Q1 2021 JOYY Inc Earnings Call
[music].
Ladies and gentlemen, thank you for standing by and welcome to <unk>, Inc. 's first quarter 'twenty 'twenty 1 earnings call.
At this time all participants are in a listen only mode.
After managements prepared remarks, there will be a question and answer session.
I'd now like to hand, the conference over to a hosted today James Chi The company Senior manager of Investor Relations. Please go ahead Jean.
Thank you operator.
Hello, everyone welcome to join for first quarter 'twenty 'twenty, 1 earnings conference call.
Joining us today on Mr. David Shutting me chairman and CEO a joy.
MS Ting, Li our CLO and Mr. Alex flow the general manager of finance.
For today's call management will first provide a review of a quota and then we will conduct a Q&A session.
The first quarter 'twenty to 'twenty, 1 financial results and webcast of this conference call are available and I are a Doc joy at on X gene.
A replay of this call will also be available on a website and a few hours.
Before we continue I refer you to our Safe Harbor statement and our earnings press release, which apply to this call as we will make forward looking statements.
Finally, please note that unless otherwise stated all figures mentioned during this conference call on U S dollar.
I will now turn the call over to our chairman and CEO, Mr. David Sharon Lee. Please go ahead Sir.
Oh, Hello, everyone welcome to our first quarter plunger pumps and the 1 earnings call.
We reached a milestone in our product to a commercial lives and you shouldn't progress by executing our strategies all globalization through localization and the cell phone video class live streaming.
During the first quarter total revenue all store you can see the student inspections and.
And it grew by 88 point and 1 person per year to U S dollar and 643 million.
Especially revenue from Beagle grew by 19, 2.5% year over year to U S dollar 581 million.
We've put on and use our girl buys 72, pie and 1% year over year to 1 point to 67 million.
Above all.
<unk> non-GAAP net income and the positive during this quarter.
We have always believed that how much we can harvest and therefore is determined by how much we have shown in the spring.
And that's why we need to be long term thinkers.
As mentioned on our last quarter's earnings call vehicles achievement today as a result of our persistent execution of long term business a strategies over the past a 5 years.
Having reached a milestone in commercialization we remain.
Goal oriented and a long term focused.
We will devote our resources to sharpening our competitive edge and expanding our marketing and influence so that we can.
<unk> our growth trajectory for the long haul.
And Joy, we view as a social interact into.
Interactivity and a content ecosystem and a strategic call that a fund.
On the mental to the long term competitiveness of our products.
Draw a has always been a mission to.
<unk>.
In cloud and a global community, where everyone can be heard and a theme.
During the first quarter, all for 2020.1 more then.
17% of pre go live active user half 2 the live streaming sessions and a mall down 19% of like is active user a crease their own short form videos.
Moving forward leveraging our product metrics, combining salt video content with a live streaming we seek to further expand that user at a social connections where our content offering.
<unk>.
For Sealy page immersive, a social interactions thorough live streaming.
On a help users for.
Sure.
And he made for social relationships with 1 another.
And to provide a user with a sense of connection.
Belonging and the.
Gratification through social interactions.
In addition to relaxing and entertainment.
At the same time as I mentioned in the last call we plan to continue.
Augment our localize the content ecosystem.
Thanks to our products the change.
<unk> social features we have accumulated a massive poor on.
For amateur live streamers, and the content creators contributing.
And verse.
Reservoir of user generated content.
By empowering user with a full suite of video production tools, we have ease their way too into husky and live streaming sessions and a lower the entry barrier for the content production.
By combining user chain cost and user and incentive programs. We have income agent a more users to reduce our NGL content.
Thus expanding our pool of grass roots live streamers and the content a treaters continuously.
In addition.
Based on our insights into local users content a preference.
We have partnered with gaming companies television show producers and the entertainment agencies to attract more high quality live streamers and accounts and the creators to our platform.
And introduced and increasing volume of premium content to our content and the pool by leveraging the social influence of a leading content creators.
We have also been able to expand our user base persistently.
We believe the high quality content and a social ecosystem together for.
On the initiation and Jean propelling our growth for the long term.
As such we have gradually gradually a adjusted a product promotion and strategy for certain products, such as <unk> and Hangzhou.
And as we reduced our advertising spend.
And on those products, we have located our resources.
To a work.
Development of our content and social ecosystem is that.
Consequently, these port Arthur user base suffered a decline and.
<unk> is a pure is that.
<unk>.
Fluctuation in the near term.
However, we believe that prioritizing advertisement in our content and a social ecosystem, we will improve our user experience and contribute to our long term competitiveness.
We are confident that our strategy and adjustment will enable both our product and a business too.
She's a sustainable growth in the long wrong.
For a new business initiatives.
This cost on the loss per call.
Okay.
That way this suite a turned to a new opportunities in the cross border E Commerce sector.
And is that we have made some real inventory.
<unk>.
And cloud based audio and video enterprise and services.
And we continue to cause such a new market opportunities and we plan to gradually build up our competitive advantage in our products and technologies.
We will provide further updates when our new business initiatives and initiatives progress too.
Further.
Maturity.
Now, let me share with your quarterly <unk> in each of our core products.
During the fourth quarter. We go lives <unk> grew by 9% year over a year to $29.1 million, while its revenue growth by a 100 and a 6.2% year over year.
As big a live penetrates deeper into multi market.
As a geographic coverage is becoming increasingly diversified.
On a year over year basis revenue from Europe grew by 227, and 8% with paying users increasing by 118.
18.9.
Caisson.
Revenue from Eastern Pacific Region Rose by 100 and.
47, 5% with paying user increasing by 63, 2% and revenues from the Middle East for road by 46, 1% with per user increasing by 39 online a percent.
For a bar wise, we continue to upgrade the go live as a social features to better satisfy that users' demand for social interactions and.
As a result.
And.
Sequential basis the per.
Total number of users that hosted a live streaming session. We go live increased by.
6.5%.
With the average time of live streaming session increased by 1.9% in.
And the culture.
Bye.
A locating mall screen space to display as a background information of a hosts and guests on.
Live streams, we have made it a much easier for users to.
Initiate.
Samuel tenures interactions with multiple parties on live streaming.
Facilitating mall.
Multi user interactions on the platform.
As a result.
Sequential base.
And there is a <unk> time spend in multi multi user all du chat rooms, and a video chat rooms increased by 9.7% and.
16.1% respectively.
And as a user to a streamer.
On <unk> right in multiuser chat rooms increased by.
11, 2% in the quarter.
In addition, as we further fine tuned our social interactions feature called a bar is a user penetration rate also increased by 7%.
Sequentially over the last quarter.
As part of our efforts to develop a pan entertainment and content ecosystem.
We collaborated with a popular win win.
