Q3 2020 iClick Interactive Asia Group Ltd Earnings Call
[music].
Hello, Ladies and gentlemen, thank you for standing by for like Click Interactive Asia Group Ltd third quarter 2020 financial results Conference call. At this time all participants are in listen only mode. After managements prepared remarks, there will be a question and answer session. Today's conference call is being recorded I will.
Now I'll turn the call over to your host Ms., Lisa Lee Senior manager of Investor Relations. Lisa. Please go ahead.
Hello, everyone and welcome to <unk> third quarter 20, Twond <unk> financial results conference call. The company's resolved where you see the early on to date and are posted online you came down on a press release and sign up for our distribution list by visiting the eye on.
Section on our website at <unk>, our GAAP, Hi, Hi, [laughter].
Oh I see okay. Good comp.
And Tom TJ, Chief Executive Officer, and cofounder of like Creek will first provide a high level on review on the third quarter results and sheer hint that we saw on our execution strategy Chief Financial Officer terrorists, Lee will follow and keep us additional insight on the flow.
In Asia, we saw for the third quarter on Twentytwenty and provide guidance for the remainder of Twentytwenty. He will then turn the call back over to TJ for his closing remarks before the call is open for two in Asia.
Before we continue please note that today's discussion will contain forward looking statements made on under the Safe Harbor provisions on the U.S. Private Securities Litigation Reform Act go 1995.
Forward looking statements involve inherent risk and uncertainties assets.
Such the Companys results may be materially different from the views expressed today for.
Further information regarding these and auto risks and uncertainties is included in the company's 20-F as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statement, except as required.
Under applicable law.
Please also note that I Quakes earnings press release, and this conference call include discussions of on audited GAAP financial information as well as on all day to non-GAAP financial measures like.
Hi quick press release contains a reconciliation of the on all day to non-GAAP measures to the most directly comparable on older to GAAP measures.
I will now turn the call over to our Chief Executive Officer, and co founder Channel Tom TJ. Please go ahead.
Thank you Lisa on their work on to the call everyone.
Despite the continued uncertainty brought on by both on a global open dynamic on the political unrest.
Excited to share the if I take reported another record quarter of financial result.
Moving record revenues on the gross profit for.
These results continue to on a school the value of our innovative data on analytics to our customers and our ability to meet the needs of rapidly changing online consumer behaviors in China.
Our total revenue reached 68 million in the third quarter, a increase of 27% from the third quarter of last year well.
We are also pretty used to have reported record gross profit of 20 million an increase of 48% from the third quarter of last year. Our adjusted net income for the third quarter of Twentytwenty was 2.4 million versus a loss of their upon for.
<unk> million in this quarter of 2019.
We have now achieved four consecutive quarters of positive adjusted net income.
Well its record financial performance in the third quarter demonstrates that our data driven solutions.
The reason they can raise brand customers on the debt, we enjoy significant operating leverage in our business model, allowing us to be increasingly profitable as we achieve additional economies of scale.
China's economy recovery continues on the people are beginning to resume comedy for using the country.
This is in Stark contrast to Europe, which is.
Is experiencing a resurgence of the Korean of Eris sauce.
Gross trade demand now clearly group.
Gross China's recovery on our business continues to growth based on the belief of China's economy will pave the weighted for global recovery.
We have previously commented that we are now at the intersection of the continue the digitalization of China on does the change in behavior of Chinas consumers given the impact of that for renal bears on the we maintain that belief.
Our unique data analytics provide insights tutsis consumer patents on the Saatchi insights.
Proven quite valuable to our brand for consumers.
[noise] [noise] with this I would like to now update you on the to keep segments of our business marketing solutions and enterprise solutions.
Improving the profitability of our marketing solutions business has been a key focus for us in Twentytwenty on I'm happy to report that we have indeed, okay organically growing by double digits year over year.
The marketing solutions business line has been the foundation of our success on the represents a large majority of our total revenue for.
