Q4 2021 Phoenix New Media Ltd Earnings Call
Good day, and thank you for standing by.
Phoenix, New media fourth quarter 2021 earnings call.
At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone. Please be advised that today's conference is being recorded.
You require any further assistance. Please press star zero I would now like to hand, the call over to your first speaker today, Mr. <unk> <unk> from IR team. Please go ahead.
Thank you operator, welcome to Phoenix, New Media fourth quarter 2021 earnings Conference call I'm joined here by our Chief Executive Officer, and Mr. Sean <unk>, and our Chief Financial Officer and Mr. Xu.
Today's call management will first provide a review of the quarterly results and then conduct a Q&A session.
The fourth quarter 2021 financial results and webcast of this conference call are available on our website IR Dot iPhone dot com.
A replay of this call will be available.
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.
That I would like to turn the call over to Mr. Sean <unk> our CEO .
Thank you Melissa Hello, everyone and thank you for joining our call today in the face of growth position and macro uncertainties.
The full brunt of the media space sense.
Two our strong media DNA and our mission to provide high quality and professional news conference.
In the past few weeks, the Russia, Ukraine conflict.
Captured the public's attention.
<unk> was the first online media platform launch full coverage of the conflict.
Our multi nut national coverage of the crisis.
Listing of frontline updates formal network of Phoenix TV.
Journalists.
Discussions.
Analysis from experts International relations video clips from content creators, new clean ongoing U S lives screening them more.
Attracted an average of 50 million daily views across the Internet.
Besides breaking news coverage, we continue to emphasize the uniqueness of our content as it has all user experience.
We remain committed to cultivating new business initiatives.
Banning all revenue streams.
We successfully held a number of high profile signature event in the fourth quarter to expand our brand influence.
Restrictions and challenges related recent Colby authors.
Our ability to execute given the difficult situations.
Result, about effective teamwork dedication and creativity.
Several of these events include all iPhone Food festival together with the Gordon.
Chinese restaurant Guy.
Perhaps Congress Hardy Hardy Hardy, our youth football team.
What's happening in China.
IPhone Fashion Award Gala Walsh on for Jeff.
And the finance economics plummet tightening complaint.
<unk> upheld our high standards.
Even scale attendee.
<unk> experience in public ridge.
These events will be success meeting our demanding client.
Flying marketing needs.
A new historical record in.
Commercialization of our events.
<unk> exposure.
In addition to the signature events, we launched an innovative program called inside business schools.
You can buy the colors business leaders and nearly a thousand students from leading MBA programs to visit corporate campus of our clients. The program address topics such as corporate development industry transformation and tax advances.
A series of presentations at round table discussions.
The MBA students gain access to business case studies.
Yes.
We've provided our clients with position.
Marketing solutions to help them attract high net worth customers.
The system generating product sales.
This event is just one of many ways, we are able to monetize our media brand value.
Broad business network and resources.
While maintaining.
Offline event presence will continue to evolve our original mattress unit.
Fourth quarter, we rapidly advance our added towards segments.
National News column Trent culture.
Publish in that commentary and daily headlines rigs.
Regarding international relations issues and events, having optimized the content production process, we saw substantial improvements in both the quality and quantity of articles published for the call.
Performance indicators of the column green views click through rates ranked among the top tier news media outlet.
The column is receiving widespread information from journalists inflows.
<unk>.
And the academic community from leading Chinese universities.
Also.
Our efforts with other people.
We distributed globally.
International markets, we believe our brand.
Recognition, both at home and abroad.
Meanwhile.
Commentary column.
Yes.
<unk> is positioned to provide our audience with a deeper insight and understanding of today's complex world by covering modest issues on current events with vivid.
Imagery intellectual reasoning and emotional emphasis.
In the fourth quarter, the columns reported or what range of social concerns, including celebrity social ethics public administration issues women's rights issues and evolution of taxation laws.
Since its launch the columns page views user comes a new follower comps have all been caused that decline with an increasing pool.
All these articles exceeding.
100000 page views as a benchmark.
For virtual for legal popularity.
Roger on Wechat.
IP content front, we successfully.
Validated the monetization capability of your achievements.
