Q1 2020 Earnings Call
Good evening and good day and welcome to the I click that's your active age group limited first quarter Fortytwenty financial results Conference call.
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I would now like to turn the conference over to be sold League Senior manager IR. Please go ahead.
Hello, everyone and welcome to isolate first quarter Clunky Clunky financial results conference call. The companies. We felt were issued earlier today and are close to pick our line you can download earnings press release, and free up where or distribution that's fine.
Tony IR section of our website.
I got I Hypotony C.L.I.T.K. the crowd funding.
Summing shape, our chairman of the boy I'm cofounder will provide a high level overview of the first quarter Twentytwenty quit.
[music] <unk> Com TJ, Chief Executive Officer, and co founder of I could well review first quarter was not sure insights on our focus and execution strategy.
Oh by our Chief Financial Officer, Cowards, Gully, who will give us more high lot on the financial result.
Guidance for the rest of Twentytwenty, then we'll turn the call back over to TJ <unk> closing remarks, and opened a coke for QL eight.
Before we continue please note that todays discussion will contain forward looking statements made on door to see copper probation upbeat U.S. private Securities Litigation Reform Act or 1995 <unk>.
Forward looking statements involve inherent risks and uncertainties.
As such the company's results may be materially different from the views expressed today.
Further information regarding beef in auto waste and I'm sure. Some kids. It's included in the company's clunky up as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements.
So as required under applicable law.
Please also note that I creeks earnings press release, and <unk> Conference call include discussions help on audited GAAP financial information as well as on all the good non-GAAP financial measures I clicks press release contains a reconciliation of the on other garden on gas masks.
First to the most directly comparable on August <unk> GAAP metric.
I will now turn the coal over to our chairman of the board and co founder Samuel Shake Samuel Please go ahead.
[noise]. Thank you Lisa.
I am extremely excited to share our first quarter financial results, which holds but despite the continuing impact of the koby Nike pentamidine.
We delivered the strongest first quarter, we saw compared to any Oh, there first quarter in our company its fish weight.
As we reported record high revenues gross profit.
The EBITDA.
Adjusted net income and go spending.
I'm also proud to report that we haven't realized a second consecutive quarter.
The net income.
What's your family's trace the profit capabilities on our business model as we reach higher economies of scale.
Teaching and training, which we pull find more details on the resource later into coal.
[noise]. There's no question, we like solid growth as we are operating in a very challenging and baumann.
I need to buy lead you would like it's beginning to return to normal in China.
We see restrictions being lifted and the economy spot.
The economy slowly we body what measures in place to people in a second wave often called Ueno virus infections.
Against this backdrop, we believe this impact brought by the koby, 19% timing will be profound in trumps all permanently altering the wage costs you must be paid going forward.
For example.
We expect that consumers will maintain that increase online precedence SP enjoyed the personalization off by experiences convenience and all the appendage it affords.
[noise]. So we like the dynamic has also create a people at the moment in our industry as branch off the face with quite a sense of urgency then.
But before to understand rapidly changing customer behavior.
Breast now understand the necessity people data trip and analytics.
To develop small marketing campaigns.
Establish comprehensive online to offline data integration to enhance customer loyalty and generally more sales opportunities.
Sorry, just would continue to drive the mindful of our marketing and enterprise solutions and we are confident in our ability to execute and live far superior results for our customers and shareholders.
No I would like to turn to coal, but you thought that Jay 10, our CEO and co founder to further discuss the first quarter results.
Our companys strategy.
And our focus on execution.
[noise] Frankie trends.
TJ.
[noise] Sankyo Sami.
On the well call it towards the call every one.
In the uncharted territory presented by call. We'd 19, we are happy to report significant improvement in all our execution on the financial performance.
As family you mentioned, you don't face remarks in the first quarter, we achieved historically high levels of revenue gross profit adjusted EBITDA adjusted net income on Liberals feeling good bites Mark.
Hi, good morning.
Our results I cold water, we talked about you all last call as Chinas, new information consumption level received a huge post in the first quarter. That's means all residence confined to the homes children's our coal Korean of various academic.
Total digital martial arts to work on does satisfied so everything everyday needs.
Our brands Clench recognized the potential upside of these circumstances and up most of the homeowner activities heavy industry sectors spend a greater portion of the marketing budget to capitalize on age resulting yeah.
Our 64%, you'll Chris yes, our growth beginning in the first quarter.
We expect to experience additional young crisis has the power business continues to benefit from though.
