Q4 2022 iQIYI Inc Earnings Call
Before we proceed. Please note that the discussion today will contain forward looking statements made under the safe Harbor provisions of the U S.
Litigation reform.
Thank you Mike.
Sure.
Our substrate and.
Certainties that could cause actual results to differ materially from our current expectation potential risks and uncertainties.
Now limited to those outlined in the public filings with the us.
<unk> does not undertake any obligation to update any forward looking statements.
It's been quiet and applicable law with that I'll now turn the call over to Mr. Segal. Please go ahead.
Hello, everyone.
Got it.
Well, yes.
Yes.
Perfect.
Well Q2.
Sure Rich, it's Oracle Hot.
Well remember.
Okay.
Okay.
Free cash flow.
W. Griffith.
In Q4.
Zero Congress.
Subscribing members.
Our growing by over 14% annually.
Sequentially.
I'm Kris Ethan.
As a result, we are continuing to gain market share leadership in terms of the vaccine in the dominant category remain in China.
These new license.
Hum didn't perform at the highest.
Cost of our membership.
In our history.
15% annually and a 13 person sequence for that.
In Q4.
Average daily number of total subscribers.
111 on Thanksgiving a graft.
Sequential math addition of more than 10 meeting.
Number of subscribers number members as of the end.
Of December was 119 pumps.
Yes.
Alicia over Lucky compound.
I'll jump.
In the meantime, well.
Advertising continues to recover.
Uh huh.
The sequential growth rate of <unk>.
5%.
Yes.
No.
Got it.
Sachin.
79, non-GAAP operating profit.
87% compound.
Lots of color.
non-GAAP operating bacci continue the tool.
For the fifth consecutive call her and Oh, sorry, Christian if you will for our salt.
<unk> operating loss.
Embedded in our business model.
In Q4 free cash flow reached over RMB 840, <unk> grew by four seven times and compelling business you will see.
Yes.
We have been generating positive.
Free cash flow look who consented Congress.
Now all of a sudden in Q4 confirm that it's not a surprise.
Oh Q4, Matt maybe just a few desktop.
Uh huh.
Oh, two full months of multiple years.
The driving force behind the all pilots on the field trip that fast.
If you had to produce and deliver a highly quality and popular content.
Content.
It's all yours.
Nicole competence.
Hi, It's you always know now and seeking them out.
The sea salt.
Brendan presentation has been elevated from LG.
Capable of creating blockbuster to achieve blockbuster Pascal.
That's perfect.
No tool all statement.
After the closing of Floccule, some heat cool, we launched or no drama, but not caught homebuilding.
Come on.
Another impact is huge.
Right Okay.
<unk> back to us.
Bucket two bricks I achieve popularity index of 10 fold the highest peak homebuyers you'd see that highest daily user time.
Despite.
They lay all of that and the habits of membership revenue.
No no comps also generated tremendous social box and that's it.
Tom.
And you shouldn't model phenomena.
That's oh, the salt demonstrates that the protection.
The creation of original content.
Hard to answer.
For what.
What true cycle.
A flywheel effect have been released.
So stable premium come in a lot of growth improved cost efficiency and all the.
We have a company and to create more premium content. Therefore, we have firmly believes that success looks like.
We call that the fees.
I'll pass the performance in the future.
Slightly.
Why is my belief that all honestly long summer production.
It's unique and dependent of Ethernet called <unk>.
Cost, creating blockbuster has no shortcuts Comcast Bell.
Well, we all forget.
We invested.
Numerous.
Policy, including Canada.
The talent and technology.
The new structure at all.
Alright, well comes in the strategy back in 2014, and they made a substantial.
The substantial soon.
Two follow.
After almost a decade of presses.
Yes.
Even though most of the risks in the two years.
Investments in <unk>.
I didn't know counted almost immediately.
I'm going to be like.
And then we have put in place in house studio, that's bringing together the industry's most creative tenants.
I will also gradually and less complex, they've got Cleveland and the highly efficient E six and banking system.
Castro Aaron critical moment in the lifecycle.
Lifecycle of come into production.
As a result.
We witnessed a gradual.
I call it yes or no.
Among the pizza.
We had last year the propulsion always blown prevention increased 20.
<unk> person in.
In 2018 to well over 50%, who love it as a tool.
2020 tool the original content accounted for over 60%.
Blockbuster summer and also come to build it over Christmas.
Yeah.
