Q1 2024 QuantaSing Group Ltd Earnings Call
Okay.
Good morning, and good evening, ladies and gentlemen.
Thank you for standing by and welcome to Quant of Things, Earning Conference Call. At this time, all participants are
Thank you for standing by and welcome to Quanta things earnings Conference call.
At this time all participants are in a listen only mode.
We will be hosting a question and answer session after management's prepared remarks. Please note that today's event.
We will be hosting a question and answer session. After management's prepared remarks.
Please note that today's event is being recorded.
I would now like to turn the conference over to Ms. Leah Guel, investor relations associate director of the company. Please go ahead, ma'am.
Speaker Change: I would now like to turn the conference over to Mr. Leo Huang Investor.
Investor Relations Associate director of the company.
Please go ahead ma'am.
Thank you. Hello everyone and welcome to Qantasine's earnings call for the first quarter fiscal year 2024. With that today I'm still Pong Lee, our founder, Chairman and CEO , and Mr. Team <expletive> , our CFO . Mr Lee will provide a business overview for the quarter, then team will discuss the financials in more detail.
Speaker Change: Thank you Hello, everyone and welcome to Quanta things earnings call for the first quarter of fiscal year 'twenty four with US today are Mr. <unk>, our founder Chairman and CEO and Mr changed at all our CFO. Mr. Lee will provide a business overview for the quarter and then Jim will discuss the final.
Speaker Change: It shows in more detail following their prepared remarks, Mr. Li and team will be available for the Q&A session I would translate for Mr. Li you can refer to our quarterly financial results on that well I all website at IR adult harnessing Dot Com you can also access a replay of this call, although I I'll upset when it becomes.
Following their prepared remarks, Mr. Lee and Dean will be available for the QA session. I will
You can refer to our quarterly financial results on our IR website at ir.consourcing.com. You can also access a replay of this call on our IR website. We need to become available a few hours after this conclusion.
So available a few hours after its conclusion before we continue I would like to refer you to our safe Harbor statement in our earnings press release, which also applies to this call as we will be making forward looking statements. Please note that all numbers stated in the following management's prepared remarks are in RMB terms.
Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call, as we will be making forward-looking statements.
Please be note that all numbers stated in the following management's prepatrix marks are in R&B terms and will discuss non-gas measures today, which are multi-related explained and reconciled to the most comparable measures reported in our unused release and the file links with the S.
Speaker Change: And we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our.
Speaker Change: Our news release and filings with the SEC I'll now turn the call over to the C. O M soldier of Qantas, Inc. Mr. Li.
Ellen now turned a call over to the CEO and founder of Quantessine, Mr.
Mr. Li: Okay, Hello ever was a matched the founder of the company.
Okay, hello everyone, I'm Matt, the founder of the company. And thank you all for...
Mr. Li: Thank you all for dry off today.
We studied the new fiscal year with the Solid Culture. We focused on the growth of our carpet.
Mr. Li: We started the new fiscal year with a solid culture.
Mr. Li: Forecast on the gross or follow up call business.
which revolves around adult learning services. During this quarter, our revenue increased by 31.8% year-over-year, showing the success of our strategy to diversify our cost offerings. Notably, our efforts to know interest causes has grown strongly.
Mr. Li: Which revolves around an adult learning if somebody says during this quarter our revenue increased by 31 climbed to 8% year over year, showing the success of our spread due to diversify our course offerings, notably.
Mr. Li: Notably our proposed Snowy interest Cortez has growing strong late.
With 36.1 increase in revenue culture over culture.
With so two six points, while increasing revenue culture a culture.
This causes now a makeup around 47% of our total revenue. A large jump from the 18% they contributed just a year ago.
Mr. Li: This call there's no big hop around a 47% of our total revenue.
Mr. Li: Jump from the aging pretense the country built it is just a year ago.
Let me share some updates on what we are doing and have a quick look at our our recent success phase and overall performance.
Let me share some updates on what we are doing and have a quick look at our our risks in a success based on the overall performance.
As of September 30, 2023, we had around 100 and 3.3 million registered users.
Mr. Li: As of September 30.
30 2023.
Mr. Li: We had around 103.3 million that is started to use it.
representing a significant increase of
Mr. Li: Presenting a significant increase of our.
51.9% from 68.1 million as of September 30, 2022.
Mr. Li: 51.9 per cent from 68.
Mr. Li: Hey, its ponds 1 million as of September 32022.
Our paying learners rose as well, increasing by 18.2% compared to the same period the last year.
Mr. Li: Our pay your roles as well increasing by.
Mr. Li: 18.2% comparable.
Mr. Li: To the same period last year.
over the past few months, we have successfully grown our user base and our interested content is drawing more learners to our coaches.
Mr. Li: All of the pockets of your mouth is we have successfully grown our user base and our interest to content is drawing more than a two hour causes.
We have further enriched our cost offerings by providing more tools to help our learners build knowledge and skills.
We further enriched our course offerings by providing more tools to help our let us build the knowledge on the skus.
For example, we introduced learning tools with more detailed contents to facilitate the understanding of concepts such as reads and ETFs to renew our financial literacy learning platform.
Mr. Li: For example, we introduced a learning tool, it's more detailed contents to.
Mr. Li: Facilitate tainted the understanding of concepts.
Mr. Li: As we send the ETF to Gino our financial literacy learning platform.
This gives you just more knowledge and improves their overall experience when learning about Founder Concepts.
Mr. Li: This gave us the use of small knowledge and improve their overall experience when learning about founder to tap.
with this update. Genue has a trip to the close loop learning two systems.
With this update Geneva has a teva the closed loop learning tool system.
offering learners a more practical and comprehensive learning journey.
Mr. Li: Offering none of us are more practical and a comprehensive learning journey.
We have also been improving our causes structure in the past.
Mr. Li: We have also been improving our cost structure.
Mr. Li: Is it possible some.
Some of our causes, each had multiple structures. Because of this, causes lasted longer due to the transition between structures.
Mr. Li: Cortes each had a multiple is tractors.
Mr. Li: All states call space.
Mr. Li: The last page of lung <unk> due to the transition between structures.
We thought that our learners prefer to have a single instructor who can follow their full learning circle.
Mr. Li: So that's how we'll let us prefer to have a single structure, who kind of follow their full learning circle.
