Q4 2023 HUYA Inc Earnings Call
Unknown Executive: materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Please also know that HUYA's earnings press release and this conference call include discussions of unaudited gap financial information as well as unaudited non-gap financial measures. HUYA's press release contains a reconciliation of the unaudited non-gap measures to the unaudited most directly comparable gap measures. With that, I am pleased to turn the call over to our Acting Co-CEO and ASVP, Mr. Huang. Please go ahead.
Express a day.
The information regarding this and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U S Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements except.
As required under applicable law.
Please also note that we have earnings press release and this conference call include discussions of our audited GAAP financial information as well as an audited non-GAAP financial measures <unk> press release contains a reconciliation of the audited non-GAAP measures to the art.
It is most directly comparable GAAP measures.
With that I am pleased to turn the call over to our acting Cosi O N SVP Mr. Wang. Please go ahead.
Junhong Huang: Hello, everyone. Thank you for joining us for our ending conference. Today, I'd like to share an overview of our recent performance and business development and technology offerings and management initiatives, as well as our corporate social responsibility efforts. 2023 marked a year of transformation for HUYA. We launched a strategic plan to transition our commercialization focus toward game-related services and expand our presence in the game industry. I'm pleased to report that we have made great strides in this area, while also strengthening our core capabilities to maintain our leadership and competitiveness in the game live streaming industry. Against the backdrop of the challenging market and industry environment and this proactive business adjustment, we experienced revenue decline this year.
Hello, everyone. Thank you for joining our unencumbered.
Today I'd like to share an overview of our recent performance.
Development and technology offerings, and oversea overseas initiatives as well as our corporate social responsibility efforts.
Turning to industry March marked a year of transition formation for who we are we launched our strategic plan, which as Susan our commercialization focused too.
Award game related services.
And we spend our presence in the game industry.
I am pleased to report that we have made great strides in this area, while also strengthening our core capabilities to maintain our leadership and competitive.
In the game live streaming industry.
Against a backdrop of <unk>.
<unk> macro and industry environment, and this proactive business adjustment.
Experienced revenue decline this year, however, with a chip.
Junhong Huang: However, we achieved a turnaround on the margin side, posting a non-gap net income of RMB 119 million for the full year, as we continue to optimize cost and improve operational efficiency. We also kept our user community engaged through our extensive content and service offerings, with HUYA Live's average mobile MAUS coding study year-over-year at 84.1 million for the full year 2023. Next, a brief update on our strategic transformation. Our main goal for 2023 was to build the business infrastructure required to support our new game-related service and to establish cooperation with related game studios. We have largely completed this work, including upgrading the game center module, developing and integrating the in-game item mode function, and optimizing account binding with related games.
Now on the margin side, posting a non-GAAP net income of RMB $119 million for the full year as we continue to optimize cost and improve operational efficiency.
We also kept our user community engaged through our exclusive content and service offerings.
<unk> realized average mobile.
Holding steady year over year at $84 1 million for full year 2023.
Next a brief update on our strategic transformation. Our main goal for 2023 was to build the business and for US the infrastructure required to support our new game related services and to establish corporation, which related game studios.
Lastly, complete kit work, including upgrading the game centre module developing and integrating the in game item more function and optimizing our carload abiding was related games.
Junhong Huang: We have also begun cooperating with various major game titles to provide distribution and promotion services, as well as in-game virtual item sale services, on our platform. Although revenues from game-related services were modest in 2023 as we were in the preparatory phase, we saw encouraging signs of growth in the fourth quarter and expect that trend to strengthen in 2024. We are confident that the game-related service will continue to scale as we add newly launched and existing titles and ramp up participation from our broadcasters. Revenues from our advertising and other segments increased 41% quarter-over-quarter and 29% year-over-year in the fourth quarter, primarily driven by game-related service contributions.
We have also begun cooperating with various major game titles to provide distribution and promotion services as well as in game virtual items sale serviced on our platform.
Although revenues from game related service was modest in 'twenty to industry as we were.
Preparatory phase, we saw encouraging signs of growth in the fourth quarter and expect that trend to strengthen in 2024.
We compete in that game related services will continue to scale as we add newly launched you defend existing titles and ramp up of published participation from our broadcasters.
Revenues from our advertising and other segment increased 41% quarter over quarter, and 29% year over year in the fourth quarter, primarily driven by game related service contribution.
Junhong Huang: Our recent efforts in the promotion and distribution of an early-awaited new game, Dreamstar, clearly demonstrate our game-related service capabilities, as well as this business's vast potential. We conducted a comprehensive promotional campaign loaded with innovative features, resulting in industry-leading levels in terms of promotional performance and the number of reservations and downloads through our channel during the game's launch period. Specifically, we invited popular broadcasters on our platform to stream their game play and rewarded live stream viewers with visual GYMSTAR gift packs through our unique interactive gift drop feature. We also created a GYMSTAR pre-order and download area in our game center and provided broadcasters with commission-generating reservation links to place on their channels, incentivizing their participation while boosting user pre-orders. Meanwhile, users who downloaded the game through our platform received inclusive in-game props and other gifts provided by both GYMSTAR and HUYA.
Our recent effort in the promotion and distribution of an early awaited new game, Jim Stark clearly demonstrate our game related service capabilities as well as less business vast potential.