Healthy organic growth of the digital advertising market on the programmatic advertising even popular.
Hi, Craig, Yes, well position as we continue to build upon the support all our enterprise software solutions capabilities, which provide.
[noise] supports profitability for the real all 10 to 20 on the beyond.
I'm also very happy to report data, we continue to successfully ramped up our enterprise solution business.
We reported.
4.4 minute unit revenues for the first quarter, often do 20, a triple digit increased all.
200 under 2% from the same period awful lot here.
As a reminder, we started reporting so yes revenue was separate 30 ins or first quarter, Paul turnkey 19 on that this marks the first time, we can make a year over year comparisons.
Entering into the second the operation.
<unk> customer base with irrelevant in this segment has created a solid foundation all for recurring revenue was well newer clients are ramping up projects that will provide further increases.
To reiterate stats, we are confident you our ability to achieve our guidance.
And a minute <unk> revenue alone for the US operating segment. This year on the plan for healthy increases in the future. We used the goal of 14 transitioning into our integrated marketing on the enterprise cloud platform.
Prolaris and throws out global pandemic under the subsequent recovery phase.
We are seeing a micro trend of China's digitalized fishing, continuing towards thrive enzos stay at home economy.
Many companies I, though you appraising, the online marketing efforts or ramping up the technology coal.
How much of the products on the services to both the business during the pandemic.
In addition, China, if now preparing to accelerate policy investments you on five key and all the technology initiatives to kick start economy following kareena virus.
China's leadership has been trying to super charge.
And do Joe's innovation on the song.
Hi analysts have suggested so kareena virus outbreak might act as a no additional stimulus.
In the long term fees up positive developments as they will continue to encourage the development of the digital economy Bhavan. This macro trends, we believe I click you as well but position.
With all our data driven marketing.
On the enterprise solutions offerings.
As we are experiencing solid demand in both operating relations.
Well, the 64% year over year gross payments.
Chris in the first quarter.
Yes proof that our innovative products on the services.
Okay, I mean, our brand the class data driven customer analytics to empower them to make the right decisions or marketing dollars spent completely eliminating any guess work on the waste. This is especially important now while the economy is.
That's a low point on the needs to be quickly repealed.
Well wait they see so trends from certain areas such as online gaming ecommerce and online education. We continue to see short term challenges ahead as the lives in China slowly normalizes.
For example, we expect that he's made take additional time close some sectors, such as tribal and Oh.
Oh, p. parity to fully recover.
Operating in safety environments, we will focus.
I'm not only fueling top line growth, but also optimizing internal processes.
Squarely centered on the day to day operations of our.
Company to ensure that we are running the business as efficiently and effectively as possible. This will help to mitigate further potential negative impact broad Fas a colleague 19.
As many of you know we came into Twentytwenty, we it's a much improved balance sheet and the financial profile. In addition to the financing we completed we start majority shareholder I'll close meta.
Also tend to more then.
So to me Lynn credit facility ways, HSBC TV, a Pos technology filed for working capital on the two supercharge the gross up our core business, we want to make sure we use the money.
Density by controlling costs, especially given the uncertain environment on the to continue to search for M&A candidates WLP complimentary to our business I also want to optimize our performance by deepening our talent pool coming off with.
Innovative ideas post close to RIN stronger outside relationships on the strategic the stinky.
These intangibles are just as important to our company is long term success as we continue to move forward with our ultimate goes up higher revenues and the increased profitability.
Hi Fi conclude my opening remarks, I would like to take this opportunity to share. Some recent updates sub is awards and the industry.
Hi, correlates we have.
For the year to date, it's very gratifying to be recognized for the way, we have executed, particularly by Tencent our partner and the company that has defined as the internet's landscape in China.
First I actually was awarded the first overseas, but I didn't know parlor of 10 cents International business Group. This will Steven in recognition of I click being one of 10 cents largest publishers copper in the region is up a pack and that you haven't yet.
This is another milestone our long term relationship with Tencent SBG.
Second.
We recently launched a new recommendation management platform.
Fall culture, and the tourism content with Tencent culture on the tourism, the new class, while leverage Tencent strong data capabilities and I clicks rich content resources on the data Triton expertise.
To provide operators all tourist attraction.
In China with our reach a rate of features including customer preferences analysis on the ranked selections all regimens day that kind of a content.
Sure I click has also recently won major awards from Tencent ads for the second half all 29 team including.
Breast create to advertising idea award excellent work commitment I work and innovation or work.