And that means TV show a lot of horse and a host of audio on our platform throws those aldi.
Audition, we elected a several hospital from Big go live to participate in those show, thereby boosting the influence of both our platform and.
It's hot in the region.
Meanwhile, during the Indian government's spent an hour and adjustment to products a promotion strategy.
<unk> <unk>.
Declined by.
12, 6% year over year to 115.
Meeting.
Power is revenue and maintained a rapid pace of growth.
<unk> bye.
For 2 times year over a year during the quarter.
In particular, 1 a year over year basis likely is revenue from the middle east multiple multiplied by.
For a 40.3 times.
With paying user increasing by approximately 10 times.
<unk> is revenue from the southeast Asia, a region multiple applied by 1.6 times with.
We are putting a user increasing by $1.7 tons.
Product wise, we introduced a full screen formats for nike's cellphone videos and further optimize the platforms content recommendation algorithm during the quarters to improve user experience.
<unk>.
And at the same time, we provide a content producers with more effective data support and.
Manav tools, attracting user usage from about 10%.
Our.
Professional content creators on.
Daily basis in the quarter.
We have also seen the increase.
Engagement of high quality and Kols in live streaming activities.
As a average daily live streaming sessions and organize the buyer kols.
And 2 followers will more than 10000, and 100000, increasing by 12.8 per cent and.
18, 5%.
Respectively.
In a sequential basis in the culture, we also refined our recommendation.
And <unk>.
Within the live streaming and China and enhance the trust TD the network basis based on content distribution.
As a result users and social interactions within the platforms live streaming and chat rooms and improved.
With the average user time spent on live streaming and chatrooms increase the buy.
<unk> achieved 5.5%.
And as a effective live streaming meus, increasing by 9.5% on.
The sequential basis.
Content wise, we organize a second season.
Like a star idle content in Indonesia in February.
Attracting a high talented group of creditors.
1 of the content winners.
<unk> power.
Was a later in March the 2 platform on Indonesia, and idle the largest a national.
Larry reality show in Indonesia.
Organizing those type of large scale events and collaborating with popular TV variety shows.
A key has effectively created a platform for new and creators to gain exposure read their public profiles and the other.
Demand for their careers.
Which intern motivating the creators to produce more high quality content on our platform.
Since the second half off a 2020 also due to our net adjustment to produce.
But the government to protocol as a promotion strategy.
<unk> Meus <unk>.
Experienced some decline in the past few quarters during the period harvest.
Worth 30.1.
$13.1 million, however, cargo achieved meaningful progress and is user interactivity and products a commercialization.
It's a revenue increased by 66, 8% year over year.
And by a year over year increase of 28%, Inc. Is paying users. Meanwhile, harvest non-GAAP operation moves loss.
Narrowed further in a sequential basis.
During the quarter. In addition to launching a number of multi user audio channel gains <unk> introduced a new social feature into is a channel called.
Family.
This feature enables user to established a virtual family with their friends and a supporters.
And a support.
Instant interaction.
Through tax audio and video.
And as satisfying users.
Growing demands for inches interest based on social networking.
By combining instant entertainment with a social interactions on hurdle.
And we create hognose average will increase the hognose average time of live streaming and session in audio channel by 8.5%.
Average a reward we were at a time spin on.
All deal chat rooms by 6.2%.
Is user to streamer converge commercial and raped by 2.2%.
And the penetration rates of our feature channel.
Hi.
10, 9%.
Sequentially.
In conclusion, as we expanded our paying user basis.
For us multiple products and we.
Achieved solid operating and financial results during the first quarter.
Going forward, we remain committed to further enhancing our localized content and social ecosystem and in reaching our user social entertainment experience.
With that I will now turn the call to our general manager of finance.
Alex Liu for a more detailed explanation of our quarterly financial results.
Okay. Thanks, David Hello, everyone.
Joy and for Mexico charter and Youre talking about a national results.
First on a majority of our revenues and expenses and now denominated in USD.
Starting from January 1 Pancaked antiviral, we changed our reporting currency from renminbi to U S dollar to better illustrate our operational results.
Please note that the financial information and non-GAAP financial information disclosed in our first quarter earnings press release a press.
And are continually a precise basis.
Unless otherwise specifically stated.
After the deconsolidation of.
The company accounts for operating investment and we are at.
And measured investment and apply the active measured accounts here 1 quarter in arrears to enable us to provide financial disclosures independent of the reporting schedule of Korea.
Also as a sale above a life was substantially completed on February 8.2020 by which certain customary and made us to be completed in the near future.
The historical financial results above alive and reflected in the company's cash.
Consolidated financial statements as discontinued operations are calculated.
Starting from the fourth quarter of 2020.
During the first quarter of 2020 via and maintained a strong growth momentum and delivered robust financial and operating results.
Our total net revenues for the first quarter increased by 8-K a.
A point of <unk> percent year over year to USD $643.1 million from USD $342 million in a same period, a 1000 ton per.
In particular, a live streaming revenues for the first quarter increased by 95, 6% year over year to 614 part of our meeting.
Driving by live streaming revenues and growth from <unk>.
Other revenues in the first quarter increased by 3.6% to USD $29 million.
Cost of revenues for the first quarter increased by 76, 5% year over year to a USD 442.9 million.
Revenue sharing fees and content costs increased to USD 282 million and as our first quarter from USD 102006, <unk> media is a same period, a 1000 tons here.
Which was in line with the Inc.
Chris and live streaming revenues.
Bandwidth costs decreased to USD $29.5 million from USD 33 points to media is a same period a 2020.
Primarily related to the company's improved emphasis there and the commission a panel based used it for users and India. After a.
It matters to block certain Chinese mobile apps and led to a 2020.
Partially offset by the continued user base expansion upside in there.
Gross profit increased by 100, and a 19, 8% year over year to USD $202 million.
Gross margin is a first quarter of 2020 by improved to certify and part of my percent from 26, 6% in the same period, a 2010 per.
Operating expenses for the first quarter increased to adjusted 279 million from USD $206 streaming and the same period a 2020.
Among the operating expenses.
Other reserves and a divestment expenses increased adjusted 87 minutes is a first quarter from 69 portable media is a same period a 2010 per.
As part of the company's efforts to enhance its research and development capabilities.
Shifts and market expenses increased to USD $137.4 million in the period from USD 100, and certain non media and the same period, a 2020, primarily due to the company's increased efforts and short term.
<unk> is a global market.
Our GAAP operating loss for the first quarter was USD 73 million from USD, 100, and certain port and $9 million in the same period a 2020.
Operating loss margin for the first quarter was narrowed to 11, 4% compared to 33, 3% in the same period for 2020 for.
Primarily due to net operating loss of vehicle.
Our non-GAAP operating loss for the fourth quarter, which exclude share based compensation expenses.
