Q3 2020 BlueCity Holdings Ltd Earnings Call
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Was on 20 earnings conference call.
Currently all participants are in the December on me.
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That's a really good recordings of today's call you can happen. The objections you may disconnect at this time.
Now I'll turn the call, but to the Linco hit on the best of the nation's up the company.
The income please proceed.
Thank you operator, and Hello, everyone. Welcome to book, It's still 2020 earnings Conference call.
During the day.
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Chief Executive Officer and meet the Binney.
Because I know shopping.
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Today. The press release is available on the Companys website at <unk>.
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Well add from these lots of it.
A replay of this call will also be available.
Sorry.
Before we can achieve piece of that today's discussion will contain forward looking statements made on the safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Forward looking statements involve risk.
And the second piece.
The company's actually net the material the fund something expectations expressed the today.
For the information regarding the day and other based on.
He is included in the company's poppy filings with the FCC.
So you see.
The company, that's not let's see on any obligation to update any forward looking statements.
The as required under applicable law.
Okay, no that duty on today's call matching the he will also discuss certain non-GAAP financial measures for comparison purposes only.
GAAP results and the reconciliations of GAAP to non-GAAP measures can be.
<unk> earnings press release.
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Ladies and the D. the conference call the.
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I was CFO me the entity will take over the two of these cuts on the business and the financial highlights.
On the Maam. Please go ahead.
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Hello, everyone. Thank you for joining our earnings conference call today with the.
Finished the quarter on the strong knowledge.
Total revenues of 297.6 million up 47.3 per cent for years.
And total paying users on 494000.
For the 3.8 percentage.
Notable day, we generated positive adjusted net income per foot.
Time.
Did the results.
The ability to drive the study and how is the wells the improving.
Pull the money and they can come if any and strong execution.
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Yeah dish interest solid organic wells with for the strengthened our leadership position in the LGBTQ community.
We have to balance a portfolio strategy that per line diesel on caught up in the services.
The acquisition and the expansion to either sub schools and actually all of these let.
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So on the thoughts on the short you don't Google on the inch you totally into.
On the day on called the relied on my cheat sheet pusher yet she likes on pump. She told you book.
Book value as usual.
For acquisitions.
Today, we have completed the acquisition of the into a leading gay social networking asking China, how did the younger generation.
We are excited about the strategic acquisitions.
Okay on payments I like the news App, both seen functionality centered on the dating and lack of any user demographic.
With this acquisition, we have the what extension of our leadership and the dominant in the.
PBT Q come in.
But more importantly.
Our reported matrix.
Jackie younger and much of any animals.
In travel community.
The account.
Feel true the batsman and look forward.
Complementary business and strategic synergy.
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Second as they continue to accelerate our global expansion.
The lighting more localized and the diversified services from Mark.
The America.
The deals I think the fight wishing all of the blues assets.
For some Asian market.
Exclusive head of the voice chat feature.
The goal is to be able to afford assets.
Most of the matches the needs of the local communities.
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We continue to in the wage and lots of new products and services.
This quarter the integrity of the community features on the China washing of the.
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We are also promoting in fact the connection.
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I would also like to highlight the performance of health.
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How's that for the full.
Well like a wide variety of house, we need to set of it.
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The services and comprehensive and then how some of it.
The quarterly revenue from he house grew approximately six times true.
Well the six minute.
Although it's still represent a small fraction of out of the total revenue, we see huge potential house with its true Oh I try the moving she actually meant the LGBTQ coming on.
And our first mover advantage of the user.
The acquisition and.
Commodity.
We see a clear the D bench to look into that the.
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Good day to day.
Many years of action the words I try to be provision has been strongly supported and well recognized like Arlon channel.
Corporate partners.
Going forward, we will launch marking interest here.
And continue to promote LGBTQ of Danny.
Around the world.
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I know they want from mentions that November 2021 of the twenties any work through it all of the funding of stand on the Hawk.
Let's see the previous answer it had to be a long accurate yet meaningful and measurable journey from me.
From one four cents from 58 million.
The around the globe.
Wed like to sell all of those along the way who recognize encourage and help us to be who we are we.
We are dedicated to providing the best services to our members to the <unk>.
On the standing, Florida inhalation knowledge of what's meant and operational improvements.
