Q4 2022 JOYY Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to join Inc. Fourth quarter and full year 2022 earnings call.
At this time all participants are in a listen only mode. After management's prepared remarks, there will be a question and answer session.
I'd now like to hand, the conference over to your host today change Yeah. The company's senior manager of Investor Relations. Please go ahead James.
Thank you operator, Hello, everyone welcome to join Ford Cortina 2022 earnings conference call.
Joining us today are Mr. David Kelly, Chairman and CEO of Joy, Ms. Julie Our C O O and Mr. Alex Liu the general manager of Finance.
For today's call management will first provide a review of the quarter and then we will conduct a Q&A session.
The financial results and webcast of this conference call are available at IR talk Joy they'll come.
A replay of this call will also be available on our website in a few hours.
Before we continue I'd like to remind you we may make forward looking statements, which currently are subject to risks and uncertainties that may cause actual results to differ from our current expectations.
For detailed discussions of the risks and uncertainties. Please refer to our latest annual report on form 20-F, and other documents filed with the FCC.
Finally, please note that unless otherwise stated all figures mentioned during this conference call on U S dollar.
I will now turn the call over to our chairman and CEO Mr. David Shirley. Please go ahead Sir.
Oh, Hello, everyone welcome to our fourth quarter 2022 earnings call.
You saw with automobile.
Fourth quarter and full year results.
In the fourth quarter literally quality, the tundra and the whole point La and then Lee you revenues include a 476 1 million of revenue from people and they generate T. The 50 50, meaning in.
non-GAAP net profit include the $57 7 million.
Net profit from legal.
For the full year also 20.
It shouldn't be too we achieved with the $2 4 billion in revenue as a group level about fulfilling all of which come from legal.
Further improved our non-GAAP profitability at the group level.
We are in a non-GAAP net profit of $199.3 million with a non-GAAP net margin of eight 3%.
The legal settlement recorded.
288 million non-GAAP net profit.
Our non-GAAP and that might be all or one 4%.
Yeah.
So I think the 'twenty two marked our yeah I'll answer them eat all multinational companies.
We continue to be impacted by macro economy either way.
The combination of both the cold either normalization high inflation and there's a strong U S. Dollar greatly the downward pressure on our use of all lines of famine Benny and.
Our topline grew.
Despite these short term challenges.
<unk>.
Taken action to focus on the composition of our user community.
Our engagement of our very caught up and.
So still sustainable high quality growth.
Anthony on the factor that we could control and are backed by our Salt Lake Houston and abilities are alcohol, yeah, what was the thinking.
The result.
We continued our path to sustainable profitability by generating $199 3 million in non-GAAP net profit is up.
Group level.
Sure.
So our continuous cost optimization efforts and improved our operational efficiency. These three present.
G III.
And then year over year growth in our non-GAAP net profit.
And then the second item.
Oh got you yeah, all positive non-GAAP net profit.
Group level since our E compilation of YY live.
Second we are awaiting these oh salary to you use our rule of go lives.
You grew by well, let's see.
3%.
Well she wants the rate year over year in the fourth quarter I'll tell you don't need to.
From 11, 9% in the same period last year.
Salaries yeah.
It wasn't those work.
Yeah.
This is a.
Was it achieved against the backdrop of the postal Colby.
Normalization and the jewelry I'm sure at all would you be playing the Montney spending.
You highlight the go lives.
The user acquisition capability.
Our drive to buy our because many are probably called lease cultivation.
Content offerings and the social experience.
Let me answer the Chinese RMB three maybe the ability of the global macro elements remain limited and there is a possibility.
And it is possible that the Michael how do we make me linger for another one or two Walker. However, this downturn.
<unk>.
And it is we will not reverse as a pure CIT is all building have a penalty and increasing amongst all the time and they are spending from offline to online.
We remain committed to enrich our users' lives.
Let's say they paid him they are online activities through our products and services, we see is a market where the massive growth potential.
As such we needed to but.
Yeah, let me take that.
And then beach in navigating thoughtful mindful uncertainties and actively.
Actively let's see them long term thoroughly.
Given the current macro uncertainties, we will remain we will retain our phone calls on the quality and profitability of our social entertainment business in the near term.
