Q2 2020 Bilibili Inc Earnings Call
Today's conference is being recorded.
This time I would like to turn the conference Silver did you will get young senior director of Investor Relations. Please go ahead.
Thank you operator.
Please note the discussion today will contain forward looking statements relating to the company's future performance.
And are intended to qualify for the two copper from liability Abbvies devilish slightly less private Securities Litigation Reform Act.
They are not guarantees of future performance and are subject to certain risks uncertainties assumptions and other factors.
I'm a bit with I'd be all the company's control and could cause actual results could differ materially from bears mentioning today's press release and this discussion a general discussion of the risk factors that could affect everybody's business and financial results as they include it in certain filings the company with the Securities and exchange.
Commission the company does not undertake any obligation to update.
Looking information, except as required by law during today's call management will also discuss third non-GAAP financial measures for comparison purposes, only high definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP, but actually we don't.
We see that Twentytwenty second quarter financial results news release T shirt earlier today.
As a reminder, this conference call it's being recorded.
Understood I investor presentation in a webcast replay of this conference call will be available on the believed in the Investor Relations website at <unk> Dot com.
Joining us today on the call popular really senior management, our missed her rate Chen Chairman of the board and Chief Executive Officer makes colleague Vice chairwoman up the board and Chief operating Officer, and Mr., Sam Sam Chief Financial Officer.
And I'll now turn the call over to Mr. fan, who will read the prepared remarks on behalf of Mr. Chen.
Thanks, This is especially the other one full package encouraging always going to the second quarter conference call.
Good to deliver replicate opening remarks on to hop off Lipton.
The second quarter with another strong quarter all growth.
Well you call, what increasing by both culture and why the awareness I look what well reach a much broader audience.
Well the second quarter.
472, really up to 55% and engage with was 52% took 50 wasn't really.
Most all of that yield but yet.
Well and they use to be all thought just go or reach 150 food related to catch up.
Uh Huh 50 lots of said probably had sort of computer it into how they're not too long.
I will always extend into the base. You then engagement continues to be cool.
Yes every quarter or would you that's been on average I feel good long ago per day on all will be up.
Thank you have one off the multiple popular platform among all up here.
How did we lose any color peak somewhat feed on the solid execution. All quality initiative. We are looking forward to fill that building out our use of growth from Atlanta.
We continue to go out more put me Cogen facility.
Drunken element litigation capabilities and the we are increasingly convergent profit to pay the user.
Oh, I'm Hughes hundreds of 5% deal, but yet which lessens the 12.9 really.
The second quarter.
And our payout ratio improved to seven plus 5% compared to five plus 7% promise in Philadelphia.
The increase is viewed our topline growth and we once again to recall had revenue of I'd be too.
Speaking to hike and alcohol either.
Our gross margin, especially as we try to 3% pockets people said in the second quarter of locked and we continue to realize more please elaborate.
We remain committed to tell Google growth focused strategy. After 11 gets off to completion would be about content.
And progress in dogs.
To accommodate a much larger do that they are.
And I will come in if he was a friendly a robust and up to the trends, though you calmer heads. We haven't made more proactive unit growth pets are probably I will walk us quake additional brand awareness and talk a good trend, though acquisition in the second quarter, we love to get an uptrend pace.
The study the ability to threaten that bought the audience.
Because of the we've expanded our coal got feel a lot from bucket.
Do you all 11 years.
That's the right we introduced a new slogan beauty really ought to be due to lock.
Helping to deploy all critical condition and appeal to a wider but.
With distribution in bars.
We love that blending contains <unk> destocking without blockbuster, new yet you've gotta into first quarter, followed by a whole lot.
That's helpful color I'll give you deal with all had been widely successful and the we see our could be a uptick in brand perception and awareness across different demographics.
Difficulty and working well for.
We have to totaling to cut me off and we moved into the subjects either.
Looking ahead, a number all positive industry trends.
Hi, working in our favor.
The adoption of Fox network of mother, how will it make becoming query easier or the more accessible to everyone.
Particularly the video industry get emerging the biggest a beneficiary.
We do in Rockville, it becoming the most exact here I mean, French show about though to convene deformation building I'll die decades of experience our leadership in the video community, we are well positioned to to capture the growth opportunities.
We've got older view, our luck to walk through the latest update of our contract community commercialization and the strategic growth class.
Okay.
Appeal GB ecosystems amended the cornerstone of op units for the past decade, we have calculate to lead to help you would you be committed and the rising at a clear industry leader.
Oh effective truck distribution mechanism and firmly committed to anyone like BD beauty or decreasing attractive platform for common equity turf.
In addition to easier to use to that make the condo closure process siegler more accessible we love our new as platform to bring more commercial opportunities 12 company quicker.
For the second quarter.
The approximately 1.9 living can include took uploading six imaging videos promote.
Represents increases all 500 attendees speaker said and I have your 48% respectively, both year over year.
Well, the second quarter, almost entirely new customer verticals lifestyle Ken.
The Taleban deletion attack of noted we left the transient video content.
You can work on key opinion leaders for all other platforms, a 22 ppt.
