Q3 2021 Phoenix New Media Ltd Earnings Call
Ladies and gentlemen, thank you Paul standing by and welcome to the Phoenix, New Media third quarter 2021, Lettings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during the session Press star one on your telephone.
Most of US did that today's conference is being recorded.
I'd like to hand, the conference what's your first speaker today, what does it go from Investor Relations. Thank you. Please go ahead.
Alright. Thank you operator, welcome to Phoenix, New media third quarter 2021 earnings conference call I'm joined here today by our Chief Executive Officer, and Mr. Fong deal and our Chief Financial Officer, Mr ever do.
On today's call management will first provide a review of the quarter results and then conduct a Q&A session.
Third quarter 2021 financial results and webcast of this conference call are available on our website and our dog iPhone Dot com a replay of the call will be available on the website in a few hours.
Before we continue I'd like to refer you to our Safe Harbor statement in our earnings press release, which applies to this call as we will make forward looking statements.
Finally, please note that unless otherwise stated all figures mentioned during the conference call are in RMB.
With that I would like to turn the call over to Mr. Liu our CEO.
Thank you Melissa Hello, everyone. Thank you for joining us on our call today.
Quarter of 2021, we continue to navigate an uncertain macro environment, while remaining committed to leadership in beauty all core competitive differentiation original content production capabilities. We have collaborated more closely with our parent company Phoenix TV.
Is.
Equity restructuring early this year.
This collaboration expands our continued focus on.
And housing our content offerings marketing solutions and industry sources to create a cohesive and innovative media company.
We have substantially increased the depth breadth inclusivity and credibility of our news coverage by integrating Phoenix Tv's Global network reporters with Bose All magic online user base I know, you'll be quitters presence on social media platforms.
Deeper collaboration with Phoenix TV also allow us to standardize all resources client base, creating a richer and more comprehensive suite of marketing solutions for border Advertiser base.
Additionally, increased exposure of our new media elements embedded beneath television programming Hawkins will help raise our brand awareness with high end TV audiences.
During 2021 in conjunction with many TV. We reported there is major world news events, we're seeing widespread acclaim well coverage both in China abroad.
These reports included coverage this quarter of two major events that we saw.
All of US troops from Afghanistan, ending a 20 year long wall and the 24 hour rolling come aberration.
September 11th anniversary.
Utilizing Phoenix Tv's expertise in light reporting and a highly effective planning and coordination with all frontline reporters with demonstrated.
Paolo credibility you like reporting.
These courage involved interviews dialogues.
Retrospective clips a live interaction.
We thought all users annual forecasted through a number of media distribution channels, including our iPhone APB cable and satellite TV as a result, the two reports generated over 100 million video views on 16 million article six online.
But at the same time, our original columns complemented the cover each of these events by providing our users with a broader perspective.
Example, all social investigated column living there and again focus on the stories of the first witness after September 11th attacks.
While our international commentators column Trent Who's young focus on the topics of anti terrorism.
Our science discovery column tumor intelligence agency Ghannouchi mochi.
Other hand bore all users' attention to victims that had sustained physical suffering from the attacks on original content has been viewed 3 million times I'll pass it on.
On over 10 million times on wasteful.
In addition to our global news reporting.
Conscious of our social responsibility.
Possibilities, especially during difficult times in late July we were one of the first media organizations to realize that the record breaking rainfall and flooding in province was developing into disastrous flooding required certain media coverage.
Live broadcasting.
That's reporting capture not only the severe damage caused by the blood blood, but also erotic rescue teams.
Our Kirby show the courage disappear.
Kindness of least affected raising public awareness and inspire people to donate to the victims of the flooding.
Following on from that.
Disaster, a signature column uncle produced insightful analysis of climate issues for audiences with lifting 185 million views a wechat official account alone.
Our investigative column eye of the storm volume.
Focus on the aftermath of the plots spin.
Specifically compensation.
Losses, and was published by both mainstream media.
Although we media accounts.
Now, let's take a closer look at eye of the storm and original investigative column, we launched last quarter.