As we fill in Q4.
The total subscribing members, hence by Oh, no content doubled year over year.
We conclude that.
We drive the Choctaw unwanted hips, that's a relative called other.
It.
The entry barrier.
Hi.
In the past 12 months.
So there's lots of capital Lindsay.
Please see total around you have dollar one on the sweep healing.
It moves that Omaha.
We are truly appreciate it the generous support of our investors.
As confidence in the future of IP, we have a healthy balance sheet.
Okay.
They're making business the management well be able to focus on holiday.
We've seen the company its growth.
Even more value for less.
Okay.
Looking out to 2020, you see a problem in Germany.
Great.
Oh and sell them something.
Annual goals achieving high quality growth.
I'm there.
Keith I'll go.
Growth in revenue and operating profit.
A little life high quality growth, we will continue to be he wants to eat.
Our core business.
Oh, well the main caution well assessing material new business opportunities.
We will continue to invest in pulp Friedman content to maintain a high quality, yet, yes that worthy five to come in the pipeline and the two months you can high arent why Mark's team members' benefits.
So those are.
I'll close eye.
Industry opportunity is powered by having you called a lump amount.
Peaceful Hesitance German media content and G suite and <unk>.
Other innovative technologies, we will fall.
Application.
In the non phone, we do invest together with our strategy to put them in there too.
The arrows.
Improving content production efficiency compound.
Also on the promotion.
We believe.
Oh geez.
Our strategy will help achieve even more potential for their overall.
Our overall business efficiencies.
Greensville bad at all.
No.
That goes through the details confirmed that all our business segments, starting with membership.
Membership sometimes.
So is it that well.
Alright, I'm beautiful I'm seven easily the highest in our corporate history.
Naturally that you.
Increase of 15% annually and the 13% sequential that absolutely had a very strong quarter.
Bulk box our content, we utilize to the.
Often these get to attract and grow our subscriber base with us.
Matching the increase in AR.
Yeah.
Oh, the glamour of pet health and strong growth in Q4 the average.
Daily you'll start of total subscribing members was 111 6 million at Asia of 10 6 million compounds.
Pete.
The total number of scrapping number was about 119 platelet music as of the end of December our net.
You shut off so I can quantify muni compounds will be at the end of September .
Right right impulse.
And I have to see the improvement in membership drive trial with the propulsion of annual subscribers increased significantly in Q4 comparable comparison.
In parallel last year.
We believe the higher subscription rate.
Well annual packages well helped improve thickness on the long term monetization.
In Q4, a month of that well.
B 14 pumps one seven.
Food precedent sequentially, we had Florida incur.
Increased membership pricing in December , which will drive an increase in the future.
For our membership in this we are committed to grow revenue in.
In the long term, we believe our well have plenty of room to grow when the accounting rules on aggregates content quality and definitely more ideal toll users.
In the short term.
G clip.
To optimize the growth of copper base on the membership to Asia. So that more people can fly all content and does the relationship between the platform and the user become more enduring.
That's only a SaaS.
As a monthly arm of the annual package is lower then they package literally enroll more and more subscribers all having might be impact.
In the short term however, we.
Value the relationship with subscribers.
And we've been asked a lot from trust, we've built with subscriber as well.
Well, we're even more strategy.
In Q4, they continue to look to spend all equal same membership benefits package, including pools, they've IP best suited in the air.
And let me say a time at this company, it's all force equals a fast you bet.
Okay.
Moving on to content in Q4, we continue to leave the market.
Tom in that mountain shelf, Oh cutting tool in Madden state that we remain number one in terms of.
Five two deals for both overall commerce.
Equally there's kind of a category, reaching cultivate new highs in the past two years well variety shows. We are also remember what in terms of effects here.
We've launch of popular or even multiple got including so that's what's cool she got docs.
Many more players.
Most of you on the phone.
2017 tool.
Uh huh.
To supplement its how many tools wasn't a harvest.
Oh drummers.
Most of the number of blockbuster that hard work.
I want to see.
I'm not even really across the year.
First we announced a fine.
Popularity impact over all work pattern, it's all in a single year well four of them.
Oh renewables not only in the Bronx, all counting on as yet.
The significance Internet improved off of natural affirm mess and Jeremy It's Paul.
Yeah.
Yeah.
Second.
I'll come to that Nathan.
That works.
Including molding moldings.
Last one for me, Yeah, I'll deny rep resumes entirely on Wow.