For the continued growth of this segment reflects the shift of marketing budgets into performance based solutions that are focused on online penetration.
Reach needs to be checked on the follow through in order to accurately reflect consumer behavior on their preferences.
I made a macro uncertainties branded customers want higher ROI to ensure the marketing expenses are being spend that you efficiently.
Keeping this in mind, we reported revenue 60 million Yeah, our marketing solutions segment for the third quarter of Twentytwenty, an increase of 17%.
From 51 million for the third quarter of last year, while the recovery has been for.
For order.
Based in China, as we stated in our second quarter earnings call, we have become strategically more selective in bringing on clients in order to account for our steel uncertain macro environment on the to better manage any associated customer risk.
This business segment continues to scale on the contribute materially to our profitability.
Furthermore, we retain and optimistic about the demand for our performance driven marketing solutions as we end the 2020 on the heading to 2021.
Given the double digit gross assets the online marketing market in China on the continue to shift to programmatic advertising that benefits our performance based on the programmatic advertising solutions.
Our second the important initiative for Twentytwenty on the beyond has been to continue developing our enterprise solutions business.
I'm very proud to share with you that the revenue of 18.3 million from this segment in the first nine months has already surpassed four year 2019 revenue on the third quarter contribution of 8.8 million showed earlier.
200 on those 36% increase year over year versus a comparable sales quarter in last year. So.
Before we see this business segment is on track to at least double the revenue.
Of 10 million in 2019, Moreover, even more encouraging is that the quarterly revenue contribution from enterprise solutions already paid over 10% of total revenue for the first time in the third quarter of 2020 that is worse.
Innovating that gross margins in the enterprise solutions segment, almost a three times debt of our coal marketing solution segment.
As a result, we remain very optimistic regarding the growth potential for this business segment to drive both our top line on the bottom line in the future.
We are extremely pleased with our solid execution in launching these initiatives from the ground up in early 2019 on the success. So far confirms our customers robust demand for these services on that reflects the superior quality of our.
Execution.
Overall.
I'm extremely confident that we are moving in the right direction toward becoming the leading marketing on the enterprise cloud platform in China that helps brands acquired traffic maintain cash.
Tumors and optimize customers for lifetime values.
We are quite optimistic that our strategy on the future execution will lead to strong financial results that really highlights our operating leverage.
With a healthy cash position at the end of the second quarter on the following the public offering in the third quarter. We are now able not only to better execute our business plan of growing our business organically.
But also to accelerate our inorganic growth strategy through seeking new opportunities to speed up the development of our enterprise solution segment.
Complement our product offerings expanded the scope of our business on the reach new customers in innovative ways for the third quarter was quite busy with respect to partnership on the M&A discussions.
A minute etch addressing these strategic initiatives.
We recently announced our you increased a controlling interest in chunky.
Leading independent software vendor that provides intelligent retail on the CRM solutions. We believe the increased the stake will accelerate the integration of channel use products on the services into I click on the further strengthening our enterprise solutions offerings debt.
Allow us to revive the industry, leading smart retail solutions to our clients.
Subsequent to the quarter ended we announced a collaboration with Tencent International business group.
On which we will co develop smart retail on the smart Taiwan SaaS solutions that will begin in Hong Kong South Korea on the Thailand under then expand into other APAC countries also.
Also as part of our enterprise solutions offering these programs well use our pain on solutions with Tencent reach had many programs, which utilize tons and AI chat bought on the fish on recognition technologies as one of the largest global social media.
Companies Tencent has tremendous reach into the preferences of consumers on the we are excited to overlay our data analytics on such a platform for the retail on the travel industry in the Asia market as it continues to rebound.
On.
We also re.
Recently acquired Cmrs group, a leading marketing automation company that provides some space for solutions to help brand to come from.
Managed.
Pos for on the social media resources.
CMI as also has a strong on the high quality client portfolio.
Which we believe should generate even further synergies between the two companies soon further up sales or cross sell opportunities.
