Q4 2022 Phoenix New Media Ltd Earnings Call
Speaker 2: Good day and thank you for standing by. Welcome to Phoenix, new media for quarter 2022 earnings conference call. At this time, all participants are on the listen only mode. After the speaker presentation there'll be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You would then.
Speaker 1: Thank you, operator. Welcome to Phoenix New Media's fourth quarter 2022 earnings conference call. I'm joined here today by our CEO , Mr. Shung Liu, and our CFO , Mr. Edward Liu. On today's call, management will first provide a review of the quarterly results and then conduct a Q&A session.
Speaker 1: The fourth quarter 2022 financial results and the webcast of this conference call are available on our website at ir.iphone.com.
Speaker 1: A replay of the call will be available on the website in a few hours.
Speaker 1: Before we move on to the prepared remarks, let me refer you to our Safe Harbor statement in our earnings press release, which applies to this call as we will make forward-looking statements.
Speaker 1: Finally, please note that unless otherwise stated, all figures mentioned during the conference call are in RMB.
Speaker 1: And now I would like to turn the call over to Mr. Sheng Liu, our CEO .
Speaker 3: Hello everyone, thank you for joining our call today.
Speaker 3: In the last quarter of 2022, restrictions imposed to control the spread of COVID-19 were finally lifted and lockdowns came to an end.
Speaker 3: Despite the expositional rise in the number of infected cases in December , our team's unwavering commitment to achieve our goals enables us to close the quarter with the total revenue exceeding our previous revenue guidance.
Speaker 3: along with our efforts to improve operational efficiency.
Speaker 3: Operations operating costs in the fourth quarter decreased by 63 percent year-over-year.
Speaker 3: resulting in a profitable quarter.
Speaker 3: Additionally, we continue to optimize the production and distribution of premium content and improve our iPhone product to enhance user retention and engagement.
Speaker 3: In Q4, we continue to demonstrate our leading role in the coverage of major events and breaking news.
Speaker 3: including the year-long Russian-Ukrainian conflict with updates on Ukrainian armies' counterattacks and referendums in four Russian-occupied regions.
Speaker 3: We also reported on the China-Russia-U.S. stand-ups over the conflict.
Speaker 3: The Nord Stream incident.
Speaker 3: incident.
Speaker 3: Looming nuclear threats alongside other major events like the U.S. midterm elections, G20 summit,
Speaker 3: at the passing of former leader Jiang Zemin.
Speaker 3: Above all, the pandemic and related public policy remain at the forefront of everyone's concerns.
Speaker 3: Throughout, we delivered reliable, accurate and timely information, and most importantly, fosteredDOCA client.
Speaker 3: rational discussion among our user community.
Speaker 3: Our regional columns provided extensive coverage of the pandemic from various angles.
Speaker 3: Our health and wellness seem common.
Speaker 3: Tumor Intelligence Agency, Zhongliu Tingbaju, not only provided useful information such as home remedies.
Speaker 3: Joonil Timbaji not only provided useful information such as home remedies, vaccine usage,
Speaker 3: and when to seek professional help, but also offer insightful analysis on the COVID development.
Speaker 3: Articles addressing issues such as the risk of reinfection and public policy trends received over 10,000 views on Weixin.
Speaker 3: Our commentary column, the message function, published over 100 articles tackle controversial topics such as revenues.
Speaker 3: for opening up the overburdened matting system.
Speaker 3: and the challenges faced by individuals with aniline conditions.
Speaker 3: These commentaries receive widespread recognition and were frequently reported by other mainstream media and we media others.
Speaker 3: Our investigative columns Eye of the Storm and Feng Bao Yan continue to fulfill our media oversight role by investigating and reporting our controversial incidents.
Speaker 3: For example, it reported on the incident where insurance companies denied pedantic insurance claims.
Speaker 3: and investigate it.
Speaker 3: companies that may have ethically profited from the pandemic both generated heated discussions across the Internet.
Speaker 3: Despite the challenges posed by the pandemic, many of our year-end events are marketing campaigns.
Speaker 3: will successfully carry out our line.
Speaker 3: resulting in a much lower execution cost.
Speaker 3: while achieving viral online exposure.
Speaker 3: For instance, our 2020 Fashion Award created a viral red carpet show.