We conducted comprehensive promotional campaign loaded with innovative feature resulting in industry, leading levels in terms of promotion or performance.
And the number of reservations and downloads so our channel during the game's launch period.
Specifically, we invited popular broadcasters on our platform to stream their gameplay and rewarded livestream viewers with visual gemstar gift packs through our unique interactive gift drop feature we also created a gym start preorder and <unk>.
Area in our gift center and provided broadcasters with commission generating reservation links to appraise on their channels is advising their participation while posting user preorders. Meanwhile, users who downloaded games through our platform Lucy.
Exclusive in game pop and other gifts provided by both <unk> and full year.
Junhong Huang: In addition, we held cross-platform entertainment competitions, incentivized the creation of gameplay delivery videos, and organized activities for broadcasters to design inclusive game maps, all of which effectively expanded this new game's reach on our platform. As a live streaming platform primarily serving the game vertical, HUYA provides a more professional, more feature-rich game streaming experience than non-dedicated platforms. We are committed to further differentiating our super real game live streaming platform and continue to drive progress through tech innovation. For instance, we are currently leveraging deep game data and our proprietary large language model, chaining on data from our platform's streaming content, and 270 million bullet chats to enhance the traditional live streaming viewing mode with real-time analysis and interaction based on game content and events.
In addition, we held cross platform entertainment competition incentivize the creation of gameplay deliver eight videos and organized activities for broadcasters to design, a cruise ship Max all of which effectively expand at least new games reach on our platform.
As a live streaming platform, primarily serving the game vertical will provide a more professional more feature rich game, assuming experienced than non dedicated platforms.
We are committed to further differentiating our <unk> game live streaming platform and continue to drive progress through Tech innovation.
For instance, we currently leveraging <unk> data and our proprietary large language model Chen on data from our platform streaming content.
$270 million bullet chest to enhance the traditional life jumping billing mode with real time analysis and interaction based on game content and events.
Junhong Huang: This immersive upgrade makes game live streaming content more professional and entertaining, boosting engagement across the board. For example, in our content, the current owner of King live streams, our AI tech can help streamers dynamically generate customized commentary based on real-time information, such as game battle status and weapon used. In addition, viewers can use our AI intelligent editing function to instantly capture and replay broadcasters' best moves.
This immersive upgrade makes game live streaming content.
More professional entertaining.
Boosting engagement across the board for example in our content current honour of Kings large gyms, our AI Tech can help streamer genomic Cody generate customized commentary based on real time information such as game barrels data and web and used in Edison viewers.
Then use our AI intelligence editing function to instantly capture and replay below cost us past the moves.
Junhong Huang: Increasing User Stance of Participation. Turning now to our overseas expansion, we view our overseas initiatives as strategically important, providing revenue diversification while supporting our overall growth as we capitalize on opportunities arising from the overseas activities of Chinese game companies. In December 2023, we acquired a 100% equity interest in a global mobile application service provider. In line with our strategic transformation, this acquisition is intended to enhance our game promotion and distribution capabilities in international markets. It will also create synergies with our overseas game live streaming platform, NEMO TV, empowering better utilization of localized results and improving efficiency. Lastly, as a part of our corporate social responsibility efforts, we continue to expand our portfolio of content with positive social impact through our live streaming plus model, connecting online interactions and offline activities. In 2023, more than 4,600 broadcasters contributed a total of over 50,000 streaming hours of positive social impact content to our platform, covering areas such as cybersecurity, education, minor protection, and rural revitalization to complement our game and entertainment programming. We leverage our innovative technology and brand awareness to increase this content's influence, enhancing our platform's healthy atmosphere.
Engraving user stance of participation.
Turning now to our overseas expansion, we view our overseas initiatives as strategically important providing revenue diversification, while supporting our overall growth as we capitalized on opportunities arising from the overseas activities of Chinese.
Game companies.
In December 2023, we acquired 100% equity interest in a global mobile application service provider in line with our strategic transformation. This acquisition is intended to enhance our game promotion and distribution capabilities in international.
It will also create synergies with our overseas game live streaming platforms Nemo TB empower in better utilization of localized results and improving efficiency.
Lastly, as a part of our corporate social responsibility effort, we continue to expand our portfolio of content with positive social impact through our live streaming plus model connecting online into excellent and offline activities.
In 'twenty to industry more than 4600 broadcasters contributed a total of over 50 salary streaming hours of positive social impact content to our platform covering areas such as cyber security education minor protection and rural revised visualization.
<unk>, our game and entertainment programming.
We leverage our innovative technology and brand awareness to.
Chris this content influenced enhancing our platforms healthy at most of the year.
Junhong Huang: Going forward, HUYA will remain committed to upholding its corporate social responsibility and contributing to the healthy development of the live streaming industry. Looking ahead to 2024, we face a rapidly changing market. Market conditions that present both challenges and opportunities.
Going forward, we will remain committed to.
Upholding its corporate social responsibility and contributing to the healthy development of the live streaming industry.
Looking ahead to 2024, we faced a rapidly changing market.
Condition Gen market conditions and that present, both challenges and opportunities. We will continue to solidify our core lab's, Jim being business and actively promote the development of game related services to expand our business and revenue streams.
Ashley Xin Wu: We will continue to solidify our core live streaming business and actively promote the development of game-related services to expand our business and revenue streams. As we steadily implement our strategic transformation plan, we remain confident in our future business prospects. With that, I will now turn the call over to our Acting Co-CEO and VP of Finance, Ashley Wu, to share more details on our results. Ashley, please go ahead.