This uniquely branded column has continuously involved receiving recognition as a leader in this field and receiving widespread place voice contribution to both corporate governance enhancements and improvement of overall industry standards.
The column trapped on highlighted kind of the hot topics, such as enterprise safety financial and credit risk productivity and more.
Combining our integrated reporting methods and all undercover investigations.
We published over 100 topics during the third quarter under the column gathering certain million views in total.
Moving onto as we know it cheater youll shirt.
MCM platform that we launched early this year.
The end of the third quarter, the number of all contracted creators both domestic and overseas almost doubled.
We have produced hundreds of premium videos and generated over 10 million followers of course oldest third party platforms.
The subject cover on a powerful range from global topics to board implemented categories, including finance wellness along.
In terms of the monetization of the MTN during the quarter all theaters in Japan showcase our video content marketing capability.
They demonstrated this capability by filming a video showing light in Japan during the pandemic, we saw advertisers part embedded in the medium.
This customized content help advertisers to tell the brand story with a focus on international expansion and development.
We're still in the process of expanding al Queda network, extending our system to overseas social platforms. This global network will help us meet our clients' ever growing demand for overseas marketing.
Well, we continue to enrich our library of locking the commercial value of our large user base on third party platforms.
It remains one of our priorities since the second quarter, we have carried out a more systematic approach towards operating on these platforms.
Including setting the tone and the style of each account and adjusting performance evaluation metrics.
Glad to be able to report that these efforts have achieved positive results as the number of followers on our six top meteor social accounts grew by hundreds of solvents in the third quarter.
No.
Sponsored product platforms.
Hum.
<unk>.
Absolutely.
<unk> has expanded the scope of its product reviews from electronic products to fast moving consumer goods.
We have also extended our advertiser focus from tech brands to board lifestyle related products, such as cosmetics and health and wellness brands.
This helped us to deepen our presence in sectors, where we were previously and they represented shift.
Shifting to a more balanced climate client mix.
On a sequential basis, the total number of hours of our Phoenix lab column increased by 24%.
Revenue increased by 31, 5% Mr quarter.
Now, let's take a look at our iPhone App, we have vastly improved user interface and patiently to better incorporate exclusive content from Phoenix TV.
Included more highlights video clips of classic premium TV portal.
To do catered to growing demand for short form videos and optimize the life forecast I'm playback functions to improve user experience.
In terms of common distributions within the App.
The recommendation algorithm by selecting and distribute content from high quality and popular we media accounts. This method of content delivery complements our interest base distribution strategy as such the Ctr and really compete reached operating use push.
Have greatly improved.
We have also enhanced the quality of feedback all content by increasing the weight of reviews from core users in certain interest areas, reducing the weight of reviews from less active users.
Following these adjustments the quality well beauty content was optimized on a call and I'll click through rate was increased by 30%.
Finally, I'd like to share our progress exactly this diversification.
For online reading, we continue to make progress expanding monetization channels for a premium IP counsel.
Last quarter, we reached an agreement for two year strategic cooperation with bypass and authorized various platforms to access.
Audio books.
Well, we completed building all the input regarding team.
Adding team and started over 30, new recordings building a pipeline for future operations.
That's what e-commerce this quarter will continue to execute.
Differentiated merchandising strategy.
The culture and creativity on the one hand like hobby.
With museums and preservers of National Cultural heritage to insure the compilation of gears cultural products.
On the other hand, we launched the Phoenix Macerich column <unk> got you Jim on social and video platforms original constant theories on culture innovation that has attracted considerable traffic.
The health and wellness, we incorporated the theme in our product selections and crafted hardware.
Good food clothes and accessories.
Finally regarding our real estate vertical we're anticipating a challenge challenging environments going forward of government regulations tightened on the risk of Evergrande group defaulting on that increase.
In response, we are proactively optimizing our client based structure and focusing on real estate companies with relatively healthy balance sheets and strong shareholder backlogs.
Additionally, we are rigorously undertaking new business initiatives other than advertising along the industry value chain in order to create a new growth curve.
In summary, during the third quarter, we maintained our strategic focus on extending our client verticals, expanding our international presence optimizing our products and growing our monetization capabilities.
