Q3 2020 CooTek (Cayman) Inc Earnings Call
Good day, and welcome to Cutex third quarter, Twentytwenty and audited financial results Conference call.
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I would now like to turn the conference over to Jesse Chen from institutional capital Advisory. Please go ahead.
Thank you operator, Hello, everyone and thank you for joining us today.
From a pretty what gets you through a <unk> earlier today and is available on our IR website at <unk>.
And our PR newswire.
Good day <unk> Army, so called Drawl, Chairman and Chief Technology Officer, and Mr. Roberts Chief Financial Officer.
Mr. Dror will review business operations on a company highlights followed by Mr. for you for August GAAP financials and guidance.
They won't be a way to go to alter a real questions do you want a Q1 day session that follows.
Before we begin I'd love to kindly remind you that this conference call contains forward looking statements within the meaning of section 21. He asked a securities Exchange Act like 34 as amended.
These forward looking statements are made under a safe harbor provisions of the U.S., probably Securities Litigation Reform Act a 1995.
These forward looking statements can be identified by Terminologies such.
Well its a.
She's a great couture income.
[laughter] leave a female Oh, good day, and see where they might.
Well that May also make written or oral forward looking statements <unk> reports filed with or furnished a two U.S. a D.C. <unk> annual report from shareholders in press releases and other ways similar to your ROE and oral statements made by its officers directors or employees from third parties.
And if they miss that are a lot his dog [laughter], including statements about would have leased assets exact patients are forward looking statements that Meanwhile, sector right and that certainly is not cool that's always out to differ materially from those in a border can stay low.
[laughter] factors and risks include but are not limited to a point.
Correct mission assets dropped to <unk> future business development true financial condition, and we Balchem Corporation.
They accept it broke off the mobile in for a industry and the move out of a tightening industry because that's a growth of mobile.
Hi, Thanks.
Okay sounds sort of already be mindful and market a preference of the company's products and services.
But there's a into mobile application and a book hyping industry and a rosenthal my policies and regulations relating to the industry.
Further information regarding these and other risks uncertainties and factors is included in the company a party would be we've seen you out that's easy.
Well my simple <unk> on this call is correct about that day off this call and could have does not undertake any obligation to update such information, except as a report and a lot [noise].
It is now my pleasure to introduce Mr. call a draw.
Carl this though a hat thank you.
Everyone for joining me on the quarter, a funny a copy honeysuckle.
So we are excited to report.
A third quarter [laughter] deals a caught a good.
Hi, yes, it will be a growth.
Total net revenue for the fourth quarter gross 238, but then yes, but yes to 100 as a fixed many U.S. thought it.
Driven by the stupid should be a her husband's I'll follow a content ecosystem with with a weighted and the strength and our core product aimed at delivering the sustainable business growth.
Oh I wanted to touch a bit that a cheap it's critical milestones quite a no.
I'd like to take this opportunity to send our team for an incredible job.
We didnt daily active user you use a brief a exceeding have met in a monthly active user any you a inquiry flow to a 30 minute during the quarter from kidney problems.
From two novel constituted the Qualcomm.
Well component a follow up cover a rich go 40, a with a strong emphasis on better be obscured the expansion at low.
Income you'll do a pension.
I imagine it comes from must comes as a result.
It should be within a multi book a function a bit interactive commodity.
We consolidated the market position a home to a novel, which ranked number three income from I mean, you in a free on my this is a market in China with a continuous growth and value the night.
I believe that's all night is a true yeah.
Enormous a.
Maki globally.
We have been focusing on getting a long somebody.
This quarter, how a great output.
Improving both use a big media and content ecosystem, a cheap significantly though.
The average daily reading time, a baby I keep reading your girlfriend, a novel income you creep from 110 minutes.
In Q2, approximately 130 minutes in September.
The 30 day and a 60 day using retention rate also increased by about 4% end up a 3% range.
That could be compelled to June 20 times.