In the first half of Tony. Thank you the number off from equity to we'll submit their foot videos equation trail well by 139% year over year.
If Quaker Michael can really be off to extend get called adequate.
Okay.
Good luck on knowledge sector to encourage comment equate to the share dating sites such as I didn't hear stories, how can skew and professional experiences.
With all the effective operational campaign and the welcoming committee as Mafia lauded has quickly become the fastest growing sector and we have ever see I would have fee excel infection.
Turning to our OTV the men, we remain as a doubling of either in the and the major field, we let off the trying to lock it enemies libraries.
Beginning off this year below freezing you were trying to elevate Joe 100 million video views club, including why can't match it.
Absolutely.
Our self produced the daily life multiple Kings Hill, although you're talking for a couple evolve.
Additionally, we plan to go Altamont beauty PV put your Chinese elevate including the Encaje single or multiple generally focus within club and imagine I'll call simple.
We believe this new theater with where our countries are more Chinese enemy Lovebirds 12 platform can get summer.
Except on then trials that's content library, we expend desire to show Thats incremental rates continue to resonate with friends and provide two other tidy avenues to all of your new partner.
In August we were excited to introduce our very first Gulf Producibility compared to show refer you were talking should that sponsored by Alibaba coupons.
Hope disrupts the independent show will help further expand outcome the offerings why inspiring our content creator for young generations luck.
Sorry Department, we're pleased to have received wide the condition not only for our users, but also professional institution.
Two of our beauty for deals documentaries were nominated by by your plan for the back the documentary awards, including a year the books that higher food and the police tolerate petrofac exposure.
Hey look in the of triangle documentary that we Copa deals with National Geographic was nominated as the faster Limited service long form documentary by Jackson was maybe I'll work.
Turning to our community or committed site engagement had been accelerating rapidly.
I'll, probably the more rather than ever and we have you may recall high across all of our private engagement matrix.
In the second quarter.
Our daily video views reached 1.2 building up 97% year over year, and our user and originated five pleasant to billing monthly injections. So really what do you try to combat lights and really be the moment.
Nearly three times more from the same period in 2019.
Oh Optician, Oh official membership hold on.
I would estimate of growth.
End of the second quarter, we have 89 million official number as well talk a whole lot hundred question, and then a 55% year over year.
Potential for this group remains well above 80% demonstrating the ROI to off our Hugo.
Turning to our commercialization progress I'll first review the status of again bid.
Revenue for our mobile camp business were up 36% year over year.
The 1.2 getting accounting for 48% of our total revenues during our massive as an extended camera community.
Our distribution power if you just sector is becoming even stronger.
In the second quarter, we were excited to add to the new for cross cuts high whole foods has come back into the idea tall debt portfolio.
This exclusive license keeping its RPG, whether instant hate aptitude, releasing that pro and the top the China iOS download and growth in chart multiple talk.
Our lucky title Thinkware older FCO Covanta hold a coffee the bold goal for this stable fan base.
At the end up too we were excited to celebrate largely as anniversary with a major called to update and accompanying offline activities.
Long lifecycle of these Ken continues to be a strong testimony to our ability to upgrade and this has 10 high quality get.
Looking at all again Popfly currently we have the level again that have caused approvals and not scheduled to be released in the coming inventive.
These include MACI I recall, it more hotshot yourself.
A highly anticipated hcg title adapted popular Stephens enemy, and that's what ATA online culture, and and exciting and minimal LPG.
Additionally, we strengthened our future again accretion we continue to expand offering high quality guests.
After the end of June July we hope to our first ever get ready for your bet and to offset as we work well, we introduce 11 exciting heico's across different jara.
These included simulation, Ken talked for Paypal, a self development HPG again.
Venal auto highly anticipated title adapt our self owned the Chinese enemy high key and the several high quality could you titles.
Paul to acquire jobs and the people entering Q.
In August we are delighted to and now we're going to putting Chinese audio the more bell version of forgot Tom voted exciting casual Battle Royale cabs.
And we started by all categories content offerings and welcome Morgan Love US club platform beautifully to have come to go to place what gross and operating Carlos.
In the second half of the year, who will continue to work with leading can give our oppose to bring our user premier again, such as in high yield notion and that is how reporter.
Turning to our vast Bennett.
Value fall that included 553% year over year, which RMB 875 million in the second quarter.
Our growth was mainly driven by increased contribution from premium membership by broadcasting and other value added services.
We continue to each other weibo carbon content and the increased penetration I am ongoing project.
And our platform to come more influential in trying to us all entertainment industry, we have seen more holes and Tyler agencies, Printability beauty to grow their fan base and maximize their commercial potential.
Our lease portfolio, our three year strategic partnership with right.
Well it significantly has positioned us well.
Well, John we work force it was again and that local government to hold the diversified online and offline activities to promote award we along the Gulf managing what trending up your bed.
By bringing in more in Wattenberg.
Our premium members, which have additional exclusive bought about how tend to pay you there continue to flourish in the second quarter.
By the end of June we had 10.5 million, putting a member of 100% year over year.
Members of the present, the Golden cohort of our most of our users. While also the most upon for future cross selling opportunities.