As we steadily implement our strategic transformation plan, we remain confident in our future business prospects.
With that I will now turn the call over to our <unk> co CEO and VP of finance actually to share more details on our results as <unk>. Please go ahead.
Ashley Xin Wu: Hello everyone, I'll provide some updates on our operating matches and finances. Overall, we maintained a stable user base in the fourth quarter. We continued to engage users in rich game and esports content during the period, particularly some major esports tournaments. While upgrading interactive features to enhance the viewing experience, HUYA Life Mobile MAU for the fourth quarter of 2023 was $85.5 million, compared with the same period last year and slightly lower compared with the summer season's higher base.
Thank you Lisa.
And Hello, everyone.
Why some update on our operating metrics and financials.
Overall, we maintained a stable <unk>.
Late in the fourth quarter.
We continue to.
Engage here says in reachable on esports content, yielding appealing.
Particularly the major esports tournaments.
Wow upgrading interactive features to enhance their experience.
<unk> mobile.
For the fourth quarter of 2023.
80 5151.
Compared with the same period last year.
Slightly lower.
<unk> with the summer season higher base.
Ashley Xin Wu: On the other hand, as we develop more innovative game-related services, more users started to pay for these new services in the fourth quarter, driving a slight sequential increase in HUYA Live's paying users for the fourth quarter to 4.3 million, despite a decrease in live streaming products and services paying users. Turning to our Professional Content Enrichment, on the Licensed Content Front, we broadcast over 70 third-party professional esports tournaments in the fourth quarter of 2023, with a total viewership of over 360 million. SB has become more selective in licensing tournaments. We will continue to improve the ROI and quantum utilization efficiency of these events by enhancing the event experience and related operational activities, as well as the variety of year-end events, including the LOL World, the Honor of Kings International Championship, and Chinatown Cup, the Crossfire CFS Grand Finals, and the PUBG Mobile Global Championship. Accepted for user attention.
On the other hand.
As we develop more in our latest game related services.
Our users to.
To pay for these new services in the fourth quarter.
So I think a slight sequential increase.
Paying leases.
Fourth quarter to $4 3 million.
A decrease in streaming content and services paying users.
Turning to our professional content enrichment.
And the license content front.
We forecasted over 73rd party professional esports tournament in the fourth quarter of 2023.
With a total <unk>.
Of over $360 million.
As we have become more selective in licensing tournament.
We will continue to improve.
On content utilization efficiency.
This event.
By enhancing event.
Again Andy.
Operational activities.
Alrighty.
Ben.
Including the <unk>.
Honor of Kings International Championship.
<unk> net income.
The qualifier CFS sign.
Finally, and pop T Mobile Global Championship.
Kathy.
Attention.
Ashley Xin Wu: The Waterfront China Evolutionary Series also gained traction on our platform as Waterfront eSports events continue to develop. Notably, our coverage of this year's LOL World 2023, one of the most influential esports events in the world. Demonstrated our vast content enhancement capability. We once again maintained our leading market share of this event's viewership, with several of its key viewing metrics on our platform improving compared to the previous edition. HUYA has broadcasted this event for six consecutive years, gradually increasing our users' awareness of the brand and cultivating a strong habit of watching it on HUYA's platform. Among the professional esports audience, to provide best-in-class broadcast quality.
So one of them to China evolutionary theory.
13 question on our platform.
Florida event equal events continue to develop.
Okay great.
Our courage of 58.
<unk> 2021.
One of the most influential esports events in the world.
Our one content enhancement capability.
We once again maintained our leading market share of 50 events relation with.
With several of his key ruling metric on our platform improving compared to the Peerless acquisition.
<unk> has forecasted if event for fifth consecutive year gradually increasing our user awareness of the brand.
In calculating our strong happy Unfortunately Oems platform.
The professional esports audience.
To provide best in class broadcast quality.
Ashley Xin Wu: This year, we continue to focus on upgrading users' viewing and interactive experiences, introducing Enhanced Features such as 120 FPS High Frame Rate Video Quality, AI camera for taking live scene photos, and our game watching assistant. In addition, we boosted user attention and engagement through a combination of online and offline operational activities and our self-produced commentary programs such as Husha S13. In terms of self-produced content, we broadcasted nearly 30 self-organized esports tournaments and entertainment QGC shows in the fourth quarter, with a total viewership of approximately 120 million. Among these events, League of Legends HUYA Platform Qualifier for Demacia Cup and Peacekeeper Elite MNC Challenge Match were quite popular for our in-house developed IP. We will focus on producing their feature content and expanding its reach through cross-platform and cross-category collaborations. In December, we hosted the first event in our Village Game Series, the Lianghe Village Game for Honor of Kings in Lianghe County, Yunnan Province. The Village Game Series represents our first foray into building a rural esports tournament brand. With county government support, this event attracted massive attention among local communities.
We continue to focus on upgrading users willing and interactive experiences.
Introducing enhance features such as 100 and 20-F.
Yes.
Pricing rate video quality.
And AI camera for peg.
And I think <unk> and <unk>.
Our team watching our system.
In addition, we posted user protection.
And engagement through a combination of online and offline operational activity.
Our sales for Q.
Commentary programs.
Yes.