But using benjamins racial a from two a novel inquiry from how do you make a sense in June two study focused and he's a member.
Oh, a strong growth is a testament to the U.S a big men often do a community and it's huge potential.
[noise]. We're also dedicated to further a copy please I'm a content ecosystem by increasing the number of a fine license, which grew to over a over 2000, Inc. October.
Most of them I've ever active a holiday such a thoughtful.
The book is produced a pilot side right.
Contributed more than 50% of total comes from the consumption both income from them on a revenue.
My philosophy is true Butte optimize the content, a but that's a modem that establish.
But they have a feedback a metric be true.
Irene I want a license and how are you.
So that's a composition.
That's a constant ecosystem gives a basket once you do that Apple bobbing company.
With the a bundle and <unk> and that they that you have a system to enable our rights as the most suitable content for I will use it.
That's a conveniently a statue transient demand based on the feedback.
The class phone with beauty is not just a place for a license.
To accomplish book, but also a platform to really enable them to improve their pod based on a per.
<unk> did a metric.
Eva and average writes a good possibilities like that.
Welcome from well some day it up a back you hadnt agenda with more revenue accordingly.
We are also expanding cooperation with other hockey IP and the literature, we saw from class one to increase our book inventory.
In addition, we are dedicated to further increase the scale and the basketball comps as a result by further increasing the investments you know a comes from ecosystem.
Oh, that's a result that a big hit the susceptibility and a long term value a how long did such a bit.
I'm very confident that from two novel can remain as a went up a couple play a eight the free.
Hi, This is a box it was a strong potential.
Operating a market position.
[noise] at the same time, we have been calculate accumulating a growth momentum fla overseas and I did such a product, which rescued went up a top hat and a book at a cap rate.
U.S. market.
That's funny they use a retention rate and average use a reading time, both caught a new high in a sub wasn't respectively.
Hi use a it made a belief that it is a very strong opportunity for a blizzard and Colby I love a competitive edge in M.D. and I did a true sector globally.
Coming back to our overall, a good bit a upping I'm missing a thing how everyone to enjoy rather than the continent. Cindy will have spoken a comfort in the assets strategy in three categories on a day, so true scenario based to come from the App and the mobile game.
Income from you as a base total do you use and I mean, you file a come from rich per quoted product was tied to a 7.7 million and 94.8 million in September it yeah.
Approximately 16% and a 40% year over year sequentially, a yeah, what did I miss that could be made.
Mainly due to the increase in <unk> and they use off I'll highlight it's a true and overseas Petroken product.
We believe that's a use a day that gives a key performance indicates a a hobby such a business, but not the most a reliable performance indicates a a fly wants a narrow body fat and a mobile game business.
Considering the high number of CRADA with a different product cycle and operating level in different countries and regions.
That's not true reports that quickly they use a data for the thing that we're up a bath and a mobile Patrick in bidding Oh useful.
Okay.
Second we realized a mobile casual game it wasn't a healthy key business segments, which we can prove that's true I don't see Veggie, Inc. Growing same antennas me with our online if it's a business.
It comes out from you that day and IP layer.
We have campaigns continue to you in fact, a meaningfully seems a fourth quarter of last year.
Although our gaming product a steel reflected profitability, we observed a typical volatility in relation to the revenue and a oh I performance offset a mobile casual game products sold into the end up there a lifetime cycle.
Which resulted from the fluctuation how true the second set on a quarter tiny tiny.
A level until they need more computing casual games to form the foundation of our game business.
And we will gradually with you in the proportion of Heidi casual game.
It's a shot a product cycle true.
Reduce the impact of revenue and net profit for the group.
We were a further strength the developments on met coal game. So that's a business can serve as a stable source of revenue and profit for the group.
I'm being that the execution capability of our team and contribute to the strategy.
Great and a low remediation.
Oh, it's a narrow based Astra remained one not a stable revenue than the net profit contributes a thing our IPO.