This is also an impact for threaded strategy moving that further expands our product offerings to the POS zone on the social media segment of the consumer market, which is our book, which is clearly a trend that Brent will rely on more in.
The future.
We continue to seek new M&A targets, which reach beyond the reach of the ecosystem or has the ability to manage and the integrated ways from multiple touch points on behalf of brands for instance, we see Pete.
Opinion leaders short form video on the influence of platforms as attractive markets for us on the we believe the integration of these platforms into our data analytics solution platform would be seen as significant the value added by our brand plans.
Brent could find Asia challenging in managing various media channel touch points.
Interface in Winchester.
And the consumers on a look to us to effectively manage the consumer experience. We are also seeking additional capabilities in consumer analytics to provide our customers for is more comprehensive on the consumer centered on smartphones.
Total opportunity beyond the reach of items system.
But that also offers integrated omni channel management.
I would like to provide a brief mention of some industry awards on the risk in Asia, we received in the third quarter.
Top 50, most admired for companies to watch Twentytwenty buys a C O views.
Most innovative marketing technology solution provider Twentytwenty as a global Excellence awards by AI Global media.
Marriage winner Smart retail Tech award edge Smart retailing awards by phone calls from retail Management Association.
Big data on the Smart solutions company of the year, that's a Tiger Roar Award Twentytwenty.
Top 10, private traffic service providers as China private traffic industry Award Twentytwenty best marketing gold at the creative awarded innovation Twentytwenty.
Gross marketing case study gold and has the most valuable digital marketing company of the year edge.
Edmund Awards from audience measurement platform.
Good day gum digital advertising awards, a pack 2020, it's always very gratifying to be recognized as the industry leader. These are words complement our fine execution on the art tribute to the hard work on the.
Perseverance of our entire organization even in these challenging times. This concludes my opening remarks on I would now like to turn the call over to our CFO parents free to discuss the third quarter 2000, depending on financials.
Terence.
Thank you for the Jade I am happy to report and others. This assets goes down on financial results for the company as TJ mentioned earlier, we reported record revenues and growth and gross profit in the first quarter. Furthermore, adjusted EBITDA and adjusted net income also reached Westcott.
Levels for any third quarter in our company's history.
Our revenue for the third quarter of trendy trendy grew to 68.9 million an increase of 27% from 54.2 million for the same period of the power a year.
As TJ mentioned earlier. This result attributable to the increased contributions from existing marketing solutions and enterprise solutions that balance for the first quarter of trendy trendy compared to the same period in 2019.
The revenue from marketing solution grew to 60.1 million for the first quarter of Twentytwenty, an increase of 17% from 51.6 million for the third quarter of 2019 come primarily as the result of growing market demand for marketers.
The revenues of our whole business have steadily increased overtime and have given us the ability to improve our platform and find out into other opportunities the.
Revenue from Enterprise solutions was $8.8 million for the first quarter on Twentytwenty, an increase of 236% from 2.6 million, we reported for the first quarter of 2019.
Thus growth was driven primarily by the increasing immediate on this for on NIE and on like customers behavioral data integration.
We continue to build on our success as revenues in this division continues to increase as stated before the higher gross margins in and the price solutions May continue growth in this division is that TJ priority for us.
The gross profit for the third quarter of Twentytwenty was $20.1 million, an increase of 48% registered for 13.6 million for the comparable year ago period.
Driving the higher gross profit was revenue growth from both the marketing solutions and enterprise solutions that net.
The later, which generates significantly higher gross margins I.
I would like to provide for the color on the GAAP net loss of 7.1 million into for a quarter. The net loss resulted primarily from the one all fair value losses of convertible notes and diverted liabilities of 7.8 million add though stock price performance remained strong during the for a quarter trendy trends.
Fat low such fair value losses in a deterrent as all convertible notes with Woody converted in the for quarter.
As of September 30, 2020, the company had cash and cash equivalents timed deposit and restricted cash of 128 million comparing with 16, one on 1 billion as of December for the first 2019.