Means we will continue to do that or we do less well.
We will maintain discipline in our marketing spending further refine our localized the operation in order to further improve our constant anecdotally hearing and Oh. He made today both to our part on organic.
<unk> group.
Awesome Amazing effort will continue as we strive to maintain steady high quality group of both our social entertainment business and it's all great team High school.
In the meantime, we will continue to.
Wow, great ties, our resources and investments into high potential doesn't it.
With our long term strategies and at least we'll shape our call capabilities.
We are confident that we can remain.
So they've been in our past close reinforced our strong financial position and acted swiftly to five long term growth opportunities.
So you're right.
Yeah.
Now, let's take a look.
These are low and our profile, we will start with the big along.
In the fourth quarter people alive, so thin.
Strong user growth.
Trajectory.
Thanks to you faxed in local operations and the inquiries that user I agree.
Your favorite and see the whole range of other people.
Lives and au increased by.
As you point 18.3.
Yeah or year two.
$36 8 million, notably I may use in South East Asia, and the other emerging markets.
We've increased that by 'twenty one.
Yeah Yeah.
The overhang of the 20th that led to a war call Big go lives as we roll Eli Road, Oh, one month match stake.
Program these aren't too.
By her engage at a football player.
Am I wrong is a global.
The approved one highlights go lives.
Device localized content.
Yeah.
But as long as a way as the local community.
In November people alive, you might be the while no professional.
For.
England.
To her and ER.
And that's the lens Northland.
Italy Vanguard to Joy is alive.
Alive ease of use.
All local football cleat, or well see likely that might be go live what are comped.
And that starts to foster line would come in at.
Commentary session.
We also used to pay believes that these passion groups and it has a rule, which support up to 500, a concurrent with speakers will encourage them to create and share our engine on content.
However, the festival a postpaid are engaging community experience on the go lives you'll read the work comp yes.
In addition to connecting users we remain fully dedicated to create value for our research.
In January we foster our fourth annual Black series of events there.
Wiesel Award the Gala turnkey time, Q3, I don't think our board.
Corey Cole capital stagger.
During the event, we go lives honored Oh over.
273 go lives greater than about 100 go lives emanate from.
From <unk> to the community in the past a year.
I'll also feature to add to the team.
For vermin from top tenants from across the global what is approximately low milling maybe worse.
And so the Walsh.
Well there are boosting our creature poker on a worldwide stage, maybe just continue to rape, calling a nice and their reward the contribution of our features you're making our platform. What it is today and there's a single award was just.
Well see.
Basically it's all of our efforts to repeal base it talent.
Holding communities and promos.
Class V P and the E U.
You mean on our platform.
Yeah.
In the fourth quarter people, who lives in dogs to the complacency.
Absolutely the RPC last.
Last three minutes, Ruth and multi use their rooms and introduced a number off of meal interactive features.
To improve the effectiveness of the lives session rhythm Monday ship and the user go live experience.
On a sequential basis the number of live streaming that's creamers. We go lives increased by some onesies and three 3% and I read the during her live sessions increased by one 5% in the world.
Partner.
Turning to the legal line monetization.
During the fourth quarter at one of these shows continue to be.
Massively impacted by micro crown when.
In the Middle East, we will also not heavily impacted as the user time spending war.
Bird tier two offerings attainment activities during the war.
No that's crazy.
No what I say is the number of global paying user was Diebold lies there and there's a number of paying user in Europe and in North American.
I assume the sequential growth pool, who come back to achieve longer.
Looking outside the.
Huntington had three we aim to further improve the go lives the penetration rate and then you spend a global user base at <unk>.
In multiple regions around the world, including Europe , Americas and immediately.
Eastern part D C and in Southeast Asia.
The improvement in user acquisition and the user engagement will remain I would grab per hour or two.
We continue to call T V.
The go live content in the yoga in action via Curt I'm, saying, the lesion and you know very cute local of reasons.
Well the more people alive wheel.
One is efforts to boost to paying user and monetization growth by optimizing users playing experience.
Last streaming session in the bra.
That's the last tends to Likey, Wally yeah, I'll throw out to optimization.