Some of your best shot.
Hum.
Laughter tenant salary.
Hum, sometimes do that.
And you will lap.
Speaking.
Tom.
Yes.
The first well.
Stringent health of top tenants I'm told there's room under the pharmacy and they use each perforation.
Okay.
The heart of genius 10, patchy menthol.
Sure.
Sure.
The timing of all relates it was even less saw something that yeah. The five blockbusters with public knowledge and depth of 10000 Wow.
As it relates to at the beginning.
Yeah, Dan Sommer of Acacia.
Sure.
They're high quality isomerous well in the release.
Regular intervals.
Users can tend to know.
We actually got more stuff.
Karen it's felt at any time.
We also maintained our past of war of money invest in Austria.
The top 10 highest millions of Chinese.
Hum in 2007.
The other one I E Crusade farmers and for what Oh, there's no production.
Oh original title older and their grit Smith.
Why.
First I know you had to take that.
As we move Unspools consulting suite, we will obtain all the momentum and the plant alongside a number of highly anticipated drama.
Our email protection unchanged laugh with home and garden.
And.
Not caught well understood.
You can feel what on the highway.
Our yields are.
There are no cost become another my feet tall nationwide phenomenon.
Cool.
Name a real highlight.
It highlights first it has the highest honeywell lawyers here and that's cool.
It's S trauma that folks are probably like I say Oh 10000.
Okay John .
Skills, social class and the high water Mark as people thought Scott well.
Oh, my various domestic Chinese drama.
Huh.
Hi, Scott.
Well, if I'm right with broke cockpit on lately.
No.
That work, including CCTV and B R E V O.
Oh, it's caught all.
All of a sudden you'll ship.
That's also honestly CTV it that will come on the so called <unk>.
Has been watched up by over 300 million audience so far.
Sure.
Cool.
Alright, awesome key farmer.
Well it'd be about such as the Asian customer.
The FEMA hunters raw mats.
Cool.
Sorry.
Yeah.
[noise] gives team tumbled.
The fourth.
Our spirit.
Thank God, we also yeah.
Molly dramas such as.
Our mouths to go internal goal we all.
I'd say the alcohol low income and we are putting in place what you do.
As if that's wrong.
Paul.
Or is it all or are these shows what about continue to launch multi self installs and the interest yield profile.
Well I'm focused on building long term value.
Enhancing synergies between farmers and Melbourne with yourself placed are also anticipated to see a slate of bell.
Oh no movies.
Okay.
And in Asia.
I've either worked testing gives me macabre sequential that in Q4 total revenue of one and RMB, one 6 billion in.
In Q4 of 25% sequentially on the stop sale that person.
Which was significantly narrowed from about 25% of annual that decline in Q3, you can see it in pet.
<unk> patients.
<unk> also called her.
And so I took the late for Q.
Q4, Brian the ASP trends towards double digit sequential April and year over year decline continue to narrow that or is that on acquisitions.
The critical roles, what's benefits, while forest hills dramas on number I think is so attractive.
Second.
Domestic we are opening a booth that advertising and what types of confidence on the increased demand.
Growth in sectors, such as that.
Internet services.
He should.
Pascal.
Yeah.
Having ink tool to southern <unk>, we believe we are opening.
In support of the economy the car right.
Pulsatile opt out Brian .
For the full year 2010, do you see a path to see healthy growth compounds.
Me too.
Paul from months to add a shift.
Our strong revenue growth, both sequentially and annually driven by IPO. Some of them, Obviously foundation and then Taylor you made sure if he will support advertising from e-commerce, and how that influences on the Almac in centers.
He believes that achieving call you'll start growth is highly attractive for Ottawa, Tennessee, Iowa has there.
Families are appealing content and.
Once that technology, we will be able to effectively help advertisers to increase their brand name for <unk>.
Yeah.
In a field trial will adopt.
Multiple slots for it to improve as well.
We will focus on growing revenues and offer our pillar campaigns.
Last name.
Meanwhile, we will continue to adopt that as appropriate.
Subscription package and she likes reached similar to Matt's place low priced.
Yes, you make sharp here.
Yeah.
We believe the solid growth in your life basically subscription package well drive.
England to rate on our platform and it leads to revenue growth.
Moving on to technology.
Yes.
Technical innovation as one of I'll call them out.
Continuing on slide promote bee duly industrial industrialization and the improved U P shouldn't say incumbent in the protection and its future so in.