So, we have streamlined our process by assigning one structure and one assistant for our financial literacy courses.
Mr. Li: So we have a streamlined.
Mr. Li: Process by a stunning one structure and assistant for our financial literacy Cortes.
Mr. Li: This result are good.
We improved our official unofficial thing. We will lower our
Mr. Li: We improved our operation operational efficiency.
Mr. Li: They were lower as our personal call.
fewer people, jobs out of coffees, and the completion rate remains steady.
Mr. Li: Fewer people jobs to also causes.
Mr. Li: And the complete and the completion rate remains steady.
Notably, our customer satisfied reach for the conscious speed.
Mr. Li: Notably our customer satisfied rich thought.
Mr. Li: The causes speeds.
We find structures, remains stable at an impressive 98 point.
Mr. Li: We find that struck tariffs remain stable at an impressive eight T.
Mr. Li: And that 98 pardon bio pretense.
as a crucial part of our growth stretch
Mr. Li: As a crucial part of our go stretch stress D. We regularly refine our course offerings to align with.
We regularly refine our cost offerings to align with
Mr. Li: Tending to mass.
For short video courses on our John Dren platform, we determined a weekly insights section to help our learners stay on top of the training topics on short video platforms. And the recent 10 days.
Mr. Li: So we do causes all of our Johnson platform.
Mr. Li: We designed a weekly insights section two how power, let us stay on top of the trending topics on short video platforms.
Mr. Li: The recent temporary C platform Ruth.
This not only hence the quality and visibility of their work, but also catered to their extra curricular content needs.
Mr. Li: Not only has the quality and the visibility of the day, our work, but also catering to their extra curricular.
Mr. Li: Contend to news.
Let's turn to Chanchit, our Silver Learners focused on platform.
Mr. Li: Let's turn to change at our Seaworld on us focused a plausible.
We made an important change by moving from using external causes when we first launched and during its early stages to creating our own content.
Mr. Li: We made an important change by moving from using Ah at Sterno culture is what are the first to launch the and ER during his early stages to creating our own content.
We have designed a unit 3D approach that combines costs with AI tools and practical exercises.
Mr. Li: We have designed a unique three D approach that combines cost with AI tools and.
Mr. Li: The practical exercises.
that is tailored to senior demo graphics.
Mr. Li: Does that is tailored to send their demo were fixed.
We have improved various elements of the cottage.
Mr. Li: We how improved various elements of the Cortez.
including content volume, difficulty level, and the tools and logic used in the cost interface.
Mr. Li: Including content volume.
Mr. Li: Coty level and the tools and the logic.
Mr. Li: <unk> used to Enzo cause interface.
This shift also gives us more control over our content dynamics as better at adapting to 10 days in learning behavior.
Mr. Li: This shift also give us more control over our content out of that makes us better at adapting to changes.
Mr. Li: In learning.
Mr. Li: Behavior.
Our goal is to make sure our content is always interesting if Matthew and the user
Mr. Li: Our goal is to make sure our contention is always interesting.
Mr. Li: If all my two and a useful.
Chunch has become an industry leader in offering causes that truly meet the needs of the senior population.
Speaker Change: <unk> has it become a industry leader in offering causes that to truly meet the needs of the senior population.
We remain committed to delivering high quality tailored learning experience.
Speaker Change: We remain committed to delivery of high quality tailored learning experience and.
And we are excited about the positive direction of our platform.
And we are excited about the positive direction of our platform.
Meanwhile, we are contributing to organize offline events to enhance our brand awareness.
Speaker Change: Meanwhile, we are contributing to organize offline events to enhance our brand awareness.
For example, on July 18, we hosted an offline anniversary event for Chenyu. They invited various
Speaker Change: Example.
Speaker Change: On July 18, we hosted an offline anniversary events fall she knew.
Speaker Change: They invited various stakeholders.
including industry leaders, business partners, employing, represent, represent, choose, and many more.
Speaker Change: Including industry leaders business upon us employment employee.
Speaker Change: A replay it then T b prison to choose.
Speaker Change: Many more.
During the event, we announced our nonprofit.
Speaker Change: During the event, we announced our non-profits.
collaborations and on the field, our latest wide paper on financial literacy.
Collaborations and unveiled our latest a white paper on financial literacy.
We encourage conversations about expanding financial understanding and recognize outstanding contributions through a wealth.
Speaker Change: They encourage the conversations about expanding financial on a Sunday and recognize the outstanding contributions.
Speaker Change: Through our boss.
This event played an important role in enhancing our pro-operative culture and further fostered our brown awareness.
Speaker Change: This event played an important role in it.
Speaker Change: You haven't seen our corporate culture, and a further bolster our brand awareness.
Our offline events also offer users integrated online learning experience.
Our offline events also offer users a integrated allow flat.
Speaker Change: Learning experience.
This events allow users to apply what they learn to realize situation.
Speaker Change: This event allows users to apply what they learn to real life situations.
and how we enhance the user engagement within our learner community. Thank you.
Speaker Change: And how we enhance the user and good to bench, whereas in our leather community.
Speaker Change: During the culture.
We organize the memory and short-value competitions, attracting a dynamic group of motivated learners.
Speaker Change: Reorganize the memory and the software to competition.
Speaker Change: Attracting a dynamic group of motivated slowness.
This competition gave those completing our courses of final challenge.
Speaker Change: This competition.
Speaker Change: Do those completing our coffee is a fine a final talents.
Reunifrost. With how learn
Speaker Change: We even thought what the how.
Speaker Change: Right.
and give them an opportunity for self-expression.
Speaker Change: And it gives them a opportunity for self expression.
Our senior learners show resilience, competitive needs, and the law for learning.
Speaker Change: Our senior loan us, so resilient compared to nurse and allow for learning.
setting a gritty example for younger generation.
Speaker Change: A great example for younger generations.
We have received lots of positive responses from learners.
Speaker Change: We have a really stay with lots of put two responses from learners.
which are widely circulated within our learning groups, both in learners' motivations.
Speaker Change: Which are vitally circulated in our learning groups posting learn us motivation.
Speaker Change:
Speaker Change: Our offline activities go beyond competitions.
Our offline activities go beyond competitions, for example. They will organize the various events on their changes.
Paul.
Speaker Change: I'm going to ask the various events on the attention.
where thinner learners can connect through calligraphy, piano, and standing meditation.
