Q2 2020 Autohome Inc Earnings Call
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Second quarter earnings.
Earnings Conference call I.
Yes, Hi, Oh [laughter] art.
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A question I asked him a phone <unk> a formal presentation.
As a reminder, it's conference call extreme accordingly.
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You may begin.
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Hello, everyone and welcome.
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Our press release.
On the company's website.
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After the prepared remarks.
So John.
I will be available to answer your question.
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Directly comparable GAAP measures.
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Good morning.
I like our quite well Oh Oh.
Oh well.
Autohomes IR website, I will now turn the call much older homes.
Thank you ended up Hello, everyone. Thank you for joining us today I'm pleased to report for the quarter.
Total revenue.
HM 2.1 billion revenue from New initiative.
We used to by 38% the l. yet.
Contributor to compete 2% OCO revenue.
By strong growth beta products, as well I'd say, Aldo financing and the transaction business.
But just to the nice margin increased year over year 38.1 per se.
In the second the quota.
We made the baby's driver.
Moving an open and the diversify the automotive ecosystem.
I'll unique product the metrics and ongoing innovation.
Okay. So the number of the are used to assess our mobile website I'm Uh huh.
And then you have increased 38 million.
Like improving compare with the same carried out last year and up to 30% compared to the money put your 20.
Regarding love screen.
In the second quarter over for the brand.
<unk> three large screen program Oh Hello.
Average viewership, reaching 420000 for each program.
We also integrate them live stream.
Two large activities such as <unk>.
Hey, good morning, eight Bravo Super Auto show.
And the provide the training costs and to be those.
Our goal true because this oh, sorry to record the run but with the cumulative Jim here in the first seven most.
Oh, Yeah, Copone, RMB 230 million more than doubled compared with the number for the full year.
Putting nike despite the unfavorable market conditions.
In addition, we've accumulated about the 1 million pieces of work [laughter] reviews, and the short video poker.
Uh huh.
But to fight our content library, and establishing solid foundation for a while to see business.
Oh that product continued to convenient to posted strong growth in both revenue and the number of paying customers.
In the second quarter.
Revenue from based products increased by nearly 70% the year over year I had the for the first half of Twentytwenty a total of 25 automakers, we're engaged with us.
Oh impact can you talk about adding how did your marketing solutions collectively brought us above the 70 providers in the first half of the philosophy.
Equivalent to the total number of the program for the full year, but the nice thing.
Demonstrating the value of our entire their product series.
Oh continuous effort in product innovation have being translated into improved monetization as we saw considerably increases.
[noise] you average revenue per automaker.
In terms of all data products to dealers.
In the second quarter over 17 thousands of either.
Users out there the product.
We continue to strengthen our service with quality and he has a competitiveness by optimizing existing products on a rolling out new ways being but meanwhile.
For example, Oh, we're not quite the our online showroom.
And along the same lots of the smaller store to fund zero.
The next that.
We plan to release mob Sal and this month, South Africa, South Florida.
The former the former one how do you know manages the use of installed visit process and that's just the in the convert conversion.
The lateral and to generate service leap.
For the U.S., So contest and interactive pools.
With the expanded smart fuse product portfolio.
We are able to provide the end to end the Costar group's services.
Well presell, who opt to sell.
The third or fourth all you have digital transformation, we expanded the how offerings beyond the protest placed the services.
With the annual performance base comprehensive marketing solutions now available, helping out automaker partners plan and the carry out their marketing campaigns more effective more efficiently.
We have already engaged with some of our strategy to automate popular regarding this solution by now.
As a flat sure you're right for the year.
When they grow low Super auto show attached to that brought the pension fund Oems and dealers. In addition to massive auto consumers and they do this.
As a result, although.
A total of more than 70, Brad and over 2000 to 400 dealers have joined the bank.
In terms in terms of our used car platform in the second the quarter of used car business unit.
As a whole.
As a whole achieve the rapid revenue wrap up with nearly 30% the year over year growth.
As for dollar financing business in the second quarter total GMV for the consumer loans increased by 45% video view.
Finally.
For the overseas business.
We continue to refine Oh, yes auto product.
Oh via and the Threed products are unique in overseas reserves that attracts a broad user base neovasc.
The total monthly unique visitors for yes auto exceed that when will the women really mark and the continues to grow.
Alongside with the ramp up in happy.
