitive edge, which contribute to real this will be the scale engagement 20 Nike.
I'll be do we assess the leap was completed adding he do market [laughter], who must focus on PTC me too often on top of out of entity immediate and Hutchence verticals, which further I was just the times debt instrument on me two comp.
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[noise] content investment Im talking Nike, we stress alcohol patient with domestic pension manufacture listen hot application called to.
Including hockey plants in the high quality content offering an optimized content consumption Stephens two meaningful but actually leads out Oh I used to acquisition pieces that was largely improved and Meanwhile, our used to be tissue be has increased as well as we highlighted at Pos feature loss here.
Hi, good interesting job well done and Union, Tony Anthony when it's having a woman team, which I'm not talking to those who value.
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Opportunity when we shall be and be more sure. Tom Yes, you would it was Oh 20, we don't control group interim heated and cool she lucky between the with sometime toward that Union, it's almost family to whom the town. She didn't do meet Sharia chosen anyway, I mean, when do we want so you end up any engine tuned out make sure.
How are we looking that some people agreement.
Oh, you support up to promote how can discovery and discussions we've had been function of hostage jump on topic products me talking Nike leasing up weight of the ultra lead them to promote Comping Scotia and he has seen a piece allow these to be products to be specific they all three areas of improvement.
Obviously, we trust for what he has topic distribution of vertical hot topics to the how search second quick Penn hostility consumption to how trends heat and stood to aggregate discussion of how do you get the topic Tata.
These me then enable easier access to hot topics and discussion. These out a notable increase in cotton cost assumptions used the times debt as well as easy tension and Meanwhile, we also motivated top content creators to generally professional Qantas a real hot topic, so traffic support I've got new ship at <unk>.
<unk>, which helps we had distribution of halt how Chen Kangping and usually has a competitive edge in December and they use and he who use at least one of the pot of a mouse search Chen and topic grew double digit yield for you as the past, although gross openness to scale.
Well then doing into maybe should meet you told my conviction <unk> people kind of building.
Those who we were talking about Tony you mentioned one.
Well, we listen to the gym since solutions at the end. She she sits on you shouldn't see from what you mean collection town.
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No no increase so you don't keep Swedish antuna sunken looking then at the meeting will be but you can situation. She can live with <unk>.
Moving onto social features into the Nike whittling for social actually be it all comes the products such as Super topic, I'm sensitive and apply this product to more verticals across platform with an increasing number of top called iquitos participating teams to good Hopkins, Jessica we supposed Jason interesting the social we believe.
[laughter] between top called nuclear hooked on the effect as well as we've moved against good.
By now almost Oh celebrities, we bought happy it also put topics.
Adoption of these a super topic incensed good product a mild big also pick up rapidly.
Efforts, we evolved community pardon me the label to benefit from the close of the overall self media market by empowering more self media attached Oh, Okay. That's good because slippage white label user engagement.
So do you do one center should be shows you the nutrition Chinchilla BTD become pins are there should be to Taiwan. That's what you mean, when you food you show, Chile, the Philippines, shellfish and shrimp Sharia she'll be treated <unk> I mean, I'm not too many sanction should come there should be shellfish you don't let me jump in so [laughter] me tell me sorry.
UGC should these young Junichi engine as you watch out when they union tuned into usually if you know two didn't show you probably don't show each yet she believes should be no can you go down sharply.
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She's who did you couldn't any into new [laughter] Jewel Formula One day Union, Tony autonomy and incremental future beautiful known flu not meet the young who don't foodservice <unk> shooting mediamission treating your tavi trouble well do not able to triple anymore. She can lead would actually pushing on the Tony.
Moving onto reading all the way I hadn't even this quarter, we optimize calling an awfully mechanism, we de Vito community and recommended Peter make contracts when usage based on their use of frequency as a result, both uses we visit second seat and high stat, we seem to tap fully for the improved.
December he used to consume vertical PTC videoconference increased about 7% and be a constant on video content increased 40% all quarter over quarter basis.
The other head to maybe some challenges in the UGC video market. We further improve all recommendation algorithm and optimize use the into vaccine Stephens. What you do see meetings, which facilitates social relationship Buda UGC video consumption in December city, social interaction, we've seen really CBD comp.
He was 45% <unk>, we sit daily social relationships established nearly 60% he'll begin moving onto like Phoenix, we encourage content creator, including media Ali celebrities and vertical content creators to like Boston, we bought by providing improved operating on topic support [noise] aiming to.
Yes, the scale of live streaming content.
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Those who don't see Sean type he told me when compared to later it will be shipping we shouldn't that she should open up you know you leave it I mean, we sometimes you don't.
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<unk> told me, Josh I'm pleased with US we don't wish him pushing it again, though she's only when do.