Notably our comic been there is also on the right.
Two years BBB, Colombia has grown from scratch to talk through common platform in China with over 1 million paid subscribers.
As a natural gas extension for our co LPG content offering would be great synergy between our men app and deliberately comment as.
We significantly grown to growth.
As for our tightly business are going into the base and increased brand awareness material must go to platform for advertiser.
Positive the tough macroeconomic.
Excellent we grow our other tidy business to RMB 300 imported non billing upper hand, juergen, 8% year over year and continue to broaden our customer base.
The leading industry verticals in the period again, you commerce CP products food at Broadridge an adaptation.
In summary, we had another strong quarter of growth and we are well point to cutting the obvious trajectory.
Building on the positive momentum in the first half of this year, we plan to make additional investment in branding and channels in the coming quarter to further drive user growth rates brand awareness.
We believe this investment will boost up sell for food and growth cycle and yields comfortable return in the longer.
Ideally reached new highs our focus will remain on the quality of growth and well continue to closely monitored ROI of our marketing expenses.
We are confident that our effective started at the initiative will further fuel our user growth and support our topline expansion and we continue to build values of our company investors and the growing community of our user.
This concludes Mitch has to come up I will now provide a brief overview of our financial results for the second quarter of technology.
Our total net revenues increased by 70% year over year to RMB 2.6 billing exceeding the high end of our guidance without GAAP accounting for just under half hour total revenues.
We are pleased two weeks to commercialization progress over our non-GAAP offerings, and our ability to convert a lot on that topic you to paying user.
I would a number of monthly pay users increased by 105% year over year, which were 12.9 12.9 million.
In the second quarter.
Cost of revenues increased by 57% year over year drive the to creating revenue sharing costs a key component of cost of revenues, what I'd be one getting 79% increase from the same carry from 2019.
Gross profit increased by 130% year over year to RMB 604 milling. We're also starting to see operating leverage for our diversified revenue stream.
With more revenue contribution from our higher margin business.
As well as additional income from paying user our gross profit margin continue to improve reaching 23% in the second quarter.
Total operating expenses include to RMB 1.2 building up 103% Dunkin' period in 2019.
Selling marketing expenses was RMB 675 million, representing 181% increase year over year.
The increase was primarily attributable to the increase channel at a marketing expenses associated with Bbds Act as a brand as well as expenses for companies Mobilecast selling marketing personnel.
Your next that'd be 200, and aim billing representing a 40% increase year over year. The increase was primarily due to increased headcount in generation until an increase share based compensation expenses.
R&D expenses will be 330 wondering represented 53% increase year over year included were primarily due to increased headcount in research that alone personnel and increased share based compensation expenses.
Net loss was RMB 571 meeting for the second quarter opportunity today compared to RMB 350 million in the comparable 2019.
Adjusted net loss, which had a non-GAAP measure that exclude share based compensation of benefits and amortizations better relate to intangible assets across affiliates acquisition for was RMB 470.
6 million compared to RMB 256 meeting in a period of 2019.
Basic and diluted net loss per share were RMB 1.63, adjusted basic or diluted net loss per share viewpoints luxury five.
I last June 30 for the country, we had cash cash equivalents comped positive as well as shortcoming investments of RMB 15.6, bidding or U.S. dollar 2.2, pity compared to RMB 8.1 building as of December 31, 2019.
For the third quarter, often btwenty, we're currently projecting net revenues to be between RMBS reporting.
Finally has on piece frequency was zero getting.
Thank you pay attention reward lots now to open the call to a question operator. Please go ahead.
Thank you Sir.
Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced and if you wish to cancel your request. Please press the pound or hash key.
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Your first question in queue comes from the line of Alex Hoon from Morgan Stanley. Alex. Please ask your question. Your line is open.
So shall glennie, John situation, what a tier one.
How do you see when do you understand what are your check on New York food franchise from it.
So when you guys shabaniyah three to figure out charging the western countries.
She won the search your syndrome or your food costs showed some down nutrient prices so much in costs.
DRC when you set shabaniyah coming in they don't good shareholder so again, it's just a month.
True suits, which a moping homes are good.
Absolutely and associates or go wages inside charging should should the U.S. Pete just yet.
My first question is regarding.
The user growth first half the user group is very strong may may I know me can you show give us the quality and retention and accrued user profiles. The new users group you user growth if that's hot and about the second half growth and also next year what is the key focus.
Some of your strategy or user growth.
How are you going to balance the user retention and maintain their thoughts user grocery answer can happen next year. Thank you very much.
Okay. Okay does have a mm.
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They will jump on me and.
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Some of the.
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Bulkers Tubeless R&D facility.
Just on the Levy service used auto Meanwhile, through woman, but either way.
Well I'm not sure Donaldson's touched readout, yes, we can change.
Ultimately agreement.
Last year, we have reinforced and we farmed user growth will be our key strategic focus and we have been carrying out the chat strategy.
Mission, the going to happen it here and I have made.
Hey positive progress.
As for the new user profile.
There's no significant change.
Did you use their profile you'll see.
A lot of.
