Q4 2021 36Kr Holdings Inc Earnings Call
Hello, Ladies and gentlemen, thank you for standing by for 30, 60 Holdings incorporated fourth quarter and fiscal year 2021 earnings Conference call. At this time all participants are in listen only mode. After management's remarks, there will be the question and answer session. Today's conference call is being recorded I would now.
Now turn the call over to your host to Chang Wang IR manager of the company. Please go ahead to churn.
Thank you very much Hello, everyone I won't come to 36 core holdings fourth quarter and the Fisher Your 2021 earnings conference call the company's financial and operational results were released earlier today and has been made available online you can also video earnings press release by visiting the wide selection of I'll watch side and I are pretty safe.
Dot com participants on today's call will including our co chairman and CEO , he's stuck on phone and our CFO Mr. Li wait Mr. Farr West always call by providing an overview of companies and the performance highlights of the quarter and Chinese followed by English integration interpretation Miss way well then.
Provide details on <unk> financial results before opening the call for your questions. Before we continue. Please note that today's discussion will come people were looking statements made under safe Harbor provision of U S. Provide securities Litigation Reform Act of 1095 forward looking statements involve inherent risks and.
I'm certain.
As such the company's results may be materially different from the views expressed today further information regarding these and other risks and uncertainties, including in the company's prospectus and other public C. D's, a feud with U S. S E C.
<unk> does not assume any obligation to update any forward looking statements, except as required and apply civil law.
He's not the 36 core earnings press release, and this conference call, including a discussion of <unk> GAAP financial measures as well as an adult use non-GAAP financial measures.
36 crews, earning press release contains risks reconciliation of all non.
non-GAAP measures to the unaudited GAAP measures. Please note that all numbers are in RMB.
I will now turn the call over to our co chairman and C O B stock on for Paul. Please go ahead.
Yeah, It all got hit.
Again, this is either with each other.
Thank you Hello, everyone and thank you for joining our fourth quarter and fiscal year 2021 earnings conference call.
All the arguments.
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Yeah.
Unfortunately, not all of it.
Well, thank you Ricky at Intel.
She didn't consult until that shouldn't cause you can jump in penetration goes here. He said all of that.
How do you see all the arguments.
Thank you Chantal.
Hey, guys.
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Oh sure.
You're starting to hit the woman she left home, although it seems that two.
2021 has been that even for you given the complex environment, a year with Facebook to expansion opportunities and the license challenge.
The rapid global change China's new economy demonstrated strong cigarettes under Battology commitment to our mission of empowering you called me participants to achieve more we continue to witness as well as a company many new industry and a vote coast on their journey of deposits with an extension.
In time could it takes courage to leave with a solid top line growth in 2021 with our total revenue reached RMB 317 million for the full year, notably we also achieved the cawley put full ability in the fourth quarter of 2021 for the first time in the past eight quarters. This robust financial results were driven by the significant are pumped.
Completion and breakthrough in many aspects, including content strategy product development platform refinement blending in fluids and monetization capability.
Although our Union city at all.
Hello.
It won't be kind of a consensual Suzanne as usual when he goes on though.
He told me what kind of I'll call it they're communicating to you that in Geneva.
I know you guys have a volatile.
What's the time frame you can tricky.
We're all about how much you might either hold on maybe for Don.
Welcome to all political and I'm going to tell you in the fourth quarter, where do you live with another record setting performance user traffic with average monthly page views reached 800.
Up to 35 45 year over year. These 50 cost typically called health groups demonstrated 36 quarter unique leading position with new economy. The release of the blockbuster article such C. T. L cracks in the Trillium RMB battery inter cooperate sponge in she Archie I'll cover intelligent hunters in Tonight Giants.
And I'll use white paper stay up late is further evidence of the continued rise of all content influence. These articles attract attention and the giant popularity, where there are plenty of college.
Tomorrow, an argument for them right.
Right now, but you can go to a halt now getting.
But I am telling you the way until water runs out.
How do you narrow it down to the Los Angeles since you're doing really.
Well, because you can't do on their own.
Did you say you'll be taking rule.
All right.
Well, there's a lot more time to.
And then once you can sure perhaps you don't know what yeah, yeah, he put on them.
Okay. That's helpful joined 2021 year 700 piece of articles published on their Wechat official account I smashed amassed over 100, thousands we view each with some of them are tracking more than 200000 people even more impressively. Some also finite articles achieved phenomenal level of leadership over.
300000 review and even some cases over 600000 Teus. Meanwhile, our content platform strategy remain intact as we delegate it to further enhancing our content college deep and diverse T. Five through both P. D C and UGC. Additionally, our ongoing efforts, both fruits which results in.
Product development presentation formats distribution channels user experience and the expansion of our footprint.
Hello Mohammed.
Until then.
Well if at all.
So don't you saw Higgins yourself for the Hudson.
So that give you, though I wonder if you guys can get into these things are at all time high yards. This is Hal.
All of those things just like you do with a little bit you're talking a little looser cool thing to do because as you know whole unusual it's hard to talk to you soon.
I know what I mean.
So that you all.
We're talking about usually IP can be less that way.
Comment a little weight centered around as I said I'm thinking about it.
We didn't give any guidance with respect of the content column and product development. We continue to expand our high quality content metrics, we're talking to a wide range of industries, including new consumption smart vehicle height in the manufacturing sector corporate data transformation and debating stock exchange store carbon economy. Meanwhile, we please.
More on new economy, and capital market and continue to upgrade our product offering across probably in the secondary market to this end, we launched a series of new products such as digital 36 car Finance Oh use Super reviews, 36 core Research Institute, Kirk carbon and rebates.