He has all the recent loss in tons attended two was in line with our expectation narrow range by 83% year over year more importantly, like he hit another milestone by achieving breakeven in the second half also.
Sundays and he too.
Following the initial launch of <unk>.
Luke feature.
Like he has been.
And for us to collaborate with the company as a from a very key off industry law schools no longer to further cultivate interest based communities take.
Take the gaming community as an example recently the one of the largest.
Interest groups law all Nike.
That can be partners with the various and popular games include the Comverse.
So laws of mobile and.
C U E E.
Bolt to offer him.
Or is he in hours are shared in space too.
I'm going to ask you are raising your charter.
When December 20th I need to likely become Oh piece wholly alviso streaming partners of the chemo was 292.
I knew a walled garden.
Bonnie.
Hurry achievements in the video game industry.
Millions of mirrored from all over the war Washington event.
And interacting with each other lackeys trifle.
Well, let's see the by law and the language, where you find the content offerings, we saw an increased user interaction and policy and their user thickness unlikely.
Even the first part of her life as I'm ready for user time spend.
Room by 17, 4% and Turkey.
Or do you say user retention rates improved by six 3% over the previous quarter.
Looking ahead as we enter into 2023 we intended to oppose or a plan like this monetization efficiency right slowly diversify the monetization modem and the achieved constant profitability.
We would continue to corral grill real ties the.
Please her support.
<unk> paid social interactions among our users and I suppose or refine our local operation.
Her to interest based communities.
As we gradually improve life with the operation cash flow.
Okay girls capabilities and use our sickness.
Believe like's user base wheel, but I feel really sad.
Our lives and the user groups will resume.
In certain regions overtime.
Our next or hobble, you'll read a book called her uncle's operation loss narrowed substantially over the previous quarter.
In terms of strategy, we mentioned that in <unk> or at least any upgrade about a year ago.
Essentially pago has the transition away from being a interact two platform.
Remarried it.
Has you know it is a multi user social platform, where our user county, joy engaging interactions with a much more <unk>.
First the Rins all crews.
Following the obviously our user socialize the plant.
Patents HUD will become clear.
User it makes us feel I agree.
Opinion parents spine.
Participating in multiple multi player casual games, then after feel wrong golf game user may choose to interact with further our Banca Y O Y all hard those social channels.
As we do and all of you multi player chat rooms.
All of those things, where they can interact so easy toddler you'd be a compromise the three D. R. Horton.
What is the level of interaction and reach a certain level user Mitchell, who joined the same group all families.
Yeah, Yeah life in line, the Brent and <unk>.
Indeed, we can use the odds are a much more rich pins bases.
Frequent basis.
Uncle has enhanced our monetization efficiency through all the pros that are developing in a verity of monetization features.
<unk> has a pay to play games I don't know it hasnt been live streaming and virtual iron.
During the fourth quarter, we optimize our recommendation algorithm to help our to use a mall.
A local law.
Okay Locators social rules.
And as the team drove a sequential increase in the total.
China was an extra day user retention rate by one 5%.
And the user time spent by 5.3%.
We also introduced a new three D.
N between screening and launched a serious all optimization.
Including a beginner's guide to Agua space.
As a result, you'll use their time spend on hardware space improved by six 5% and the revenues from huddle space. What's the line have increased by 13 points, 4% over the previous quarter.
893 in <unk>.
So we are our strategy all blankie.
We intended to further enhance hobbled monetization efficiency.
Well, maintaining our efforts to achieve consistent profitability either the paradox level, although we will continue to optimize it.
Few curse suraj its users socialize the patents and the banter facilitates and user interaction.
Such as we expect to further improve user retention and the organic growth capabilities.
A crucial.
The gradual.
Travel a zetia and the even tool.
Recovery, all the user groups over call it.
Finally, some holidays on capital return jewelry.
Fourth quarter, we bought back an additional certainly 1.8 many of our share.
The full year all the 20th only two we have repurchased the total of.
100, and the study a <expletive> want milling akshay and pay cash dividends.
That's right.
It's amongst all why has it and Oh jeez five 9 million.
We are confident.