We have been successfully streamline the product made from keep that a key focus I'm used to a lot of good product with a selected a bicycle area such as sports and fitness.
We have a pleasant up well for the upgrade the function of the product, while ensuring a pocket you Oh I love them.
Exactly that's a that's a scenario based app continues to be served as a sustainable growth driver for the revenue, having a bad profit off the group with a reasonable growth.
If I have to use one was a good right a lot yeah, it's a day performance.
It did it did it.
Our business development, a thing I'd be making shows that we have not a free to make a big trend.
Total long from such that the off a lot of our business.
We continue to grow and applying a <unk> they they'd have to acknowledge it provides a constant product a two hour to use it.
Well <unk> I thought it foundation around the global online, there's such a equally weighted.
The cash went up a leading online reading app in China at the same time out global content rich App I feel that the drop as well.
What's happening very excited to develop a a lot that's a lot a plan for use a flow.
Constant has been and the technology upgrade.
Yeah, well be a companion and to prove a growth in the business and the financial performance well off a group in the next it wasn't a true yes.
In addition to the quantity and the sustainability of that revenue growth will continue to improve.
I've never feel more optimistic about the future whatever that we'd do a type.
We would like to also take this opportunity is a second all I'll, let you back those quick they with us.
[music].
With that I will hand, the clock true fab pulled up a who will walk you through our financial results for the quite a big [noise].
[noise], that's true how long of a while that's again for joining me on Tonight.
Despite the growth price rise from global mobile Internet advertising markets.
The group's net revenue during the third quarter of a 2020, what's a few up one 238% year over year to a 160 million to EPS daughters.
The net revenue was I'm, a new generated from Threeq, how did read off our comp average assets on our literature scenario based content revenue piece and fighting for literature, which was launched in 29 King they already cost a cute its 34% of our total revenue in the quarter from 2020 I imagine.
They use reached 29.5 million, Inc. September 2020, and average do you use already exceeded 10 meter a in September 20, Twond that is a very significant increase from a year ago.
It's a stable irach from going although the full product stay pretty ranked one of the top three players in conducting a comes up I'm a use for a free on it for a trip kratos. According to a plus mobile in the Chinese market, we have been seeing a rapid growth of the user base a.
After a product that we are expecting a continued good growth in the coming years.
Total games, that's not a real based content GAAP accounting for about 41% and 24% of total revenue in a third quarter, a 2020, respectively. They continue to generate a considerable revenue and a stable profit travel business.
Now turning to expenses.
GAAP costs and expenses were about 120, Eightth me, a U.S. follows a 3% sequentially and a 158% year over year non-GAAP costs and expenses were 126, you asked me than a three.
3% sequentially and up 170% year over year.
As a percentage of revenue non-GAAP cost and expenses accounted accounted for a 119% up.
From a 97% kind of stuck in a quarter 2020.
So from a marketing expenses increased by 220 took a sense from the same period last year and a 2% sequentially a.
Largest component of these expenses.
The user acquisition costs as we continue to execute on our call kind of rich portfolio strategy, we need from keeping basking ridge spend per user basis, a piece portfolio products and cultivate our content ecosystem.
R&D expenses increased by 18%.
You have a year and by 1% sequentially, primarily due to an increase in cost associated with technology, R&D staff and share based compensation expenses.
We ended the quarter with a 720 full time employees, a 40% year over year.
Are these employees represent about 60% of our total employees compared with a 63% last year.
Gee I need expenses decreased by 10% sequentially any increased by 9% compared with a same period. That's true. The sequential decrease was mainly due to the reversal of accrued provision for bad that's on a collection of accounts receivables, but year over year increase was mainly due to an increase in cost.
Associated with GE, I need a stop and a share based compensation expenses.
Gee I need a francis as a percentage growth.
Total revenue total net revenue work force.
A from Threeq, a fend off sports.
We are keeping expenses are different from.
Gross margin was 93% 93.6% from.