A multi disciplined of intangible assets from business acquisitions.
As well as impairment of goodwill and investments and a gain on disposal of subsidiary and business.
Decreased by 57, 2% to USD $29.7 million.
Compared to adjusted 69 streaming is a same period a 2010 per.
Non-GAAP operating loss margin for the first quarter was narrowed to 4.6% from 20, plus 3% is a prior year period.
GAAP net loss from continuing operations Etch field force controlling interest of Joy in as a first quarter of 2020 via was USD 87, 3 million compared to USD 62 pumps streaming in the same period a 2020.
Net loss margin was <unk>, 6% in a first quarter authentic and Teva.
Compared to 18, 2% in a corresponding period of 2020.
Non-GAAP net loss from continuing operations attributable to controlling interest of Joy was USD $24.1 million in the first quarter compared to USD $64.5 million is a <unk> a 2020.
Non-GAAP net loss margin was narrowed to 3 plus 7% is a first quarter of 2020 volume from 18, 9% in the same period, a 2010 per.
Notably Beagle has achieved a positive non-GAAP net income for the first quarter of USD 9.5 million.
Non-GAAP net margin improved to 1.6% from negative 7.9% is a prior year period.
Diluted net loss per ads is a first quarter of 2020 by USD, 1 point of a history compared to USD <unk>.
<unk> is a same period, a 2000 ton per.
Non-GAAP diluted net loss per ADR was narrowed to USD <unk> III project is zero and 1 is a same period, a 2000 and pentair.
Yes.
For this space, our quarterly dividend ply approved on August 11, 2020 and on November 16.
We will distribute here a dividend of USD <unk> 5 volume per ads for the first quarter of 2020, VI, which is expected to be paid on July 28, 2025 to shareholders of record as of the class of business on June 8.
2020 environment.
Also would love to provide an update to our execution of the share repurchase program announced on May 10000 ton per.
And <unk> the company.
Repurchase up to adjusted 300, many of its share to August 2020 back.
As of March 31, 2020 by the company had repurchased approximately USD 196, a meeting of its shares.
At Mesa and endeavors speeds.
We will continue to invest in business development initiatives to further expand a global market rates.
Cultivate a highly engaged user community and augment.
Our high quality content offerings.
We will also actively explore other ways to maximize shareholder value.
For the second quarter of 2020 via this expect average net revenues to be between USD 645 million and.
USD $663 million.
Excluding the revenue contributes a from <unk> and YY live is a same period of loss a year.
Utilizing a <unk>.
Year over year increase between 36, 2% to 40%.
We currently have limited visibility surrounding the COVID-19 epidemic long term impacts on net.
Over a little a circuit is on our business and as a market in basically operate.
Therefore, this forecast OLED and OLED and reflects our current and preliminary sales on the market and a brief knock on basis.
With a subject to change.
Yes.
Okay that concludes our prepared remarks, operator, we will.
Now I'd like to open up for call to questions.
Thanks.
Thank you, ladies and gentlemen, if you wish to ask a question. Please press star 1 on your telephone and wait for your name to be announced.
For the convenience of everyone on the call. Please ask 1 question at a time.
A question please rejoin the queue.
Well for when asking a question. Please state your question in Chinese.
And then immediately repeat your question in English. Thank you.
Question comes from Alex <unk>.
And at Morgan Stanley. Please go ahead.
And I'll turn it on X gene.
Just a question over to you on a digital content.
And when you shop.
And just hanging on to try and win.
On a couch songs.
And Tom.
Sorry, John.
Okay.
Tom.
Okay.
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And a much without a union.
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For sure.
And John and team for fixed income.
Yes.
Thanks for taking my question. My first question is regarding there are some rumors about.
On the management change.
A key goal level.
So I'd like to understand.
Situation and then is there any impact on operation.
And my second question is regarding.
A key operating regions key operating countries, a bulk of user growth user retention and a payout ratio et cetera. Thank you very much.
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Yeah.
Hi, This is David let me answer your question on.
And in the past 12 months <unk> had some personnel changes and.
That changes with Nikkei and execute our content strategy and satisfy the evolving needs.
And then a development.
And what may remain unchanged with conviction and confidence in the global market potential.
As mentioned before a belief that eagle life, you'll have.
Or even 5 time potential YY live revenue and the near future with a need a global market potential.
Unlimited plan and gradually accessorize and advocates.
And defines a year.
Nike there would be some channel.
Strategy changes and as I mentioned in my prepared remarks, we have Ricky.
A spending on advertising.
On and prioritize our risk weighted towards content ecosystem, and our social and community.
And we believe that.
Try and model up trying to see is more and market share by aggressive advertising spending has 2 and 3.
<unk>, our business with more driven by our advantage and the technology sector going forward with a lot to combine our technology advantage and together with our operation advantages.
That will not gradually prioritize our reiterated in index.
And the content ecosystem, whereby we introduce more high quality content creators and more.
Premium content into our content for and trying to improve and retention rate and I'll stay on.
On a content offerings.
Local lines operation.
So on and I think that for a bigger is already a company with a 5 year history and its business operations over the past few years.
Some more mature and.
Pico growth in scale and revenue we seek to further establish a more mature and.
To recruit and I'll, let and manage on a tenant.
And going for that we will continue to recruit more talent.
Technology.
Yes.
Globalization and also local acumen and set a dependable team to better achieve a long term business call.
Thanks for the question.
Question comes from Daniel Chen.
P. Morgan. Please go ahead.
Yes.
That's a ways.
And kind of dig a little quite.
And you take a while a units locally.
Okay.
My question for me.
Quite a few.
<unk> provides.
On a year a transaction with Baidu on YY live and thank you.
Yeah.
Growing digital Baidu does a deal and our momentum a shingle shall share pillow.
<unk> Jimmy on the ARIA Schmuhl signage hauled on such as a pillow.
A kunal throw more money during COVID-19 and 100 crucial James on your fulfillment Susanna Roomba, and <unk>, who will share the team for the children and women and we continue to insurance for us and 1 that within the CLO.
And if it came back on.
According to the latest update on Baidu.
Have any new information and nation and discipline.
The SEC filings on.
And then 7 and matched and 9 we had substantially completed a sale.
990.
A dealer and customer matches and are still in progress.
And for further information.
And when.
Fired by applicable Securities law.
Thank you.
Yeah.
Our next question comes from Thomas Chong.
Please go ahead.
Okay.
Yeah.
Okay.
Okay.
Yeah.
Okay.
Hi.
Okay.
Hey, good morning, Thanks management for cash.
Yes.
My question is.
Okay.
Can management share about the content and cost trends.
And how we should think about a market.
Market demand going forward. Thank you.
Okay.
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For the balance sheet.
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So you can't take a breath with ABB.
And this is.
Alex.
