Q4 2021 Yalla Group Ltd Earnings Call
Good morning, and good evening, ladies and gentlemen, thank you for standing by for Yellow Group's Ltd fourth quarter and full year 2021 earnings conference call.
At this time, all participants on a listen only mode.
After management's prepared remarks, there'll be a question and answer session.
Today's conference call is being recorded now I'll turn the call over to your speaker host today, Ms. Carrie Zhao IR director of the company. Please go ahead ma'am.
Hello, everyone and welcome to your last fourth quarter and full year 2021 Congress call. We released our earnings earlier today and the release is now available on our IR website as well as on your Smile services before we continue. Please note that the discussion today will contain forward looking statements made under the safe Harbor provision.
The U S Private Securities Litigation Reform Act of 1995.
Looking statements involve inherent risks and uncertainties as such.
Future results may be materially different from the views expressed today further information regarding these and other risks and uncertainties is included in our earnings release, and our registration statements filed with SEC.
<unk> does not assume any obligation to update any forward looking statements, except as required by law.
Please also note that yellow earnings press release, and this conference call include a discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Yeah last press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.
Today, you will hear from Mr. Tao Yang, our chairman and Chief Executive Officer, who will provide an overview of our recent achievements and growth strategies. He will be followed by Mr. SAP. If my view of the company's President who will give a brief review of our recent development. This is Kevin who our Chief Financial Officer, Dan provide additional details on the company's <unk>.
Actual results and discuss our financial outlook. Following management's prepared remarks, we will open up the call to questions, Our Chief operating officer, Mr. Geoff <unk> will join the call for our Q&A session. If that's that I would now like to turn the call over to our chairman and Chief Executive Officer, Mr. Tao Yang. Please go ahead Sir.
Thank you Carrie and thank you everyone for joining our fourth quarter and full year 2021 earnings conference call.
One more important year for yellow.
Dedicated to our vision of fulfilling the involving a large social networking and entertainment needs of users. We can create the diversity of our business and services to new levels, we continued to expand with the area of development.
<unk> had a collaboration initiatives.
And the beauty scrubbing yellow ecosystem of seven products.
As our exciting pipeline of new innovative products and features to provide our users with additional choices and a better experience, while creating future revenue streams for our company.
Before we turn to our business updates.
First like to provide an update on the voluntary the small cell other securities.
Actions Lassila Tequila faced recently.
This lawsuit was filed against the Euro and the U S. In August 2021 based on <unk> assertion.
<unk> report.
Refute it either.
The company.
Yellow at worded it.
While U S greatest note the U S cold ordered the plaintiffs and their attorneys to file Madden compliant.
Including the factual basis supporting their obligations.
However, after several months of preparation time.
The lead.
Plaintiffs and their attorneys failed to file amended compliant, but deadlines set by the court.
That they elected not to pursue this matter anymore.
Any further and voluntary dismissed the lawsuit.
Generally the trap.
2020 to agreeing to bear their own.
Litigation costs.
Yet a great today.
Is most of the following day, the Coke approved it and terminated the lawsuit.
Voluntary to small cells. This card is rare in the industry.
The protest yeah that maintained that the low suite has no factual basis.
And this has now been further validated by the plaintiffs and their attorneys decision to dismiss the lawsuit after several months of investigation.
Now, let's take a closer look at some of our <unk>.
Our recent accomplishments.
As a pioneer in a large social networking and entertainment industry, we call it <unk>.
To expand our ecosystem with investments that broaden our product range and meet our users unique needs as we serve the Mena region.
Last quarter, we announced the Publishment of our holding subsidiary yellow game.
And we are happy to share that we have already made two investments in mid core to hardcore game projects.
Well, we have already identified two content providers with impressive team.
He will assist in localizing and distributing their games within the Mena region, leveraging our local knowhow to bring exciting new content to our users.
Empowered by our healthy cash flow and a strong cash balance. We're also looking beyond gaming to find diverse investment opportunities to flexibility.
And efficiently broaden our yellow ecosystem.