87.5 per cent yoga thinks you every last year and a slight decrease from 95.5 per cent last quarter. The increase is mainly due to write a its amish economies upscale actually that's a you could I saw a infrastructure and partially offset by the increase in content costs.
GAAP net loss was 22.
And U.S., excluding the effects of stock compensation adjusted net loss was approximately 20.5 it into a.
As of September 32020, we had cash cash equivalents and a restricted cash of about.
61 day, you asked me a $61 million compared with 50 meter and do a startup at the end of a you a plenty 19 non cash flow out non cash outflow from operating activities. During the quarter of 20 funny was 14.4 million U.S., mainly due to a loss from operations.
[noise], a maybe 18 20 funny, we launched a new share repurchase program, where we are authorized to repurchase up to 20 million a U.S. GAAP always P.S. youre going to a 12 month period stocking from maybe 18 2020.
As of September 2020, we had used in aggregate a 3.3 million a U.S. two reported trades zero point finally, Dan made yes.
Turning now to our revenue outlook, we expect total revenue in the fourth quarter, a plenty plenty to be around a 106 made a U.S. representing an increase of around 54% year over year.
For the full year, a plenty plenty, we expect total revenue to be around 445 day U.S., representing an increase of around 150 per fan yield, but you did.
These estimates reflect our current and preliminary view, which is subject to change.
Operator, we're now ready to take questions.
We will now begin the question and answer session to ask a question you May Press Star then one.
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At this time, we will pause momentarily to assemble our roster.
The first a question.
Comes from Hunter Diamond or Diamondx equity research. Please go ahead.
Hi, congratulations on a very strong quarter in this tough environment, so with the new locked down returning in at least a U.S. and the fourth quarter a.
How do you anticipate the impact to the overall online AD budget affecting a the platform in China in the global market and can you disclose roughly the amount of revenues brought by advertisers in China and then the overseas market.
Okay I would take a first question on a.
We haven't seen a brought a fresh they're obviously from the online advertising market, both being a Chinese and overseas.
A region. According to a price of all our democracy price off the Chinese internet advertising market.
2020, a protracted to be a 528 bit and R&D with a yen RMBS growth up 12.4%, which it was just low actually a density a year on year growth a 14.8% in 2019 also a global Internet advertising will remain flat with a small decline a.
They were a 0.1% of your 20 pardee assets. The overall global advertising market is expected to decline by at least 7.4% per on the a lot of your research company.
But at the same time, we also witnessed some positive outcome, particularly in a Chinese markets.
The on the income that Edward hardly Maka side. It has a restore growth seems true to a 2020, despite a negative trend in the first quarter point. It's funny you look at a quarter in a virus penned down there.
China is one of the few Congress with a control of the from down there and the overall economy hatcheries resumed growth we expect that the I have a primary markets. We also day growth recurring growth momentum of your 2021, which will be beneficial will support and I will.
It is from.
In relation to our own cash flow.
We have a yeah.
Similar observations in relation to the I'd have a carbon humans free and Usix. Yeah, we believe that our often driven a model with high use a standard harm will still be very competitive for tracking relative and advertisers.
For the overseas market, we remain more cautious given our carbon advertising revenue mainly comes from the Chinese markets with a cell is more than 90%. We will also be more resilient to the growth driver I think a global synchronized out a bit advertising market.
Great. Thank you very much for the additional a details. So my second question is the company obviously is targeting the global online literature, a market and plan to launch apps overseas. A can you just give us some color and details on the prospect of expanding overseas.
How you expect that contributing to a daily active users and top line growth.
Well on a okay. So yes, we have been a incubating a <unk> I look at your App for global market, especially for English speaking countries as the first a staff.
Things are day this year during the past couple of quarters, we have validated that true our growth model and our philosophy up a cultivating income from the ecosystem, which have been a.