For clarification and the.
And then on product promotions and synergy.
And was mainly about prioritizing the allocation.
Net.
It means that on the reduced spending on advocate men will be mainly 3 directed to a product research and development our content ecosystem and also other localized operational activity.
In terms of the profitability trend.
As mentioned previously.
Your line itself is already profitable.
And with the steady progress and term product monetization across other products, we believe that the operating margin a whole.
Please go segment will gradually improve and given the economy of scale.
And we should be able to achieve more operating leverage on various expenses and cost item that share.
And payment channel costs.
And with cash.
Yes.
The fact that <unk> non-GAAP net margin turn positive this quarter marks a good start.
So.
If we look at a full year and I think we should be able to.
A key.
Low single digit non-GAAP net margin.
For <unk> at home.
Thank you.
Our next question comes from tea on queue and Th capital. Please go ahead.
Yeah.
And David Garner.
And at that time.
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On a number women and that's the way you go to.
Joe.
Hi.
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Jim.
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Thank you Bob.
No.
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A participation.
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Several calls.
David You mentioned about the music.
And.
And I Wonder if you could give us some clarification.
<unk> on those.
Net net.
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Davidson.
And in terms of our on.
Other towards a revenue.
Revenue for that clarify that.
We still believe.
For me, it's a very healthy and promising a 19 nation tour and you will continue to see decent growth coming from streaming.
And in my presentation.
And coming.
As for advertising, we had and act.
Accurately.
And.
Sure.
Second as well, but at Nic and time.
Even if we can achieve and Doug.
And Dale on.
From a global advertising revenue and wood.
Is that a challenging for anyone to try it.
He will make advertising and a primary.
And by revenue.
And on <unk>.
Property net of that on <unk>.
Industry on.
We need to rely on Google and Facebook and <unk>.
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Advertising and thank you.
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Sales and marketing probably hiring tens of thousands of sales and marketing staff.
And make sure that you've got.
Not sufficient.
On.
Yes.
Heightening packed and Mike.
L a and we do not see that that would be.
Achieved within a short period of time.
Im more and longtime and gradual process.
And but we do have higher interest in cross border E Commerce.
And I mentioned in our previous.
And in Wisconsin, as well, we still believe that over the cash.
On a ESP.
And China manufacturing you enjoy.
A competitive advantages and Tanzania.
A tightening efficiency and.
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Product quality.
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And for on a geopolitical risk.
And the company has.
And for size and.
And.
And have been well prepared and that sector since day, 1 and we incorporated the company and Singapore and Australia.
Greek and strictly abide by and policy and regulatory and plan then.
Each weekend and Canada.
Our survey network, we're also a wow.
Hello with data.
Locally and different countries and we have been hiring a lot of local employees currently how a local employee total number has reach on.
Exceed several thousand.
Think that we will continue to make sure that on.
And we can buy on the policies and regulations and <unk>.
Relation on.
And each local market that we operate.
And and you also can see that in 2020 and in the first quarter of this year.
We penetrate and key market for a market.
If you add eastern Pacific region.
And middle East and other emerging countries on the way.
Risk on a.
Single region have been.
Great.
We will flexibly adjust our user expansion and also operating entity in accordance with the development of D. A.
A situation to minimize impact on geopolitical day. Thank you.
And so that's all the time, we have for questions.
Back to management for closing remarks.
Thank you for joining our call and we look forward to speaking with everyone next quarter. Thank you just here for sure.
Yeah.
Thank you that does conclude the call today. Thank you so much for attending you may now disconnect.
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Ladies and gentlemen, thank you for standing by and welcome to join Inc. First quarter 2021 earnings call.
At this time all participants are in a listen only mode.
Management's prepared remarks, there will be a question and answer session.
I'd now like to hand, the conference over to your host today James Chi.
Company Senior manager of Investor Relations. Please go ahead Kim.
Thank you operator.
Hello, everyone welcome to join and first quarter 'twenty 'twenty, 1 and earnings conference call.
Joining us today on this today that sharing my chairman and CEO of <unk>.
MS Ting, Li our CFO and Mr. Alex Liu and general manager of Finance.
For today's call management will first provide a review of the quarter and then we will conduct a Q&A session.
The first quarter 2021 financial results and webcast of this conference call are available and IR Dot joint on X gene.
A replay of this call will also be available on a website and a few hours.
Before we continue and I refer you to our Safe Harbor statement and our earnings press release, which apply to this call and we will make forward looking statements.
Finally, please note that unless otherwise stated all figures mentioned during this conference call on U S dollar.
I will now turn the call over to our chairman and CEO, Mr. David <unk> and Lee. Please go ahead Sir.
Hello, everyone welcome to our first quarter 2021 earnings call.
We reached another milestone in our product a commercial lives at Liza and progress by executing our strategies of globalization and sorrow localization and the cellphone video class live streaming.
During the first quarter total revenue all store you can see the strength of inspections and.
And a grew by 88 point and 1% year over year to U S. Dollar.
643 million and.
Especially revenue from <unk> grew by 92, 5% year over year to U S dollar 581 million.
With paying user growth buys <unk> to apply and 1% year on year to 1 point to 67 million.
And all.
Vehicles, non-GAAP net income and the positive during this quarter.
We have always believed that how much we can harvest in the for is determined by how much we have shown in the screen.
And that's why we need to be long term thinkers.
As mentioned on our last quarter's earnings call.
Vehicles achievement today is a result of our persistent execution of long term business a strategies over the past 5 years.
Having reached a milestone in commercialization will remain.
Goal oriented and and long term focused.
We will devote our resources to sharpening our competitive edge and expanding our marketing and influence so that we can sustain our growth trajectory for the long haul.
And Joy reveals a social interact.
Interactivity and a content ecosystem as a strategic call that a fundamental to the long term competitiveness of our products.
July has always been emission too.
Cultivate.
And cloud <unk> and global community, where everyone can be heard and his team.
During the first quarter all for 'twenty 'twenty 1.
<unk>.
17% of Big go lives active user a half to the live streaming sessions and the mall non 19% offline is active user a crease their own short form videos going forward leveraging our product metrics combining.
<unk> solved video content with a live streaming.
We seek to further expand user social connections, we are our content offering offerings.
For Sealy page immersive, a social interactions through live streaming.
And help users for that.
And you've made for social relationships with 1 another.
We aim to provide a user with a sense of connection.
Belonging and the.
Gratification through social interactions.
In addition to reelection and entertainment.
At the same time as I mentioned in the last call we plan to continue.
Augment.
Localize the content ecosystem.
And thanks to our products that change a social features.
We have accumulated a massive pool of amateur live streamers and the content creators.
Reviewing.
Thus.
Reservoir of user generated content.