All of our effort to lead our lives.
So networking and entertainment industry do not stop at game distribution.
Also strive to dwell social networking products for the Mena markets.
And have made good progress with our product chat.
We recently released the yellow Chad Washington D C.
With new functions, including group video chatting and modules designed specifically for Arctic users.
With that is to rollout more localized functions in the near future. We strongly believe that in the digital area era, a dedicated I havent product with features tailored to meet local user preferences.
It's a fundamental requirement.
And we feel well.
The overriding responses at this point.
Ability to fulfill the critical need for Mena based on users.
It's never easy to develop a successful product, but it plays a significant draw in our vision to fulfill the involving a large social networking and entertainment needs.
We will continue to welcome user feedback.
Recall perfect in the details with upcoming iterations of yellow Chad.
And the way we reported last quarter.
Beyond yellow checks.
We have been expanding the boundaries of existing online social networking product with our work on <unk>. The first ever show metalworking designed for the Mena region.
La which means oasis in Arctic.
Important stat forwarding groups, whereas application exploration.
And we are thrilled to share that we build our man hours to life.
Even earlier than excepted with Ross' successful launch in both the <unk> and Google play.
March the 10th.
[noise] was interactive features providing users with greater freedom.
Freedom online as well as immersive online merge offline social experiences.
Involve users interact virtually with their own life <unk> short term says.
Well see middle Tennessee, enjoying real off from socialization through what's dragging advocacy, we see massive development potential in the metallurgy and we remain keen to continue exploring its possibilities to create.
Exaggerating interactive experiences for all of our users.
We also mentioned last quarter that we have officially kicked off our internal ESG program.
As a responsible corporate citizen.
<unk> is committed to the wealthy ESG.
Initiatives in EMEA region, and we believe.
Sustainable growth target.
Essential for yellow.
Our commodity.
And full.
All of our shareholders.
We have been communicating with internal and external stakeholders to gather feedback and refine our ESG guidelines and we're happy to update you that we will release, our first add new ESG report Larry Ellison.
Additionally.
Delighted to share with you that our president Mr. <unk> was named as needing personality of the year and the Tito.
The category, but am I right.
Thereabout is test my Rat magazine's 2021 communities, most creative business leaders for both.
ICU was older it along with the.
Illustrates group of 2022 middle East business leaders for his outstanding contributions to the digitalization of our entertainment and social networking innovation Congrats Debbie.
In conclusion, I'd like to reiterate that our vision and one that we feel passionate about is to build the most popular destination for online social networking and entertainment activities Sanmina, we hope to realize this vision.
Within the next 10 years.
For the past failures, we have been committed to promoting a healthy and orderly sector environment and.
In providing that people with better access to digital lives and devotion to this growth remains unchanged. Looking ahead, we will continue to closely watch minutes local culture chance and developed together ecosystem with a host of products and services tailored to their needs.
So core users.
We are well positioned to capture and capitalize on.
Potential growth opportunities in the Mena region and leverage our accident localization capabilities to generate long term sustainable returns for our shareholders now I will turn this call over teller printed Mr. Southeast meal for closer look at our recent development.
Hello, everyone. Thanks for joining us today and thank you very much about to mention anybody manav.
Manav magazines, leading batsman entity of the award and the digital Entertainment.
I'm most grateful to have received this recognition both for myself and on behalf of the entire area of law group. It reflects our tax rate.
Digital and tech.
And its impact on the region, the Mena entertainment and social networking market.
Well, they just got transferred to Mexico.
Proud to be a driver utilization and that's all.
As we advance the development of the digital World.
We will continue to develop our immersive digital social.
Payment ecosystem.
While our yogurt with even more memorable and.
Thanks Maria.
Yes.
Now, let's take a look to our operation.
As well as our products, we have put a monkey.
Directionally our growth momentum.
Throughout 2021, as we expanded our user community.
Our monetization capabilities we offer.
Pleased to report a solid full year of 2021 with the other groups total revenue increasing 100 coupon for picked in year over year to reach $231 million.