Speaker 3: generating 50 million views on social media, followed by the presentation of the fashion awards.
Speaker 3: where we celebrated the most impactful role models in fields such as fashion, culture, art and sports.
Speaker 3: our iPhone Finance Summit with the theme, Stepping Forward with Determination.
Speaker 3: focus on the crucial role of the private sector and economic implications of the epidemic prevention.
Speaker 3: The performance data of the event reached a historical high, with 35 hard searches on Weibo, over 2 billion reps, and 1.2 billion video plays across the web.
Speaker 3: making it one of the most high-profile industry events during the year.
Speaker 3: In Q4, we further refine our hot topping.
Speaker 3: Curation strategies are hot topics delivered deeper into categories other than news and politics including finance, technology, culture, entertainment and sports.
Speaker 3: attracting more diverse user demographics.
Speaker 3: The interactive features related to hot topics...
Speaker 3: or greatly enhanced.
Speaker 3: Besides posting comments, users can comment and vote on each other's comments.
Speaker 3: which rise and fall in the rankings as people comment on both of them.
Speaker 3: providing more incentives for users to interact.
Speaker 3: Pid and Pull functions also became a popular tool where users can express and exchange their views regarding the hot topics.
Speaker 3: The live poll results are widely reported and shared, delivering more user engagement.
Speaker 3: Also, we launched an immersive video stream format with an improved algorithm.
Speaker 3: compared to the traditional video layout, the average number of clips played per user increased by 40%.
Speaker 3: and average time spent per user watching videos increased by 30%
Speaker 3: After the launch of the Immersive Video Stream format, total time spent in the APP per user increased by 8%.
Speaker 3: In addition, we further improved the synergies between our AI findings and our editorial system.
Speaker 3: Our AIF1 work has always played a key role in increasing productivity of the selection and distribution of trending topics.
Speaker 3: On top of it, a seasoned editor's curation and re-creation of the content greatly improved the effectiveness of the content recommendation.
Speaker 3: As a result, during Q4, the click-through rate of our content increased by 20%.
Speaker 3: The number of shares doubled.
Speaker 3: which help acquire new users and activate existing forms. Moving on to revenue diversification. For online reading, we continue to monetize our premium IPs through partnerships with major third-party platforms such as Nadi's Reading,
Speaker 3: In addition, our audiobooks garnered enthusiastic reviews on third-party platforms like Himalaya, which multiple titles reaching over 10 million plays.
Speaker 3: and ranking the Himalayas new book topics.
Speaker 3: For the real estate verdict toward the end of 2022, several state support measures
Speaker 3: will go out to boost recovery of the poverty sector.
Speaker 3: As a leading media outlet in the sector, our team proudly tracked and interpreted these policies, interviewed industry experts and opinion leaders, and provided analysis and reports on the major players in the industry.
Speaker 3: consumer confidence takes time to rebound, short time pressure still persistent within the team.
Speaker 3: In response to the challenging environment, we prioritized cash flows, collected historical bad debts, and optimized local business teams through closure and consolidation while streaming line human resources costs.
Speaker 3: That's three colors.
Speaker 3: Despite the sluggish consumer market, our health and wellness and food and beverage sectors perform well during the year end.
Speaker 3: by leveraging an extensive product of action and more efficient algorithm driven...
Speaker 3: Shared wake-up mode!
Speaker 3: Our health and wellness sector achieved a sales breakthrough, doubling the sales revenue compared to the previous quarter.
Speaker 3: Meanwhile, the food and beverage sector resulted in triple revenue.
Speaker 3: compared to the previous quarter, with a special focus on holiday gift giving.
Speaker 3: To recap...
Speaker 3: In the fourth quarter of 2022, we remain committed to optimize cost structure and enhancing productivity, all while elevating our differentiation in areas of original content creation, hot topic curation, and our flagship APP product.
Speaker 3: quarter of 2022, we remain committed to optimize cost structure and enhancing productivity, all while elevating our differentiation in areas of original concept creation, hot topic curation, and our flagship APP product. We are hopeful.
Speaker 3: that this quarter marks the end of the disruptive impact of the COVID-19 pandemic. We look forward to a revitalized market and improved economic conditions in 2023. Although there will still be obstacles to overcome.
Speaker 3: We are dedicated to revitalize our core business and achieve new milestones in gravity diversification.