Speaker Change: Were thinner none of us can can knock two through our colleague Rafi, a piano and standing meditation.
Speaker Change: Sure appreciation of their offices he visits a mountain illness has built a strong emotional bond with our community.
shared appreciation of these events. Among senior learners has built a strong emotional bond with our community.
Our Learn Online and the President of LAN approach has greatly increased learner satisfaction.
Speaker Change: Our online and our present offline approach has greatly.
Speaker Change: Crist learner satisfaction.
Internally, to ensure overall learner satisfaction and our observational efficiency, we integrate it customer feedbacks into our service evaluation system, this culture.
Speaker Change: Internally to ensure all learner satisfaction on our operational efficiency.
Speaker Change: We integrated customer feedback into our service evaluation system this quarter.
Speaker Change: This allow us to do a systematic analysis all the feedback.
This is a lot of us to do a systematic analysis of the feedback.
Sultane H based on SPACs like Timeline.
Speaker Change: So I'll turn H based all aspects like timelines.
quality and overall sentiment.
Speaker Change: The quality and Oh, we're all so.
Speaker Change: Sunday mess.
The founding skill has more come
Speaker Change: Are the founding and scuba as a more come.
complete picture of our services and the health part to better manage our service quality.
Speaker Change: Politte picked.
Speaker Change: Picture of our services on to help us to better manage our service quality.
Enterprise service remains a business upsell channel and currently represents 8% of our total revenue.
Enterprise service remains a business upsell tunnel.
Speaker Change: And currently represents 8% of our total revenue.
Our main focus is still on to see online learning service. Our strategy is centered on our adult learning service.
Our main focus is still on to see online learning service. Our strategy is centered on our adult learning service.
with the aim of improving people's lives and wellbeing.
Speaker Change: With the aim of also improving peoples lives on the L. B.
while using our existing results to maximize shareholder return. Turning to our new bit-
Speaker Change: Well using our existing result is to maximize shareholder return.
Speaker Change: Turning to our new business in initiatives.
Live e-commerce continues to benefit from our existing user rich and has generated solid DMV, reaching RMB 41.8 million during the first quarter of fiscal year 2024.
Speaker Change: E Commerce.
Speaker Change: <unk> continues to benefit from our existing user rich and has generated a solid Jim we reached RMB 41.8 million.
Speaker Change: During the first quarter, all fiscal year 'twenty to default.
We are adopting a prudent growth approach and our current focus remains on South of Chinese Lakers.
Speaker Change: We are adopting a prudent growth approach under our current focus remains on the South also Chinese later.
As part of our commitment to expand globally, we recently acquired Calis adegregation.
Speaker Change: As part of our commitment to expand globally way recently, a crowd of calories at accretion.
We will share more updates on this when they are available.
Speaker Change: We will share more updates on this when they are available.
In summary, our strong first fiscal quarter performance
Speaker Change: In summary, our strong first to physical called her performance.
was driven by our commitment to adult learning service.
Speaker Change: Ah was driven by our commitments to adult learning services.
and the significant growth of personal interest causes.
Speaker Change: And the significant growth.
Growth of personal interests causes.
our focus on refining cost structure. And the offering has been our learn-a-base.
Speaker Change: Our focus on refunding our cost structure.
Speaker Change: And offering a husky spend our learner base.
hosting offline events has posted around the awareness and the sustained high-cellic satisfaction risk.
Speaker Change: Hosting offline events has boasted a brown the awareness and the 10th highest satisfaction rates yeah.
AI-driven operation efficiency improvements through systematic feedback, multi-monitoring has been vital.
Speaker Change: Yeah, driven operation efficiency improvements through systematic feedbacks motivate more monetary has been they talk.
Our ongoing mission is to enhance individual's quality of life through lifelong learning opportunities.
Speaker Change: Our ongoing mission is to enhance individuals' quality of life.
Speaker Change: Through lifelong learning opportunities.
We appreciate our shareholders on reviewing trust and the support as we strive for continuous progress.
Speaker Change: We appreciate urge our shareholders a labeling trust and support as we strive for continuous progress.
We will continue to provide regular updates on our junior head. With that, I will turn the call over to Tim to discuss the details of our financials.
Speaker Change: We will continue to provide regular updates on our trulia had with that I'll be able to turn the call over to Tim to discuss the details of our financials.
Speaker Change: Thank you.
Thank you. Before I go into the details of our financial results, please know that all amounts are in R&B terms. That reporting period is the first quarter of fiscal year 2024, which is the fiscal year ending on June 30, 2024. And that in addition to gap matters, we will also be discussing non-gap matters to provide greater clarity on the trends in our actual operation.
Speaker Change: Before I go to go into the details of our financial results. Please note that all amounts are in RMB terms.
Speaker Change: The reporting period, the first quarter of fiscal year 2024 reaches a fiscal year ending on June 32024.
Speaker Change: And that in addition to GAAP measures will also be discussing non-GAAP measures to provide greater clarity on the trends in our actual operations.
For the first quarter of fiscal year 2024, they grew our total revenues by 31.8% year-over-year, and the 4.9% quarter of a quarter to 869.1 million, many driven by growth from other personal interest courses.
Speaker Change: For the fourth quarter of fiscal year 'twenty 'twenty four we grew our total revenues by 31, 8% year over year and the four 9% quarter over quarter to 806 states $69 1 million, many driven by growth from other personal interests courses.
Speaker Change: Well most of our revenues revenues from individual Orlando, New services grew by 29, 2% year over year to 755.9 meeting well, 87% of total revenues.
Among our revenues, revenues from individual online learning services grew by 29.2% year-over-year, to 765.9 million or 87% of total revenues. Many due to continued demand for other personal interest causes, consistent with our strategy to diversify cost offering.
Speaker Change: Due to continued demand for other personal interests courses consistent with our strategy to diversified course offerings.
Our cross-billion of individual online learning services increased by 14.6% over year to 762.1 million.
Speaker Change: Our gross billings of individual online learning services increased by 14, 6% year over year to 762 1 billion.
Reign used from enterprise services were 68.4 million, a change of 3.1% from a year ago. I represent 3.9% of total revenues.
Speaker Change: Revenues from enterprise for US is we're six to eight point for meeting the change of seven 1% from a year ago, I Rip representing some 49% of total revenues.
primarily due to a decline in revenues from related parties transactions.