Our long term prospects and we'll continue to actively utilize the remaining share purchase program to reward the longtime support all all works out holders.
So to conclude that you get back to his strategies, you're plenty and the strong jewson goal our colleagues are permanent.
In 2022 is probably a dozen sudden mindful abdomens looking ahead, we remain.
I mean, you hate to enrich our user.
And facility.
The improving their online activity through our diverse range all in at least two products and the services, we use our resilient business model.
As long financial position and a sharpened focus on building our call capabilities, we are well positioned to weather salt them.
Macworld, Halloween's, well, passing along some girls opportunities and creating lasting value for shareholders.
No.
Oh yeah.
No I find all runs out.
Yeah. Thanks, David.
Hello, everyone now let me go through the details of a nice well results.
These notes that are nicely foundation, and a noncash unnecessarily information disclosed in our earnings press release.
A presentation I'll continue with our pre finished pieces.
Unless otherwise specifically stated.
Our total net revenues for the quarter was 604 non media.
Compared to U S dollar 600.
Six Pitt Street punk seven media.
In the same period of 2021.
Primarily due to macroeconomic uncertainties.
During the quarter, we have continued to optimize the cost structure and he has a pretty good position as it does.
Group level.
Multiple could that Franz.
Cost of revenues for the Qatar, Kuwait towards taller, so I'm sure I'm not fit to put six media.
Among which are revenue sharing fees and content costs decreased to just over 247.5 beat it.
Gross profit was U S dollar to a hunter or entire punch streaming. It you ended the quarter with.
Gross margin improved to eight 5% from city Street punk, 7% in the same period.
What.
Primarily due to optimization.
Revenue sharing cost and.
On the operational costs.
Yeah.
Although it gets fixed by fish followed the corridor.
231 pounds to meet it.
It was crazy from just 168 points to meet it in the same period 20 watt.
I'll break it spices.
Sales and marketing expenses decreased to just dollar well I'm sure.
Two 2 million from just all know behind Europe in TARP on six media.
Disciplined spending on user acquisition.
Uh huh.
<unk> increased to.
$73 6 million from just on the 29th Street media is a corresponding parent carryout.
'twenty one.
Primarily due to increased.
Personnel related expenses.
Equal.
Consolidation of supply.
Okay.
Our GAAP operating loss all of the corridor.
Although coating pumps to media.
Comparable operating cost just under 66 million in the same period of 2021.
Our non-GAAP operating income for the quarter.
How does he see expenses.
Amortization of intangible assets from business acquisitions.
Oh S impairment Camille I'm the investments.
And the gain on disposal of subsidiaries and business was USD 20.
27 positive media you this quarter.
Compared to all our 18th Street punk fun media means that same peer there are plenty plenty wow.
Our noncash.
How much it followed the courtyard was four 6% compared to TARP and 6% in the prior year period.
Yeah.
GAAP net loss from continuing operations attributable to controlling interest of Joy. There is no quota was 377 5 million compared with Nike Com.
Some discrete pas to meet at the same period of 2021.
Primarily due to an impairment loss of just all Oh I'm sure incentive upon two media from I've seen my short investment.
Recognized during the quarter.
The impairment loss.
Excluded from our non-GAAP calculations.
It should not reflect it.
I'm a long time, our current operating.
Average AUM for format.
non-GAAP net income from continuing operations attributable to controlling interest of joy.
Called out what should you I saw a 50 media.
Compared to U S dollar 90.
Not to put the screen media in the same period of 2021.
Gross noncash net income margin plus.
Hey punk straight percent in the quarter compared to 14, 8% in the same period of 2021.
Okay.
Profitability, we haven't maintained strong retail cashflow, it's bill.
All of the first quarter of 'twenty two.
Book net cash inflows from all weekend activities Oh.
$35 six media.
He's a man of Harris <unk> Harris embellished it vis a strong transportation of USD.
Paul Apologies two 9 billion as of December Okay by.
On page 22.
Yeah.
Now I would like to briefly walk shows our full year financial highlights.
Our total net revenues for the full year.
Tucson in Honduras, and 11 5 million.
That's a U S dollar to Saturday under 600, not just part of our media in 2020 one.