Beyond generation spectrum and average age of the R&D. Indeed, there is about.
20 years out however, we would like to emphasize during the.
User growth growth a process.
More focused on the quality over quantity and the quality of our users can be supported by the daily time span the aging baby constantly nine minutes create great day.
Our user engagement and we're up.
Q4, or 5.2 billion on a monthly basis.
Daily video views reached 1.2 billion. So all in all of these numbers reported our users are not growing very not only grown baird.
And that their quality married.
Okay. So they are she leaves you go through the woman's Rd Artemio somebody on the CW.
Thank you from commodities.
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Where do you doses that whether thats ago, so you're not going to.
To the woman please.
Well those other constitute stood out where you go in there.
To the two down league about whats user for Mr easily onto incident.
And notably we noted that the new user who come in during the first half of Twentytwenty and also paid for our service as well be missing period. The ratio has significantly increased compared to the same carrying last year and app off immediately.
Listeners who came on our platform during 2000.
17, 18, 19, who also say hey point that next few years.
They are paying ratio is also increasing.
Uh huh.
Once again that this set of numbers is that some testimony.
Quality of our new user growth or whether it's really hasn't exactly it goes if the right.
She has always had who will then we'll put some dollar your comfort level, but.
The drama with a minimum goal negotiating quarterly which as you get encumbered with them that.
We'll need to that Youre machines. They don't see you'll also see two who know who see the whole woman Uganda, but you got following uses rule that legal this weekend.
Well, Egypt railway future Nick.
To do what they don't closer towards a prevention of English legal.
Sure, Matt downtown Labor costs are lagging lighter.
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For the Amazon, but I know you kind of other homes are pushing in a woman tour the index soils themselves.
Neither so seeing when they don't liquids out we're going to choose reports of a b can no conclusions.
Well pilot.
So here at home, we also went to emphasize.
I'll, let you deserve.
At the reason why we are very confident.
User growth trajectory, it's based on that concept that we have been trading.
For sizing that will lead our content to attack user.
Community to retain users and as you may notice in the first half of this year with John I made significant progress.
Our content to reach a much broader audience.
And this type of each of us cannot be achieved.
Purely channel acquisition on their acquisition.
You are comfortable our swap why are simply through that channel acquisition.
We cannot be 10 that theres no good content.
The key strategy is to allow our content to grow to a much broader hair category and then open up to new awful lot too.
Demographic.
These are essentially Eagle gold all time, Danya, who is looking at.
Hi woman.
Bigger senior level will not be mill in these energy this routine.
How are you will should apps that 2100 actually.
Selling and vulnerability.
And it really it.
Meaning that high engagement level and high retention level, although our users increased significantly our overall community.
Saying.
Density and continues to be very sticky with high occasionally.
So with that should come through woman's Union the sort of good. So you would do know how many would get robot total soldier anyway to easily goods on each of those solutions. He agreed upon a woman gusher, Saudi Boucher tool with Eagle Ford.
I hope that they are beautiful with those I mean, yes.
Mmm correct, what LNG momentum as we would hope for both what's happening.
The woman's users.
So how you'll.
Those one the heart to heart, you'll quarterly total hi, Peter how that largely metric heights, you lower than the future Kim I should have a few Duncan Hines and Judy.
For the whole 13 that I have a P value to evaluate decently those who uses.
It would seem Apache wamsi will materially dotcom, because you quit tissue talking touches on.
I'll update you that schedule.
I guess.
Oh plan so out.
Let me now during Q1 that can dynamic here.
People have more time there.
Yes, that's very good run, though too in back end user growth and the second quarter assay marketing back to work that we turn to school at kite came to a more stable lives period that.
Good thing.
Raising our retention and converting those users to pay these errors and notably we've also made very good profit to raise our brand awareness in the second quarter and achieved a pretty good result.
And in the Q3 is a traditionally strong peak season for us So that we plan to you in.
Additionally, investment in both brand as well as a channel acquisition.
No we're trying to get onto a number she retires or Nico woman vertical DRG. Two there is looking measurement of either single.
Retiring that naturally in threed enrollment without any.
Hold on high scissors Orbio E book called who have worked itself on the you got some will should look for maybe go quarter by.
Good for the when you guys should you go Angela prohibits window to dialogue to door myself without it goes on getting Brenda.
Well it railway.
Are you looking patterns on the portal you mentioned the our to do we can go put in Wahid. Please on the number.
Right.
I would also update when their rent.
Branding campaign and the second quarter starting from May we have made a very successful marketing campaign trilogy profits would hold onto a shortfall.
And wafer leap day here that can handle that compete.
Marketing events, which we consider to be the most successful branding campaign among Chinese Internet company during the second quarter.
Just a few medrano hold on.
Assuming larger you've done with the incentives door intuitive surgical trends whether you go.
Hopwood on how you're saying.
Hi.
Good P. Mercury work.
This proved our ability to not only to.
Making sense ammonia.
John generation, but we also have but clearly you touched a much wider Roger clients.
We have some old ya'll nature to the neither genius and woman relation high transaction, we're going down. So you could tell me all the growth.