Speaker Change: Primarily due to a decline in revenues from related party transactions.
Gross profit was $730.9 million.
Gross profit was 759.
Speaker Change: 9 million.
Speaker Change: Representing a gross margin of 86, 4% compared to eight 6% in the same period last year.
Representing a growth margin of 86.4%, compared to 88.6% in the same period last year. Total operating expenses was 700 and 6.7 million compared to 677.8 million in the same period last year.
Speaker Change: Total operating expenses were $706 7 million compared to 677.8 million the same period last year.
to break this down, sales and marketing expenses for 620.2 million, representing a change of 6.7% year-over-year. As we interreased, explaining or marketing and provoked promotional activities for other personal interest courses, as a percentage of total revenue, non-gap sales and marketing expenses.
Speaker Change: To break this down sales and marketing expenses were 620 points to merely.
Speaker Change: Representing a change of six 7% year over year.
Speaker Change: As we increased spending on marketing and prove it.
Speaker Change: The motion of activities for auto personal interests courses.
Speaker Change: As a percentage of total revenue non-GAAP sales and marketing expenses.
which excluded shared-based compensation decreased.
Speaker Change: Which excluded share based compensation compensation decreased two.
to 70.8% from 86.2% a year ago.
Speaker Change: So 70.8% from 86, 2% a year ago.
Research and development expenses were 43.8 million, representing a decrease of 16.3% in over year. Primarily driven by decrease in share-based compensation. As a percentage of total revenue, non-GAPR and the expenses, which exclude share-based compensation, decreased to 4.4% from 6.1% a year ago.
Speaker Change: Research and development expenses.
43 8 million.
Speaker Change: It was indeed, a decrease of 16, 3% year over year.
Speaker Change: Primarily driven by a decrease in share based compensation.
Speaker Change: As a percentage of total revenue non-GAAP, R&D expenses, which exclude share based compensation.
Chris to 4.4% from six 1% a year ago.
General and administrative expenses were 42.8 million, representing a decrease of 3.7% year-over-year, primarily due to decreases in share-based composition and office expenses, partially off-site bio-interest in professional services.
General and administrative expenses were $42 8 million.
Speaker Change: Presenting a decrease of three 7% year over year, primarily due to decreases in share based compensation and office expenses, partially offset by an increase in professional service fees.
At the percentage of total revenue, no gap GNA expenses, which excluded share-based compensation, decreased to 3.4% from 4.1% a year ago.
Speaker Change: Percentage of total revenue non-GAAP G&A expenses.
Speaker Change: Excluding share based compensation decreased to three 4% from four 1% a year ago.
Net income was 66.7 million, including share-based compensation. Adjusting net income was 94 million, representing an adjusted net margin of 10.8% during the quarter.
Speaker Change: Net income was 66.7 million excluding share based compensation, but that's in that fee income was 94 million representing an adjusted net margin of pinpoint 8% during the quarter.
Speaker Change: Yeah.
Basic and diluted 19-com per share will R&B 0.30
Speaker Change: Basic and diluted 19 income per share were RMB there upon to 30.
9 and R&B 0.38 respectively during the quarter. A drastic basic and diluted nagging compare share will R&B 0.56 and R&B 0.54 respectively during the quarter. Turning to our banish it as of September 30th, 2023.
Nine and RMB there upon 38, respectively. During the quarter adjusted basic and diluted net income per share were RMB <unk> 50.
Speaker Change: 56, and RMB <unk> 54, respectively during the quarter turning to our balance sheet.
Speaker Change: As of September 32023.
Our company hired 879.9 million in cash and cash equivalents and short-term investments compared to 930.6 million as of June 30, 2023.
Speaker Change: Our company had 879.9 billion in cash and equivalents and short term investments.
Speaker Change: Compared to 936 million as of June 32023.
Lastly, I want to provide some color on our outlook for the second quarter of fiscal year 2024, which is a fiscal year ending on June 30, 2024. We expect revenues to be between 920 million and 950 million, representing a year-to-year increase of between 17% to 20.8%.
Speaker Change: Lastly, I want to provide some color on our outlook for.
Speaker Change: For the second quarter of fiscal year, 'twenty, 'twenty, four which is our fiscal year ending on June 30, 'twenty 'twenty four we expect revenues to be between $920 million and 950 million representing a year over year increase of between 17% to 28.
We sent these.
Speaker Change: These projections.
Taking into consideration the carbon market conditions preventing industry.
Speaker Change: Taking into consideration the carbon market conditions prevailing in the industry.
Through our reporter, we've been leveraging AI to boost our operational efficiency.
Speaker Change: Through our recorder, but being leveraging AI to boost our operational efficiency.
Our focus on delivering high quality, personalized online learning services, and the diverse range of courses, remain unchanged.
Speaker Change: Our focus on delivering high quality personalized online learning services and a diverse range of causes remain unchanged.
With a solid performance in the first quarter of fiscal year 2024 and a strong financial position with diversified revenue streams, we are well poised to tackle challenges and capitalize our growth opportunities.
Speaker Change: With a solid performance in the fourth quarter of fiscal year 'twenty to 'twenty, four and a strong financial position with diversified revenue streams.
Speaker Change: Well poised to tango challenges and capitalize on growth opportunities.
that dedicated to creating value for both our customers and shareholders.
Speaker Change: But dedicated to creating value for both our customers and shareholders.
That concludes my prepared remarks. Our leader, let's open up the core for questions. Thank you.
Speaker Change: That concludes my prepared remarks, operator, let's open up the call for questions. Thank you.
Thank you. We will now begin the question and answer session.
Speaker Change: Thank you we will now begin the question answer session.
To ask a question, you may press star then one on your touch tone phone.
Speaker Change: To ask a question you May Press Star then one on your Touchtone phone.
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Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
When asking a question in Chinese, please translate your question in English for the convenience of everyone on the call.
Speaker Change: When asking a question in Chinese please translate your question in English for the convenience of everyone on the call.
At this time, we'll pause momentarily to assemble our laughter.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Once again to ask a question.
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Ladies and gentlemen, to ask a question, please press star then one to enter the question to you.
Speaker Change: Ladies and gentlemen to ask a question. Please press Star then one to enter the question queue.
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Okay.
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Yeah.
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The first question today comes from Hunter Diamond with Diamond Equity Research. Please go ahead.