Furthermore, went through 'twenty, one was an important to you.
Paul do you love from our product.
As we continue to roll out the product they look to meet users' needs and support the therapy.
Does that cover.
Oh, what experian blanketing team implemented innovative customized campaign to promote products that deeply with the local culture.
As a result in the fourth quarter, our monthly active users increased eight 1% quarter over quarter, reaching 28 1 million.
The other groups Big users also increased to $8 4 million.
<unk> begun to launch more new products since the end of the last year.
We are proactively working to improve our product launch efficiency.
And while increasing the budget. We are also adjusting our marketing strategy by focusing on key region and groups and we'll add it keep growing new customer acquisition channels, such as offline advertising among others.
We are also happy to share that our game, including Europe .
The whole loan, okay, yellow and the recently launched <unk> automation.
Auto making impressive progress in quarter four yellow buses was ranked within the top 10 countries in terms of the number of downloads and the board game category and also ranked in the top 10 in terms of revenue and the board game category.
In Colombia, and Mexico to name just a few but our localization reports, we rolled out the chat room function and you'll love that Latin America, enabling not only voice chatting, but also video traffic to better suit South American user social habits and preferences with <unk>.
So hosted events to celebrate local holiday to encourage user engagement on the platform.
Yeah.
You've been a notable success.
Attracting but it's basically owned by more than 40% of our monthly active user.
One O one okay a lot of demand.
Downloaded app in the board game category and.
<unk> also ranked among the top 10 in terms of revenue into the board game category.
The first time in December 2020 111, okay.
Feedback from users and we have seen user thickness improve consistently.
Both average daily time spent with active user and user willingness to continue to grow.
Last but not least in December 2021.
Opex really launched a yellow or blue.
God game design cost of all the yoga.
<unk> has been recommended.
On the first fit within that category in the App store.
A powerful testament to our team's extensive experience and ability to develop highly desirable enjoyable product will like but our thought was that a bit.
Nick well that'd be good news.
<unk> group was romantically pizza and one of the time magazine's most popular issues.
One of the issue.
Our unique annual edition, featuring the Pearson group idea or object that has done the most to influence he had been during the year.
Is that fair.
Internet Unicorn to be lifted in the United States.
You look at the.
The company has been filled with many achievements.
We'll add talented.
And we are proud to have got it.
Adding all the application we will continue to build our visibility while communicating grown swiftly and sincerely with our users.
The public and all of our stakeholders to better convey our brokers.
Progression as well as the Linkedin and elevate your loved brands across the mean that either.
We reiterate every quarter.
But to become the number one online social networking and entertainment platform.
In the mean that either.
We didn't live up to and we will remain faithful to our core values.
Sizing our user embracing diversity and operating within a simple pragmatic bio meeting and enterprising approach as we work to achieve our goals with that I will now turn the call to our CFO .
Who will discuss our financial and operating results.
Thank you <unk> Hello, everyone. Thank you for joining us.
We sustained our steady financial performance in the fourth quarter of 2021, reflecting the strong execution of our users through subtracted, taking and the progress we achieved with our new initiatives.
Our first quarter revenue grew by 39, 7% year over year to $67 6 million U S dollars.
Well, our non-GAAP net income reached $27 6 million U S dollars recent groups reach of 18, 2% year over year.
Notably we also maintained our non-GAAP net margin of more than 40% in the fourth quarter at 48%, while simultaneously accelerating our new business initiatives, we are confident that.
<unk> to our product portfolio, we will create future growth opportunities by expanding our user base and the revenues, providing a solid foundation for long term profitability.
Now I'd like to walk you through our detailed financials for the first quarter of 2021.
Our revenues were 67 6 million U S stores in the fourth quarter of 2021.
39, 7% increased from $48 3 million U S dollars in the same period last year.
The increase was primarily driven by the broadening organic groups user base and in Hoffman to yellow groups modernization capabilities.
