Q1 2022 Aurora Mobile Ltd Earnings Call
Ladies and gentlemen, thank you for standing by allowing them to Aurora Mobile first quarter 2022 earnings conference call.
At this time all participants are in listen only mode. After the speaker's presentation. There will be the question and answer session to ask a question. During the session you will need to press star one on your telephone keypad. Please be advised that today's conference is being recorded.
I'd now like to hand, the conference over to your first speaker today than they have done. This time. Please go ahead.
Thank you and that you have.
Hello, everyone and thank you for joining us today.
And the industry used was distributed.
Right.
Yeah.
So G Guang Dong XI.
On the call today are Mr. <unk> Zhu.
Chairman and Chief Executive Officer.
Uh huh.
And Mr Shan Nen Bong Chief Financial Officer.
Following their prepared remarks will be available to answer your questions. During the Q&A session that follow.
Before we begin I'd like to remind you that this controlling school contains forward looking statements within the meaning of section 21 E.
Securities Exchange Act of 19, J D flow is.
And then beat them.
And in the U S Private Securities Litigation Reform Act of Marquee 95.
These forward looking statements are based upon management's current.
<unk> driven market.
Ambitions, which are difficult to predict.
The company's actual results performance or achievements to differ materially from those in the forward looking statements.
Further information regarding these risks.
Risks uncertainties or factors.
Included in the company's filings with the U S Securities and Exchange Commission.
The company does not undertake any obligation to update any forward looking statements.
W information future events or otherwise except as required.
Thank you Wendell.
With that I'd now like to tender for them so that people understand.
Please go ahead.
Okay.
Thank you Sir.
Good morning, Adam.
You'll need to add a lot on the call.
Welcome to our mobile is talking about your total first quarter earnings call.
Before I comment on our July results I would like to remind everyone that a country that is available on our IR website for your reference.
You may refer to that as we proceed with the call today.
Let me start off today's call.
What's important milestone we have reached.
Kilowatts of talking to talk you through.
I will make a significant and important investments that we have already seen will further solidify our leading position to help our.
Customers to a higher scale user engagement for multi channel strategies that we can provide.
As we showed in the coupon onions call. It seems that we have completed the acquisition of majority interest in <unk>.
China's leading E mail API for consumer marketing and user centric transactional E Mail services.
Let's stay with the completion of the transaction in March types type a true breakout initiated the integration of the operations.
In this process.
We have sought to identify in the east.
Second how customers customers that we can potentially sell <unk> services into and vice versa.
Liberty would be at least as effective and efficient way to increase the revenue of the group.
We will provide updates on this in the future on this call.
From that perspective.
We are seeing house very strong process in the email surfaces. We have integration is email services into our U S U S product.
Israel has a leading position to help our customers from all veterans of the market to reach their users for our Omnichannel communication technology.
We believe this is a great product offering that has been longing for.
Q1, after another tool for us to be a very challenging quarter pacing.
I think it's due to a very weak macro.
Economic conditions.
As a researcher is off of a major economic hubs in China, which brought down the presale activities significantly.
Nevertheless.
If the effort by the teams throughout the company.
Breakout Matt another set of impressive financial results.
Operating have AMA in kilowatt of targeting Tau.
The key achievements in this in the course of our inquiries as follows.
Revenues were RMB 85 timeframe yet.
11% year over year.
Operating expenses were RMB, 19, $4 5 million down 7% year over year.
Operating loss was SMB for the fixed media narrowed by 17% year over year.
Net loss was element be $40 9 million represent yet.
Trying to get 3% improvement from a year ago.
Adjusted EBITDA was negative or let me be a party to media.
Significantly improved by 56% year over year.
Yeah.
A healthy level at around <unk>.
46 states.
Total deferred revenue was up our renminbi 100 medium for eight consecutive quarters.
We are and have been closely monitoring and controlling our expenses and our continued efforts to drive operating efficiency. Since late last year. These efforts have paid off at both our operating expenses and loss from operations have reduced our year over year.
We will continue to be very.
James Street station.
Of his bank expenditures now going forward.
Let me continue with the different revenue streams within the group.
In Q1, 2022 our developer services continued to deliver solid results with.
14%.
ER growth, which has been substantial.
Substantial 48% year over year growth embedded agile basis about our subscription. So I think it's a record of about 2% growth during that period.
It's a question of surface revenue were RMB $44 for me to an increase of 2% year over year, primarily driven by new customer acquisitions. During the course of the financial set that many banks.