In Norway.
You can always have technologies.
They started to export aig's related opportunities.
<unk>.
Neither our 2020 at school.
Paul Music, we thought.
They've been labor all of which video entertainment resolve years combined its cutting edge technologies well in PA and she had to further improve your patient thinking comes into production distribution and the other areas.
On February 15th we announced that the strategy of operation will be inspected.
And both company well driving that.
Yeah, Paul So yeah and.
Do you see your application.
The morale soon by tools.
My fault.
Okay.
Hit the pets that come into the dealership and the promotion of one offs.
The earliest IRA IRA we all ought to be in place.
And then they would call off your ship, where I'll flip the accelerate.
Progress in Aig's season related areas.
Look for works in payment.
More applications as we've tracked it all technology advancement.
In the future.
Yes.
Mobile absolutely opiates.
I T light in Q4, Ikea lives, which broke even.
But for the first time I know you called it fall at the revenue growth.
And that sequential that we'd continue the tool developed by mix has intermodal O'brien's yacht.
The new address the pulp it basically substitutes and package.
What's now the students about yields are.
Moving on to our overseas business in Q4 overseas membership.
Revenue increased 70% year over year and the growth rate in America and the color that you can say there.
70% original content is fast.
Farmers are from Honeywell or as little Chinese drama Neuroblast became.
The pulp production in Thailand, Philippines, Indonesia, South Korea, only in Sweden after effects.
They are also the likelihood that Oh, there's no drama released in Q4 attract Ottawa tightening budgets.
[laughter].
In 2000, and the public school.
That's that's fully accommodated.
Iconic.
We had substantial improvement in financial performance isn't that the operation in the Bakken shale.
Our unique content production myself biology helped a two part deal.
Continue on stream.
Blockbusters in AC.
I'll call back right.
Our industry, leading or isn't known content potential ability.
Super L O fish comparability I'll call competitive stress on the key to all that the growth in that long term as we move to solve them and do you see me.
Our commitment to delivering high quality growth.
We firmly.
I'll pass it on.
Yes Carl.
We will close that.
The flywheel effects of Avi Smith from it even higher.
Have you with us.
On the stake holders.
Now, let me pass it onto Q2 goes from off the national apartment.
Yeah.
Thank you, Mr Cola and Hello, everyone Q.
Q4, with a record quarter for our membership revenue operating profits.
And cash flow and the free cash flow.
The operating margin continues its been driven by operating leverage.
In addition, we have raised around one 3 billion just doctors over the past 12 months to remove it and hold our hand.
With operational and the financial portfolio is in great condition.
So there isn't a capital structure. He has met the amendment will be able to post a very high quality growth and long run.
Now I will also like to give me this opportunity to review the over performance for the year to date and Ya Chu.
Yeah.
First we delivered what we promised earlier in the year, we set a goal of reaching non-GAAP operating profit how often you breakeven for the full year of 2022 and ended up with non-GAAP operating profit.
The $2 2 billion far exceeding our expectation.
Then we shifted our operational focus for cost Downs in Q1, and Q2 to scale up in Q2, and Q4 and growth.
<unk> growth strategy in a bit of a year, which result in a very healthy expansion of March here membership for services revenue and a profit in the.
The second half.
The momentum continues beyond the December 31st 2022.
And in addition, we also promised to protect the interests of all stakeholders.
The challenge of that overhead despite extremely extremely volatile market.
He made it that as well.
Okay.
Secondly, we humbly ask our investors to look at beyond Ikea, basically that Shimon and revalue the long form video industry as a whole.
ITE continues to outperform twitching of Alpha.
The industry was quickly recovery plus in 2022.
A beta.
Driven by the structural change on the supply side list.
This quantity more quality more concentrated supply our platform originated accounting.
Two highest hit ratio and more efficient cost control.
On the demand side as Mr. Gao mentioned local media remains the fundamental entertainment looking at market.
Over time, the higher quantity counted naturally due to the higher high willingness to pay at the higher or.
And the virtuous cycle and it will see a more promising future.
Certainly we would like to thank everyone, who supported us very dramatic 2022.
Including our users employees content partners.
Shareholders, if the bondholders creditors.
Our commitment to achieving healthy business growth remains unchanged.
One change and we are more confident than ever.
To generate value for our stakeholders in the long run.