For the rest of my discussion I will focus on our non-GAAP results you can find witness nations of these non-GAAP results in the press release, we posed earlier today, and which can be assessed and our investor Relations website.
The adjusted EBITDA for the first quarter of trendy trendy was $4.7 million, an increase of 225% year on year compared to one from 4 million in the first quarter of 2019.
The results were primarily due to the increase in gross profit.
The adjusted net income for the third quarter trendy trendy was 2.4 million compared with an adjusted net loss on open 5 million in the third quarter of 2019.
As stated earlier this is our for consecutive quarter of positive adjusted net income.
We reported gross billing on $167.1 million for the third quarter of Twentytwenty, which were percent a 7% decrease compared with 180.2 million in the first quarter of 2019.
They're stable performance with back out that you take focus in risk management.
And it's nothing good quality tie ins and meet economic uncertainty.
For further information please see the detailed recap of other financial matters in the past relief.
Issue today.
On January 15 2020.
We allowed for a share repurchase program.
In which we may purchase price.
Up to 10 million of our own Ats.
For December 29, trendy trendy.
As of September 30.
Sandy Sandy.
Good day purchase revenue remained unchanged at approximately on 7 million.
In September.
We compete a puppet follow on financing.
That was oversubscribed by many investor.
The follow on site is a one in on 5 million EPS pie.
Hi debt on $5.
The strong demand for debt financing is reconciliation of our strategic direction and continued execution in growing our core marketing juice on salmon and ramping revenue.
And higher margin contribution from our young for enterprise solutions on that.
We view this financing assay, we IPO Ed.
It not only improve our share liquidity, but also for multiple prestigious institutional investor in dry tech.
Who are holding on term will on the company's success.
Moreover, we now have a healthy cash position that gives us more flexibility not only in funding the working capital needs. This on positive growth on both enterprise and marketing solutions.
Also in accelerating our M&A planning and execution.
This was the first time.
The contribution from our enterprise solution it over 10% of total revenue.
With the resources to income and multiple growth strategies.
We expect these initiatives to further propel our profit growth in trading credit for us.
I will now like to conclude by remarks about how low.
For the fourth quarter of trendy trendy.
Please note that our low for weapon NYU is based on current market conditions and reset our carbon gauges of the COVID-19 pandemic impact.
These are subject to change.
For the fourth quarter of trendy trendy.
Revenue is estimated to be between 73 million and 76 million.
Revenue from enterprise solution.
Its estimate to between ink on $5 million and 10 on 5 million.
Gross profit is estimated to be between $20.9 million and 20 from on line on 5 million.
For full year 2020.
Revenue is estimated to be between 240 million and $216 million.
Gross profit is estimated to be between 70 million and $75 million.
We have for them, we wind up the guidance of adjusted EBITDA. Adjusted EBITDA is now estimated to be between for the median and $17 million.
With that I now turn the call back over to TJ for closing remarks.
Thank you appearance. These results represent significant hard work that despite the challenging environment.
Hi for once again brought us to read for setting performance.
We continue to execute on our major objectives on the continue to grow our client base, we expect to have our marketing solutions business to continue on a stable price growing organically toward a profitability at the same time, we will.
Continue to grow our enterprise solutions business as our as we continue to devote the appropriate resources to promote its development.
We expect that in the near future, we will launch a suite of standard products associated with enterprise solutions to help us tap into the mid sized client.
This initiative well from us expand our overall.
Market share while also for swing, our new client base.
Also as we continue to be recognized as a leading in integrated enterprise on the marketing cloud platform for Chinas consumer market.
Through our payload digital analytic services for brand customers, we will integrate on the launch products on for key platforms programmatic marketing platform.
Consumer experience platform, social commerce platform on the consumer lifecycle data management platform.
These new initiatives will empower clients to boost sales from different combinations of product lines. We will continue to update you on our progress when we launch any products.
Overall, we.
We are very proud of our achievements in the third quarter as we reached record revenue on the gross profit.