Sure.
13.
In terms of self produced content.
The forecasted any zackie self organized esports tournament.
Entertainment PGE shelf in the fourth quarter.
With the total leadership.
Approximately $120 million.
Among based event.
Think of Latches OEM platform quantifier for Derma stack up.
Peacekeeper elite and a challenge match, we are quite popular.
Well our in house developed IP.
We will focus on producing gas Asia content and expanding its reach through cross platform and cross category collaboration.
In December we hosted the first event in our village in theory.
<unk> village game honour.
In <unk> County.
NAND smelting.
So Linda <unk> represent our first foray into building a ludo esports tournament brand.
Wisconsin government support.
The event attracted massive attention among local community.
Ashley Xin Wu: Together, people of all ages and more than 300 teams will compete. Our event-integrated esports with traditional cultural activities successfully expanded the influence of esports content among local audiences, while also promoting the local culture. Honor of Kings, named this Lianghe Village game, is the best authorized esports tournament in 2023. A powerful testament to our tournament and brand building capability. Let's move on to our Q4 financial details. First, I would like to point out that, because our December acquisition of the mobile application service provider is a business combination under common control, we have consolidated the financials of the acquired business on a retrospective basis, from the first quarter of 2022. Therefore, on this call and in the earnings release, we have included its results in our fourth quarter and full year 2023 figures and retrospectively adjusted the financials from the comparable period of 2022 to reflect the changes. Our total net revenues were RMB 1.53 billion for Q4. Compared with IMB $2.12 billion for the same period last year.
Bringing together.
People of all age.
And more than 300 tools to compete.
Our event integrated esports.
With traditional culture activity.
This is fully extending the interests of esports content among local audience.
While also promoting the local culture.
On the AV team linkage.
<unk> is that authorized esports tournament in 2023.
Powerful testament to our tournaments and brand using capability.
Let's move onto our Q4 financial details.
First I would like to point out that.
Because our December acquisition of their mobile application service provider is a business combination under common control.
We have consolidated the financials of the acquired business.
Richard that test basis.
The first quarter of 2022.
Therefore on this call and in the earnings release.
We have included is leased out in our fourth quarter and full year 2020 fleet vehicles.
And Richard respectively adjusted.
Financially from the comparable period.
Of 2022 to reflect the changes.
Our total net revenues were RMB 153 billion for Q4.
Compared with RMB, two <unk> for that.
Thanks Perry.
Yeah.
Ashley Xin Wu: Live streaming revenues were RMB1.34 billion for Q4, compared with RMB 1.98 billion for the same period last year, primarily due to the soft macro and industry environment and our proactive business adjustments to support our strategic transformation and prudent operations. Advertising and other revenues were RMB 186 million for Q4, compared with RMB $144 million for the same period last year. Primary due to increased revenues from Game Advertising and Distribution Services. However, cost of revenues decreased by 37% year-over-year to RMB1.51 billion for Q4.
Nice streaming revenues.
134 billion for Q4.
Compared with RMB $198 million for the same period last year.
Primarily due to the self micro and industry environment.
Our proactive business adjustments to <unk>.
Our strategic transformation and prudent operation.
Advertising and other revenues.
186 million for Q4.
Compared with RMB $144 million for the same period last year.
Primarily due to increased revenues.
From King advertising and distribution services.
Cost of revenues.
<unk> by 37% year over year to $1 51 billion for Q4.
Ashley Xin Wu: Primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs. Revenue sharing fees and content costs decreased by 39% year-over-year to RMB 1.32 billion for Q4. Primary due to the decrease in revenue-sharing fees associated with the decline in live-streaming revenue, as well as lower costs related to eSports content and content creators. However, I'd also like to point out that our content spending for Q4, while meaningfully lower year-over-year as a result of our cost optimization efforts, was still higher than in Q3. This was primarily due to the cost related to some large events, particularly the content cost before LOL was 2023. However, benefits costs decreased by 19% year-over-year to RMB82 million for Q4.
Primarily due to decreased revenue sharing fee on content cost as well as bandwidth costs.
Revenue sharing fees and content costs.
Please by 39% year over year to <unk>.
132 billion for Q4.
Primarily due to the decrease in revenue sharing fee as sales.
With the decline in live streaming revenues.
As well as lower cost related to esports content and content creators.
I'd also like to point out that.
Our content spending for Q4.
Meaningfully lower year over year.
<unk> of our cost optimization efforts.
We're still higher than in Q3.
Ashley Xin Wu: This was primarily due to improved bandwidth cost management, favorable pricing terms, and continued technology enhancement efforts. Gross Profit was RMB$15 million, and Gross Margin was 1% for Q4, excluding share-based compensation expenses. Non-Gap Gross Profit was RMB $15 million, and the non-GAP growth margin was 1% for Q4. Research and development expenses decreased by 6% year-over-year to RMB $137 million for Q4, primary due to decreased share base compensation expenses. Sales and marketing expenses decreased by 11% year-over-year to RMB113 million in Q4.
This was primarily due to the cost related to some large events, particularly the content cost both for <unk> 2023.
And this cost decreased by 19% year over year to RMB 82 million for Q4.
This was primarily due to improved bandwidth cost management.
Favorable pricing terms and continued technology enhancement efforts.
Gross profit was RMB $15 million and gross margin was 1% for Q4.