Speaker 3: With that, I will now pass the call onto our CFO .
Speaker 4: Mr. close.
Speaker 3: to provide a closer look into our quarterly finishes.
Speaker 3: Thank you, Sean. And hello, everyone. I will now walk you through our financial performance for the fourth quarter of 2022. All figures mentioned will be in R&D.
Speaker 3: Our total revenues were 223.9 minutes as compared to 302.9 minutes in the same period of last year. To elaborate, net advertising revenues were 205.4 minutes compared to 279.2 minutes in the same period of last year.
Speaker 3: The decrease was mainly due to the reduction in advertising spending of advertisers in certain industries.
Speaker 3: The intensified industry-wide competition and the negative impact of the COVID-19 outbreak in China in the fourth quarter.
Speaker 3: Paid services revenues were 18.5 million compared to 23.7 million in the same period of last year. The difference would mainly due to the reduction in the content spending of certain customers. Growth margins in the fourth quarter of 2022.
Speaker 3: cost control measures implemented. We also recognize life allowance for credit losses in the fourth quarter of 2022. After collecting some long-aged accounts receivable,
Speaker 3: As a result of this effort, income from operations was 46.7 million compared to loss from operations of 53 million in the same period of last year. That income attributable to iPhone was 41.6 million.
Speaker 3: compared to net loss of 35.4 minutes in the same period of last year. Moving on to our balance sheet.
Speaker 3: As of December 31, 2022, the company's cash and the cash equivalents, term deposits, short-term investments and restricted cash were RMB 1.15 billion or approximately US dollar 167.4 million.
Speaker 3: Finally, I'd like to provide our business outlook for the first quarter of 2023.
Speaker 3: We are forecasting total revenue to be between 123.1 million and 143.1 million.
Speaker 3: For net advertising revenue, we are forecasting between 107.4 million and 122.4 million.
Speaker 3: For paid service revenues, we are forecasting between 15.7 million and 20.7 million.
Speaker 3: This forecast reflects our current and preliminary view, which are subject to changes and the substantial uncertainties. In summary, in the face of adversity posed by the COVID-19 pandemic in the fourth quarter of 2022, we achieved a profitable quarter through our team's continuous...
Speaker 3: strategies to improve our revenue stream mix.
Speaker 3: Looking ahead, we will remain steadfast in our commitment to prudent financial management and the creation of substance.
Speaker 3: Sustained value for our shareholders. This concludes the prepared portion of our call. We are now ready for questions. Operator, please go ahead.
Speaker 2: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced.
Speaker 2: To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.
Speaker 2: And I show the first question comes from the line of Sue Ruizang from 86 Research. Please go ahead....
Speaker 5: Thank you. Good morning, management staff. Thank you for taking my question. I was wondering if you could provide some insight on the app business for the year 2023. Additionally, would you please elaborate on the specific initiatives and efforts?
Speaker 5: the company plans to undertake in the coming year to drive the growth. Thank you.
Speaker 3: Thank you, Xiu. This is Edward speaking. In 2023, we expect the economy to gradually recover from the pandemic. But it's uncertain whether it will go back to pre-pandemic levels.
Speaker 3: As for brand advertising, we anticipate a rebound in industries like automobile, food, and beverage, and e-commerce.
Speaker 3: But for real estate it may be slower. Despite this we are well prepared with our rich marketing solutions and meticulous services to secure advertising budgets from our clients.
Speaker 3: Our original premium content and refined hot topic strategy continue to bring us loyal and highly engaged users, boosting our media brand influence and value. We are also upgrading our products to create more
Speaker 3: engaging community for users and increase user retention, which also helps to boost the brand advertising style.
Speaker 3: Actually our traffic on third-party social platforms is another vital marketing resource. It helps our advertisers reach more potential customers and attracts new advertisers who prefer social media marketing.
Speaker 3: To achieve monetization growth, we set clear targets for our social media accounts and evaluate their performance based on metrics like user reach, engagement, content quality, and user demographics.
Speaker 3: So the oversupply of ad inventory shows video.
Speaker 3: platforms has affected the market share of other platforms. We are offsetting this pressure by increasing user thickness and engagement of our products. Additionally, we are offering our technical capabilities of pragmatic advertisements to help third-party applications.
