Q1 2020 Earnings Call

[music].

Today's conference is being recorded.

This time I would now like to hand, the conference obviously, Juliet Yang Senior director of Investor Relations. Please go ahead.

Thanks, operator.

The discussion today will contain forward looking statements relating to the company feature performances.

Tended to qualify the safe harbor from liability.

Yes, private security Litigation Reform Act such statements are not guarantees underperforming.

And are subject to certain risk.

Turning assumptions and other factors some of these risk factors are on the company.

And could cause actual results could differ materially from designation in today's press release.

Discussion I cannot discussion of the risk factors that could affect feeling really good business.

Actual results is included in true filings the company with its your Securities and Exchange Commission. The company does not undertake any obligation to update forward looking information, except as required by law during today's call imagining what also discuss certain non-GAAP financial measures for <unk>.

Person purposes only.

Our definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial result.

We see but twentytwenty first quarter financial.

So not really sure earlier today.

As a reminder, this conference call is being recorded in addition, and Investor presentation and a webcast replay of this conference call well be available on the deliberately investor relations website at <unk> IR day, I'll be able to do any dot com.

Joining us today on the call. Some deliberately senior management are literally Chen chairman of the board and Chief Executive Officer, Mike Caliel, Vice chairwoman up the board and Chief operating Officer, and Mr son, San Chief Financial Officer, and I will now turn the call. They can Mr fan who will read.

On behalf of Mr. Kim.

Thank you included that's going to everyone for participating on the 2024th quarter Conference call I'm pleased to deliver to take opening remarks comp at hop on this trend.

And the 20 is off to a remarkable stock were proud to deliver stellar results. So you'll recall, we view our key operating and furniture later.

For the fourth quarter, and they will grow by 50% year over year, Richard 117, Cooper's Emily and our multifamily you'll grow even faster at 77%.

Full year 256, committing our human nutrition level also reached a new Hart, our new news achieves a major milestone of 59% year over year to 51 million.

Along with our larger the numbers, we saw striking increasing the amount of daily time spent our platform.

Revenue from Q4, two average already to fill them in it.

This is the highest level, we have seen coppery history.

With that you see once again demonstrates our strong execution and high quality growth, we haven't to deliver.

We attribute our success auto increasingly broad counter friendly and sticky community as well as the include a brand awareness.

Good day on the success of our new you've Gotta event.

Welcome to more new users, especially during the extended winter holiday.

The beauty is becoming really People's book choice, when it's come to content equation and consumption.

2019, we affirmed our user growth as one of our key objectives and a great deal. It's hard to offer I may view for 2021 to 220 Committee.

We're pleased to say with a solid execution, our our initiatives we are fast track to meet this target.

As we roll out more quickly content and services and strengthen our monetization capabilities, we're converting more traffic to paying user.

Our NPU grow by 134% year over year to any oppressive 13.4 million in the fourth quarter.

The printing ratio also grow to 7.8% more than doubled from two years ago.

Our revenue reached an all time high of RMB 2.3 billion, so talking to talk and of our guidance.

By more than our view over 100 Billy.

As our topline expense, we hope to increasing the operating leverage growth margin jumped to 23% into first quarter of from 14% for the same period last year.

Marking the fourth consecutive quarter of margin improvement.

Our strategic partnerships also expanding on the heels of agreement with Tencent and Bob We were excited to present, our longstanding partnership with Sony to the next level, which is 400 million U.S. dollar equity investment and being this collaboration.

This agreement, we plan to bring even more work class enemy and mobile game content to the dominated market.

Further enhancing our advantage in these sectors.

The equity investment where not only few our future growth, but also demonstrated solid coffee does the our unit positioning and growth both died.

We've got overview our than not.

Now I'd like to walk through some of our initiative and the trend we are seeing in each of our co area of content community and the commercialization and how they fit into our long term strategy.

I will begin with content BBD has contributed one of the most active and friendly environment for our crater waitress can easily up low content actively intact with user and camcorder fan base et cetera.

For these reserves will be to have become many people try fourk TV equation, especially during the extended winter holidays. When more people were looking for ways to express themselves.

We saw significant increase in a number of active content creators and the video submissions during the first quarter.

We had about 1.3 million content creators uploading 4.9 billion videos promote.

Presenting increases of 446% and 100 of 38% respectively, both year over year.

With a growing number of creditors and the effective operational campaign, we are getting even more diverse and individual contracts ambition and the further increasing our mark mass market appeal for the first quarter, our most heavily customer verticals were lifestyle Gan and payment animation tech and knowledge.

Our lifestyle due to extended holiday.

People are looking for ways to entertain themselves while staying at home, we actively promote subcategories address foodie outlet business as broad as many people look for ways to Cook.

They fit and express themselves.

Similarly, gems overtook entertainment verticals, and we fortified our kitchen counter library.

The commented a host of for more and more gamers.

With our recent.

Partnership with Tencent music, Sony music, our new their content is also attracting are growing amount of traffic, giving us the universal appeal.

Yes addition, we expanded our technology as education has a great in order to support those looking to catch up on desktop, Dave London, a new skill or simply getting more general knowledge doing allow holiday.

Turning to our OTV Dennis building, our years of investment and key leadership in this in estimate documentary and other categories. We continue to 12 hour OTV library into valuable IP assets, attracting new users as well as converting paying users.

During the first quarter, we launched the daily life of the model Keno Hill on leverage also more IDBD produce Chinese analysts period. This high quality Crs quickly can over 100 million video view in less than Saturday setting a new record fall OTV history.

Not only ashok many new and in the sense all platform, but also converted a considerable amount of premium number.

Similarly, we further expanded our documentary anniversaries show offerings, our truck border audio our reality show animal hospitals, either into when we are and equipment out of China digital whole year, a documentary that we cannot produce with discovery. While also welcome the by many pad that's a level show low.

Our respectively.

Turning to our community as I mentioned, we are seeing require high across all of our currently use of matrix. We did was paid trucks to our community the quality of our platform our content our users our costs even stronger in the first quarter. Our daily video views reached a record high of 1.1 building up our.

113% year over year.

Our new doors were more engaged we'll talk to each other than ever before.

And our overall committed retention levels will improve.

In the first quarter, our users during a richer nearly 4.9 billing monthly injections suitability chart comment life and Billy BD moment, both more than tripled amongst promise in period in 2019.

Members of our official membership also grow at an accelerated pace in the first quarter by the end of Q1, we had 82 milling official members who passes our has good question is then up 6% to 6% year over year and the 12, most protection array for these new those women high as well.

Well above 80%.

The strong community engagement and retention levels continue to be excellent indicators of the quality of our user growth.

Turning to the our commercialization progress our first review the status of our Gan business.

Revenue per hour games increased 32% year over year to RMB 1.15 billing accounting for 50% of our total first quarter revenues.

Okay, Great order Geo delivered robust performance for period following a major content update other exclusive license titles, such as alluded alive and fewest Lamar also continue their popularity during the first quarter.

Pro we launched the highly anticipated China, Japan is RPG. This has come next quarterly and year exclusively licensed games, where they need to heat.

For two minutes of players and talking China, iOS download and growth in charter within a week after release.

That's a minority phenomenal success of this release was again prove our strongest for fusion power and gifted understanding update digital marketing.

I will turn to the office can also continued their growth momentum in the first quarter newly released updates of our CNI, new bundle and above lifestyle well welcome by many existing and new players with an increasing number of cameras gathering and more efficient distribution operation our platform.

And in variable.

Channel form 10 developer.

Who want to maximize their exposure to quality players and we reach potential new fab.

Later this year will be further expanding our plan offerings refer to high quality care and our upcoming camp supplies were looking forward to further diversifying our portfolio. We have eight hotels that have a cloud approvals at their scheduled to be relieved in the coming lenses.

This includes at initiative. Once you are suing SCG titles that we plan to go out this summer.

On the jointed operated can throw we'll we'll continue to work with leading cancer products to bring our new they're putting again, attracting high yield junction and that is high reporter.

Turning to our that business revenue from that increased by 172% year over year, reaching RMB 794 million in the first quarter. Our growth was mainly driven by increased contribution from premium members live broadcasting and other value added services and.

Part our video content ecosystem, we continue to increase our live broadcasting offerings and increase our not forecasting penetration amalgamating user traffic.

Our investment of top notch broadcasting IP, continuing to fuel our user growth and attract more live broadcasting hope to our platform.

We are seeing more talents agencies and individuals can to BBB to grow the inference, our fast developing platform.

With that text to access to our school.

Members have become accustomed to paying for high quality content by the end of the first quarter of team members reached an exciting milestone exceeding 10 milling while record 10.9 million subscribers. This represents an increase of 127% year over year.

Further demonstrate that our users represent a golden cohort with a high willingness to pay for putting the entertainment material.

As for advertising business are rapidly growing community and included in brand equity comment to make BBB, a leading platform for advertisers. Despite mako heavily revenue for advertising segment continued to increase year over year of 93% to RMB 240 million in the first quarter.

The leading screens industry verticals footwear advertising or E commerce.

Yes, and Threec product and the top three verticals for performance based as well as I guess education and E Commerce.

And the Tigers are seeking out new and innovative ways to increase their visibility and online channels represent a popular heavily tractor Avenue.

Beginning fall this year, we hope to multiple online new product launch conference, including flowers vivo Opals Alexander.

We expect this offline to online marketing transaction well continue throughout the year.

Advertisers in other industries, such as online education and E. Commerce also seeking out our platform to increase their brands, which.

To summarize we had an outstanding first quarter marked with excellent growth across our priming operational and financial metrics that success, what attributes for two years off devotion in building a healthy content ecosystem trended a community and the improved commercialization capabilities.

We're also pleased with our strong execution in raising our brown wind is growing our user base as well as forming high level strategic partners.

During the early 20000 momentum we will continue our user growth strategy improve our topline and drive value for all of our supporters.

Our growing community and our stakeholders.

This concludes trans remarks, our now provide a brief overview of our financial results for the fourth quarter hopes and Btwenty.