By empowering user with a full suite of video production tools, we have ease their way too into husky and live streaming sessions and a lower the entry barrier for the content production.
By combining user Ching cos and user and incentive programs, we have income aged more users to reduce our engine on content. Thus.
As us expanding our pool of grass roots live streamers and the content creators continuously.
In addition, based.
Based on our insights into local users content has a preference.
We have partnered with gaming companies television show producers and the entertainment the agencies to attract more high quality live streamers and a content creators to our platform.
And the introduced and increasing volume of premium content to our content and the pool by.
By leveraging the social influence of a leading content creators. We have also been able to expand our user base persistently.
We believe the high quality content and the social ecosystem together form the initiate a engine propelling our growth for the long term.
As such we have gradually gradually and adjusted as a product of a promotion strategy for certain products, such as like key and Hangzhou.
As we reduced our advertising spend and spend on those products.
A lockheed our resources.
Toward the.
Development of our content and social ecosystem is that.
Consequently, these port Arthur user base suffered a decline and may and superior is that.
And <unk>.
Fluctuation in the field EBITDA near term.
However, we believe that prioritizing advertisement in our content on a social ecosystem, we will improve our user experience and contribute to our long term competitiveness.
We are confident that our strategy and adjustment will enable both our products and a business too.
She's a sustainable growth in the long wrong.
For a new business initiatives.
These costs on the loss for coal.
Uh huh.
That we see.
A turned to a new opportunities in the cross border E Commerce sector.
And is that we have made some pretty mature a explosions.
In cloud based audio and video enterprise and services.
As we continue to explore such new market opportunities, we plan to gradually build up our competitive advantage in our products and technologies.
We will provide further updates when our new business initiatives and initiatives progress.
To further.
Maturity.
Now, let me share with your quarterly <unk> in each of our core products.
During the fourth quarter.
Go lives I'm EU grew by 9% year over year to $29.1 million, while its revenue growth by a 100 and a 6.2% year over year.
As big a live penetrates deeper into multi market is.
Geographic coverage is becoming increasingly diversified.
On a year over year basis revenue from Europe grew by 227, and 8% with paying users increasing by 118.
<unk> 9 and.
And percent.
Revenue from Eastern Pacific region grows by 100 and.
47, 5% with paying user increasing by 63, 2% and revenues from the middle East broader by 46, 1% with per user increasing by 39, 9%.
For by Wise, we continue to upgrade a big go lives a social features to better satisfy that users' demand for social interactions as a result.
No.
Sequential basis. The total number of users that hosted a live streaming and session on <unk> increased by <unk>.
A 6.5%.
With the average time of live streaming session increased by 1.9%.
And the culture.
Yeah.
Hi.
For locating mall screen space to displays a background information on a hot and the gas on <unk>.
Live streams.
We have made it a much easier for users to <unk>.
Initiate.
Samuel tenures interactions with multiple parties on.
And live streaming.
Facilitating mall.
Multi user interactions on the platform.
As a result.
Credential base.
And there is a <unk> time spend in multi multi user hour du chat rooms, and a video chat rooms increased by 9.7% and a 16.1% respectively.
And as a user to a streamer.
Conversation rate in multiuser chat rooms increased by <unk>.
11, 2% in the quarter.
In addition, as we further for.
Fine tuned our social interactions feature called a bar is user penetration rate also increased by 7%.
Sequentially over the last quarter.
As part of our efforts to develop a pan entertainment content ecosystem.
We collaborated with a popular.
And that means TV show, a allow horse and hostile on.
<unk> on our platform through a low aldi.
Audition.
And you like to the several hospital from Big go lives to participate in those show, thereby boosting the influence of both our platform and.
It's hot in the region.
Meanwhile, during the Indian government's spent hour, but adjustments 2 products a promotion strategy.
<unk> <unk>.
Declined by 12, 6% year over year to 115.
Meaning.
Power is revenue maintained a rapid pace of growth.
Multiplying by.
For 2 times year over a year during the quarter.
In particular, 1 a year over year basis likely as revenue from the middle East multiple and the multiply them by.
For a 40 points 3 times.
With paying user increasing by approximately 10 times.
<unk> is revenue from the southeast Asia, a region multiple blida by 1.6 times with.
We are putting us on increasing by 1 point Simon tons.
Product wise, we introduced a full screen formats for <unk> cellphone videos and further optimize the platforms content recommendation algorithm during the quarters to improve user experience.
<unk>.
And at the same time, we provide a content producers with more effective data a support and.
Manav tools, attracting user usage a from about 10%.
Our.
Professional content creators on.
Daily basis in the quarter.
We have also seen the increase.
Engagement of high quality and Kols in live streaming activities.
As a average daily live streaming sessions and organize the buyer kols.
A Q followers will more than 10000, and 100000, increasing by 12.8% and.
18, 5%.
Respectively.
In a sequential basis in the culture, we also refined our recommendation algorithm.
Raising the live streaming and China and.
And enhance the trust TD the network basis based on content distribution.
As a result users and social interactions, we using the platforms live streaming and chatrooms improved.
With the average user time spent on live streaming and chatrooms increase the buy.
On T 5.5% and.
The effective live streaming meus, increasing by 9.5% on.
Sequential basis.
Content wise.
And we organize a second season.
Of <unk> content in Indonesia in February.
Tracking a high talented group of creators.
And of the content and the winners.
Eastern power.
It was a later in March to platform on.
Indonesia and idle the largest a national large reality show in Indonesia.
By organizing those type of large scale events and collaborating with popular TV variety shows live.
And <unk> key has a effectively creates a platform for new increases to gain exposure read their public profiles and a.
A demand their careers.
We can turn motivating the creators to produce more high quality content on our platform.
Since the second half all for 2020 also due to our net adjustment to produce.
But the government and the 2 proton other promotion and strategy.
And <unk> Meus, Inc.
We experienced some decline in the past few quarters during the period Hognose Miu was 30.1.
$13.1 million, however, hartzell achieved meaningful progress and is user interactivity and a.
Products and commercialization.
It's a revenue increased by 66, 8% year over year.
Driven by a year over year increase of 28%, Inc is paying users. Meanwhile.
<unk> non-GAAP operation moves loss.
Narrowed further in a sequential basis.
During the quarter. In addition to launching a number of multi user all dual channel room gains <unk> introduced a new.
Social feature into is a channel called family.
This feature enables user to established a virtual family with their friends and a so partners.
And the support.
Instant interaction.
Through tax audio and video.
And as satisfying users.
A growing demands for interest interest based on social networking.
By combining instant entertainment with a social interactions on <unk>.
And we create a high gross and reached we increase the hognose average time of live streaming and session in audio chat rooms by 8.5%.
Average a reorder we were at a time spin on.
All deal chat rooms by 6.2%.
Is user to streamer converted commercial and rates by 2.2%.