Well, Chris Chris has contributed a sizable percentage of revenue that pushed us question and private car services.
So is that a customer equal Ping, an bank Guangzhou back log drop at Citi quite a bit.
Investment Securities.
Okay.
With these financially sound and strong customers retail price to continue setting obviously.
J J products and services to debt in the near future repeated with easy is a good strategy for us to further increase our revenue Apple from Franco. If this thing is as paying customers as we are in good position to know off their lease in order to provide relevant solutions.
And the way it's been.
And our reach to explore girl financial setup by SK I categorize as our products are well received in this sector of the market.
Value added services with aggregate medical services, which in coal revenue.
<unk> allows stoppages and advertisement.
Continued to deliver a solid 45% year over year growth to renminbi $75 4 million in Florida, and then be $18 eight media in Q1, 2021.
On the supply side of the J T allies, the traffic poorly bad stable during the quarter our effort in the quarter has shifted to better operate each of them.
Within the traffic pool in summary, what it means.
We are making different attempts to have for each of the apps outrage alliance traffic pool to search for a better match of one or more otherwise otherwise, but about advertisers saw that these apps can maximize their returns on disposal.
By doing so well if the traffic post the virus.
Mobile apps, and possibly benefit broadly across any stretch for growing that revenue to be generated here Bob is devices within the pool.
In terms of revenue contribution by product formats, both a light push an in app message could you be approximately 50 to 60 vessels 48, respectively in Q1.
2022.
On the demand side meaningful slightly better price talk theoretical demand remained strong as our <unk> product format remains to be very idea and an effective maintenance for reach out to their targeted audience in total baseball sub force contribute more than 90% of our <unk> revenue in Q.
1022.
During the quarter.
Demand for our direct customers have been very strong and country to country ability of more than 70% of J J I'll add that revenue stream, while the rest came from FERC.
Advertising agencies.
Major customers of J J R is consistency of replicate customers and market leaders across many industrial vertical key customers with baidu.
Baidu, Alibaba Tencent JD and LIBOR.
Here I would like to provide by Carlos on the.
<unk> better as DSO basis in recent months.
Starting from March of 2022.
Like I was saying our types of scaling back.
Typing space across all media is of advertisement in China.
We have felt the impact of COVID-19, Lockdowns in some key cities at the demand for our value add DSL phases has not being as strong as ever.
Anticipated.
Therefore, the revenue from value added services is bad debt to be impact in Q2 up trying to time it too.
Nevertheless, we've been able to things that we are turning around soon and the demand for our better idea. So I think you said will be again at the SBA economic recoveries.
Lastly, our very important product update on the value added services.
As we announced in the press release earlier. This week, we have recently announced our advertising mediation platform.
Where our proprietary SDK technology, we will be in the best position to capture mobile apps, the better price to assess other mastering.
A heightened capitalized in China, with greater ease and help them better monetize.
Advertising inventory.
This is this is a major and proven business model, obviously players such as a PPA loving what pop a resource had been having OSB app developers to grow and monetize.
Does it mean mediation platform solutions, we believe we will bring great values to the mobile <unk> before this arrangement.
With that I ran up half the call over to Shannon, who will share more about our vertical applications and other parts of the Q1 advertising to our news release.
Thanks, Chris.
Let's now move on to the particular application that mainly consisted of financial risk management and market intelligence.
These revenues grew <unk> by 6% year over year.
Financial risk management business contributed the lion's share of the revenue growth.
In the financial risk management.
Segment revenue increased by 11% year over year with a solid 33% growth in our pool.
We are very pleased with the revenue growth recorded in the periods, especially the Q1 2022 was a tough quarter due to the relatively weak macroeconomic conditions and the resurgence of COVID-19 in certain pockets of the key cities in China.
Nevertheless, the demand for our products remains strong.
During the quarter, we acquired.
New key customers and continue to retain many existing customers every quarter.
These customer spenders out the months.
Resulting in a very strong 33% ARPA growth year over year.
Some of our new and renewed customer making.
All licensed operators, such as Hebei and financial meaningful in home, we see bank in both gentlemen, just to name a few.
Our market intelligence product line.
Continue to sign up a number of new and well known key account.
Corporate customers during Q1 of <unk> to include the gain DP bottom to be talked to and some of that.
One of the largest pension plans into what is based on basically in Ontario.
Revenue remain at a fairly stable level, it will be a slight decline year over year.
Due to the macro environment slowed other business activities.
Now I'll go through some of our key expenses and balance sheet items.
Onto operating expenses.
