Q1 2020 Earnings Call
[music].
[music].
I think guy and welcome to D.. So first quarter of 20 to 20 <unk> earnings Conference call.
All participants are in a little only mode.
There will be a presentation well looks like my question.
If you will not asking question you will need to press the star Keith So by the number one on your telephone keypad.
I would now like to have the conference over to Sandra Zhang. Please go ahead.
[noise] executed and Hello, everyone. Thank you for patients will come to keynote <unk> earnings conference call for the fourth quarter tiny 20, joining us today O.G.M.S.T. O Charles.
Yeah, So bonnie job.
Oh supposed to be [laughter] available through our website at <unk> Dot com.
Now, let me beat you to seek Augustine collection with todays conference call.
Discussion today will contain forward looking statements involve inherent risks and uncertainties.
Cause actual results could differ materially from all cooling stuff patient.
She was no obligation to update the forward looking statements on this call. It [laughter] detailed discussion over these risks and uncertainties. Please refer to our latest annual report on form 10, He asked and other funding space I see in addition, I Love to me remind you that LT suppression today include non-GAAP measures, which many schools software.
Conversations go to all the items, we use non-GAAP measures to gambit understanding of seen as compared to operating results on future calls that please refer to all these rates for more detailed information all got consideration of GAAP to non-GAAP measures.
During the cold you, maybe discuss not gotten matches, what we pool, which apply the seemed like the dollar piece, we used to calculate knockout mesh network level [noise] often mentioned in his remarks, well open the line scope. We currently section with that I'd like to turn it over to our Seattle Bonnie.
Thank you Sarah Thank you all for joining our call today, Let me walk you through the operation on a financial highlights for the first quarter 2020 before the detailed financial review I wouldn't like to remind you that my prepared remarks would've focus on non-GAAP results in all the comparisons on a year over year basis unless otherwise.
As noted.
Let's start with an overview of the first quarter 2020, Universal scene. That's net revenue for the first quarter was 432.4 million a decrease of 8% or 4% on constant currency basis operating income was 57.1 million, representing an operating margin of 13% nine called.
Attributable to see no was 17 million another diluted EPS was 25 cents no, let's turn to key financial items. He knows the advertising revenue for the first quarter was 310 million a decrease of 20 or 16% a constant currency basis, primarily due to the adverse impact.
The krona virus and dynamic on the overall advertising demand as well as negative currency translation.
Let me first give you some color on Weve Whats then if I missed this unprecedented corona Vida and Datamyx. We've all has demonstrated its indispensable value as try not leading social media platform to keep the public informed come back to the engaged in March we bought some I mean, you were reached a 550 me.
Only adding approximately 85 million users year over year every two D.A. Your reached 241, knowing how do you, possibly three Emily their Rucker high net additional waypoint I mean, you ended the year, what's their trust a month two hours differentiated positioning the market, which enable us to achieve organically grown.
[laughter] sustained solid user in potential and to reinforce our stress around public a conversation arguments and their social content ecosystem.
So on the monetization front, we bought the advertising and marketing revenue for the first quarter. What 275.4 me only a decrease of 19 or 16% on constant currency basis, which you see live without expectation given the overall demand a constraints related to the pandemic reversed.
Key accounts business decreased 24% or 21% on constant currency basis.
There were times, there's from various industry had a cancelled or suspend the marketing campaigns in the wake calls so.
Virus outbreak since late January but have exhibit a gradual recovery trend since March industrywide those sectors. So I'll have an awful lot exposure or just a question no nature took a harder hit than others such as the movie in the luxury industry, just fine near term crushers from the demand side.
Super Lani inside the pandemic to accelerate I thought just shift from offline to online as well as towards the social enemy do we think the online budget was just understanding our team pivot quickly and a more showed our resource to address customers needs off all on par promotion [laughter], well S. beefed up our efforts.
Pushing video and video AD penetration. These efforts all together contributed to a solid recovery for the handset not an automobile sectors in March I revenue from Alibaba grew 66% or somebody is 3% on constant currency basis, we're delighted to see a solid revenue growth.
From Ali underpinning the by its own Brazilians against a challenging environment, particularly after a resumption off the logistic a capability March.