Our customers if you know customer expansion showed a strong traction.
As of last.
We we have connected with over 2200 dealers and the telco S.K.U.R. Howell oversee impactful.
Reaching 400.
450000.
Following our recent eight was eight hours show.
We've tried to organize our first educate overseas online auto show next month to support our customers and the further promote our bread in overseas markets.
In conclusion.
Autohomes well continue to leverage is competitive advantages in cockpit technology and the big data to provide customers with the results driven marketing solution.
We believe that team.
18, new market dynamics.
We remain focused on expanding the breadth and depth of our offerings, while providing customers with a highly efficient.
Pelican services that generate even more value for the automotive industry.
With that I'll now turn the call over to our CFO will open Joel.
Closer look at our second quarter financial results as well as the business outlook for the third quarter of Twentytwenty.
Thank you May hi, everyone ethylene has already highlighted we are pleased to report a solid second quarter Pik note that asked was prior calls I will reference RFP only my discussions thanks.
Net revenues for the second quarter were 2.31 billion, a slight increase compared to Q2 last year.
For diesel breakdown media services revenue was 110 to 10 minutes.
Generation services revenues were 841.
Online marketplace, and others revenues increased by 8% year over year to 540 minutes.
Very to them by gross of data products, as well and auto financing transactions.
Moving on to costs.
Cost of revenue was 265 million compared to 264 million.
Q2 off last year.
Gross margin remained stable at 89% in the second quarter.
Turning to our operating expenses sales and marketing expenses in the second quarter were 872 million.
Compared to 893, good then in Q2 2019.
PMP expenses was 226 million.
Compared to 361 million in Q2 2019.
Finally, GMI expenses were 82 million roughly stable compared to battle, but.
Overall, we delivered and operating profit also paid 171 minute for the second quarter compared to 875 today and the corresponding period offline.
Adjusted net income attributable to honor home with 881 million for the second quarter compared to 850, finding in decreased only fiscal 2019.
Non-GAAP basic and diluted earnings per share.
For the second quarter for high end B seven.
0.39, and RMB 7.36, respectively.
To RMB 7.22 at RMB 7.15, respectively in the corresponding period.
As of June Thirtyth, Twentytwenty, our balance sheet remains strong with cash cash equivalents and short term investments.
15.343.
Yes.
We generate operating cash flow of 166 million in the second quarter I'll, Let me touch.
Now, let me address our third quarter 2000 Funtv outlook.
This reflects our current send a preliminary view on the market and operating conditions and maybe subject to changes.
At this point.
We expect to generate net revenues in the range of RMB 2.240 billion to RMB two stood at 200 and.
Ptv.
In summary, our second quarter results reflect.
Solid progress in executing our key growth strategy. He had a product together with auto finance and transmission business.
Achieved double digit revenue growth.
Contributing to strong year over year growth of 38% and only marketplace AD revenues.
Core businesses also register sequential improvement.
Indicate the gradual recovery of auto market.
Meanwhile, net margin for quarter improved on a year over year basis, as we remain committed to enhancing operating efficiency across the platform.
We will continue to explore new growth opportunities Lucky a year disciplined cost structure.
On a to deliver positive returns for shareholders now right.
With that we're ready to take your questions operator.
Open to Michael.
Thank you.
Now we will begin in our Q in a session.
A question for speakers. Please doubts euro won on the credit Multipack now Spencer the Q.
What's your name again now you can ask your question.
My question I'm, sorry, if it's hard to speak you can doubts zero two to cancel your question.
During my that you may ask the question.
You have follow up questions, you, making so by rejoining the queue.
One moment eight bucks the question.
A quick questions from Thomas Chong from Jeffrey maybe get a question.
Hi, I could deepening not banks management, but taking my questions and congratulations on a solid that's helped results.
My question is about the auto industry outlook in the second half as well as how we think about the competitive landscape in coming quarters and not quick.
Another follow up the small about.
We have just talk about how should we think about.
That I boys will be launch in the second half and how many products to be in kind of trended one I. Thank you.
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Jamie Feldman.
Okay. So the first question, how we'd like to you might be Mr. Shao to take the first one the outlook of the all the industry for the second half a year.
Hockey Brave took Oh, yeah, just your financing during the Clinton or are you guys.
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Well from it.