We have sustained our path to sustainable profitability.
Group level for the second consecutive year.
Yeah.
Our non-GAAP net income attributable to controlling interest on the call Michelle Joy for the whole year of 'twenty two.
You guys called out my hunters and 19 non pump stream media.
Bob It's just 3% from last caller, well I'm, George and eight 9 million and pen page 21.
Yeah.
Non cash collections are marching towards a full year a positive 22 eight.
Based on strip pricing.
Up from four 2% to 21.
Not only because I'm guessing that E com.
Expanded to 280 <unk>.
Media and content on day two.
non-GAAP net income margin improved to 14, 4% from 78% in the prior year.
Importantly, we have continued to be high speed time, especially I hold us through dividends and share repurchase.
Yeah, the full year.
Page 22.
In total we repurchased approximately USD 100, and sugar and part of one of our shares and paid kind of at this stage, yeah aggregate amount of U S dollar well items and $45 nine media.
Which altogether represent 142, 5%.
No GAAP net income.
As of the end of 'twenty two.
Still have a long U S dollar.
Hunter intermediate utilized corridor.
Our sun paper, thereby share repurchase program.
Given our current cash pretty soon.
Continue to balance sheet trends.
Sufficient cash to invest in building our long term locked up.
I cannot predict it.
Yeah, Hi, soon return for our shareholders.
All of our business outlook.
We expect our revenue also close the first quarter of 2023 to be between U S. Dollar.
552 million in the U S dollar 500 and something media.
Let's see.
Some final thoughts.
Page 22.
The fact that global alcohol beverage revenue.
Revenue growth.
Thank you.
Access to folks all high quality growth.
We've successfully he had a personal depreciation.
Hum.
[laughter].
And B O S.
The execution capabilities of our team.
Uh huh.
Based on history.
The low visibility are wrong as a global Montreal.
Maybe we'll remain attentive to the macro environment.
The Sim card.
<unk> always had our investments in building our call capabilities.
We remain confident in the long term potential of our global business.
And maybe also actively pursue long term growth opportunity.
And in general.
It's kind of all shareholder value.
I just got pushed.
Our remarks, operator, we'd now like to open up the call to questions.
Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to Vietnam.
If you wish to cancel your request please press star two.
If you're on a speakerphone please pick up the handset to ask a question when asking a question. Please state. Your question in Chinese first then repeat your question in English for the convenience of everyone on the call.
Your first question comes from Thomas Chong with Jefferies. Please go ahead.
Yeah.
So I'm sorry, So you said any challenge.
And what do your line is open.
So when.
When you become.
Oh quite a chunk cookies to full Oh gosh if improvements.
Yeah, Yeah, I'll hold equal sharing of one one times.
Uh huh.
Uh huh.
Oh, what do you want to comment.
Jimmy Mann Nishu your T cells.
Patricia.
Well my Basaldua behind Us I'm not sure how much.
Oh I see yeah.
Thanks for any tremendous taking my questions I have two questions. The first question.
All right.
And Michelle.
Commons Walker.
Walk us east and telephone and how should we think about the trend in <unk>.
Among different geography, and my second question.
Great.
But the new trend and Miami.
The inflection point thank you.
Okay.
Oh, Hello decision Lindsay Oh, well just go to the queue Sudan to legalize the Chinchillas Ooh and Ah Israel, you only know heightened Philadelphia little change or when would you be ingenious design.
I don't know who the chi that they were so sundar I, usually always just aida.
You don't know when you usually go many Ngos.
Do you think those phone calls or Google.
The cause of logging on to the old Man, Oh Man, you know I'm a person.
And as always we'll Oh no.
If you don't Oh Donuts.
Are you gonna be always fool yourself on mute.
Moody's you know so it should be abated, but suddenly it really is a new York, who this yeah yeah yeah.
Insulin I suppose all easiest for me, though.
So here's where youll know youll canola don't Moody's scenarios, albeit that's a wasteful.
Sure well it wasn't the only hard about what central London, and Sydney as you know there isn't a single high single easiest is all yours.
Similar to the U N.
Yeah no.
Oh hold buerkle, Oh now Liana, it's Neal.