Validated from two novel in China domestic market, a walk a pretty well in global markets well. So a what mall we found that the entire a book publishing and that's a tree as it gets more traditional compelled to be a beat the Chinese market. So we believe that by introducing a high end that they have a driven.
Technology and.
A lot the beach you calculate the content ecosystem, we have the opportunity to reshape the at the end that's free a globally.
And we have attracted a lot of U.S. local a writer and a sign a a lot of a English made a book.
And a committed he has a full.
At the same time, we have been accumulating the growth momentum for our overall a follow overseas.
Hi, This is a product, which you rented a it's when not the top assets in in the book category that ranking U.S. Maki a on both App store and Google play.
And the city they use a retention rate and average use a reading time, both recording a new high in the third quarter respectively.
The average ARPU of our own I Didnt a drop in U.S. market is it's higher than a them from doing a Chinese market.
Hi, a use a fix it made a belief that no. It is a very strong opportunity for the for the improving I wore a competitive assets in the end I did such a sector globally.
And now we are a tweaking, it's it's I'll I am a considering the long term value and that the potential to bringing a multiple monetization model, we think that global a market gets a bit more investments in in both shutdown and a long time.
Thank you.
Great. Thank you for a taking the questions any additional details and a grant congratulations on a strong quarter.
Okay. Thank you.
And the next question comes from Chen Jingwei on a hi, Tom. Please go ahead.
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I'm able to a fish in a whole a sure it wasn't anything that's coming in you actually from a home because what's your kitchen, which is a finished steel quite a bit of listening.
Thank God knows someone to channel based on what you're doing a dealer.
Sure well since using a assuming a skin tissue should obviously with sales.
So it's not a low.
Just a couple months Im excited.
Okay.
There are no share where you're doing is they're not share from its a kind.
Nevertheless, you true teaching and see if there's any share Asia sales I understood that share and selling it to listen to a geography that's true.
Switching to a oh.
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Evolutionarily share [laughter]. He said she was also that's true. It is yes, that's really a certainly a table.
Sure sure and there's a little bit.
Sure.
You got the assets how are you going to you. All my question is just a nice yeah a fine.
I know somebody say a draw I can go what's a good then I'm fine with the Oh, well that you guys are going to see when I think a good thing wave a hot and got a rule.
Got you.
[noise].
Okay.
So this is just a speaking I'll briefly a trying to say that all questions from high flow.
So the first question is regarding the growth strategy or any competitive assets.
Between a between <unk> and hotel, what I'd be a long ago. So I would tell that Oh, sorry, what I'd be a longer just a phone or whatever you like to a elaborate and the second question is regarding the a regulation in Chinese market Oh geez.
Well, what do you say well regarding youre, a it's ready and there is a there has been a song technology. That's not a lot to go usually is a threat is in a within these uh huh within New York Corporate Oh do like to a walk around the regulations.
And so whatever improved EBIT growth and then a theres a question is regarding the future. The optblue can further from a future positioning off your online game product.
Casual games on a product correction.
Okay. So I'm going to take off this range questions. The first question is about the a core competency I'll follow a some do a novel and how we compete with our competitors. So you know I'm not a a in the right position to comment on China, a lot of competitive, but we believe that we have different growth from philosophy and.
Point of view and it's not good so at this stage, we are maintaining from P., a a user retention rate among all the competitors that its a.
Thank you the thickness off a phone to novel, it's competitive and him and I think that was strong.
Helpful for a long time, a as it is a typical a companion app, we a actually spending a lot of our assets to cultivate a differentiated right to.
A ecosystem.
A philosophy is to build a customized content to put that's a model. That's a good stotish deep data feedback and a magic is pitching our rights and the reader so that the come from the ecosystem has adapted to use this average a bobbing company. A for example, when we established our a ecosystem.
A within a more about how to enable a sign leases with a a and able to date a platform and metrics and a platform that we have beauty has not a not just a place for writers to publish books, but also a platform to a really enabled them to improve they'll assets based on a.