Sure.
Zero debt.
That combined large scale field production with Pep talks about presentations.
The series featured several super construction projects and reduced behind the scenes challenges faced by the construction teams and creativity and skills that may lead project probable.
Production seamlessly aligning its theme presentations of transforming challenges into opportunities with our advertisers breath image maximizing content distributions at reach.
In the fourth quarter your achievements reached 22 million views through social media platforms.
Okay.
Besides mutual series IP production also development.
Live screen show, focusing our interviews and discussions of trending cultural topics.
We can buy these guests such as best selling authors and production teams popular drama.
Movies into our duty to talk about their work.
The show acquired a highly engaged user base.
Of these artistic works are keen to interact with our gas through the medium of live streaming.
The show is livestream, Oh iPhone APB.
As well as other social media platforms, spreading virally on generating online discussion.
Through a combination of.
Our offline events and online content, we have formed a positive feedback.
Loop, which allows both parts of our business to jointly create value.
It is a high quality multichannel experience to all our customers.
On the product side.
APB continues to power distribution.
Our online content and offline events.
In the quarter, we made several updates to further improve the user experience.
For example will improve.
Offer them to enhance distribution efficiency, while short medium concepts, which saw measured increase user reach penetration rate. Please.
Click through rates.
Compared to last quarter, our short video contents average viewing time increased by 14% and penetration rate grew by over 10% in the fourth quarter of 2021.
Meanwhile, with further enhancing the interactive features of our APB, including borrowers live chat, which are directly integrated with trending topics.
But encouraging our users to participate in tax.
All of these discussions after viewing the topic of interest.
More time, ABP and continue to explore it.
It creates a sense of community that increase our user engagement and user stickiness.
All of our hard work and constant creation and improving our technology has laid the foundation for us to make solid progress in diversifying our revenue.
In online reading segment will continue to monetize our original content IP, we completed the sale of the movies wise.
Overtime.
See who you are.
One of our original reality seen works online fiction.
At the end of December 2021, we started laying the groundwork to export online literature content to overseas markets.
As of today, we have built.
Library of English titles in one hundreds.
It can be monetized.
That's what e-commerce , we continue to develop products for our private label brand in the health and wellness segments.
In the fourth quarter of 2021 will launch.
Nutritious low.
Calorie meal replacements that theory.
Featuring popular Super food ingredients.
Making the most of the traffic from third party live streaming platforms.
Vertical channels, we drove this product into the top selling.
Category of Merrill Lynch.
Our culture and create empty with partner with IP licensing firms to green carefully crafted art and culture to objects from some of the worlds, leading museums and galleries to our E Commerce platform.
Going forward, we plan to utilize the natural synergies.
Between E Commerce, and accountants, such a healthy fashion.
<unk> developed a culture live streaming to integrate teams with merchandise selection and capitalize our user traffic.
Finally.
But definitely adapted our real estate vertical so the challenging macro environment, despite the market downturn.
We continue to exercise our media influence in the rural sector to deliver original content, a launch, especially with that.
We launched a new column focusing on the industry's movers and shakers by.
We held our industry summit in the fourth quarter.
Feature topics.
Urban renew land supply.
Sector debt levels, and the governance suite Redline policy, what real estate developers.
In conjunction with events, we also published industry White papers.
Specifically regarding ESG development and industry dynamics, and the real estate sector.
On the other hand, our real estate team remained active exploring new business opportunities during the fourth quarter.
Dressing customer pain points, and marketing needs well applying new monetization models beyond traditional advertising.
As a result, we achieved new breakthroughs in customer acquisition and improve our revenue mix.
To summarize we demonstrated the vitality resilience during challenging times in the fourth quarter.
As we continue to host high profile signature events create original and exclusive content.
Our content distribution technology.
More new business initiatives during the fourth quarter.
We continue to monitor and plan for external challenges as we execute our strategy of revenue diversification and business growth.
We started 2022, which renewed commitment to overcome near term challenges and build a thriving business rapidly changing macro environment.
With that I will turn the call to our CFO .
To provide a closer look into our quarterly financials.
Thank you Sean and thank you all for joining our conference call today.