Now if you ask my comment about the overall market outlook and related to competition I wouldn't say if you look the year round the second half the year would be better than the first half of the here.
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No look that we should I think I'm not too much on it sounds like amateur hike summit.
Mike reasoning behind event, it's because if you look at the first half of the older business in China. The overall in the speed dropped by 20%.
The year round, the outlook would be flat or single digit growth. So this is a case, we can draw conclusions that the second half would be better than the first half.
Further the hydrogen John I kinda.
I should go up but just you have gotten into the I'm not sure young do you can I just took a.
Could you talk to just wanted to God, we decided not to go out you're talking about shisha shipyard and Jeff.
Now talking about the competition.
In accordance with the whether we have with that said at the beginning of the yes that is a lot of for automakers. They are moving their budgets.
From offline to online. So they are there will be a lot of policy just highlights on the online thing activities and the marketing.
Sorry about the aren't going to address it took a USANA you sign a chunk pick up I told you don't want.
Tickets you see a shipyard in check.
We also see that Ken.
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More practically would it be allocated to the top playing in industry.
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Jim I should I should decide that they teach out so yes, commercial credit and shelf to achieve your shipyards, which I just your trust architecture.
Yes.
And there is a good feature is that people pay more attention to the quality having effectiveness.
Activities.
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Okay. That's helpful. My answer thank you.
Okay.
Well I went out with waning sluggish I mean generally the we left.
Okay, then young onshore man. So my now why you towards each how that's what you're touching on man somebody to 9100 Arsenal look we'll just on that yet.
That's helpful for that thoughts you should go up.
But how shamalia, it Ethiopia and that trend yet.
Sure.
When you try not the switch I think.
She hard or how should not be ahead for us.
Now thank you for the question.
Really.
So your question about our data products for the first half of that you're actually we already signed the contract with 25 automaker and actually we launched about 17.
Which is comparable to what happened in 2019.
So you shop, and then they'll find out one man surveys that we just how come in.
Sure No Sasha that there is a tangent jihad contingency gel on us each enjoys that don't change with the HR leaders architecture.
Okay.
Yes, we do have a plan to further upgrade the intelligence led to market.
Intelligent also marks on intelligent review conference.
To that version 2.0 upgrading.
Generally Jonah somebody I know you May you will you watch Ginger said, they're not yet I don't know on and sluggish.
So thank you Michel hung up on our core decides shopping in a high now will now between core Munda generally social.
If we can fluctuate rule sends a few times.
I'm not sure about that.
Moving on local that social.
Oh, hi on how that Jim good that the upward that the autonomy.
As part of data product for the dealer actually we already signed with the contract with 17000 dealer, they're all four store dealer Ana Paula later half of please yeah were going to further consolidate our business in the smart cells, Matt The war.
Matt after sales for the dealer.
And then the remaining in that Jim good. So your timing, we apply that lineup will shed light on the on me.
Due to the we allow youre just shutting that will switch I mean, so they should thousands of the challenging.
So you gave me a nominal number it's really good gtone late.
Thanks, Todd tidy up or down while latitude saw some good.
Wow so between the teaching.
For the data product the blueprint for next year actually we'll wait to see some.
Research and as well as on the for next yes data product, we are going to transform from the sees US now we are into more integrated macro picture as scenario, which was a co with the industrial Internet business. This would it be our new strategy and for that.
Data products next year.
Okay.
With our decision.
That's helpful. My answers thank you very much.
Thank you.
Now moving up next question, we have marine that young from Bank of America, you May begin a question.
Okay. Thank you operator, well now how Nicola will have shown Charles on Council and households will highlight Anita.
Additionally, the Teavana hopefully teaches us either you'd see the holiday. Thank you should play on the Nigger Liberty home decile quantities class sell them kind I will just be dual network all the Wendy.
So without commenting annual eager teashop being challenged argued to a non-GAAP to take on sales and marketing I R&D Duffy on that yet.
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Yes, the whole world class talent to win T.
Thank you for taking my question. So my question is about the op profit margin and the cost control.
So we have seen that accompanies our chief the year over year improvement in margin second quarter, and the non-GAAP sales and marketing R&D expenses in second quarter, both declining year over here. So.
So my question is wondering that what's the outlook for the Paul fit.
Margin in second half this year and also I will I trying to stand up more details about how we're doing the cost control. So we understand the note that that action is to control sell some marketing cost, especially those when it hits your offline expenses and also controlled comp, but my question is wondering if the company cashier.