Total net revenues increased by 69% year over year, RMB 2.3 billing exceeding the high end of our guidance with a 50 50 revenue split bargain and then Gambian if we're pleased with our commercialization progress and the implications of this diversity.

We are also converting more and more all our target to paint.

Then the average number of mostly paying users.

Increased by 134% year over year, reaching 13.4 merely in the first quarter cost of revenues increased by 50% year over year to RMB 1.8 billion revenue sharing cost a key component of cost of revenue was RMB 889 billing 61%.

An increase from the same period in 2019 gross.

Gross profit increased by 180% year over year to RMB 500, and certainly we are also starting to see operating laggard, while our diversified revenue streams.

More revenue contribution for our higher margin business as well as additional income from paying user.

Gross profit margin continue to improve.

Between 23% into first quarter.

Total operating expenses increased to RMB 1.1 billion tendered and that 17% from the same period in 2019, selling and marketing expenses, what RMB 606 million, representing a 233, 34% increase year over year. The increase was primarily attributable to.

The increase channel and the marketing expenses associated with BT based apps and Brent.

As well as expenses for GAAP Covenant mobile again, and the sales and marketing personnel.

Building on the success of our new years Eve, Carla and a strong due to demand during the extended holiday.

We've made additional investment in blending and channels to further drive user growth and the reading bass brand awareness, which we believe well yos considerable return loans.

General expenses will be 171 million, representing a 33% increase year over year. The increase was primarily due to increased headcount in general and administrative personnel an inquiry to share based compensation expenses.

R&D expenses was RMB.

297 million, representing a 60% increase year over year. The increase was primarily due to increased headcount in research and develop personnel.

Net loss was RMB 539 billing for first quarter Twentytwenty compared with RMB 196, mailing lists and period of 2019.

Yes, no loss and loss, which are non-GAAP measures that you could share based compensation expenses and amortization expenses related to intangible assets and our cloud superior acquisition, while on the 475 million compared with RMB $145 million in period, our 2019.

Basic and diluted net loss per share were RMB 1.62 adjusted basis diluted net loss per share were RMB 1.46.

Okay of one for 1.43, sorry.

As of March 31, intermittently portfolio investment, we have cash cash equivalents.

Deported as well as short term investments of RMB, seven or NIE billing.

Our U.S dollar 1.1 billion compared to RMB 8.1 billing as of December 31, 2019.

To further grow our business, we plan to improve our monetization by leveraging our consumable and growing traffic. We are also see benefiting further expanding our diverse revenue streams and continuing to improve our payout ratio.

Longer term, we believe our monetization efforts high paying lower commercial rates and scale will yield and improve the bottom line.

We've got in mind, we are currently projecting no revenue for the second quarter of uncertainty to recruiting RMB 2.50, clearly and RMB 2.55 billing.

Thank you for attention we would like now to open the call creditors. Operator. Please go ahead.

Thank you, ladies and gentlemen, we will now begin mcewen a session.

I wish to ask your question. Please press star one on your telephone and what's your name to be announced.

Please for the benefit of all participants on today's call. If you wish to ask your question to the management in Chinese. Please immediately repeat your question in English. So once again that is styled one.

And your telephone if you wish to ask your question.

Okay. So your first question today comes from Jialong Shi from Nomura. Please ask your question.

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Considering a system that you had on the cetone touching on each new Gen.

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No.

Jim.

Sure Tom holder cynicism permitting or illness in June we more.

I'm going to what's going on is fundamental gilman.

She can you share yeah, Hello nodes to July same show.

Congratulations on a very solid onto my question is about.

In a few weeks.

So the acceleration in this quarter.

Management, some tenders on how much of the gross was driven by the end damage.

Thank you and how much was organic and as light in China is getting back to normal how should we look at the trend of your EMEA gross concept pandemic.

The new users of higher in the quarter how it.

Engagement level compared to all those of owned users nonfinancial in China as few TV markets, who just give us some hundreds and won't be the size of the user base, the second and potential and reach thank you.

However, or you look with annual revenues will develop.

Steve It is running room, and the DG to sort of say how hard it really will no doubt our theater. When you were going down through ongoing seasonally outgrowth Eagle hydrous, usually don't go into faster the names on higher to assume a quarter shimmin should answer the argonaut user or related.

Non core data will the upstream high the nigger, you've got leave you warmer soon.

Using quoted appropriate.

Your first question on that.

Thank you indicated we had an outstanding first quarter in terms of user growth and we believe that user growth is.

Two factors one as.

10 year, 17 function and outpatient, including a healthy content ecosystem and friendly community to ensure that we always have the highest quality content offer to our meters and second of all.

Our continue actually raising brand awareness and are accelerating sets of user acquisition strategy.

Well, it's not in dire bone mineral density those are the design.

You mentioned the realignments from way transact.

Simeon senior centers on the Tollway.

Thomas shortly but I think your ability to go it's obvious answer.

So let me reiterate a broader teamed offices will deliver and put under patency presented new.

Probably half already experienced that there's any has become not only for the younger generation, but more from Mark mass market, Paul first choice when it comes content.

Creation or content consumption, and there's more and more chatter step out what type of media indexing.

Tools under sort of digits users, who are you seeing into the taxi and Tom This is a male granted.

So all of that.

Factors that Weve nation as Bob actually.

The extended holiday, we felt by the time that we're waiting for the yen Thomas Atsis have through woman the you'll wound up when you look we're touching on its attitude of Royal Dutch accomplishes two.

Well, we believe that make only helped as to accelerate our use across process will not change or become a main factor how are you.

Got it wouldn't be careful internship program.

Yes.

Thanks.

Okay. They can't message the neighborhood similar negotiate soluble nigger tortoises, although maybe some color closer to 105, guys, Japan go for Golar Peshawar.

Your entry we live within that you see all content leaves us in 2000 networks. These other everyone railway former BG do that.

From a halt reveals within valley with some view the whole using fiber Caspian touches Italy's approval hopefully the harder work will element to our who through that woman around could handle growth within Europe.

So.

Regarding your second question.

How the major it's trending up every part returning back to school work, Yeah, as I mentioned earlier the accelerator user.

See into first quarter has more testing at the fundamentals of our company and extend the holiday only help us to accelerate process. So we are still quite confident in the second and third quarter, we'll still see will still be seen.

Relatively.

He said.

Later.

Yes.

No.

Yeah.

Okay.

Got it.

He will report ounces are going to positive CBU measurements you did hold your answer the annual review and we feel we're looking at things arent resort youre not seeing on commodities like.

How about you will see this isnt any essentially telephones. So in terms of add new user profile that we see and at first quarter. It has.

Theres no that difference between the Easter and the only years, it's still maturity gallons younger generation their average age at around 20 years.

And over 50% if they need there comes from.

Tier cities.

Overall inventory overtones almost.

We'll go through seasonal warmer eases that Jim converse on hedges out the whole woman salary towards a good you who do not legal Google will create kind of user formal over the which would realize huh.

Mayodan balances on the deals and I guess delivers you'll not most of up to your order shipments just home so think Alice and don't obviously, even though the whole number should be more promotional you told us.

I see the two full years review it kind of the slim woman the you'll corridor from gas inventories of retention of the past some of the full year 200 years due.

Sure No real product in this is Brian Peterson, our head of our third.

So the real solidifies, where the woman DG do so square and the differently, yes, yes, yes, maybe tail.

Because the aggregate possible.

So in terms, it's easier for us we never just purely focused on the quantity, but we always.

Already first as you can see from that there may change our EMEA grow 70% young here are you also grow.

69% young here and our.

Hi, Thanks for getting increased 10 minutes quarter over quarter too.

87.

Per day, and our video views surpassed 10 billion, reaching one point I am sorry.

As 1 billion, reaching 1.1 billion.

Daily basis, and the overall retention rate engagement level. Our user base is also very very strong there maybe 12 months retention rate of our.

Uptick official member taken after 100 question tapped they are also above 80% all of this maintech.

Would achieve.

On the environment that the over on Easter increased significantly. So this is another set of insult that demonstrate our quarterly.

I will use and doing all the growth through through the third woman. The enabled around that she is looking like for you from where you want to supplement our passengers.

Yes.

Okay. Thanks.

Maybe boxes are the whole till it's easier for me whether through what the wasn't done efficiently through their way through.

And just in time as you can see our.

Hey user.

Experienced very fast.

Our changes there has taken over 13 million this quarter, which means we're converting more traffic to paying users. The business had another very strong nature that supports that.

Yes.

Just a few TV that.

Sure sure Tom.

In the UK cohort meager designs on the Bogo your whole source enzyme warm and deserve some interim goal of as either sleeping.

Uhhuh incapsula borrowing.

We will wait to see that has new it Slater.

Either.

To dump would you need or what.

Searching probably between way would analog.

Well again, but you don't make his answer the whole well I work your way.

Oil.

Okay.

So in diversifying deal.

Yes, because it will go through this includes our should the need.

So according to the latest Cynic report the overarching Bdcs there has already reached 850 no.

As the adoption of five key technology will probably video will become the most common format.

Content consumption or creation five that's fine.

The overall videos.

It's probably going to be equivalent Canada overall entity.

Well the few derailments, usually tunable pervasive not Suzhou xin way pilots from top to them.

Everyone Naval nuclear cohorts analysis.

So you know harder leaders our in store there should be able to even guys. If you will see video haven't don't like to sell two cohorts are down there.

The reason why we caution you GDP TV in the press fashion on target.

Yes.

Turning because it professionally produced.

It has higher quality, we don't believe anybody saying no to higher quality video content and because.

We think that all the video users could potentially be futility.

There's also a real wages Wheeler.

Shipping quality, which you should routine initiatives.

Sure, yes, putting his new role we're really passengers.

Clinton doesn't have anything changes.

Uhhuh fell within that kind of up to the worse, it's our job.

Now shifting your whole since there's a woman 30, and we'll keep conducting Tim learned that these estimates you can't goodwill insulated metal.

Thomas This is is that you got a machine.

So this is Rick you see this hundreds of wells so either Harvey book to Bill So collect.

Sure thing that we like to selling value who there.