Excluding share based compensation expenses.
non-GAAP gross profit was RMB 15 million.
And non-GAAP.
Gross margin was 1% for Q4.
Ashley Xin Wu: Due to decreased personnel-related expenses. General and administrative expenses increased by 18% year-over-year to RMB100 million for Q4, primarily due to prohibitions and increased professional service fees. Partially offset by decreased share-based compensation expenses. Other income was RMB$13 million for Q4, compared with RMB$44 million for the same period last year, mainly due to lower indirect test response and government subsidies. As a result, operating loss was RMB322 million for Q4, compared with RMB 581 million for the same period last year. Interest and Short-Term Investment Income was RMB129 million for Q4, compared with RMB $102 million for the same period last year, primarily due to increased interest rates and improved management of deposit products. Net loss attributable to HUYA, Inc. with IMB $275 million for Q4. This compares with RMB $563 million for the same period last year. Excluding share-based compensation expenses.
Research and development expenses decreased by 6% year over year to RMB 137 million for Q4.
Primarily due to decreased share based compensation expenses.
Sales and marketing expenses.
<unk> by 11% year over year to RMB 113 million.
For Q4.
Primarily due to decreased personnel related expenses.
General and administrative expenses increased by 18% year over year to RMB $100 million for careful.
Primarily due to provisions and increased professional service fee.
Partially offset by decreased share based compensation expenses.
Other income was <unk> 2 million for Q4.
Panel with RMB $44 million for the same period last year.
Due to lower indirect tax refunds and government subsidies.
<unk> operating loss was RMB 322 million for Q4.
Compared with RMB $581 million.
<unk> last year.
Interest and short term investments income was RMB 129 million for Q4.
Ashley Xin Wu: Impairment Laws of Goodwill and Enrichment, and Amortization of Intangible Assets from Business Acquisition. Map of Income Taxes, Long gap net loss attributable to HUYA, Inc. was RMB 190 million for Q4, compared with IMB $439 million for the same period last year. Non-Gap Lead Loss Margin was 12.4% for Q4. Dynamic Net Loss per ADS with IMB 1.14 for Q4, and the Longest Denoted Neck Loss per ADS was RMB 0.79424.
Compared with RMB $102 million.
Thank you late last year.
Primarily due to increased interest rates and improved management of deposit products.
Net loss attributable to <unk>, Inc.
With <unk>.
$275 million for Q4.
Compared with RMB $563 million for the same period last year.
Ashley Xin Wu: As of December 31st, 2023, the company had cash and cash equivalents, short-term Deposits and long-term Deposits of RMB 9.9 billion, compared with RMB 10.7 billion as of September 30, 2023. Moving on to our full year 2023 results, total net revenues were approximately RMB7 billion for 2023, compared with RMB9.26 billion for the prior period.
Excluding the share based compensation expenses.
Pamela loss of goodwill and investments.
Amortization of intangible assets from business combination acquisitions.
Of income taxes.
non-GAAP net loss attributable to <unk>, Inc.
Was <unk>.
$119 million for careful.
Compared with RMB $439 million for the same period last year.
non-GAAP net loss margin was 12, 4% for Q4.
Diluted net loss per ads was RMB.
Ashley Xin Wu: Live streaming revenues were RMB $6.45 billion for 2023 compared with RMB $8.2 billion for the prior period. Advertising and other revenues were RMB 544 million for 2023. Compared with R&D 1.07 billion for the prior year.
114 for Q4.
non-GAAP diluted net loss per ads was RMB <unk> <unk>.
79 for Q4.
As of December 31, 2023.
The company had cash and cash equivalents.
Short term deposits and long term deposits.
Ashley Xin Wu: [inaudible] We achieved a meaningful year-over-year profitability improvement across the board. Long gap gross profit was RMB831 million, and non-GAP gross margin was 11.9% in 2023. Non-Gap Net Income, attributable to HUYA, Inc., with RMB119 million, and Non-Gap Net Margin was 1.7% for 2023. Longest Diluted Net Income per ADS was RMB 0.48 for 2023. For additional details on our full year 2023 financial results, see our 2023 full year financial results.
<unk> nine 9 billion.
<unk>.
Compared with RMB 10 7 billion.
Our September 32023.
Moving onto our full year 2023 resales.
Total net revenues were approximately RMB 7 billion for 2020 fee.
<unk> with <unk>.
9006 <unk> million for the prior period.
That's streaming revenues were RMB 645 billion for 2020 feet.
<unk> was RMB eight 2 billion for the pipe PLE.
Ashley Xin Wu: I encourage listeners to refer to our earnings press release issued earlier today. Finally, let me provide an update on our capital allocation. Under our Up to U.S. Dollar 100 Million Shared Repurchase Program that began in August 2023, we have repurchased $9.2 million of ADF with a total aggregated consideration of U.S. dollars $28.8 million as of the end of 2023.
Advertising and other revenues.
<unk> $544 million for 2023.
<unk> with RMB, one 7 billion for the prior year.
Nevertheless.
We achieved a meaningful year over year profitability improvement across the board.
non-GAAP gross profit was RMB 831 year end.