Yes. He is what I'm really talking what I would show what do you probably want to do them comedy BT, Josh <unk>, you'll see them to the children.
Sofia eat you mean shot it'll put them in problems. They didn't solutions, yeah, well machines done shown up within two or don't don't really it is actually quite cautious we don't where you could argue green will contribute to me to do you want somebody doesn't mean, we're going to me.
We didn't show, but maybe we should see country don't even though I felt bother me anymore. So you won't see [laughter] Lastly, let me talk about the progress we made a whole leases out initial thoughts for incubating always good to be intrastate, the social problems for lifestyle related she having either form of soda actually deal which is a compliment.
Which weighed Wisconsin's consistent it's important that we haven't that unusual purpose along the side of the product development and operations, we started to internally better ties to Oasis in September and officially released a part of December last year. After Oasis the Fisher lots on the Red hat.
The other to existing when I went back to come though that he shouldn't you wait weakness.
Well I think its conversion leave with you said to alleviate driving you suppose engagement on the other had we still see social interactive features and that's my diesel engine based interest I'll always it.
You said retention.
Two weeks out [laughter] generally I mean, you always see exceeded 10 million and the proportion of big who generally hold its always grew nicely as well as well compared with last month entry into February the Kona wives. Oprah has uses willingness to oppose always it I mean, it wasn't <unk> down to some market activity.
Accordingly, which is 10th we measure to respond to the academic.
Well, what we will continue to focus on used to close engagement Haitian politically finding out and generation functionality you reach multimedia content consumption format and investment in channels was higher I'll I'll just acquisition.
Our Union says I mean really equal news I don't mean to legal framework.
He should Arnaud John I'm glad you're done with.
There's no real time, you got the Chicago was shown Sheila. Thank you for whom you could also shown young juge I'm going to be able to June being so much easier to really medium, meaning the show on the marine some keeps you can lead more they really nishu thing that you don't need to do it would actually on a cone shoot.
Yeah, Let me tell me if we can you actually don't treaty piece, we should be million due to easier should be corner shopping yes, you will not be shadow quickly pay as you would I be able to shellfish should be something should push.
I don't even within the core yet [laughter], she's going to extending from time to the food that meet when something that's what you will know slippage in the meat teaches you truly comedian Amy whether or not.
Heading to tiny Kinsey Wilson the flow you chase engagement through the Philly initiatives for don't channel [laughter] put more cannot investment ethic, driving engagement and better align tests based loyalty program Weve such investments we have to use acquisition fishing.
That's it will reinforce all kinds of offering vertical location base to hottie debt as well as well celebrities lifestyle. Jason Weaver advantage has been selected verticals. This will further solidify we was competitive moat I'd indispensable position.
That's correct.
Oh, Okay for one thing will encourage PTC needle coke in generation for the whole, we don't wish libido common for another we'll focus on promoting consumption and Mike addition season for the vertical UGC video content.
Fiscal first are you happy to consume video content, a legal and thus driving usage engagement.
Lastly, we'll continue to support content created by providing that affects how many products and optimize monetization pool to empower self media to for the flow all possible.
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I mean today chalabi with the Tyvaso computer vision. She goes I'm you know you let me.
Let me briefly talk about I'll try to them traffic is doing to coordinate virus outbreak in China in the past Tomorrow, we will have to place a crucial real information distribution gosh, you know compatible so call. It a virus, representing all unique position and strong competitors mills as China's leading social media platforms.
Oh, you feel some traffic and times Oh, we significantly owing to all continues athletes on pot of uncommon optimization of hottie gun.
<unk> will continue we sell strategy to differentiate we bought for all the platform solidify lead with Nick.
Jason I'll core competitively.
So you want them yet [laughter] did you do you my boss, who he social you talk onto my suicide Duncan for me.
Who can you tell me about the deal are you doing internally I wouldn't be my when I wouldn't be true combat Michelle.
No. She went to Tony we don't want washed out pretty much [laughter], who don't want to soften book, that's when we do not [laughter] well know cool it too much you know anything documentary Okay. So you're going to leave marches area. So we believe we will.
Peter I could show the time to be don't mention the P., Michael who know me you told me you time [laughter] two each in one time does she has work she will not be within a few michaels coming shalgam shoot.
You do you Michael Quinley adoption Guardian sewage I'm quite sure so consider how in nickel boxers wouldn't do not do it certainly would she took Georgie city cool you signed so how you thought she was on a go to yaniv, they really appealing to Sunoco out quickly on me two couldn't meet you show that we should be shingle, who don't could you know cool used truck wouldn't leave something.
[noise] movie onto might have <unk> in the fourth quarter, Okay, I revenue decreased by 6%.
Mainly due to a cut back in potash production rather than from handset manufacturers full year 20, Nike <unk> grew 12% and getting to be took it despite of a deceleration intends to overall online advertising market social advertising and he's looking Wally she has some customers over the course, we watch.