So if you go to financial data for Q4 and fiscal year 2022, please refer to our press release.
I I'll watch website.
Now we will open the floor for Q&A.
Thank you.
If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press star two.
Yours does speakerphone, please pick up the handset to ask your question.
We ask that you. Please ask your question in Chinese first and then in English.
Please limit yourself to one question, Paul Boston, After which you maybe joined the queue.
The first question is from.
Choosing Zhang from CIC. Please go ahead.
Thanks, Dan.
Our sandbox had gone through J E T.
It'll come down to about.
And thought that there were three thought yeah. Thanks, Jonathan our compound so stay tuned.
Something going broke.
So sachin.
Good names.
Uh huh.
Concerts without this season by the Korean maker.
Okay.
On the money to work and things like that.
We like what you can do or they don't say on Baker turned on their balance sheet, Oh, yes, Okay. Gotcha Pumpkins, you don't make Oakland, Berkeley, I'm framework right.
And I would say that myself.
We're taking my question.
Tradition, clearly macbooks wasn't right.
With me not to.
Hum came on in.
In January .
Ill hop out 19 months.
Okay I'll call country.
Okay.
As I mentioned in the last two quarters.
Oh, Yeah, yeah yeah.
Purple.
Can management share with us or talk to mcmartin Warrington umbrella.
Okay.
And how.
How shall we think about your number I remember no longer.
Thank you.
Okay.
The whole point.
Meanwhile, I'll talk generally home all that.
Total.
Look absolutely.
Hum.
Yeah.
Yeah I'll hold it.
No non Florida, homebuilders, who have empty anymore.
So she didn't know how quickly that when your neighbour.
We wanted to call that.
Hello, Matt Yeah, Youll see.
First of all QM and content with excellent.
Our expectations and just part of the overall content performance our insight.
Oh gosh I hate to answer that question in two.
No that's definitely what insights are you know right.
Eastern time to answer that question.
And what do I know.
So we tend not to do that.
I should do and keeping tight sushi and coupons in the high.
Actually a few times she cannot.
You mean key Shia in that kind of woman either to be honest.
We don't see huge balance sheet Simo eagle bulk to leap.
One of course, she and I didn't mean won't gotcha really sunk in the times you're at.
CIT Bank.
We didn't.
In Q2, okay.
She was your I T bolt on even the controversies Ya Li Blackhawk.
As a media platform one of our main goals for I C E O.
And yes, it's true Majesty suffering.
That's right.
But I was curious looking.
Looking at the content I E.
Pass here, whether it's that's what I'm a lot between Perry in the home well Blue Moon on New license again is chasing.
I'm sick or does he did not capped we can see the continuity and diversity of <unk>.
Okay.
And Cheadle.
Susan.
Oh, well attended to deploy blah blah blah.
Amy <unk>, who looks like how do you treat you know to the high.
<unk>.
So you didn't you.
Cushing.
So I can't actually I'm not.
She only you'll leave each one with xiaomi.
He's going to cause you to either the tissue.
The first our competitiveness.
I'm sorry, he has laid out the strategy, we have established a number of factors and distinctive in house studios, which cafe and most creative talent.
She is also in line with.
Characters characteristic Oh, that's created industry at the same time have also established a strong supporting ocwen, which provide a sophisticated mechanism.
Two improving the efficiency.
On production and increasing the profitability of the shelf.
Yeah.
Well, Mitch any league for the hottest Fujitsu buildup gunshots, you're just going to use it you can't buy any people because.
Traditionally people not in the Eagle unusable.
Second it's our intent on developing content management system, we have established but it doesn't happen and efficient.
He's been making come from production management system, which covers every critical moment, an entire cycle content protection.
Besides a machine hunting a chunk on them.
We paid 105 eastern time.
Try and paint what the Google.
The third one is operation we have one strong partner operation ability, which runs through your contemplation production scheduling promotion and etc.
Sure kind of unusual on the tour to launch with all its usual he's only took the helm leukemias home back to New York.
Uh huh.
That's one.
<unk> intelligent technology, we use intelligence production.
Definitely into definite deficiency in the state.
Court, which provides some turnkey products into production.
He was too.
Well begin with linear in Virginia.
Yeah.
The beauty of do what you like obesity shouldn't change the impossible for me to.
Jubail, Saudi have user the Sip is industry insight.
During years of experiences in the industry, we have clarity in terms of the content creation.
Accident right.