While we continue to face pressure as a result of the current macro uncertainties, we plan to remain prudent.
Evaluating the business initiatives aligned business with shifting industry dynamics and elevate our blasting process through consistent delivery of original content.
That I will now turn the core to our CFO <unk> to provide a closer look into our quarterly financials.
Thank you Sean and thank you all for joining our conference call today.
Our total revenues in the third quarter of 2021, or RMB $244 six minute, representing a decrease of 19, 3% from RMB 203 minutes in the same period of last year.
I will now provide some additional color on our revenues during the third quarter of 2021.
Net advertising revenues in the third quarter of 2021, or RMB $216 six minute, representing a decrease of 23% from RMB $281 three minutes in the same period of last year.
Mainly due to the reduction in advertising spending of advertisers from certain industries in the period.
Paid services revenues in the third quarter of 2021 increased by 29% to RMB.
$28 million.
From RMB 21, 7 million in the same period of last year.
Revenues from paid content in the third quarter of 2021 increased by 69, 7% to RMB $15 1 million from.
RMB eight 9 million in the same period of last year.
Mainly due to the increase.
Revenues from licensing fees related to audio books.
Revenues from E Commerce and the other in the third quarter of 2021 increased by 0.8% to RMB 12, 90 minutes from RMB 12, eight minutes in the same period of 2020.
Loss from operations in the third quarter of 2021 was RMB $206 three minute compared to a loss from operations of RMB 28, four minutes in the same period of last year.
<unk> margin in the third quarter of 2021 was negative.
84, 3% compared to a negative nine 4% in the same period of last year.
As mentioned earlier, we continue to face increasing challenge from challenging industry landscape as.
As well as the macro economic slowdown in the third quarter.
This kind of wins or particularly strong in the real estate sector.
Where we incurred a RMB 144 minute bad debt expenses from certain better.
Non-GAAP loss from operations in the third quarter of 2021 was RMB $204 8 million compared to non-GAAP loss from operations of RMB $26 seven minutes in the same period of last year.
Non-GAAP operating margin in the third quarter of 2021 was negative.
Three 7% compared to a negative eight eight.
8% in the same period of last year.
Loss from continuing operations attributable to iPhone in the third quarter of 2020, what was RMB 134.0 million compared to a net loss from continuing operations attributable to iPhone of RMB 0.9 minutes in the same period of last year.
Non-GAAP net loss from continuing operations attributable to iPhone in the third quarter of 2021 was RMB $175 4 million compared to a non-GAAP net income from continuing operations attributable to iPhone of RMB, one three minutes in the same period last year.
<unk>.
Moving onto our balance sheet as of.
September 32021 to.
The company's cash and cash equivalent term deposits short term investments and restricted cash or RMB 150.
57 billion or approximately U S dollar 243 five minutes.
Finally, I'd like to provide our business outlook for the fourth quarter of 2021.
Were forecasting total revenues to be between RMB, $256 1 million and RMB $276 one minute.
For net advertising revenues, we are forecasting between RMB $209, seven men and RMB $234 seven minutes.
For paid service revenues, we are forecasting between RMB 16, four minutes in the RMB 21 for a minute.
Well, we remain committed to fostering our competitive differentiation original content.
Such effort May cost.
Volatility.
Our appropriate to margin in the near term.
We plan to enhance our business and you do it by proactively managing our expenses.
<unk>, our operations and the improving all of our revenue stream mic.
Leveraging our <unk> collaboration with <unk>, we are convinced that we'll be able to navigate our way.
Through our diversity and increase shareholder value in the future.
This concludes the prepared portion of our call.
Now ready for questions operator.
Operator, Please go ahead.
Yeah.
Thank you ladies and gentlemen, we will now begin the question and answer session.
You should ask the questions on the telephone and Victor name to be announced.
Vishal tends to have a request please press the pound key.
Your first question comes from Chevron's Zhang.
80, 686 research. Please ask your question.
Okay.
Yeah. Thank you good morning management. Thank you for taking my question I Wonder if you could share some color on your outlook and also any major we're going to take two again the cross momentum. Thank you.