Proper they'd a metrics. So that you have a hand average I write a could possibly write books that will perform well from a beta perspective and generate more revenue a called any instead of focusing on quantity off our books, we focus more on a quantity the books to produce bio a sign right.
Has contributed a more than 50% of the total content consumption.
Both income income stuff, a time span and revenue.
And finally, the true, yes, an enormous market globally, and such kind of a market has never been dominated by entering a single player simply because a few there's a diverse and average evolving company needs and be a existing huge write a base. So.
So we are a copy them to sustain the growth momentum in China market and at the same time explore the global opportunity.
And the second the class rants about the regulation. So it is a good question I think too to make our online that such a business sound tend to a sustainable it's very important to a compliance with a evolving revelation to ensure a deal we established and added a team and at the same time away.
Abuse technology solutions to reveal and a few to our content from the very beginning and.
Thanks to our customized accounts in the part that's a model it is much easier for a true even sure the complying off of a content because a we control the entire ecosystem.
[noise] and and a set of questions about that game, a 10 business. So we launched our first a mobile catch a game in in the fourth quarter in the fourth quarter off a lot here. So as I mentioned that the a mobile game business had a very strong synergy with all I did such a business income up you debate and IP layer.
So thats true the rapid growth I'll follow on I did such a business a mobile game business has benefited and a achieved a significant growth in this year.
But anyway, our Oh I'm, a mobile game business has only when you a history. So it is feeling its early stage.
Though our game product being reflected profitability, we observed a typical volatility in relation to the revenue and the outlet performance offset a mobile casual game product clothing till the end up down a lifetime cycle, which will result in the population compared to the second quarter of a penny a tiny.
And plus the wheel a expand our success I'm casual game by developing and a releasing more competing cash again Chu from foundation not total game business. So she will reduce the a impact of revenue and net profit for the for the group.
And secondly, we are incubating some new concepts, a casual game, which has a relatively longer life time, a and improved use a thickness.
At the same time will fund the strength of the developments up mid core game. So that's a business can serve as a stable a thought of revenue and net profit for the group.
Thank you.
And was there a follow up Mr. A.
Xinyuan.
Okay. We'll go to the next question that is from Nelson trying from Citi. Please go.
[noise] a tight management. Thank you for taking my question. A this is nothing true from Citi asking on behalf of at least you're a a two question a first regarding a guidance could you elaborate more on just a flattish revenue guidance implied for fourth quarter is that a mainly due to the seasonality.
Hi.
Jamie on mobile and what do we think about a first quarter 2021 trend a.
Overall 2021 outlook a.
And my second question is on a day, a selling a marketing sending a because it seems like this quarter. The spending is a bit higher than expected a Kevin explained a reason behind a is it still do they use a retention oh or a dependable user acquisition, it's not that it's a good how should we think about a customer.
A marketing dollars in next quarter and going forward. Thank you.
Okay. Thank you and open a I would pick these to a question. So the first one regarding the a revenue a guidance. So there was a revenue guidance for Q4. This year is reflecting the mainly the restructuring of our game product portfolio, a targeting that building a more balanced pipeline.
To avoid a further volatility a inc.
In relation to the revenue pretty overall revenue give anyone off half imminently a factor supporting our a total revenue would be the you've got a Q4 revenue will be flat compared to two or three a revenue bonds.
At the same time out a lot it for a chip business will continue to grow a in terms of user base and ARPU. So before I also have a larger revenue contribution in day in Q4 compared from two or three as well for the overall 20 Twond you want fraud, we expect a continuously a solid and a high growth rates for our.
All right, it's a business.
It's a scenario based content assets business, where growth stably and a casual game business book stopped for a regain the growth momentum. So for the total revenue we will still fall costs.
A more than a a.
Rob 30 from 40% year over a year from 20 point you won a with a key growth driver of our Oh nutrition business.
The second question regarding the sales and marketing span a is.
True is that the sales and a marketing expenses as a percentage of revenue in Q3, I was higher a band a true true given our revenue a.