Style young.

Ladies and begin to the end year.

Earlier today.

Tom unions are going to them.

Two with single city messaging.

So we believe in the near future everything will be video light.

Which is a great opportunity for billing billing and from what we have observed that.

We believe video as not just pure content or communication has become.

Third as far as a scenario or an important part of entertainment based on what we have seen so far and there's a trend that everything marketing related it's become more fineline and there's tons of users a study learning anything in.

General knowledge on belittling sentences video become a format.

I guess, gaining knowledge and in the longer term we believe.

It's been at the new connector that next.

Right.

Yes.

Hope that answers your question down.

Yes, indeed, and thanks very much want to Tyler.

Your next question comes from a line of lays bank. Please ask your question like.

Hi, guys and I feel how our go to take on something that yet although once you sure why youre, saying, Oh, sorry about that seems that you. When you feel you know kind of I'll say or CJ part of here within guidance on quiet you should last year, which I. Okay. So all in that same Bachelor should you undertake any and all you got sale she's hung up I don't know smoky without.

Okay. Thanks, I know she should handle majority stakes your book, Okay. If I'm in late fiscal year that same hail Joshi somewhat tankian Seo Seo with it then John.

Friendship, what you're down our satellite on the part that I mentioned that you can guide I.

Yes, our fab.

My questions name. They have also commercialization up now and it made Oh, we have staying strong revenue growth in fourth quarter up dunkin, especially last.

We also know will take some positive developments.

Insulate you knew they can't life, Jamie I'm could management share a little color on the accurately have made.

It actually our policy with life's Jamie and also wondering gross out you know now again net in light Cheney and advertising incentive.

Thank you.

To supplement Omega three volt central tender Lillian has result in that woman do you see you'll see year with a nickel who do you submit them again.

So.

We haven't checked our phones.

No game business plan or static.

IPO.

Women.

Since you Doug.

Both so we're going on can you have is on your whole tougher to you on the maintenance on her rahho.

Or easy to thousands or you may want to relinquish.

We feel players who can then they won't be able to have Hindus. Yet. So you want me of which the suit us on an achievable huge donated over the whole syndrome. So through all that vertical signal would appeal the whole ceded losses that you around what actual anda sales a year with up to though.

Because there's a little has the power they'll sort of attitude internationally.

From every part of our like rock Haptics, and that's always a emphasized by blocking but really as.

And the ability at based on current.

Content ecosystem, and we have not been interest gathering around that is really kind of staying alive entertainment content, such as animation and Oh, there professionally generated content.

We launched our premium membership services to satisfy their throwing me.

And if I have two.

Talk about our strategy again.

It's still come back to the same logic that may happen so understanding.

Right got it right.

Well remember thought leases at least on pure Julie will know Cordova you go.

That doesn't seem that drives home the Gulf War, you're the only thing.

Oh sure woman she won't get help altogether.

We'll try and they will no doubt.

No I haven't really that itself.

And.

Our strategy is always to extract NAFTA loyal engaged user supersede the TV at the same time to provide them like rock house and content Oh.

Oh TV content.

Satisfy their growing.

[noise] Megawati woman the to the doses.

You can go here.

We brought this order when I will now then yet some of which two possible probably going to federal Kinda cousins, obviously, you got to see that payable.

People to the filling that capacity to Tom Huh.

So in terms of bed growth potential of our process.

We believe.

For many years to comp will maintain a high gross rate or more to be longer time on to be more specifics regarding the highest growth rate will be over 100%.

Our data Harding away either to the mill that wasn't as high a young monetized.

You know what railway.

Warm and sunny apart, but results achieving good.

I'll start with.

Our to the board.

Actually your new woman with Yahoo, you'll be woman and they will soon have greater little whom you didnt listen tend to will mention a more certainty.

So I avoid using monetization when we talk about our commercialization progress. It's because we believe essentially our commercialization process is providing Easter better services.

I'll say more premium content. This is Ben century for RG <unk>.

Okay. Your next question comes from the line of Alex loose from China over nice on please ask your question Alex.

Sure.

So when you go confused why you wouldn't you could see doing jumping ship.

People, each I'll say on them Nokia's your traction.

Okay, Concannon central John Hi, haul chickering charcoal falling into even though I mean should sort of challenging the sequential.

I would imagine why don't go chase elements, you're sitting at junction.

So I can't I shouldn't be that you got trulia that she was you probably don't attrition that she does she national leadership team.

Thanks for this opportunity on my question is on sales and marketing spending could have management providers.

Some breakdown this quarter's sales and marketing expenses and also could management share more up.

Updates on this year.

Fred image upgrade.

Our recent platforms branding initiatives, we thought it.

Pretty heated discussion among users. Thank you.

Okay, I like our detailed question and the Callaway [noise].

More color about.

Right.

As a.

Tom and Jerry mentioned, our unit growth if you know the top priority of our business and this year. So it's also the cornerstone of our you know commercial monetization progress.

So if you look at the or the numbers the men component for marketing expenses.

China promotion the channels like our store as well as some fee that channel and our plan publicity activities as well as fall again relief and promotions and our sales staff that ramp bonuses.

Incremental party feel compelled that with our Q fourth numbers are mainly for the channel promotion and the brand activities.

We don't guide to you know very specific market cause the target.

For financial profile, but instead, we monitored or the ROI very closely to ensure you know.

Hi quality user growth at the division will be made according to.

Most of the quality and quantity.

Observations on on that all the newly added a users including back activity takeaway for example that you get rotation level.

Hi, most Ben and average daily TV and the you know.

The third numbers out they are reductions.

When the market opportunities come under the ROI.

Our from you know a reasonable and we will continue to invest.

At same time, though with the deepening our you know a commercialization progress.

The new users we see they also effectively converted into our paid user.

In Q1, let me address increased by 70% year on year, but a number all paying users.

An increase over 100, a 30% year over year.

And the overall paying ratio also improving.

So that demonstrate that we still have grown to raise helping ratio as it gets better long term return from our UTI strategies and.

The user growth were also lead to the note the growth of the topline you'll see that the leverage is still there.

The topline increased by I think 69% in Q1, and our gross profit increased by 180% didn't mean, we just need to accelerate our commercialization poleglass dunno together better return from our investment.

Currently we have over 10 billion cash reserve.

After sonys copper injection.

And all the strategic shareholder Gaslog very supportive while user growth.

Duty and generally you feel one I wish you generate positive.

Operating cash flow and action actual cash burn for killer, just like 200 milling.

On the which are much less than you know the pure at a lot recording okay. No payment. So the financial status is quite healthy.

We believe the market to booming and those opportunities do there. So we just on the right track.

To catch those kinds of opportunities.

So I will let can you comment about the.

Brian upgrade program.

That's a that's what's your thought long and Apollo missions O'donnell.

Thank you show without Yelchin insert some helpful. Either yeah. We don't call then that's out there.

He doesn't it doesn't include approximately twice over the course, who dialed into the field, you'll know that we laid out of these as it is only mostly the latest alcan, let's hold them.

As you can I already.

Earlier this.

Mr. Gross will be our primary focus for Twentytwenty and we have set up a comprehensive plan to our.

In 2019 last year that include two phase brand awareness.

To correct by selling this perception of how brand represents our Salazar content vertical referenced then.

And among users or content consumers.

Hello.

Well no traditional debt leases that hasn't how should I thought was our job is also shows you. The just the EPS I was going to yet quite a lot quick apologizing should I think on San Carlos Delgado, Shortly yes, I laid up ships.

From late last year. They have tried some independent marketing campaign some of that some of the in some of the events you probably already the.

On the air one is that our investment in basketball championship leases legend.

And our mean hearing just kalla and the notes they sent a day you stay a campaign regarding the new generations and all of that have a have excellent strongly but our existing and potential suitors.

Oh, it gives us what's the wireless groundbreaking how does a label villalta layout.

Without this late May also this is essential to see how do you guys. Yes, sorry, yes without passing this is out of the luxottica Tulsa billions of dollars you like he does which is.

Yes, it didn't sound a little bit horribly doses that should not event. So that's something like that.

In addition to more also actively promote our client verticals within diligently ecosystems, such as studying that hasn't blocks letting people know that go to platform to consume that Oh content verticals. This is also helping us to raise more brand awareness.

Yes and platform out there.

Tokyo, either the rest will do that should help I need to pay time now all they said that they see via the internet horses really assess its use all of these items that sure. That's I should say well. So that's why I shouldn't holdings I leave without these items I certainly don't go much how lose all the dental ago equity affiliate.

Oh from Q1, creating data.

It's already pretty obvious that the efforts and initiative that we take has quite significantly raise our brand awareness and influence among internet users that age between 15 to 35 and Oh, we have taken a crowded out what we have done so far.

Hey, Seaway licensees of our massively talk on board has also enabled US fruitful are thinking can lay that out post media placement and yes, I think I'd tell so although I tell said, yeah I thought I hope all doses Ollie's army on when she was a lot so going forward I will continue.

You too.

Promote our brand to online and offline campaign will create sustainable create more events and we'll continue to educate our he cares about our categories and our content offerings.

Please I realize this is a very light, yes, well that was laid out as I don't know that it appropriately folklore, just should be done does she told them Lou Addeo don't seem to gather why did it about is on the impact how here again depends on SEDAR Saddam plays that should that portfolio convention.

So going forward will going how were going to launch a serious a campaign in terms of raising our friend Oh wearing as our brand mission and positioning to punch as online and offline activities and the time timeline will be surround them.

Several important important a time stamps for example that graduation season, and deliveries and investor as well as some of the tapes.

Saying here, while she doesn't dahab.

They will they don't translate into some of that especial Novvi sabal, you'll see a girl Dell.

Yeah, everything else only DSL he will be at a portion yes, so yes that today.

So.

So tomorrow on March 20-F S. As are also very interesting time as the year, we'll walk will collaborate with a female thing or are we to launch of graduation theme song called through.

To to allocate that to delicate the song to that no generation that if that's about to graduate from.

And then turn to society and well framework for we quite look forward to that to me everybody.

So, let's just yet.