You call my Muscat for many but at a high says well one thing we benefited solved the problem. So they used to use and traffic gross for another we had a great sales team providing come a comprehensive service to customers editing.
Well working seamlessly with product body coal operating team to tailor out at all.
Notably the London K customer here, that's a high enough was quoted apart from all traditionally strong sectors, such as FMCG I left field and Brett we managed to cap captured relatively steady at wallich from auto and has that nice manufacturing is by the topic rose receptive if they call on the policy issue.
[noise], we achieved was just because it didn't seem to be sector to the close functional collaboration between our constant operation I sales team, which helped mesh customers Matson, we some notes a suitable to navigate <unk> oh, well all the diverse calls.
So to the Oklahoma, who told me you to show, which I think when she's got into been lending me, who we shutdown that neat.
Entering into somebody who commit to buttons [laughter] to London, So long.
You know usually when you say hi, Jim let you go in high School Ji Zhang for Michael do you sense tweaking it sounds like a shot in the future.
Sure downtown Chicago, who need and putting it out to them John the other channel. He is a challenge with them each on children, who cushions I found that does show cooler social not pushing them to issue. They believe that went to also mentioned on Russia. The cool you somebody with a needle how do you consumed in the two kingdom change in that so it's almost a silly.
Sure well they union today that helps you too much on which I know when do you want Jonathan It's only she could you know me when can do you pool, So cool Sundeep Tina Tony fruit on do you don't do you talk a little.
[laughter] delinquent look somewhat time, you know dream team do you want you to its an uncle them more sure. We'll keep you talk.
She won't go mainly being somewhat call King Carter you wouldn't sometimes you see it pushes opinion, we wouldn't do to talk to she'd all you do.
Moving onto S and the estimate Pcs, so stabilized and chess pieces, 1% yield <unk>.
Well, you're talking Nike <unk> revenues grew 4% he didn't become.
Let's take a moment to review the [laughter] faced by the performance and watching a lot to heat.
Cool and regulation heavily and cyclical.
The lucky so deceleration.
Outside of at bucket from a couple of industry. The situation was wasn't quite dramatic search <unk> at humans, we supply which translated into happening on the pricing.
Consequently customers demand better performing service and they have more options to shop at route.
Instead situation, we've what's the lives of distribute it means less control over the budget migration of customers as compared with piece when you back sales model.
In light healthy this advantage, we revamped I'll go to go to market approach on the other way we've got the organized all agencies structure and be fine management batsmen to you you fight management, the son, who like new customer acquisition on the other head we put.
Together a team to two buckets of all top customers. In addition, we do find out at offering into these a couple of AD products.
Moving on optimizing CPX vertical video.
How can they targeting at and T., well have recommendation et cetera.
These measures have gradually taking effect stabilizing our SMB business to Arnie Arnie it, but usually so young who creemore could you maybe what you were shot we worry about the Tanya fund that do not competing <unk> you can copy and are willing to commit to who would you be telling them that shows which I hope you'll probably.
So anytime you shouldn't be willing opinion, though he is currently being shown.
Well of course, who's got a sentiment, but I'm going to be choose how well they both of whom I called it out but what are the two new user set Balkan politically that do not come true so not either it's only a highly doubleclick shingle T shirts alondra to coming towards the.
They are going and she can leave with a show we're gonna go deal with it so you do need.
I mean, because she also sent me Bill how are you could go to unless you're going to book cheating Codell well my to do they thought cool wouldn't normally.
Oh sure to Tony how are you could tooling, who do you all she.
In some of them gene pool that we social futon, Dick what would that.
We will show them from the we don't being though he told me what I want you show up.
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Heading into Twentytwenty on top of platforms. They shouldn't you suppose we also put emphasis on increasing monetizable user base and traffic. Meanwhile, we've stepped up all ethic <unk> work and I think Oh sales force and optimizing at products aiming to improve <unk>, Mike had they shouldn't capability and fishing.
So what chip this call will execute against that so those three perspective.
We will keep reinforcing our unique value proposition in a blend of pricing market. So as to secure budget rose from top tier customers like I spent some moved here customer and a further penetrate into I'll have to customer base.
Second we are focused on enhancing our competitive in the performance at market, particularly the continue leverage the synergy I'm all products all patient on sales team for better be child, and the top customers as well as he has to overall customer satisfaction I'll add performance. Meanwhile, Oh so.
No. This team an agency they'll collectively put forward market adaptation about I'll be for and she the AD playbook as opposed to pure traffic based the monetization starting from a key industries like gaining a education and E commerce et cetera, and that's a Canadian customers.