Unknown Executive: In addition, I'm pleased to announce the declaration of a special cash dividend totaling approximately U.S. $113 million for our shareholders. We will remain committed to enhancing shareholder returns and creating long-term shareholder value. With that, I would now like to open the call to your questions. Thanks, Ashley, and hello, everyone. If you are dialing in by phone, please press 5 to ask a question, then press 6 to unmute yourself.
non-GAAP gross margin was 11, 9% for 2023.
non-GAAP net income attributable to <unk>, Inc was RMB $119 million.
non-GAAP net margin was one 7% for 2023.
non-GAAP diluted net income per ads was RMB <unk>.
<unk> 48 for 2023.
Lei Zhang: If you're accessing the call from Tencent meeting or both meeting applications, please click the raise hand button at the bottom left. For the benefit of all participants on today's call, if you wish to ask your questions to management in Chinese, please immediately repeat your question in English. Today's first question comes from Lei Zhang from Bank of America Securities. Lei, your line is open. Please go ahead.
For additional details on our full year 2020 financial results.
Encourage listeners to refer to our earnings press release issued earlier today.
Finally, let me provide an update on our capital allocation.
Under our up to U S. Dollar 100 million share purchase program that began in August 2023.
Junhong Huang: My question is mainly about the outlook for 2024. Can you please share with us how you see the trend of users and income in 2024 and the overall image of the new business in 2024? Oh, thank you.
We have repurchased $9 2 million ads with a total equity.
Iteration of U S dollar $28 8 million.
As of the end of 2023.
Junhong Huang: Okay, let me answer Lei Zhang's question first. Let me start with the user side. In the fourth quarter of 2023 and the end of the whole year of HUYA's live streaming, MAU, we all maintained the same level as in the early stage. On the one hand, we reduced the spending on marketing and channel promotion and selected the content of the e-sports event in more detail. In the first half of 2023, we also suffered some adverse effects from the increased offline activity of users.
In addition.
I'm pleased to announce the declaration of a special cash dividend totaling approximately USD $115 million.
For our shareholders.
We will remain committed to enhancing shareholder returns and creating long term shareholder value.
With them.
I'd now like to open the call to your questions.
Thanks, Ashley and Hello, everyone. You are dialing in by phone. Please press <unk> to ask a question then perhaps six to mute yourself, if youre accessing the car from Tencent meeting, although meeting applications. Please click the rich Barton as a bottom.
Junhong Huang: On the other hand, we also continued to improve the ability to operate e-sports events and the efficiency of using high-quality content. At the same time, we upgraded the interactive function to improve the overall experience of viewing and to improve the overall participation of users. Therefore, we maintained the overall stability of the user group, Vincent taking the question first.
For the benefit of all participants on today's call. If you wish to ask questions to management in Chinese. Please immediately repeat your question in English.
Today's first question comes from Lei Zhang from Bank of America Securities Your.
Your line is open. Please go ahead.
Junhong Huang: On the user front, HUYA live mobile MAUs in Q4 and for the full year 2023 were generally flat compared to prior periods. On the one hand, we lowered our marketing and channel promotion spending and were more selective with our esports content offering. The first half of 2023 was also negatively impacted to some extent by the increase in, On the other hand, we continue to enhance our operational capabilities around e-sports events and improve the efficiency of utilizing quality content, while also upgrading interactive features to improve the viewing experience and user engagement levels. As a result, we were able to maintain an overall stable user experience.
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Thanks management for taking my question and congrats on a long call special dividend and a my questions mainly about shantytown, therefore outlook in terms of user and the revenue and can you give us more color on the impact from your in your business.
Thank you.
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Junhong Huang: In 2024, we will continue to consolidate the entire core user group of HUYA to better serve the existing users and attract more high-quality game players. At the same time, we will also attract user payment through more rich game-related services, such as Q4 users driving the overall payment of game props, and the total number of users will increase by Q3. This shows that we are making progress in this area.
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Ashley Xin Wu: For 2024, we'll continue to solidify HUYA's core user base, better serve our existing users, and also reach more high-quality gamers. At the same time, we will aim to attract more paying users through enriched game-related services. For example, user payments for in-game virtual items in Q4 drove an increase in total paying users compared to Q3, indicating some initial success in this area. Okay, let me answer the question about income
The first half of 2023 was also negatively impacted.
Impacted to some extent by the increase in offline activities.
From our users on the other hand, we continue to enhance our operational capabilities around E sports events and improve the efficiency of utilizing quality content. While also upgrading interactive features to improve viewing experience and user engagement levels. As a result, we were able to maintain.
Ashley Xin Wu: In terms of live streaming income, in the fourth quarter, due to the strategic transformation, the change in internal resources, and the more careful operation of business adjustments, the impact of a complete quarter, and the continuous decline in the industry environment, live streaming income experienced a certain decline. In the first quarter of 2024, due to the impact of the traditional live streaming open season, live streaming revenue will experience some seasonal fluctuations. ,, Answer from Ashley.
And overall stable user base.
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Ashley Xin Wu: In terms of live streaming revenues, we saw a net decline in Q4 due to the four-quarter impact from business adjustment driven by Sponsored ADR Class A. For the year 2024, live streaming revenues will experience some seasonal fluctuations in Q1 due to the low traditional low season. Currently, we are seeing live streaming revenue trends starting to stabilize, and we hope that they can gradually recover to a steady state in the subsequent quarter. In terms of ads and other income, although the game-related service business is still in the early stages, ads and other income have also increased significantly in Q4, 41% year-on-year growth and 29% year-on-year growth. Sponsored ADR Class A. In 2024, as we provide more distribution, promotion, and product sales services for more games, and more platform broadcasters join, we are confident that advertising and other income can grow faster.