Yes.

Your next question comes from the line of Wendy Chen from Goldman Sachs. Please ask your question Wendy.

Yes, Hi, Kendall and Kylie essentially I think it's essential that achievement I would when she should play when they go here without I guess, you tell you how clay you what Matt when Israel with like Italy, I talked a number for them. It's I tell that they have woman do you see a shoulder to shoulder modules.

He will then say I totally shut down the he or she cultural integration.

Well, if it doesn't that Josh it sounds she won't nationally only Atlanta, Georgia, finishing Joel efficiently.

Hotel, you mentioned values have well nishida genitals initially so you'll hear from Endo, that's where they tend to grow.

Hi, Thanks.

As mentioned in for taking my question. My question is related to the model can business. So just a follow up on the previous question. How do we foresee the model can business gross for the coming quarter concerning many gamer potentially have assuming work at school Atlas potential reduce it came much getting tight and my second question is regarding.

Since we're doing some very innovative contain two marketed our new title. Please disconnect wondering where we'll utilize such a marketing tool kit for the future games to be launch and lastly, I'm wondering if management can share your insight on our strategy operation with Sony in term of chicken business ex that much.

It is eating the woman, you'll see that either through the year was to use on the uniqueness embassy suite of a legal or material could the Hollywood and all of these are two parts you pool. So with this young woman birdie when you'll hear room I feel it seems ingo within that Nick.

Total essential cloud density, where you'll see that who pay it hurts you combined in other about how Mega article how does it seem to make a woman Berger, who bailing, it's usually culture downgrade of course.

We look at single you'll see with.

That's a good though the pipeline that either take undue hagerty called it.

So we actually don't believe that although a pandemic have endpoints that are games business actually.

Our confidence.

Throughout the rest of the year with Arking business. We currently have 30.

Exclusively licensed games in our pipeline eight of those already acquired approval and maturity of the pipeline, our domestic titles and Ah relatively smaller scouts our from imported titles, so et cetera, very healthy component.

We'll go to reengineer the lead us to visa and things are today, we'll see the fighting on that either really plutonium by fit to work through the introducing this our country's looking how the woman the.

I would just color years, well show up the whole has with record of up and they go yes. They bought fiber lasers. So listen there are too hard to the tune, Michigan you'll quarter you go.

Hey, like whether it's a C class bulk Bailey.

Oh I'm sorry.

Yes apprentice connect we believe it's just another strong testimony of our strong distribution.

Our power and our people understanding in terms of 18 TV game.

Before the game launch picking had over 6.5 million pre registered users and centers will be on April 16.

Top.

China I will ask top downloading chart four week and tough.

Okay.

Our fourth and reach the number two on top smoking and based on our a strong execution, we believe that that's.

This is a very very successful that.

Very susceptible.

Well I don't really to get through it.

They don't come to me until two years, you really tiny nurses that we like to softening somebody that's unusual.

And they made the same data and feedback that we haven't seen we believe that says that.

This is going to be a tighter with.

Very long lifecycle, probably over three years.

If you look into the internal that's a photo really Google They did have shown that.

You are saying, we'll see if I can only the do it doesn't mean.

We're really Easter fell to war internally are seeing you'll see fighting.

Issue before they get yourself artistry, Joe woman named.

Moving on the Union only woman said, some key vertical finbond RV Youre sure chagrin waterproof on quota to the you also have achieved this season.

So I I mentioned.

Thats, a connect and they're not they're strong testimony of our.

Distribution tower in terms of 82 games and we are becoming then inevitable cannot in China to launch agencies related items and we believe this advantage will further expand.

Our overall community getting bigger and our overall cajun user in game or become more active.

Oh, well, then senior level home liquid Scone woman confused to the ARPU is hitting you show one Johnson difficult Copays younger you're sitting here talking for the quarter, where you really see recorder someone who will that especially in light of home and accordingly, I wouldn't think he or she knew somebody liquidyn your quick.

Published.

And going forward.

Some more with our how we extend our content verticals, we'll also see too.

And our game offerings into more high quality content high quality title and we are quite confident this will also be very successful.

So.

Okay.

Oh My goodness uses the so you could.

How did you see I want to each of us on the boxes, a richer you'll see how here don't have to hop on the local door sliter positive that trigger some vehicles, what's really the pool races that you'll see that will help them enough wiggle room Adobe Castle.

So are we needed to have them half a long standing relationship with Sony before the equity investment were already are working with our most important.

Multiple business aspects, including animation and schemes and with a strategic partnership we are going to further solidify and bring our partnership to the next level in terms of animation and I'm looking.

So there's always a tone, yes on leases and show you love them cooking either in dollars. So.

So he doesn't have that opposes differences on its own could be done a worldwide how relied aside I'm.

So were related to go when they only sufficient I just put into that I'll do that because all they send you the Delaware basin thesis on religion, hopefully hopefully.

Well I don't like Philadelphia is also showed up this is I don't like say, though he's on the people took a lot you should get pulled they see divers for me to central Ohio. He was almost immediate alone.

Well go to close all too much we know who did not know cool. So you worldwide, we love Sauceda.

No not future.

Sure I'll call them wanting to add something on and so first of all Tony So what leader in terms that entertainment and technology and Sony Siekaczek investment.

Really demonstrate their confidence instead, we believe growth potential and our unique positioning in the China The entertainment market.

And on top of animation and games Mr. Chen mentioned that we are also hoping to work with Sony on other aspects, including odd that including me say as well as movies are hoping to really bringing.

More world class premium content to satisfy our so going to eat.

Oh, okay.

And your next question comes from Alex Food from Morgan Stanley. Please ask your question Alex.

Okay. They are funny, because your additional what it to you and what do you want additional ways yard.

Jim So easy to retain sort all you can see the either and the you know.

No no human she should senior and we didn't bother you to share you didn't pick on 15, Oh Gee I mean, you're already are they eat.

Maybe I'll, let see equipment they seem to do the shotshell, though.

I'll go into so when you shack, Ontario to dollar P., New TV service. So I can't wait going is just wondering if you don't duration.

A little bit looking tie those yole, so long Joel gay and order, so I'm going to come true.

It's up to shoot sometime later on time and ill have bought a john seem to see leaf.

She wasn't money from them occurrences and up to the Lucerne her comments I see talking tie it all anti Virals sorry, just wondering if things don't.

Yeah, I'll kind curious if you would you need a quite Bao Li woman Guy choosing the current just yet.

I translate my question. My first question is regarding EMEA your targets.

As we already achieved one point in more than 170 million any use in first quarter.

Should we expect to revise up to full year target and also next year.

Second question is related to PDG the competition or there are many more platforms, allowing content creators to upload platform and they also provide a lot of easy tools and cash returns to these content creators. So how how do how should we see the ROI.

Okay, you TB in future. Thank you.

Oh, well then.

Okay, and then they do it seems like how will they feel suji capitalizing on wonderful teach would you do not even beyond the whole three examples of how to the left home is also for the.

Hold me to take us with great to see whether you would normally there's always room night with where do I want to pitch you doing some to countries within the data.

The other parties with you for Greg Good Jews, Israeli probably wouldn't view.

I'll be done today, so yes, we do see and the good news on your broader meager due to the obviously, we don't have shrunk a film will create handler, who would have have all references to realize that border make the seasonality will come close to that woman.

To do you want somebody would you ever be it sounded like approved on me, but those are the ones you people, who happens to do tend to kind of how your question.

Three though huh.

So what kind of each vendor similar things only would you be assume or somebody over the years about.

Partially as a woman's that we're going to central good order.

Your job.

The whole if you'd rather defer you'll be looking highlights eager to somebody who won the opportunity within two years as acquisition you end up with Undrawn. That's how you see the townhouse. There's always some of what was it obviously it will not go there was kinda Rcs Navidea is all the time zone.

We're really it's a legal he's done turns over say no to adult 'cause reward measure.

No long scenarios here for 22 million problem.

Let's turn to the C. wonder he was here.

Yes, the usually but maybe in terms of Vietnam split up you've done though.

Well, that's just wondering on go toward our.

You also those homes, Georgia.

Not open doors or whatever.

Oh you it.

No one really to take bigger.

Leasing highlights for how you guys authentic about is fortunate I really fortunate enough.

Real published Humberto Highland go to quit.

That does that well see that sentiment product suite sylvia's are committed to date that everything is called absolute depicted in Taiwan.

Oh, yes.

For those two little pockets in the city.

We don't have much coming from a quick look in Brooklyn.

As always you know what Congress will sort of Bbs projects.

Okay regarding your first question on a user target.

We are popping interesting [noise].

Achieved our user target in advance.

When we get there well, we'll step further about raising our she's or target and your second question about a competition I think the essential.

The foundation of your question it relies on how how we are able to keep our content creator or essentially how we aren't going to grow our content creators and as you can see from our Q1's data that.

Actually we have experienced a very fast growth in terms of our ACA content creator and air content creation and number of content creator with more than over 10000 followers are better the growth rate. It's also expediting all of that means we have cultivate a varied.

Healthy ecosystem that allows our content creators to roll on our platform and then.

The maximum behind that is to truly respect the high quality content and with respect to high quality content creators and always but I put the quality.

And our priority, it's much easier said and done you have to Princess.

It's not principal work over 10 years and to make sure that mechanism that helps you keep attracting and retaining those users. So that she can as you can see actually the old top content creator are staying with us.

Growing with.

Yeah, that's Ah I think that's the key competitive.

Yes, they really have compared with other competitor.

[noise] [noise] and that concludes the question and answer session for today.

I'd now like to handle the conference back over to management for any additional closing comments.

Okay. Thank you once again for joining us today and you have any further questions. Please contact myself gilliam everything here, our director or TPG Investor Relations, our contact information for IR in both China and the U.S. can be found on today's press release.

Have a great thing.

Ladies and gentlemen that does conclude today's conference call. Thank you for all participating today you may now disconnect.

[music].

[music].

[music].

Ladies and gentlemen, good morning, and welcome to the believed really Twentytwenty first quarter earnings conference call.

Today's conference is being recorded.