Total revenues in the first quarter of 2010.
Or RMB $702 nine minutes as compared to RMB $362 two minutes in the same period of last year meetings.
Beating the high end of our previously announced guidance range.
To provide some additional color on our revenues net advertising revenues in the first quarter of 2021 or RMB $279 two minutes.
Compared to RMB $336 seven minutes in the same period of last year.
Decrease was mainly due to the reduction in advertising spending of advertisers in certain industries.
In terms of the industry wide competition and negative impact of the COVID-19 outbreak in certain regions in China in the fourth quarter.
Services revenues in the fourth quarter of 2021, or RMB $23 seven minutes compared to RMB 25, five minutes in the same period of last year.
Revenues from paid content in the fourth quarter of 2021, or RMB, seven 9 million compared to RMB 11, two minutes into same period of last year, mainly due to the reduction in content spending of certain customers.
Revenues from E Commerce, and others in the first quarter of 2021 increased by 10, 5% to RMB 15, eight minutes from RMB 14, three minutes in the same period of 2020.
Loss from operations in the first quarter of 2020, what was RMB 53 minutes compared to loss from operations of RMB 28, eight minutes in the same period of last year.
Operating margin in the fourth quarter of 2021 was negative 17, 5%.
Compared to negative 8% in the same period of last year.
non-GAAP loss from operations in the fourth quarter of 2021 was RMB 51 minutes compared to non-GAAP loss from operations of.
RMB three points three minute.
Same period of last year.
non-GAAP operating margin in the fourth quarter of 2021 was negative 16, 8% compared to a negative <unk>, 9% in the same period of last year.
Net loss from continuing operations attributable to iPhone in the first quarter of 2021 was RMB $35 4 million compared to a net income of RMB $434 eight minutes in the same period of last year.
non-GAAP net loss from continuing operations attributable to iPhone in the fourth quarter of 2021.
RMB $33 2 million compared to RMB eight two minutes in the same period of last year.
Moving onto our balance sheet.
December 31 2021.
The company's cash cash equivalents term deposits short term investments and restricted cash or RMB 1.51 billion.
Approximately U S dollar 200 series seven five minutes.
Finally, I'd like to provide our outlook for the first quarter of 2022.
Forecasting total revenues to be between RMB 172 minutes and RMB 197 minutes.
For net advertising revenues.
Forecasting between RMB 158, five minutes and RMB $178 5 million.
For paid services revenues, we are forecasting between RMB 13, 5 million and RMB 18 5 million.
In summary, well the uncertainty from the present macro conditions and the changing industry landscape persist.
Optimistic that green chutes well emerge.
We are confident in all of our content creation and distribution capabilities and believe that this competitive differentiators well sharpen our market position in the face of ongoing industry wide competition as we go forward looking.
Looking ahead, while remaining prudent in our investment.
Well investigate new monetization strategies and to improve our revenue stream mix.
Convinced that we're on the path to deliver shareholder returns in the long run.
This concludes the prepared portion of our call.
Now ready for questions.
Operator, Please go ahead.
Thank you as a reminder to ask a question you will need to press star one on your telephone can withdraw your question please protocol or hash key.
By while we compile the Q&A roster.
The next question comes from July all share route Chung from 86 research. Please go ahead.
Okay.
Good morning management. Thank you for taking my question.
Regarding.
We know that.
Yeah, I see the market.
I'm wondering do you also observed the.
Countering some macro more regulation.
I mean, we're as busy as well.
And is there anything we can do to offset the impact. Thank you.
Hi, sure this.
This is Edward.
I will answer this question.
Actually no.
Brand advertising business revenues did face challenges.
Due to the market downturn.
The first quarter.
2021.
In some industries, such as autos and the real estate clients are very cautious with their advertising spending.
Also we urinate hotter more offline activities and events in the first quarter.
Which were affected by the nationwide COVID-19, all the brakes.
Even though we overcame many challenges and success.
Successfully how the our signature.
Events, such as the finance and economic summit and for the festival, we still have some projects being delayed or even canceled. Unfortunately.
In 'twenty to 'twenty two.
I think at the macro environment is still uncertain. However, you can wait and take a look at it as a trend of marketing demand.