As you approach to manage the coast and how do you decide which cost need to be reducing which cost need to be we tend to and how do you balance that needed to you know reduce the cost of doing cost control, let's say they need to spend your business in that youre, new businesses and attract the best talent in the industry. Thank you.
Thank you Brenda progression.
Well you actually ask a question about probably need GR contracts, but off in a nutshell, even though.
In Las Vegas, we half you know graduate streamline the you know our cost control profit our budgeting process.
And we have set option to cost expense standards for each hi, Paul circumstances, and that we have been able to.
Pick to Oregon, Effectible budgeting process funeral and.
Always keeping lastly, I'll like in mind and then we always you know actually if at all I feel you know, we actually look our different businesses into three different sort of higher one its traditional businesses.
These type of business that we want to maximize return optimize the operating efficiency and second category is growing businesses add into its kind of business unit here. It's a different extended got to we will actually.
Strengthened on growth rather than you know that they just.
Profit itself and they're going to hurt Patrick incubation and we view halfway.
Our pipeline of new products, new because as you new initiatives that each year, we invest few new quite extensively.
And a two sort all can prepare for future gross and said we treat cannot do three type of business, obviously the differently and so.
So all or our hurdle here no.
That is always to try to pay.
Mall in traditional business and then to reinvest a new initiatives throughout them can continue to grow.
Yes, that's what.
What do we had we have been doing.
We have delivered actually combat approach.
Oh, that's not them into thinking right.
Thank you.
Yes.
You're right that you may ask the question Andy Andy Jen.
Last question unit, you sell Bobby joined to you.
Next question behalf, Eddie Wong from Morgan Stanley.
Your next question.
Hey.
Who is on lot of those also sounds on.
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Intelligence into what.
Well, what do you find yourself.
Thank you benchmark for taking my question. My first question is just want to clarify bats.
Well just mentioned about first half auto south in trying to have been.
20% year over year, but given the recovery.
Korean trends auto market.
You expected afford us full year basis.
Although sales will be flattish or maybe the caught up single digits rolls off year over year basis and on top of dots.
Have you wouldn't see you know do a strong heart recovery, all well Oh, yes, two or to do more advertising and this will pull so overall, our walk DDR service revenue growth during the second half.
Especially.
But look how the basic factor.
Second half of this year actually would have a part you know.
Yeah. Thank you.
Hey, Thanks for question, let me add to whatsoever. So I'll have to effect I think mistral.
Referring to it off you know the industry view for second half.
You have pills will be you know.
It's likely we'll see a slight increase like single digits increase.
And for full year, you know the current industry estimate is doing okay, I will be maybe a minus 5% you're going to 10% difference.
What we might be different total developments you know they think the yes.
She is something we hope procedure costs.
And the asphalt.
Awful makers budget of coal to know if they're held stuff recover I think you know their spending will recover and as a leader in the online marketing.
Total space you know, we will get more water share with our overwhelmingly sort of.
Number of users of instances overall industry and offer we thought before they sort of approach.
To help you know yet get to more the themselves.
That's all of you. Thank you Andy.
Thank you.
Please be reminded that you made the question.
She has a follow up question going to do so by rejoining the queue.
Next we have Brian gone from JJ Group you may begin a question.
Okay.
Sure sure plenty social Genco. She took a hard you will pick up all the edges. What's on one shot social tusa just going to jump onto that you talked to argue to high temperature from Paul G., Google for arch necessary to chip, which has just started on multiple sooner.
It's all went into a whole warm and pitching shelter onto car being able to grow teach outage.
How would you Felicia.
My question is regarding Hall east.
Opening progress all scalar so far Gibbons auto sales had book has been pulled a lot and do you have supply for the price hikes for dealer subscription for next year after the market to stabilize thanks.
Hi, Paul.
Hello.
Oh.
What I tried to go in kiosk.
These are nice agenda, Josh I wanted to go down that Patrick and took a shocking to shut out.
What kind of how she good geopolitical cordial like artistic intimacy channel.
So the RFP or do you guys Ukraine.
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To calculate that you've got.
Tom what I've got a hockey.
So how do you know what man, which had not too I mean, Kashi and Joe will not be tightly tied to your friendship.
Well no connection country density Apple logic.