In addition to these I'll comment. He was also recently ratified CIO at life says Hey, Pat as the top can add a management company for Twentytwenty.
I think has increased as the grinch off its digital offerings on the partnerships in the APAC region throughout the pop here. We were also lifted by the publication as top 10, a pack digital marketing solution provide us in 29 team.
We are very proud for being recognized for our capabilities and efforts.
Lisa to validate the homework on efforts every while at the iconic protein to be the best to even in these challenging times on the we are happy to acknowledge understandably so.
With that I would now like to tons of coal over to our CFO currently to discuss the first quarter 220 financials.
Thank you TJ.
We concluded 2019 with record results in an environment with end units that have macro challenges created by the trade compass between us and China.
In trying to trendy, we're facing and others that have challenges related to the homeowner services.
Despite the pandemic our financial results Reston. This again the higher in the first quarter weakest January solve their on seasonally adjusted basis.
Our gross billings revenues gross profit at just EBITDA and adjusted less income all increased year over year end, where all first quarter wet costs for our company.
Enterprise software solutions business continues to scale as revenue tripled over the first quarter 2019, while we reported second quarter in a roll off adjusted net income.
I'm excited to share a few highlights from the first quarter of Twentytwenty.
I'll revenue for the first quarter on trying to trendy grew to 49 million, which was an increase of 25% from 39.2 men in the for the same period of the power year.
Overall is solid threat attributable to the increase in contributions from existing marketing judicious and enterprise software citizens.
I would like to comment that we are experiencing strong demand as markets have recognized the value of data driven marketing campaigns as well as digital tools to optimize all night customer engagement.
The revenues a marketing issue notion grew to 44, plus saying 44.6 million for the first quarter all 2020.
Up 18% from third to 7.8 million for the first quarter of 2019.
This is our bread and butter business and the continuous strong demand for marketers highlights the value we pull why in the Asia digital optimization.
Revenue from Enterprise software solutions grew to 4.4 million for the first quarter of 2000 trendy.
An increase of 202%.
1.5 million for the first quarter 2019.
Which was driven by the increasingly for all night and all slide consumers behavior data integration.
We're very proud of what we have achieved in only the first full year of operation in this salmon and we're confident in our ability to continue to grow this business.
Our gross profit for the first quarter on 2000 trend. He was 13.3 million, which is and 7% increase compared with 12.4 million for the first quarter 2019.
Our enterprise software solutions business is a high margin business.
As a business gross.
Gross profits should increase accordingly.
We are also experiencing a healthy contribution from our marketing solution as one of them increase in this segment as well.
At the end of 2019, the financing and subsequent convertible bonds compression and recently instituted an additional credit facilities from HSBC and other banks have given us abundantly sauces to fund our growth and achieve our long term objectives.
Also our company is firmly committed to better cash flow management, shim lying our operations and achieving cost optimization and we will continue to execute in order to achieve these objectives.
As a model for the first 2000 trendy our company had cash and cash equivalence time deposit.
Unrestricted cash all 50 54 million compared with 61.1 million as of December 31st 2019.
For the rest of my discussion I will focus on our non-GAAP results.
You can find reconciliations of these non-GAAP b cells in the press release, we post earlier today.
Which can be assessed at our Investor Relations website.
Our adjusted EBITDA for the first quarter, all Twentytwenty wasn't an income of two point onemillion compared with so much 8 million for the first quarter of 2019, mainly resulting from the increase in gross profit as well as added cash management.
And our pest control.
And just less income for the first quarter off 2020 was an adjusted net income of 4.6 million compared with an at just the loss of 1 billion in the first quarter of 2019.
This is our second consecutive quarter of positive at just let income.
Our gross billings grew to 158 million for the first quarter of 2020.
An increase of 64% from 96 on the manner in the first quarter 2019.
The increase was primarily a very solid increasing marketing demands, especially from the vehicle, but it goes up E Commerce online gaming and online education.
Reaching high economies of scale is a key animals for us in achieving increased profitability.
We are experiencing strong demand and expect this to continue as we operate in the Middle office pandemic and bottoming, We're all night Congress and activity is essential.
For further information piece, the the detail we cap of other financial matches in the press release, we issued today.
To give some highlights on the share repurchase program on January 15, 2000, trendy. We allows the share repurchase program in which we may portrays our own ats with an aggregate value of up to 10 million over the 12 month period ending on December trends you lie.
2000, and trendy as a modest but it Brian trendy trendy we have now if that the proposed share repurchases.
I would like to conclude my remarks, with our outlook for the balance of trendy trending.