As a result of our continuous effort to efficiently run the business tightly managed our expenses.
In Q1 anything to our operating expenses decreased by 7% year over year.
To be $94 5 million.
In particular.
R&D expenses decreased by 23% to renminbi 40 million, mainly due to reduction in headcount that reduced the salary cost and associated share based compensation.
Selling and marketing expenses decreased by 2%, let me be $26 3 million.
Mainly due to the decrease in market marketing expenses.
Lending in this quarter.
G&A expenses increased by 24% to really be at $28 2 million, mainly due to the reversal of payoffs.
Provision in Q1, 2021 that did not repeat in this quarter that resulted in a $1 5 million and.
And a $1 4 million share based compensation and a $1 million increase in professional fee input.
Adjusted EBITDA calculated as EBITDA, excluding share based compensation reduction enforced charges impairment of long term investment.
Change in fair value of foreign currency swap contracts, but I called it a 56% improvement year over year to negative $8 2 million.
This was made possible as we managed to grow our business grow our.
Revenue and gross profit.
Effectively controlling our operating expenses year over year.
And to recap the key financial performance in this relatively tough quarters.
We have managed to grow our revenue by 11%.
Q1 of penetrating to be a very tough quarter for most if not all businesses in China.
Gross margin at 69% this quarter as we paid more traffic cost to mobile App give look this falls G. G a license business.
Operating expenses decreased by 7% due to management effective and stringent cost control measures.
As a result.
Net loss and adjusted EBITDA, It has narrowed by 23% and 56% year over year, respectively.
During the quarter, we continued to streamline our workforce in an effort to further improve our operating.
Efficiency and ensure that Opex is we made at the optimal level.
Onto the balance sheet.
We're getting share two very important kpis that we always closely monitor.
Firstly is the alternate worthy.
It just shifted by two days, that's 46 days this quarter compared to 48 days a year ago.
<unk> accounting policy and cash collection effort and ensure timely collection of accounts receivables.
Secondly, the total deferred revenue balance, which represents cash collected in advance from customer has exceeded 100 million.
At the end for the eight consecutive quarters.
As of March 31st anything into the total deferred revenue balance was at historical high of $133 3 million.
Next.
Total assets were really be six to $5 5 million as of March 31st 2022.
This includes cash and cash equivalent of 273 million.
<unk> receivable of 40 to $42 3 million prepayments of $15 4 million fixed assets of five $5 6 million long term investment of one 7.3.
And goodwill of 37 million.
Intangible assets of $24 1 million resulted from the acquisition in March then we do need to.
And total current liabilities were at $394 2 million as of March 31, 32.
Me too and this include short term loan of $160 million.
These were all repeat in Q2.
Physically to our.
Accounts receivable of $21 6 million.
Deferred revenue of one to $9 5 million.
And accrued liabilities of 83 million.
Next business outlook.
Since March 2022.
The resurgence of COVID-19, and southern part of China has increased the risk and uncertainties for conducting business in China.
This has in turn.
Making business performance harder to forecast in the near future.
With that we believe it is the right decision for us to suspend providing or updating the revenue guidance until such time that the situations substantially improve.
Lastly, before I conclude I'll give a quick update on the share repurchase plan.
In the quarter ended March 31, 2022 we did not repurchase any shares.
As of March 31, 2022, cumulatively, we have repurchased a total of 92 1000 eds.
Since the start of our program.
And this concludes management prepared remarks, we are happy to take your question now.
You May proceed.
Operator.
Thank you, Matt you ask it.
Yeah.
Thank you for <unk>.
We will now begin the question and answer session. If you don't mind, if you wish to ask a question. Please press star one on your telephone keypad.
The first question comes from the line of.
Brian Kingston get from AGP Pease ask your question.
Great. Thanks, so much for taking my questions.
First question I have the year over year growth rate in <unk> lines have slowed significantly in the last few quarters. You've commented can you provide the factors that caused this how much was market conditions versus COVID-19.
Okay.
Right.
Okay.
Yeah.
Right.
Alright.
I'm, hoping you can hear you.
And I think we can do or excuse me the S. P. J your line is not clear.
Okay.
No.
Hello, better enough.
Yeah.
Yeah much better.
Okay. So I think that's the same thing right I mean, they call date the call.
They impact.
I've had the tightest market.
And.
Yeah.
Radio's still appetizing budget, so they're off at the end.
Our teacher allowance.
Alliance revenue.
Because our.
Our types of space getting like J D Alibaba alright, a wasteful.
But especially J J D at Alibaba.