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To conclude Q3 with the dog <unk>, we made meaningful progress in many aspects of our BNS.
The <unk> said, our leading market position from execution kind of if any assets.
The cheap consolidation will benefit from the fast growing income consumer demand.
The <unk> achieved go back the growth.
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Now, let me turn the call, although our CFO who.
Who will provide details on business and financial performance.
[noise]. Thank you Mr Mom and the thank you everyone for joining our call today.
As many of them on just mentioned.
The delivered another strong quarter of Wheezing press here from business development of folded the financial girls.
Total revenues were RMB 297.6 million.
The 47.3% year over year.
Gross profit of 96 million.
The significant increased 61.7 per cent from the same period over the after years of.
Gross margin was 32.3 per cent too.
Nine percentage points better.
29.4% in the same periods of after year.
Notably, we generally to the talk to the adjusted net income for the first time reach.
Okay.
Yes.
The demonstrated the potential or business model and our capabilities to grow in the profitable manner.
[noise] [noise], we announced of the Finco equity share kind of the end of November.
Think of fees age use social networking GAAP.
You see the swatch feature which users what's left for the like that's what the right to get from matched on the nearby ma'am.
Frank on complements the Blue, which is focused on building the community has oh and the can.
The people in a much broader soon.
Think of users on most of the millennium.
The leaving the first and the second tier cities who'd like to pursue the better quality of life.
As such the.
More willing to pay for high quality so.
As of September 20 point, the finger up had.
Kind of approximately 3 million registered users.
The monthly active users on a daily active users of on 110th of <unk>.
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As we integrate finca, we will accelerate use grows by providing financial support and the technological and operational the system.
Specifically, we've seen because features more appealing to oversee fuses she assuming the profiles, we see huge growth potential for finger to expand the overseas backs. The our years of experience on global expansion on operations.
Likewise finger on will add the younger members and fresh ideas to the community, which will further optimize our product of service offerings.
Moving on strike for the monetization opportunities.
Turning to our recent developments in the operations.
We continue to devote resources to improving operating efficiency.
We also invested in technology innovations to improve the user experience as always.
The August.
No doubt it Lucy the original short video series called Dsos.
We have seven episodes per.
The same sex love stories from seven different angles.
The series have generally to the over 33 million views as well of numerous interactions with the blue and the other social networking apps.
We believe this new series talk to the Hearts and minds of our members and the maturity promote the is the level of user engagement.
[noise] leveraging on the strong data analytics capabilities and the dream of technologies, we launch and on your community feature on I will turn the edition of the Blue dots.
On to the community feature which is similar to from groups users.
Uses of cash enjoying the based on the of callable interest in the background.
On enjoying either reach or seem to social interaction on line.
We're pleased to see that the.
The number of talks the reviewed by the each user and introductions have increased the forgive me because the leasing fees launch.
Oh growing user base, and improving data and analytics and the algorithms, providing a solid foundation to optimize house of is kind of product offerings.
Well build kind of foster equate.
On our sense of the long in the in the community.
Since August the acquisition of love to the leading social networking for the love being committed in China.
Believed we the reduction of the smooth integration and effective operations.
In Boston in human resources technology improvement corporate governance, and the marketing activities.
And they were very pleased to see the art as of November monthly active users increased by 1.2 times since the dawn.
The issue.
The introduction of the new version of love to instead of talking points.
The plot to roll up like streaming services.
He said the and expect the love to contribute a meaningful share of around 2021.
We continue to build the all global problems and the improved broad awareness internationally.
We introduced a major updates to the blue the mobile App in Latin America we.
Option of photo verification and a streamlined user interface, reflecting blue cities support for the local LGBTQ community.
The results are encouraging so far with both I mean, you out of the are you seeing some major countries, increasing 40% compared to the pre launch.
We are confident of future development through our marketing and operational.
Yes.
Over the past few years, we have executed on the clear, especially the strategy. So the the LGBTQ community globally with Taylor the features for local users.
No I won't go through the financial highlights for this quarter.
Before I go into details about our financial results. Please note about four numbers presented.
<unk> for the third quarter of Twentytwenty.
Thank you the all the way.
<unk> percentage of changes on a year over year basis.
The why the especially from.
Detailed analyses of sees contained in the press release, which is available on the IR website.