Please note that our outlook for revenue is based on current market conditions, and we fast our P. NIM Minnery estimates of my cat and operating conditions, taking into account the to win the drivers can damage.
These are subject to change.
Our outlook is based on information available as of the date of the past religious distribution earlier today.
We estimate our second quarter of trying to trending weapon, new to be between 56 million and 60 million and our second quarter gross profit is estimated to be between 15.5 million and 17.5 million.
Our 2020 revenue and gross profit guidance is unchanged in the range of 240 million and two under six diminish and in the range, all 70 million and 75 million respectively.
Adjusted EBITDA is now wasted to be in the range of 7 million and 10 million from power guidance of between 5 million and eight minutes, which we fat hours effective cost management at boss.
We remain cautiously optimistic for trying to trendy we continue to operate in an environment, where we have not only seen a seismic shift in ordinary post all night habits less softening and other rice. The we have also seen it in house operations that policy and operate and even in how governments.
Gendrive and execute.
We're happy with obvious solid this quarter, yet we continue to monitor outbreaks impact on our operations as slide in China's stabilize and retention lamos barring the call for 19 induced lot Donna.
In conclusion, we have the recovery trend continues and a mark had can 40, we open in the second half of the year without any subsequent pandemic outbreaks, we should be on track to remain profitable on an adjusted net income basis for the full year trendy trendy.
I'd now turn the call back over to TJ for closing remarks.
Okay.
Thank you terrorists.
As we finish our prepared remarks, we would like to reiterate that we're off to a great start this year, yet we are facing a period of continue to.
Well I.
Volatility as China or in the mid May dust off recovering from tolerate 19, despite the negative social and economic impact the outbreak quickly led to a adjustment in people's behavior from fear to action to effectively deal.
We still situation, we will continue to see its impact on consumers online behavior for though feasible future as daily activities may continue to shift on the become permanent from offline. This is a positive developments here.
Eight brands relief for the economy on those sets the course for faster recovery.
Also this activity creates a unique situation for us as all company is singularly positioned to supply customer analytics that can track finally respond to rapidly changing.
Similar behavior.
It plays to our strengths, especially in the enterprise solutions area on the we are optimistic staff. It will continue to impact our entire business in a positive week.
In closing as all company managers through our.
Yes, it doesn't take the business environment near term, we remain committed to long term value creation for our ocean shareholders on the stake holders.
We stand the committed to protecting the health of our workforce as well as.
Fostering the competitive advantage of our business. We are encouraged by is the progress being made facing on the fighting the efforts of this pandemic.
People's initial panic on exactly how to gradually shifted toward.
He's a news to respond with help help for measures.
Actions in response to crisis reflect the powerful resilience of the governments the population and the economy.
This concludes our prepared remarks, thank you for joining us on today's call. We will now open the call two questions. Operator. Please go ahead.
We will now begin the question and answer session.
Yes. Good question in the press Star then one on your telephone keypad. If you were using you speakerphone. Please pick up your handset before pressing the keys if at any time. Your question is going to dress and you would like to withdraw your question. Please press Star then too.
For the benefit of all participants on today's call. If you wish to ask your question in Chinese. Please immediately repeat your question in English and please limit your question to to only.
Thank you at this time, we will pause momentarily to assemble our roster.
First question comes from Darren.
Right.
Roth capital. Please go ahead.
Well everybody a good morning, and good evening and hope you guys are well and congratulations on a nice results in the profitability. It's good to see.
Couple of things if I may 1st could you give us maybe a sense of the trend line of what you're seeing in your advertising business from maybe the month of March.
To April and then maybe through the part of May.
A second question on your enterprise business could you perhaps talk about.
Some of the trends you're seeing in pipeline over the last few months.
Thats what your current customer count is and then how retention is going given the economic environment. Thank you.
Yeah.
And your question or TJ, a wash initially shall woman, it's a woman Q1, though to go a year, which involve anemia, Oh can know the kick off for a while you.
I refer you to you.
Yeah, we can all these you trisha.
Due to Orlando showing through the to the came up with him in $70 a traditional food allergic to each im not sure or Q1 or the Andrew on the dollar the theory official among all these years will you told me Joe yen tuned up here Youre shortly on the kick off a cohu youre.
Beginning with the industrial units you should just year on year, though we for the team which also.
Okay. So Sean So you don't think you handle in that regard Johan you just does slow with.
Oh, you can't you wish all else equal.