Hi, This is <unk> speaking.
Uh huh.
Actually we do face many challenges with all of our brand advertising business.
This intense competition and all of our advertisers are being affected by macro environments and regulations as well.
All have negative impact on us.
We must have faced these challenges and thoroughly review all of our business and analyze all of our strengths weekend as well as our future opportunities.
We have done a thorough analysis on the drivers behind each part of our advertising revenue.
And is that a strategic goals and action plans accordingly.
All of our active users drive our programmatic advertising revenue.
We made a pass to increase to over Oh user retention and time spent you know all of our App.
For all of our targeted user groups.
Upgrading our app to allow more user interaction and the increasing the richness of our content.
We have to continue to invest.
You mentioned efforts, yeah, all of our products to increase its commercial value.
In terms of brand advertising, we need to focus on to park.
Increasing the number of our clients.
Clients and increasing of our pricing premium.
On one hand, we are actively expanding our client.
Client base, we are upgrading our marketing resources to tailored to a wider.
Client base.
For example, like our children don't project works closely with.
With college.
Caters to advertisers.
Marketing younger market.
Or Ah think slab plummeted options hook helps us reach out to advertisers in the F. M. C. G sector through a professional product reviews we.
We use our expertise in product testing and our media influence.
We endorse and promote all of our advertisers' products.
Also our full north you know, we have millions of followers I'm at CN and <unk>.
Third party platforms.
Provide advertisers with a wider selection of channels for marketing.
<unk> lyrics folgers through the Internet.
Our overseas content creator network helps us to reach customers with <unk>.
Globalization.
Yes.
Aside from our occurring.
Growing our customer base.
Base.
We also continued to elevate our brand influence is key to our pricing premium.
Our brand influence is.
We reflected that in our original content and offline event, when you will optimize our resources allocation.
To give more support to our trademark content and events.
By doing so we hope to maintain and enhance our brand awareness to guaranteed or.
Our other high.
Premiums.
Thank you Cheryl.
Thank you that's very helpful.
Your next question comes from at least a first Shanghai. Please ask your question.
Thank you operator and management for your time after this quarter, we felt that the company has built up large amounts of bad debts do you ever granted credit risk.
Management could you further explain the impact of ever Grand on your business operation and also perhaps give us some color on what impact it will have on the company's future business. Thank you.
Thank you Ed.
You're right Evergrande liquidity issue had a big impact on us, let's called her a way of paying close attention to the situation.
And of course, we will continue to fly on the overdue balance.
But all of our financials to be prudent we have fully written off our a contra receivable and the notes receivable from Iva grants.
The impact on this quarters operating income was a loss of.
RMB 140 minutes.
So in terms of a bet that we have always followed a relevant accounting standards and the.
Oh are we always worked closely with our auditor.
To ensure we take a sufficient provision.
For the first half of the year.
Sorry, I ever Grand didn't show signs of a major default risk but in the.
The third quarter.
Did you see red flags in the market.
At the same time, they delayed to pay us on time.
There is huge uncertainty yeah why is our we can.
Collectively.
Comp we have to take a full provision in this quarter.
But the only other hand, so there will be no additional bad debt expense from Evergrande, our financials in the future.
As to the impact on our future business.
Of all of our work with Evergrande its advertising under close to part time.
Gross margin was relatively good and we had been receiving payments from then until September.
September last year.
Let's chunk of this means all of our.
And the bottom line.
Might be negatively impacted in the future and we need to work extra hard to make it up.
Our team is now actively.
Defending our client base with.
The credits and the relatively healthy.
Sheep.
Also we are actively exploring along the upstream and downstream of the real estate industry chain to take more.
<unk> opportunities.
I I hope I have answered your question.
And thank you for answering my question that was very helpful.
Thank you.
Yeah.
Yeah.
Yeah.
There are no further questions at this time I'd now like to hand, the conference back to Louis for closing remarks.
Alright. Thank you operator, we have come to the end of our Q&A session and our conference call. Please feel free to contact us. If you have any further questions. Thank you for joining us today on this call have a good day.
