Q3 2021 Just Dial Ltd Earnings Call Hosted by Nomura Holdings Inc
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Dean.
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[noise].
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[noise].
[noise], ladies and gentlemen.
So Dan, but just Scott.
FY 'twenty one.
Called hosted by Nomura.
As a reminder, all the time.
It's been lines will be in a listen only mode and there will be an opportunity for you to ask questions. After the presentation.
Sure.
During the call please signal.
Scott.
Cool.
Please note that this call is being recorded.
And the contract.
Alright.
Thank you and what do you yourself.
Thank you and then on behalf of Nomura I would now like to welcome you all could you dive into FY 'twenty on our next call.
He has advised the founder CEO and MD, Mr VSS money.
CFO of the company Mr. I appreciate that too.
Without further delay I wouldnt have the other guys that might have moved over to you.
Okay.
Thank you Ron.
Okay.
That could be 115, 95 crores for the quarter.
When you get to listen to you on yet.
Martin Let me one.
Goodbye, everybody got behind Us.
But basketball soccer World Cup.
Nor can it shows that we haven't been before.
I wouldn't be granted with the COVID-19 impact.
The only thing.
John has been an M D.
Great.
And Keith Youre right.
I'm going to jump on that.
How do you think you hit on your.
Sequentially Q2 collections Bureau about when do you go.
Uh huh.
And what about monetization currently stands at approximately 80% adult equaled 11.
Yeah.
With me and we can take them.
Getting back over 19 has had on the economy.
Maybe.
Operating.
Non kashi topic.
Or do you want to call it for the quarter declining how're you doing.
On yet, but I'm not really due to lower top line.
Adjusted EBITDA margin that can be good thing for the board.
Equation, there has been some decline in margin.
Yes.
Due to pipeline.
But not employee expenses.
<unk> done what time that maybe little higher head count.
We have now resumed hiring somebody.
And sequentially, our head count was up.
Okay.
Other income.
For the fourth clause.
Net profit for the quarter stood at $49 nine crore declining 19 in the hospital.
Coming to operational highlights we had turned out advertising and told me he built <unk>.
And I know you've talked in light of COVID-19 impact.
Majority of topic.
Organically without any advertising.
Organic traffic has been over the past few months.
I think also knowledge I mean gradually well what we heard about.
One could you pinpoint systems.
For the quarter, which was down $1 15.
One part advertising comes back the people that we should be higher.
He felt like it was last year.
Yeah.
A key point to me I'm looking at.
Eight campaigns at the end of the quarter stood at about 454000 campaign.
Coming to fashion really that's where that approximately 1500 indoor das understand button.
On the other side.
New <unk> portal JD mall is being bullish that do it.
Sure.
Advertising campaigns around the team.
It is great to see your thoughts of almost 13 14 months.
Hum.
Tom Panther.
The platform.
What shall we do can get back on to becoming the go to destination for any does not meet wholesaler distributors manufacturer.
Oh, yes.
Well, we don't have any theaters goodbye topic that you talked about women and monetization is catching up to <unk>.
In Q1, we should start going with it when.
And you called it levels out.
There's been a lot of it because there's enough cost structure, which I've said before the business in the long run.
With 19 has definitely accelerated the sudden adoption.
Adoption, among it and that should bode well for that business.
With this update and opened up North Florida question.
Yep.
Thank you very much.
We will now begin the question and answer session.
Anyone who wishes to ask a question maybe press the star and one on the touch tone telephone.
If you wish to remove yourself from the question that you May press star and two.
Participants are requested to use handsets when asking a question.
Ladies and gentlemen, we will wait for a moment, while the question queue assemblies.
Right.
To ask questions. Please press Star then one.
The first question is from the line of <unk> Parikh from Nomura. Please go ahead.
Hi, Thank you.
Just a couple of questions from my side.
In that 100 Mark.
Our lives are expected to be like but.
Could you just provide a little bit more color on.
Oh the pricing last.
Gas marketing category.
And I would say if you could just provide what services can be maintained.
Brought up and what that is.
One.
I wanted to be yet.
On this one.
Thank you.
And just lastly on that business.
Any update on the do you think that maybe had been good luck.
Yes.
Okay. So firstly on JD mall.