Speaker Change: The first question today comes from Hunter Diamond with Diamond Equity Research. Please go ahead.
Hi everyone, congratulations on the results. So one of my questions you've discussed AI, where are you seeing the most impact and where are you looking more excited about AI within your business as it, the ability to lower costs, increase user engagement, maybe you provide more color on where you're most excited about AI's impact and for quantity.
Hunter Diamond: Hi, everyone. Congratulations on the results, but one of my questions. You discussed AI, where are you seeing the most impact and where are you looking or more excited about AI within your business is it the ability to lower cost increased user engagement, maybe provide more color.
Hunter Diamond: Where are you most excited about aig's impact for Qantas thing.
Hunter Diamond: Yeah.
Hunter Diamond: Okay.
Okay, thank you for your question. I will answer in Chinese and the... Bye. Bye.
Hunter Diamond: Okay. Thank you for your question.
Hunter Diamond: I will answer in Chinese and.
Hunter Diamond: Uh huh.
Hunter Diamond: Well they'll be able to translate it for me okay.
Vulnerable application requires help from us to provide ourselves with construction efficiency.
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Hunter Diamond: You may.
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If for some money, back up with stage recommendations. Also make sure there are some part that applies to materials. We can use a pair of tools, markings and atop this type of work.
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Speaker Change: Oh gosh of them, but the pressure in the near term.
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Speaker Change: They might go to harsh I assume the just your touch on dealer woman the took a toll but you may not be.
Speaker Change: Hi.
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Speaker Change: Do you want anything you can say Aloha that'll show up in the Utica.
Speaker Change: Sure.
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Speaker Change: So your total ankle.
Speaker Change: Oh Man you Gotta haulage for sure a woman's angle to survey Tango you all did he or she she lost your chicken when you go a salvage Joshua Dicker Yugo hotshot to out of home doesn't go can you show the like or you don't put against these young called home.
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Speaker Change: It should be it should you pay amongst yourselves.
Speaker Change: Oh, it'll hydrogel sure.
Speaker Change: Well frankly, just your differentiated unless you're sure you're good to go washout can quit labor John Mcphee inquire what she told me that you should just shut down the Utah ER should be it.
The 1, the Ho intuation, the to eopopolizian food, the.
Speaker Change: That's why are the heart of them tend to assume that a politician a full day.
Speaker Change:
For our business, AI has made a significant impact in a number of areas by enhancing efficiency and improving user engagement. Why not for use of AI?
Speaker Change: I'll tell you on the phone about the harm that you'll say you found me unless you're sure you teach me all the time, which one do you want your comments, you're showing a woman theater to cook, which again the drilled but when she.
Speaker Change: Two of them in a year, where should she is always going to be dull.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: For a visit.
Okay.
Speaker Change: In a number of areas.
Speaker Change: And improving user engagement.
Speaker Change: One notable use of AI is quality inspection.
Speaker Change: AI is used to supervise and monitor communications records, including text and voice interaction in the sales process.
The supplemented quality inspection allows us to effectively to identify and handle any errors on our site, ultimately reducing customer complaints and elevating the overall quality of user services. This has greatly enhanced our operational efficiency.
Speaker Change: Also related to quality inspection allows us to effectively.
Speaker Change: Handel.
Speaker Change: Oh.
Speaker Change: Reducing customer complaints and elevating the overall quality of user base.
Speaker Change: Great.
Operational efficiency.
Speaker Change: AI for quality inspection, we have.
So, you can significantly reduce the pulse, cutting down on labor pulse, significantly as well when compared to the manual inspection processes.
Speaker Change: Significantly reduced the cost cutting down on paper costs significantly as well when compared to the manual inspection processes.
Speaker Change: Another area, where AI proofs highly.
highly beneficial is the integration of user profiles. This involves two may add
Speaker Change: Highly beneficial is empty creation of user profiles. This involves two main aspects first profiles provides a detail summary of the MTV U users' information fostering more informed and he's active communication second.
First, profiles provide a detailed summary of the Indians.
more information, fostering more informed and effective communication.
AAP plays a role in the development of the group profiles, but I've identified users with similar
Speaker Change: Plays a role in the development of the group profiles that.
Speaker Change: Thank you find users with similar characteristics. These groups profiles can be I elaborated across various isn't it systems.
These groups for files can be leveraged across various
A personalized approach based on the user profiling greatly enhances user engagement and the interaction, helping us to optimize our business processes.
Speaker Change: This personalized approach based on the user profiling gradually enhance user engagement and interaction how to optimize our business processes.
Speaker Change: Betsy.
Speaker Change: The answer thank you.
Great, thank you for the additional color. My second question was around e-commerce. I know you mentioned that as a new potential revenue opportunity. Can you provide an update on that segment or any other revenue growth areas you're seeing or potentially seeing outside the core offerings of your business?
Speaker Change: Great. Thank you for the additional color. My second question was around E. Commerce, I know you mentioned that new potential revenue opportunity can you provide an update on that segment or any other revenue growth areas.
Speaker Change: Seeing or potentially seeing outside the core offerings of your business.
Speaker Change: Yeah.
Thank you. I will take the question. In terms of the live e-commerce, leveraging the companies, solid infrastructure in terms of the technology and database, and also the system developed by ourselves, we are excited to share that our entry into the Chinese liquor market has been met with positive responses from our user base.
Speaker Change: Yeah. Thank you I will take the question.
Speaker Change: So in terms of the E.
Speaker Change: E Commerce are leveraging the costs the company's solid infrastructure in terms of the AR technology and database and also the systems develop ourself.
Speaker Change: Cited to assure that.
Speaker Change: Our entry into the Chinese.
Chinese liquor market has been matched with ER positive responses from our user base.
We only started our live e-commerce business in June this year and we have already achieved a sizable GMV of the latest quarter is over around our mid 42 meeting during the quarter so
Speaker Change: We only started our live e-commerce business in June this year, and we have already but shoot a sizable T M D.
Speaker Change: Oh, the latest quarter is over Oh wrong, RMB 42 meeting.
Speaker Change: During the quarter, so our business model has proven to be effective.
Our business model has proven to be effective.
Speaker Change: The live streaming E. Commerce platform has provided are engaging avenue for our customers to explore on purchase a diverse range of high quality training sneakers.