Hi, everyone I am Teekay first I would like to keep herpes introduction of the Chen of the advertising budgets in the first quarter and also in March and April So as we mentioned in the only cool off the last quarter due to the pen damage.
In China. So some indicate were severely affected like maybe unlighted you are with the lead us to but we do you see this no recovery of this industry starting in April and no.
Starting in March and April and May we further story there speeding up.
The recovery of their advertising budget.
[noise] art so.
What do you anyway, we wouldn't use of one of your war Mendo Tickle enterprise solution.
Keith.
I'm in the enterprise solution to achieve a pull from the.
You should do well in.
Q1 on the cannot touching on sure a human way to go up each in the Varsha argument, Bob let us begin to pay Jolly sleep, a woman that tissue Cohu stone you can just reported GAAP spiritual shouting Pilar tree pushy or take all shares on the.
Two of your file suite to Jesus do woman does go into price solution that youre going to challenge as usual.
All in Q1, I think the theme, though to the table icon, Sean yet she Sheila a woman down political panache appear.
[noise]. So that's my understanding of the question is about the enterprise solution I would like to auto talk about it so.
Due to the impact of the pin down the in the first quarter a lot of consumers have to stay home, which actually increased the time the ban on the online activity and deep also urge our clients too quickly structure are they on my me out and that's the have stronger demand.
For the enterprise solution.
[noise] <unk>.
Yeah.
Oh, well, which is all we'll let you go we'd obviously you jump with Alan you can have the wouldn't you I'm not sure if my answer and I have to satisfy your question.
Yeah, just maybe if I could follow up on that I'm just on the number of enterprise customers you have and.
What pipeline looks like as well as customer retention. Thank you.
Okay.
Hi, Hi, Darren this is taryn, so maybe I could help answer these questions I think as we communicated a mark has already on our chief among our target for 2019 was to get 50 pull all kinds of key accounts major customers. So we have achieved that in 2019.
In terms the pipeline and we are going into the two trendy trending in the first quarter. We we add on the run like 15, you know alcoa kinds and another like our trendy proteins, you know middle and smaller cans. So I'll pipeline is still building up and our local upward or you know.
Enterprise solution is still quite you know I'm right at the moment and we got a lot of inquire we as like what just TJ mentions on the does pandemic embodiments the online online integrations that actually becoming a very you know important pop for a lot of our brands and and the price So I hope.
This could get a bit more color on how this business is growing.
Thank you turn.
Once again, if you have a question. Please press Star then one oneq touchtone phone.
The next question comes from Brian Kinstlinger of Alliance Global Partners. Please go ahead.
Hi, guys solid results in a difficult period.
For customers that have already installed the primary maniacs are you seeing demand for additional many actions functionality from those customers I guess the first question really is is growth coming from new customers or is it more so from the existing customers taking more technology.
[noise], Brian U haul washer tongue in a way TJ.
Warman tissue shuts along each on Yanacocha putable, while you're on the enterprise solution, though if you go unusual infrastructure, sometimes on the Cohu a single woman go enterprise solution, how about you understood. Yes, some of the union the good she Jennifer.
Gentlemen.
Yes, we are your money you didn't you want to do you want to weak.
Oh Gosh. This would you tell me a gym canola and order cohu punish element, usually surety garage industries, you're the only coming you should all Orlando do go enterprise solution, clearly Oh type juggle should your things you from you a bundled terminology year to open got your shoulder.
You will you shall go they should you have to see if I'm a useful curiosity Feliciano do go official.
Hi, Brian I am today. Thanks for your question. So we actually starting in the year altering Tonight, and we started to relieve a means of an enterprise solution and Oh I love. The client we are working away have actually.
As for that then one here so right now our cooperation mainly focused on the existing phone center, but there were some clients, who actually can drop and discussed with the potential of extending our functionality modestly more opportunities in the food.
Sure the cart, especially after the so our topic Alister first of all per Frankel also helping them make more efficient and locker.
Mr season.
Really cool.
A piece go ahead PJ sorry.
The only what do you just oh cohort. So you want a woman, though and the price erosion, we comment Uganda and also digital Formula going then John Hohener come and you should all couldn't all publicly or even with all these years only really.
So you will follow through the Tigo judicial Cohu comment again stations and you go up and the only thing that you issue, but that's always show machine a John the you got to Chew on Dude I could achieve will achieve all Chico a woman may you got Thunder Cohu the opportunity.
[noise] so southern clients, it's actually for our importantly, what does the enterprise solution dr. They they realize our our equate capability of analyzing the data and they have also apply what the 11th.