Oh, the total revenues increased by 47.3% to RMB 297.6 minutes gross well three of them by better monetization of our diverse services and the reach content offerings as well as geographic expansion.
Revenues from overseas contributed 9.7 per cent of total revenue up from 5.6% from the same period last year.
Revenues from life premiums of two reached RMB 200, and the 55.2 million up.
42.9% from the same period of last year.
Quarterly pay per use of the live streaming services increased by 22.8% to 159 solvent.
RPP you increased to 16.4% to RMB thousands of 689.
As per the motion of activities during the quarter increased the within the top use of the to pay for services.
Romney for membership services, what was RMB 18.2 minutes.
GAAP, 56.4% year over year.
Our quarterly pay use of for membership services increased to 55.9% to 300 of 78000.
While L.A.R.P. you increased 2.3% to RMB 40 Act.
Oh, the users have adopted.
Paying membership services quickly thanks to our rich content customized services and the unique products.
Revenues from advising kind of the timing.
RMB 10.1 million.
38.8%.
Oh, the revenues were 14.1 million compared with RMB 4.5 million from the so called the of 2019.
The increase was mainly attributable to the growth of our merchandise sales.
Yes.
Cost of revenues increased by 41 of sent to 200, and the 1.6 million growing in line with the or total revenue.
The increase was primarily due to the gross over revenue sharing costs along the way the continued growth of lot of streaming services.
We also had a share based compensation expenses related to the IPO.
Gross profit from Nike 6.0 million of 61.7 per cent.
Presenting on gross margin of 32.3% to four not 2.9 percentage points higher.
Last year.
The improvement in gross margin, maybe came from lower revenue sharing.
The luxury me revenue was the smaller portion of total revenue.
Live streaming was 57.4% of total revenue down from 65.4 per sitting in the third quarter last year.
As we have more members using the platform was more popular kind of going attractions, we expect to further reduce the relative share of percentage, we service providers and of this can achieve the sustainability higher gross margin.
Meanwhile, faster adoption of the membership services the model, which is higher margin.
Because for the diversify our revenue stream and a shift to us of subscription based model.
Looking at the operation.
Expenses the.
They were 240.7 million up 200, and the 55.2%.
The increase was mainly due to the share based compensation expenses relate to the relating to the IPO from.
The mall there were in line with the gross of out of business.
Adding more employees.
Have the R&D capabilities and the ramped up the advertising in connection with our business expansion.
Selling and the marketing expenses were 58.0 million of 86.3% of year over year.
Increasing sales and the marketing were mainly due to the higher advertising and promotion expenses and staff cost as well out of the share based compensation expenses related to the IPO.
[noise] technology on the development expenses were 15.3 million up 49.5 per cent.
This increase was due to increase the headcount in technology and the development personnel outflow on the share based compensation related to the IPO.
Gee I expensive.
Hundreds of 32.4 million up 4349%.
Chris was mainly due to the professional services fees and share based compensation expense related to the IPO.
Net loss was RMB 100 of 37.8 million.
Paired with a net loss of RMB point 7.1 million last year.
The adjusted net income was RMB 7.1 million compared with adjusted net loss of RMB six for the familiar last year was a remarkable improvement.
Going forward, we will continue to on both our luxury models and upgrade the membership services to promote the consumption of pace of basis.
We were also bordering on our user base, we think the LGBTQ community. We have proved in the global expansion and selective acquisitions.
We are confident in our long term gross profit Bucks.
[noise], we've got let me offer guidance.
Right.
We eat the right around the outlook on.
RMB 1000 kind of.
The two RMB 1000, and the 70 million for the full year Twentytwenty. Therefore for the fourth quarter of Twentytwenty. We expect the net revenues in a range of RMB 277 to RMB 200, and the ninth of them either we present the year over year growth of.
24% two studies.
The sense.
That concludes my prepared remarks.
Open the call for questions.
Operator, Please go ahead.
Very much ladies and gentlemen, we will now begin the question then on so session to ask the questions on the phone. Please press star one from a name to the unknowns.
If you like to cancel request you kind of also pressed Oh ASCII.
Once again to ask a question please press star one.
Oh for the questions comes from the Vial Shampine Hall from <unk>. Please go ahead.
Good morning, and thanks for taking my question on it it seems in this quarter that live streaming Bash posted very strong growth, but it did your guidance for the fourth quarter seems to indicate a slight slowdown.