Providing deep professional analyzed of latest the business trained in addition, we continue to optimize and.
Innovate serious of IP products, such as wife's comfort 36, and 36 Speedway stock Classics and 36 core Enterprise Service review platform.
They went to Vishal second goes Goodbye, Oh, My God I won't do it.
And can you believe that he will help us.
With your talks with your hometown.
Thanks.
Hello, and how whether you too because that's what they do not care about.
Okay. If there are no cause I shouldn't even Kelvin if you can talk about that.
Sure.
Have you done differently.
That one two months you cannot say no catastrophe, maybe you guys don't want to eat English language.
Regarding content formats. In addition to reinforcing our advantage in text and eat we have photos strains to our strategic efforts and investment in audio live stream.
Particularly short short form videos, we have produced near 200 short form videos occurring over 600 million views across our platform with close to 20 million likes. This week. These videos are unique in terms of the topic selection visual presentation opinion.
What range of user demographics and have currently attract more than 6 million followers of our video across all platform. It is particularly a lot worse at the number of followers to our official corporate call Unbilled EBV now exceed 1 billion, a testament that increasing popularity and the racing influence of 36 crore short form video call.
Among young audience.
They only their children and they don't want you to know.
So all of US who didn't think about trying to do that so thanks again.
Mm Hmm okay.
So since there are no questions.
How are you.
So I'm excited about triple again toward the woman who fulfilled.
36 call audio content is another highlight of two metrics exemplar off of one of our exciting audience poll, if called Walkman, which provide us with the latest the business highlights in short audio clips that takes just a few minutes to digest. We also clever with new radio to broadcast our businesses centric products program on their new.
Radio placed enabling 36 cartridges LIBOR pioneer content to a wide audience across various safety. Furthermore, live streaming is a significant addition to our content advantage lovely Ge's Interactive first feature and 36 go reach Port Arthur business, who wrote and industry experts, we have the truck the menu.
New users to our livestream content.
They also have to continue that trend.
Q2 was little incentive for a long time cyclical ADP, but.
People know how people drill hole Chrysler.
Also you know Wanda hotels at all.
Well from the digital marketing side of it.
Exactly.
Hi, Jonathan.
Go down to what I said that our food.
On the content distribution front, we continue to reinforce our Omnichannel distribution strategy is to have Alicia more than comprehensive range of channels for distribution. In addition to our proprietary platform 36 for website and 36 core App. We also these type of our content through external channels such as <unk>.
Sure we check will account, we bought your who do in quite short Billy Billy on the self insured and several other wide portal.
We have expanded our reach to almost all the mainstream platform and I'll fall of 'twenty two.
Providing us I'm precedence in food.
I didn't want the income from Danielle It's awesome to you told me a couple of games in China.
Yeah.
He can give you some kind of anywhere else in.
So if you're talking about.
He shows you how you can put it.
So I'm kind of looking at it.
I mean are you kind of how long you keep your Cola youre working with him.
Since he joins all sorts itself out and dropping food essentially your Nielsen He's kinda on resiliency in terms of user experience will continue to optimize and upgrade our product offering for example, the iOS desktop budgets and the plant <unk> upgrades have made it easy for users to discover and Nebraska, our content more conveniently.
Smoothly went over the new user achieve system and localized community operation strategy have gradually promote youth active and enhance user stickiness in our platform compared with prior year all year over year basis in 2020 one the number of users posting comments increasing by 47% the number.
<unk> rose by 204 person on our third day retention rate rose by 97% of cost to fix a website and 36.
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All of them.
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When the Hibernia was kind of a global you something that people would put it at all here.
So that kind of what the alternate won't have a potent blood possible silicon and silicones Hello, you've had with your home.
Got it.
Moving to expansion of 36 car footprint, we extend our presence across a broad range of domestic market low tier cities and international markets. In August 2021 official launch is that outdoor headquarters in Shenzhen and through a localized operations strategy, we have exhausted plea parties dependent in the wave of new.
Economy develop in South China, Great Bay area, we have extended our original office to 12 key private province, and think he's including Hangzhou, Chengdu Changsha, Xi'an Chongqing to explore the potential off the low tier market and the industry upgrades on ink Tonight front thirty-six co global for the expenses.
If pricing from South Asia to Australia, New Zealand and Europe . Furthermore, 36 foot Premier content also adopted by the Bloomberg, Belgium, and Nikki, which is substantially boost to our global influence.
Can you kind of government as you saw on our email.
But your questions on that so we'll talk to you.
Yeah.
Political tougher Nokia so think of the.
So does that cause you to that says you don't that unless you tell me if that's all so don't forget to vote.
I certainly don't see what happened here.
Uh huh.
So I can't tell you exactly so I'm kind of.
So we're trying to hold them and she does isn't done driven by the initiatives above our customer basis grew rapidly in 2021 each of our six major customer communities continue to expand including start ups TMT James investment institutions local governments traditional enterprises and individual clients I've seen time have built a close loop.
And silver offerings does empower the entire enterprise lifecycle spanning from start up and develop into the expansion stage. We're also continuously boost to our new commercialization efficiency next let us look our achievement in terms of collusion commercialization.
Saturday argument you can find it for two reasons.
Sure for that building.
I mean are you tightening and they'll continue to do that could be called human cancers.
Awesome.
Couldn't be done all that in order to call you to Ohio commuter.
Kidney vol coals without a total workout put into Tulsa, she wanted to compete with us on some of them down.
If you're talking about kind of how you're sure you can I know you don't you can come up to you all.
So you can kind of assume causality, here's what Canada, Chile, Colorado.
So you want me to do you tend to occur.
I didn't get it.
The only kind of culture.
Going back to kindred.