Lastly, we will carry on execution of Blasia initiative. This emissions made include to drive the overall might have they shouldn't efficiency across all platforms to product optimization to acquire higher performance at budget do better service facilities and deepen synergy between those on a constant operation team.
Towards future tour <unk> shots, you leave what their shying away from the June So you shouldn't be book or the tissue. When you do not are you happy I shouldn't change.
<unk>, who would be on Halloween.
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So would you choose to.
If you look I'm sure that for me junk you couldn't you could argue to when we meet you when do you seem to really show Beach, usually you should know didn't go too.
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<unk>, we were told them populous leading should only because she does so each entre sometimes you don't even though you really cheap she comes from Allergan and believe that you.
Cool. So you leave literally all time more what do you who you told you should be able to couldn't go to [laughter] human lead you to achieve what she didn't want to be even though we should all you're going to depend on the feed them now that you too.
We believe slowly Oh, well execution healthy adult initiative.
So they're shopping with competitive action on the monetization Sop and thus achieving sustainable revenue flows in future. That's sad if they generally the epidemic has significantly I'll add revenue gross doubling from that generally and sadly, although savvy several online sectors, such as gaming and all that.
Occasion delever good momentum.
But many offline candidly I E com, except for when that could affect it.
Consequently, we still many customer came so were postponed the accounting class.
Good.
On the coast situation I'll take that impact might continue into the second quarter given the current situation.
Even the given the evolving situation of the epidemic, we closely monitor impact call business and communicate with mochi autonomy Madness. However, if we seek to the short term impact I look had a problem no longer than June the operator, we'd like demonstrated an indispensable value as a chinas, leading social media platform.
And to further strengthen our competitive mode. We said when popping topic on the monetization South we believe our the types of will also have a better vaccinations and extending lead with me stress social distribution interaction boding well for the includes all monetization capability and the capture highest social at Wal <unk>.
In future Jude I know, it's on the topic just how do you sense you lose how would you.
With that then they tend to go over two feet held for financially.
Thank you don't say and Hello, everyone.
Welcome to leave with fourth quarter, and the fiscal year Tendinitis <unk> earnings Conference call.
Sorry, refute the magic.
In December Sunday night.
We was any news just the 500 and the 16 meeting.
If it's actually a net addition of 54 meta yours or a year over year basis.
We would attribute it to 222 million representing a night vision of 22 me, they use or a year over year basis.
Mobile I mean, you represented approximately 94% of total I mean, there's some girls was primarily driven by continued put out an improvement and the content optimization along with the effective channel you last month, we made the during the year.
Turning to financials.
As a reminder, my prepared remarks, what folks on non-GAAP result, an old comprises on a year over year basis I like otherwise noted no. Let me walk he'll do our financial highlights for the fourth quarter fiscal year and he license.
We would fourth quarter tiny making that revenue were 468 one's been made it a decrease of 3% Oh, 2% constant currency basis.
Operating income what's behind that a six 8.9 meeting if it does help create the margin of 36%.
Net income attributable to label you asked about 176.5 million, representing a nice margin of 38% diluted EPS was 77 cents.
For full year times, you like it.
Total revenue reached the 177 beat it I increase of 3%, Oh, 7% constant currency basis.
Operating income was 606 2.2 million at the senior level compared to 28 kids I live events outbreak in margin of 37%.
Net income attributable to retool, the 637 million I increase of 2% never done here like margin of 36% at a similar level compared to 28 kids.
Diluted EPS was $278 compared to 2.7 $3 in 28 kids.
Let me give you book Hurler, our fourth quarter and the full year time, he Nike revenue growth.
Advertising and the MCU revenue for the fourth quarter 20, like is well 405.9 million a decrease of 3% although of course sun on how currency basis.
Mobile AD revenue, because 356.7 million I increase of 2%, representing 8% to 8% of our total AD revenue up from 84% last year.
Full year tiny lighting advertising on the my revenue, which the ones 153 billion, an increase of 2% Oh, 6% on constant currency basis.
Mobile AD revenue contributed 87% of told the AD revenue up from 83% <unk> 28 kids.
Let's start with Hey, you know the fourth quarter Archie AD revenue well, that's kinda Nike 1.6 meeting.
Decreased a 11% Oh, 6% on constant currency basis about reason, but glad he ran it wouldn't be sending trend outside her track record revenue with.
Many resulted from caught that no matter, how does that shipment in the fourth quarter unless trying to you last month activities from our end.
Negatively impacted the K AD revenue growth by approximately 6%.
Yes, that's true why the continued study both from as I'm thinking sector and luxury breast aspirator was offset by downward pressure from the entertainment sector.
Mitch has faced the regulation highlighted.
So here I mean, I think he had revenue, which the 729.3 million I increase of 8% or 12% on constant currency. They.
Representing 48% of LIBOR total ad revenue.