At this time I would now like to hand, the conference I budget Juliet Yang Senior director of Investor Relations. Please go ahead.

Thank you operator.

Please note that discussion today will contain forward looking statements relating to the company's teacher performances and Ari tended to qualify the safe harbor from liability as established by the glass private security litigation reform.

Such statements are not guarantees of future performance at and are subject to certain risk and also there Nike assumption and other factors some of the Swiss faster RP on the company to consult and could cause actual results could be part of a fairly from designation in todays press release.

Discussion I cannot discussion of the receptor exactly that's really doing that isn't it.

Actual results include it is true filing stuff the company with a secure security that exchange Commission. The company does not undertake any obligation to update forward looking information, except as required by law.

During today's call Magic will also discuss certain non-GAAP financial measures for comparison purposes only.

Definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP and actually go.

See but 2024th quarter financial result, the adult needs to be able to ensure earlier today.

As a reminder, this conference call is being recorded in addition, and Investor presentation and a webcast replay of this conference call well be available on the deliberately investor relations website at <unk> IR Dolby literally dot com.

Joining us today all the calls on Billability Senior management are the Chile, Chen Chairman of the Board and Chief Executive Officer, Ms. colleagues, we vice chairwoman up the board and Chief operating Officer, Mr., Sam that Chief Financial Officer, and I will now turn the call. Thank you Mr fan who already preparing.

On behalf of Mr. Kim.

Thank you good.

Everyone for a good taking all the time to be 24th quarter Conference call I'm pleased to deliver to take opening remarks comp at hop on that.

And that's not to get off to a remarkable dog well, probably keeping people I've got to resolve that you recalled we'd be our key operating advantage at later.

For the fourth quarter, Oh, and they will grow by 50% year over year, which we often get somebody who really know more about how many you'll grow you know foster at 77%.

Well, you know 256 knitting, Oh, you didn't get level, although we couldn't you Hart our news achieved a major milestone uptick the lots of things he only up to 51 million.

I'll now we thought would not do the number we saw striking creating a more talk any time span our club will opt combined it from Q4, two I agree to operate to tailor made it.

This is a higher level would have exceeded all cooperate history.

Got you think once again demonstrates our strong execution and high quality growth to deliver.

We attribute our success go increase when you bought Coulter friendly Dickey community as well as the include about weather.

Building on the tax that's all about New York <unk> Gallen event, we welcome the more you do though.

Actually doing the extended the with the holiday.

Really beauty is becoming Bailey people looked choice when it's come to cope equation and call assumption.

The two called in luxury we affirmed our user growth at one off all key objective and a great pellet cardiology and maybe more toward the country one to 200 truck emitting.

Well leave to say with a solid execution, our already initiative, we all thought tried to meet the target.

As we roll out more quickly content, that's relative and strengthen our monetization capabilities will have called working more talk that to paying user.

Our imputes grow by 134% year over year to any of course, you go to what formulary looks quarter.

But I do ratio also grow to 7.8% more than doubled crawl to do you have to go.

I would rather have you reached an all time high up on the 2.3 billing so popular pulp and al Qaeda.

More the RBC.

Over 100 Emily.

As I will talk like Penn.

Something increasing the operating like gross margin jumped to 23% into fourth quarter up from 14% for the computer the last year.

Marking the fourth call Ducs give quarter of modeling coupons.

Our strategic partnership also expanding on the heels off agreement with Tencent and Bob while we wait thought it would bring our longstanding partnership with Sony within that level with U 400 bed and you have gone after the last month and been this collaboration.

This agreement with drug to bring even more what cost enemy and mobile game content into that dominate that market.

Well the intensity how advanced because you know the sector.

The equity investment well not only few off due to growth, but also demonstrates gone is copies of the hour you live condition and the growth both died.

We've got all of you are the not.

Now I'd like to walk through some of our initiative and the trend. We are seeing you drop all coelce halcon community and the commercialization and how they fit into our long term strategy.

I will begin we've counted baby BT has cultivated one off the most active and Glenn delay environment for our crater. We took a you know the Apollo content actively you talked with user camcorder fan base et cetera.

For the agree that it'd be to have become many people go twice for Q TV equation, especially during the extended the winter holidays when more people were looking for ways to express themselves.

We thought to connect with an increasing the number of active come equator and the video submission during the fourth quarter.

We had about 1.8 million can equate to uploading 4.9 million videos promote representing increases of 546% and hundreds of 48% respectively. Both year over year.

With a growing number of Waitrose and the effective operational campaign, we are getting even more type work and innovative Congress ambition and the further increasing our mark Matt Mckee fuel for the fourth quarter, our most heavily focused as well because were lifestyle gap and the payment animation tuck in audience.

Our lifestyle due to extended holiday.

People are looking for ways to undertake themselves once they got at home, we actively promote subcategories that drug Cody all opinions and broke Atlanta people look for ways to Cook.

They fit and express themselves.

Similarly jumped over took entertainment vertical and we look at five ALC and content library.

The call me the whole perform more and more gamer.

Without risk.

On the show we picked a new that Sony music, our new their content is also I trucking are growing amount off topic, given your field Universal appeal.

Yeah addition, we expanded our technology education has a great you order to support those looking to catch up on desktop, Dave London, a new skill or simply getting more generally molecule in the long quantity.

Turning to our OTV business building how are you that's off the last month and kidney there have been good estimate documentary and other categories. We continue to put I'll OTV library into valuable IP assets, attracting new users as well as come running paying user.

During the fourth quarter results that they really like all the model. Okay. So all of your tolerable IDBD put your targets enemies CRM gift high quality Crs quickly get over 100 million video view you left as of today, that's a new record while OTV history.

Not only are letting you and have access to all platform, but also called work at a comfortable amongst our premium number.

Similarly, we further expanded our documentary enterprises show offerings, our truck border audio.

I would rather to show animal hospitals, either too when we you are and equipment out of China. Hong here a documentary how do we called produced will cover rate. While also welcome to buy Miley pad, that's how level show lover, respectively.

Turning to our community and the mentioned we are seeing recall high across all of our point of view. The matrix. We did last paid flux flower community the quality of our platform our content our use of our golf you look longer.

Fourth quarter, our data video view, which I recall high off 1.1 building up 113% year over year.

Our user will more engaged with coca each other than ever before.

And our overall committed retention levels will improve.

Your first quarter, our user generally richer nearly 4.9 billing monthly injections, so liquidity Todd's comment life and BBD moment, Pope more than tripled among promise empiric in 2019.

Members of our official membership auto grow at an accelerated pace in the first quarter by the end of Q1, we had 82 milling official numbers reposted. Our head of your question is then 66% year over year and the 12 month through a touch or rate for the views on the met high as well.

Well above 80%.

We all community engagement and retention levels continue to be excellent indicator of the quality of our user growth.

Turning to the our commercialization progress our book to review the status of again business.

Why don't you will fall again include 32% year over year to RMB 1.15 building.

Accounting for 50% about total fourth quarter revenues.

Order will have Geo delivered a real both pro forma for period. Following a major content update other exclusive license titles that try to lose a lot of fuel Jamar also continue their popularity during the first quarter.

Pro we love to the highly anticipated tried but at least.

PG because come that it will get you.

Exclusively licensed again, what they need to hate attractive relative to our player and talking Tyler iOS download and growth in charter, we know we talk to release.

Got a mill phenomenal success helped us relief with again prove out strong distribution power and get the standing update digital marketing.

I will just to the occur again, although continued their growth momentum during the fourth quarter, you'll get relief updates of our CNI.

Hello and.

Well, well combined many existing and new player.

With an increasing number of Daimler gathering and more efficient distribution operation our platform and inventor Bowl.

Channel form 10 developer, who want to maximize their exposure to quality player and with potential new fab.

This year will be further expanding our operating refilled the high quality can you all upcoming Chem topline. We're looking forward to further diversifying our portfolio. We have eight household and head of our cloud approval at the schedule to be relief in the coming month it.

This includes analysts pit once you are assuming I think you titles that we plan to go all this summer.

On the drawn to the upper together throat, well continue to walk, we leading gamco railcars to bring our you do those putting again, attracting high yield detection and that is how reporter.

Turning to all of that business.

Revenue from that increased by 172% year over year, which RMB 794 million in the fourth quarter. Our growth was mainly driven by increased contribution from premium member lack of coffee and other value added services.

For the parts our video content ecosystem, we continue to increase our light blocking offerings and increase our lateral cutting penetration among going you the traffic.

Our investment of top notch book IP continue to fuel our use of growth and attract more labor costs and hope to our platform.

We are seeing more pilots agencies and the individuals tend to BT beauty to grow that you will front, our fox developing platform.

With that text to access to our school.

And then both had become accustomed to payroll for high quality content.

End of the fourth quarter in loan growth reach and exciting milestone exceeding 10 milling, while we call it 10.9 million subscribers.

Represents an increase of 127% year over year and further demonstrated that value that represent a golden cohort with a high within the to pay for getting entertainment material.

As Paul the tightening beneath our rapidly growing community and included in brand equity comment to make BBB, a leading platform Viper Tyler.

The Mako heavily revenue for our title segment continued to increase year over year likely put them.

240 million in the first quarter.

The leading threeg industry verticals.

Moving or E commerce.

Yeah.

Threec product and the top three verticals for performance based.

Well, I guess education and E commerce.

As a tie those are seeking out new and innovative ways to increase visibility and all I turned out represent a popular heavily atop the avenue.

Beginning fall this year, we hold the multiple on your part allowance called front, including Qualys vivo Opel at Mcdonalds.

We expect it offline to online marketing connection well continue throughout the year.

What about tied up in other industries that the Allah adaptation and E. Commerce also seeking out our platform to include the brand which.

To summarize we had an outstanding fourth quarter marked with excellent growth across our company operational and financial metrics.

That was attributable to the us off the motion in building a healthy content ecosystem credit a community and the improved commercialization capabilities.

We're also pleased with our strong execution in raising our brown wind is growing our user base as well as forming high level strategist upon us.