For in game virtual items in Q4 drove an increase in total paying users compared to Q3, indicating some initial success in this area.
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Terms of live streaming revenues, we saw a net decline in Q4 due to the full quarter impact from business adjustment driven by.
Ashley Xin Wu: On advertising and other revenues, despite the game-related services business still being at an early stage, we achieved significant growth of 41% quarter-over-quarter and 29% year-over-year in Q4, particularly driven by game advertising and distribution revenue. In the coming year, as we offer more distribution, promotion, and virtual item sales services to more GAMs, coupled with more broadcasters joining our platform, we're confident that advertising and other revenues can achieve faster growth. Thank you. And our next question comes from Yiwen Zhang from China Renaissance. Yiwen, please go ahead.
<unk> transition and shifts and internal resources allocation as well as from the continued weak industry environment for the year 2024 live streaming revenues will experience some seasonal fluctuations in Q2 Q1 due to the low traditional low season currently we.
We're seeing live streaming revenue trends starting to stabilize and we hope that they can gradually recover to a steady state in the subsequent quarters.
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Yiwen Zhang: Thank you for your question. My question is about our content strategy for 2020. Under the current market dynamics, how will the company plan to maintain a competitive edge? Okay, let me answer this question.
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Junhong Huang: At the moment, HUYA's overall content strategy is relatively stable. However, in the current fast-changing market environment and competitive pattern, we will continue to optimize our strategy and make dynamic adjustments. Streaming content is an important component of HUYA's platform content. We will continue to build an influential streaming ecosystem and improve the source and ability of streaming commercialization through cooperation with game manufacturers. We will also actively explore AIGC applications. The AI-based tools we provide to streamers can help reduce streamer opening barriers, and improve content production efficiency and quality.
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On the ever tightening in other revenues. Despite the gangway latest services business still being at an early stage, we are achieved significant growth of 41% quarter over quarter and 29% year over year in Q4.
Particularly driven by again advertising and distribution revenues and.
In the coming year, as we offer more distribution promotion and virtual items sell services to more games, coupled with more broadcast us joining our platform, we're confident that advertising and other revenues can achieve faster growth.
Junhong Huang: Our overall content strategy remains relatively stable. Currently, we will continue to optimize and dynamically adjust it given the rapidly changing market environment and competitive landscape. Broadcaster content is an important component to our offerings, and we will continue building an ecosystem of influential broadcasters, working with game publishers to enhance broadcasters' commercialization opportunities and capabilities, and strengthening our platform's appeal to broadcasters. At the same time, we are actively exploring the application of AIGC, and the AI-powered tools we provide can help lower the entry barriers for broadcasting while improving content production efficiency and quality. In terms of professional content, HUYA has a comprehensive board game system and a mature self-managed game system, which can bring users more high-quality e-sports content. Specifically, we pay more attention to the situation in the RY game system.
Thank you.
And our next question comes from <unk>, Zhang from China Renaissance.
Please go ahead.
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Sure. So thanks for taking my question, Chris regarding our content strategy in 2000 and today for sure.
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We plan to maintain competitive Patrick thank you.
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Junhong Huang: We will continue to cover mainstream e-sports in 2024, including LPL, KPL, PL, etc. At the same time, we will strengthen the professional operation ability of the game system and focus on the creation of extended content. The user experience in large-scale e-sports live broadcasts is critical.
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Our overall content strategy remains relatively stable currently.
We will continue to optimize and dynamically adjusted given the rapid changing market environment and competitive landscape broadcast content is an important component to our offerings and we will continue building an ecosystem of influential broadcasters working with game publishers, we enhanced broadcasters.
Junhong Huang: HUYA not only has the best audio and video technology in the industry but also continues to upgrade. For example, in Hero League S13, we have updated the live broadcast industry's 120fps high-resolution quality function. For professional content, HUYA has a comprehensive portfolio of licensed esports events and a mature system of self-produced tournaments, enabling us to bring more high-quality esports content to users. Especially with an increased focus on ROI for events in 2024, we'll continue to cover major mainstream esports tournaments, including LPL, KPL, PEL, and others. We will also strengthen our professional event operations capabilities while emphasizing the creation of derivative user experiences during large sports events broadcasts. User experience during large sports events broadcast is crucial, and not only does HUYA possess industry-leading audio-video technology, but we are also continuously iterating and upgrading them.
Commercialization opportunities and capabilities and strengthening our platforms appeal to the broadcasters at the same time, we are actively exploring the application of Aig's C and the AI powered tools, we provide can help lower the entry barriers for broadcasting while in.
Proving the content production efficiency and quality.
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Junhong Huang: For example, for the League of Legends S13 tournaments, we introduced an industry-leading 120 FPS high frame rate video quality feature for the live stream. HUYA is also an important component of professional content. We will continue to strengthen HUYA's free IP authentication, enhance the influence of self-managed events and activities, and create unique content. ,,, 12, [inaudible] This also confirms the high quality and professionalism of HUYA. HUYA's self-produced tournaments are also an important part of our professional content offering, and we'll continue solidifying our own IP metrics and enhancing the influence of our own tournaments and events to create distinctive preparation. It is worth mentioning that we combine esports with rural culture The Lianghe Village Game event held in December last year was the first stop of our Village Game series, garnering attention and enthusiastic participation from local residents.