Turning to SMB, we bought the SMB revenue was down 23%, 19% on constant currency basis, the robust growth in separate online sectors, such as EMEA Asia was offset by the general softness across other categories with offline exposure on the upside to our restless.
First to drive to adopt shelf optimized CPX continue to bear fruit, leading to a relatively stabilized I pricey. Despite the downturn actual demand leveraging such high I'll stop show optimized bidding and improve the targeting capability, we have gradually accumulate industry insight into.
He learned to our offering to better serve industry specific and meet the progress towards the industry specific solutions had already manifest itself in delivering high ROI for top gave me an online educate customers as well as improving our overall monetization efficiency.
Turning to seen a media advertising business in the first quarter, we're glad to see robust traffic of gross offer a media properties with the average do you have seen no news App and casino finance up growing approximately 49% and a 150% respectively. Our year over year basis, there's further down the.
Stray scene, that's brand equity after leading online media possible with years of experience in providing timely curated and Oh trustworthy media information to the public, especially during the crisis period, a monetization seen a media advertising revenue for the first quarter was 36.7.
Many a decrease of 22% or 18% on constant currency basis, reflecting adverse impact on advertising business from the Kona virus depend on make.
Turning to the law advertising business see not not revenue for the first quarter will want to 22.4 million up 45% or 51% on constant currency basis, mainly attributable to increase in revenue from Sina Fintech companies in the first quarter scene of Seatac generate a 70.
9 million revenue up 101 up 145% year over year, primarily due to growth in loan facilitation volume as well that's closer reporting all sort of seen tech revenue actually required. It by he asked you to 2016 dashed 13, we will continue to navigate through that you've all been WRECO true.
Landscape interest rate policy as well as potential deterioration in the general credit profile brought forth by the pandemic that said, we expect to take a measured approach to scale up our fintech than its buda. Upon our strengths are minimal traffic caused available institutional finding funding and.
There are some credit control systems.
Turning to gross margin gross margin for their first quarter was 67% compared to 76% last year advertising gross margin was sub 76% compared to 79% Archer no advertising gross margin was 43% dolphin, 63% last year.
Her primary I took over to be adoption of the current expected credit.
Loftus methodology in estimating alone for a party lost for things happening and they're reporting revenue and cost our gross basis for third and thing tanker business.
Now moving onto your operating expenses in the first quarter operating expenses decreased 6% to 231 point some of them. The only operating income for the first quarter was 51 million, representing an operating margin of 13% compared to 24% last year I'm disappointed spending in response to that.
Then Dominic can now fully offset its impact on the revenue side.
Under the GAAP measure not operating income for the first quarter 2021, 26 point some of them knowing compared to 75.7 million for the same period last year non operating income for the first quarter included a 153 five milling game on deep deemed it disposal.
End of 40, some a 1 million net loss on sale embarrassment fair value changes and impairment on investments, which is excluded under non-GAAP measure a 15 million net earning from equity method investments, which it to report in one quarter or any of you and no 5.2 million net income not interested in other.
Income please refer to our earnings release for more detailed information about nonoperating item for the same period last year.
Turning to Texas under GAAP measure income tax expenses were 25 point email eating the first quarter compared to 65.2 million last year.
Trueblue, two or G., Christine deferred tax charges recognized from the fair value change yourself investment as well as to reduce the profitability.
Net income attributable to see no was 17 middle East and the first quarter or 25 cents diluted net income per share.
Now, let me turn to balance sheet cash flow item as of March 31st 2020, Cienas cash cash equivalents and short term investments totaled 2.7, Billy compared to 2.9, Billy I. So December 31st 2019, a decrease of a seen us cash cash equivalents and short term investments.
With mainly resulted from execution on share repurchase program and investment activities for the first quarter of 2020 net cash provided by operating activities was 77 point Threemillion Capex totaled 11.1 milling and a depreciation and amortization expenses monitored 11th.
Finally.
Before turning to.
Turning to county, I would like to give a quick update on the progress of our share repurchase program 2020, So far we have repurchased approximately 3.2 million shares for approximately 98 point fourmillion under the 500 knowing authorized amount.