Speaker 3: monetize their traffic, further offsetting the pressure.
Speaker 3: Through these combined efforts, we hope to create greater value for our clients and boost our monetization efficiency.
Speaker 3: Through these combined efforts, we hope to create greater value for our clients and boost our monetization efficiency. I hope I have answered your question.
Speaker 5: Yes, that's very helpful. Thank you. Thank you.
Speaker 2: And I show our next question comes from the line of Alice Tang from first Shanghai, please go ahead
Speaker 5: Good morning, thanks for taking my question. My question is related to chat GPT or the AI generated content. So can management share with us how AITC could impact your business please?
Speaker 3: Thank you, it's a very good question. Of course, chatGPT is an incredible powerful tool that takes content creation and delivery to a whole new level. There are so many ways we can benefit from AIGC from extracting text.
Speaker 3: and summarizing complex information to identify trends and curating relevant content.
Speaker 3: When implemented properly, it can significantly improve productivity and even have a big impact on recommendation algorithms and content delivery.
Speaker 3: Actually we are really excited about the AIGC and the trends it's bringing to the industry. You may already know like Baidu has launched a conversational AI bot called EarlyBot in China. We have become one of the first ecological partners.
Speaker 3: applications for our business related talents and even investment opportunities.
Speaker 3: just like we did when we found Eden in the past.
Speaker 6: Thank you.
Speaker 7: Thank you.
Speaker 8: Thank you.
Speaker 2: I'm showing no further questions in the queue. At this time, I'd like to turn the call back over to Muzugo for management for closing remarks. Please go ahead.
Speaker 1: We'll have come to the end of our Q&A session and our conference call. Please feel free to contact us if you have any further questions. And thank you very much for joining us today on this call. Have a good day. Thank you. Thank you.
Speaker 1: Thank you. We'll have come to the end of our Q&A session and our conference call. Please feel free to contact us if you have any further questions. And thank you very much for joining us today on this call. Have a good day. Thank you. Thank you. That concludes it.
Speaker 8: You may all disconnect at this time.
Speaker 1: The conference will begin shortly. To raise and lower your hand during Q&A, you can dial star 1 1.
Speaker 9: the conference will begin.
Speaker 9: We the we P.
Speaker 9: I.
Speaker 2: Good day and thank you for standing by. Welcome to Phoenix new media for quarter 2022 earnings conference call.
Speaker 2: At this time, all participants are in the listen-only mode. After the speaker presentation, there will be a question and answer session.
Speaker 2: To ask a question during the session, you would need to press star 1 1 on your telephone. You would then hear an automated message advising your hand is raised.
Speaker 2: To withdraw your question, please press star 1-1 again. Please be advised that today's conference has been recorded.
Speaker 1: I would now like to hand the conference over to your first speaker today to Muzugo from IR department. Please go ahead. Thank you, operator. Welcome to Phoenix New Media's fourth quarter 2022 earnings conference call. I'm joined here today by our CEO , Mr. Sheng Liu, and our CFO , Mr. Muzugo.
Speaker 1: iPhone.com
Speaker 1: A replay of the call will be available on the website in a few hours.
Speaker 1: Before we move on to the prepared remarks, let me refer you to our Safe Harbor statement in our earnings press release, which applies to this call as we will make forward-looking statements.
Speaker 1: Finally, please note that unless otherwise stated, all figures mentioned during the conference call are in R&B. And now I would like to turn the call over to Mr. Sheng Liu, our CEO .
Speaker 3: Hello everyone, and thank you for joining our call today. In the last quarter of 2022, restrictions imposed to control the spread of COVID-19 were finally lifted, and lockdowns came to an end.
Speaker 3: Despite the expositional rise in the number of infected cases in December , our team's unwavering commitment to achieve our goals enables us to close the quarter with the total revenue exceeding our previous revenue guidance.
Speaker 3: along with our efforts to improve operational efficiency, operating costs in the fourth quarter decreased by 63% year over year.
Speaker 3: resulting in a profitable quarter.
Speaker 3: Additionally, we continue to optimize the production and distribution of premium content and improve our iPhone product to enhance user retention and engagement.
Speaker 3: In Q4, we continue to demonstrate our leading role in the coverage of major events and breaking news.