C D V.
All right I'll leave it here this year well the lives on that.
Oh, it's down long ago aren't in our opinion, a myriad of musical shoes as it gets you should see it doesn't really cause a huge engine goes it was uncertain to us.
Yeah, Hi, AUM that down below to listen in butternut.
Oh yeah.
While it's only geological no I'm not sure.
We began to change it wasn't a gene I'm about to say.
So those are the bullet says Oh, yeah, Oh, yeah.
Sure.
Cause adult who's the.
Turning to Louisiana, so about them just yet.
You pull it all doesn't go solve it it's not going to Florida, We can't go into all of those all are.
Mhm Highway sushi, those as a freemium, Glenn who will open it one night yeah illegal.
The button is at home schooling needs due to the seasonal Congress at home, but they don't want I don't want to call. It.
Okay.
Thank you Thomas final question I'm on Sunday evening.
Yes.
Yeah.
And so in Q4, because it means that Oh nice monetization with June activity affected by the global macro uncertainty.
But we have no chance to get family coverage trends by region. As example, it's seen U S North America, and South East Asia, I mean, you're seeing sequential as well.
You at either recorded a double digit, whereas Q on Jan one.
I believe that was mainly due each all access operational and events and careful which promotes it creates activity in the region.
The Middle East region underperformed as a hosting the World Cup.
That's very good powerhouse users time spent and time and spending offline.
During the period.
We saw paying activities in that region began to recover immediately after defend when its conclusion.
Look back to full year performance across to defend market some markets turned out to be more resilient against the macro headwinds and achieve positive you know if he can't close such as Australia, and New Zealand, and Philippines, U K, Italy et cetera.
Look had foot of Yale Chinese three I believe that the recovery trends across different regions should be highly relate to chi.
Economic growth and the level of development of our operations and in the local region.
Overall speaking, we intend to stick to our globalization strategy with a diversified exposure.
Across the various markets, we will remain operational flexibility as we can effectively prioritize and allocate resources globally and locally into markets that are more efficient to.
She's a higher ally.
We will continue to focus on key markets, such as Europe America, Southeast Asia, and Middle East and the Eastern Pacific region, and we will closely track market changes and remain flexible and adaptive and now our operational strategy. Thank you.
Yeah.
Yeah, you know, it's just Oh, there's a change of the whole world when you price it.
Well this isn't a whole lot.
You have to do all daughters, who are C. G in English again.
No one of which of these you know you're the tell me that he don't let you do a high should we buy so you won't.
So what do you guys gentlemen, pardon he's on the leap year and I feel.
Due to the bathroom button she doesn't need might you cannot ship.
Yeah, I'm going to haul some bit lowball equally kills the patient it sounds like a blending deal flow or selfie, though felicia. He starts on this AUM in the low powered with joy.
Oh I know you all know they go along yeah, and I think the team really launches acuity easy Lufthansa you Eagle the use or.
Do you believe that RG pool to the tools Sheila seems you know someone yeah, we used to have one view, but it won't be because I'm not.
She got up on Lora <unk> who's the Orange School, please I'm just going down.
So the last one I know of mineralization at the Army. Our son, Yeah, you guys, who didn't believe we usually do not do it yourself and you well know believe me here those are the ones who want when you go out and do you watch Hunter AUM, that's part of it.
Yeah.
Quite some negative news coming out recently as well. So we believe that it's just possible macro headwinds knee affect us for another one or two cortez on given the current uncertainties. We believe that we will need to control short term risks and at the same time.
I'm, having some degree of operational flexibility.
And making sure that we are fully prepare to swiftly take action and capture growth opportunities, especially when the natural or use your paying sentiment takes a positive trend.
And according to our previous seasonality experience, usually Q1, it's a quieter season.
With less marketing activities, and we believe because topline should gradually stabilize in Q2, and we've seen a sequential and year over year growth in the second half of the year.
Similarly, we believe that the others segment should also ease in sequential growth in Q2. So overall speaking we believe that the year 'twenty three should be a year of a recovery in topline growth, especially in the second half and we will continue.
Continue to closely track the evolving market dynamics and flexibly adjust our operating strategy. Thank you.