We'll continue with our share repurchase market opportunity basis, and seek to unlock the value off the company and and maximize the shareholder return in the longer.
With that operator, please open up a call for questions [noise].
[laughter] if you wish to ask your question. Please press Star then one on your telephone and wait for your name to be announced.
Oh.
Yes, so I'm curious.
If your money Speakerphone. Please [laughter] ask your question.
Your first question will come from Eddie You Oh Bank of America Merrill Lynch. Please go ahead.
Oh, you Didnt have you question on your field puppies is I remember on your child, India fourth quarter.
2019. These items Oh, you in Oneq held like coal should stop Auden D. Oh look called the Fintech <unk>, claiming that you would take a more cautious approach I'm just curious on the phone 12 amendments in the first.
Oh, well should be change or a stretchy almost lived oh, something well unless they fill my last combination eaten up okay. Bob Oh, no later than let's say some oh surprisingly strong user demand for you guys. So any Tom on the epic wrong off the Austin.
<unk>, Oh, well steel mill feed up he just in the first thank you.
Okay, Yeah Eddie.
Regarding the phenotype business or you're right.
We said we won't be cautious in this business this year and a single will continue to be very cautious going forward.
But there has been year and if you look at numbers, although use so probably a significant increase in revenues in Q1.
Year over year basis, but this in more due to accounting change in revenue accounting and so if on the same basis.
I agree.
So about a 50% increasing revenues are year over year basis, and if you look oh or are you know.
Current quarter's would probably we'll see that revenue gross typically coming down in the second quarter I think this business as we said before or it has a lot more integration snow and other restrictions in terms. What you can do what are kind of rate you can charge, yeah. So on so force and what we.
I've seen.
This year is that there's more restrictions on there right.
And although legally you can actually tried to calibrate under 36%.
Ah basis, but actually a lot of finishing situations would like to see lower right. If they provide friends for these kinds of long.
So actually we're seeing lower right that we can charge old consumers Oh.
Hi, there my Carlos and assess I mean, there would be more requirements.
I will see in terms of risk control and also in terms of increased the bay area for the past unless you can and on that money too and so this trend.
Continues a public continues throughout the year and I'm, sorry, I mean, if you look at first quarter because of Uh huh.
But the cardinal murderous and especially in the first one [noise].
Yes, I mean, the entire nation was probably low Dom and there was virtually no collection efforts.
From.
Many of these are companies and so there is there has been some.
Quite significant increase in turn so the first before right.
For the customers and heres, how yeah, you know Brad that rates weekend, yeah, we'd have to book in the first quarter, but.
Of course in up in the months a March and April we saw that before it comes down as we started to collect Uh huh.
The long again, a study our collection effort Kim.
The current before right, it's too early but harder than we have seen before the corner virus. So from both sides are wanted more cautious intend soap business.
Going forward and but having said that we do think it's just been is we're gonna see a lot of players going out to business.
And are in the near future and so that would provide us more opportunity on a go to the basis, but oh overall pace at which they want to be very cautious.
Oh, that's a district.
Much.
Thank you.
Your next question comes from Thomas Chong Oh Jefferies. Please go ahead.
Hi, Thank many command Hopper picking my question I'm I've a question about the advertising market trend that's rabbit.
Strategies portal business, given that to Tropic Sina news App and Oh by names and also so I was strong topic world and Benjamin Coleman about how we are using their Tropic April and May So Bob.
On that front given the cool.
Yes, no Oh, how should we bring about the advertising sentiment.
Called <unk>.
And that's one.
Comments about the competitive landscape in public Oh, no competition for medium. Thank you.
Okay.
Regarding the carbon market I mean intense outflow.
Our part of business or you're right. We were has two major.
Problems wouldn't use our news app.
I will oh and the boasts as you.
Okay, pointing out that we have seen pretty healthy traffic you used the gross in the sector into first quarter.
And mainly due to the krona virus I think there is a major pick up about internet usage across the board.
And.
Especially for those news app that we provide yeah.
On time and time basis, Oh, the coverage outgrowing the virus and end user engagement in that particular topic.
And so the topic and use a gross what pretty strong probably more so on the news app less so on the funnel but.
But we did see some of the you know the car.