Speaker 3: including the year-long Russian-Ukrainian conflict with updates on Ukrainian armies' counterattacks and referendums in four Russian-occupied regions. We also reported on the China-Russia-U.S. stand-ups over the conflict.
Speaker 3: the Nord Stream incident, and looming nuclear threats alongside other major events like the U.S. midterm elections, G20 Summit.
Speaker 10: at the passing of former leader Jiang Zemin.
Speaker 10: Above all, the pandemic and related public policy remain at the forefront of everyone's concerns.
Speaker 10: Throughout, we delivered reliable, accurate and timely information, and most importantly, fostered market value.
Speaker 10: rational discussion among our user community. Our original columns provided extensive coverage of the pandemic from various angles.
Speaker 10: our health and wellness seem common.
Speaker 10: Tumor Intelligence Agency, Zhongnyo Jingbaji, not only provided useful information such as, Home Roughness
Speaker 10: intelligence agency, Zhongnyo Timbaji, not only provided useful information such as home remedies
Speaker 10: Zhongnuo Timbaji not only provided useful information such as home remedies, vaccine usage,
Speaker 10: and when to seek professional help, but also offer insightful analysis on the COVID development.
Speaker 10: Articles addressing issues such as the risk of reinfection and public policy trends received over 10,000 views on Wing Hin. Commentaries called the message function published over 100 articles on controversial topics such as revenues,
Speaker 10: for opening up the overburdened medical system and challenges faced by individuals with underlying conditions. These commentaries receive widespread recognition and were frequently reported by other mainstream media and we media outlets. These commentsaries are investigative.
Speaker 10: columns, Eye of the Storm, Feng Bao Ye, continued to fulfill our media oversight role by investigating and reporting on controversial incidents. For example, it reported on the incidents where insurance companies denied pedantic insurance claims and investigated companies.
Speaker 10: companies that may have ethically profited from the pandemic both generated heated discussions across the Internet.
Speaker 10: Despite the challenges posed by the pandemic, many of our year-end events are marketing campaigns.
Speaker 10: Despite the challenges posed by the pandemic, many of our year-end events and marketing campaigns were successfully carried out online.
Speaker 10: resulting in a much lower execution cost while achieving viral online exposure. For instance, our 2020 Fashion Award created a viral red carpet show.
Speaker 10: generating 50 million views on social media, followed by the presentation of the fashion awards.
Speaker 10: where we celebrated the most impactful role models in fields such as fashion, culture, art and sports.
Speaker 10: our iPhone Finance Summit with the theme Stepping Forward with Determination
Speaker 10: focus on the crucial role of the private sector and economic implications of the epidemic prevention. The performance data of the event reached a historical high. With 35 hot searches on Weibo, over 2 billion reps.
Speaker 10: and 1.2 billion video plays across the web.
Speaker 10: making it one of the most high-profile industry events during the year.
Speaker 10: In Q4, we further refine our hot topping.
Speaker 10: Curation strategies are hot topics delivered deeper into categories other than news and politics including finance, technology, culture, entertainment and sports.
Speaker 10: attracting more diverse user demographics.
Speaker 10: The interactive features related to hot topics were greatly enhanced. Besides posting comments, users can comment and vote on each other's comments.
Speaker 10: which rise and fall in the rankings as people comment or vote on them.
Speaker 10: providing more incentive for users to interact. Pin-in-Pole functions also became a popular tool where users can express and exchange their views regarding the hot topics.
Speaker 10: The live poll results are widely reported and shared, delivering more user engagement.
Speaker 10: Also, we launched an immersive video stream format with an improved algorithm.
Speaker 10: compared to the traditional video layout, the average number of clips played per user increased by 40%.
Speaker 10: and average time spent per user watching videos increased by 30%
Speaker 10: After the launch of the Immersive Video Stream format, total time spent in the APP per user increased by 8%. In addition, we further improved the synergies between our AI avoidance and our editorial system.
Speaker 10: Our AI framework has always played a key role in increasing productivity of the selection and distribution of training topics.
Speaker 10: On top of it, our seasoned editors' curation and re-creation of the content greatly improved the effectiveness of the content recommendation.
Speaker 10: As a result, during Q4, the click-through rate of our content increased by 20%.
Speaker 10: the click-through rate of our content increased by 20%. The number of shares doubled.