That obviously is affected by the logistic.
Which is embedded heavily by the COVID-19, so they reduce their budget heavily in Q2.
We see some color.
Pickup.
In these moms.
But not as well.
100% as well.
In Q4.
We still need more condos in next quarter.
Got it okay. Thanks, and then.
Similar question on subscriptions were down to single digit growth for this quarter is that all is that generally COVID-19 too we've got.
You've got more churn on some of your subscriptions just maybe take me through that.
The factors that led to single digit growth compared to what historically has been a little bit better growth there.
Yes.
Especially the surface I mean in Q1.
The single most mostly.
He called it because.
In March.
Hey call Center has been a lot of them by the week or a week.
And we see the Oh.
In Q2.
The first question. So basically we have kept it will pick up a recover.
We will see couple of digital.
It's still a growth.
Q2 and feel free.
Right.
I'm just curious with subscriptions.
And how do they change when there's lockdowns they stopped paying their subscriptions and that's what I'm confused about why it was slower growth.
No.
The impact is basically for the suspicious that base is.
If impact the new customers, so I never ideal customers for these basically delay the.
Contract renewal and the latest paper.
Right so.
Randy a lot time happens, we just cannot.
Ship ship, our customers signed a contract with a customer we cannot ship at shipment.
Anybody.
A customer so we cannot close the deal with the customer about in Q2 from Q2 week Uh Huh.
That's really a contract or something like that two two to two <unk>.
It was the kind of appropriate.
Okay, now with Lockdowns easing, albeit probably slowly when your segment is beginning to improve.
So I guess, how do you think also then about advertising budgets it seems that.
Still pretty weak even without COVID-19.
Given the economic uncertainty so maybe take us through how things are improving in the last two months of your business versus how you think the environment's changed maybe permanently for the year.
Okay.
Hey, Brian This is Shannon so back to your question.
No.
The mine has a slowdown that's what Chris has said in the script. So while we have seen this thing says.
Been slow compared to previous quarter or previous months.
What we have seen is if you look at a quarter over quarter. We expect the Q2 AD spend revenue to be even potentially lower than Q1.
And if you look at what we are looking forward in the next couple of months, we expect the.
Demand to continue to be fairly slow in Q2.
Maybe into Q3 too as well.
Okay.
And then the new products you've launched.
Talk about how you see that.
With adoption and potentially impacting revenue given those conditions.
Yeah.
Okay.
Okay.
Okay.
So as you know.
No it's very difficult for those.
Oh, the tighter market so the AP piece.
I'll go on the traffic.
So they have their user demand for day two.
Employee monetization efficiency right. So I mean before they properly <unk> one eight net loss, but currently they are and what they will what.
<unk>.
Free all fall or even more.
Advertising networks to improve the monetization efficiency.
Eventually they can't employee like.
Like 80 law.
The cab.
So I think this product can bring a value add can have dose <unk> Ken.
Monetization of that or indeed in the currently.
Very challenging moments, so eventually that will help out.
JCR lines I think so I mean.
In oversea market.
It could be a lobbying and our resource base.
I mean.
Product hadn't Ken.
Yes.
Okay. Thanks, so much.
Thank you. The next question comes from the line of Ryan Roberts from minus capital. Please ask your question.
What is it like a hawk.
Even though if you play out that way.
Yes.
Are you.
Yeah.
A couple of them.
But I think the key is real.
Sure.
Commodore for Nick.
Sure.
Hey, Joe.
I've got a comment.
I'm going to give you another one.
Sure Nicole.
Industry Cube, Mcdonald's, but Sean with the major holidays for sure.
Cool.
Jim.
Yeah.
We are going to give them a gain would go down any color you Sidney.
They got coupons them yet.
It sounds like that so my two questions are number one on dependent gross profit margin, it's going to compress a little bit from about 70, 677% to down about <unk>.
69, and I wanted to know kind of what's behind that with respect to the kind of the you've tried to pool fuel costs. If he gets it.
New share if management can give us some more color on like you know is that is that kind of a temporary everything I know your guidance had been over 70% historically, but is that more like a structural thing that we're seeing we're alternatively, you've got like you said.
Kind of shifting color in terms of like what kind of partners you are asking for more share that he didn't know and number two was more generally on the outlook and kind of the overall conditions of the market management seems to kind of indicate that demand is kind of holding up in the industry. It.
She would rebound I guess after COVID-19, but it seems like there are some other headwinds with respect to data collection and so on and so forth.