On a longer seems like until a few dollars were we'll deal with those other yet lease or former how she will need overseeing.
The whole that glemba shoot cause our minerals.
And I'm upstream I turn time Juicer Willa.
[noise] daughters adult women sort of your comments on the holiday will choose what we shared with you today you got into the city those items.
And the reason why Laurie.
And for that branding.
Branding campaign.
Based on our.
This model.
Constant contact either.
To maintain the here as our content continues to evolve to reach broader audience.
One important got.
Allow me.
Now that really have so much content offer which I, which are in line with our new brand slogan believe in Poland, We feel like.
To this sort of hardware to women suffer JV tendency to the new who comes on employee goods get done that you could that lumber.
Sure well executing jingdong defensive about volume this really good singles.
R&D value to the Hot Assemblyman Chicago Thunder, Kenya industrial job.
One thing I know, but.
She has 1000 shares a marathon biosensor stores here in those I got to essentially I did you.
Well no way it make a woman's that.
Just as soon as she does that.
Buyers on woman the LIBOR.
Yeah, Hi, cynical total you're going to pick all these are some do without something.
Sure different vertical clear through all that you will see let us in golf.
Okay asteroid, our Q3 use there oh.
We believe will reach a historical highs during this quarter and this summer.
Especially because.
In July a majority of those students are suing or.
Okay.
This summer vacation.
And I September will be.
Pure where I didn't start returning to school. So in August we currently.
We are able to achieve.
Pretty high.
Right.
On a quarterly monthly average basis.
Can reach our historical high which is true then.
Thank you and where you put out in that would keep that.
So on a single month basis.
We can achieve over 200 million and retired during Q3.
Our net income.
Okay.
Hi, just to check it out of control around July there's obviously I got hurt you got compassion Youre mature dollar compatible chit chat about going down you should jump ball grounds aloe suicide yet seats.
Instead of while insights. This is all Sasha will shape or travel, although what we know what bianco Donaldson cadence is all yet he showed up and solution.
California.
Well George Tong Beltway tone density without dropped quite a lot to thinking a true large loans, which were down why just from prior year for everybody else key Casey Shyue Ching Ed.
Since about quite a lot. So why don't you haven't hit the especially the NPS Hi, all Yankees and I've got a challenging change or catch aren't going to change our so called looking taipopai, yes, tollway downside Ti dollars turns out to jump out initial that.
Hollywood like to someone in a few points.
During our brand upgrade contained this year, our overall brand exposure has achieved over 5 billion times and.
The brand recognition level among.
Get Amanda age bracket the in between 17 17 to 35 has raised to 80 Chris.
I'm, sorry, 60%, 60%.
And at in the second half our main focus will be.
Well, the odd to comfort and Paul from recognizing Billy Sealy brand to turning to deliberately users and we are during the second half the marketing campaign, well rounded our artsy activity around the key times such as.
The summer vacation and returning to school as well as them pulling of legend World Championship and our new year's Eve GAAP and many worklife scenario, among young generation and to create new content New brand campaign.
And further guidelines is different.
Our next question comes from the line up lays out from Bank of America Merrill Lynch made your line is now open.
Oh high quality.
This initial adoption.
Yes, Hi, how are you.
Our team introduce yourself.
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Yes.
She doesn't I should say Tommy Haas 3000 samples.
As to what metric.
Okay helpful Series C to see that you got back actually see no secret so much thinking I will just yet.
I would tell us your bottom.
Hi.
Got it that each stretch say what might that just out of the secret.
Right.
Yeah John.
Okay.
Yes, there will not all things on how joshi, he or she should trade Putnam trade Pandora and Jim Scheel, Yes, Joshing, how would you keep yet.
Today the.
With the fact that I think management and congrats on a salary that's my questions actually regarding or game in the bank, which is quite Solliday second quarter, all under accretive share.
From an sharpspring SAP cannot pass it feel it what's your expectation and the longevity for this game and second they can you give us some updates now you're all game pipeline any game launch weekend, if Baxter offset by say factually expectation about some mobile we're going to fall guide.
Oh, thank you.
Google, India can reinforce the crime tons coming to see the you'll see it.
Yes, ego fees home Schuessler design.
Our superiority.
Today, the religious about how the you announced a total of 11, Sheila delicate assumes I'm not sure thoughtful these astoria, we'll see seasonality.
Oh is it took a formula via either due to.
Hi, this formula our semiannual to the Chelsea hurting top.
She's agendas internally it can go to release of that and children Hudson will be order, you'll see that either.
We are assuming lives is a woman's attributable to conveys I'm willing to not be yes, that's done dotcom to the woman that signal they want them before we might be.
Regarding prentice connect we dive it's like we expected that gain will be having very long lifecycle and and we expected. We expect this game to last quite.
You're quite a long period.
And for this gain our in many many aspects broke the history has.
Oracle Records in terms does a pretty register number would have over 6.5 million people pre registered and the newly added Jeter, where this game also achieved record high number and then the success of this game.
Two 2.1 and that the hcg gain has become the mainstream.
Beyond generation us preference.
Over gained genre and second is over the years, our ability to operate and sustain ICICI.