As we reviewed over performance, Okay AD business and when he Nike battling it they saw the the birth de lever to from the case sector. These bad macro economy, the core slowdown and industry competition.
Yes, the girls from our user community based on our differentiated value proposition to T Advertiser.
Yes, the solidly booked in the meantime.
Okay is that correct.
There, particularly quite lists all go from FMCG category, especially cosmetics and the personal cat food and beverage and luxury brand as well as steady growth from ultimately decide a macro slowdown and that's true challenging.
That's what I hope, you'll stronger bond mislead brand advertisers I think is supposed to both social Mckee handler to drive their Brady and the pro Formas monkey and maximize their content our I.
Conflicts that Lisa let these girls Oh, even downward trend from I've heard him and he turned out to survey and how does that sector.
As regulation I knew that she had this continued to weigh on the growth of lease sector.
And then to their marketing activities.
Turning to the public Monday.
Continue to eat rice at market opportunities that adds branded digitalization consumption I played and Fiveg technology developments to drive increasing value for our customers and the Panera and attempt here how do you share of digital advertising BARDA in China.
Despite the strong per well actively impacted from the bar Jay to cut back from Advertiser, what's businesses have been disrupt it fully the burn a virus outbreak in China.
Turning to act I need in first quarter Sleepless nights any AD revenue was 976 on formula.
Two quick up 2%, although of course on a constant currency basis.
Oh, Yes, I mean AD revenue was 703.2 million a decreased 11%.
Hey, Chris a corporate center, a constant currency basis.
But then how approximately 46% a baseball total ad revenue.
The stabilization of the SMB athletes and asking Clintonite here, it's a mix agrees out from unfair about the month supply dynamics of the poor from an AD market I'm already needed here to navigate a store market. The challenges we plan he likes it.
That's what I'm going to Twentytwenty they'll continue to make our airport. He has the AD performance optimizing sales channel and incentive tragedy, differentiating and standardizing our social add a poor dock to they tend to be in customer you saw appealed against you.
Their money tied to vertical and attract new customers to the platform.
Nevertheless, I sort of hit from the <unk> second event.
At the corner virus outbreak and the market. The competition, we continue to weigh on growth from the F and from I need business segment plenty plenty.
I had revenues from I bought a in the fourth quarter.
37.9 billion, an increase of 20%.
The last rebound of AD revenue from Alibaba from prior quarter reflects our strong corporation lift the ecommerce tend to drive value for your platform and the Pilar duly E commerce promotional season.
So your AD revenues from Alibaba when that is 7.8 million a decrease of 17% Oh, 13% on constant currency basis.
That I'd to surveys that revenue was six 2.2 million in fourth quarter, a decrease of 4% full year 20 like is bad revenues were 236.7 meta I increase of 8% OPKO christened a husband price they.
Mainly attributable to incremental revenue do you have the from last three new business acquired in the fourth quarter of 28 kids.
Turning to cause I cited total costs I suppose it but fourth quarter were 200, that's 9.2 million I mean quick 1% full year costs I suppose it totaled the one fund 1 billion compared to one plan Oh 6 million for 28.
Oh, we didn't hop in the fourth quarter, well that I've been six eight fun 9 million a decrease of never Sun, representing an operating margin of 36% compared to a certain that person last year.
Operating income for full year on United Kingdom was 600 to seek to fine tune. It at a similar level compared to 20 agent and the represent the operating margin of 37% compared to 39% 98 Kim.
Turning to income tax I looked at magar income taxes, but for the fourth quarter was 31.1 million compared to 14.9 me last year.
Not to their tubular, though to the higher before tax targets recognized from fair value change of investment and 29 Kim.
So your income taxes Sun well, that's kinda night on 6 million compared to like me to fund to Atlanta.
Net income attributable to read walk in the fourth quarter was 176 on me there compared to 183.6 made last year.
That's margin was 38% at a similar level compared with last year.
Net income for full year 20, Nike Inc. was 2% to 637.5 million there, but then had nice margin of 36% at similar level compared with last year.
Turning to our balance sheet and the classical I am I thought December 30 for us and your nicely. We've was cash cash equivalents uninsured gummy vitamins totaled the two upon what the that compared to one find a student as of December 34 times agent.
The increase was primarily due to the knife policies from 800, either senior notes.
Hi, good into like when he Nike and for general corporate purposes, I know, it's partially offset by the investment activity. They made a doing quite nicely.
The fourth quarter tax provided about all quick activities was 253 point Twomillion pepper executor totaled the fixed on fascinating and education and what type issues. Both it amounted to six once I see them Oh. Your basic has provided the outbreak activity sixsix hundred certain one time steadily.
Capital expenditures totaled 21.7 million and education, and then what did that in defense. It amounted to 25.8 million, we delivered approximately 610 million free cash flow in content, Nike I increase of 33% year over year, representing our capability of delivering high profitability.