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Ladies and gentlemen, thank you for sitting by and welcome to the Phoenix, New Media third quarter 2021 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during the session Press star one on your telephone.
I must advise you that today's conference is being recorded and I'd like to hand the conference. What's your first speaker today, what does it go from Investor Relations. Thank you. Please go ahead.
Alright, Thank you operator, and welcome to Phoenix, New Media third quarter 2020, why earnings conference call I'm joined here today by our Chief Executive Officer, Mr. Fong deal and our Chief Financial Officer, Mr. Half are due.
On today's call management will first provide a review of the quarterly results and then conduct a Q&A session.
Third quarter, 'twenty or 'twenty, one financial results and webcast of this conference call are available on our website and I arent all iPhone dot com a replay of the call will be available on the website in a few hours.
Before we continue I'd like to refer you to our Safe Harbor statement in our earnings press release, which applies to this call we will make forward looking statements.
Finally, please note that unless otherwise stated all figures mentioned during the conference call are in RMB.
With that I would like to turn the call over to Mr. Phil <unk> our CEO.
Thank you Melissa Hello, everyone. Thank you for joining us on our call today.
Quarter of 2021, we continue to navigate an uncertain macro environment, while remaining committed to accomplish leadership and building our core competitive differentiation original content production capabilities. We have collaborated more closely with our parent company Phoenix TV.
Boeing is equity restructuring early this year.
This collaboration strategy, our continued focus on enhancing our content offerings marketing solutions and industry sources to create a cohesive and innovative media company.
We have substantially increased the dash breath inclusivity and credibility of our news coverage by integrating Phoenix Tv's Global network reporters with Bose all massive online user base I know you'll be creators presence on social media platforms.
This deeper collaboration with Phoenix TV also allow us to standardize all resources.
Please creating a richer more comprehensive suite of marketing solutions for border Advertiser base.
Additionally, increased exposure of our new media elements embedded in Phoenix Tv's programming content will help raise our brand awareness with high end TV audiences.
During 2021 in conjunction with many TV, we reported there has made or will you be.
We're seeing widespread acclaim well coverage both in China abroad.
This report included coverage during this quarter of two major events.
The withdrawal of troops from Afghanistan, ending the 20 year long wall and the 24 hour rolling come aberration often.
September 11th anniversary.
Utilizing Phoenix Tv's expertise in light recording and a highly effective planning and coordination with our frontline reporters with demonstrated.
Paolo credibility you like reporting.
These courage.
<unk> interviewed dialogues.
Retrospective clips a live interaction.
We thought all users and broadcasters through a number of media distribution channels, including our iPhone ATP cable and satellite TV.
As a result, the two reports generated over 100 million video views and 16 million article six online.
At the same time originally columns complemented the cover each of these events by providing our users with the border perspective for example, our social investigated column living.
Focus on the stories of the first witness up to September 11th attacks.
While our international commentators column that <unk>.
Focus on the topics of.
Terrorism.
Our science discovery column tumor intelligence agency Ghannouchi module on the other hand bore all users' attention to victims that had sustained physical suffering from the attacks.
Original content has been viewed 3 million claims platform and over 10 million times on Weibo.
In addition to our global news reporting.
Conscious of a social responsible.
Responsibilities, especially during difficult times.
Late July we were one of the first media organizations to realize that the record breaking rainfall insulin on province was developing into disastrous flooding.
Acquired Cogent media coverage.
Our live broadcasting in depth reporting capture not only the severe damage caused by the blockage plus but also erotic rescue teams.
Harvey show, the courage disappear and kindness of least affected raising public awareness.
Violent people to donate to the victims of the flooding.
Following on from that.
Disaster.
Nature column uncle.
Insightful analysis on climate issues for audiences.
Good evening 185 million views.
Each had official account alone.
Oh investigated column eye of the storm volume focus on the aftermath of the plants.
Specifically compensation for victims losses, and was published by both mainstream media and other we media accounts.
Now, let's take a closer look at eye of the storm.
Original investigative column, we launched last quarter.