Advertisers pay more attention to.
Depreciation marketing this is because mobile internet traffic growth.
Has picked.
Now advertisers folks more comprehensive and <unk>.
Content then.
Fragmenting the content and the short term attention.
So we will continue to strengthen our differentiation.
I think in the following ways.
First we will continue to enhance our media branded value.
Sue news coverage signature events or in general content and large scale events planning.
We will integrate and distribute content through our live streaming video and.
Other forms of media.
So we can create unique.
Market marketing resources for our clients.
Also.
We have a unique strengths in providing international marketing solutions.
A variety of resources, the creator of our seen serious things Global Observer group.
Either professional generally located around the award overseas Influencers.
They have successfully created a video content to help domestic either run hazards to promote our brands globally.
However, international assumed IP, such as the high end of Forum.
The dialogue with the award.
You should get too hot is widely endorsed by.
Our advertisers we are also building our influence and distribution capabilities abroad by.
Growing our presence on the overseas social media platforms.
Also our collaboration with <unk> TV.
We're also allow us to integrate both sides, marking and advertiser resources and complement each other well.
Enable us to create a total marching solution, let's covers internet and TV audiences.
Together, we can further reach and attract new clients, such as central and the state owned enterprises.
We hope to create.
Greater value for our clients and boosted our monetization efficiency.
<unk> effort.
Thank you.
Thank you that's very helpful.
Alright, Thank you your questions.
Next question comes from the line of at least 10 of Shanghai. Please go ahead.
I have two questions on my end.
First one is our company has mentioned diverse revenue streams over the past few quarters. Many times. So could you. Please talk about the company okay.
With this section segment.
Yes.
Hi.
I will take this one.
Actually all of our online reading and E Commerce revenues.
The Pos grew in 2021.
For online reading, we have organized our team and recruit more experienced talent.
Also improved as a core competency of our IP content and created various monetization channels.
Including recording and selling audio books producing and.
Distributing short form video service and selling a film rights. We expect revenues from this segment to continue to grow in the future.
In terms of our reading App.
Check new users by.
<unk> three high quality E books.
And Ah <unk> revenues through advertising.
We expect revenue to scale up in the next few years.
For our.
E Commerce business, we focus on positioning.
Yes.
The go to platform for a culture in the house product leveraging third party PE firms such as ticket Hawk and partial.
Our private label brand has achieved meaningful growth in <unk> on these third party platforms.
I think as we continue to create more original content our floors and.
Useless.
Third party social platforms also grew.
We are still working on how to churn of our increasing number of followers into our e-commerce users.
Users, we hope this growing traffic can boost our e-commerce business growth in future.
I hope I have answered your question.
Yes. Thank you very much. So my next question is by the end of the year 2021 the company still had about a one 5 billion RMB and cash returns so.
Does the company have any investment plans for these cash in the future.
Hi, This is Rob let me take your question.
We're very fortunate to have huge amount of cash.
Uh huh.
It's about 1.5 billion RMB Youre right.
Uh huh.
I think we're lucky to have this amount of cash.
Uh huh.
Especially given the current market conditions is a very volatile market, we experienced panic selling last night.
This amount of cash we will make us more ready.
Independent and stronger for future challenge.
We enable us to navigate the temperature of the water.
Simply because we have this amount of cash.
Not necessarily mean that we could we should be more aggressive than that.
I think at that.
At the current stage, we need to be more prudent.
More conservative.
And then it would.
Before we figure out what's happening.
Before we.
Clearly analytes.
The concrete impact.
These uncertainties will have.
Or business or financial perspective.
So in the near future I think we will be more.
Yeah.
Cautious.
Investments.
Yeah.
That's it.
Thank you.
Okay.
Thank you for the question.
No more questions from the line I'd like to hand, the call back to the management for closing.
Thank you operator, they have come to the end of our Q&A session and our conference call.
You need to contact us if you have any further questions. Thank you for joining us today on this call have a good day.
This concludes today's conference call. Thank you for participating you may now disconnect.
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Good day, and thank you for standing by him well Phoenix.
Phoenix, New media fourth quarter 2021 earnings call.