Product enhancements on upgrades to further benefit our brand customers on the was recognized by industry Awards and accolades for our capabilities, which indicates we are on track to reach to reaching our ultimate goal.
This concludes our prepared remarks, thank you for joining us on todays call. We will now open the call to questions. Operator. Please go ahead.
Thank you for the benefit of all participants on today's call. If you wish to ask your question in Chinese. Please immediately repeat your question in English.
On to ask a question for me Chris Star then one on your Touchtone phone for using Speakerphone. Please pick up your handset we're pressing the keys to withdraw your question. Please press Star then two please limit yourself to one question at this time, we'll pause momentarily to assemble the roster.
Our first question is from Thomas Chong from Jefferies. Please go ahead.
Thomas is your low.
On mute.
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GAAP.
Opens many coming for taking my questions and congratulations on a solid that'll be soaps Mike.
My first question is applied to the 2021 piece in this outlook, we just debt in the press release, we have highlighted.
The pullback.
We still have some in a.
Coming into Twentytwenty, one so I'm just wondering any.
Any thoughts about Q1 next year on the E jets and he's going to one of.
Of course, the online marketing and the price as a disease.
And my second question is about our EMEA Asia strategies.
Comment about the M&A on Cmos.
I'm on for Paul SaaS as well as the on the marketing it seems that it is also complementary to our own on marketing solutions business. So just want to get a sense about how we can generate synergies who I.
Perfect. Thank you.
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[noise] and still high Oh I am today. Thank you very much for your first question I wages side here why basically sound now my Pontiac. The first as you can see depended on it in China is actually under control and the economy of China is.
Being we cover a very rapidly so.
So we can see that starting from quarter three lots of the factors that were impacted by debt pinned down net in the first half actually started to coming back to the normal track and so for example for the travel data.
And it was hard hit in the first in the first half.
But now we can see it is with gaming business. It is slightly increasing the quoted for and for this Saturday night games.
Which were which were increasing quite well in the first half.
It is still increasing so we established trend of the fast growing sectors to continue in Q 2021.
So on the war, we saying low.
Yeah for the outlook of net Yeah AG is depend on that doesn't bring any new change hopefully the economy of China, we will be back to the credit pandemic level.
Thank you.
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Okay assets.
So to answer your second question first I would like to emphasize again on our M&A strategy.
So like we mentioned in the in the past right now we mainly focus on the ammonite ways. The enterprise solutions as a solution provider and they went for a major depression that we focus on.
First we will mainly look how the providers, which are about customer behavior data analysis and also on the data analysis and also I technology on just second we will look for enterprises that point by on surfaces or product about Pos for life clean.
Because we think that they can better help as Dick and this can better help our clients achieve more consumers in the future. After third direction is the customer experience management, which is a C.M. for shop and.
Your question is the Marquette product in surface. So as we all know in the U.S. There, we did really well low market come for me, which is called a hotspot. They are oh, we answered by email marketing for in China, We don't feel people people to use leach out here more than email so.
So here for their mindset potash, we will focus on return on so.
So this is the first one on one night on the second talking about the rationale and strategy on 50 on M. ATV. So I would say it companies very similar to our business and since it is a focused on debt came well and also it's a very market OEM sales.
So he can provide a supplementary services to our company.
Right now.
Besides that it can also help has a span the overseas market that because they have.
They have been better operating in the overseas market. They also have very strong capabilities on data analysis and.
And more importantly, they have a very strong client base, including HK TMT, our peaches points and also at Panera, We call. So we hope that in the future is complete.
So I will.
We'll have more as John cooperating with us and better integrated services and products into our ecosystem. Thank you.
Again, please limit yourself to one question for next question is from.
Brian Kinstlinger from Alliance Global Partners. Please go ahead.
Great. Thanks, so much I'm curious how many enterprises you have built many EPS for the third quarter year to date and your total installed base and then what percentage of your enterprise revenue today is recurring and talk about the successes, you're having in selling second and third applications for these customers.
Thank you.