As you mentioned.
Uh huh.
So with this part, but you got a big back so Jamie Montgomery.
Back home.
Yeah, all the payload that you do it goes out of any kind of BBB supplier mix you had thought that people would be able to.
Picking up on that get comprehensive information.
That business is that sometimes they wouldn't even be able to do.
So that's another thing, but some I don't know.
No problem to maximize who even internationally.
You had also signed up for that.
Okay.
Working capital funding Mobbing traveling soon they're going to go ahead, Mike sorry.
I would never do that.
This particular platform Wouldnt anybody any.
It will be finished.
They come online.
He told me that they deploy it.
That'd be shrinking.
But I think a compelling so that'll be my department packages on offer to Florida.
In particular packages.
<unk> been really depending on the type of Guy and then he will really depend upon the type of.
The Kodak and can be bad if you pick up a prescription on JD mall, but it also then I can tell you. When you get put example of comprehensive there's things that nobody else does.
J D J D power your daughter, Jamie Cook.
Dan.
One whether you quantify.
Apart from that.
So again I shorten them at all and glad is for the amount that you're paying.
And I'll have to give some thought to do it for me.
Oh.
But what.
Okay.
Inquiries that you shouldn't think of Liberty.
So in aggregate.
Aggregates backing away from that I don't think I'm going to be high.
Go higher.
What do you think why do you do that we will be more.
And similarly, I think would really across categories across geographies.
Coming to your second question.
Gabe on the.
Thank you.
I saw that you guys have.
Well it depends on my toes, but.
We understand what that means.
So they have taken an ex parte order their sports has mentioned that they should not be any proprietary content off of third party on JD Mark gave you might not have seen.
Good luck on that.
Yeah.
Hum.
The one that we've been talking tend to spend on anyone's copyrights.
Noticed the Chinon launch of JD mall, and you'd be much happened.
And that you see and.
And one piece that comes out it will be out there for everyone to think about it.
Anything that if you did any of that.
With me today.
Globally.
Oh God knocking on long so there is no question.
Commercial exploitation or any violation having paid back.
Getting off court cases on to create.
And all you can eat.
We're taking appropriate action.
There is a lot mortgage.
Science has initiated against the pendulum there. Thank you.
In the cloth mopping thinking ballpark.
I think the.
That's it.
The new system model.
Yeah, Yeah that you don't intend to any one thing.
And at the same time, you shouldn't do whatever it is because the dot funding that interest.
Okay.
Understood.
So just to clarify.
Sounds like you can have a more differentiated by being a growth market.
We've got.
Good evening gentlemen.
Yeah.
We tend to keep it as simple as possible you know that'll be an entry level.
To get sites, which will be affordable for all kinds of businesses.
It'll be to be able to reach you notice the range, which as you know you can have lenders were willing to spend.
Much much more than one dozen categories got it looks like it's.
Can be very localized in the Canadian, especially big and things like that so what we do is we are.
That's in the market and you should have been good with one centered on what Brian I'm Ben you want.
But are there can you just make them stay extends beyond comprehensive solution for Linda So you wouldn't debate that you kept.
You're gonna website.
It's part of the package you can get everything into one group and that's what we're trying to kind of solve all these problems.
Jumping customers.
Okay makes sense.
And I'll come back indicated.
Yeah.
Thank you.
The next question is from the line up but I'm not sure from <unk>. Please go ahead.
Yeah. Thanks for the budget did my first question is regarding the tax change.
Thank you Sir.
Yeah, let me start good spending.
On advertising.
Can you can you can we expect for the next quarter the traffic to be in line with the previous quarter or do you just spending a steady daily to because of the cost cutting. They just ended my collection because light toward traffic to go back to pre COVID-19 levels.
So that's my first question.
So coming up on advertising the bancolombia bottles.
Iraq and locked for the majority of which was 10 10 a M.
So advertising.
That's correct.
Is that so much like that.
Covid high but at this point of time that different generically argued O.
Any thoughts about telling you the COVID-19 impact.
More like the other things.
For a long time coming back home and he wanted to align advertising campaigns that are underway.
It hasn't been dealt back on that launch.
The next couple of days.
Frankly, we are working on a new advertising do you think there's been I know what the next couple of months.