Our average <unk> increased by 71% from $16 4 million in the fourth quarter of 2020 to $28 1 million in the first quarter of 2021.
Now, let's look at our costs and expenses.
Cost of revenues.
$3 $9 million in the fourth quarter of 2021, compared with 18 4 million in the fourth quarter of 2020.
The increase was mainly driven by an increase in commission fees for the third party payment platform, resulting from our expanding business scale.
Partially offset by lower share based compensation expenses of one 6 million.
Recognized during the fourth quarter of 2021.
A 25.7% decreased from 2.2, meaning U S stores in the fourth quarter of 2020.
Excluding share based compensation expenses.
Cost of revenues as a percentage of our total revenues remained relatively stable at 33% in the fourth quarter of 2021, which compared with 33, 6% in the fourth quarter of 2020.
Our selling and marketing expenses were $13 3 million U S dollars in the fourth quarter of 2021, compared with $7 6 million in the same period last year.
The increase was mainly driven by her I don't want housing and marketing promotion expenses net by our continued user acquisition efforts and expanding our product portfolio.
Partially offset by a decrease in share based compensation expenses of $1 9 million during the fourth quarter of 2021.
<unk> 3.2 meeting in the fourth quarter of 2020.
Excluding share based compensation expenses.
And the marketing expenses as percentage of our total revenues increased from nine 2% in the fourth quarter of 2020% to 16.9% in the fourth quarter of 2801.
Our general and administrative expenses were eight 1 million in the fourth quarter of 2021, compared with $11 3 million in the same period last year.
Decrease was mainly driven by lower share based compensation expenses of 4.7 meeting recognized during the fourth quarter of 2021.
46, 4% decrease from eight eight meeting in the fourth quarter of 2020.
And partially offset by an increase in salaries and benefits for general and administrative staff.
This in turn was driven by an expansion of our general and administrative.
Stop.
Excluding share based compensation expenses.
General and administrative expenses as a percentage of total revenues remained relatively stable at five 1% in the fourth quarter of 2021, which compared with 4.5.
Five 4% in the fourth quarter of 2020.
Our technology and product development expenses were $3 nine meeting in the fourth quarter of 2021 compared with one six meeting in the same period last year. The increase was mainly driven by an increase in salaries and benefits for our R&D development staff.
<unk>, excluding share based compensation expenses technology and product development expenses as percentage of total revenues increased from two 9% in the fourth quarter of 2020, 253% in the same period of 2021.
As such our operating income was $18 3 million U S dollars in the fourth quarter of 2021, compared with operating income of $9 3 million in U S dollars in the same period last year.
<unk> share based compensation non-GAAP operating income in the fourth quarter of 2021 was $26 8 million and <unk> of 13, 2% improvement from same quarter last year.
Our income tax expense was 17 9 million U S dollars in the fourth quarter of 2021 comparator was compared with <unk>.
33 meeting U S dollars in the fourth quarter of 2020.
Moving to the bottom line. Our net income was 16 was $19 one meeting westar Rs in the fourth quarter of 2021.
Compared with net income of $9 million in the same period last year.
Excluding share based compensation expenses non-GAAP net income for the fourth quarter of 2021 was 27 6 million U S dollars and 18, 2% improvement year over year.
Next I would like to briefly go through our liquidity and capital resources.
As of December 31, 2021, we had cash and cash equivalents of three 351 5 million U S dollars.
As compared to cash and cash equivalents.
$326 3 million U S dollars as of September 32021.
This improvement demonstrates our commitment to continue straining swimming and the refining gala group's operations.
On May 21, 2021, we announced the 2021 share repurchase program as an update we haven't repurchased 418200 and the <unk>.
<unk> 89.
That's the positive shares.
Representing 418289 class a ordinary shares from the open market with cash for an aggregate amount up approximately U S $3 1 million in the.
The fourth quarter of 2021.
Well, our 2021 full year financial results. Please refer to our earnings press release for further details.
In the first quarter of 2022, we expect our revenues to be between $66 million.
Two nine.
Meaning U S dollars.