And of course somebody or when do you expect that the recovering COVID-19 outbreaks in context micro economic environment.
Leave that solid topline growth on comparable basis in fiscal year, 2020 one all for your advertising revenue reached RMB 216 billion, representing a year on year increase of 25, 24%, which was above the industry average. In addition, the number of advertiser exceed 500.
And I've raised revenue per advertising customer well above RMB 400, thousands both achieving full year over year growth. Unlike other traffic platform.
Advertisement for beauty brand reputation and visibility.
From the platform significant leverage capability as well as limited impact of the recent macro economic cycles, enabling us to exactly the powerful revenue potential the advertisers choose to club with a 36 current because of our deep industry.
Industry expertise and a strong influence on the new economy on other hand there.
One year to 136 core omni channel distribution, which accurately target. These teams. These teams to audience squeezing a high quality customer base, a testament to our powerful platform asset.
There is room that academia, where you can go to school.
Yes, Andrew.
Call me on the call you'll share, but even without getting Quechua excuse me Joe.
You talked about on for me to tell you because he won't be that shouldn't go anywhere you want.
We have all questions on Pizza hut answers I don't see that now kicking me out wouldn't be naive here.
Yeah.
Thank you back up on the U S E G.
I'm going to ask what do you hope into a clinical hold could I imagine so Joe.
Joe.
Oh Boy, Oh short form video business and the launch of their content columns targeting customers and users has demonstrated a 36 or advertising advantages in achieving both in brand awareness and the performance.
The reach media characters of the short form videos such as it is usually the effect strong engagement type of content on a wide distribution capacities will provide brand promotion promotion and content marketing solutions to help customers enhance their brand image and influence.
Customer basis.
From corporate clients the brands targeting customer audience.
Samsung 19, P&G I G juku turnkey for it and many of our international and local companies.
Same time, our average revenue per customer has been rising steadily.
Okay.
He has done.
Okay.
Somebody reach out to you though.
I don't want to you because even with a little closer to your philosophy, if it doesn't even matter.
You talked about the Arizona Hospital.
You bet.
Gee, it's easier for them, so that altogether and stuff like that.
Okay.
Let me if I need some help on Michigan 11, just yourself.
Turning to the latest update regarding all Daniel Ada Enterprise service in 2020 , one we have stripe.
It's dry pizza could be reduced low margin.
While increasing our investments in offline events consulting service well.
Well, all we proactively in QVC platforms scale enterprise service products, such as interplay service review platform with purpose of the driving all sent groups covered and Readouts you to pause.
People work progress our full year revenue from Enterprise Ada service reached RMB 74 meeting them all those service offline events and consulting service called a remarkable growth of 19% and 13% compared with 28 point you respectfully.
Yeah.
It will.
Sure.
Things are calling for that cohort.
What's it all mean.
Yeah Colton.
I read an interesting project goes well.
People are sort of all those involved.
What should I do it all.
Are you there.
Thanks.
Yes, I mean has it all.
I was just trying to tie it almost had been making you usually don't think.
Okay. She can't win besides usual offline events, we adopt a more flexible approach to serving customers buy regularly leveraging the video and live screen format for offline event in the fourth quarter, we hold our annual best Buy's conference with ear of Hot cool.
In addition to holding high quality offline summit, we also partner with still integrate and align life's premium program on the same theme to promote wife's conference was successfully create a long tier effect from you've been promotion to livestream and finally, the content creation and distribution and potential there.
Moving into a major industry influencers.
Obviously, the revenue from 'twenty to 'twenty, one wiper conference remained a high level about the use of exposure also exist a total of $1 3 billion across our platform effectively Stephanie These partnership as a benchmark for collaborations between financial media and <unk>.
What are you doing when you bought them with working capital.
So the total change outs you can touch on.
Hold on for these kind of tissue.
They didn't go to handle their trial participants.
Okay.
Literally in 2020 , one we hold viral viral offline events. Furthermore, the number of our events and other revenue point events has both increased compared with comparable with last year or even coverage.
Diverse range of topics, including industry twin investment opportunities the outlook for them not rigs overseas commercial expansion locally by some promotion and industry operates.
Okay.
She is under water clauses on both of them.
That should be valid.
Uh huh or bundled with that.
But what are your underwriters on cobalt credits as you put it.
Anything new Basel I don't have that information.
Bundle, but you don't want do you want to since you gave something happens and you walk all technical.
One of the time I've been here.
Secondly, I truly like alcohol essentially your grandma to digital on distributed income in 2020 . One. We also continued to make positive progress in August .
An important component of our enterprise.
Solution on the corporate side, we help leading high tech companies, such as bike Ducks, Andy Grove and.
Biomarker issue customer industry Research report on the government side, we produce research report on the Weisman promotion and the construction planning for new develop its own for local governments in Shenzhen, Hangzhou Xiang among others generating substantial monetization opportunity.
Remember 2021, 36 core Research Institute Institute joined after that takeaway search Albion, a testimony to our professional capabilities.
Cognex vision from professional arthritis.
Hello.
For example, trying to achieve with it and he and I listen guys I suppose a lot sooner.
There's a lot of interest you see irises embolic ensure from what you thought the high agree more.
And you know what I don't know Jonathan you said.
So about a year.
Yeah, well it will not be thought of as an absolute.
Yeah.
No other timing issues, you'll have shot here you sounded like you who came to us.
Do you want to handle that that's all kind of what you're looking at can.
And we don't want to show me housekeeping here that people don't change you mean that next I would like to share in detail upgrades regarding our key K incubation projects. The 36 current enterprise service review platform, the digital and Smart technology train size.
After the soft industry until a year off the fastest growth. According to the Irish research the size of the China Enterprise SaaS market expected growth from RMB 53 8 billion in.