This uniquely branded column has continued to involve receiving recognition as a leader in its field and receiving widespread please.
Contribution to both corporate governance enhancements and improvement of overall industry standards.
The column tracked on highlighted kind of the hot topics, such as enterprise safety financial and credit risk productivity and more combining.
Combining our integrated reporting methods.
And the cover investigations, we published over 100 topics during the third quarter under the column gallery certain many views in total.
Moving onto as we know it cheater Youll ship.
New MTM platform that we launched early this year.
End of the third quarter, the number of all contracted craters, both domestic and overseas almost doubled.
We have produced hundreds of premium videos and generated over 10 million followers of course oldest third party platforms.
The subject cover on the platform range from global topics to board implemented categories, including finance wellness along.
In terms of the monetization of the MTN during the quarter all theaters in Japan showcase all video content marketing capability.
They demonstrated this capability by assuming a video showing light in Japan during the pandemic with the advertisers points embedded in the media.
Customized content helps advertisers tell their breath story with a focus on international expansion and development.
We're still in the process of it.
Banning all create a network extending our system to overseas social platforms. The global network will help us meet our clients' ever growing demand for overseas marketing.
Well, we continue to enrich our cause a library of locking the commercial value of our large user base on third party platforms.
It remains one of our priorities since the second quarter, we have carried out a more systematic approach towards operating on these platforms.
Including setting the tone and the style of each account and adjusting performance evaluation metrics.
Glad to be able to report that these efforts have achieved positive results as the number of followers on our sixth top at Meteor social accounts grew by hundreds of solvents in the third quarter.
No.
So part of what happens.
Hum.
<unk> has grown rapidly.
That has expanded the scope of its product reviews from electronic products to fast moving consumer goods.
We have also extended our advertiser focus from tech brands to board lifestyle related products, such as cosmetics and health and wellness brands.
This helped us to deepen our presence in sectors, where we were previously and they represented shifts.
Shifting to a more balanced climate client mix.
On a sequential basis, the total number of followers of our Phoenix lab column increased by 24%.
Revenue increased by 31, 5% in the third quarter.
Now, let's take a look at our iPhone App, we have vastly improved user interface and patiently to battery incorporate exclusive content from Phoenix TV.
Included more highlights video clips of classic Clinique to your point.
To cater to growing demand for short form videos and optimize the life forecast I'm playback functions to improve user experience.
In terms of common distributions within the App.
The recommendation algorithm.
Lacking and distributing content from high quality and popular we media accounts. This is necessarily a problem delivery complements our interest base distribution strategy.
The ctr and really compete REIT related news pushed have greatly improved.
We've also enhanced the quality of feedback our content by increasing the weight of reviews from core users in certain interest areas are reducing the weight of reviews from <unk> active users.
Following these adjustments the quality.
Beauty content was optimized on a call or click through rate was increased by 30%.
Finally, I'd like to share our progress exactly these diversification.
For online reading, we continue to make progress expanding monetization channels for premium IP counsel.
Last quarter, we reached agreements for two year strategic cooperation with bypass and authorized very snap arms two axis.
Audio books.
Meanwhile, we completed building all the input regarding team.
Putting team I've started over 30, new recordings building a pipeline for future operations.
E Commerce this quarter will continue to execute a deal.
Appreciate it merchandising strategy.
Culture and creativity on the one hand, we coffee with museums and preservers of National cultural heritage to ensure the conversation of gears cultural products.
The other hand, we launched the Phoenix Macerich column <unk> got you Jim on social and video platforms original competent theories on culture innovation that has attracted considerable traffic.
The health and wellness, we incorporated the theme in our product selections, we crafted hardware gourmet food clothes and accessories.
Finally regarding our real estate vertical we're anticipating a challenge challenging environments going forward of government regulations tightened on the risk of Evergrande group defaulting on that increase.
In response, we have proactively optimizing our client based structure and are focusing our real estate companies with relatively healthy balance sheets and strong shareholder backlogs.
Additionally, we are rigorously undertaking new business initiatives other than advertising along the industry value chain in order to create a new growth curve.