Slightly decreased compared to Q true, but actually the exact a number of the sales and marketing expense was pretty much the same as a.
A use acquisition costs remained at a key component of the sales and marketing expense in particular the C. P. Eight in Q3, a has been increasing a due to the competition now a all I had a patient that a gaming products for the mobile internet traffic in a Chinese markets, which specs, we do expect similar situation in Q4.
But going forward, we expect that we spend a that sales and marketing expenses will decrease stay body as a percentage of revenue in the coming quarters with our continued a continued and increased investment need a content resource on our platform, which will help increase the user retention rate for existing users.
And also the use acquisition efficiency, while a new users.
That's true.
Thank you.
The next question comes from Air into a Tigers financial partners. Please go ahead.
Hi, David.
Aaron. Thank you mentioned came for taking my question. So I have a question also regarding the phones. They know low I mean, and I mean, China is just kind of go back to normal a and we still see that yeah, you and they use are reading time, a phone de novo continue to grow very well, it's gradually a and posted a call that in China.
Could you please elaborate what out a main reasons to drive this growth and a is there any guidance on that day you are planning a retention rate for the next year and a phone to a no book.
Thank you.
Yeah, I think you are right I will take a question that's well yeah, I mean in relation to the a a key reason enough the a continuous growth in our average daily reading a time per active use a third quarter a it.
It is mainly due to our us a continuous enhancement and upgrade of our call kind of resource a.
Within our platform a because we continue a true or even.
In fact, even in this area by leveraging our core competency a in the a sign a.
Right. This is a powerful and also by increasing their continuous inputs off our partnered third party I see a contra viewed us so at a at the same time I need a coming quarters. We have a few dedicated to from the upgrade our a content ecosystem by further investing in this.
Area. So we believe that.
Still a significant potential in further increasing the average a reading high volume of spending a crime on all cash flow Barber from global a use us being a particular fall existing users and at the same time. We are have you have to do you have seen we are continuing to invest use a view with a definition.
A related to the T. data items. So you have seen that after the pen down it in Q1 2020 in China between March and October 20, Twond him that you use a phone do know what has continued to increase from standard send them into a 10 million a and.
And in particular, if a user retention rate.
And also the long term use a retention rates.
[music].
[noise] Ashley rapidly the seven days, a user retention rate increased by about a.
12 cents a the.
30 day Ips user retention rate increased by about 10% and a 30 to 60 day. She was a retention rate increased by about a third of that so it is all in a very good a direction.
In relation true, but increasing our USIS business on the off a site a.
It was slightly higher your independent it Karen.
A inc. The 18, you're trying to ensure a one a this year given a there is a longer use a spanning a hot jargon a lump here and also not due to the our continuous efforts in improving the user experience a by limiting a southern kind a at a strategy is.
That we have a slightly lower recorded a slightly lower awful a game.
Moving to two in Q3, this year compared to a walk a a this year, but we still believe that the ARPU will stop to a a regained a growth momentum in the coming quarters with that's a for the diversification of a revenue per screen on the phone to a platform and also the improvement of our appetite overall advertising strategy.
From a plenty plenty won a our target for the a few years would be a few be a a high growth so up to a 60% or 70% growth compared to the a view you as a current level and also we aim to deliver obviously higher ARPU.
Returning true a returning to or even higher level compared to the a a Q1, a pandemic period and also a continuous improvement in a user retention rates were 30 days, a retention rate and fit todays retention rate aiming at did ever in a continuously a compare.
Relative levels seen a coming quarters.
Thank you thank.
Thank you.
This concludes our question and answer session I would like to turn the conference back over to Jesse Jim for any closing remarks.
Okay. Thank you operator in closing on behalf of the entire a management team of course, we'd like to thank you again for joining this conference call Tonight. If you have any further inquiries into future. Please feel free to call that a at IR app.
Dot com or I could have a I'd be age has a call. Thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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