In 2020 to RMB 130 billion by 2023.
The annual growth rate of 30.
34%.
We launched 36 current enterprise So basically review platform to feel for this huge product came out in the market potential trends and by corporate undergoing digital transformation.
After more than a year optimization and fine tuning our enterprise services with your platform has became China largest most affect authoritative and the most convenient enterprise survey software selection platform.
Clearly, there's a lot of those people.
The addition of Columbia I don't know.
Other times, you bundled securities disposal Hopkins the food on the go from Stifel. Please ask yourself.
I mean could you poll for questions.
So it is not at all.
What about once a year.
Okay.
Yeah, so valuable to Amsterdam and modalities.
So you're not having to transition from here.
Nicola Township, Ohio took a hard tissue. If you don't want to do that so once you go out of service in Q1.
Congrats on one additional licensee targeting the pinpoints of inflammation metric between demand side and the sell side.
<unk> 36 Enterprise service review platform team has built a platform within three noteworthy features to empower every enterprise.
The best solution for their cooperating teachers digitalization transformation first 11 rates in part that information covering the key industries in China Enterprise service market as major of leading players in each industry, allowing the demand side to compare similar thoughts about product in terms of the function.
Analogy price rating secondly, a friend that user reviews from real users of the software protect waiting to share their experience.
Third our structured knowledge based system that is created by the integrating their 15th items of knowledge from our cross enterprise service industry to help users accurate aggregate knowledge and the information.
Got it.
He told us.
Yeah, I mean, I don't know about them.
So it won't be for occupancy.
So let me kind of them.
Let me start off you can do about it.
Lewis.
Hum.
I'm just about Colombia.
Gotcha.
Off the fourth quarter of 2021 and we have grown our enterprise service review platform, including close to 6000 software applications up 13 substantially and acquaintance.
The platform.
Reached almost six months.
Thousands potentially increased 72% from third quarter.
Nearly 600 times a year after year the accumulates to you of the comments amounts to nearly 20000.
Hum.
Sometimes quarter after quarter, a thousand times a year after year. These outstanding operational metrics for the pull them that our product would you pull it all has to be put into even.
Still growing user base.
Got it.
Sure Jonathan.
That's one thing.
Depending on what future.
I think I'm going to turn down.
So it really depends on things that cause won't take it.
No no.
Too often had to pull them.
Yeah.
Great.
Okay.
What are you, giving any thought on what you saw.
Thank you.
Sure. That's helpful. And then you can't stop with before.
As you know once you have them.
Until this year.
Hello, Tien Tsin time, okay, because we didn't have any impact.
Total shouldn't even talking about the doses that you're familiar with.
So just wondering if you've heard anything.
Shanghai transaction.
Sure.
Sure.
That's a continuing agreement with Shanghai pilot social.
In 2020 and 2022 we are celebrating the development of 36 core competitive advantage and also were influenced in enterprise service review market closely will be upset the evaluation standards for China Enterprise service industry and leverage our first mover advantage is to educate the market.
Second through improvements in our product library user reviews knowledge and two important collaboration will further reinforce our enterprise service with your platform and reinforce the point that competitive advantage.
Independent third party 36.
So basically you possible website real comments from you.
User demand.
Patrick as well as encourage user to voice their opinion to ensure the object TV family speak of our platform. Furthermore, we are quietly began testing enterprise service review Praful. This commercialization potential looking to achieve monetization by generating himself fleets providing consulting.
Service and our brand marketing solution plus other effective measures to realize the monetization of our platform beauty on our own.
Wanted to collaborate with leading domestic SaaS and cloud service providers as well as industrial digitalization demand such as finance energy and health care to establish an enterprise survey.
Mark and create a flagship platform.
Perfect and platform to today, we have grown the platform to cover overseas King.
Enterprises are protecting the market, we believe that we deepen the enterprise studies, we do import totals.
Photos market penetration advantage of upward platform produced and service will position us to capitalize on the best option.
Hung can be on the market and enable us to achieve impressive before their returns.
Yeah.
Are you going to finish up.
Yes.
We don't have them in person.
Husky vehicles or you couldn't do some coastal won't be forgotten because youre, putting out can be thought of as yet.
Last but not least let's turn to our satisfaction surveys on our full year revenue from subscription.
Totally to RMB 28 billion up to 35 year after year in 2020 , one we achieved solid growth in number of tissue and enterprise customers, which increased by 40% year, albeit with average revenue per customer growth by 19% year over year.
Are there kind of a third fourth and you can tell you, though that catch all I can.
I hope that needle time here.
The question is do you want to say something that's beautiful.
Uh huh.
The bathroom.
Thanks, Jason.
Can you talk on cogent.
Yeah.
Five years.
Torture, that's an ideal job Wolfgang can then be the fifth Avenue.
Okay.
And how do you do.
Definitely it's an entrepreneur looking ahead to 2022, okay Brian .
All of them dedicated to survey the new economy, we will continue to build and develop our content.
Docs and the ecosystem to provide the entire lifecycle of the service for our customer we will continuously optimize the three major business segments to grow our customer base, including housing new format, such as short form video programs targeting individual subscribers will also increase our pro Xtra.
New business opportunities from low tier market and industry operates in additionally, regarding our emerging business, we will continue to maintain.
Leaving coming to bolstering the research and development operations and commercialization of three six car enterprise. So this review platform. We believed based enterprise service with your platform well it became our second growth curve.
I think as I said, yeah vishal.
I just wanted to reach out to them.
I'm comfortable with.
She won't be calling those out.
So you are saying some vehicles here sort of talking about how are you.
This is all of it.