In summary, during the third quarter, we maintained our strategic focus on extending our client verticals.
<unk> international presence optimizing our products and growing our monetization capabilities.
We continue to face pressure as a result of the current macro uncertainties, we plan to remain prudent in evaluating business initiatives align our business with shifting industry dynamics and elevate our brand and process through consistent delivery of our regional economy.
With that I will now turn the call to our CFO, Adam we'll look to provide a closer look.
Into our quarterly financials.
Thank you Sean and thank you all for joining our conference call today.
Our total revenues in the third quarter of 2021, or RMB $244 six minute, representing a decrease of 19, 3% from RMB 203 minutes in the same period of last year.
I will now provide some additional color on our revenues during the third quarter of 2010 and what not.
Net advertising revenues in the third quarter of 2021, or RMB $216 six minute, representing a decrease of 23% from RMB $281 three minutes in the same period of last year.
Finally, due to the reduction in advertising spending of advertisers from certain industries in the period.
Payment services revenue in the third quarter of 2021 increased by 29% to RMB.
8 million.
From RMB 21, seven minutes in the same period of last year.
Revenues from paid content in the third quarter of 2021 increased by 69, 7% to RMB 15, one minute from RMB eight nine minutes in the same period of last year.
Mainly due to the increase.
Revenues from licensing fees related to audio books.
Revenues from E Commerce and the other in the third quarter of 2021 increased by 0.8% to RMB 12, nine minutes from RMB 12, eight minutes in the same period of 2020.
Loss from operations in the third quarter of 2021 was RMB $206 three minute compared to a loss from operations of RMB 28, four minutes in the same period of last year.
<unk> margin in the third quarter of 2021 was negative.
84, 3% compared to a negative nine 4% in the same period of last year.
As mentioned earlier, we continue to face increasing challenge from challenging industry landscape as.
As well as the macro economic slowdown in the third quarter.
This kind of wins or particularly strong in the real estate sector.
Where we incurred a RMB 144 minute bad debt expenses from certain better.
Non-GAAP loss from operations in the third quarter of 2021 was RMB $204 8 million compared to non-GAAP loss from operations of RMB $26 seven minutes in the same period of last year.
Non-GAAP operating margin in the third quarter of 2021 was inactive.
Three 7% compared to a negative eight eight.
8% in the same period of last year.
Loss from continuing operations attributable to iPhone.
The third quarter of 2020, what was RMB 134.0 million compared to a net loss from continuing operations attributable to iPhone of RMB 0.9 minutes in the same period of last year.
Non-GAAP net loss from continuing operations attributable to iPhone in the third quarter of 2021 was RMB $135 4 million compared to a non-GAAP net income from continuing operations attributable to iPhone of RMB, one three minutes in the same period last year.
<unk>.
Moving onto our balance sheet as of September 32021 to.
The companys cash and cash equivalents term deposits short term investments and restricted cash or RMB 150.
<unk> 57 billion or approximately U S dollar 243 five minutes.
Finally, I'd like to provide our business outlook for the fourth quarter of 2021.
Were forecasting total revenues to be between RMB, $236 1 million and RMB $276 one minute.
For net advertising revenues, we are forecasting between RMB, $209 7 million and RMB $234 seven minutes.
For paid service revenues, we are forecasting between RMB 16, four minutes in the RMB 21 four minutes.
While we remain committed to fostering our competitive differentiation in original content.
Such efforts may cost.
Volatility.
Our appropriate to margin in the near term.
We plan to enhance all of our business and you do it by proactively managing our expenses.
<unk>, our operations and the improving all of our revenue stream mix.
Leveraging our collaboration with <unk>.
We are convinced that we'll be able to navigate our way through adversity and increase shareholder value in the future.
This concludes the prepared portion of our call. We're now ready for questions. Operator. Please go ahead.
Thank you ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question.
On the telephone and Victor name to be announced.
<unk> tends to have a request please press the pound key.
Your first question comes from Chevron's Zhang.
80, 686 research. Please ask your question.
Okay.