Also in line with our commitment to innovation and customer satisfaction, we are actively engaged in developing new products and services to enhance the overall user experience.
Speaker Change: Also in line with our commitment to innovation and customer satisfaction. We are actively engaged in developing new products and services to enhance the overall user experience.
This includes collaborations with renowned liquor brands introducing exclusive offerings and integrating cutting-edge technologies to make the shopping process more interactive and enjoyable for our youth.
Speaker Change: This includes a collaboration with renowned liquor brands, introducing exclusive offerings and integrating cutting edge technologies to make their shopping process more interactive and enjoyable for our users.
As we continue to invest in this new RAM, new stream and this business, we remain optimistic about the opportunities it presents.
Speaker Change: But as we continue to invest at least a new revenue stream and this business, but we remain optimistic about the opportunities it presents.
The combination of online learning and live streaming e-commerce has proven to be a synergistic approach creating a new, unique ecosystem for our users, including the learners, to expand our business scope and also to make our platform more attractive. Thank you.
Speaker Change: The combination of online learning and live streaming e-commerce has proven to be yours.
Speaker Change: Synergistic approach, creating a new unique ecosystem for our users, including the learners to expand the our business scope and also to make.
Speaker Change: Our platform more attractive.
Speaker Change: Got you.
Speaker Change: Okay.
Speaker Change: Great. Thank you. Thank you for the additional information and appreciate taking my questions.
Great, thank you. Thank you for the additional information and appreciate taking my questions.
Yeah. Thank you very much.
Speaker Change: Your next question comes from Steve.
The next questions comes from Steve Silver with Argus Research. Please go ahead.
Speaker Change: E Silva with Argus Research. Please go ahead.
uh... thanks operator and thanks for taking my questions uh... i was hoping you could provide uh... your current thinking around the economic backdrop in china as it relates to quanta sings prospects to continue to grow the enterprise services vertical
Speaker Change: Thanks, operator, and thanks for taking my questions.
Speaker Change: I was hoping you could provide your current thinking around the economic backdrop in China as it relates to Qantas things prospects to continue to grow the enterprise services vertical.
And with that, just given the growth of the upselling and the new market opportunities combined with the company's strong balance sheet, are there any other new paths being explored to expand the user base?
Speaker Change: And with that just given the growth of the Upselling and the new market opportunities combined with the Companys strong balance sheet.
Speaker Change: Are there any other new paths being explored to expand the user base.
or the strategy more about executing on the current programs that are currently in place.
Speaker Change: Or is this strategy more about executing on the current programs that are currently in place.
Yeah.
Okay, thank you. I'll answer your question. In terms of your first question, economic conditions in China are dynamic. And also, though many challenges, but the high quality growth is still on a way and with a good trade. And we are keeping a close eye on the landscape so that we can adapt our strategies accordingly.
Speaker Change: Okay. Thank you I'll.
Speaker Change: I'll answer your question.
In terms of the your first question.
Speaker Change: Normally conditions seem to kind of a dynamic and also a little bit on any changes but the.
Speaker Change: High quality growth as do all the way on visa.
Speaker Change: It's a good trip.
Speaker Change: We are keeping a close eye on the landscape, so that'd be kind of adapt our strategies accordingly.
despite potential challenges, we see many opportunities for the continued development of the new enterprise service products to ourselves with the our target market.
Speaker Change: Despite potential challenges, we see many opportunities for the continued development of the new enterprise service products to offset what we see our targeted markets.
China's robust and rapidly evolving digital ecosystem combined with the government's emphasis on technology and innovation creates an environment conducive to the growth of online services. This includes enterprise solutions that cater to the evolving needs of businesses in China. And also I think
Speaker Change: China is robust and rapidly evolving digital.
Speaker Change: Ecosystem combined visa government emphasis on technology and innovation.
Hunter Diamond: H, but environment conducive to the growth of online services.
Hunter Diamond: This includes enterprise solutions that cater to the evolving needs of business if they are in China.
Hunter Diamond: And also I think.
Because there are so many small and media-sized companies in China, and also they are owned by the small persons, by the small businesses. I also need the enterprise, maybe some courses.
Hunter Diamond: Because there are so many small and medium sized companies in China, and also Oh and the buys the small person on my by the small businesses I'll also need.
Hunter Diamond: Price, maybe some courses and maybe some systems on techniques to help them to upgrade and their busiest operating skills and to enhance their knowledge and to strengthen their own business grows so both of the technology side and.
and maybe some systems and techniques to help them to upgrade and their business operating skills and to enhance their knowledge and to strengthen their own business growth.
So both of the technology side and the market demand side creates a very
The market the demand side.
It's still very Oh.
A great market, it's great potential for our business development.
Hunter Diamond: Great.
Hunter Diamond: Market with great potential for our business development.
So our commitment to seeing as the forefront of the technology advances position as favorable to leverage the opportunities, as I just mentioned, also presented by the dynamic Chinese market. They actively invest in research and development and to create innovative enterprise service products and services that address which we address the specific demand of our target market.
Hunter Diamond: So our commitment to staying at the forefront of technological advances.
Hunter Diamond: Fisher as favorable to leverage the opportunities as I. Just mentioned are all also presented by the dynamic Chinese market.
Hunter Diamond: But actively investing in.
Hunter Diamond: Research and development and to create innovative enterprise service products and services that address vis vis what drives the specific demands of our target markets.
Furthermore, our strategic partnerships and collaborations with the Chinese business community enhance our understanding of the market needs and preferences. This insight allows us to treat our enterprise services to along with the evolving requirements of our customers enhancing our ability to upsell and provide additional value.
Hunter Diamond: Furthermore, our strategic partnerships and collaborations with our Chinese business community.
Hunter Diamond: Our understanding of the market needs and preferences. This insight allows us to tailor our enterprise services.
Speaker Change: Along with the evolving requirements of our customers, you're halting our ability to upsell and provide additional value.
And also for your second question, I think in terms of the...
Speaker Change: And also for your second question.
Speaker Change: I think in terms of the.
new markets, opportunities, and also the user base. We recognize the dynamic nature of the online learning and livestream e-commerce landscape. Well, our current initiatives have later solid foundations. We are actively exploring and developing new channels.
Speaker Change: New market opportunities and also the user base are we recognize the dynamic nature of the online learning and Livestream E Commerce landscape well our current initiatives have laid a solid foundation, we're actively exploring and developing new channels too.
to both upsell to existing users and tap into new markets.