The above outlook is based on the current market conditions and reflects the company's management's current and preliminary estimates of marketing and operating conditions and customer demand, which are all subject to change.
This concludes our prepared remarks for today.
Operator, we are now ready to take questions.
Yeah.
We will now begin the question and answer session.
To ask a question you May press star.
Star then one on your telephone keypad.
If you're using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
For the benefit of all participants in today's call. If you wish to ask a question to management and Chinese. Please immediately repeat your question in English.
Our first question comes from.
Young.
Hi, Tom International You May now go ahead.
Hey, Hello, Thanks management for taking my question actually I got three questions number one could you. Please share more color on the impact of the current geopolitical conflicts between.
Between Russia, and Ukraine number two could you elaborate about your new product pipeline and that your expectations for the new <unk> user front and on the revenue problems.
Last two items are Boston launching could you answer that.
Understanding the margin trend going forwards its patient in the next year.
Our spending plan for this year. Thank you.
Hi, Good morning, Julien I'll take the first two questions and maybe the third one to Karen.
Last question.
The geopolitical.
Co and macro situation.
From micro perspective, if youre talking about.
The confidence.
And we will certainly affect every economy in the world. Obviously, it will also echo rate market.
The museum.
At the same time.
So the fact for example, the rise of energy practice.
Have the Internet company when we can.
Only passively accept the changes and make.
At the enterprise management level.
According to the situation at the time.
At present.
The online social networking and entertainment community the impact on US is limited.
And so for the question number two for the product pipeline.
No.
I could give you a brief recap of our yellow ecosystem, we have our flagship applications yellow and yet a leader as well as our.
Sure three casual games.
Pollute why do I, okay, yellow and yellow pages.
III casual game products are now live and are undergoing Washington iterations, but they are still in the user accumulation phase.
Yes, they're actually contributing to revenue.
The revenue will be our focus in the next phase.
Turning to our social apps, we have our <unk> product for which we launched version 3.0 0.3, but we will continue to work on productivity duration for your other chat and we expect to introduce and that's where Shane in Q2. Furthermore, we also recently launched our better worse.
Sure.
We hope our users will enjoy this more interactive way of utilizing it would take at least several months to around a year to test, but our users love it cannot.
That steps out on our progress with our social apps.
One more thing to note.
We also expect to distribute to mid core to hardcore games in the Mena.
The first one is a <unk> game and.
And we launch as soon as May as soon as we have updates.
What we have just mentioned, we will share that information with our investors.
I'll leave the.
The question number three for Cara.
Okay. Thank you Elaine and out the margin outlook question.
Demonstrate from the following Ngos.
Actually you can see from our past financial performance, we have been doing excellent job when optimization gas monetization model and maintaining our strong monetization capabilities.
For this year, we believe that our two flagship products will remain.
A strong line of leasing capability and provide solid cash flow support for the group's development.
So as I just mentioned.
We will be promoting and marketing chassis several new products this year.
Expenses in certain areas, such as R&D investment branding.
Continuing product portfolio expansion and talent recruitment among others, we are certainly put pressure.
Our profit this year.
So are we but to wait an hour to expect that the impact to be where it's particularly significant.
Our net margin in 2021 was over 45% and we will expect that to Eastman I. Just listed we all have only a single digit percentage downward.
Impact our net margin.
This impact is entirely within our expectations and it's something that we have to face.
To achieve further growth.
Across the other spaces.
A bigger move business needs to drive so we Don.
<unk>.
About that however, we that side I believe that income.
When you compare with our peers.
We are still maintaining our net margin actually very competitive level hope I can answer your question. Thank you.
Thank you.
Very helpful.
Our next question comes from Shaky J C. ICC you May now go ahead.
Hi, Thanks management for taking my question.
Grant's on another steady and strong quarter I may have four questions and I'll ask them one by one the first one is.
Where does the worse product, while huston in terms of its development phase.
<unk> share more about its functions, our promotion plans and especially its relationship with the yellow app.