And the January just don't operation cash flow.
Before they turned to our financial Aldo.
Let me talk briefly about when a virus outbreak.
On behalf of our company I would love to pray for those individuals and families who are deeply impacted but we're in a virus outbreak and pay tribute to those who flight I just want less public health and life saving.
He responds to leave exactly at then wait ultimate Sina how to establish our on be behind that immediate special purpose bond to aid frontline Medco stop.
I missed contribution of lunch will then provide type basis from public at the later and our company.
Oh, so long to programs to suppose El Pilar and customers such as and see it tightening create the AD revenue share racial and the subsidizing AD inventories and the platform resources to the if they're short term operational pride or from a dynamic.
Lastly, let's talk about our financial all those.
I expected run a virus outbreak, he's having negative impact our economy and post near tended to be beneath it across the board.
Wait like other companies a lot Emily to live challenge and not making <unk> for us to navigate through it afterwards situation.
Due to the high uncertainty of the Newbuilding situation, we had limited visibility on the bulk with her around the impact rung upon that Fannie.
Based on current the best assessment of the potential effects from that then.
We anticipate our first quarter of Twentytwenty revenue to decrease by 15%, 20% year over year on constant currency basis.
We are closely monitored and voting situation and that says its impact on business on the ongoing basis, an update the market. If there is any material change.
Before cost also reflect both current and preliminary view and is subject to change.
With that let me now turn to core to the all over to the operators, but it's I live nation.
[noise], ladies and gentlemen.
[noise] [noise] you wish to Austria.
The star one on a telephone keypad and wait feed named Vietnam.
Mr. Cancel your request just respond or how sticky.
First question comes from the line of all those yup from Citigroup. Please go ahead.
Hi, I'm good evening management, Thanks for taking my questions and B shares when safe and healthy Oh. My question is given label traffic actually being positively Banda fitting from the increased use of time span and also the P. man.
On getting the latest advice information so, but then the <unk> at such a remained soft in the first quarter, a which is understandable do you think the positive user traffic quotes half a longer time fine effect that could help way for retain appetite, but just a at okay.
I have my share a perhaps translate to higher electric share in the second half off the sheer or even into the 2021.
And in relation to that given the strong demand for playing games I'm doing this period I wonder whether we will have scheme back some of the AD dollars from the on I gaming companies in the first quarter Oh, what did he finally got plenty to like I'll hop seeping into what did you learn through <unk>.
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Josh I'm told for the something sound structural Hugo guidance should be town hall on a whole attaching treated for the you sort of trends on she should.
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Let me share some color I'll leave with traffic growth and to me try but to the uptick.
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I'm doing the epidemic, we sold over scorching live with traffic and at least the total number see refreshment and crashing doubling it even though you know spring.
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Total eating food and feed refresh my impression to over 50%.
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<unk> she went to talk in either compute.
So let's traffic both doing the added any was attributable to the natural advantage, we hope as Chinas, leading social media platforms. The ocean. We'd football teams just quickly response, we're launching a related functionality such as the colada vivus specific sub eat and the super topics.
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Thank you.
Turning the corner virus outbreak Oh strategic focus to highlight weightless value at the social media has been validated June June they doing this pivot into fight against the epidemic. We bought demonstrated unique value information dissemination and discussion among media all its professional he will.
In general public to be specific we will enable to widen dissemination of official information for media and the government bought professional opinion discussion to the public and more importantly help general public to seek quicker response from government agencies.
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Moving onto lung tissue funk, you need to the epidemic weighing on the overall economy and resulting in nationwide business disruption. The 50 <unk> business out of the type of demand and promotion activity or a significant impacted asked me about several customer have cancel a post when they're competing with.
In process the near term noble traffic flows cannot be come voted for the buckets into I spend that's that no longer term due to robust <unk>. It was Orbitz Trophy Oh, the upside not updating the tropic leased only for patients to stay the way, but competitive mode and gain recognition.
From the from the <unk> customers.
We will tell you love communism's on weakened all you're telling me she though that you will see how here say easy to the board <unk> to two you know markedly was you Cook, we got everybody me the pool.
Too easy to do 10 out of your that she own kinda usually argued you send that some gosh on border can be it will find me. It I thought it was how about the by the time.
So little choppy gross and use the baby fishing for some condom boastful could enhance the ability to capture Wally from a corresponding industries, taking the gaming industry. As an example quarterly we saw a nice gross I spent some are gaining customer on both an annual and quarterly basis then if.
Moving from better working.
Advertising demand.
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So even though you we'd probably would should not happen trunnions somebody or how would that made it turns out yet but do not some good show you how here have able you cheetos, but not hold on that front.