Titles have improved significantly and we're quite confident to continue.
Success.
Hum about remotely growth.
We'll go down, but you could do to to the you'll see the horse in the real about the whole maybe downwards view the whole mailed to single premium, so don't which particularly as formula others are wasn't due to the PV, we'll see the you go.
These are not be how should we how would the English.
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Well, it's enough time doing which is included in guidance, including cybersecurity LCD.
You know do that kind of as you go towards either can't comedies.
And for.
Capex Centex connect with such large user base and within the four month period up are upgrading operating history on it has been very news in terms of operations and technical operation.
So, but once again support our testimony that stability is able to operate is channel asking a fight.
Well as for the long life lifecycle. Its game, we expect it could be something like half jail and two last couple of years.
A woman scenarios here, we'll do more senior years.
Hello.
Retention view.
You'll hear what are you talking with whom we tell them or investor.
Your total fashion.
You will see the.
Okay and I do you see it can go through Joo, Arthur AOCI, pushing harder before not what was on FIA woman she should that be withdrawal.
Thank you see the whole woman easier to go.
Josh.
The pure plays a woman seizure hydro tool.
You just for that I'll, just put us and whatnot consistent me Bhutto has should peak Josh.
In terms of owner.
As for our game overall game business currently we have over 30 gains in our pipeline and those gains are not only hcg high us we have been actively expanding our content offerings across different genres since last year and with me.
A quite good progress on some of the console game indie games and have received that itself.
To government Chicago Pandora.
So the ships is until the good how should we go alone will I believe that two for human nutrition cheating, but is it you will see seamless on liquid Gorbachev those houses.
The full guys schemes and a nation.
As another example of our successful attempt expanding into new shower and looking ahead, we will continue to explore the new shower has that fits to our if you second for graphic so when you do the job right.
There has to our fingers using the yourself with some of those.
Sometime you wouldn't just Roma, who chooses to do not he or she will.
On the other which was up bigger noticeably today those are RPM deals here.
Syndrome.
So in terms of revenue contribution we believe hcg titled still have advantage in this area.
In our pipeline, we believe that sort of our online took one factor will be a title that could make a decent contribution.
And 70 Department.
Our next question comes from the line of Daniel Chan from JP Morgan.
Daniel Please ask your question. Your line is now open.
And that's our Hawaii.
Yes, you hit on.
We are but once you acquired calls required to warm up on also through the future pumpido, sometimes it's actually not warm and usage. So when you see bigger two don't seem that gets you simply Southern Institute Sheena.
I would say that you do with regards to reorder the since on that you don't leases. So I'm a few buyers can go to the I. I should just from several of our CTO Congrats.
The whole will mature ventures, obviously I know it off.
You're welcome.
Because the bar.
I just want great.
So that you chief.
Let's see signs.
Thanks management I have a question on ever pricing.
As revenue grows that sort of better it on a year over year basis.
In the second quarter, how should we expect the x. revenues to such thing such strong momentum in the second half or what are the key drivers behind.
Advertising or is it because software performance advertising, including fees. So one is our expectation for the new at this time Relaunching the third quarter for the content providers. Thank you.
Oh, it's just yet.
Yes, you should I see the two month, which I didn't seem though.
Go hunting by other people will help walk out here with somebody Jones out how should I doubt you bye bye.
Overall, 2020 and still.
All of 'em circuit, certainties and Balco with Howard.
However, under challenging Michael is that environment was still delivered a pretty good advertising growth.
Right as a whole injured and 8% year over year.
So now we're happy that Angela you got married shifting they own King Hi, Hi, since we got one should imply that he only T. Well go to use a high search for long time on the amount for gun 12 laid up what golf, Oh, Wow fashion doll should maintain high shop.
So there was really at the video platform. We are one of the big expense pressure and the overall video application industry patent and how we have observed.
Hi, this budget has shifted.
From the traditional portal to the video platforms.
Those are your thought for Ti Vo mapping passion about what you want to John's out. So you can't see issue. So you can't go though she got the Dod Tal Darcy.
You should these IDH holiday Lucky I told Argentina, but you get the 17, hi, fishy its whole they learn they order the utterance outsourcing.
Hi, John well, Yeah, Yeah, you brought up team hi plays like E that Vincent I hear that at home.
As we mentioned earlier we have.
Yes significantly in expanding our brand.
Awareness and base are ramping once in the first half and we have Oh, we have become.
The must go to platform for advertisers, who wanted to reach the younger generation demographic as the same time will also become the media center to create viral marketing events.
And.
Ability they ran upgrade brand awareness.
Increases as the rock relationship with Ah advertisers perception.
Toward opportunity frankly preparation.
Foresee assays are Pete I don't pull the appeal TV abuse.
Thats all that used to be shown tied up I know you hear I hear those play to the P. Late.
I know your phone for back up on T., though should also for could be Shaw teach her donkey like well me acquiring portfolios are appealing pie Cook will lead to either.
As our views are continuing to grow NRP PUGC equal and continue to thrive we've seen dabbling made.
Decent progress in expanding our Bert content.