In April and that can become part of it continues it didn't Mary, but still I mean that to traffic has been quite significant and also or they were both higher you, but you may want higher.
Quite higher then though.
Trust, we saw before the court nobody is doing.
I myself January and so that's a that's the trend we seem to traffic, but on advertising side. It's a it's a different picture and Uh huh.
To start when they.
Pay market brand advertising market and a this is similar to.
We saw in we bought probably more so I'm more challenging and are in a public area. Okay business.
We saw significant decrease in Milwaukee business.
Advertising business in the.
First quarter.
In a portal area and.
It's probably across the board with one exception as the market 021, or two particular carton they contribute significant portion of a key advertising businesses.
First quarter, so without that we probably would seem quite significant decrease in the right now probably we saw about around 10% decreasing paid advertising, but without that this decline that would probably was much much worse performance and Ah that trend probably continuing I said.
And quota, but well be slightly better in the second quarter and overall basis, we're probably seeing.
Mid teen percentage decline year over year base in the K markets and would probably don't have enough visibility for the second huh.
What a part of business yet, but overall the trend is that even with the recovery the market there'll be more challenging overall basis or in the entire yeah by endo tightening market.
But on spacing try and particularly because what you correctly pointed out where the truck competition from that should be do problems I think that began to take a lot more market share in this space.
And so it's going to be quite challenging and its much on engine in S. M E business, and we saw log that 50% decline and a Swiss corridor and the second quarter, where we still challenging and I seem to be short video problems I take it more market share for the fulfillment space as any business.
Then the brand advertising businesses.
And so overall, it's it's not a very positive trend for the advertising business for the portal and the but I think there would have on problems and I see that many businesses, we said before and.
We're probably didn't nice establish a very you know a healthy so channel.
Sales channel and the sales team for the S any businesses and so our overall pricing for the S. M E business performed the advertising.
Quite low compared to the market.
With that particular pulling it we see a we think we have a significant room to improve on the pricing side, but the overall advertising revenue side is still going to very challenging.
Got it thank you.
Thank you.
There are no further questions at this time.
Call back over to see injured sang for closing remarks.
[noise] [noise] Oh.
[noise] I'll call today [noise].
[noise], yes.
That does conclude our conference for today. Thank you for participating you may now disconnect.
[music].
[music].
[music].
Yeah, I think guy and welcome to the first quarter of 20 to 20 earnings Conference call.
All participants are in listen only mode.
There will be a presentation well look like.
Her section.
If you were asking question you will need to press the Starkey followed by the number one on your telephone keypad.
I would now like to hand, the conference over to Sandra.
Please go ahead.
Next I'll quit and Hello, everyone. Thank you for a patient welcome to <unk> earnings Conference call for the fourth quarter Tiny 20 joined up to date, Oh Gee M. A C O Charles.
Oh, Seattle Bonnie gel.
Oh supposed to be caught that estimatable swell IR website at <unk> Dot com.
Now, let me begin to see public thing in connection with today's conference call.
Our discussion today will contain forward looking statements.
<unk> Arabic Oh go ahead.
Cause actual results could differ materially from alcoholics that patient.
Sina assumes no obligation to update forward looking thing that you this quarter.
For detailed discussion of these wins can also to.
Please refer to all these any report on form 20-F, and other flooding I see in addition, a lot could we be launches that all discussion today include non-GAAP measures, which ladies cool stuff. This conversation so to all the items, we use non-GAAP measures to gain a better understanding of seen as compared to operating results and future Costar.
Please refer to attorneys rates for more detailed information I'll give consideration of GAAP to non-GAAP measure.
During the cold you, maybe discuss noga matches, what we bought which apply the seemed methodologies we used to calculate knock at national.
Level after lunch my remarks, well open the likes what we currently section with that I like to technical over to our sample Bonnie.
Thank you and the thank you all for joining our call today, Let me walk you through the operation on a financial highlights for the first quarter 2020 before the de telephone national reveal I would like to remind you that my prepared remarks would've focus on non-GAAP results and all the comparisons are all year over year basis unless otherwise.
Noted.
Let's start with an overview of the first quarter 2020, or so she looks net revenue for the first quarter was 432.4 million a decrease over 8% or 4% on constant currency basis operating income was 57.1, the only represent in the operating margin of 13% naive.