Well you go for you got it took a children she's yet.
Thank you for your one more question.
You talked a number of dealers actually the dealers.
There was actually grow or shrink according to the south to revenue. It yourself go up there may be more entry of the dealers. If the sales go down there might be exit of the dealers for their wallets clean up and down and it's quite normal in this market look I'd have to your second question, whether we're going to raise the price for next.
Yes, actually we have not decided yet we were going to be back assessment in September October doesn't yet so we would be able to know until that time. Thank you.
Thank you.
We have eating from the ITC maybe camp question.
Thank you good why maybe what you want to do quite well today.
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Yes.
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Thanks.
Good evening mentioning I have two question here.
Yes.
To be 818 auto show could management share big investment in the auto show and.
As expected contribution to the top line.
My second question is about the menu of China is gradually recovering from public Mike.
Hi.
Well what.
New level of our.
Mobile users in Q.
Thanks, Bye-bye the dose Sheila.
DDN National Josh.
How you don't do not much has been a motion Joan Tong mean, OEM, though on that in that Jim will share with us and data now our try that one hour immediately you one dash on down not yet hired on the buyback model.
Generally our annual already out there for that John how do you.
That's still a biowatch agenda pull it back that's for sure the general not yet to 40 in last year shops. So lets say shot at it little tried to play junction and little controller.
Just how here just let the copel the NGL either in dollar you got the yard.
Now thank you for the question. The first one is related to the eight eight Super Auto show.
Okay, the participant ratio actually.
Almost all the active Oems how do you stated to proactively and this eight.
Auto show.
More than 10000.
Actually merchants as well as 2400 dealers also participated in that 8.8 if ODESZA.
We also see that now more than 100.
Dealers. They also launched a similar online version of this one.
One other show on the mini city level.
Younger since you're not dropped by about one hour mainly until she definitely a she'll winner nishi trees for each of that not do the Shelby Dublin.
No John I, just wanted that meal fiber was.
Bump data.
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Shotguns agent with a high either use up benign Jason that you would you like judges.
And also during these data one needs to about a show together lease that Chinese Association up there.
Our industry, we launched about auto consumers quadrant.
As soon as far as we help to come up with 17 keyboard for different the ranking a lot of the automakers was directed in the Billboard.
It's also reflected into Chinese consumers preference.
Total consumption.
And.
And then just financial woman.
The the.
Sounds good that notion that now EMEA, Jason natural synergy with Jim that she'd like here.
So in a jalaluddin, yes sure do it by about 18 in the Tony the two Dahyia the dash.
We also how to launch the traditional online auto show.
Actually improved to add an upgraded into the although festival.
Tom that's bigger than for the Chinese for the industry.
And it's a monumental that show up.
Please.
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Well above that so many Jim.
International should do not yet is Holly channel on the me.
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Jim good the.
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Overall would they generally have a similar level.
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Yes.
And we also have very granted gala evening for the other show actually when you might say to 47 superstar, who participated and performed during this call I evening, and Intel Mcafee viewing censorship censoring.
We are number one in terms of the viewing.
Around that time.
Also this helped it soon become even more successful E commerce Jain dealing with.
What eighttwenty.
I guess, what the King mentioned is that.
We have actually attracted a much more bigger audience during the same knife.
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Yeah.
Thank you look at the social media the most popular one like the label.
Okay and the question.
This has become very.
Very important hawk such as on the pathway. We are around we are among the top second half of what sort of hot such as.
Meanwhile.
Hey, they went way up by our Bob I think Oh, Hana in Kenya, and a bit should yeah youre right.
Teacher Newish at the Arcos Dorados slated we'll leave that cultural issue.
I'm asking you know this yet is the second time, we sell such as very big some others show under this year, we get more matured and accumulated a more experience I mean this year is even more successful than last year.
And then why even once you blame me.
We were down you know what I sound like Tomorrow Nick.
Let me address the.
The second question Bob traffic.
We actually have seen that our mobile traffic in less likely increase on a year over year basis, and the increased by 20% on a sequential basis.
And the number of let's say visit her.
The user per day on their behalf and the kind of spend on our half also increased on a year over year basis.
This is sort of you know.
Result, or more enbridge portfolio of content in the which include.
Like a road trip reviews shorts that you live video streaming and the all different sort of content valuable contributed to growth in terms of traffic fix Brenda.