Speaker 10: which help acquire new users and activate existing forms. Moving on to revenue diversification. For online reading, we continue to monetize our premium IPs through partnerships with major third-party platforms such as NetEase Reading
Speaker 10: In addition, our audiobooks...
Speaker 10: garnered enthusiastic reviews on the third-party platforms like Himalaya, which multiple titles reaching over 10 million plays, and Yahoo!
Speaker 10: honored enthusiastic reviews on third-party platforms like Himalaya, which multiple titles reaching over 10 million players and ranking the Himalayas new bootops.
Speaker 10: For the real estate verdict towards the end of 2022, several state support measures
Speaker 10: will go out to boost recovery of the poverty sector. As a leading media outlet in the sector, our team properly tracked and interpreted these policies, interviewed industry experts as opinion leaders, and provided analysis and reports on the major players in the industry.
Speaker 10: consumer confidence takes time to rebound.
Speaker 10: short-time pressure still persisted within the tax sector. In response to the challenging environment, we prioritized cash flows.
Speaker 10: collected historical bad debts and optimized local business teams through closure and consolidation, while streamline human resources costs.
Speaker 10: After Econis.
Speaker 10: Despite the sluggish consumer market, our health and wellness and food and beverage factors perform well during the year end.
Speaker 10: by leveraging an extensive product of action and more efficient algorithm-driven recommendation system.
Speaker 10: Our health and wellness sector achieved a sales breakthrough, doubling the sales revenue compared to the previous quarter. Meanwhile, the food and beverage sector resulted in triple revenue compared to the previous quarter.
Speaker 10: with a special focus on holiday gift-giving. To recap, in the fourth quarter of 2022, we remain committed to optimized cost structure and enhancing productivity, all while elevating our differentiation in areas of original causal creation.
Speaker 10: hot topic curation, and our flagship APP product. We are hopeful that this quarter marks the end of the disruptive impact of the COVID-19 pandemic. We look forward to revitalize the market and improve economic conditions in 2023.
Speaker 10: Although there will still be obstacles to overcome, we are dedicated to revitalize our core business and achieve new milestones in revenue diversification. With that, I will now pass the call on to our CFO .
Speaker 10: this outward loop to provide a closer look into our quarterly finishes.
Speaker 3: Thank you, Sean. And hello, everyone. I will now walk you through our financial performance for the first quarter of 2022. All figures mentioned will be in RMB. Our total revenues were 223.9 minutes as compared to 302.9 minutes in the same period of last year.
Speaker 3: To elaborate, net advertising revenues were 205.4 minutes compared to 279.2 minutes in the same period of last year. The decrease was mainly due to the reduction in advertising spending of advertisers in certain industries. The intensified industry-wide competition.
Speaker 3: and the negative impact of the COVID-19 outbreak in China in the fourth quarter.
Speaker 3: Paid services revenue for 18.5 minutes compared to 23.7 minutes in the same period of last year. The difference would havegreat numbers because we think the bathroom will be really cool. And at this point,
Speaker 3: mainly due to the reduction in the content spending of certain customers. Growth margins in the fourth quarter of 2022 increased to 39.4% from 34.8% and at the same time,
Speaker 3: total operating expenses decreased by 73.9% year over year. As a result of strict cost control measures implemented. We also recognize life allowance for credit losses in the fourth quarter of 2022. After collecting
Speaker 3: some long-in-account receivables. As a result of these efforts, income from operations was 46.7 million, compared to loss from operations of 53 million in the same period of last year.
Speaker 3: Net income attributable to iPhone was 41.6 minutes compared to net loss of 35.4 minutes in the same period of last year.
Speaker 3: Moving on to our balance sheet, as of December 31, 2022, the company's cash and the cash equivalents, term deposits, short-term investments, and restricted cash were RMB 1.15 billion.
Speaker 3: or approximately US dollar 167.4 million. Finally, I'd like to provide our business outlook for the first quarter of 2023.
Speaker 3: We are forecasting total revenues to be between 123.1 million and 143.1 million. For net advertising revenue, we are forecasting between 107.4 million and 122.4 million. For paid service revenue, we are forecasting between 150,000 and 150,000. For paid service revenue, we are forecasting between 150,000 and 150,000.