Actually it would be a tailwind for <unk> for a while given the fact that it has a targeting data.
You.
You had better ads I'm kind of curious if management can walk us through those two points.
Hey, Ryan just Shannon.
Your first question on the margin, yes. This quarter, we have been giving more shares of the revenue to the traffic pool in the alliance business.
I think there's something that is a part of the negotiation that we have.
Congress them. So I can say that going forward, but then looking now for the next few quarters or throughout the year, we expect the margin to be around 65% to 76, 5% to 70 range.
So it is something that.
If you look at what we have as well.
Besides <unk> alliance the other businesses like the likes of subscription.
The application of fixed financial risk Spanish and those are the ones. We felt much higher margin, which is above 70. So this is the only.
Segment of the business that we are having a.
Relatively low comparatively low margin. So I just want to give you some color in terms of our the makeup of our margins so majority of the.
Businesses have to having 70 and above margin.
So just a first question and then second on the outlook again, if you to what we have in terms of the revenue, let's say, we segregate them, we can separate them into.
Value added services and others, you're looking at.
Other services like what Chris has said.
The demand for the Ed.
Spending at.
Revenue has been low since beginning of this quarter. We just play given the late March from March onwards.
The demand for advertising has been pretty low if you look at what Tencent is announced.
Again.
Q2 revenue is expect to drop again for about 20% to 30% I don't think we have any better so things that would be pretty tough for value added services, having said that for the subscription the lack of substitution or our financial risk management or the market intelligence door. Those are pretty okay. Okay in a sense that like.
What Chris I'd say in the earlier calls.
Answering the earlier question the Lockdown did not.
Diminished demand for these services, what we did is simply delayed contract renewal delayed cash collection from customers. So the customer attitude.
Just the fact that we are not able to stand our contract we are not able to chase our money. So those are the belief that we are experiencing because the fact that you don't have contract we cannot provide service we cannot record revenue so.
So we don't see any diminishing.
Disappearance of customers.
As a matter of beliefs.
Okay, and then maybe if I can.
That's kind of a follow up.
We start two follow ups first on your first one on kind of the gross margin.
Issue.
So I guess I mean.
When we first started talking about the J D Alliance and it kind of being a unique traffic school in kind of a very differentiated offering it sounds like this is something that's exacerbated frankly ADP companies really were kind of effectively price takers because.
You had such a unique kind of.
Product to offer them to monetize up to monetize that without it they were kind of on there.
Relying on the standard kind of 10 cents or whatever kind of sort of platforms to us of course, the ads on their on their on their apps.
But with with the compression in kind of I'm, sorry, you mean, the increase in take rates I guess with the compression in margin there. It seems like that's not consistent.
And I guess I'm like well I like more color there because it sounds like maybe there's some pushback or work for larger platforms quite show goes away asking for more share because they realize the value of their traffic, perhaps and then kind of maybe on the second part is kind of on renewables and demand side of it.
I understand the weakness in Korea, and so on and so forth.
But it does seem like there was kind of a.
Again, I think our board with Doug since it but it does seem like there is some overall maybe.
I don't think some months back half second half loaded potential growth there and maybe if you could give us some color on on where if you have specific burger specific verticals that youre seeing either strength or weakness and that would be helpful. Because with COVID-19, Lockdowns. It seems like there are e-commerce and other kind of maybe verticals that might actually see some growth.
Which maybe could be kind of a yeah.
Yeah, well into the second half and so if you could maybe touch on those two follow ups would be great.
Excuse me.
Have you finished with your questions.
Yes.
Yes.
Brian on the first question, Yes, you are right.
We are providing is less specific unique services to those.
After that Mick.
Smart monetization, but what we're seeing is.
First quarter of 2022.
Due to the lack of demand or the reduced demand for advertising.
You can see the <unk> reprised at the advertisers are willing to difference has reduced right because the fact that the demand has decreased so while we could not do is we cannot.
Just pause on the reduced CPM to our App developer. So in the center, we are taking a hit.
In a sense. So that's why our margin has dropped a bit.
And then you guys see you soon.
Fairly good stood at 70% 69%.
Yeah, you almost two questions. So what was that almost sounds to me looks kind of like look at like a pocket subsidy that you're offering the app developers.
Which is you know what.
It's a little bit different as you kind of saying, there's a structural change in revenue share.
With with the App developer so.
That is that a better way to characterize I guess the impact on margins that you were kind of passing through more more.
More revenue kind of on a temporary basis.
Alternatively.
Actual structural change in how you're sharing the address.
Okay.