On can you give more color around the dynamics on live streaming revenues in both the Q3 and heading into Q4 on specifically on the growth trajectory.
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Okay. Thanks, Laura Yes, we do have of their strong quarter of luxury me revenue contribution of these.
The set of quota as opposed to last year, but.
But we do see the management the also have a clip of.
But the share of vision GAAP. So we the call the uniting Pocked hearing China gets left on the active and everything is back the norm right now so people would like to spend a consume less.
Time on line in general So we do see in the fourth quarter that might be impacted to some extent and of that is one of the one of the critical reasons, we would like to just hold of the same on guidance for the whole year Laura.
I think you another interesting dynamic from me anyway was that in may use declined, but you're paying sequentially, but you're paying customers growth grew very rapidly.
How did you drive the.
On the migration towards paying users and what drove the slow down in May you growth.
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Publicans on on Lora actually on Mystic on maybe some quick brief answers and I will add more color. It's based on he's the statement. So mystic missed a margin mix to go actually to the.
The line that's out of one of the Youre the statements not to why the I may using the quarter seems to flow down the main contribution its just of because we.
We do have some a challenging for marketing online or offline in India due to the geopolitical issue of well known globally.
And the given the parts was not even being monetized the history. So it does not it actually affect the order revenue contribution of globally.
It does impact with the on.
You bet on the stuff no impact of the run on your side that's.
Creek, a background for the year.
On the answers the before going to details.
Number two that if the go mentioned about a Cuba. We are right now the number one market share player. We do have our copy to not to have the strong engagement a sense of the long based on extensive strong belongs on all of our users. So I'll use of could be allocated from.
From time to time overtime on quarter over quarter based on our you know from interesting and attractive features.
Kept introduced on this platform numbers.
Number three the that our team on the map management actually keep developing new features on the east memberships model that we keep improving the users interface.
And the feelings and enjoy on the on this platform in general So that's the quick brief two real questions Laura.
Thank you.
Okay. Thank you for the questions.
Onto the next question comes from the line of.
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Regarding the two questions just to mention of by May who of from Tiger Securities and the answer if I missed the gun.
At this stage.
The question number one in regards to the ERP, if you grow and the revenue growth of the reason and.
And also the luxury music revenue sharing slow down Oh, sorry of being decreasing overtime and the reason the end of the target.
Okay. The.
Key reasons for ERP view of grow and also on live streaming revenue in total pie growing interest because of the investment actually keep enhancing our operations for live streaming by the banking more futures to attract more attention from the on life platform users in general and we also do see that.
We this in.
The house to operations methodology applied the overtime, we are getting more and more attractive.
Because you're right from the on live streaming.
Through the the are you at I mean, you in general and that's the key driver for the a P. P value and also the total revenue from luxury mean.
And the target of of the man manageable the is definitely not the given we are right on the already the monkey number one player of the.
LGBT community platform globally, we do have the strong negotiation power to the live streamers from time to time and the at this time last year with you have around.
The thing between 66% to 70%.
Moving to share in two of three minutes and the right now based on the management's efforts over the full four quarters just the peptide that we have successfully of seemed to make its down around the age of FIFO or below 6% and we are still true every effort trying to bring that down on to somewhere.
In between.
50% to 55% index. The several quarters. So that is our tactics to of your house, our gross margin by lower down on the left streaming sharing we the luxury mers.
The second the question regards to the of incurred general financial performance of.
To the next quarter and the for the quarter of being 2021 and also the.
The business model, our diversity of the so think of product.
I'm speaking of the ups culturally ever seen just the complaints from the paper you know the from the paper acquisition wise and the we are right now in the emergence of sector of the steel and the absence of these being audited right now according to the GAAP requirements and the we're going to share with.
The field information as requested the sometime later I'm not sad to see on the total Robin you.
Absolutely yes.
He's on the level of RMB 100 meters on something I in general for sharing.
From Asian purposes only.
And the monetization pie Rico seats, Oh from thinker.
We're mainly a host of <unk> live streaming, but we the very stronger.
Them Lou Dobbs outside the <unk> of the membership services in general Yeah.
I think that's a quick brief all of your.
Questions and answers.