Yeah. Thank you good morning management. Thank you for taking my question I Wonder if you could share some color on your outlook and also any major we're going to take two again the growth momentum. Thank you.
Hi, This is <unk> speaking.
Yeah.
Actually we do face many challenges with all of our brand advertising business.
Intense competition and all of our advertisers are being affected by macro environment and regulations as well.
This all have negative impact on us but.
We must have faced these challenges and sorry to review all of our business.
<unk> analyzed all of our strengths weakness as well as future opportunities.
We have done a thorough analysis on the drivers behind each part of our advertising revenue.
And is that a strategic goals and action plans accordingly.
All of our active users drive our programmatic advertising revenue.
We made a plan to increase the over Oh user retention and time spent.
Yep.
For all of our targeted user groups.
Upgrading of our app to allow more user interaction and increasing the richness of our content.
To continue to.
Investor efforts all of our products to increase its commercial value.
In terms of brand advertising, we need to focus on two part.
Increasing the number of clients.
Clients and increasing of our pricing premium.
On one hand, we are actively expanding our client.
Client base, we are upgrading our marketing resources to tailored to a wider.
Client base.
For example, like our children don't project works closely with.
With college.
Caters to advertisers.
Marketing younger market.
Or Ah think slab Columbia options hook helps us reach out to advertisers in the F. M. C. G sector through professional product reviews, we.
We use our expertise in product testing and the media influence to endorse and promote all of our other high service product.
Also our followers, we have millions of followers I'm CN and <unk>.
Third party platforms.
Provide advertisers with a wider selection of channels for marketing.
Increasingly our exposure through the internet.
Our overseas content creator network helps us to reach customers with.
Globalization needs.
Aside from.
Growing our calmer.
<unk> base.
We also continue to elevate our brand influence is key to our pricing premium or.
Our brand influence is.
Reflected in our original content and offline event, what are your well optimize our resources allocation.
To give more support to our trademarked content and events.
Uh huh.
By doing so we hope to maintain and enhance our brand awareness to guaranteed.
Our other highs.
Premiums.
Thank you Cheryl.
Thank you that's very helpful.
Your next question comes from at least a first Shanghai. Please ask a question.
Thank you operator and management for your time after this quarter, we thought that the company has built up large amounts of bad debts due to ever granted credit risk management.
Management could you further explain the impact of Evergrande on your business operations and also perhaps give us some color on what impact it will have on the company's future business. Thank you.
Thank you Ed.
You're right evergreens, a liquidity issue.
A big impact on us, let's called her a way of paying close attention to the situation.
And of course, we will continue to follow up on the overdue balance.
But all of our financials to be prudent.
We have fully written off our accounts receivable and a note receivable from Iva grants.
The impact on this quarters operating income was a loss of RMB.
RMB 140 minute.
So in terms of bad debt, we have always followed a re.
Relevant accounting standards and the.
We always work closely with our auditor.
To ensure we take a sufficient provision.
For the first half of the year.
Evergrande didn't show signs of a major default risk.
The third quarter, we started to see red flag in the market.
At the same time, they delayed to pay us on time.
Considering there is huge uncertainty why is our we can.
Collectively.
Comp we have to take a full provision in this quarter.
But the only other hand, so there will be no additional bad debt expense from ever granted on our financials in the future.
As to the impact on our future business.
Most of our work with Evergrande advertising under cost of part time more.
Gross margin was relatively good.
We had been receiving payments from them.
September last year.
<unk>.
Let's chunk of business means our.
Top and bottom line.
Might be negatively impacted in the future and we need to work extra hard to make it up.
Our team is now actively.
Expanding our client base.
Good credits and they are relatively healthy.
LNG.
Also we are actively exploring along the upstream and downstream of the real estate industry chain to take more.
<unk> opportunities.
I I hope I have answered your question.
And thank you for answering my question that was very helpful.
Thank you.
Yeah.
Yeah.
There are no further questions at this time I'd now like to hand, the conference back to Louis for closing remarks.
Alright. Thank you operator, we have come to the end of our Q&A session and our conference call. Please feel free to contact us. If you have any further questions. Thank you for joining us today on this call have a good day.