Speaker Change: Both upsell to existing users on tapping into new markets.
And currently we have a very diversified online channels to acquire the users. And also, we just released, we have a lot of user-based, which positioned us a good infrastructure to grow the users' business opportunities with the platform. Let's take a look at the data.
Currently we have Oh.
Speaker Change: Very diversified online channels to acquire users and also readdress it relates to we have a large user base, which.
Speaker Change: Position us a good.
Speaker Change: Infrastructure to grow the users this is opportunity to be the platform.
Speaker Change: But take it to.
and the planned strategic approach. First, we are committed to executing and optimizing our current initiatives to ensure the deliver maximum value to our existing user base. These efforts include refining our online learning content, enhancing the last streaming e-commerce experience and continuously analyzing user feedback to make data-driven improvements.
Speaker Change: Pronged strategy approach first we are committed to.
Speaker Change: Executing and optimizing our current initiatives to ensure they deliver maximum value to our existing user base. These efforts include refining our online learning content Huntington's allowed streaming e-commerce experience and are continuously analyzing user feedback.
Speaker Change: To make data driven improvements.
At the same time, we are strategically expanding our horizons by identifying new markets and opportunities. The evolving landscape of online education and e-commerce, Lively Commerce presents us with numerous avenues for growth. We are exploring partnerships, diversifying our content offerings, and elaborating emerging technologies to reach and to have audiences.
Speaker Change: At the same time, we are strategically expanding our horizons by I think to find new markets and opportunities.
Speaker Change: Landscape of online education, and E Commerce E Commerce presents us with numerous.
Speaker Change: Avenue for growth.
Exploring partnerships diversify our content offerings and elaborating emerging technologies to reach untapped audiences.
Speaker Change: Okay. Thank you for the color I appreciate it thank you.
Speaker Change: Yeah.
The next question comes from Pat McCann with Noble Captain Market. Please go ahead.
The next question comes from Mccann.
Speaker Change: <unk> capital market.
Speaker Change: Go ahead.
Hi, thanks for taking my questions and congrats on the strong growth from the quarter. My first question has to do with the growth. I guess I'm wondering if you could give any more color on which particular courses in the other personal interest category were driving the growth.
Speaker Change: Hi, Thanks for taking my questions and congrats on the strong growth in the quarter. My first my first question has to do with the growth or I guess I'm wondering if you could give any more color on which particular courses in the all other personal interest category we're driving.
Speaker Change: The growth.
Speaker Change: Okay.
Speaker Change: Any anymore.
Sorry. And then my second question is, would be if you could just also comment on the development of your recent acquisition in Hong Kong, the Kelly's education. And if you could just give any.
Speaker Change: Alright, and then my second question would be if you could just also comment on the development of your your recent acquisition in Hong Kong, The Kelly's education and.
If you could just give any.
Any commentary on how that acquisition has gone and how that business is growing and maybe how that leads into how you view further expansion going forward.
Speaker Change: So any commentary on how that acquisition has gone and how how that business is growing and maybe how that leads into how you view further.
Speaker Change: Spansion going forward.
Okay, great. Okay, for your first question, I think, I think first...
Okay, great well, okay. So your first question I think I.
Speaker Change: I think first we always.
We always take a holistic approach in terms of the RAM new growth, because I think our core capability is to see the rocket trend and tailor-made the interesting contents and easy-to-end content to our online learners.
Speaker Change: Take a holistic approach in terms of the revenue growth because I think our core capability is to seize the market trend and tailor made a call on you.
Speaker Change: Interest and current content and easier to add content to our online learners.
especially for the math public learners to make them enjoy. Enjoyable in our learning process.
Speaker Change: Specially for the mass public learners to make them enjoy enjoyable our AR in the learning process.
So in the latest quarter, our... Because the second is that our strategy is always to diversify our cost offerings.
In the latest quarter hour because the second is that our strategy is always to diversify our course offerings and in terms of the new new contents and nutrients and also considering the natural result, the alloy.
in terms of the new contents and new trends, and also considering the net results, the ROI, the net, the bottom line performance in terms of the sizable ice cube of the courtes. Last piece
Speaker Change: The bottom line performance in terms of the sizable ice SKU of the Cortez.
Speaker Change: So.
So the third one is that in the list is quarter, I think, for example, our other interests.
Speaker Change: So are the survivors that are in the latest quarter I think for example, our other interests are basically causes grow significantly the meat.
based courses growth significantly. The meter of the second of courses comes to the senior and middle-aged people's interest learning. The length of the key courses.
Speaker Change: Either of the start kind of course this comes to the senior and middle aged AR People's interests learning. The the one of the key of course is is the for example, the short video production.
is the, for example, the short video production.
We started that kind of course, under Jiang Jing brand since August 2021, from there to a very sizable amount in terms of the RAM menu for the list is quarter. That.
His such kind of course, Andrew John driven brands is August of 2021 from their ROE to a very sizable amount in terms of the revenue for the latest quarter.
proved that our strategy is cracked and also have the ability to see the market trend and also to tailor-made content
Speaker Change: <unk>.
The proof that our strategy is correct and also we have the ability to seize the market trend and also to tailor made content to cater to the customers' demand.
to cater to the customers' demand.
And to also to mention that, we started the
Speaker Change: Our and to also to mention that we started the repeat purchase under the Sausalito production costs. So.
repeat filters under theerto production coils.
So the repeat purchase rate is also growing very, very good. So this is my answer to the first question. I think because our new platform such as Chancho could be for the senior people's learning just launched during last year This platform the SKU the content on this platform are still under a very high growth trajectory
Speaker Change: The repeat purchase rate is also growing very very good. So this is my answer to the first question I think because our.
Speaker Change: Our new platform, such as change or could you even for the senior people learning just launched a June last year.
Speaker Change: This platform the ice cube of the content on this platform.
And they're a very high growth trajectory.
So for your second question, in terms of the acquisition of Calis adeqition, that is our new initiative in terms of the overseas market, we have a top-tier prudent approach as always to our expansion into overseas market.
Speaker Change: So for your second question in terms of the acquisition of Calix adaptation that is our new initiative in terms of the overseas market.
Speaker Change: The top tier of prudent approach.
As always to our expansion into overseas markets.