Thank you for the questions. The next questions comes from July Brian Lee of MTV Group. Please go ahead.
The thank you for taking my question on yes.
Strong quarter as you that's the on.
The company 10 profit this quarter. So my question on the expenses the side. So if we get stuck at SBC as you all adjusted Opex ratio was the study of the sad and declining sexually sequentially on the also on the yearly base, though kind of this trend can.
Can you.
And the when one could achieve the operating leverage on the sales of the marketing as we kind of see the sales and marketing of steel accounted for nearly 20% of total revenue so and the particular, you're just acquired the sankey. So when I look at your Red I see the synergy.
With the acquisition the facts are what the end of phase out about Joshi.
Got it kind of though of course the to the but you do a lease no of the when do you actually decide to go sale of on me on what kind of politics are a inks the on that because each of the dice. It essentially the Lucius home to go to the war.
So to go on the <unk>.
So she is out of it.
Okay. So it was on Wednesday, the teachers typically yes, you're catching the whole the audio the hard to sell Wayne shop, both of the side, they got sales and marketing formula to the field a channel.
A couple of your team who would you got to use of the claims yet on the might you wish you. The comes on show Politicals on that wage out to go to hook the hold on to the somebody some of these yes. The energy so much on <unk> says yes.
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Hi.
On the left off.
Okay, Great no.
Just to force efficiency of Ah translation do mind right now types of conducting English to answer on questions.
The show on.
On the public thanks, Okay.
Content on our share based compensation cost for this quarter actually touch of touching base on a touch base on the European out in total. These are on the 20 million you have sort of or something.
So that was huge but that was just the noncash accounting treatments in general and most of them actually took thing DNA. So the excluding them you well conclude a very.
Promising opex as a percentage of talk around of growth.
What I can tell you that this is the.
Very promising, but we do not see it going to just to keep on.
Decreasing in the kind of a pace just because during the IPO process I think we conducted over the year or so that's a way of doing house a lot fight of building up strengthening our corporate governance of procurement processes election.
The election.
The tender process et cetera.
It was actually the the legacy of our in House, you know a couple of confidence from the periods past the by and this is just the starting to impact from the quarter recent in recent quarters of but.
Do we do lots the the relative to be you know in the warm in next quarter is on the was so yes. The result was promising but we do not of the either going to be as aggressive as these pace in future that set of steel we are going to optimize our operations.
Cost of the pictures of total revenue in general Yes, it is going to decrease but not to the thing that aggressive pace. That's the answer to this question.
On the regarding the essence of as President of the revenue you mentioned of 20% of.
Of the management the host on cost us about the eco we're going to grow bigger we have to spend more so on the percentage as you know as the my lapped the quarter earnings statements about the I mentioned that 20 percentage of the of healthy and the as acceptable by the medicines.
For a set amount of financing of total revenue.
So real good, especially we are going to be a global company. So we we we are going to keep that the level of a percentage of revenue for the marketing and the sales in general yeah in future in future quarters.
Those awards.
For the synergy.
As you were asking about four of the cost and the.
Gee on a oh toxic central force about financing.
Virtually yes, we according to the agreed the terms we are going to merge our functional departments of post IPO of thought well keep upgrades of the testing cop brands in the business of.
Separately or independently for Nexus of a quarter's definitely and we're going to optimize our human resource Ah.
The optimized how of finance Department.
And also the legal of procurement eccentric simple, yes of course, we're looking at the very significant opportunity that if we took the combined the two procurement process together that the we definitely have of that stronger negotiation. The addition to deal with the of and doors in general the especially for the so I T related to lack of the cloud.
Like the cost of the moderation machine.
That's true.
Right Yeah.
Oh I read the Ito answer thank of so much.
Thank you for the questions.
Ladies and gentlemen on the interest of time, we will now take the last question from book pay from Oppenheimer. Please go ahead.
Because of the band while the hall of so called she's on people felt the telsey.
No it wasn't eco sleep on your last two the there was a woman. So those are the home buyers on Socore acquaintances.
Prepared remarks to college.
Sounds and it seems like you were on its not walk.
The horse on because it's the grow on Oh. So those are the things it's the way like the the highway.
Take on the let's call. It was on so the last two mill a chunk of it and that's what they're doing sunpower tape on so what the.