Attributable to see no was 17 million under the diluted EPS was 25 cents.
Let's turn to a key financial items see not the advertising revenue for the first quarter were 310 million a decrease of 20 or 16% a constant currency basis, primarily due to the.
At first in pockets of the CRO no virus and dynamic on the overall advertising demand as well as negative currency translation impact.
Let me first give you some color I'll. We bought then I met this unprecedented corona Vida and dynamic we will have demonstrated its indispensible value as China, leading social media platform to keep the public the informed come back to the engaged in March we bought through I mean, you reached 550 milling.
Adding approximately 85 million users year over year average of D.A. Your reached 241 million, adding approximately 3 million their rucker find additional <unk>. I mean, you ended the year was a testament to our differentiated positioning in the market, which enable us to achieve organic growth.
Sustained solid user in Patricia and to reinforce our stress around public a conversation holiday events and their social content ecosystem.
So although monitor they show front winglets advertising and marketing revenue for the first quarter, what 275.4 mailing a decrease of 19 or 16% on constant currency basis, which is the inline with our expectation given the overall demand a constraints related to the pandemic we of course.
Key account, then it decreased 24% or 21% costing crazy basis as advertisers from various industry had a cancelled or suspend a marketing campaigns in the wake call stuff.
Virus outbreak since late January but have exhibit a gradual recovery trend since March industrywide, those sectors, Oh, heavy or light exposure or discretion on nature took a harder hit than others, such as the movie into luxury industries. Despite near term crushers from the demand side.
Super Lani, Bob the pandemic accelerates the AD budget shift from offline to online as well as towards the social enemy do within the online budget was just understanding our team pivot quickly and a marshall to our resource to address customers needs all on product promotion as well as beefed up our efforts.
Pushing video and video AD penetration. These efforts all together contributed to a solid recovery for the handset not an automobile sectors in March a revenue from Ali Baba grew 66% or somebody through profound on constant currency basis, we're delighted to see a solid revenue growth.
From Ali underpinning to bite, Oh resilience against a challenging environment, particularly after a resumption of the logistic a capability March.
Turning to SMB, we've looked at 70 AD revenue was down 23% or 19% on constant currency basis, the robust growth in separate all like sectors, such as EMEA Asia.
Well, it's offset by the general softness across other categories with offline exposure on the upside to our restless efforts to drive to adopt shelf optimized CPX continue to bear fruit, leading to a relatively stabilized at pricey. Despite the downturn actual demand leveraging such high.
I'll stop show optimized bidding and improved a targeting capability, we have gradually accumulate industry insight and tailored to our offering to better serve industry specific any the progress towards the industry specific solutions had already manifest itself in delivering high ROI for.
Top gave me an online educate customers as well as improving our overall monetization efficiency.
Trying to seen on media advertising business in the first quarter, we're glad to see a robust traffic of gross off our media properties with the average do you have seen unused up and to see no finance up growing approximately 49% and a 158% respectively. Our year over year basis do further damage.
Stray scene, that's brand equity at the leading online media possible with a years of experience in providing timely curated and.
Trust worthy media information to the public, especially during the crisis period.
Monetizations seen on media advertising revenue for the first quarter was 36.7, many a decrease of 22% or 18% on cost and crazy basis.
Last piano adverse impact on advertising business from the Kona wireless pandemic.
Turning to the NOL advertising business seem not to non <unk> revenue for the first quarter will want to 22.4 million up 45% or 51% on constant currency basis, mainly attributable to increase in revenue from Sina Fintech business in the first quarter see no fintech generated 70.
9 million revenue up 101 up 145% year over year primary due to growth in loans, just rotation volume as well as gross reporting all sort of seen tech revenue as required by a asked you to 2016 dash 13th we will continue to navigate through the evolving recolor true.
Landscape interest rate policy as well as potential deterioration in the general credit profile brought forth by the pandemic that said that we expect to take a measured approach to scale up our fintech openness Buda upon our strength a minimal traffic caused available institutional finding funding and.
So quite a control system.
Turning to gross margin gross margin for the first quarter was 67% compared to 76% last year advertising gross margin was 76% compared to 79% last year.