And the penetration rates of our feature channel.
Hi.
10, 9%.
Sequentially.
In conclusion, as we expanded our paying user basis.
For us multiple products and we.
Achieved a solid operating and financial results during the first quarter.
Going forward, we remain committed to further enhancing our localized content and social ecosystem and in reaching our user social entertainment experience.
With that I will now turn the call to our general manager of finance.
Alex Liu for a more detailed explanation of our quarterly financial results.
Okay. Thanks, David Hello, everyone.
Joyce for Mexico Charter and we will talk about as a financial results.
First on a majority of our revenues and expenses and now denominated in USD.
Starting from January 1 'twenty 'twenty, 1 we changed our reporting currency from renminbi to U S dollar to better illustrate our operational results.
Yeah.
Please note that the financial information and non-GAAP financial information disclosed in our first quarter earnings press release a press.
And our continuing operations basis.
Unless otherwise specifically stated.
After the deconsolidation of we are the company accounts for operating investment and <unk>.
And active measured investment and apply the XD measured a count Q1 quarter in arrears to enable us to provide financial disclosures independent of the reporting schedule.
Yes.
Also as the share above a life was substantially completed on February 8.2020 by which certain customary and matters to be completed.
A near future.
Historical financial results above alive and reflected in the company's consol.
<unk> consolidated financial statements as discontinued operations a calculator.
Starting from the fourth quarter of 2020.
During the first quarter of 2021 and maintained a strong growth momentum and delivered robust financial and operating results.
Our total net revenues for the first quarter increased by 8-K, a 0.1% year over year to USD $643.1 million from USD $342 million is a simple <unk> of 10% on tier.
In particular and other large streaming revenues for the first quarter increased by 95, 6% year over year to 614 part of a meeting.
Driving by and large streaming revenues and gross from legal.
Other revenues in the first quarter increased by 3.6% to USD $29 million.
Cost of revenues for the first quarter increased by 76, 5% year over year to a USD 442.9 million.
Revenue sharing fees and content costs increased to USD 282 million Inc.
Our first quarter from USD 126, <unk> media is a free.
<unk> period, a 1000 tons here rich.
Which was in line with that.
Chris and live streaming revenues.
Bandwidth costs decreased to USD $29.5 million from USD 33 parts to me there is a same period a 2020.
Primarily related to the company's improved emphasis here and there.
And the combination a panel based used it for users and India after edge matters to block certain Chinese mobile apps in late July and 2020.
Partially offset by the continued user base expansion upside India.
Gross profit increased by 119, 8% year over year to a USD $202 million.
Gross margin is a first quarter of 2020 by improved to a certain volume part of my per second from 26, 6% in the same period a 2020.
Operating expenses for the first quarter increased to adjusted 279 million from USD $206 streaming is a same period a 2020.
Among the operating expenses.
Have a research and a divestment expenses increased to USD 87 million is a first quarter from 69 part of a meaning is a same period a 2020.
As part of the company's efforts to enhance its research and development capabilities.
Shifts and market expenses increased to USD $137.4 million in the period from USD 100, and certain parts and 9 media and the same period, a 2020, primarily due to the company's increased efforts and shortly.
<unk> is a global market.
Our GAAP operating loss for the first quarter was USD 73 immediate from USD 100, and certain parts of $9 million in the same period a 2020.
Operating loss margin for the first quarter was narrowed to 11, 4% compared to 33, plus 3% is a sink pillar for 2010 per <unk>.
Primarily due to net operating loss of vehicle.
Our non-GAAP operating loss for the first quarter, which exclude share based compensation expenses.
Amortization of intangible assets from business acquisitions.
As bill and impairment of goodwill and investments and a gain on disposal of subsidiary and business.
Decreased by 57, 2% to USD $29.7 million.
Compared to adjusted 69 flow stream media is a same period, a 2010 day.
Non-GAAP operating loss margin for the first quarter was narrowed to 4.6% from 20, plus 3% is a prior year period.
GAAP net loss from continuing operations Etch field force controlling interest of Joy and the first quarter of 2020 via was USD 87, 3 million compared to USD 62 pumps stream media is a same period a 2020.
Net loss margin was certain <unk>, 6% in a first quarter authentic and device.
Compared to 18, 2% in a corresponding period a 2020.
Non-GAAP net loss from continuing operations attributable to controlling interest of Joy was USD 24 foot wide meeting and the first quarter compared to USD $64.5 million is a same period a 2020.
Non-GAAP net loss margin was narrowed to 3.7% in the fourth quarter of 2020 volume from 18, 9% is a same period a 2010 per year.
Notably Beagle has achieved a positive non-GAAP net income for the first quarter of USD 9.5 million.
Non-GAAP net margin improved to 1.6% from negative 7.9% is a prior year period.
Diluted net loss for a D. Edge is a first quarter of 2020 by USD, 1 part of a history compared to USB thereof.
And why is a same period a 2020.
Non-GAAP diluted net loss per ads was narrowed to USB 3.
3 from USDA zero, a pump it why is a same period a 2020.
In addition, a codec space our quarterly dividend ply approved on August 11, 2010 per and on November 16.
We will be distributing a dividend of USD <unk> 5 volume per ADR.
For the first quarter of 2020 by this.
And is expected to be paid on July 28, 2025 to shareholders of record as of the close of business on July 18, 2020 volume.
Also we would love to provide updates to our execution of the share repurchase program announced on May 2020.
And rich the company.
Repurchase up to adjusted 300 million of its shares to August 2020 back.
As of March 31, 2020, but the company had repurchased approximately USD 196, a meeting of its shares.
At Mesa and endeavors speeds, maybe we'll continue to invest in business development initiatives to further expand a global market rates.
Cultivate a highly engaged user community and augment our.
Our high quality content offerings.
We will also actively explore other ways to maximize shareholder value.
For the second quarter of 2021.
We expect average net revenues to be between USD 645 million and.
USD $663 million.
Excluding the revenue contributes a from <unk> and YY live is a same period of last year.
Representing a year over year increase between $36.2 a protect a 40%.
We currently have limited visibility surrounding the COVID-19 epidemic long term impacts on net over a little a circuit is on our business and as a market in basically operate.
Therefore, this forecast OLED and OLED and reflects our current and preliminary sales on the market and.
A brief knock on basis.
As a subject to change.
Yes.
Okay that concludes our prepared remarks, operator, we will now.
Now I'd like to open up a call to questions. Thanks.
Thank you, ladies and gentlemen, if you wish to ask a question. Please press star 1 on your telephone and wait for your name to be announced.
For the convenience of everyone on the call. Please ask 1 question at a time Inc.
We wish to ask more questions. Please rejoin the queue.
Also when asking a question. Please state your question in Chinese first.