It's easy for you all of the part of the bulk of thing caused it with what happens at the high why the Ah Onez on trade was clearly the true teams.
So I'm curious as to the the whole knowledge of what the high why you Ching Tao yet and so on much of the two quantum shop.
The incidence either the girl height, why the sort of all of which all day. So the whole the I wouldn't he's the one you M&A the deals the woman's the go it sounds the light. So go at those sort of zones I thought the teach outs it off.
Hi, why the at the end of the those could sit on the call do the subs the well downtown Philadelphia The book needs from the Salisbury go on Middle class is the.
ER and then it's been a chance they from myself. So I had the two questions. The first one is about the last two and think of.
And we acquired last two in August So I'm, just curious if our overseas expansion and like we.
We mentioned flow.
Now on prepared remark flow thing kind of the got like a lot of these assets in the overseas market. So I was wondering if we have similar strategy for the last two and then the second question. So I'll always sees and the age strategy I mean, since our IPO of the two and the eight use in China.
So I'm, just curious about and the age of stretching the overseas market and then it's.
It's the global pandemic kind of the slowing down our from seeing overseas markets in general Thank you.
Last year, the you know when she outdoor light weighting the Lynch.
Hope and I Punctual book on CLO <unk>.
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On the GE to our base your true say, well net jets, which what are you gonna changing up on the Honeywell teaching time into the shutdown people on the team Quantia actually send the take a simple.
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Some day likes why sure. It does show kind of on the E. cheese I already on our Union, that's too young to each of these yeah that'd be value either total.
Oh, no tissue the Eagle and she now do you have the when he went on that.
That's really what kind of consultant that was your price.
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Lets the what can you see all highlight of the Julio even which element I kind of home just want to kind of male beach all a lead Gen. On you can't wait until the chip the less lessen channel who know the that's the lets do what kind of kind of how the man I see all flow eat you good trends on the shoes genset coordinate non go shoot.
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Ah Okay I'll just transmission from the first the question regarding.
The full pay after the top out in the you know in general the status quo of love to which we are acquiring this summer.
And also any on overseas expansion plans for the last two in general So on Mr. Guy answer that a post Doc post acquisition on the management on how making great efforts to make of the user growth of the last two and the earlier mentioned the during the prepared remarks.
We have the improve or increase the value of loved to have actually increased by 1.2 times over those several miles post IPO post acquisition.
But based on the product enhancement and also the some limited marketing activities, we achieve the these kind of results.
The us we haven't year of marketing activities conduct. The later, we from the met for the whole the strong confidence about the left the is going to be even stronger of.
Performance in general specifically that during the December we're going to introduce the last from me features embedded in these last two.
Regarding the overseas strategies.
For the last two.
According to Mr. Guy. Thanks, Mike, Yes, we are going to go overseas to.
To services the on this of global left the market the effect of steel our first of priority is trying to win the market number one share player in China. So our tactic is trying to do China first half number one and then moved to overseas we see that.
Even knocking on the long term future. So that is our general plan and the my own at up to you the table regarding our general geography overseas, especially on plan a under such call. The to the situation is not you know again on me.
Good day trying to be a international LGBT community lifetime demand the service provider. So we will never stop expanding internationally globally oversee wise. So that is our you know like our strategy of like of the law of our general plan the upset on this.
The current situation not just the call of it but also the geopolitical issues raised recently this year that you can see book from our earlier prepared remarks about the we actually on trying to compensate alternative options through Latin America market. It's also a very attractive market reach.
We took the recently introduced on new products into those markets. So we left let's let's wait a while on two quarters to see how that performed with the measurement of to how the strong confidence in that regard. That's the question. That's the answer to a question number one Paypal comes.
Comes on when looking crusher the argument if I felt the where a woman the IPO to the homes are longer so go through that channel. What's in there. That's all else the woman the odd batches of that high by the J GAAP Socalgas, the consultants or somebody else you should that downtown the heating.
The good point out of your work that goes on.
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Single Dunking is and how the the Jones the teach you touch on the button do well the high shoot shows you the teaching people the to share. The you could play the towards the <unk> go. The Ah you go on shop on the true limits. The line, though I mean look what do you had the effect of course on T. shirt issue the youre hitting on Tuesday. The so what are the people July a woman the pool and I see it I mean.