Hi, Ashish. Thank you for your question. This is Jeff So as we mentioned in our remarks, we just launched our <unk> product Guajira are brand new independent yellow on the wall hard two different complete suite separate apps, we developed wahhab based on <unk>.
Understanding their local users want a more interactive social approach a more intuitive interface and the possibility of personalized expression. The apps. Our next step is to operate and promote or high independently. So that users have a chance to further validate the product.
In terms of our promotional strategy, we will continue to utilize the same traffic acquisition methods as we have in the past. In addition, we will increase our investment in branding based on what's unique product features.
<unk>.
Thank you Jeff.
And my second question is.
How comprehensive or yellow chat functions.
Our U R major points for its further development and promotion in your home.
<unk> system.
Hi, Good morning, Jason This is Terry.
Have a sort of question.
We have spent a lot of time developing our chat product systems and improving its stability I believe yellow check can now serve users basic.
Social needs in terms of interacting with each other timely and colleagues.
Yeah. That's you have basic chat functions are already complete.
And we will continue to improve other user friendly features.
In future iterations, we plan to rollout additional functions tailored to our culture and designed to fulfill Arabic users unique needs.
We may also add more entertainment content to you on that yet.
We expect to introduce our next worsening in Q2 of this year and we look forward to sharing more updates on our progress with our investors.
Thank you Shane.
Thank you.
And my third question is.
The group's user growth slows down.
Will there be any changes to the strategy of yellow and yellow ludo.
What role should we expect them to play in your future Department.
Hi, <unk>. This is a very good question actually as you can see that.
Our EMEA use grew very rapidly last year at around 10% to 15% quarter over quarter, but as our user base gets larger we believe that 8% to 10% quarter over quarter Mou growth. This year is a relatively reasonable number yellow and noodle. We continue to be important parts of our ecosystem as they have already been tested and validated.
Both the local market and time, we believe these two products have a long term long lifecycle with enduring vitality plenty of potential for further growth, we anticipate that that user basis, we continue to expense and they will maintain their leading positions in the industry. Thank you Susan.
Sure and the last question is how should we expect the trend of gross margin as well as more new social and game products. Thank you.
Thank you Keith.
Our current product mix, including highly depreciated put that product targeting different regions at the same time.
<unk> played.
<unk> in our deep into our product ecosystem.
Sample yellow check is an important to help enlarge our user base well mid core to how core games will be more prophage, driven therefore, no monetization models of different products are totally.
Hmm.
Totally different at this point it is still difficult to judge the trend of growth.
Profit and the net profit margin in the development of new products.
If you want to analyze our cost restructuring.
Historically that number has been very stable with commissions for the third party payment channels, such as Apple and Google, which accounting for the largest of propulsion and technical service fees et cetera.
Generally speaking our quarterly gross profit margin remains above 65%.
I think we can maintain this level with the addition of new products.
As for net margin.
May influences, our sales and marketing.
And.
R&D expenses as we just mentioned these are related to tailor, our marketing strategies and the production metrics.
Can be very flexible.
Thank you.
Thank you that will be all thank you.
Thank you.
Our next question comes from Cai von <unk> with CIP IC you May now go ahead.
Okay. Thank you for taking my question and I have two questions. My first is about our user growth.
Our strong finish and user groups and turning to the two more positive or not.
The next question in the posture of our monetization so can management share that's monetization temperature.
Our new program.
And so where they generate meaningful revenue in China than there too. Thanks.
Hi, guys. This is Jeff I'll be answering your first question.
So for the past quarters, we have proved our strong capabilities and expanding our user base and every quarter, we were able to maintain a growth of around 10% of <unk> and.
And according to what we have observed at the beginning of 2022, we saw a similar trend as we walk into Q1 in terms of market capacity. Our two flagship products have not yet reached their user acquisition buildings and we will continue to invest to further test user potential in those core areas.
From a product perspective, we plan to launch multiple new products. We will also dynamically adjust our marketing direction and budgets based on product performance to maximize user growth.