Advertising gross margin was.
We three per se dolphin, 63% last year, primarily attributable to be adoption of the current expected credit.
Losses methodology estimating allows for a party last for a thing to happen its and they're reporting revenue and a cop all gross basis for third and sing packet then it.
Now moving onto operating expenses in the first quarter operating expenses decreased 6% to 231 point some of them to only operating income for the first quarter was 50. So I don't want to know representing an operating margin of 13% compared to 24% last year as disciplined spending respond to that.
Endemic cannot fully offset its impact on the revenue side.
Under the GAAP measure not operating income for the first quarter 2021, 26.7, Emily compared to 75.7 million for the same pure last year non operating income for the first quarter included a 153 5 million game on deep deemed it disposal.
And a 40, some a 1 million net loss on sale of investment fair value changes and impairment investments, which is excluded under non-GAAP measure of 15 million net earning from equity method investments, which reported a one quarter any of you know.
No I point 2 million net income net interest in other income please refer to our earnings release for more detailed information about nonoperating items for the same period last year.
Turning to Texas under GAAP measure income tax expenses were 25.8 million in the first quarter compared to 65.2 million last year.
Trueblue two are decreasing deferred tax charges recognized from the fair value changes, so investments as well as a reduced or profitability.
Net income attributable to Sina was 17 million the first quarter or 25 cents diluted net income per share.
Now, let me turn to balance sheet cash flow item as of March 31st 2020 scene of cash cash equivalents and short term investments totaled 2.7 billion compared to 2.9 building as of December 31st 2019th the decrease of as seen on cash cash equivalents any short term investments.
With mainly a result of from execution of share repurchase program and investment activities for the first quarter of 2020 net cash provided by operating activities was 77 point Threemillion Capex totaled 11.1 building and the depreciation and amortization expense at home monitoring 11.
Finally.
Before turning to.
Turning to county, I would like to give a quick update on the progress of our share repurchase program 2020, So far we have repurchased approximately 3.2 million shares for approximately 98.4 mailing under the 500, knowing authorized amount we will continue with our share repurchase on market opportunity database.
And seek to unlock the value of the company and maximize the shareholder return in the longer.
With that operator, please open up the call for questions [noise].
[noise] if you wish to ask your question. Please press Star then one on your telephone and wait for your name to be announced.
[noise] Northstar than Q.
If youre speakerphone please.
Ask your question.
Your first question will come from Eddie.
Bank of America Merrill Lynch. Please go ahead.
Well you have any.
Question on your feet puppies is I remember research how is in the fourth quarter.
2019, these items Oh, you in Oneq called like.
Paul should kick off Augie, our low cost the asking that pieces.
Cleaning that you would take a more cautious approach I'm just curious.
On the strong performance in the first.
Paul would you be change of stretchy almost lived Oh, something let's say for my less competition in the market BAW generally to adopt lessray. Some oh surprisingly strong user demand for you guys. So any color on the epic long Opteon stay.
From a loose.
July filled up you just in the first quarter. Thank you.
Okay and Eddie.
Regarding the fin tech business you're right.
We said we won't be cautious in this business. This year and single will continue to be very cautious going forward.
For the remainder year and.
If you look at numbers, although use so probably a significant increase in revenues in Q1.
Year over year basis, but.
This in more due to accounting change.
Coming and so if on the same basis.
Great.
So about 50% increasing revenues.
Year over year basis.
And if you look oh.
Current quarters would probably we'll see that revenue gross typically coming down in the second quarter I think this business.
We said before it has a lot more to gracious no and other restrictions in terms of what you can do what are kind of rate you can charge and so on so for us and the what we have seen.
This year is that more restrictions on there right.
And although the Eagle or you can actually charge pub rate.
36%.
Basis, but actually a lot of finishing nutritious would like to see lower rate. If they provide funds for these kind of long.
So actually we are seeing lower right.
We can try to consumers.
Oh.
Internet My Carlos.
And so I mean, there will be more requirements.
I will see being turned south that risk control and also in terms of increased the bay area for the past unless you can.
That money too and so this trend.
Continues a probably will continue throughout the year and.