Next question please.
Thank you. Your next question comes from Thomas Shen with Nomura. Please go ahead.
Oh Gosh, you got any sense you told it to you that I'm aware.
Download on T. He used to selling team is always how closer are we could tell you what's yet to tell her that.
Do you honestly tell me your calculus at all.
And you're in the field for a leader in the jumped to Utah long ago. So.
Do you find so thanks management for taking my question I have two questions. The first one I saw could you share the margin trends for all of our key segments such as if you go out and does that stuff. This is founded on the second question is that.
Could management share more color on the expenses on the margin itself for the entire company Miguel for 'twenty to 'twenty three that's up to you.
Okay.
She said she was Alex so like with ice shops are.
What are you are you and she said what Linda Lee rock shoes alcohol she got it.
So could you try and got noncash contingent me ready to sell the somebody told me I can talk about she called out a lot to do with that.
She's all peoples bank card to non cat, but you're only really she saw a we got pockets here.
This is Bob.
I'll buy french's.
Thank you all for you just want to wish you shall do that yourself.
I mean, you can tell me if you rent a car.
I know kind of equal part of off peak or the Modi T cell <unk>.
Sure sure.
Just something that bought chic all called out five five inches.
Of course, I'll come back Oh cool need at all to what you'd call could mean, showing she says doshi with you you're not so.
How much time do you like kind of Melbourne people liked it.
Indeed, some cheap ultimate lots.
Lockheed increasingly more Oh, so Tyler I think the balance sheet.
I'm quite sure that she talking to some she just so you know clearly you see kind of a trend yet you can hear me.
So no.
What are you people like park.
So not much closer or maybe a few months yeah, that's what I thought.
I'll go with that partnership.
I still feel free to shoot for Soc.
Total with pretty much all come thought that comprise because sometimes.
It's a funny and shouldn't yeah cultural quake tend.
Since your shop them, even shoot people like it's hard to know what you've got going.
Your industry too well to stop to stomach.
So what you're going to have most of them done.
No one's once all the coupons from here like kind El Pas are narrow hernia, well my shimazaki culture to Fontana, who uphold what's your Mojo Husky's Deluxe you thought you could get really well.
Well I mean, she coupons don't sushi ball, Chile cookbook agenda that says it all.
Yeah.
Thank you for your question. This is Alex I will take your question on the process to finish and margin outlook.
And so looking at the full year of trying to choose our profits, but that says unexpected.
Ashish a non-GAAP operating margin of <unk>.
Six 8% up by four percentage points and Eagle Sackman achieved a non-GAAP op margin of 14 four.
4%.
<unk> 5.8 percentage points.
From eight 6% last year.
This was mainly attributed to our enhanced operating efficiency at group level and also improve profitability at almost all product levels and if we take a closer look.
I think our seckman, so the phone apps and it too because segment's gross margin was improved by three seven percentage points from a 33, 8% to 37, 4% last year, and we see cost optimization happening at multiple constant.
XI tenants include change, our accounting cost payment channel expenses and other operating expenses as well.
And private level.
<unk> has maintained relatively stable when it comes to operating margin.
He has continue to cheer narrowed its operating loss by 87% year over year and other products I'm going to be go second also is very it's lossmaking trend and began to make a profit.
And therefore, yes so.
Looking forward to the year 'twenty three for Eagle Sept Man wearable steel prioritize high quantity sequence in the near term given the macro uncertainties.
But at the same time, we will ensure sufficient.
Operational flexibility when planning our enjoyed this allocations so that's to swiftly take action and capture logic, where there's opportunities when yoga.
Paying settlements take at harvest time.
Therefore for the full year Fannie three on a constant currency basis, we expect our non-GAAP operating profit margin for vehicle segment to remain roughly stable when compared to the level of.
'twenty two.
Maintaining certain resources full potential class.
Overall speaking at a group level, we intend to strike a strategic balance between navigating short term uncertainties and actively pursue long term growth, we expect to remain profitable and that's.
Ah self sufficient in our operating cash flows in the year 23. Thank you.
Yes.
Next question please.
Thank you. Your next question comes from Jasmine Wang with Credit Suisse. Please go ahead.