Appetite of the train entertainment consumer market.
These are definitely our competitive advantages.
Please vote now on the Neo sometimes you do it.
Thank you Lee nimble ballroom, Eli we opened.
Hopefully you won't see it.
Therefore.
Sometimes protection mechanism, that's strong operational capability.
With a stable continuous ice cream.
And in the future. Thank you.
What are your plans.
All women with Blue on this slide we talked about.
And I think that already are yeah, well enough with that.
So I won't be able to tell me I'm going to delay I'm always hey, you're going to say that with Jim harmonize obstacle RDR and yet you're sort of diesel.
And.
Of course, we let you handle that.
Well number one please.
Alrighty.
So you talked about pulling back a little while.
In 2020.
Our membership business operation.
Hum.
No.
<unk> healthy momentum.
In 2020 into Q4.
Subscriber base.
Perhaps the fluctuating subscriber range of the past two years, we are optimistic that the subscriber base will continue to grow through 2020.
Our women's dress.
Yeah, Julien how are you.
The yield for the label and what kind of hold up we then build out the waste but that.
Being said he said at that time summed up.
A number of subscribers reached near Washington money Melia.
Great.
Thanks to the high quality content.
<unk> continued to maintain a high level and continues to grow.
At the beginning of a year.
Well, mostly Oh, no you want and young that's obviously out and Thats what.
Youll do it is only thing absolutely.
So that's.
Definitely.
And the structure of our subscriber base after nine a M.
New membership membership package and a large team subscribers from all this stuff.
Helping to lead that platform's membership he knows and larger monitor exactly.
Quite a nuclear I know that's a lot.
Uh huh.
We don't want to talk about.
And so you use shelf age.
Oh cool Jacqueline tool.
Yes.
So we don't believe that we all are in Buffalo.
Japanese tourists, albeit I don't think about it yet.
In the long run I'm, assuming all domestic subscriber base depends on the number of people I see the long form video content, the number of families and the industry competitive landscape.
Currently the number of subscribers that you have a lot of room.
Okay, what's the number of population and the number of families in China.
But we're absolutely Yo Kai watch yourself, but she's also households, regardless of heart failure.
Right absolutely.
So if we I.
Well that sounds good.
So hopefully I.
They gave me about what L J.
General political that's right that's right.
In the future and membership has the prospect in both the direct to consumer sale also China market.
And that's starting to come through myself and my guess is there's a fundamental demand for long form video membership and the mass entertainment market.
China.
Maybe a membership package has also become one of the first products.
I'm, not a telecommunications internet services and financial sectors.
Oh, well this out here.
If they don't put out a.
I believe that I had for you isolate you on its hotel so that's something you'd get him what he does.
Yeah.
Last but not least I'm.
I'm, sorry, you're talking probably east continues to improve.
That's my first will have to pay and the improvements I'm not monetization in the future.
Thank you.
Okay.
Thank you.
Your next question comes from <unk>, Zhang from Bank of America Merrill Lynch. Please go ahead.
Oh Heck why do you felt like that.
So what I see right now both at Baytown, Tom's, saying that yes, it houses being hung I'll, let you go on their own shortfall, Oh, well, the one CPU supply with housekeeping home yeah.
A lot of young women 10, doghouse awful just like basketball it sounds like that sounds down the hole, that's there now and I hope that some of it themselves.
Puts it all women they go Oh, yeah, well, we like that's why a it sounds like housekeeping Hong you know if I got kind of a whole goods that's totally Italian we always said you know what.
Oh lets see if I can use that oh, thanks management for taking my question Congrats on the strong results.
My question is mainly on the on my way to English.
We notice that as a major player have focusing on ROI and compound call, okay and consequent they too are wondering how should we see the English tricky about maintaining our future. Thank you.
Yes.
Oh sure Joe.
After that you bought.
<unk>.
So sure.
Towards the country shut down.
When you walk on for Nate.
<unk> van truckload Huntington the huge role she was looking for the country and control three.
So it would be changing yet.
Yeah.
But cleveland from the Agila.
Thanks.
Just a bunch of that.
Young children can confer shelves yet.
Tonight on countries.
First of all I'll kick out state home from Yelp.
I think they know the industry consensus that.
We believe there is a fundamental demand for long membership in the mass market.
Maybe a few years ago, but there are some players with delta.
Yes, but I think right now everybody in this market at least a comment on consensus numbers.