Can you give her clinical sometimes can be behind us as well.
What are your initial thoughts.
In Q4.
First of all on culture.
Well, we keep using Google chrome within your portfolio.
This is Don.
Part of it.
Without frozen.
Are you hiring in engineering.
Sure.
They use the Chilean peso.
Putting it all at once.
I was wondering and I think that's absolutely idea, which totally hook lock with them that I continue to contribute a doctor for quite some time, we have faced the challenge of color and.
In a complex macroeconomic environment do you expect those difficulties, we have sold them by exceptional performance of alcohol business, we achieved solid year over year growth why do you debate.
We operate digital transformation aimed at the rise of a new consumption advanced technology and door carbon industry pasta growth off a specialized refined differentiate and innovate to enterprises. We will we will decide the historical opportunity to build a system.
A nice product can service, achieving faster and a high quality business growth. We expect 36 quarter will continue to deliver strong revenue growth and achieve profitability and full year basis in 2022 under the circumstances that the COVID-19 pandemic.
Really contained and the microeconomic is stabilized.
In a comprehensive Lee shopping Oh, we shut in of 36 for business fundamentals promoting in the market to re ash 36 core saturation and actually in the in function point off of companies funny.
We are confident that our robust long term fundamental will empower us to forge ahead to deliver long term sustainable value to society and our shareholders.
I will now turn the call over to Ottawa, Therefore makes it even better.
Scott our case.
Actual results. Please go ahead.
Okay Paul.
One we are very pleased to report another stock I'll finish by solid financial results for the fourth quarter and fiscal year, 2020 one despite the interpret times refrigerants.
19, and the car velocity come.
Black cycle economic environment, we achieved strong growth across all three business segments.
Comparable basis in fiscal year 2021, beating Walker congrats on both the topline and bottom line.
Want to highlight that.
Advertising business grew 24% year over year outperforming most of our peers in the industry most impoverished importantly hunting.
As we improve our operating efficiency, we booked a record high gross profit margin of 65% and net income of RMB 15, 4 million for the fourth quarter of 2021, the first time of profitability in the past eight quarters.
In addition, we ended the year up 21 with a very strong cash position of RMB $216 1 million and we've done it takes a positive operating cash flow in both the fourth quarter and full year of 2021, well at Banco first right into 2022, we will continue to solidify our cost down and content production.
And our service offerings, while expanding our monetization channel.
We believe that we are well positioned to capture the vast opportunities in China's new economy space and.
And create greater value for your customers.
All right.
Now I'd like to walk you through more details of our fourth quarter and fiscal year of 2021 financial results.
I was having some things revenue increased 10% year over year to RMB six.
76, 4 million in the fourth quarter and grew up 24% year over year, who RMB 214 7 million for the full year upon launch.
But equally what finally ethical both Vermont market.
We provided to our customer the number of advertising customers and average revenue per advertising customer both achieved growth in fourth quarter and full year 2021 .
What about the others.
Revenue were RMB, three 3 billion in the fourth quarter of 2021, and some performing portfolio what I've looked at it in I mean.
Starting from the first quarter of 2021, which seems to act as a principle of some local broker and output.
Hum revenue optical smokers are recognized on that basis from the fourth quarter onward to increase comparability of operating results and talking about folks better understand our business performance and operating highlights we introduced gross transaction value.
No magic to this cloud business.
Value.
Services increased 46% year over year to RMB six upon.
5 million in the fourth quarter of Huntington, what I'm incorrect topics have year over year to RMB 217, 2 million for the full year 2021.
Particular, our consulting services revenue an awful lot in Bath revenue increased by <unk>.
19% year over year, respectively.
Hum.
Reflecting the footprint growth despite the influence of the lingering pandemic.
The person services revenue decreased by 11% lobbying nine 6 million in the fourth quarter of FY 'twenty, one because some of the offline training profile or canceled or delayed due to the resurgence of COVID-19, before you're kind of 'twenty. One also increased.
Increased by 45% to RMB 28 billion, primarily attributable to our continuous efforts in offering high quality products.
Revenue for <unk>.
$116 3 million in the fourth quarter on kind of 'twenty one.
If we have another 16.
$16 8 million for the full year of FY 'twenty, one respectively, taking into consideration of the aforementioned kindred around.
It makes the whole enterprise value added services.
Whether it was a RMB $3 2 million.
At RMB 143 control.
Because that revenue growth come back somebody with both fourth quarter and full year.
First of all figure out that of our overall business trend is upwards and demonstrate colleagues.
Sure.
Cost of revenue decreased 42% year over year.
The $40 7 million in the fourth quarter and decreased 1% year over year to RMB $128 8 million for the full year 2021. The decrease was primarily due to our casino and.
And focus towards higher margin businesses and recognition of certain revenues on that basis.
Gross profit increased 49% year over year to RMB $75 6 million in the fourth quarter of 2021 and increased 30% year over year.
And the $87 9 million for the full year of Python.
Corporate market reached a record high of 55% in the fourth quarter of 2021 compared to a 42% in the same period of last year full year 2021, gross margin was six 9% compared to 32% last year.
Inquiries were primarily due to our continuous so.
Our focus towards higher gross margin businesses and recognition of revenue on that basis as well as our improved operating efficiencies in fiscal year 'twenty one.
Operating expenses decreased 32% year over year, who on the $61 6 million in fourth quarter of 2021.
With 28% year over year to RMB 282 million for the full year top line.
Selling and marketing expenses were RMB nine.
One 3 million in the fourth quarter of 2021, the increase was primarily attributable to an increase in payroll and related expenses and marketing expenses.
Offset by a decrease in travel from classic share based compensation classes for full year 2021, the sales and marketing concepts were RMB $143 9 million.