At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone.
Be advised that today's conference is being recorded if you require any further assistance. Please press star zero I would now like to hand, the call over to your first speaker today Mr. <unk>.
<unk> from IR team. Please go ahead.
Thank you operator, welcome to Phoenix, New Media fourth quarter 2021 earnings Conference call I'm joined here by our Chief Executive Officer, Mr. Sean <unk>, and our Chief Financial Officer, Mr. Atwood do.
Today's call management will first provide an overview of the quarterly results and then conduct a Q&A session.
The fourth quarter of 2021 financial results and webcast of this conference call are available on our website at <unk> Dot iPhone Dot com.
Play out this 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. Sean deal RFP L.
Thank you Melissa Hello, everyone and thank you for joining our call today.
In the face of growing competition in macro uncertainties will stay at the forefront of the media space. Thanks to our strong media DNA and our mission to provide high quality and professional news content.
During the past few weeks, the Russia, Ukraine conflict has captured the public's attention.
Starting in mid February with the first online media platform to launch full coverage of the conflict.
Since then our multi dimensional coverage of the crisis.
Consisting of frontline updates from our network of Phoenix TV.
Journalists.
Discussions and analysis from experts International relations video clips from content creators and new clean ongoing matters live screening and more.
Attracted an average of 50 million daily views across the Internet.
Besides breaking news coverage, we continue to emphasize the uniqueness of our content.
As our user experience.
We remain committed to cultivating new business initiatives and expanding our revenue streams.
We successfully held a number of high profile signature events in the fourth quarter to expand our brand influence despite restrictions and challenges related to recent Kobe partners.
Our ability to execute given a difficult situation as a result of our effective teamwork dedication and creativity.
Several of these events include all iPhone, whose festival together with the Gordon that include Chinese restaurant Guy.
Perhaps congress.
Alright.
Sure sure.
Talking with Huntington.
Oh, iPhone Fashion Award Gala Bosch I'm sure Jim can jump in.
And the finance economics summit tightening from quake.
We upheld our high standards.
Even skill attendee attendee experience on par.
Rich.
These events were big success meeting our demanding client.
Fly marketing needs.
Seven new historical record in commercialization of all events and brand exposure.
In addition to these signature events, we launched an innovative program called inside business schools.
Yeah.
We can buy these scholars bids in theaters and nearly a thousand students from leading MBA programs to visit corporate campus of our clients.
Program address topics, such as corporate development industry transformation and tax advances.
The presentations at round table discussions.
The MBA students gain access to business taste studies.
Yes.
The best fleet, providing our clients with physician marketing solutions to help them attract high net worth customers.
Hmm generating product sales.
This event is just one of many ways, we are able to monetize our media brand value.
On a broad business network and resources.
Well it maintaining at.
Offline event presence will continue to involve all original matrix.
During the fourth quarter, we rapidly advance our added towards segments.
International News column trap.
Yeah.
Published in that commentary and daily headlines.
Regarding international relations issues and events.
<unk> optimized the content production process, we saw substantial improvements in both the quality and quantity of articles published for the call.
The performance indicators of the column.
Green views on click through rates.
Among the top tier news media outlet.
The column is receiving widespread information from journalists inflows influencers.
And the academic community prompt leading Chinese universities.
So sue.
Our efforts with other people.
We distributed globally.
International markets.
We believe our brand recognition both at home and abroad.
Meanwhile.
That was commentary column.
Yeah.
Sure.
Positioned to provide our audience with a deeper insight and understanding of today's complex world by covering modest issues at current events with vivid.
Imagery intellectual reasoning and emotional emphasis.
During the fourth quarter, the columns reported a wide range of social concerns, including celebrity social ethics.
Administration issues women's rights issues and evolution of taxation laws.
Since its launch the columns page views user comes a new follower comps have all been odd that decline with an increasing.
Bobby articles exceeding.
100000 page views a benchmark.
For virtual for legal popularity.
Roger on Wechat.
IP content front, we successfully.
Validated the monetization capability of your achievements.
Sure.
Do you see a risk that.
That combined large scale field production with Pep talks about presentations.