That's a R. M D E Shaw country I'm sure love to hear for sure.
Hum Io genomes for about two more in house, you chatting for tons that won't get come yet and so you don't you who would you assume that she has a lot to machine that you had last you'll sure Hudson welcome Bobby Jindal shield, the whole home pavan shouldn't be that from a useful tool.
So a shocking.
Yeah, you bet.
Each one of you got a do you have left.
It holds in the mainland chapel, Antioch, Trulia, which packages that are truly auction I think you meant trivia Hong Kong you bet Xiaomi poses challenges with golf.
Sure sure telling you Kimberly and good morning, Yeah Jacob.
Our assumption change.
<unk>.
Tissue Tricia tattooed.
At the end of 2021, and we think we were just starting to see that there are changes.
Oh My video my kids that will lead when he was eight of basketball.
The entire industry.
The focus of the long form video competition well.
Competing uncomfortable.
Two comes from Polly and more players will assume the improvement in operational efficiency and thoughtfully and.
Based on that.
Past, one year and more experience with.
We can witness that the increasing quality of video content leads to higher all right and I think based on that we think that we saw in 'twenty 'twenty. Two also people that are inside of them.
The structural change of the industry, it's correct.
I see the needle for sure not be basketball.
Hum.
She'd hockey either the maintenance.
The golf channel and so you're going to be Lucky golf E. G. I P O clock.
For chicken pox laid off they wont come until he'd be.
What are you going to wait in line.
She and original.
Converting a whole truth.
That also I'm sure Yeah, Yeah, Yeah, I'll say it on.
My thought was that you had.
You got one down there.
The shelf placement yeah.
J P. I G. G that you know Jordan Shouldnt, you won't get it.
They don't sit her knowledge from that either.
R. R. I Couldnt turn around the business performance last year, I think was attributable to the many equal original content production.
And the same for our industry peers, I think are more sufficient supply of content and also our Harrison videos and better efficient cost control on that we think.
The high quality content.
It.
Leads to higher willingness to pay.
Which enables us to form a virtuous cycle of content production and monetization and I also believe essentially there's a chance for one single users to subscribe to the multiple on that topic.
Industry, yes.
<unk> symbol R&R them yet.
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Hardy Martha Yeah, and she looks for you guys I'm sure it'll culturally on them.
Sure.
Hello, Shlomo I'm forgetting that the Dol.
Yeah.
Hum Yeah come at all.
Chip I'm traveling washer for places you have got to that point.
Sure or chunky yoga.
Most of them.
Yeah, Yeah sure.
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Yeah.
Human physical shopping.
Got you that's helpful Jacques.
Hum.
We believe our which he kind of turnaround last year last week continues to lead the industry and also.
At the same time our goal for next year is achieving high quality well, meaning that we'll achieve quality growth in terms of revenue and also for profit that's fun I understand that there's been some pressure for our peers in the industry and I think as a leader in this industry if that goes behind and then.
In seeking out I will also lead our entire industry.
Industry to recover at all right.
Women's quickly and simplify the structural changes.
We mentioned earlier and then I think this will eventually lead to a healthier industry and eventually every player in the industry.
And that's what central Bank.
Thank you.
Your next question comes from Lincoln Gong from Goldman Sachs. Please go ahead.
Okay.
Check or of course anytime she that's about it yeah.
Sure.
Yeah.
Gotcha.
Jacob.
Joey how did you say to act.
Shipping.
Yep.
That should come from Shan Shan Shan.
Sure sure Okay.
Chico.
So switching then too.
Sure sure.
Two quick ones.
Sure.
Sure.
Check with them on.
So my question is going to actually generate the content.
So, especially at the application space.
How to management to think about the potential Tam and potential.
Potential application cycle appropriate this space.
Especially we also noticed recently a company has sir.
Which in a car.
<unk> responded to.
So I mean what aspects.
Tomorrow.
Related to this collaboration.
Yeah.
Our CTO linked them to answer this question.
Oh, no surety of Liberum.
When I say that as you go into <unk>.
I see that you know.
Now you could do something like that you don't want me to remain as healthy tissue Christian producers, who don't you said for your team.
So you want me to take that want to use.
<unk> consistently.
Until we see something similar to the Italian courts switching it over here.
I keep a transition has to be.
Technology Entertainment.
So what is that smell, let's see innovation also all the what the key factors to promote the evolution.
On the industry.
We have been investing in artificial intelligence.