Was primarily attributable to an increase in payroll and related expenses, partially offset by the decrease in share based compensation expenses and marketing classes G&A expenses were RMB nine 6 million in the fourth quarter and I'll be making six.
Six minutes from full year, 2021, representing a eight 8% and 57% reduction compared to the corresponding period of last year.
It was primarily attributable to a release of the allowance for credit losses.
Intrepid compensation classes, partially offset by an increase in payroll related expenses does release of allowance for credit losses was mainly due to improved collections of accounts receivable as well as continuously increase our effort in accounting receivable collection.
Research and development expenses were RMB 12, 6 million in the fourth quarter of 2021, and $47 5 million for the full year of 501.
Yeah.
Primarily attributable to the increase in payroll and related expenses as we bolster our research and development capabilities.
Compensation expense was recognized in cost of revenue rose on marketing process research and development expenses as well as G&A expenses totaled $4 1 million in the fourth quarter of 2021 compared to $9 1 million same period last year for full year 2021, the total amount of share based compensation expenses were RMB 15.
Compared to $9 3 million in 2020.
Other income was RMB, one 5 million in the fourth quarter of 2021, and I'll be <unk> 6 million for full year 2021 respectively compared to other expenses of RMB 10 million and RMB eight 3 million in the corresponding period of last year.
Lisa was primarily attributable to losses recognized from equity method investments in fiscal year 'twenty one.
Net income was RMB 15 formula in the fourth quarter compared to RMB 19, 1 million net loss in the same period last year.
The fourth quarter, we achieved quarterly profits, we're looking at the past eight quarters.
The full year of 2021 net loss was RMB <unk> 6 million compared to RMB 200, or something my consumer route and quite.
If we could look to come to a doctor on a full year net loss non-GAAP adjustments net income was RMB 19 constitutes.
Fourth quarter of <unk> compared to RMB, one volume and dialogue in 2020 for full year 2021, but definitely not loss was.
$75 6 million compared to RMB.
241 last year.
Net income attributable to photos and pay our holdings ordinary shareholder was RMB 14, 6 million in the fourth quarter are coming from one computer.
My one 4 million net loss in the same period of last year full year net loss applicable to common shareholders to RMB nine 6 million compared to RMB 282 million last year.
Diluted net income per share were both RMB, one four cents in fourth quarter.
One one compared to a net loss per share of RMB license in the same period last year before Youre talking 41 basic and diluted net loss per share for both the eight seven compared with <unk>.
Seven five times.
Got it.
As of December 31, the company had cash cash equivalents as I'll talk about months of RMB $216 1 million the highest cash level in the past two years. This was mainly because we generated positive operating cash flow in both the fourth quarter and full year 2021.
Lastly, let me provide some updates on the perfect for one on May six 2020, the company announced that it.
As part of block towards authorized a share repurchase program underway. The company may repurchase up to a total of $1 billion.
American public for sure, it's representing 25 o'clock Omnicell.
As of December 31, the company had repurchased approximately 786008 assets ballpark.
Our proximity to the RMB 17 5 million under this program.
This concludes our prepared remarks, we will now open the questions.
Yes.
Thank you, ladies and gentlemen, well now begin the question and answer session. As a reminder, if you wish to ask a question. Please press star and one on your telephone keypad and wait for them to be announced but the benefit of all participants participants on today's call. If you wish to ask a question to management in Chinese place immediately repeat your question in English.
The first question comes from the line of Jim come from C. I C. C piece ask your question.
Thanks, so much I'll hop in queue.
Okay.
Yes.
Oh sure.
Finally, our union.
Our debenture all she got glimcher, not issuing or kind of imagined she the whole block binding petrochemical sounds humorous elements chartwell on the Oregon and Congo.
You don't see neither at.
Got you.
Oh, you are going to ship now.
Science fiction.
So that they can sustain higher wheelchair.
Sure.
I think.
I have two questions. The first is entered the current macro environment. How do you view the advertising business in 2022 and my second question is how did he called me and 19 in March effect, the company's offline business in the first quarter.
Yes.
Okay.
How are you doing.
Margin calls or it can be one of our nurses.
Hum.
Youre, saying something like that.
It doesn't matter what we do.
R&M you can mill.
Right now.
Okay.
Alright.
I apologize when people sign up nominally from the way you kind of put up 102009 to Washington Gold mining.
I'm the draw for the squad, which what I forgot who couldn't kind of zalviso.
<unk> been pushing into almost sort of a cold winter.
I mean.
Okay alcohol, they're going to affect all of those things.
So from there you start shipping Saturday the transfusion.
Sure.
Sure.
Hold on Oklahoma.
Hey, good.
Ladies and gentlemen until those two can do attitude in terms of ours.
We'll talk to you on the drinking alcohol. So you got to hear that.
You can download the Nashville project dependent.
Yokohama little demo.
Sure Jonathan.
I should note you can reach out to you Paul.
We can kind of make you though to the it.
Oh gosh I wish I don't know if you need a whole new way.
Continue kind of fluctuate up and down.
Which I thought I'd give you one kind of pulling them down.
Thanks for your questions for your first question I would like to say in 2020 . One all the tied to revenue grew 25, 24% year over year, a relatively high growth rate compared to our peers I suppose it comes under control I believe.
The economic well.
As the pandemic come under control and the economy will gradually recover and we believe the advertising industry will trend upwards as well from our perspective from our perspective, all the time, our advertising growth meeting comes from two sources, the increasing number of Kaisers and the steady growth of our poor.
So do you exclude these two these.
Distribution channels became more diversified and talking more niche markets.
And the new pumps like short form videos, we expecting both number after advertiser and our per well gross weight.