The real but tropic tooling to epidemic also bought I bought back a lot of Oh uses such as those used to bring the 1917th and 18th and that helped to improve our use of interest that you know in education sector.
We sold a solid revenue growth for both the brand and perform attack from Atish HYSYS apart from the upside but from well that traffic that you couldn't be Douglas also attributable to significant used to close in adaptation vertical boding well for us to for the capture a dollar from attic adaptation industry you phone call me Okay.
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What are the two quick people shouldn't housing shortage and went public with <unk>.
And we'll change she could you talk to other young age and commercial.
<unk> Oh it shows you the here yeah, that's even a cold here, but until we the easy to urge you to see what you're seeing athletes usually you all of their sevena, you've got going about I go to cool Cushings you Shoppable acuity.
HM benefiting from a traffic flow through an epidemic and also because oh, we compete with the swaps the offline lucky activities, we witnessed a very positive a check for <unk>, but a shift from offline to online. We have also taking the opportunity to launch new AD product to better.
For feel out of a Tyson increasing the meant and also to launched Realty product to a two study if it to fulfill this demand clearly also and handset manufacturer have already a try these products I. We also see opportunity FMCG I love that you would address a too.
Due to a two to try these caught up with us and which may benefit our at about the news in the second half.
So do you I kind of I've been cheap you seem to be able to probably looks we don't meet people could should that it's really jucker, but whether that you choose who you're able to actually go try more hopeful don't use all the user you'll know can go into a good consumer need you to women gene, which usually the pension, though he who should the other yourself, we look into all the chief.
If we see seemed to show them inputs and loop head or possibly Ivanka Trump chewing up like legal has demonstrated indispensible value at the tightest, leading social media platform and further strengthen our competitive mode. We said when popping Tropic Oh My God. They should Soc, we believe there with high. So we'll also have a better understanding of sleep with unique strength in social.
So distribution and introduction, which bodes well for us so for the improved monetization capability and capture higher so should I want to shift fought.
<unk>.
Thank you [noise].
Thank you.
[noise] next question comes from the line.
[noise] from Jefferies.
Hi, I bring this money Truman for taking my questions everyone would help.
My question about.
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About marketing and [noise].
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Diminishing the prepared remark, we started internal a beta test a pot of in September and official launch the part of December last year since the very beginning Oh, we said that demonstrate these unique value proposition <unk> offering and supplemental Waitlist company Eco system now Beach Weve was traffic disruption of Evanta operation.
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We'll push it back in the U.S I need to you as long tail vertical pay wells, which match well with <unk> initial purpose of launching this product.
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The most you unless you can say you shoot you can you talk to you as a whole femtocell meal to one being much more in China, you would Pablo Ducci wanting to move quickly two years, which industries.
Thank you into a cap a used attention has been shifted to the evolving of the core the virus outbreak and they Aptito has also been pretty limited due to the.
No chest, you'll go go out for travel, which have a student impact I'll use his willingness to share and post conference I always say well over at the epidemic period is now the best best at needle to promote the product we have suspended pato Pall mall tenant activity of quarterly however, we will take the opportunity to further optimize that use of potash.
And we see on promotion opted to operate iced over an acceptable uses to <unk> Boise based on the recent user traffic, we cede a similar level of they used to tropical Oh voices.
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Ill now see when they went a little due to time, meaning that you would have found quick where do before.
After the upper Seventys overtime will reduce the lucky activity. So we always his product and for all 2020 product content strategy footing college lifestyle related content offering and distribution with a specific emphasis on vertical that a suitable for expression. So high quality picture and she will reduce such as photography.
Oh session food and travel verticals and just.
I used to somebody's vertical generally show better engagement in terms of content generation consumption and social interaction.
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Yes, you do more to change that we valued on imaging product or what are they don't.
No because they're selling into college.
For the monetization.
Oh I, usually talk we spent a few pledged show interest in promoting always team and they they also might be some self media promotion always this as well and the but he will not be the first quarter fiscal at least for the quarter. We're early early second quarter for the month <unk> vision to take place.
[noise] chip.
Thank you.
Yes, it [noise].
[laughter].
Thank you next question comes from the line of Gregory's all from Barclays. Please go ahead.
Oh, Hi measurements on <unk> question I personally shoes.
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Josh.
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Kind of started from boasts the human tree supply on a merchant demand.
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But religion and Sheila.
<unk> teaching tuition to change or do you have an issue I kind of you used to own she that came I won't call bullish on children on Houston, I Kinda I I sure, but how are you doing intuition or it's when you have an assumption thoughts when she never even transition take hold on did you ship boxes with what are they got comfortable.
Let me first talk about the main site situation based off the division.
Now I suggest indicated pilots with all but we actually saw a slightly more positive trend I lost you when we when we eat out you show, how many times budgeting and Oh, So Casey solid growth trend.