The series featured several super construction projects and reviewed behind the scenes challenges faced by the construction teams and creativity and skills that may lead product possible.
Protection seamlessly aligning its theme presentations of transforming challenges into opportunities without advertises breadth image maximizing competent distributions at reach.
In the fourth quarter your achievements reached 22 minute views through social media platforms.
Okay.
Besides <unk>, our IP production also development.
Live screen show focusing on interviews and discussions are trending cultural topics.
We can buy these guests such as best selling authors and production teams popular drama.
Louise.
To talk about their work.
The show acquire a highly engaged user base.
Fans of these artistic works are keen to interact with our guests soon a median of live streaming.
The show is livestream, Oh iPhone APB.
As well as other social media platforms, spreading virally on generating online discussion.
Yeah.
Through a combination of.
Our offline events and online content, we have formed a positive feedback.
Luke which allows both parts of our business to jointly create value.
It does offer a high quality multi channel experience to all our customers.
On the product side.
APB continues to power distribution.
All online conference on offline events.
During the quarter, we made several updates to further improve the user experience.
For example, we'll improve our operation to enhance distribution efficiency, while short medium concepts, which saw metric increased user reach penetration of it. Please.
Click through rates.
Compared to last quarter, our short video contents average viewing time increased by 14% and penetration rate grew by over 10% in the fourth quarter of 2021.
Meanwhile, with further enhancing the interactive features of our APB, including borrowers live chats, which are directly integrated with trending topics.
But encouraging our users to participate in tax.
All of these discussions after viewing the topic of interest.
More time, AR AP and continue to explore it.
It creates a sense of community that increase our user engagement and the boost user stickiness.
All of our hard work and constant creation and improving our technology has laid the foundation for us to make solid progress in diversifying our revenue.
In online reading segment will continue to monetize our original content IP, we completed the sale of the movies lives.
Real time.
See who you are.
One of our original reality seen works online fiction.
At the end of December 'twenty, and 'twenty, one we started laying the groundwork to export online literature content to overseas markets.
As of today, we have built.
Library of English titles in one hundreds ready to be monetized.
That's what e-commerce , we continue to develop products for our private label brand in the health and wellness segments.
In the fourth quarter of 2021 launch.
Nutritious low.
Calorie meal replacements at theaters feature.
Featuring popular Super food ingredients.
Making the most of the traffic from third party live streaming platforms.
Oh vertical channels.
Drove this product into the top seven less obvious category launch for.
Our culture and create empty with partner with IP licensing firms to green carefully crafted arts and cultural objects from some of the worlds, leading museums and galleries to our E Commerce platform.
Going forward, we plan to utilize the natural synergies between e-commerce and accomplished such a healthy fashion.
Newly developed a culture live streaming to integrate confidence it seems with merchandise selection and capitalize our user traffic.
Finally.
But definitely adapted our real estate vertical so the challenging macro environment, despite the market downturn.
We continue to exercise our media influence in the rural sector to deliver original council, along especially that's.
We launched a new column focusing on the industries wars at Chico's, we held our industry summit in the fourth quarter.
Feature top topics, such as urban three new land supply.
Factored that levels out.
The governance suite Rep lines policy, what real estate developers.
In conjunction with events, we also published industry White papers.
Specifically regarding ESG departments and industry dynamics, and the real estate sector.
On the other hand, our real estate team remained active.
<unk> new business opportunities during the fourth quarter.
Dressing customer pain points, and marketing needs well applying new monetization models beyond traditional advertising.
As a result, we achieved new breakthroughs in customer acquisition and improve our revenue mix.
To summarize we demonstrate the vitality and resilience during challenging times in the fourth quarter.
As we continue to host high profile signature events create original and exclusive content enhanced our content distribution technologists.
Our new business initiatives during the fourth quarter.
We continue to monitor and plan for external challenges as we execute our strategy of revenue diversification and business growth.
We started 2022, which renewed commitment to overcome near term challenges and build a thriving business rapidly changing macro environment.
With that I will turn the call to our CFO .
To provide a closer look into our quarterly financials.
Thank you Sean and thank you all for joining our conference call today.
Total revenues in the first quarter of 2010.