So Josh fashion lifestyle technology.
Then as I will ask ourselves.
Also hoping to reach.
Excite our advertisers are customers into those index your vertical.
You are though partnership although you will buy Sherry will then make sure they cook, who didn't intend to production cadence Alco the showing itself how should challenge all oh be done so it's a very cool.
Thinking about something alcohol well this was a shift wahoo one day soil can HEICO, who saw a you got she's junkies out assuming the fastest also.
So during the second quarter, we didn't make any singular.
Marketing campaign to work.
Certain verticals by Robert emphasizing our overall marketing solution as well as heavy duty brand proposition and influence and it's working well for us.
We aim to continue that strategy going forward to see you wide ohas icon team cohort the echo the catch up higher Ronan here that you find that Samsung circle, how should play so losses on the block also thought not only that she shops, Jessica Fung Bhopal Jono QR bump outs she does.
The yen queuing up obsessively Jones Ali I mean, not sure without the father just found yell at me at which as you data.
There are the result.
But.
Great and behind on Q2 strong growth as on our improvement in cancer, our advertising advertising.
Advertising hot and our advertisers verticals as well.
Hey, I've Howard I algorithms to increase our AD efficiency and were confident to carry on this good trajectory into the third quarter.
Hi, Dan I laid out a few Dubai. So you can go to appease shall I should probably don't seem to increase it yes.
Oh, you that should be Jones, Aldo I think people thought that she'll be that may have shown tied up on value whistling past.
So looking ahead in Q3 and Q4, we are quite confident we can.
Deliver a continued.
No.
On our advertisement business and to to develop a diluted really.
Specialty advertisement solution campaign.
Oh, let's say a cure of showed that acute. Thank you also cleat why don't you go to the vital that there should be done though for yes. Just recently begun yet team that will not either yoshi he shouldn't dashonte entitled a huge Chicago Chief.
No I think was only I'm doing Charles I'm I seem to want go through E beam E. G. M. B bench on Layla, Yes, I'm not sure sure. They ultimately Argentina GE will get done a lot allow killed. So you actually this is a wonderful that yet.
Well the area of focus could be on day E. Com area. We were the only vibrant and engaged community has become many E commerce platform I feel platform to promote to promote shop and flexible and shopping.
Ben.
So in the second half of this year this can be.
Rising sector class.
Oh straight up usually don't have some downtime. It also is a few the shown had about he or she should outweigh laid off until cohu be diet told me that cannot be talking high well, they've yet that well hold on the appeal yet we sent to the treaty controller.
So as our content verticals expansion, we are quite confident to offer expand our up with hi, hi figures.
Those verticals.
Oh, just hold off on US you saw my high sugar, which issued by central shaky, even without that way more does have a suit you're talking shot. So the teachers are cocoa, there's other things that pulls bounties I Sally hi, so you'll be done without a t. So it's a decided yet shit to the fundamental he said and I told me that users.
Got you know, although truly go what quick pieces I chose actual sit on the high should play out you get things had a mail. So yes, it's cheap tied to gateway products.
On the third point I would be on the continuous improvement on our our then I will continue to invest in improving.
I think efficiency to.
Increased our advertisers ROI.
And.
The fourth point on the big events in the second half there could be.
Okay.
So.
I mean events and Darla.
Immediately specialty.
Advertisers favorites.
Favorite favorite advertising avenues to reach young audiences.
Okay sounds like up or can't that'll play for example, booking high this year.
Absolute I cant tell them washing through larger the somebody like what's the point like these are sound is it seemed like Libya, Jim Walsh of watching how efficiently all high just absolute competing hydro.
One founder Sagicor talking high.
Well my way way up to cheat sheet goals. He taught you about Hancock thing than it was essentially paying high thinking I shouldn't get shot should bound to up to come Hottelet's you should see I may on yes, yet shoots Yigal council shows older down here.
So this barcode platform as the new platform, we launched two how our content creators to connect with brand advertisers and this platform provides our content creators of pricing system order management as well.
Settlement services.
We are hoping that platform will better serve our content creators to increase and expand their commercial potential.
And increased their ecommerce.
Yes, Josh in shops yen fell short haul it just seemed like they were center that's on costs out fishes highly apart what cetone well talk more backend the opposite GMB high should play for you Cheetah, especially now that you have any thought out each on paid us hotels in Baghdad to shoot it affects absolutely.
Since its launch in July we have over 8000 content creator have already.
Participating and find out for at this platform outward T.N.V. I will we'll disclose when we reach a certain milestones.
Just how far how should which should trapasso through the timing and I'll leave it what she won't go and also tend to shareholders, who you are absolutely Chuck.
Show them or single shot on the T.C.P. that he's got shanghai's on that I guess I know.
And last lastly, we'll continue to focus on lean.
Improving our.
Our data eight our power and to provide better decision, making assistance, a presale or cooked.
And to increase our content creators.
Howard.
Your next question comes from the line of Alex News from China renovations.
Please ask your question your line is now open.
This is there anything from credit because even if you're going to triple your heart function so trying to.
Even with Q2, two and kinda mature border to yield video search on the Cohu sound.