And immediately repeat your question in English. Thank you.
Our first question comes from Alex <unk> at.
And at Morgan Stanley. Please go ahead.
And Josh I'll turn it on on X gene.
Just a touch over to you on a digital antenna.
And when you shop.
And just try and win.
It accounts chunks.
And Paul.
So a strong <unk> income.
Carl.
Okay.
Name on them.
And so much and shop.
Channel 1 client should be called Jai.
And a mature.
Janine.
Throughout the courtyard share Geneva.
Sure. Thank you, Joe and John and team for fracturing Congress for sure.
Thanks for taking my question. My first question is regarding there are some rumors about.
Management change at <unk> level.
So I'd like to understand.
Situation and is there any impact on operation.
And the second question is regarding.
A key operating regions key operating countries, a bulk of user growth user retention and a payout ratio et cetera. Thank you very much.
It was on to the with Eisai on Ido inhibitor Daigle surgical cord, Sheila there's a Charlotte chart really bare <unk>.
I was just searching Malaysia and Vietnam.
And not to.
So we're moving away a local hottelet's negotiating and also the user tranches and changing though you ship tonnage volume.
And on enrollment, we will find out and there is a huge for the long haul.
The.
<unk> will be and don't see a dealer referral momentum related to the <unk>.
<unk> Hi, Susan Engel.
Silverado.
<unk> issued to them and we are transferring <unk> early on.
And you will see engineering number and on Monday.
<unk> and balance sheet on Colombia increase rollout.
The other than our general advice, a in a year on a like for the year will now a maintenance and local and balance sheets.
As a result.
Like is there on the year award.
3.1 lot on ground Holger.
On a challenge on Linux <unk> and Joshua.
So in a woman to the tile is a source all of it the likelihood of a multiple rule.
On a power Malone will garner a bottom layer on us when Eagle <unk> million with <unk> treatment, which was a year, where dropdowns only eagle diesel driven economy and for Google Leonardo and join other Jamba Eagle unions and sugar.
Jerry engine, a digital mirror treat onto the linoleum.
Pensions, a year will only to the people.
Yes, and I'll add to the street on <unk> on for <unk>.
<unk> larger sales.
So it's really valuable solution for a needle.
Non-GAAP.
For the element to the.
That will average a trio of EMEA, we should be at other KBR.
Now on a bigger regency down and available and solar <unk> jingle, a digital board shoe that <unk> generally requires a quantify that included a win for the quarter on many of <unk> as a usual returns.
As shown in the <unk> in a number of biogen's hydrological shambaugh payable DSI hook, 1 year total other donuts, Hangzhou, <unk> 10 billion and our monthly cash on to.
For the Chinese have onboard Johan Vertigo day.
Sales.
For the <unk> to the genre final and sheet Azar and I'll.
For countries is a challenge as a function of a yield a schedule to the authority of that.
Hi, This is David let me answer your question on.
And in the past 12 months <unk> had some personnel changes and.
And that changes will need cash.
Cash and execute our content strategy and satisfy the evolving needs.
And in development.
May remains unchanged with conviction and confidence in the global market potential.
As mentioned before a belief that vehicle lines Johan.
Or even 5 time attention on YY live revenue and the near future with elite is a global market potential and year on limited and.
Gradually accident and size and execute and defined a year and.
Nike there would be some channel.
Strategy changes and as I mentioned in my prepared remarks, we have Mickey.
Spending on advertising.
On and prioritize our risk weighted towards content ecosystem and our essential community.
And we believe that.
We try and model up trying to seize more and market share by aggressive advertising spending has 2 and previously our business with more driven by our advantage and the technology sector going forward a lot to combine our technology advantage to go.
And with our operation advantages.
That will not gradually prioritize our reiterated in on in.
And the content ecosystem, whereby we introduce more high quality content creators and more.
Premium content into our content for and trying to improve the retention rate and I'll say on.
And our content offerings.
And localized operations.
So on and I think that for a bigger is already a company with 5 year history and its business operations over the past few years.
Some more mature and.
Pico growth in scale and revenue we seek to further establish a more mature assets and.
To recruit develop and manage on a tenant.
And going for that we will continue to recruit more talent.
Technology a T.
Yes.
Globalization and also local acumen and further developed our team to better achieve a long term business call.
Thanks for the question.
<unk> comes from Daniel Chen.
P. Morgan. Please go ahead.
Yes.
And those go away.
And we couldn't figure by quite a you did a while a units locally.
Is that a feedback.
By crushing and conveying linked.
To quite a few.
And provide the basis on a year a transaction with Baidu Rui wildlife. Thank you.
Yes.
Going into the Baidu does a deal and our momentum a shingle shall share pillow.
And Jimmy on the ARIA Schmuhl signage hauled on such as a pillow.
Kunal Shah for many during keeping on 1 hand, crucial wuxi and soluble <unk> Susanne on Roomba, and <unk>, who will share the team for the Ginger and Walnut Creek and June Chen Flash on 1 that within the CLO.
And if it came back on.
According to the latest update on Baidu, we don't have any new information and mentioned and disclosed in the SEC filings on February 7 and March 9 we had essentially completed a sale.
We went and 990.
And there are deals on customer matters and a few.
And program.
And for further information and will be disclosed when and as written.
Hiring by applicable Securities law.
Our next.
Churn comes from Thomas Chong of Jefferies. Please go ahead.
Okay.
And so.
Okay.
Okay.
Okay.
Hi, Tom.
Yes.
Okay.
Hey, good morning, Thanks management for taking my questions. My question is.
Cost.
Can management share about the content and cost trends.
And how we should think about.
A margin trend going forward. Thank you.
Okay.
And we'll have a guy.
<unk> take a cohorts for EBIT out of Austria also trade total gender equal and within the page.
I won't go components per.
Total dollar content per party of that narrow some cash quarter.
<unk> balance sheet.
General and turn positive for Eagle life tempted by it Youll see a little bit since 2000 and agenda to provision.
Eagle Bancorp <unk>, so a great what sushi put up a million way.
And as shown <unk> CIT other too for some type of a comeback on funding agreement, which on you're down to a secure print.
And 2 eco Pan class it youll see activity that COVID-19 typically can be a hub.
He is on the material and kind of our Grand bag Eagle Bancorp and <unk>.
And take the low base with a UV.
And this is Alex.
For clarification.
The adjustment on a product promotion and synergy.
And was mainly about prioritizing the allocation of resources.
It means that on the reduced spending on advocate men will be mainly 3 directed to product research and development our content ecosystem and also other localized operational activity.
In terms of the profitability trend.
As mentioned previously <unk>.
<unk> live itself is already profitable and.
And with the steady progress and term product monetization across other product, we believe that the operating margin.
Vehicles segment.
We'll gradually improve and given the economy of scale.