Hi, Brian This is Tara.
During the quarter, we add a one body 50, new tires.
And the total installed base was already over 100 times.
Within which are on cannabis on was recurring.
Thank you and you and your ability to sell second and third applications with these customers.
[noise] on and can you repeat the second part.
I was curious your ability to sell cross sell new applications into your existing client base.
We are currently working on something to standardize on new applications, maybe TJ can add more color on that.
TJ.
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Okay.
So there were three major strategies that we are taking a still for the depending on the enterprise solutions. The first we will mainly.
Focus on the organic growth of the old the old client that we have already got in 20 lighting, we will try to have some use debt PPS products and services that we have been for fighting to them for a while so we can see that you know in this process. There is a huge space for the up sell.
And second we will also try to 10 six trend more marketing solutions clients to be the enterprise solution clients, but of course, because enterprise solutions right now mainly focus on the consumer goods industry. So when we transition.
And marketing solutions clients, we will also focus more on on the sector and with the development of our new products and also the capabilities that we integrate from our M&A partner in the future. We I mean, we have to see.
A bigger transition of their clients and also Sir it's our development of the standard Paul that we hold that and we hope to into free cash after with the Pellerito standard product suite, we can hopefully acquire more mid and clients.
Yeah.
The next question is from sales.
On Jang from benchmark. Please go ahead.
Oh Wow, Okay, I'm, sorry, I can't imagine.
Good day.
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How should the group has a potential gross well yeah.
For solution into next year.
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Our dealerships, which in Washington on June.
In Asia for growth.
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No catch on completion and our company has the on maintaining a very good cooperation relationship around on time whether in deficit.
Surfaces of marketing solutions were in enterprise solutions, we are actually one of the themes.
They are one one of the six very limited providers for attempting complete increasing on 10 cents, including for instance, Maui, Tom we tops.
Enterprise, we track, we track payment cleaning program Tencent crowd and also I think the nice thing that we have on lots of touch points with tens and commodity in the cooperation. So for the first time, we have coty balance on new south products with tempting crowd credit on together and second.
Early on we also have words with Tencent terrorism, and a cultural recommendation crack on to Tigana Tuesday, Ballard automatic recommendation system.
Oh, which can help our enterprise solution and also there in terms of the cooperation with Tencent advertising sentiment. We have some there. This actual capex light that can K Asia and ask Keith we had earlier, so we believe that with more.
Yes is that for cases like then we can easily touch more new clients in the future and expand our market and also for US. We are also working with Tencent International business group and to provide the assets solution.
In terms of the small we Cal and smart travel and we expect to expand our market share in Hong Kong, South Korea, and Pine end markets.
So on that.
Based on this I. This is for the brief of our cooperation with Tencent company.
The next question comes from Darren Aftahi from Roth Capital Partners. Please go ahead.
Hi, Thanks for taking my questions on potential well just on the enterprise solutions growth could you kind of talk about what the relative mixes between existing clients contribute to the growth versus new items.
Just curious about what retention rates on right now thanks.
Thanks.
Oh.
Hi, Darren U haul Oh sure TJ on the enterprise solution that uses our genius ends on phone call should do a good job losses for the a woman she wishes.
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ER volume peculiar given how about on the woman kick on the intruder. John are you could you cheat Oh shoot free though kohona additional training on top of the warming year Youre, a total GGB agriculture, none of the children. Okay. Eugenio online for from Cohu is into two GAAP.
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We did on Copel. She on on energy, if we hold you should Tasmanian bihac's, social free touching bigger jobs for that.
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So for the enterprise solution. This year, we have app debt about 100 aircraft, which we almost achieved our annual targets and debt with that at the beginning of this year and a low yeah. We have acquired for adults one hunter.
Clients and some of them are have already weaker and for those who started working with US later and they still have been weaker yes.
So I would say in total the recurring weight of the existing client, it's about 10% and the other clients are they were in the first day other prestea we have child.
The next question comes from Colin Liu from China Renaissance. Please go ahead.