One quick on a new Vincent Chao answered the Triple your cards Euticals woman feature on the June trying to get sodium shown subject to know how things are moving triangle notion what should be.
Got you could you just had your what do you attribute having only if we go south beach on the trigger PUGC nearing Pina young country show, saying, we don't take a should then they'll pay you know similar during did at your hope, we'll cross that again, we don't draw.
During the one or two daughters and should we should then.
I'll just so we are quickly I'm just wondering what are the major difference in terms of operating Ohio and growth roadmap.
Between large streaming business and our core.
Business such reconsider lives for me as a business that requires sometime of what's your patience and well rich inflection point when user adoption.
That's the case, how far we've stemming from the inflection point. Thank you.
When you just saw me, but [noise].
Lets users should make a BBB sometime.
Ah you weigh both the desire sort of people should we returned to growth.
Selling a busy.
Touch just Benson.
So you will do the label.
Okay. So hot partner go up.
Oh listen.
Hi, good holiday shoots equal.
Hi, yes, very good.
These are the opposite cultural those high amount of.
So.
Lifelock asking business.
As we mentioned earlier has always been part of our content ecosystem. This is not.
Our singular commercialization Avenue for us, but also important part of our content.
Lifelock Hocking also provides a very good avenue for our content creators to activate and they had their followers as well as for them to.
Increased their commercialization potential.
Hi, This is today and that's where you got the tenure at a country I know it's working.
Team going on when it comes from Hamzah, because he's done to where they probably just creating hall.
These are either.
Hi, good from three to two beating injury free.
We go Hahaha Young woman book, maybe the opposite.
Maybe tortured will pop judiciously Coty, though.
To Baghdad to tighter with one of its working that should we.
So but in the past few years, you may notice there such heavy competition among other like lot housing topline. However, there is really has remained within our own self sustaining ecosystem, our continuous how towns that content creator.
Rising Abbas and they become our like rock Hocking House and are providing very good content. This is quite different I believe it is there a lot for coffee business is quite different on the other a singular lab I had seen Hoffman.
We'll go through the border legal.
NATO movies are sometimes is a true opens and go these are minimal some.
Pretty good question some.
So I'm kind of some younger you'll see the switching that others you on kind of see lurches will start assets I'm confident that number.
So do you know.
Uh Huh, you laid out the whole snowboarder Unilever surging start out with that we've gotten caught took on the individual market wall actual without who could from war touches the color because itself.
Three to find the will she just puts a neutral outerwear.
Our.
Our content offering on the like boxing business is actually mirroring what we have to offer on the video platform for example, our popular.
Our popular game related video would also be our popular lifelock passing a content.
And I can snap on did it in my by asking verticals gain.
Palin shares lifestyle related content, our Uh huh.
Our top verticals.
There's little harder for nasal what makes your dog is bigger jublia will handle that.
So when do an intelligent goodness.
Waters, or though you producer when do those are though the whole dual lateral autotrader. When would you don't do about job you Mitchell watered down conferences, which will go up the whole blended gross it up about one but different when people have you haven't who's going to deal with too.
I would call.
You may see on how awful a lot of the popular crime.
My Bakassi huh.
Also our top how popular top content creators and there are two key factors.
My by happening.
Industry, one is that good faith of my podcasting hoped and second as it gets paid users and we believe we have would have Steve the secret audiences play. The two factors we have both the high quality content quick eight or Oh, Hey are my by asking host.
And we also have a very high quality set of users who love to watch my boxing content.
On to the zones resource or to the more sema, but neighborhood.
So we would see it really goes tools on the go quickly needed to attend Chicago's working kind of comprehensive reasonably.
Got any such as ourselves a little who knows you know.
Sure just who's on the legal Watson's.
The whole.
As a company, which is required because you'll talk through to war.
It's hard to working hard to our they'd be done it isn't it often book so when the food, which is which was awarded the option for you to not only.
The only book publishing we might present pops with retail.
D shoot.
Maybe.
Some little borders coming to see it was huh.
You're welcome Tom so compared to other my marketing platforms.
Right about.
The dominant projection, we tend to have more stable growth instead of up sharply increased.
Circle, because other platform by pursuing.
Does that signing top content host, which will drive.
Revenue in a short term, but the merits of our business model as we tend to have a more stable and sustaining lifecycle and are Comping theater.
Well I bought Hocking hosts lifecycle, we're also tend to be a longer period.
Well sure you seem to eastern regulatory approval to shoot were sitting Hungary booking suite for younger we're nowhere near the you will be done to support its usually sometimes three point number would really be done which week when they.
No. This is working RG Sylvia.
It seems you husband's busy.
We're quite confident to become the spot platform for video content creators.
Given that a video equal live broadcasting content on our platform. We're also quite confident and I will become one of the most popular lifelock operating platform in the future.
[noise] and that concludes the question answer session I would like to turn the conference back over to management for any additional or closing comments.
Thank you once again for joining us today. If you have further questions. Please contact myself doing a young Davidson your IR director on 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, this concludes our conference for today. Thank you all for participating species, everyone. You may now disconnect.
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