In the enterprise solutions into other areas, so our clients and Uh huh.
Very good cooperation cycle together and they can also help us further improve our actual valeo into future [noise].
Right, Yeah, and I can just Ryan just let me add event and just let me add a bit in terms so how does.
First quarters.
And the pressure issuance business revenues coming from I think on as I.
As I as those Ludacris passions, we did have like around like 15, new accounts and this 15 that basically bombing around nice 70, 80%. After you know pipe and the rest like trying to 30% actually coming from existing clients that we will still be willing on new features and also our recurring.
Our having some retiring.
Contributions. So that's how the formation is off to 4.4 million to quarters are being built up in terms of the enterprise selfish revision business.
Great. That's helpful. I can ask a follow apparent to Terrence you commented that enterprise revenue increases your gross margin should also increase which makes sense can you comment by my calculation you had a 27% gross margin in the first quarter compared to.
30% in the first quarter of last year and over 30% in the fourth quarter of 19, whatever one time benefit to either aided or hurt any of these periods to help explain the trend.
I guess for US we ought to understand how long will kind of like gross profit margin on our marketing solution is always add the range of trendy trip, 20% to 24%.
We have you know experiencing that basically into 2018 and 2019 is on the quarters or in the full year, we see the uplift because of the contribution from the enterprise solutions basically a well give you the high margin business with over 60% gross profit margins and that's particularly true.
True for 2019, how we uplift the gross profit margins and comparing to last years. I mean is like 2000, I guess first quarter first quarter with this this year's first quarters, we could see under our gross profit margin actually I think you're pointing to that is there some jump on that so is basic.
Comment on to.
Since the first is that because we actually change a bit in terms of the contribution of the different verticals. During this particular pandemic embodiments, we Gotta Love E Commerce online gaming and online education Keyence.
They do have a long walk you know contributions and they do pull wide begun budgets, but.
On the other hand, the margin profile is a little bit lower than some of the you know high margin I branding and travel and hospitality kindness. So we can have on fuel up the gap by having more coming from the enterprise solutions, and but going into the second quarter after quarter actually we expect.
I think that the higher margins high is actually would coming back and we still PD confidence to you know we maintain a certain high margins.
Listeners on hand, and that going into the same quotas and I think the margins pulled out would be.
Improving as well I hope this could give you more color on what's going on the first quarter in terms of the margin profile.
Great that's really helpful. Thanks, so much.
Once again, if you have your question. Please press Star then one on the Touchtone phone.
Also follow up questions are welcome.
Please stand by as we await any questions. Thank you.
And we have a follow up from Brian Kinstlinger of Alliance partners. Please go ahead.
Oh, no one else isn't the Q. I'll ask a few more.
I'm wondering you don't many industries, there's lots of smaller players who are struggling I take it your business is not that different interesting small companies struggling are you seeing any of your peers that are smaller financially struggle.
Enable bargain price acquisitions or is that not a focus right now into the core business that you had to keep your eyes on.
Thank you bye and this is terrorists I think.
We are constantly looking for different you know on targets for acquisitions and I think inorganic strategy is happening one pos onto growth a company, but in terms of somewhat the targets that popmoney you are mentioning like some of the small appears I'm coming all running into southern financial difficulties.
I think AFFO as it may not be an ideal approach on because we do have been the bass.
One of the Bas Pan base in our industry and also we believe very good you know a foundation and Chad and platform. So you're looking at how we grow and industrial marketing solution business I think on is that of capturing some peers on in in a situations that.
You just mentioned it may be making more sense for us to work on others, you know marketing solutions that provide us more higher like ARPU like revenue per client basis. For example, we actually were active expanding I'll kill outlet worse and Mcs solutions. So if there's some interesting companies.
In that particular booming sectors in China, then I think we'd be more interest and also in terms of the enterprise solutions. We're also looking at different you know on possibilities to grow that both organically and inorganically. So we may.
Time to time to accompany we've you know a popielec dater and technologies that will enrich and then lodge I will enterprise solutions offerings. So I think these probably wouldn't making more stands for the company's inorganic strategy of this could give you some color on that.
That's very helpful. Thanks, guys.
Once again, if you have a question. Please press Star then one.
This concludes our question and answer session.
I'd like to turn the conference back over to recently for any closing remarks.
Yes.
Thank you once again for joining US today, you have any pergo clustering. Please feel free to contact I quick Investor Relations Department to their contact information provided on our website. Thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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