True essentially all of the take on its on top each on top the Hilscher gokul actually like out of those you're talking you know on the shirt you do the being cheering them on a woman's keep with the share timing the Saturn I should kind of course from what you can do the Unum Cool book total that summed up now the out of your classics, which I'm sure that you will on me well me of he kind of Dol will then take you essentially true.
Just the laminate you called the but do you want up on but the amount of fleet, what I'm getting who she yes. The when suddenly the loan book why did you what can I cannot allow me to the on Ben what's on sort of making sure the times the.
No not the sounds you on that usually to put you only the momentum here like when we acquired the the use on sites. Although you see of two you'll always I touched on the tick up on or the totality of the yen could that it will jump on that she was on the woman who the lifestyle woman the attempting to true who are willing to deal with its clearly see on mental short to put you on.
The main binge on TJ its until she on the Cline well then those share for law. She got hopefully I'll touch on we changed showed you. The reading the end Oh can be cheap huge interest the change on the way down the true Okay. No money to the eye. When you take the insurance you go on can change of some don't sheet of starting off with the Johnny you got somebody that's good.
Well she said the.
[noise] of Paypal and the everyone else on the line that the again I would like to highlight before I go into the detail answers translation to Mr. goes just now statements about the.
Our mission of this company. This platform is trying to position ourselves as a international global success.
Service provider to the the.
The global LGBTQ community in general So the second question from paper regarding the M&A strategy oversee wife actually does have some interconnection with our global expansion flying General So Mr. Go outside of this question from two of the Bye now.
Oh on beefed up the.
I have to answer about if there is a.
Existing strong lucky dominant player I'm not a we would like to explore any acquisition opportunities we've soft.
In order to save after its kind of save time to acquire acquiring the equity acquired the cost per month in general the in that market.
If that's the new territories market it does not have a.
Ill of preventable good looking a target of our strategy for lots of market is trying to do by ourselves either to the about the new featured product or just the copycat all international version of the loot in general So that is the the.
The statement of our global expansion M&A is only one of the options in.
In general.
My own add up for this of fact, Paypal the that it's not just the.
Restriction from raised of from the call of it but also from many of the facts like.
Geopolitical issue you know leave the views on the China U.S. pension even in the attention of February 5th of that's also a photo of a that's also quite challenging.
For each of the company going abroad.
On the step ups and also the cost.
I mean cost of not really just the only relates to the economic cost, but also the of efforts cost that are either maybe the data protection call for like of the GDP on European Central Echoes of Mr. Guy of just now statements left on our story on tactics to go abroad.
That's because the ratio for how we go abroad, either by acquisition or organic growth.
The second of stock stated of I missed the go is that we do have a CLIA globalization strategy in general on the.
The rule on any of that so we are going to steal on.
So keeps on it.
Just on the house, our strong presence in the pack.
Territories on.
To keep dominating the from markets by on developing new features by doing more sales in the marketing online offline and to help people to help users get a more engaged a excess work central number two you've got to we do find and now the accounting of alternative market Latin America.
And we just the entered into last mile kind of proactively.
Proactively thing this quarter and the.
And we do see by the school timing the fourth quarter this year and we do see two.
To date the data on the KBR, resulting from Latin America quite promising and the we will take the series of studies in this market. The keep developing new features and doing more operations of proactively in general to get lots of market or.
To a more from using stage the number three that I'm optimistic on mentioned that the of course, you know the North America and the Europe. The user of actually they were very very good users they are willing to pay the.
They are more well advocated and the equity users of so definitely the getting back to my earlier mentioned the law of this company. That's the we're going to be a success International company, we have to cite the challenging too to be moving to North America and the Europe sometime.
Some of the way and from the from now on and the even 2021 or two of the going into we management already had a series of dialogue internally on the preparation to try to get the conquered sorry part of that where its not conquer trying to guess the guest something meaningful.
First of the that are in the mentioned North America any of our markets.
Markets table, that's the answers to the second question.
Operator.
Thank you very much seeing no more questions in the queue, Let me turn the call back to CFO and Lee for closing remarks.
Thank you operator, and the thank you all for participating on today's call and the for your support.
I appreciate your interest in the look forward to reporting to you again next quarter on our progress. Thank you.
Ladies and gentlemen that does conclude the conference on today. Thank you for your participation you may now disconnect your lines.
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