RMB $702 nine minutes as compared to RMB $362 two minutes in the same period of last year meetings.
Beating the high end of our previously announced guidance range.
To provide some additional color on our revenues net advertising revenues in the first quarter of 'twenty, 'twenty, one or RMB $279 two minutes.
<unk> to RMB $336 seven minutes in the same period of last year.
Decrease was mainly due to a reduction in advertising spending of advertisers in certain industries.
In terms of defied industry wide competition and the negative impact of the COVID-19 outbreak in certain regions in China in the fourth quarter.
Pedro services revenues in the fourth quarter of 2021, or RMB $23 seven minutes compared to RMB 25, five minutes in the same period of last year.
From paid content in the fourth quarter of 2021 or RMB seven nine minutes compared to RMB 11, two minutes into same period of last year, mainly due to the reduction in content spending of certain customers.
Revenues from E Commerce, and others in the first quarter of 2021 increased by 10, 5% to RMB 15, eight minutes from RMB 14, seven minutes in the same period of 2020.
Loss from operations in the first quarter of 2020, what was RMB 53 minutes compared to a loss from operations of RMB 28, eight minutes in the same period of last year.
Operating margin in the fourth quarter of 2021 was negative 17, 5% compared to negative 8% in the same period of last year.
non-GAAP loss from operations in the fourth quarter of 2021 was RMB 51 minutes compared to non-GAAP loss from operations of RMB three seven minutes in the same period of last year.
non-GAAP operating margin in the fourth quarter of 2021 was negative 16, 8% compared to a negative <unk>, 9% in the same period of last year.
Net loss from continuing operations attributable to iPhone in the first quarter of 2021 was RMB $35 four minute compared to a net income of RMB $434 eight minutes in the same period of last year.
non-GAAP net loss from continuing operations attributable to iPhone in the first quarter of 'twenty or 'twenty one.
RMB $33 2 million compared to RMB eight two minute zim.
The same period of last year.
Moving onto our balance sheet.
As of December 31, 2021.
The company's cash and cash equivalents term deposits short term investments and restricted cash or RMB 1.51 billion.
Approximately U S dollar 200 series seven five minutes.
Finally, I'd like to provide our outlook for the first quarter of 2022, we are forecasting total revenues to be between RMB 172 minutes and RMB 197 minutes.
For net advertising revenues, we are forecasting between RMB 158, five minutes and RMB 178 five minutes.
For paid services revenues, we are forecasting between RMB 13, five minutes on the RMB 18 5 million.
In summary, while the uncertainty from the present macro conditions and the changing industry landscape persist.
He meant optimistic that green chutes well emerge.
We are confident in all of our content creation and distribution capabilities and believe that this competitive differentiators well sharpen our market position in the face of ongoing industry wide competition as we go forward looking.
Looking ahead, while remaining prudent in our investments.
Well investigate new monetization strategies and to improve our revenue stream mix.
Im convinced that we're on the path to deliver shareholder returns in the long run.
This concludes the prepared portion of our call.
Now ready for questions.
Operator, Please go ahead.
Thank you as a reminder to ask a question you will need to press star one on your telephone to withdraw your question. Please.
Oh Heskey.
By while we compile the Q&A roster.
Our next question comes from July all share route Chung from 86 research. Please go ahead.
Yes.
Good morning management. Thank you for taking my question.
One question regarding <unk>.
We know that.
Yeah.
Market.
I'm wondering do you also observed the children gates from macro or regulation.
And business as well.
Is there anything we can do to offset the impact.
<unk>.
Hi, sure this.
This is Edward.
I will answer this question.
Actually I know all of our brand advertising business revenues did face challenges.
Due to the market downturn.
The first quarter.
2021.
In some industries, such as autos and real estate clients are very cautious with their advertising spending.
Also we urinate hotter more offline.
Activities and events in the first quarter.
Which were affected by the nationwide COVID-19 outbreaks.
Even though we overcame many challenges and our success.
Successfully how the all of our signature events, such as the finance and economic summit and for the festival, which still has some projects being delayed or.
Even cancelled unfortunately.
In 2022.
I think at the macro environment is still uncertain. However, you can wait and take a look at it as a trend of marketing demand.