And the side I mean, if you look at first quarter.
Yes.
Huh.
The Cardinal motorists and especially in the first one [noise] on this I mean, the entire nation was probably a lot doll and that there was virtually no collection efforts.
From any of these companies and that there is there has been some.
Quite significant increase in turn so at the first before right.
Customers.
And the heres how I Yeah, you know bad that rate, we can't we had to book in the first quarter, but.
In in the months a much and the in April we saw that before it comes down as we started to collect Uh huh.
The long again, a study our collection effort can.
The current before right, it's too early but higher than we have seen before the corner virus. So from both side. It will wanted more cautious in turn so business.
Going forward and but having said that we do think this business.
We're going to see a lot of players going out to business.
And in the near future and so that would provide us more opportunity on regular basis, but oh overall base. It with you ought to be very cautious.
Oh, Yes district Ah. Thank you very much.
Thank you.
Your next question.
Joel Jeffrey Please go ahead.
Hi, Thank Bennett you may not bought picking my question.
A question about the appetite in market trend as rabbit our.
Strategies.
Given that the Tropic for Sina news App and Oh by names at all just so I was strong traffic growth.
Women Coleman about how we are.
<unk> bake in April and May so far.
And on that front.
Given the cool.
No well.
Brings about the advertising Fentiman xb called <unk> and.
And that's one of your comments about the competitive landscape in public Oh competition for medial thank you.
Okay.
Regarding the tightening market.
In terms of.
Our part of business Youre right, we had two major.
Platforms when is our news app.
Our finance and that both as you.
Correctly pointed out that that we have seen pretty healthy traffic and use the gross in the sector into first quarter.
And mainly due to the krona virus I think there is a major pickup about internet usage across the board and.
Especially for those news app that we provide yeah.
<unk> income basis, Oh, the coverage Apco and the virus and you would the engagement in that particular topic.
And so that the traffic and use of gross what pretty strong probably most on the news app less so on the front end up but we did see some of the though the car.
In April and that can become part of it continues.
Mary, but still I mean that to traffic has been quite significant and also.
They were both higher you might you might want higher quite higher then.
[noise] truck, which saw before the court nobody is doing that.
Myself January and so that's.
That's the trend we've seen the traffic, but on advertising side, it's a it's a different picture and.
To start when they will pay market brand advertising market and a this is similar to what we saw in we bought probably more so.
More challenging in the in part to area, Okay business.
We saw significant decrease in our key business.
It hasn't been as you know.
First quarter.
And portal area and.
Probably across the board with one exception.
Okay, Okay to one or two particular carton they contribute significant portion of a key advertising businesses.
In the first quarter, so without that we probably see quite significant decrease isn't that right now probably way so about around 10% decreasing paid.
Timing, but the without that this decline that would probably with much much worse performance.
That that trend, probably continuing my second quarter, but it will be slightly better in the second quarter and overall basis, we're probably seeing.
Hi, mid teen percentage the car audio your base and the key markets.
And that would probably don't have enough visibility for the second half.
For the portal business, yet, but overall the trend is that even with the recovery dimmock it a there'll be more challenging.
Overall basis or in the entire yeah by advertising market.
Oh, I space in China, and particularly because what you correctly pointed out where the competition from that show video problems I think that begin to take a lot more market share in this space and so it's going to be quite challenging and its much on engine in SMB business and that we saw.
Well again, 50% to car and first quarter and the second quarter, what we still challenging and I seem to be short video problems I take it more market share for that performance based Emmy business in the brand advertising businesses.
So overall it.
Not a very positive trend for the advertising business for the portal.
And that but I think there would have on progress in.
The business as we said before and that would probably didn't nice to address a very healthy sales channel sales channel and adjusting for the assimi businesses and so our overall pricing for the SMB business performed this advertising will quite low compared to the market.
With that particular pulling that we see we think we have a a significant room to improve on the pricing side, but the overall advertising revenue side is still going very challenging.
Got it thank your house.
Thank you.
There are no further questions at this time.
Call back over to see Anderson for closing remarks.
[noise] [noise]. Thanks.
[noise] I'll call today [noise].
[noise], yes.
On.
And our conference for today. Thank you for participating you may now disconnect.