We should be able to achieve more operating leverage on various expenses and cost item.
Chen payment channel costs.
And with cost et cetera.
The fact that <unk> non-GAAP net margin.
This quarter marks a good start.
So on.
If we look at a full year and I think.
And we should be able to.
A achieve a.
Low single digit non-GAAP net margin for <unk> at home.
Thank you.
Our next question comes from Tim on Q at T. H capital. Please go ahead.
And David and Glen.
And that somehow.
And Dan Guffey Gareth.
<unk> share.
Thank you Jorge.
2 a lag alcohol.
Yes.
For a mature Inc.
And bad debt.
With me on there.
And the plan.
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Sure.
The earnings and income.
And the year Nonetheless.
And thank you.
Yeah.
Hum that day.
And then Tom Yeah, Yeah.
Yes.
And Doug.
A number of women and that's the way.
Hi.
Yes.
She got Ya.
Right.
Now I'll quickly.
Right.
Blaine.
Jim.
A few boy I think ships.
Goodbye.
No.
And that vehicle.
Well developed.
Okay.
And good morning and.
Or a participation.
I Wonder if we have other.
Ways to monetize this.
Group of people and all.
Okay.
And also a.
And last.
And I will close.
David You mentioned about a new business.
And I Wonder if you could give us some clarification or updates on those that would be a business. That's number 1 number 2 is that geopolitics.
And I do see more sensitivity around geopolitics and such.
Chinese company to go overseas and operates in others.
Countries do you proceed and potential regulatory pressure on.
Either a <unk> or shortly deal. Thank you.
2 questions.
Politicians and here.
Diego do a referral.
Glenn and uses a charge all the relevant year, we'll do a deal.
So.
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And there's a woman and <unk>.
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And then of 1 other sort of a shift.
Sales to the 2 highlights was on commercial rules essentially all.
Leading the call nano the day.
There's a woman and those without giving women with a <unk> some daylight on the agenda.
Ruble bank on also drove a considered to also a rollout and the hot cereals and on the other giordano.
What should I dodged, a larger for new is a high.
Thats a long haul.
EBITDA, Eli you Facebook, Google and hoping that the ruling is on tourism and Eagle to leave a margin Aloha mythological sales for those with a total would agree more shanxi gasoline on that agreement.
And so those are all javan sales, Panama yoke and 2 the coupons will go a little bit on a layer. So in answer to the Jon Segal Sandeep dominant on the Eagle Ford Zone.
<unk> and others, a woman to either the intense on yields.
Since you said a real quick on balance sheet.
And 2 versus other years will either being a non cogenerated on gilenya and that has a.
And youre eating a meal.
And Jason on her shortly that Youll surely those change and as a general and exchanging them.
The other 2 the E chenzhou more wafers to <unk> and those are the change a little slower cereal and daughter a systems integrator.
Inventory.
And in terms of our on.
Other parts of revenue.
A of that clarify and we still believe nitrogen and it's a very healthy and promising on <unk>.
Integration tool and you will continue to see decent growth coming from streaming monetization and the coming.
As for advertising, we had and accurately.
Accurately.
Following and.
On.
Second as well, but we need to at that time.
Even as we plan a.
A key and.
It can scale on.
From a global advertising revenue.
And very challenging for anyone to try to.
And to make advertising and a primary.
Anthony.
On a property noted that on and off.
Our industry and.
We need to rely on Google and Facebook latitude coming on top line and <unk>.
And advertising.
You like.
On Scott independent platform.
A very heavy investment in sales and marketing probably hiring tens of thousands of sales and marketing staff.
And.
Thanks for a venue.
And so.
On.
Yes.
Hygiene packed and Mike.
So on and we do not see that that would be on.
Achieve within a short period of time.
I'm on a long time and gradual process.
And but we do have higher interest and cross border E Commerce.
And I mentioned in our previous earnings calls as well, we still believe that over the car.
And in 2 years.
At China manufacturing and you enjoy a.
A competitive advantages in terms of supply chain efficiency and all.
And the.
Product quality.
Not to participate in facilitating global trade and health.
And on efficiency and that's.
Thank you.
And you guys have a surgical genworth no and here the Yahoo.
Donna <unk> Jaguar and turns a woman.
It's reliant and to ensure that you're building on.
A whole women's is a.
To conclude a bigger logia was non cash.
And to release will uses a.
And these will you change a 1.3 and on women's as a <unk>.
TNT engines are a good.
A good deal.
<unk> will ultimately also and those are to the.
<unk> and fit on genome.
So and a woman to jewelry illogical to a changeover into a location and other Eagle Djembe day Paul.
Paul <unk>, who personally hired on energy to the G $20 on edge on non <unk>. This will be followed a put on look larger.
And to share those a women's yoga.
And our digital experience to.
And to the new Elijah a decision.
On a woman year highway to the other Mega Guadiana digital piano, and Goundou, others, and view and want to open gear and <unk> to Laguna above <unk>, Jacob and Ben to other year and.
2 other <unk>, Georgia.
To zoom and eager to deepen the <unk>.
We'll move on.
The change order young and actually OTT channel.
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Channel to grow AUM and credit chronology shirts wounded.
On an early in 2 a Virginia and digital the tsunami cannot draw on women's I also don't try beyond issue issue high yield change and what other additional <unk> for the losses on credit Sundar, So in a moment and Daiichi <unk>, 2 and a region.
Tonnage on dealer, so and a woman can be realized record as users of other non linked digital Natalia <unk> for.
<unk> heard a lean and lets failure smoothed, either biodiesel and under a function and John J D.
Hey, Jason in zone.
And for on geopolitical risk.
And the company has on.
And for size and.
And.
And.
And have been well prepared and that sector since day, 1 and we incorporated the company Inc.
For and also have.
Leaks and strictly abide by and policy and regulatory and plan then.
Each region.
Zone.
Our server and network. We are also well distributed across a slow with data on slide.
Locally and different countries and we have been hiring a lot of local employees currently our local employee total number has reached and exceed.
Exceed several thousand so I think that we will continue to make sure that on.
And we can buy on the policies and regulations on and <unk>.
Relation on.
And of each local market that we operate and and you also can see that in 2020 and in the first quarter of this year.
And we penetrate and key market for a market.
And with you at Eastern Pacific Region.
And the middle East and other emerging countries and the risk of a single region have been greatly.
<unk>.
And we will flexibly adjust our user expansion and wholesale operating energy in accordance with the development of <unk>.
And there are situations to minimize impact on geopolitical Inc. Thank you.
Thank you for all the time, we have for questions I will hand back to management for closing remarks.
Thank you for joining our call and we look forward to speaking with everyone next quarter. Thank you to share.
Sure.
Thank you that does conclude the call today. Thank you so much for attending you may now disconnect.