Campaign.
So J D monetize their lives.
On things, but you've got I know what am I missing.
Yeah, the Geely JV.
Ken It is almost going by so many.
It's going to be he was supposed to be.
And then on the July 10th.
Rather the let's say the the video with what Michael.
You will see Cds about it's one well.
J D monitoring during the month later granted pendulum's going on that soon as well.
One is with the <unk>.
<unk> been good so we've been doing their diligence site keywords.
He would answer Joe much more funding had been shrunk right.
Got it.
You would see this year, you would probably be at each deal jumpstarts.
It doesn't seem to come in.
When I was in Europe, probably double what we spent in the D. C. So we did it come from just the lumpy non spending 2000 alright.
Crazy Crazy.
And there'll be no spend in <unk>.
Makes sense.
No.
Okay. So just to summarize Q4, there will be a sort of transition to record that in Q1, if we're going to do we will see a much.
The level of spend decades ago, Jamie did you just cant relate but he did it.
Does that accordingly.
Okay. So my second question, maybe that you bought.
You answered that.
Basically I wanted to understand you know how the costs do we should look at it.
I think while you do see a traditional.
During the quarter.
So is that normalized and then upstate would've hiring or they can be scaled up have to get them. So.
You will see more inviting unsealed.
There was an old mid season by recruiting.
Uh huh.
So many people that as you would've preferred, especially since it correctly. So you do see a lot of hiring and some nice branded obesity.
So you will see both of these activities is getting up and disgruntled.
And our next earnings calls elaborate much a and b of the head count.
So it's all.
I'll give the long term studies or whatever.
I mean, theres Oakland screens of cyberpunk screening in Mumbai and everything.
Okay.
It's no point of it was building and strengthening our team.
Ooh condos coming two quarters when we just look at we wouldn't want you know mark although.
Although we had been accused of being a cockpit of company you would see that that it will be a change in the country.
More and invest them into our products and investing a lot more on marketing and in pet.
Okay.
Thank you.
Just one last question on more of a housekeeping question.
<unk> seen a very healthy other income.
The earn back was largely because I think the implicit coming down.
And that also benefited on the tax rate for the year how.
How should we see this getting into it like when do you do.
So basically once on the bank.
Combined spending on some pieces of it.
So yeah, that's pretty.
Dominion be switched from one either in terms of.
That's one thing.
Did.
Are you of course.
Of course were not cancelled, but definitely there is a view that they know them in the near term the interest rates would be just so.
So we make huge from citizens.
Sure.
Thank you.
Yeah.
Yeah.
Yeah.
And if.
Okay.
Got it.
Thank you.
Hum.
Okay.
Yes.
Previously.
Okay.
Yeah.
Uh huh.
Okay.
[laughter].
Yeah.
Got it.
Hum.
You bet.
The other income attracted about Guardian.
Yes.
Uh huh.
Thank you so much.
Thanks.
Thank you.
Thank you.
Question.
Often when we make an industrial ma'am. Please go ahead.
Yeah.
Yeah.
Hi, Thanks for the opportunity I have a couple of questions. One did you have.
One time bump that you're seeing now is that mostly.
In the same place.
What kind of specialized talent.
So I heard horror.
Pardon me our next parts operation.
Oh that can come in and get it back to you to get them all the time, but if.
If you can talk about them on a case that comes back because I.
I N R E.
That would be great.
The information on a non <unk>.
The tenant is being hired in.
All of these initiatives.
In fact, Florida, getting booster and done so far.
Allergy.
Good.
So that's on and its already I would say quite been extremely cheap.
Yes go ahead to the next question please.
The next question is on the a J.
Everything I E.
I'm proud of him and he's not concerned.
Yeah commentary itching to get it back eventually.
He then can be.
Uh huh.
What makes you think Halloween.
Got it.
Yes.
Hum.
Going back to work and such and slots.
Do you have any of those on the.
Not a big deal.
Part of the business.
Based on what you are seeing on the ground now.
So obviously you need a gloomy supposedly should equal with number.
Which is which is equal with one day, but you are correct, which is.
Have a good 30% about.
What we have achieved so far.
Oh.
Large supposed to be a part of revenues come from services sector and also.