During the early probably talking momentum, we will continue our user growth strategy being pulled out talked long and drawn value for all of our supporters.

Our global community and our decoder.

This concludes the Mark I will now provide a brief overview of our financial results for the fourth quarter hopes and returning a.

Total revenue increased by 69% year over year time be two points good billing exceeding the high end of our guidance. We've got 50 50 revenue the bargain and then Gambian that we're pleased with our commercialization cold weather and the implications of the diversity.

We are also called work in more and more all our target to pay into.

Then the average number of most likely to the.

Increased by 134% year over year, reaching 13.4 million in the first quarter cost of revenue increased by 51. Then you will you be 1.8 billing revenue sharing cost a key component of total revenue was RMB 880 line billing 61%.

Increase qualification period in 2019 gross.

Gross profit increased by 180% year over year to RMB five penetrate and certainly we are also starting to see operating leverage from our diversified revenue streams.

More revenue contribution for higher margin business as well as additional income from paying user our gross profit margin cardio to improve.

At June 23%.

Quarter.

Total operating expenses increased to RMB 1.1 billion.

I'm, good and that 17% from the third period in 2019, selling marketing expenses, what RMB 606 million representing a 233.

What does increase year over year. The increase was primarily attributable to the liquid chime, though at a marketing expenses appropriate way babies ops and Glenn.

As well as expected for GAAP Covenant mobile again, and the sales and marketing personnel.

Building on the success of our new years Eve, Darla and I've gone through the demand during the extended holiday.

We've made additional investment in blending and the channels to further drive unit growth at the reading bass brand awareness.

Which we believe well yacht considerable the term loan.

General expenses, what I'd be 171 million represented 33% increase year over year. The increase was primarily due to increased headcount in general and other liquidity of personal an increase of share based compensation expenses.

R&D expenses was RMB.

297 million of events at 60% increase year over year. The increase was primarily due to increase how cognitive research develop personnel.

Net loss of what RMB 539 billing what was called out till the advantage compared with RMB 196, mailing lists and period of 2019.

Yes, no lost an analog which are non-GAAP measures that you could share based compensation expenses and amortization expenses related to intangible assets and our cloud to believe acquisition, while on the 475 million compared with RMB 445 million within period, our 2019.

Basic and diluted loss per share were RMB 1.62, adjusted basis diluted net loss per share on the 1.46.

Okay up one global fourth sorry.

As of March 31, Intelligently Photonics investment, we have cash cash equivalents.

Before that as well as short term investments of RMB, several or not billing.

While U.S. dollar 1.1 billion compared to RMB 8.1 billing as off Decemberthirty one 2019.

To further grow our business, we plan to improve our monetization by leveraging our consumable and growing traffic. We also see benefit in further expanding our diverse revenue streams and continuing to improve our payout ratio.

Longer term, we believe our monetization effort high paying lower commercial rates and scale will yield and improve the bottom line.

We've got in March we are currently projecting revenue for the second quarter of 10 to 22, cutting RMB 2.50 billing and RMB 2.5 by building.

Thank you for attention, we will look like now to open the call well crafted operator. Please go ahead.

Thank you, ladies and gentlemen, we will now begin mcewen a session. If you wish to ask your question. Please press star one on your telephone and what's your name to be announce.

Please for the benefit of all participants on today's call. If you wish to ask your question to the management in Chinese. Please immediately repeat your question in English. So once again, but is now one.

On your telephone if you wish to ask a question.

Okay. So your first question today comes from Jialong Shi from Nomura. Please ask your question.

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I'm going to boil it down which it all Glenn is fundamental Gilman.

She can you share yeah color.

Same shop.

Congratulations on a very solid onto my question is about.

In a few weeks.

So the acceleration in this quarter.

Management give us some tenders on how much of the gross was driven by the end damage.

Thank you and how much was organic and lighting, China is getting back to normal how should we look at the trend up your EMEA gross concept pandemic.

The new users of higher in the quarter how.

Engagement level compared to all those of old users last night on China's TV markets, who just give us some hundreds and won't be the size of the user base the second input potential and reach thank you.

Hi, I'm, not or you're going to go if we'd argue that wouldn't dealer.

Steve Other Glenview, Illinois, the too easy to sort of say how hard it real well those are or what you there will be over those out literally all your new seasonally outgrowth Eagle Hodges yields are then they will go into softer the names on how to this little more quarters, Yeah sure dance, rather they are gonna go through or related.

Chordata will seem high the meager you've got leave you will not go in Europe.

Of course is appropriate.

First question on.

Menu. Indeed, we had an outstanding first quarter in terms of user growth and we believe that winter growth is.

Two factors one as.

10 years, Silicon motion and bell patient, gaining a healthy content ecosystem and friendly community to ensure that we always have the highest quality content offered to our meters and second of all as our continuously raising brand awareness and are actively festival.

In addition strategy.

Well, it's nothing about Dahlia Golden Globe factor those are the season.

You mentioned the realignments hallway tens are.

Using anterior centers all of its always.

Commercial.

And your ability to go to tell his answer.

So let me reiterate a broader teams offices will deliver and put other currencies on the new.

Robin you have already experienced that there was any has become not only for the younger generation, but more from my math Marquette Paul first choice when it comes content.

Creation or content consumption, and there's more and more chatter step out what type of media they've seen.

There's a little done there's still the digits uses of who will you may eating into the taxi and talk this is a male granted.

So all of that.

Factors that we've mentioned, but actually ethnic continue.

The extended holiday, we felt by the fact that where your weighted the yen Tom It's actually you have to warm and.

We're going up when you look we're touching on its absolutely on track accomplishes two.

Well, we believe that Nick only helped us to accelerate our he's across process.

I will not change or become a main soccer how are you there.

Going to get to relinquish approval.

Good.

Yes.

Thanks.

Okay. They came to US is an acre deeper negotiate soluble meager, Florida is although maybe some color most of the harder if I got to kind of go for what does your your end, where we live within that you see all content leads us into telecom networks you thought it was a one real way what would be easy to the too.

The real we're going to probably with from the view the whole.

We've seen five attack the antitrust Italy's approval hopefully the harder work their way lateral mcarthur crude that woman around could handle we go with those up.

So.

Regarding your second question about.

The major trends, it's trending off airport returning back to school work there as I mentioned earlier, the accelerator user growth that we see in the first quarter has more to do at the fundamentals of our company and extend the holiday only help us to accelerate process.

So we are still quite confident in the second and third quarter, we'll still see will still be seen.

Relatively.

He said.

Later.

Yes.

Yes.

Thank you.

Okay.

Right.

Got it.

On fuel would look like relative to the positive CBU measurement ship is all your answer you mentioned working with Lucille we're looking at news articles or Youre, not seeing all quarter to the lie ahead.

How about resources.

Sentence telephone.

In terms of new user profile that we see in the first quarter. It has.

[music].

Theres no difference between the users and the all users is still majority beyond younger generation their average age at around 20 years.

And over 50% of the new user comes from there.

Tier cities Formula or Warnaco, you'll go down the.

Both.

It's a warmer thesis is that Tim conder, some hedges out the whole woman sell outdoor they grow Uganda legal Google will increase kind off.

Formal over the should realize huh.

I'm, a little doubt that principally on the dealing with and I guess deliver deal. We also sort of up to your order share ownership.

Regardless of the non-GAAP obvious even though the hole in the shipping more forcefully hopelessly taught us even before this review it kind of the FLIR one of the you'll corridor from gossiping different dotty passionate about coming up with 200 years due.

Sure. They all know that Dan this is Brian.

Our get a lot dirt.

Well the loosen legalize weather wasn't easy to Joe's candidates and view, yes, yes, yes, maybe alcohol gives a patrick if possible.

So in terms, it's easier for us we never just purely focused on the quantity, but we always pick the quality first as you can see from that there may take our I mean, you grow 70% young here are you also grow.

69% young here and our.

Hi, Thanks for getting increased seven minutes quarter over quarter too.

87 minutes.

Per day, and our video views circa 10 billion, reaching one point I am sorry.

1 billion, reaching 1.1 billion.

Daily basis, and the overall retention rate engagement level of our user base is also very very strong there.

Month retention rate of our.

Uptick official member taken after 100 question today.

They are also well above 80% all of this may tax.

Would achieve.

Under the environment that the overall user increase significantly.

This is another set of insult that demonstrate our quarterly.

I will you look and doing all the growth should reduce the woman that may look around that virtually nothing like that woman Houston real cool. So some dollar passenger.

Yes.

Okay.

The if everybody is are the whole criticism formulas is rewarding them, but we're going down CCRC, which should help.

So.

In time as you can see our Oh, hey, user so also experienced very fast growth.

Our changes there has reached over 13 million this quarter, which means we're converting more topic to paying users. The business had another very strong matrix that supports the quality.

Yes.

Thank you TV that.

Oh.

Sure sure Tom.

In the unique on call. It May go do it depends on the Bulgari hole for things that woman.

I'm going to more of a bigger strategic.

And with our variable that we were really to securitize new it so it's a receiver.

To dump with legal work.

Searching probably between way could analog.

Again, the usual, making things the whole well I was going away.

Toyota.

Putting on.

So you guys are sitting here.

Yes. It does it won't go through includes Holistically.

So according to the latest Cynic report the overall, our Chinese beating Easter has already reached 850 known.

As the adoption of Fiveg technology, we believe video will become the most common format.

Content consumption or creation why that's fine.

Lisa overall video.

It's probably going to be equivalent Canada overall.

Well it appears the real it's usually a stronger pervasive Nazis dormant chagrin way pilots from public through that.

Or when they were local could figure cohorts analysis.

So either Huckabee result, what really slow their shipping over Boonton guys Appeals the video how I'm going back to sell two cohorts are down there.

So the reason why we call few GBP TV the professional target.

The terms because its professionally produced.

So a has higher quality, we don't believe anybody saying no to higher quality video content and because of that way, we think that all the video users could potentially be PTC.

Users are doing related Wheeler.

Shipping quantities of its you should look in English.

Sure, Yes, switching gears a narrow.

We're really passengers.

Quintin mentioned there is a tough challenges.