With some save lives the branding advertising, which is characterized by stronger libraries under lease.
Capability to economy cycles, therefore, our advertising business at least effected by the infections in the economy from the industry side and it's more depend on the pandemic situation.
I believe the new media will be better than the traditional.
One media, that's my opinion about the industry.
Yeah.
Although definitely you're planning to reach them to California counsels here.
I wasn't sure.
He told me if I can call it goes onto a samples and to kind of hold on to the intelligence exchange I'm thinking kind of 10 vehicles.
Sure no chunky yourself to healthy.
Oh, she ensures a merger with all you can send me hold Michelle Hello Moshe.
The corner, especially counties, Ohio.
Shovel will be.
We're gonna Hall.
Uh-huh, creating wishing you could kind of what you're going to have a policy to students for example.
On the answers here.
It looks like given that you called Myfico.
John Milton.
Is that going to translate into sales.
People are worried about it.
Got it.
The pipe.
Your second question the pandemic will indeed impact intact, our offline events. However, we are planning to communicate with customers about the moving certain England's online we're eating the life screening components, which will help alleviate the pandemic impact.
From the from historical perspective, Q1 is not the peak season for finding events in any cases, so the pandemic should not have too great an impact on revenue and then we also communicated with our customer about the postponing their events. So that even if our Q1 revenue is effected by postponed.
Months post opponents full year revenue will remain intact.
Yeah.
Thank you.
Thank you. The next question comes from line of they pay Chu from Industrial Securities. Please ask your question.
And you have plenty of time, Craig you know the Shanghai.
Okay.
Hey, how about I'm sure. It's all going to the conference you guys at my House.
I don't know what the ones you should go out and you don't really require that much at all essentially kosher told Susan do you want to be a phishing attack that towards that Jacob maybe I'll, let Tim get that's usually they found out is having a really magical.
Now I'm going to read your.
Akshay. Thank you chip.
Then they don't get it quite a yoshi Oh.
Translate my question.
We know that a company store with new economy Com town, and recently, making a lot of assets to expound a compound boundaries Oh could you give us more color.
What we've achieved but how would you maintain your competitive advantage in a common cause.
Thank you.
I will take a follow up question on Paypal, Yeah, you asked a very good question yes.
In terms of content innovation and production we have been doing a lot of initiatives are first of all we have been expanding our presentation format. For example, we previously only has taxed our flash informational Slash news and pictures now we are expanding to a more rich format, including short.
The deals all of your formats as well as like screaming a format. That's number one number one on the presentation format and number two our columns in content productions. We have mentioned in our prepared remarks that we now have Bob.
Many money, we tracked account matrix, including our sort of fixed pay out official account.
Such terrific pay our parole and a 36 finance and the series six.
The the SEC.
Secondary market.
We had accounts and 46 in.
Our research Institute, so to fix carbon and the.
Waves, which talking to other institutions as well as all use we are targeting after the younger generation lifestyle content as well as a super reveal for example, we provide.
Room and reviews for the three C products as well as new consumption products. So overall, our present patient format as well as the coverage of the channels and the verticals are both expanding that turns out into our commercialization of such a war of short form video.
Contributed a lot to our commercialization we are more have more C and customers. Before then we before we only have a lot of b and customers focus on both Intel now we are expanding into new Drupal, Nike PNG, a lot of and the beverage brands that are expanding.
A category of customers. So that that's helped us to increase our advertising customers.
As well as a pool, that's why we are very confident.
These telephone just mentioned that we expect in 2022, both of all advertising revenue as well as our enterprise services revenue will both grow and wakes up.
We will achieve our full year.
Ability in 2022.
Hope that answers your question.
Very clear thank you.
Thank you. The next question comes from the line of downtown from Th capital. Please ask your question.
Hi, Bonnie so much I'm home country. They go in the queue.
Well, it's going to be.
Yeah, well, the one Q cereal grains and they go out and do you know when you say kind all are going to do them. All we do think that all of US and you don't sure trunk download Cingal and I Hope you challenge people get cheek all Oh.
What did you do to keep creating boddington thingyan discharging commodity do got kind of a new cool aren't even car in your model you do though you go to shoring up with any questions or assignees.
Hi management. Thanks for taking my question I have a small question regarding margin. So the overall gross margin.
Hi, 65% up about three percentage points year over year, and nine percentage points quarter on quarter.
I Wonder what's the reason for these trends and how should we look at margin outlook in 2022.
Thank you for your question John That's a very good question, yes, our before.
Of 65% is a record high actually in our history.
That's a very amazing gross margin level.
Actually the year over year increase of gross margin, mainly because we recognize revenues on that basis that gives us almost a 20% rate for gross margin. If you compare every quarter compared to the.
That's the first three quarters of last year, we basically increased gross margin by almost 20% that's the bandwidth for young year over year improvement our gross margin the quarter over quarter growth margin improvement mainly comes on the economy of scale, which in other words, if you look at our revenue for the.
Fourth quarter due to seasonality the fourth quarter is our strongest quarter for the entire year.
We achieved almost 120 million RMB revenue, that's a very high level and.
Our cost remain a relatively stable level. That's why you know you will have a liberate here, which we call. The economy of scale. That's why sequentially. Our Q4 gross margin also increased a lot and to a smaller extent.
Because some of our revenues we recognized revenue on a cash basis out of Prudential accounting policy.
Due to our efforts in collect collecting accounts receivable as we have improved a lot in the fourth quarter. So before year end were collected some revenues.
On cash basis that also were recognized in Q4, which we couldnt recognize in the previous quarter was that that also resulted in a higher.
Gross margin in the fourth quarter, hopefully that answer your question Don.