Our current priority is to consolidate and strengthen our operations at the existing scale. We only to expand after we prove this overseas business model is good, both in terms of the revenue growth and the bottom line. For Caddys education, our primary focus is on successful operations within its local marketing Hong Kong.
Speaker Change: Our current priority is to consolidate and strengthen our operations after the existing scale, we only to expand after the Peru. These overseas visits model is it's good.
Speaker Change: Both in terms of the revenue growth and the bottom line.
Speaker Change: For Calix allocation, our primary focus at all its successful operations with zinc is local marketing in Hong Kong.
Currently our strategy is to build a strong foundation and give a full understanding of the local markets dynamics before we consider scaling up.
Speaker Change: Currently our strategy is to build a strong foundation and.
Speaker Change: A full understanding of the local market dynamics before we consider scaling up.
Our home business currently operates on a smaller scale. Our intention is to prove the effective needs of our business operations on this smaller scale before considering further expansion beyond China.
Speaker Change: Our Hong Kong business currently operates on a smaller scale our intention is to prove the effectiveness of our business operations are these smaller scale before considering further expansion beyond China.
This careful step-by-step approach is designed to later ground work for strategic and sustainable international expansion. That will help to drive our long-term growth and also result a healthy bottom line for our whole group, the platform. That's my answer. Thank you. Thank you very much.
This careful step by step approach, it's declined to lay the groundwork for strategy and sustainable International expansion, that's where you have to drive our long term growth and also the result, a healthy bottom line for our whole group the platform that is my answer.
Speaker Change: Thank you.
Speaker Change: Thank you very much for the answers I appreciate it.
Speaker Change: Okay.
Thank you.
Speaker Change: The next question.
Come from Howard Halter with The Glitch Brothers. Please go ahead.
Speaker Change: Comes from Howard Halpern with <unk>.
Speaker Change: Got it.
Speaker Change: Go ahead.
Thank you, and great, great starts of the new year. A lot of the questions have been asked and answered, but in terms of operating expense trends, what are you seeing in terms of being able to?
Speaker Change: Thank you and a great great start for the new year.
Speaker Change: A lot of the questions have been asked and answered but in terms of.
Speaker Change: Our operating expense trends, what are you seeing in terms of being able to.
continue to streamline operations and what are the factors that will go into being able to streamline operations as time goes on.
You know continue to streamline operations and what are the factors that will go into being able to streamline operations as time goes on.
Okay, thank you. Yeah, I, another question? Or only this one?
Okay. Thank you.
Speaker Change: Yeah.
Speaker Change: But in other countries.
Speaker Change: Only this month.
Only that question that question Okay. Thank you.
Okay, thank you. So in terms of the operating expenses and the business flow, because we started from our launch of the business in July 2019, we adopted an online approach, and we highly believe that the technology will change the efficiency.
Speaker Change: In terms of the operating expenses the out of the business flow.
Speaker Change: Because we are starting from our launch of the business June July 2019, we adopted a online approach and be highly believed that the technology have you changed the efficiency. So currently we are the largest online without learning platform in China and also.
So currently we are the largest online adult learning platform in China. And also we had achieved a sizable amount in terms of the revenue.
Speaker Change: Oh, we had achieved a <unk>.
Speaker Change: <unk> amounts in terms of that revenue.
that caused the operating expenses as a percentage of total revenues are declining as we realize greater economies of scale. This efficiency improvement is a result of our ongoing efforts to enhance operational processes and leverage technology.
Speaker Change: That caused the operating expenses as a percentage of total revenues are declining as we realize greater economies of scale.
Speaker Change: This efficiency improvement is a result of our on going efforts to enhance operational processes and leverage technology.
For instance, our use of AI powered tools has played a significant role in streamlining.
Speaker Change: For instance, our use of AI powered cruise has played a significant show in streamlining.
in streamlining our business operation and also
Speaker Change: Uh huh.
Speaker Change: In streamlining our business.
Speaker Change: Operation and also.
Speaker Change: Reducing costs, we have applied Oh, yeah on other online technology truthful quality inspection.
Reducing costs. We have applied AI and other online technology to for quality inspection purposes and as just mentioned and also when they communicating With our learners we use a lot of data driven and AI driven technologies to smooth
Speaker Change: Infection purposes.
Speaker Change: Uh huh.
Speaker Change: As Matt mentioned and also when they are communicating.
Speaker Change: With our learners, we use a lot of data driven on.
Speaker Change: Drilling technologies are to smooth the.
the whole process of learning cycle with and learning interactive with our users. And we also use AI to analyze user profiles, which has improved our marketing efficiency. So in each step of our business operation, we always try to use the technological tools to streamline the process and also to
The whole process of the learning cycle and learning into action with our users and we also we use AI to analyze user profiles, which has improved our marketing efficiency.
Speaker Change: Fee, so each step of our business operation we.
Speaker Change: Always try to use the technology called tooth to streamline the process and also to.
make it more efficient. We remain committed to a strategy of continuous operational and technological improvement. This will ensure sustained efficiency gains and also our overall financial health so that you can see our results. The all of the expenses as percentage of the total revenue ratio is declining so that making our bottom line healthy. comprise already.
Speaker Change: Make it more efficient.
Speaker Change: <unk> committed to a strategy of continuous operational on a technology called improvement this way is sure.
Speaker Change: <unk> efficiency gains and also our overall financial house. So that you can see our results. The all of the expenses as percentage of the total revenue ratio is declining.
Speaker Change: Zach and making our bottom line housing.
Speaker Change: Okay, Thanks, and keep up the great work guys.
Yeah, thank you very much.
Speaker Change: Yeah. Thank you very much.
As there are no further questions, I'd like to hand the conference back over to management for closing remarks.
Speaker Change: As there are no further questions I'd like to hand, the conference back over to management for closing.
Mike.
Thank you again for joining our call today. If you have any further questions, please feel free to contact us or submit a request through our I.R. website. We look forward to speaking with everyone in our next call. Have a good day. Thank you, everyone. Thank you.
Speaker Change: Thank you again for joining our call today, if you have any further questions. Please feel free to contact us.
Speaker Change: Throughout all of our website, we look forward to speaking with everyone. In our next call have a good day.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: The conference has now concluded.
Thank you for attending today's presentation. You may now disconnect.
Speaker Change: For attending today's presentation.
Now disconnect.
[music].