Speaker 3: We are forecasting between 15.7 million and 20.7 million. These forecasts reflect our current and the preliminary view, which are subject to change and substantial uncertainties. In summary, in the face of adversity, we are looking at the future of our society.
Speaker 3: post by the COVID-19 pandemic in the fourth quarter of 2022. We achieved a profitable quarter through our team's continuous efforts and effective cost control measures to increase operational efficiency. it's a real shock for all of us and it's an audio Catcher, so the shout out to Vinny for sharing that information and Eve for the rightuse on the
Speaker 3: We continue to enhance our content creation and distribution capabilities, upgrade our iPhone app features, and investigate new monetization strategies to improve our revenue stream mix. In a hat- backed Q and a hat. We welcome…
Speaker 3: steadfast in our commitment to prudent financial management and the creation of substance.
Speaker 3: Sustained value for our shareholders. This concludes the prepared portion of our call. We are now ready for questions. Operator, please go ahead.
Speaker 2: Thank you. As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced.
Speaker 2: To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. And I show the first question comes from the line of Sueru Zhang from 86 Research. Please go ahead.
Speaker 5: Thank you. Good morning management staff. Thank you for taking my question. I was wondering if you could provide some insights on the app business for the year 2023. Additionally, could we please elaborate on the specific initiatives and efforts the company plans to undertake in the coming year to drive the growth. Thank you.
Speaker 3: Thank you, Xiu. This is Edward speaking. In 2023, we expect the economy to gradually recover from the pandemic. But it's uncertain whether it will go back to pre-pandemic levels.
Speaker 3: As for brand advertising, we anticipate a rebound in industries like automobile, food, beverage and e-commerce.
Speaker 3: But for real estate it may be slower. Despite this we are well prepared with our rich marketing solutions and meticulous services to secure advertising budgets from our clients.
Speaker 3: Our original premium content and refined hot topic strategy continue to bring us loyal and highly engaged users, boosting our media brand influence and value. We are also upgrading our products to create more
Speaker 3: engaging community for users and increase user retention, which also helps to boost the brand advertising style.
Speaker 3: Actually our traffic on third-party social platforms is another vital marketing resource. It helps our advertisers reach more potential customers and attracts new advertisers who prefer social media marketing.
Speaker 3: To achieve monetization growth, we set clear targets for our social media accounts and evaluate their performance based on metrics like user reach, engagement, content quality, and user demographics. We expect our social media marketing sales to grow.
Speaker 3: other platforms. We are offsetting this pressure by increasing user thickness and engagement of our product. Additionally, we are offering our technical capabilities of pragmatic advertisements to help third-party applications.
Speaker 3: monetize their traffic, further offsetting the pressure. Through these combined efforts, we hope to create greater value for our clients and boost our monetization efficiency.
Speaker 3: I hope I have answered your question.
Speaker 5: I hope I have answered your question. Yes, that's very helpful. Thank you.
Thank you. And I show our next question comes from the line of Alice Tang from First Shanghai. Please go ahead.
Good morning, thanks for taking my question. My question is related to CHATGPT or the AI generated content. So can management share with us how AIGC could impact your business please? Thank you, it's a very good question. Of course, CHATGPT is an incredible, powerful tool that takes...
content creation and delivery to a whole new level. There are so many ways we can benefit from AITC, from extracting text and summarizing complex information to identify trends and curating relevant content.
When implemented properly, it can significantly improve productivity and even have a big impact on recommendation algorithms and content delivery.
Actually we are really excited about the AIGC and the trends it's bringing to the industry. You may already know like Baidu has launched a conversational AI bot called EarlyBot in China. We have become one of the first ecological partners.
potential applications for our business, related talents and even investment opportunities.
just like we did when we found Eden in the past.
we did when we found Eden in the past. Thank you.
Thank you. Thank you. I'm sure no further questions in the queue. At this time, I would like to turn the call back over to Muzal Go for management for closing remarks. Please go ahead.
We'll have come to the end of our Q&A session and our conference call. Please feel free to contact us if you have any further questions. And thank you very much for joining us today on this call. Have a good day. Thank you. RAY that every
Thank you. We'll have come to the end of our Q&A session and our conference call. Please feel free to contact us if you have any further questions. And thank you very much for joining us today on this call. Have a good day. Thank you.
Thank you. That concludes it. You may all disconnect at this time.