Advertisers pay more attention to.
Depreciation marketing leases, because mobile internet traffic growth.
Perfect.
Now advertisers folks more.
Comprehensive and <unk>.
Content then.
Fragmenting the content and the short term attention.
So we will continue to strengthen our differentiation.
I think in the following ways.
First we will continue to enhance our media brand value.
Sue news coverage on signature events are in general content and large scale events planning.
We will integrate and distributes lease content through our live streaming video and.
Other forms of media.
So we can create unique.
Our market marketing resources for our clients.
Also.
We have a unique strengths in providing international marketing solutions.
A variety of resources, the creator of our seen serious things Global Observer group.
Either professional or generally located around the award.
Overseas Influencers.
They have successfully created a video content to help domestic out other weyerhaeuser, it's promote lear brands globally.
However, international seem to IP, such as the high end of Forum.
The dialogue with the award.
You should get too hot is widely endorsed by.
Our advertisers we are also building our influence and distribution capabilities abroad by.
Growing our presence on the overseas social media platforms.
Uh huh.
Also our collaboration with <unk> TV.
We're also allow us to integrate both sides, marking and advertiser resources and complement each other well.
But as to create a total marching solution, let's covers internet.
TV audiences.
Together, we can further reach and attract new clients, such as central and the state owned enterprises.
We hope to create a.
Greater value for our clients and boosted our monetization efficiency.
Relief efforts.
Thank you.
Thank you that's very helpful.
Yes.
Alright, Thank you your questions.
Next question comes from the line of <unk> Tang our first Shanghai. Please go ahead.
I have two questions on my end.
First one is our company has mentioned diverse revenue streams over the past few quarters. Many times. So could you. Please talk about the company okay.
Fisher snack segment.
Yes.
Hi.
I will take this one.
Actually all of our online reading and E Commerce revenues.
The Pos grew in 2021.
For online reading, we have organized our team and recruit more people.
<unk> talent.
We also improved as a core competency of our IP content and created various monetization channels.
Including recording and selling audio books producing and.
Distributing short form video service and selling film right.
We expect revenues from this segment to continue to grow in the future.
In terms of our reading App.
And attract new users by offering three high quality E books and.
Our revenues through advertising.
We expect revenue to scale up in the next few years.
For our.
E Commerce business, we focus on positioning.
Yes.
The go to platform for our culture, and the house product leveraging third party platforms, such as ticket Hawk and crucial.
Our private label brand has achieved meaningful growth in <unk>.
These third party platforms.
I think as we continue to create more original content, our florists and.
Useless.
Third party social platforms also grew.
We are still working on how to churn of our increasing number of followers into our e-commerce users.
Users, we hope at least growing traffic can boost to all of our e-commerce business growth in future.
I hope I have answered your question.
Yes. Thank you very much. So my next question is by the end of the year 2021. The company still had about a 1.5 billion RMB and cash reserves. So does the company have any investment plans for these cash in the future.
Hi, This is Rob let me take your question.
We're very fortunate to have huge amount of cash.
Uh huh.
It's about $1 5 billion RMB Youre right.
I think we're lucky to have this amount of cash.
Uh huh.
Especially given the current market condition is a very volatile market, we experienced panic selling last night.
This amount of cash we will make us more ready independent and stronger for future challenge.
And to enable us to navigate the temperature of the water.
Simply because we have this amount of cash.
Does not necessarily mean that we could we should be more aggressive in that.
I think at that.
Current stage, we need to be more prudent.
More conservative.
Bennett.
It would be for peak out what happened.
Before we.
Clearly analytes.
Uh huh.
Concrete impact.
These uncertainties will have.
Our business or financial perspective.
So.
Near future I think we will be more.
<unk>.
Cautious.
Making.
Investments.
Yeah.
That's it.
Okay got it thank you.
Okay.
Thank you for the question.
No more questions from the line I'd like to hand, the call back to the management for closing.
Thank you operator, they have come to the end of our Q&A session and our conference call.
We need to contact us if you have any further questions. Thank you for joining us today on this call have a good day.
This concludes today's conference call. Thank you for participating you may now disconnect.