Thank you.
We have 10 hope from th capital.
Did you get a question.
Right.
Good evening management, given PCGS contract terms store shopping and that she said she found to be somewhat yen halt.
Ladies that you know there so I'm not sure sure Patrick attrition that you're really hot Shannon nicotine. It doesn't mean detailed rule I show you should know that don't have a treaty terms for the hotel Turkey.
Yes, each and especially about short term, what's really changed here you don't need could lead to shelter.
Turning to correct.
So let me tell me Nielsen shape the insights.
Probably shop.
Management, just mentioned auto market in the second half.
If I could be Patrick the first half so I wonder what's the driver is that organic growth or some kind of buckets that stimulate they should uh huh.
In terms of a commitment to the monetization plan.
Yes, we'll never to auto market, which will.
We could see a lot trips.
Steve monetization policy from the government should that this year at least since that didn't see much effective one this so what's the management inside in that front. Thank you.
Yeah.
Hello.
Oh.
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We'll go after you left.
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You're going to usage Logica, how do you guys took a hard collection job.
Well most of which about maybe somebody or how much you know to try to how did you sound like maybe the charge.
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Turning that Dick.
How many individual actually not well much richer than that and I'm sure sure.
You mean to just how nice job.
Sorry to come into yeah pick up.
Okay can not to go well nobody would she at the time, yeah shutdown actually on for Joe Showtime, Oh, you see each which I mentioned that kinda give you touched on that too just how much good job or she's got a ship on that need to see how do you. Simon you started to complete a total door dokely colleagues not that keep on they'd be too dark jackrabbit you watch.
Tied to a chewed up to the issue shopping and it took the each litigation charge, which I'd not watching how much with auction shabaniyah tick up.
A quick to somebody else, what's on tissue America situation that you got pent up.
Thank you for the question. That's helpful. Let me be fine why has the second half uptick there would be better than the first half of that.
Well, we want to compare this here over the same period up last year. If you look at all yet.
Actually, especially May June July their sales comp sales have improved.
And also we they even achieved positive growth. So you said she's a proactive cost out then boxing would it be.
Increasing and there will be more promotions I know, we also see that second half the yes, the impact from the coping 19 epidemic what the less severe as the split the half of yes, so that.
Those are the reasons why we say the second half would it be better.
So overall meters Motorola.
Well, let me shop, Okay, let me add to what the muscle shall has just said you know our.
Cost control I mean part of the sort of recovering from May to July was because of delays.
As you know.
During the coffee 19, if this four months.
Then of course, you know we believe you noted occurrence auto penetration in China is only 170 cost per thousand people.
Which is you know much lower than Thailand, Malaysia, South Korea, which range from 200 4400.
On the overall industrial estimate is that a Chinese auto penetration should be able to reach 400.
The other people in the mid term and so we believe it's about time for us to see some gross.
You are right you know, we do see lots of different the stimulus packages from local government for Penta Feldman.
Ranging from life here in the recovered city too.
And we.
All I came to a reduction also.
But the south Texas for.
Used car or actually the removal of Capex for a movie and from different cities in the.
Probably because you also have a subsidy to buy cars these costs.
And all those you know that efforts you know.
Helped a little bit as well call signal to promote to new car sales.
Overall activations that you know we didn't have a confidence in them.
Philadelphia, the Chinese auto market in the long term.
That's our view.
Thank you.
Okay.
Thank you.
Next we have Branson from Macquarie you may begin your question.
She's a quality Gysle works you well what the ones you ship why youre quite far John So what's going to.
Hi, Michelle way so quantities.
Since the.
Curious in the or do you and do you answered just use the.
Since reaching John Coleman somebody can double months ago, what sort of true. So my why why it took a pause on most of my usual.
In the logo mop they show Myles.
So again I told you saw Dugdale bushel.
Oh, Hi song update you show as usual about the yes. All told you up your Gulf War you guys. Your Slingshot Chico Euro amongst your Glenn is going much shot so nothing to indicate we wish you all four shorts, what does it you're missing.
Oh, what's your thoughts if I use I'll translate myself quickly just want to get a sense on guilt feel good increasing.
Joe political tension how would that impact on your international licensing strategy, what's always investment, but your own Doug.
On the could you quickly.
On people, we have launched so yes auto platform the UK, Germany for Ciber. Most could you quickly show some ups, but could you.