So good to see.
So among the most affected were added the BBC and services sector.
The economy and all that you would see that that they've been on being able to do that business.
Just a couple of he should come back to pre Covid will.
I will say that we have.
Sure.
By the end of next.
<unk> really seen bonds, you should be growing as compared to what we did and it wouldn't be a franklin.
By Green tea.
We just didn't need to continue to see growing well.
All of these plants.
Depending on the ecosystem somewhat vague and introducing a bunch of money. So we can't totally out knocking on doors approach and then of course concert marketing vehicles.
So what do you teach them a little bit.
Got it.
Hopefully the economy looks good.
Everything's looking good even the budget.
Hum.
Are you optimistic.
We will call maybe non resort industry.
No.
Yeah.
Right.
But do you like to elaborate on.
I didn't get you there on the.
Great.
I I think I asked my question second question. Please.
Right.
So what we have done this in all of our new initiatives.
You can see has to run the business the product on there and some of the existing talent pools to glucose and beyond.
On a Saturday, especially chronic for example, BBB BB and BBB, we didn't need to be that is continuing to be extremely thin and we didn't need to be there is a team that works on certain aspects of the wood.
The key words.
<unk> told me that they don't own.
All those things really go to Toronto, where.
So said another one so that's good news.
So these are the sources.
Okay.
Okay.
Yeah.
Thank you.
The next question is from the line of Adam Armstrong from asphalt.
Go ahead.
Hey, guys. Thanks for taking the question.
First question would be around J D months. Please.
Would you be able to give any update in terms of adoption rates and perhaps the level of existing <unk> customers.
Bought it.
J D.
Our catalog stepped up and any kind of numbers you can give us a feel for PS.
So oh on JD mall.
So I'll use older classes like that they can find and be able to do at that time.
Hum.
Right.
Yeah.
Okay.
Okay.
Yeah.
Okay.
Hum.
Right.
Yes.
All right.
Yeah.
Uh huh.
So I'm just kind of timing.
Uh huh.
Okay.
Okay.
Hum.
No.
So they're quite far along.
Yep.
Let me maybe back.
Hello.
Yeah.
Okay.
Over the medium term.
Yes.
And it's probably a basis.
Yeah.
I mean, the big catch all of those things how many of those if I can.
But I'm sure that pain.
Unlucky in premises right you don't do it.
Oh yeah.
I'm talking about you know even though.
From boots have been primarily for those to come on board and trained.
Yeah.
Okay.
Okay.
So.
You can see more like the team sports.
To some extent.
I'm kind of an equal or better.
Sure.
No pretty sharp unexpected.
Unexpected maybe cause movements right.
Right.
It's six months to one guys.
Some significantly.
You can do with this.
Hum.
Did you win the competition.
Okay.
Okay.
Sure.
Good morning.
But we're going to see.
Okay.
So you're spot on.
Hum.
And please correct me.
Small events.
Listening to what we should be able to do some burden by the completion of good months plus three.
Three months I would say session would be to create them.
As many cat loads theater windows.
Right.
No kidding.
That's great. Thank you and then just final two questions for me one would be in terms of any cost savings. So you've had a chance to assess anything.
What's going on with the pandemic things like working from home, which is head count and kind of longer term cost savings or cost inflation on the other side and then final question for me to be any update on the J D experts project cause.
Can you give me some clarity I can wait for the next quarter.
We didn't want to we launched a couple of promising came down a bit.
Cogs to brokers and progress.
Regarding the and they make of course, we lump in law.
A lot of stock, which could be done working from booking from anywhere.
Zach this is Steve.
In quantity of their source actually.
Unused in homes and so.
So you'd be plus one.
So we are quite good.
So I guess that the months.
Amongst us.
Opening up happens.
Hum.
So it does not work.
Where you want them to where they are.
The United States, plus additional fixed and variable mortgage.
So this is actually a big discovery.
Thanks to this budget.
Gotcha.
As far as what else and other things are concerned.
It should be able to tell you that the adult generally than below that.
It was kind of stop the spend ugly pricing sports since I guess I'm thinking COVID-19 because.
Yes, so as far as all other expenses, excluding advertising or something they are almost down about 15%.
As soon as the Covid event.