Yes, there are some of the arrangement that we have with the FDA blip.
I had a fixed CPM arrangement, which means that.
If let's say.
As opposed to give them a dollar renminbi E. C. P. M. If we received $2 of course, we got a good good margin you will receive a 115.
C. P M from customer, we still have to give them a dollar.
I mean to the <unk>, that's what we're trying to say.
The amount that we have.
Arrange to give to the active looks like it's kind of a fixed or for some of them got it got it okay. That's.
Squeezed there okay. Okay. Okay.
And then the second question was the overall outlook.
Yeah, just the overall outlook kind of really on maybe second half maybe if you could give some color on the different verticals that you're exposed to.
Gaming.
The recent announcements about new games being an ounce.
It would be released that maybe there's some kind of E. Commerce lift that you may see cause I think tell all Internet E. Commerce players quite sure. It was a way of kind of a year.
And so with some COVID-19 lockdown, maybe there could be an offsetting effect from that and demand from those advertisers that are kind of really offset the maybe gaining and some other kind of a weaker on Bedford.
I guess, it's not really a benefit from COVID-19.
On the other hand, maybe I could quite astute.
Silver lining.
Well, we as soon as we have seen a lot of our customers the subscription related customers has gone overseas.
The lessor BYD, maybe some of the delivery companies. So when you venture into overseas too high right.
Did you go to southeast Asia, and China. They are using all pushed services as far as Asia and to set up a new new new venture.
We are providing the services there as well so what are you trying to say is reduce the new.
Venture on new new growth driver in the two high yield issuance.
We are providing the same customers.
Going into overseas.
Yes market.
Even that aside some of the service Asia customers base selecting to use all have chosen to use our push services one of issues one for my home country, a Malaysian company a gaming company gaming publishing companies for some reason I think for a good reason they have chosen <unk> quanta services.
Two to push their services in Malaysia. So it is something that we see so long as we are doing well in performing well, providing good quality service and pushed services I think we have a good chance of getting more services in southeast Asia.
Probably I'll give you some color we are visibly setup.
Companies in Singapore, and the reason why is we do see some potential new businesses or signing up contracts in that area. So if you look at what we have forecast internally aspect.
Overseas related revenue to be around.
3% to 5% of our subscription business.
In Q2 and beyond.
So there are some new growth drivers, where we have seen.
Amidst this so call relatively set COVID-19 environment.
Right right.
Maybe kind of one housekeeping housekeeping ones your housekeeping questions if I could.
Could you please give us an update on the size of the <unk> Alliance kind of.
The Dia you pool.
I think you guys did that last quarter and good luck.
That transparency is great I'm sure you'll appreciate it.
So the <unk> pool in the traffic for digital alone still fairly stable as well I think in the last call. We had it at about 190 million zero million youth.
So that is fairly stable.
The the.
The numbers are going to get to is it.
E C. P. M that we've seen is decline that you see quarter over quarter, we expect it to drop about 20% to 30%.
And that's because as you commented on earlier question, that's more or less kind of market softness if I got that.
There have been any kind of meaningful churn E. J D Alliance kind of you outside of let's say normal app attrition.
Earlier, you announced some pretty large kind of.
Marquee type wins, you know it sounded like anyway.
There been any change in the composition of reasonable.
No I think there'll be any big loss, all big churn I think what we tried to do is even though let's say if you did.
Did not increase from one 9 million that's fine well, we have seen as we are able to increase the exposure.
No that we talk about I think a couple quarters ago, you used to have like 0.5.
So so long as you use out there we are able to we are still able to make good.
Attraction, so long as we increase the exposure.
The increased exposure of the <unk> you were able to increase our revenue.
What's the AD load these days.
Roughly.
Yes. This is Stuart.
Our $4 five because of the lack of demand.
Because of lack of demand.
Yes, because a lot of demand we are now able to show as many as we would like to.
I think we took our crew to get to 190.
Million exposure automobile use.
Great. Thanks, Mike I appreciate the color.
Thank you.
Yeah.
Linda if you wish to ask a question. Please press Star then one on the telephone keypad.
Dear speakers there are no further questions I would like to handle the call back to <unk> for closing remarks. Please go ahead.
Thank you and Danielle.
Thank you everyone for joining our call Tonight. If you have any further questions or comments, please don't hesitate to reach out to be <unk>.
This concludes the call Goodnight, Thank you will.
That does conclude our conference for today, Thank you for participating.
Okay.
Okay.
Okay.
Yes.
No.
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Okay.
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