Oh good secure.
Well that we buy sell I think the highlighted earlier in the show me the.
Long term strategy she gets home theater you get.
From a.
Yeah, Hi show him in June.
Sure Jason.
Yeah, and Joel the whole Attriting juices gentle also.
Let me take this question actually the overseas strategy is one of our long term strategy and ever since last year. We had made a lot of researches and analysis I know, we decided to making less money in Europe.
No we cannot handle woman.
No the King fab.
Yeah Paul.
And currently we see that our program in Europe is even better than what we had expected Virginia.
But I agree with.
You said.
While the liberal but.
But that should be solved with Acacia yes volatile.
Sure sure My my people, let's get the salary satellite and maybe you can talk what you'd buy why should jump up by would be the volatility we thought you'd buy fashion.
Them, a dog and feel happy about though and they will now back away.
Actually due to the Colby 19 epidemic. This year, we thought to that to the overseas market may not to be as promising as what we expected however ever since we launched the yes Otelco lies in may.
After three month, we accumulated M&A you have 1 million after we break 1 million Mark.
That's all that we already achieved 1.3 million I mean, you we expect to be a year end and you can reach to 2 million.
Let me Ken doll and.
Have you seen kind of the ashes football compete quite bulk halting Josh.
People, who sold Bolivia showroom figure how many are right.
Possible timing should happen to paying higher.
Under the type of our products are very popular widely welcomed by the overseas Oems as well as dealers. For example, we launched the JV are still room, which are very innovative under which was very warmly welcomed item.
Thank you.
Sentences that they do they will also disease.
Based on the pet Aarding chip.
I think the figure.
Both exactly.
I think people go holiday European.
Well, we can say that tier today, we don't see that geoparks till complexity had to make impact on our business because what we basically Gary I trying to establish a very good a platform and itself the capital as well.
So he had healthy the total HEKA you'll make usage.
And the sum up the local government even offer it a lot of support to us.
Oh good fishing.
Thank you for your questions.
Thank you.
Next question, we have Robyn do from Bernstein.
You may begin a question.
Oh, My God Generalists York two don't go once you back closer to the chance on the Oh. The do go from somebody else will usually always on my thoughts on some was I was.
I will do something into the kinds of course, but.
I thought you accrued listening.
Going forward telephone or.
Are we going on you said that do kind of course all through the.
Those boats or would you go ensemble Gerhard.
You got the Arctic films are you looking Wendy.
You are not just the data part of a dog visible so does it.
Moving on the ground.
So when you Doug are you familiar mill. If you don't know orders are going to see the goal.
I wouldn't mobileye Ludwig <unk> Dupont Brian.
Dot work without Eagle.
We more.
So I've two questions one.
Just on the all lions share of advertising Hum.
Probably went up in the first off will that melt the from the second I'll give an offline activities with the what's a long term.
So and.
On a level for online advertising spend a surgeon and then secondly on data for the management of any medium term financing targets.
This business.
Good luck.
Let me address your question, Thank you and.
Well first of all here, though we.
According to our surveys you know is most off the OEM in the for coffee, though.
They San Diego above, 50% or more online this year and.
That's gotten an increase compared to the path.
For now you know what we have learned from them if that behalf.
Being able to experience in Holland fission online digital solutions are very happy with you know our actually overall solution you know.
Whether it's in college or.
Energy marketing or.
On benefit that we provided the too healthy and ability to convert more customer Andy.
All of this solution has proven to be because they were better our our eyes and those offline.
Solutions and we believe you know I mean, he will definitely.
Compulsion offline spending, but then even though the trend to shift to online, Pennsylvania Hill.
Happen.
Second question was about a beta product right.
Yeah.
Yep.
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In the medium to become you know.
Yeah beta product will.
Easily replicated, even though that the our traditional businesses out there.
This is our goal.
Thank you. Thank you Eric Thank you and open the question had it at that time I will turn the conference back to management for closing comments.
Okay.
Thank you very much for journalists today, we appreciate shows full and we look forward to update you on next quarter's cover school, who is who most pipe in the meantime, please feel free to get in touch with US. If you have any further questions or comments.
Thank you.
Ladies and gentlemen, based completes today's conference call. Thank you.
And you may now disconnect.
Oh, okay.
The company as a little.
[music].