We hope to create a more active larger yellow community as a group level and build more valuable user engagement.
As traffic cost continues to increase worldwide and given that we have a growing number of products to launch in promo. This year, we expect to increase our sales and marketing budget. We are also adjusting our marketing strategy to improve efficiency when we expand our marketing investment in Gulf countries to better penetrate the users here and at the same time, we have.
Be safe, each and every opportunity to gain users and Pan Arab read into this will help us improve the efficiency of our <unk>.
User acquisition plan. Furthermore, in addition to buying traffic directly from Facebook and Google were also exploring new sales and marketing channels, which may help us to reduce our marketing expenses in the future.
Well, increasing traffic cost is the issue for all companies.
But as a leader in.
Each store each net market.
<unk> enjoys the first mover advantages.
And we believe that as we continue to optimize our marketing strategy, we will be able to solidify and strengthen our leading position in the market. Thank you.
Hi, good morning.
For second question ill be answering.
For all of our New Entertainment had sure shown.
So networking apps as well as our community based BOE, a boat and car games. So there is always a user accumulation stage, we will focus more on user growth and community operations. This year.
Utilization is something we will consider during the next stage.
If our meat and hardcore games perform well in their targeted countries than we believe they will be able to generate revenue relatively quickly this year.
Given the monetization pattern of meat and hardcore games.
So I hope I can offer you question good.
Thank you.
Thank you that's very helpful.
Hello.
Our last question comes from Zaman with Southwest you May now go ahead.
Okay.
Okay. Thank you. Thanks management for taking my question and also for the outstanding growth and performance I have two questions for the product about the yellow and the other growth peaks.
This is the first question.
Policy you are asking me don't pay them for coming along and your plans for driving traffic from one business to another.
And.
The question to you.
We are pleased to share updates Oh, yes active users daily active users average time spent how often do you try to yours is open at depth.
Thank you.
Thank you Jamie.
That's two questions in terms of our the first question is about in the media platform in terms of all of our <unk> platform. We now have various products we have.
It's different teams specializing in there is technical solutions et cetera.
To serve.
All the products teams in this way, we're able to improve the efficiency with which we develop new products.
At the same time sharing their home all the different.
<unk> helps us learn more effectively about our users.
Of course, we don't want to compromise on flex flexibility different products have their own characteristics.
Sometimes the shared.
Well it may not be able to design the best solution for each individual app.
So we evaluate the situation and decide whether or not the Mira platform is the most simple.
Means to develop a certain aspect of any product in.
In addition, we have also noticed that some internet companies.
Has it started to move their companies media platform we.
We have always been came to follow the industry's best and most scientific practices and aim to continue to optimize yes.
Organizational structure.
Regarding driving traffic from one to another.
Yes, we have been planning this for a long time.
We have already completed the preparation work within our different apps.
Large and promote our new products. This year, you'll be you'll start to see for example, enterprise and yell alluded to our new <unk> game for or from yellow to our met our social app.
This is important work to boost synergies tomorrow, the yellow ecosystem.
And we will definitely be leveraging the existing user communities that we have built over the past failures.
And for the for the second question about the daily average comp stat.
Sure.
The time of our IPO, we shared that the daily average time spend.
The other App was four to five hours and now.
It has exceeded five hours.
So we think that this is already at a very impressive level.
And even though is there are only 24 hours a day, we don't want to give you.
Aggressive expectation on the further growth of this metric.
And in terms of your question regarding <unk>, Chad, we will share those metrics.
With you after we officially launched <unk> chat live here.
As the magic.
At that time may be more meaningful and can be a veterinary reference for you.
Thank you.
Thank you Jamie.
Thank you.
Okay.
Yeah.
As there are no further questions now I'd like to turn the call back over to management for closing remarks.
Thank you once again for joining US today, we look forward to speaking with you in the next quarter. If you have any further questions. Please feel free to contact us.
Investor Relations through the contact information provided on our website or the PSA group Investor Relations. Thank you.
This concludes this conference call you May now disconnect. Your line. Thank you.