Hey, DJ parents know that debt how that goes from CCG again, two ways on CRM on stood for sure.
Acquisitions.
For bona Fide season women's in that from a currency go down again sales.
GAAP sudden deal flow.
So Mike Tyson woman quickly on tools.
Two times on a trend out your door. So they use up your whole team to go on sort of like on a gentleman on.
On banners for muscle price woman, who turned on these anda on that.
And that you're going on cross selling bedroom to you for a day type for though.
So oh just credit for transport.
So.
I just want to ask about if there's any day or timetable.
Time table for 10 of preparing for integration timetable on that.
Management can share with us regarding the on Samaras acquisition.
About what time from now on we could see a you know the the Merck care for additional in Pakistan debt and also on operational wise.
One on redundancy on.
The company starts capitalizing that.
Force any opportunities on from this two sides. Please.
I knew how well sure TJ acquired is realized surgical case on the future.
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Oh, so high on T.J. to answer your first question. So on my we briefly introduce the rationale on Lockheed on for M&A I'll see our assets first of all the time line, we expect to finish the integration our CMO assets.
For in about two to three quarter. So.
Hopefully by mid 2021 or at least in the quarter three 2020 one we can finish the integration.
With the MSR assets and also Oh become more adjusted to their team and products.
The next question is from Kelvin Lai from Bank of America. Please go ahead.
Thank you very much teacher and turns and good evening and congratulations on the terrific results I was wondering looking at the gross billings, it's down slightly down 7% year on year because.
Trying to optimize our client base every day.
Specific to your credit control now with our strong cash position, particularly after the capital raised in a couple of months ago on our we've done with that optimization and what should we expect in terms of the traditional business on gross billings going forward and secondly, you know looking for strong growth in on for solutions.
Looking at industry trends and looking at the client base from client based on 100, plus clients from William for fourth quarter. How are we comfortable with the upcoming zero and the makeup of the on for solution as a percentage of revenue for thank you.
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Earth tickled to trigger by you shipyard, Jim I went on day, one, but they should copel teach and the social channel, but they do they do that you know one on can you also don't cohort the Juda group.
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Jay Good gross billing day, John are you going on there.
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The adjusted gross billings from me on for New York Shortly on the easy Asia.
Hi, I'm TJ. Thank you very much for your question, so and so to briefly answered a question of course doing I would say because after condemning on China. Some of the sectors have been hit including the automobile.
Sectors and on travel sector. So thats why we intentionally the left to the crying who are performing better than the average of their industry. So right now what we focus most is the quality of clients not just for a number of cross feeling so are we really hope that we can be found on more color.
And and sectors that can match those jobs, which each of our enterprise solutions group cannot be found on the sustainable as assessed.
Seasonally with our business development. So so overall I would I would say, although we have seen slight decrease in the gross feeling our revenue in total is still growing quite healthy. Thank you.
Now when you know do good job for when teachers to enterprise solution on mainly on the trick or on initial Cleveland on now he was from me on legal channel all well maybe on the enterprise solution, meaning are you not only balance sheet or we don't ultimately opened on.
Our minimum will be on a im not sure you would you wait for enterprise solution the revenue or total woman Jen good revenue. The revenue dollar should on recession articulate triggered dollars for whole are you going to continue to fight on imaging.
So to answer your second question is like well, what what will be the growth rate of the enterprise solution. So we expect it to still be growing at a very fast pace I'm. So hopefully we want on their met the contribution of entered high.
Solution to the total revenue up to 20%, but it depends on the specific condition market conditions last year.
Okay.
Due to time constraints we.
We will be taking no more questions I'd like to turn the conference back over to Lisa Lee for closing remarks.
Hi, Thank you know on once again for joining activate T. T that time constraint, we need to wrap up for code for Dave. If you have any further questions. Please feel free to contact I click on Investor Relations Department EBITDA contact information provided on our website. Thank you.
This.
This conference call you May now disconnect. Your line. Thank you.
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