No pretty interesting too.
Thank you.
Thank you. The next question comes from the line of Bingley Shao from S. W. S Research. Please ask your question.
Yeah.
Let me tell her she said when it comes to shoulder season, where she said I actually.
Sure thing course, especially with what you, though you'll either you yeah. We know we're gonna Peter it sounds like he can see events.
We wish it women's and kids.
Yes.
So what are they.
We won't be until you go you go vegetables.
No it sounds good but what do you see the person said, yet what kind of what do you need to tell you the exact.
Is that can you just can't be sure that these are empty, but no. It's a phrase I. Thank you for taking my questions. I have two questions. One is mixes I'm sad that that would be a company that lives by advertising currently the AD business is still the core business of the company, how we see the potential of advertising.
And other new business in the future either Vinci.
Yeah the ship.
Ooh hung at the mine.
Uh huh.
Uh huh.
Okay.
Hey, Andrew.
Yeah sure.
Until somebody behind you at that time, when I was at actually available here.
So quick one how much danger to considering halo, Marty that youll share the hull.
That's really useful.
People here without the drove the whole time.
Well, that's why we don't want someone to volume.
Okay.
Just redo.
Sure.
I'm looking at them down all leases.
Yeah.
No.
How can we open up all the do it for them.
He called me families with children.
Sure.
Yeah.
So for the Chinese having passed the home here.
Sure.
Hey, Julien.
Well now comes around if you like Oh it out so you got it.
Jonathan This is Jonathan.
Uh huh.
So call him.
Because he hasn't got a nickel on how you kind of tell them.
I don't know.
So if we don't know if it was I don't.
Understood.
Could you kind of thinking.
If we didn't hold Ohio.
Can you just talk to.
So I'm, giving.
Can you talk to real people, who will consultant.
Hum.
On comparison, you'll do that.
Thanks for calling my interview I would like to say I'm not in a very big fan of the advertising business cause no matter from the revenue escape and what are the gross margins they have limitations there.
Oh of course from our advertising business perspective, we are confident that in the future. We have at least 30 were 40% growth in the future, but I would like to say this.
We would like to put more attention on our new.
Our <unk> business like Enterprise service enterprise surveys are read.
U platform.
Actually in 2020 , one our advertising business and the venue Ada Enterprise service content for 60, 46, 6% and 47, 2% comparable off the GTA V respectfully, which indicating a very healthy revenue mix in.
In the future, we'll continue to build our second growth curve on enterprise surveys.
Enterprise.
In our initial suite hope this I hope this revenue will be the <unk>.
Important part of our future revenue.
And I and we believe that the driving by the enterprise. So this review platform thirty-six curb gross will continue upwards, along the new curve.
Thanks.
Yes.
I appreciate it.
This is a funny oils yoghurt into our Constitution yourself, Alex before how you should think.
Isn't that something that you're going to be is it going to quit.
Not really because it's people hear the triangle women, especially I could.
Hi.
Sure.
Oh, well things such as events occur.
We'll provide that in the enterprise service industry, what is the advantage yourself bensenville cuts enterprise platform. Thank you.
I'll take you through them.
But you can kind of hold me Jason.
Sheldon you don't like.
Got it.
Yeah, it's without clinical or any kind of your thoughts on Nashville did you say that you hit with Hudson City substantial notorious Valencia.
Because if you can't travel.
That's kind of normal.
As you go down to two seven times.
I haven't found anything behalf.
And that can have the genetics is on a political engineers, you'll find out or is that no question. You go Okay triangle Fidelio. If you leave China you called this out.
Maybe if you back all that.
Uh huh.
I'll continue with the call today, I'm going to take a short window to either you'll ship.
Sure.
So kind of you call.
Now fully manage I wonder if you can kind of shell will hang, but fortunately hopeful over the year.
As you opened up.
Sure I mean definitely you'll have you'll ship is that true.
Sure.
With that I'll touch on shortly.
How do you kind of answered your Huntington's, that's what youre feeling for that home Tonight that easily congrats hopefully I'm not so sure.
Sure.
It wasn't universal soldier.
So you'll have a tissue tissue, you're going to get on Colombia, Colombia, Okay.
Can you talk to anyone at wholesale.
Jerome kind of coming in line with.
Thank you Sir.
Thanks for your second question <unk> 36 to provide enterprise. So this review platform with three at vantage at first I would like to say is the.
It's a fairness and objective our enterprise service redo platform.
Independent of powerful, especially a venue a threat to the user reviews, which not be these off standby promotional purpose compare with other large internet companies with their own sauce and cloud products.
Our enterprise service with new powerful can be stay user feedback on software application sale and impartially in Huntington disease. She makes it efficient for both the south and the buyers and the second one is about the ability and the witness to serve our customers.
The second one the last advantage.
Our completed product system, where all regional saw the pinpoint for both the seller and Pilar in Enterprise service Enterprise service market and they start to build our persons earlier content such as the software protects library user review library key person tougher base and knowledge and that's costing the magical.
Sure.
Magical quadrants in our enterprise service off the west election platform Hope my answer.
It's enough for you. Thanks.
Yes.
Right.
Thank you do you have any further questions.
Well it doesn't it.
Yeah.
Oh sure hitting you.
Yes.
And the same questions.
As there are no further questions now I would like to turn the call back over to the company for closing remarks.
Thank you all right. Thank you again for joining US today. If you have any further questions. Please feel free to contact 36 of our Investor relations through the contact information provided on our website or TPG Investor Relations.
Thank you.
Uh huh.
That does conclude our conference for today. Thank you for participating you may all disconnect have a nice day.
Okay.
Yeah.
Great.
Yeah.
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Yeah.
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Right.
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