Two elements in that kind of up to the worse without that.

We don't 16 hope so there's a woman's that any on what we have conducted 10 learns that these guys are meant to conclude or just today the signal material.

Thomas This is is that you got to Miss.

Tibbets history, you'll see that hundreds of.

I believe of a book to Bill color.

Sure it seems that we'd like to some value would it.

Finally on but later into the end of the end year.

Ladies and gentlemen.

Chunky rents are going there.

So with single assisting us with it.

So we believe in the near future everything will be video life, which is a great opportunity for our billing daily and from what we have observed that.

We believe video as not just pure Clinton or communication has become.

As a service for Aspen scenario or.

Part of entertainment based on what we have seen so far.

There's a trend that everything marketing related it's become more video line.

And there's tons of users a study learning new things.

In general knowledge on believe billing.

Video become a format.

I guess, gaining knowledge and in the longer term we believe.

Video, it's been at the new connector that next everything.

Yes.

Hope that answers your question.

Yes, indeed, and thanks very much like the color.

Your next question comes from a line Amazing. Please ask your question like.

Hi, guys hands on how our go to take on something that yet although once you sure why youre, saying I was just on your part of it seems that when you feel real time data offering or CJ part of here within Guy and why don't you should last year, we calculate that all along that same Bachelor should there be skinny and Garfield County, Ohio Mills Mckee Okay.

She should kind our majority stakes your book Okay.

Next we'll hear that seemed higher doses somewhat Tatiana Seo Seo with essentially golfing ship, what you're down quite a thought laid off on the part that I mentioned that you can guide.

Yeah, our balanced out by.

My question to name have also commercialization of nowadays it made Oh, we have staying strong revenue growth in fourth quarter up dunkin, especially last.

We also know will take some positive.

Manage a race insulate you knew they can't live streaming all could management share a little color on the accurately have made.

It is actually a policy with life's Jamie and also wondering gross out you know nonpaying Nick.

Like Jamie and advertising in cancer.

Thank you.

To supplement Omega.

Results also tender Louise crisis, or things that woman to see you'll see year with a new goes through to estimate and more vehicle.

So.

We haven't takes our concept are no games business plan or static.

IPO the women is this your dog.

Boy.

I don't have is on them.

So tougher to you on the maintenance on her rahho or where you're either 2000, Sir you may want to relinquish car.

Three years, we can then they don't give a block and deals yet. So you want me of which has helped us on the table you want to donated all the whole loan so through all that vertical similar with the table hold visits loss in the.

Regarding our actual under failed to deal with up to though.

Because we have a little has the power industrial production is going to visit.

Okay.

As a part of our like rock haptics, and that's what it always emphasize lifelock opting for.

[music].

And the ability at based on.

Digital content ecosystem, and we have mastered Mr sketch out there right around that it really comes down a lot of entertainment content.

Chest animation and Oh, there professionally generated content that we.

We launched our premium membership services to satisfy their growing me.

And if I have to talk about our strategy again I feel it's still come back to the same logic that way happy so understanding.

Right got to see there right.

Remember thought leaders at least on pure Julie warmer quarter, Although you go.

Got it seemed that drives home the Gulf War, given what we see.

As a whole host woman she won't get altogether.

Turning to nail on those.

No I haven't really that's itself.

And.

Our strategy at all.

Hi.

NAFTA loyal engaged user through person TV at the same time to provide them like rock happened content.

OTV content to satisfy their growing.

[noise] Megawati Orlando.

Going to war you can call you will.

We brought disorder with either realtime, yet some of which two both of them down.

Uh huh.

Kind of help and obviously you got to she said.

As a different equal to the dog policy to Tom.

So.

In terms of that growth potential of our process.

We believe.

For many years to comp will maintain.

Hi growth rate or relatively longer time on to be more specific regarding the highest growth rate will be over 100%.

Okay, the harder away either through the mill there wasn't much higher hiring a young monetized.

You know what railway.

There's only about three times with Stephen good involve struggles.

To the board.

Actually your newer members, who will be Orlando maintenance on hype later year adult formula reimburses into well much anymore. So the company.

The avoid using monetization when we talk about our commercialization progress is because we believe essentially our commercialization process, providing user better services.

I'll say more premium content. This is ben especially for RG <unk>.

Okay. Your next question comes from the line of Alex lose from China Renaissance. Please ask your question Alex.

Hi.

And I was shocked when you go confused why do you want multicurrency doing jump ship.

I want you to people each I'll say on them not guilty as you're trying to.

Okay, Concannon nice sequential John Hi, haul Chico's and Chuck will follow me three loan is just sort of strategy. The so called.

I would imagine go change how long should judge on production time.

Okay I shouldn't be that you got truly of associates, you probably don't judging that she's got a congressional leadership team.

Yes.

Thanks for this opportunity my question is on sales and marketing spending can management provide us.

Some breakdown this quarter's sales and marketing expenses and also could management share more out of updates on this year.

Mitch upgrade.

Our recent platform trending initiative, we thought it.

Pretty heated discussion among users. Thank you.

Okay. That's our detailed question Kelly will add more color about.

Upgrade.

As.

And our general mentioned, our user growth sq, even though the comparability of our business and just yet. So it's also the cornerstone of our you know commercial monetization program. So if you look at the order numbers the men component for our marketing expenses.

China promotion the channels like our store as well as the fee that trend though.

Our brand publicity activities as well as fall again relief and promotion and our sales staff that ramp bonuses.

Incremental positive feel compelled that with our Q fourth numbers are mainly for the channel promotion and the brand activities.

We don't guide tell you know very specific market cost the target.

For financial profile, but instead, we monitored or the ROI very closely to ensure even though.

Hi quality user growth at the division will be made according to.

Both of the quality and quantity observation on on that all the newly added users including back activity to Kuwait for example, the D.A. you got rotational level.

Hi, most Ben and average daily TV and the you know.

The third numbers out there reductions.

Well the market opportunities come under the ROI.

Our problem, you know reasonable and we will continue to invest.

At same time, though with the deepening our you know.

Realization progress.

The new users we see they also effectively converted.

Page order.

In Q1, let me address increased by 30% year on year, but a number all paying users.

Increase over 140% year over year.

The overall paying ratio also improving.

So that demonstrate that we still have gone to raise helping ratio as it gets better long term return for our UTI strategies and.

The user growth will also lead to the note the growth of the top line, you'll see that the leverage is still there.

The topline increase by I think 69% in Q1, and our gross profit increased by 180%, but that means we just need to accelerate our commercialization poleglass, though to get a better return from our investment.

Currently we have over 10 billion cash result.

After falling copper injection.

And all the strategic shareholder therefore, very supportive while you the growth.

Entity and generally you feel well I will do generate positive.

Operating cash flow.

Actual cash burn for killer.

For like 200, milling RMB, which are much less than you know the pure at a lot recording our general statement. So the financial theaters is quite healthy.

We believe the market do goalie and the opportunities do there. So we just on the right trucks.

To catch those kind of opportunities.

So I will let Kelly to comment about the.

Brian upgrade program.

Seth.

No problem last year in Philadelphia.

I'll now three tissue without.

Yes.

Yeah.

Yes, I will call then that's out there.

As it does this is approximately parcels are portfolios I want to move into the field, you'll know that we laid out I believe that eagleview, mostly the latest alcan, let's hold them.

So.

As we can I already.

Elsewhere.

Mr. Gross would be our primary focus for Twentytwenty and we have set up a comprehensive plan. So are there in 2019 last year that include to evade brand awareness and to correct by selling this perception of how Rand.

Represents our sound like our content vertical referenced then.

And among users or content consumers.

Hello.

I wanted to leave so yes I hadn't.

That was our job is also so either to ed poverty level, yet quite a lot quit volatility.

Yes Hello.

Shortly.

I laid up ships.

From late last year, we have tried some independent marketing campaign them as some of the in some of the events you probably already out there.

Where one is that our investment in.

Championships and deepen legend.

And our new year in the style and the notes they sent a day you stay.

Campaign regarding that new generations, and all of that have.

Excellent strongly with our existing and potential users.

Our teams are supposed to any wireless highway seemed to have.

Late level the losses in LAE I've got a little tease out visiting late May also especially the structural efficiency at LPL, Yes holiday. Yes. It is all autopsy gets resolved lots of Tulsa, we didn't develop if you like these guys wishes.

Yes.

So the comfort.

Sure Lucky benefit so nothing has that.

In addition will also actively putting mode, our client verticals within diligently ecosystems, such as studying such as an awful lot letting people know does that go to platform to consume dose.

Content verticals. This is also helping us to raise more brand awareness and platform out there.

Our Tokyo, neither the lets walk through that should help that need to take time now all of it says that the CBS because it really assess its initial at these items that should outside to say right. Now. So that's why I shouldn't holdings that leads you don't these items I saw greater robots holidays older dental are going to innovate.

So from that Q1, creating data.

It's already pretty obvious that effort and initiative that we take has quite significantly raise our brand awareness and implants among internet users that age between 15 to 35 and.

We have take rate crowded out, but we have done so far.

Sure way lights, and she is a lot more hazardous waste rock on board has also enabled us to tool I think being laid that out partially placement into account.

Sales, although south Louisiana, I thought I hope all those without water hauling since you have thought.

Going forward I will continue to.

Promote our brand to online and offline campaign will create sustainable create more events and we'll continue to educate our he cares about our category and our content offering.

Please I realize this is a great yeah.

Because I don't know that.

Okay, Yes.

Well just should be done.

Total Lou Addeo.

Double blinded.

About the impact how you're hinting that is on.

Now I'll plays that should that portfolio convention.

So going forward will going our are going to launch a serious campaign in terms of basing our brand awareness, our brand mission and positioning to one chip online and offline activity and the time timeline will be around several.

Ah import and it's.

Important time steps for example that graduation season and deliberately anniversary as well as some of the patients.

Showing no.

I'll hop.

Clearly.

Assuming that a vessel now we probably have the girls. So we'll have really everything else will get DSL he will be at Apollo.

Yes, so yes that today.