Computing.
Do you and video technology, and others to improve efficiency and quality of content production.
User experience.
And you've seen us the leeway and ecosystem switches the needles from time to time, Neil as you can see that's used with <unk>.
I see that you can see it was funny. He said this is what it sounds like what you're getting with your argument.
Well at this home on your on your children.
Cancel imtt's, absolutely I mean, you don't.
And you see a powerful engine for data processing and also kind of protection do you think.
Hi.
It's funny the AI technology for the extent I E that capability.
F T Inc.
She has come from production inefficiencies and others and use it yeah.
We have been exploring the application of IGT into videos since mid 2022.
Oh, It was only one sounds good anyway.
Scientology Glenn and.
And Keith to dose at home relying on <unk> and you've seen that.
You've been tons of I'm here I'm pleased that we use them, even though keep receivables hung you'll remember Q2, Saudi chunky tender.
I see.
NTT telehealth hiseQ2 bed teaching.
Thank you.
50, her tweet puts them in a way to kids and you can see why I know when the peso, who you sell fashion people, who couldn't go into jobs at the C suite.
I mean, he's familiar with tubular goods in Saudi.
Well, we have been exploiting the following.
Opex for.
For the E train to stage in the future I'm from creators can't use I E. You're talking protection system. That's got some process not only that will trigger more fitness inspiration.
Well also enhance efficiency and reduce cost.
And it does have some stage in the future I E intelligent detection system intelligently and.
A threat because they use of aig's, so essentially and the likes of scripts and extract that's alright.
Yeah.
That's technology not only can help the country excuses and find the project.
But also providing more valuable information.
Post production and marketing and put them into older applications.
Video content production.
Finally on the shelf at home in a way I should seek the Hudson.
Sleep on seeking alpha suicide squad.
That's helpful.
Right right.
In soft home anyway I.
C. G. Sheldon is just wouldn't happen.
And she's on how many of them that's what it sounded which as you know John it's not fruitful hi, Susan.
Moving the needle when I see you can look at one time I T D.
You will see data on the users implemented I'm not sure that you know a lot of volume.
And Tom you want to the nimbleness and agility.
Kuboya entity I know, what you can sometimes goodbye.
Honestly I don't know.
He didn't know where it goes.
Do you want to answer that.
I know you talked with you said with your.
The Louisiana system goes along so she went on and I'm thinking I know you feel you're doing the coupons on some of your work on Amigo.
In terms of content marketing and promotion yes.
With a large number of marketing and marketing material into the efficiency and effect of content marketing.
Hum.
Creators can also use AI to automatically generate did in your commentary.
Or the interest of efficiency already.
That's kind of briefly make short form video content that promote this variety shows him separately attracting more users to watch ice's content.
Also especially benefit in promoting our extensive collection of library content effectively.
Extending the lifecycle.
And also aig's he can produce personal life cultural images for any content how content finding its audience and a user would have improved content recommendations yet.
The video session and will also be improved since the conversational AI kept facilities users can search and find.
I know the story of a particular SKU.
Sure Vince.
<unk> recommendation.
That's right.
How can they users.
Speaking of healthy how would they users to find content more effectively.
Since he has seafood and you can see the diesel cracks keep up with it.
Can you sort of see it sounds it could be people, who don't use it.
Yeah, so it sounds like if I'm being well done cannot route.
I see you hope I do think I'm, telling you I am sure, it's simply not Super Cool and you don't see it.
Cellphone Yahoo kinds of Italian <unk>.
I mean, how would you know what it is.
So far it sounds like a year or two before that.
She goes how many that are noteworthy and sometimes we see it.
We believe that the combination of the I T E technology and I E.
The video Entertainment resources and further promote the development of the video industry and interest you Jake.
We will continue to increase our investment in this area.
February 15th 2023, we announced a strategic cooperation with ideal and both companies what's that mean.
It's funny that you see application scenarios, if I lose anybody in the areas such as content creation.
Content distribution at a million come from search novel creation ex FX. We believe it will I think and I see production capability in concentrate empty production efficiency and the user experience.
Thank you.
Yeah.
Thank you.
This is the last question for today I'll now hand back to ITE management for closing remarks.
Okay.
Thank you everyone for joining the call today and please do not hesitate to reach out to us.
There's a question here.
Sure.
Right.
Thank you that does conclude our conference for today. Thank you for participating you may now disconnect.
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