So for example, you have it.
We have been able to optimize our capital.
General expenses and the darker than anything other than being too bothered until they figure it out.
And then the other thing to optimize on our.
And I did in their data center.
Nevertheless, my job.
Any of the operating expenses in our employee cost.
So it would be the other expenses.
They have been quite optimized suddenly becomes a recurring although activity.
Thank you and that's 15%.
Saving that you mentioned is that short term or do you see that sustaining over the coming quarters and years.
You don't see that could be sustaining for a good long term.
So those are.
What about it.
Optimization, you can do on grain belt, there's going to be permanent in nature.
That's great thanks very much.
Thank you.
Thank you.
Before we take the next question as a reminder, Novartis said you May press star and one to join the question queue.
The next question is from the line of Sidoti.
So Tony the.
The London brochure.
Please go ahead.
Yeah. Thank you for taking my question Alright continues.
So we don't need to see the economy as it is and how you'd be.
Okay Alright.
Economically has revised its pending agribank, how COVID-19 Nick alright.
Alrighty coffee good time.
Netflix coming to take that one.
Covid easier.
And you need because they weren't exactly.
Is there you know and you can answer.
Sure.
Good day.
Oh yeah.
Thank you.
Can we do for Dakota isn't quite the need a need.
Okay got you guys have it aggregating pain comes back.
Yeah on the traffic historically, if you would have seen two key things to be applied to subsequent quarters.
Because better.
It tends to be something else that's involved when they're getting activity and during that particular period with all the online traffic.
Promotional intensity.
Sometimes those things will be somewhat protected.
Having said that like any topic at this point of time is already so high.
That live and work.
Correlating not only more so.
At 10% also.
But really there's no market there is still advertising.
This particular traffic should be they don't compete with the type of Empire.
The number that you see that just wind up paying.
Yeah.
Okay.
Okay.
How has it would be nice current need in their core tier I V P no quarter on quarter improvement in bank.
Hi, good advertising spend includes dating back to cut the middle east to incrementally to that great return.
The churn rate.
Come down.
John made me.
He'd been locking up that they've gone up.
What type of product.
Yes, well, we're all in.
So the people that don't want to win and.
Hi.
Cynthia because due to COVID-19.
What have you.
Good evening.
But I right.
Right now as I mentioned in my opening remarks that we ought to probably looked at the people conducting calls together now gradually.
Okay.
Just coming back.
Just a few months have been when we can.
Those people Didnt get it.
So I'm very proud of interim which would be back in line with Ah.
What about August 10 persons.
Mm Hmm.
Okay.
Right.
<unk> gave you might get even non COVID-19.
Couple of days.
Yeah.
Yeah.
Talking about the launching of J P. Morgan monetizing and correctly mentioned, we've stabilization period envy off.
Alright.
Mark I just have more data on the.
And then kind of maybe you could reach Rodney characterized men alright. Thank you.
10 P. P 240 acre how long do we see this Martin.
Mitchell and I imagine the long term.
C J D Montes solving that problem. So that is and then there's a whole lot of the vendors.
Looking at a more attractive more than we are promoting their products and distributing their products.
Demand is solving that problem. It's also going to the next node.
Liquidity between cash flow numbers, putting that product in the marketplace, but also many of them.
In a state of art website, even it could widen out and then they could be digitally initiated but it's like a complete pool is still solution that they're giving you. Good. So you would see that.
Ah is a public school nurses and be able to take it to a particular need update says it should be an option, but it should be much higher and there should be some commercial gain products in the bundle.
Great.
Currently we made just about 200 gross revenue could lead to new states.
And don't put the equal with Lilly.
You were making about 200 crores of red tape that is a boost that substantially group.
When did this because at that time, we didn't give them another product.
No marketplace at all.
So with this kind of a product.
Great.
We're in the middle of vendors, but they still do that as well.
Neither they spend with us.
Yeah.
Does he have any now marina in mind, they get home.
You want to reach peak.
Let me know.
AP.
949, and you can see.
Okay.
Oh I'm sorry.
I mean, what looks like.
Or a little opportunities, where we can reach than.
And what would be an extremely light.
I think a movie you can go to them.
They're doing something right.
Is it possible.
Hum.