Yeah.
Oh, great. Thank you Juanita.
What I wouldn't do Shabaniyah coupons, so the email when what kind of JMP go lives for city dwellers, who Shaw fields in Ghana, and Portugal have why anytime you sound always usually changeover one in Gainesville Husky, Canada No. One makes you do quite well on marathon, yet where you would actually went out.
Yeah E. R. P. P. You that you should know what Michelle Michelle among all kind of all L. P. P you'd actually go quiet well.
Well thanks John .
Thanks management for taking my question. My question is about the user willingness management, who mentioned that snowball macro visibility remains limited what is your view on the trend of the paying user number of engagements and the E. R. P. P. You. This year. Thank you.
Oh, Oh, Cision University at Jerusalem, well excuse me excuse me, Susan I kind of know it cause the change or does it go when do you need which is easier to do the things we changed yet she only there's only from logical to me he's on them.
Typically you sound like you're saying that a woman noticeably oh yeah.
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So tell me if you don't like I don't know a minute time people pull their Google.
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But because it's usually you can get.
And the only thing you know monthly Bayou welding done well.
So we can get looser, you'll fool so video is.
PV yield so we don't know it's also uses of alcohol, but anytime you yeah.
Got it so he's with us Fiona Thompson Denison seen a woman, they're telling me that well you raise done she lives she shook out yet.
Hi, Thank you for the question. This is David I will take your question on gay paying user in our food trends.
So based on our observation in the past few forces a we've seen that global macroeconomic uncertainties have negatively affected European sentiment that's in place and the recent trend of our paying users and I falls and however, we did have an upset.
That the number of paying users have gradually stabilize finish Q3, a M E. R 22, and that the paying users in Europe , and North America have resumed sequential growth for two consecutive quarters.
Believe this could be an early sign of recovery for our monetization.
If I look at the phase of development and also from a mid to long term.
Two we believe our pet unit penetration rate and also the paying ratio of our products are still relatively low with MTN empty room for further improvement so in the year 'twenty three and we're still focused on our user growth and also the conversion of paying users.
We'll continue to cultivate our products and our user community and user satisfaction, which we believe are the fundamental driver for.
User paying user and also our full gross in a long time and we don't believe that recent trends will change our long term product strategy.
Your.
Next question please.
Thank you. Your next question comes from <unk>, Zhang with China Renaissance. Please go ahead go ahead.
Well he says I'll tell how it shifted on the Tivo, what's being Oklahoma and see just how much how close until you Austin here.
She was just from a car to get to your liking a hug only been any Patricia Oh Boy you got this you know 10 times. So my question here <unk> you know how have you all thought you thought girls projections for 222 at.
I'll move onto the icon of how can we use a 10 no monetization update.
Yeah.
Besides intangible you know what I'm sorry, it's always we have.
Oh, Oh, Oh, no the auto business, just countless alcohol Cynthia I'll send you your what's the tone that you could ship them a car until there's something like a hawk on when they get there you go.
Sure sure sure.
Got you and call somebody else.
Yeah.
Oh, there's a woman.
Have you changed that he is on a like hydro harmful doses, what I'll show you. The R. I V E. G. The single year with me, though he always each relevant Google email.
And it sounds like events you guys, how many months from a breakeven. So it was down to the woman's Union I'm, sorry, you said that it's a question I get a chance yeah. How does Moody's we don't have one or two now.
Okay.
Thank you Hubert this is David regarding our outlook for Nike and Hugo those products have prioritize our ally in there so consider.
Breakeven as a key operating them.
Or a change in the year 'twenty, two and we've seen positive results comes out from both products as well, especially with Nike achieving breakeven in the second half of year 'twenty. Two we believe that on a given that the product is now approaching a breakeven with.
Leave that to the product will be able to choose explore potential user recovery are on the basis of consistent profitability.
Yeah.
Thank you.
That's all the time, we have for a question and answer session. Today, I'll now hand back to management for closing remarks.
Thank you so much for your time and we look forward to seeing everyone next quarter. Thank you.
That does conclude our conference for today. Thank you for participating you may now disconnect.
Yes.
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