Pete in November he generally so generally.
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HM seems to operate the corner of iOS, a corner library, we believe the impact from the Oh from these epidemic beyond lucky that patients and we are able to assess when the academic will be over all which brought forth lot of uncertainties with the main side also had a positive market and also our business.
The way foolish on the huge outlook on that shouldn't you thought you got I said I do you chose not to demand you formulary lightly.
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She showed that easy to quilty Dot Dot you shop woman, who kind of the motion with what you call me to do that imply well known would show. So you she's I, usually do cannot do and that's in the future, though you're talking about that I've moved thanks for that for selling John.
Oh, we see a downside risks from from a macro or out of a tight fund the medical and other types of channel plans and budget as well as industry specific 60 issues and the especially for all key customer from the entertainment segment, which.
We see Oh, and most of the Aldo cancel up with a movie sector and for the common sector. We also see the impact although all the ecommerce merchants due to the due to lack of activities Oh sorghum resumption emailed me dumped shelf the ecommerce merchants are due to the.
According to wireless topic.
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Sure all that Pete I, usually either woman tuned on occasion.
For sure we are pleased to see a higher internet penetration a yell daily life isn't verticals such as all adaptation of people working on cloud services he's on the structural benefits.
Demands from the sector to acquire usage and food brand awareness well the incremental to the market.
We have taken an opportunity to tap into the new customer base and actually still nice goes from these sectors, particularly for the education sector. So demand is not only from the performance I'd market and also fund a benchmark.
Mhm kind of silicon or there could be here, though volumes going on so I do like finishing sometimes she shows an idea you kuka young and show you. Some couldn't go to machine shop Shin from teaching Cheney values will fit on go to Peel back who does seem Pima you know you saw the platforms I think we will come Vodafone wash accounting change so you do.
I know what she'd all I can do you need to show one twoish and if I'm going to justify what you all that she's going to for modeling here, although cool hit on the telephone quick.
[noise]. Meanwhile, Oh, so still a passive trend of offline to online AD budget shift from several existing customer for instance.
We see upside we're branded customer starts with Mike lazy of new product promotion activities from offline to online accordingly, we rolled off a specific AD solution to meet Brian and I, sending customers online product release, which resonating well with all customers some auto and the handset manufacturer customers.
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Given that you don't show you heard easing energy going as you do it should be job. She did a nice job dosage.
Beyond that and she shops.
Moving on to supply said factor Oh, well for the problem is that market. We do expect the top or come up a tough competitive landscape as many popham continue to be leaves a lot of even tweet, even giving them more drastically ceased all tough when wish to meet revenue talking I made a weak demand side.
And the quaintance for the E commerce sector, a lot about ecommerce merchants have knowledge that get back to work and Oh actually east unquote. So they will be a lot of pressure, although all the demand side, especially for the call myself.
And as you to this oh favorable supply and demand a dynamic it will put pressure, although I can say, which will have to increase to pricing. Jim just as you know tumor Susan as you point I can walk on the which it almost seems to be willing what I'm, saying each utility Columbia triggered some don't fit on the chunky quicker than what you.
You should be allowed people to have elevated they shot show no diner will slow down EG home and people can sometimes are enjoying will no doubt Archie [laughter].
I mean, it's a good ones, which on a coach Julio glass.
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For all itself Oh, we're now supply constraint and we continue to ramp up all choppy fundamentally accordingly, a which also lead to a AD loads decrease however, we did you lose weight so that improve on the monetization of the incremental traffic in times like him to address the under monetization issue.
The real focus the optimizing all customer mix and proving out of at high School technology in 2020.
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Sean symptom parents want some equilibrium I can uh huh.
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I won't go to I'm talking about our general 70, <unk> motion founded on me two and show me wasn't shouldn't meeting that create once you're going to go the fit often.
No those shaping up to show them onto behind you don't get you don't couldn't achieve GGR featured your own until now from that underwhelming people, who do you want.
And to some of his 2020 out I'll take you study will be you couldn't hear the overall at market considering the epidemic whenever they had all the demand side for the blend of at high School, we see it we've had little will be temporarily and Oh, we see more visibility of the business, but for the pool.
And my kids and to go over supply on the topic in the market and that has competition are we seeing a more patients in this market, but they will be they'll be more pressure on the other offline offline media hub versus the I'll, Let me get hot so we may be could benefit from somebody and also for the improve on.
<unk> said, they should efficiency out to two ought to be becoming more competitive performance at market.
Yeah.
Thank you.
[noise]. Thank you [noise].
Ladies and gentlemen that does conclude your conference for today. Thank you for participation you may all disconnect. So thank you.
[noise] see Suncoast I'll conference today, Thank you for joining us well see you next quarter.
[noise] Oh.
[music].