Typically we do on the consumer.
Would there be some probably my nonbeliever in English.
A lot of them are at disposals there.
Let me give me to make a buck so because every time.
It's been a very good product and then.
Get the people onboard.
And there'll be a little.
This product called JD months, and obviously the topic once that.
It comes through just gone and Colorado.
<unk> organic and inorganic you will see.
This will definitely be one of the best launches from just that.
And I you had 19 word I think big timing, Dave Amy Thank you Jay.
And if there's anything to be.
The database itself because everything is oh.
Yeah.
The big acknowledging.
What do you feel this time, you can get us not achieving that goal.
Where do you kind of thinking.
Market opportunity is so big that there is no question of competition are taking.
Taking over and all those things everybody can try it can be delivered or eventually.
Okay.
Yeah.
While making needs and be able to do.
Then the world transactions today.
And that's where we've been working on this she has a lot of gaps in the market. If you can.
I mean, there's.
There's also an opportunity that opened up the great. Thank you.
The claims business.
So is the.
The key strategy for their business and.
The timing is perfect.
Sure.
I assume that sort of.
Sure both of them.
So China.
So like any other business is on Bruce do you think that anyone can do better.
Excuse me losses.
Please go.
It's a challenge.
Okay.
[laughter] okay.
Sure.
I think maybe have equal number.
Right.
Next caller.
You bet.
Hum.
Okay.
Not so long ago.
But he can chime in.
Yes.
Yeah.
Thanks.
Okay.
Yeah.
We compete with.
When people think about it.
But then you can probably give you a certain order and get it done.
Okay.
[laughter] pocket.
Right.
It looks like.
We didn't want to keep them.
Awesome.
Yeah.
Yes.
Thanks, Mike.
Uh-huh onward.
Yes.
[laughter].
Hum.
I couldn't run eight months down the line you should be able to compare market share in terms of traffic or more doses.
Yeah, you should think of.
Thank you.
The next question is from the line of monarch Denis Joshua GM financial Please go ahead.
I think there's enough opportunity.
Sometimes it's not that one but I think that you have to do that.
Uh huh.
Should we see.
Second thing is in this year.
So to me either.
Most of them up with people like you say when you need it.
And good luck.
So we see them.
Right.
Yes, so I think the.
Since we didn't spend a significant amount of money.
Deep linking.
I am probably going to be run. So just if I agree to you will see that you're going to spend substantial amount of money in terms of.
Advertising and marketing.
We wish to do so so so subsea growth so you could probably be spending double pneumonia.
Uh huh.
Thank you.
Yeah.
Thank you.
The next question is from that I noticed you got it.
Please go ahead.
Hi, Thank you.
Just wanted to understand one thing.
I think the attention you talked about some of the low hanging fruit right.
Oh, Hi, Binnie essentially banned blinded study one of the key low hanging in there then we could set up and ready in the next let's say maybe previously published.
And then from the guidance I think they missed the number of methane and I couldn't be unlikely.
What are we missing there.
<unk> from the mix perspective.
And in Colorado, they need somebody inside of you that have been talked about.
Thank you.
On the targeted customers. So obviously, when we say low hanging food news to one so that could work are the ones, which are already being summit for long beach to the media are the first ones to reach out to them.
You know the competing interest you've got most of it.
Since we have been in this business.
25 years exactly know rejoined the company, but this is indeed anything <unk> space you know in each category. So we know these baltimore businesses couldn't do creating dataquick, Catalonia, and converting them into the paid ecosystem, which means be automotive quality verify trusted vendors.
It's a win win for them on including the users as well as the benefit.
And just got so that's going to be our target audience. So I bought the beginning let's say 10 million businesses to go after maybe the first two on the body and it could be hugely.
Equally important no.
What do you call a business is to reach out to and next we go to the next level of 200000. So that's how we go to court.
It's not just about reaching out to these businesses, it's about capturing every might've just detail about their products.
You know in every possible way.
As much content as possible.
So those studios minimum order quantities, Brian as you know the works because there's so much to do in this.
So essentially the question was so while you were litigated the large backlog right.
So that's the catalogues available. The question essentially is that how you can alert them per se.
What would be the selling function you can explain that later than it did vary a bit.