That was not.

So tomorrow on March 20-F.

As I also very interesting time as the year, we'll all want will collaborate with payment thing or are we to launch of graduation theme song caused will.

To dedicate that to delicate this fall into that new generation that that's about to graduate from.

And entered the society and well quite look for we quite look forward to back to.

Right.

Hello.

Yes.

Your next question comes from the line of Wendy Chen from Goldman Sachs. Please ask your question Wendy.

Yes, Hi, Kendall and Kylie essentially got sufficient Akiva our relationship play when they go here without you can tell you exactly what Matt Lenny.

Hi, My Tottenham fulfillment is that tell that they will Monday, you'll see a shoulder to shoulder modules.

Element say I certainly shows that we'll miss you see cultural integration.

Well, if it doesn't that Josh it sounds from ownership only only Mitchell schear hassle Mushing Joel efficiently.

Hello, gently assumption values that we'll need to the agenda towards initially sale heels and that's what attention.

Hi, Thanks.

Thanks management for taking my question. My question is related to the mobile games business. So just a follow up on the previous question, how do we foresee the mobile skin business growth for this coming quarter concerning many gamer potentially have assuming work at school at with potential reducing gamer getting tight and my second question is regarding.

Since we're doing some very innovative company to marketed our new title Princess connect lender and we will utilize such a marketing tool kit for the feels checked games to be launch and lastly.

Hearings management has shared your insight on our strategy operationally Sony in term of chicken business. Thanks very much.

It is eating.

You'll see that either through the year was to lead this embassy suite of our legal Latino could the Hollywood has always been eager to parts you pool.

With this year woman, though do you view, how utilities in though it would seem to negotiate homosexuals.

Thanks.

Those who once you know Barclays is not about how Mega arts at the heart of assumes a mega woman's architectural bailing there.

You should be culture downs of course.

Due to the simple you'll see with.

So in order to grow the pipeline that legal take undue hagerty called it.

So we actually don't believe the overall pandemic have endpoints on the our game business actually.

Corporate and.

Throughout the rest of the year Arking business. We currently have 30.

And exclusively licensed games in our pipeline Ada already acquired approval and majority of those pipeline our domestic titles and.

Relatively smaller scout are.

From imported titles, so as some very healthy component.

We'll go to India.

We will lead us to eastern.

Today, you will see the finally that really for joining by.

Typically what you are the introducing this hour hunt fish or to halt woman the acquisition a year. So do I wish you a novel has with record of up May go yes, They Bob Bob Lesser you told us again.

Our two largest the tone motion you'll quarter you good Kayla.

She's bulk Bailey.

Oh I'm sorry.

That's a princess connect politically sensitive to another strong testimony of our strong distribution.

Our power and our people understanding in terms of HCT gain.

Before the game launch picking had over 6.5 million pre registered users and sentenced will be on April 16.

Top.

China I'll ask top downloading chart for a week and top.

Okay.

And reached a number two on top of.

And based on our strong execution, we believe that this.

Isn't that very very successful that at a very successful.

Where do you want to nearly two years for cloud pick on Samsung until two years, you'll really kind nurses that Wheeler just alternate Charlie changes.

And based on a same.

Yeah as feedback that we haven't seen we believe that says that.

This is going to be uptight.

Very long lifecycle, probably over three years.

If you look into the internal that's a fertile relating to the ended up through all the.

The are today, we'll see if I can only theyre going to tell me what really BJ fair.

Total internally are seeing you will see party.

As you put all these issues all artistry Joe warmer.

Moving on the Union, though.

Well, that's I'm curious if you don't violently youre sure chagrin moderated on quota to you also have which means as usual.

So I.

As I mentioned.

And that the connect into now bear saw testimony of our.

Distribution tower in terms of 82 games and we are coming in at that level cannot in China to launch agency related items and we believe this advantage further expense.

Our overall community is getting bigger and our overall.

They are in game or become framework.

Well, it's usually overhaul liquid Scone woman confuse you also got our phase hitting you show what I found it difficult co pays younger Citigroup 40 for the quarter, where you really see recorder someone who will that.

Sure can live over the course value I wouldn't think it was you know some of the quarter on your quick Chicago public schools.

And going forward.

Somewhat with our how we expand our content verticals, we'll also see too.

Expand our game offerings into more high quality content into high quality title and.

We are quite confident this will also be very successful.

Okay.

Well go for this uses the so you could.

How did you see I want to easier click on the boxes.

We're actually get will sit here don't stop to hop on me look what you'll see the positive.

Trigger some therefore go tell is the pool worse as you'll see a hard rental homes available globally castle.

So are we in the back half a long standing relationship with Sony before the equity investment were already are working with our multiples.

Multiple business outback, including animation and games and with a strategic partnership we are going to further solidify and bring our partnership to the next level in terms of animation and promoting.

But there's always the tone bullish on leases until we love them could you maybe the industry yet so he doesn't have that a cultural differences on which is also be done a worldwide how relied upon us.

So I wanted to just go one way or sufficient I just wanted to adopt these on that goes on at least on TV Delco basis essentially originally.

So you may lydall fossil although I would also Florida dishes that don't lie that although he's on the people to go official yet.

Yes on the juices Houlihan Lokey, what operating system that allows you could.

Well go to close or two miles will know who did not know so you worldwide, we love self.

No not future.

Sure.

We want to add something on and so first of all Sony So what the leader in terms that entertainment and technology and Sony strategic investment.

Really demonstrate their confidence in Philly belief.

Potential and our unique positioning in the China Entertainment market.

And on top of animation and games.

Chen mentioned that we are also hoping to work with stony on other aspects, including odd that including the effect as well as movies are hoping to really bringing more world class premium content to satisfy our growth going into it.

[music].

Okay.

And your next question comes from Alex Food from Morgan Stanley. Please ask your question Alex.

Okay. They are funny because your additional what if you and what do you want Nissan ways.

Jim Sorry, Peter are you seeing sort all you can see the either and the yield.

No no human she should senior you didn't bother you to share you didn't take on 15.

Okay, I mean audio the bigger more galaxy equipment.

Due to Sean shoulder.

I'll go into so when you go anti IL two dollar P., new TV. So does so.

Please go ahead, Jeff I mean again don't duration.

I'll, let people know can tie those yole.

So long Joel gay and order, so I'm going to contribute.

It's up to shoot sometime middle part of our daughter don't seem to its unique.

She was funny Trump them occurrences.

Optune Nielsen hooked Harman.

She's talking tie it all little.

Just wondering if things don't look what youre kind to ship you would you need a quite valuable in guide Chisholm occurrences yet.

Ill translate my question. My first question is regarding EMEA your targets.

As we already achieved one point more than 170 million Emmy you, Steve first quarter.

Should we expect to revised up to full year at target and also next year. My second question is related to PDG the competition.

There are many more platforms, allowing content creators to upload platform and they also provide a lot of easy tools and cash returns to these content creators. So how how do how should we see the ROI ARPU TV.

In future. Thank you.

Well then.

Who's had another good she wanted to kind of almost feel CG capitalizing on what was will teach with or without even we are the whole pleasing protocol to the lateral logical.

The Holy Grail, Telus require you to see whether we could do not really rumor.

I want to gets utilized to confuse within the data.

The other part of its usual Gregory Jesus Bueno, probably wouldn't view.

Oh he's done so they can see about this fee and the Gordon going go couldn't broader meager due to the obviously with on can handle Toronto film, Okay controller, who would have have all those who to realize that border. Maybe she is on the opportunities that come quite a single woman.

To do you want it sounds enable you as a result is approved on me, but what's your people who happens to kill the kind of how your question. Please.

Well you know her.

So what kind of each on the similar things only would be musuem or somebody over the years ago.

For three years or what was that we're going to central good order.

You, which was up.

Rollups you'd others are you'll be looking highlights either.

So Michael Wawa.

Two years as acquisition you end up with Undrawn, that's how you see the town Tyler there's always a month or material. Obviously easily go there. We've got ourselves you know those orders from Zimmer.

We're really it's a legal he's done it depends on the say no to adult because your world I sure.

You may wrong scenarios here for 22 million although.

Let's turn to oversee homebuilder with you.

Yes, so usually they don't want to relaunch you put up you've done.

We'll measure turned on go to adopt no you also those homes, Georgia.

Not open doors or they will go.

You it.

No one really to take bigger.

So where are you looking highlights for how you guys go above essentially doubled his shorted I really thought to that.

The real Humberto Highland go to quit.

Does that we'll see dependent on product suite, sylvia's or comment tuxedo that everything is called the opposite the liquidity Taiwan.

Borrow on them.

For those two quick isn't really.

I don't I'm, assuming multi million dollar content with you.

As always you know accounted for 30 years content.

Okay regarding your first question on.

You their target.

We are popping up.

[noise] achieved our user target in advance.

When we get there.

Further up outpacing our kids or target.

Second question about the competition I think the essential.

The foundation of your question relies on how how we are able to keep our content creator or essentially how we are able to grow our content creators and.

As you can see from our Q1's data that.

Actually we have experienced a very fast growth in terms of our active content creator and their content creation and number of content creator with more than over 10000 followers are.

The growth rate is also expediting all of that means we have cultivate a very healthy ecosystem that allows our content creators to roll on our platform and then.

The mad at them behind that is to truly respect.

The high quality content and with respect to high quality content creators and always.

Put the quality and.

In our priority, it's much easier said and done you have to print that.

That stopped principles were over 10 years and to make sure that mechanism that helps you keep attracting and retaining those users. So that she can I ask you can see actually the old top content creator.

Our staying with us and growing with availability.

Not that.

I think that's the key competitive edge diligently has compared with other competitor.

[noise] [noise] and that concludes the question and answer session, but today.

I would now like to handle the conference back over to management for any additional closing comments.

All right. Thank you once again for joining us today that you have any further questions. Please contact myself Giuliani everything there, our director or TPG Investor Relations, our contact information for IR in both China and the U.S. can be found on today's press release have a great day.

Ladies and gentlemen that does conclude today's conference call. Thank you for all participating today you may now disconnect.