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Especially with an increased focus on ROI for the events in 2024 will continue to cover our major midstream.
Sports tournaments, including LPL, APL, PEO and others.
We'll also strengthen all professional event operations capabilities, while emphasizing on the creation of derivative content user experience steering largest sports events forecast is crucial and not only does <unk> industry, leading audio video technologies.
We are also continuously and iterating and upgrading them for example for the league of Legends as 13 tournaments, we introduced an industry, leading 120 Fps high frame rate video quality feature for the live stream.
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Junhong Huang: This tournament was also awarded the title of Best Authorized Esports Tournament in 2023 by the game officially, attesting to the high quality and professionalism of HUYA's tournament. HUYA is a content-driven live-streaming platform with games as its core. For many years, it has cultivated the brand and awareness of games. The platform brings together high-quality game users to form a community of professional game content.
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Junhong Huang: Therefore, HUYA can also provide a richer gaming live-streaming experience than other non-gaming platforms, and we are also committed to bringing a more differentiated experience through technological product upgrades. For example, through the deep cooperation between HUYA and game manufacturers and the deep data of the game, and the HUYA language model based on a large amount of barrage data, we can upgrade the traditional live-streaming mode to a more immersive live-streaming mode based on game content and real-time commentary and interaction of events, making game live-streaming content more professional and interesting.
<unk> self produce tournaments are also an important part of our professional content offerings and we will continue solidifying our own IP matrix and enhancing the influence of our own tournaments and events to create a distinctive proprietary content.
It is worth mentioning that we combine esports with rural culture, and with government support promote esports for all through self produced rural esports events.
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Following attention NSA enthusiastic participation from local residents. This tournaments was also awarded the honor of Kings Best authorized esports tournament in 2023 by the gamma officially attesting to the high quality and professionalism of Helios tournaments.
Junhong Huang: As a live streaming platform primarily serving the gaming vertical, HUYA has gathered high-quality game users and cultivated a strong brand awareness through our community by providing a more professional, more feature-rich game stream. Sponsored by ADR Class A, we are committed to further differentiating our superior game live streaming platform and continue to drive progress through tech innovation. For instance, we are currently leveraging deep game data and our preparatory large language model, LLM, trending on data from our platform's streaming content and bullet chats to enhance the traditional live streaming viewing mode with real-time analysis and interaction based on game content events.
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Junhong Huang: These immersive upgrades make game streaming content more professional and more entertaining. In addition to the above-mentioned aspects, strengthening cooperation with major platforms and products will also be an important strategy for us in 2024. In an overall more open environment, these cooperations will bring more opportunities for development for HUYA and enhance competitiveness. This not only includes deep communication and linkage of products such as QQ browser and Tencent Video as well as the close cooperation with many businesses in the IEG sector but also cooperation with other live and video platforms in terms of content and operations. For example, in February this year, we held the Xinchun E-Sports All-Stars event and linked with three other major live platforms to get good feedback.
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Junhong Huang: From a long-term perspective, this will not only help our content reach a wider audience but also bring more content to the existing users, which will also help increase the scale and influence of the HUYA platform. In addition, strengthening collaborations with various platforms and products will be an important strategy for us in 2024. In an overall more open environment, these collaborations will bring more development opportunities and enhance HUYA's competitiveness. This includes not only deepening interconnectivity and cooperation with Tencent's PCG products, such as QQ and Tencent Video, as well as close collaborations with the IEG business units, but also content and operational partnerships with other live streaming and video platforms. For example, in February this year, we hosted a New Year Esports All-Star event that was co-streamed across three other major live streaming platforms with good reception.
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In addition to the above strengthening collaborations with various platforms and products is an important strategy for us in 2024, and then overall more open environment. These cooperate collaborations will bring more development opportunities and enhanced <unk>.
Ritchie Sun: In the long run, this will not only help our content reach a wider user base and bring more enriched offerings to existing users but will also contribute to enhancing HUYA's. Thank you. And our next question comes from Ritchie Sun from HSBC. Ritchie, please go ahead.
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This includes not only deepening interconnectivity and cooperations with Tencent PCT products, such as QQ and Tencent video as well as close collaborations with the IEEE business units, but also content and operational partnerships with <unk>.
Ritchie Sun: Thank you, Mr. Guan, for accepting my question. I would like to know about the company's plan for this year. What are your expectations for the cost of 2024 and the profit margin? Thank you.
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Ashley Xin Wu: Thank you, management, for taking my question. I would like to understand more about the cost control plan for this year. What's management's expectation of cost, operating expense, and margin this year? Thank you. Okay, thank you, Ritchie, for your question. Let me answer this question.
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And our next question comes from Richardson from HSBC Ritchie. Please go ahead.
Ashley Xin Wu: In 2023, we will continue to increase our accounts and strive to optimize costs and expenses to improve operating efficiency. In the fourth quarter of 2023, there was a loss, mainly due to the seasonal impact of content costs. Because some large-scale events with higher costs, such as S13 in Q4, but at the same time as the same period in 2022, there was a decrease in the cost of events and domestic costs, as well as the cost of loans, etc. In the fourth quarter, the level of interest has significantly increased, and the overall loss has also decreased. Looking at the whole year, although our income has declined, the income distribution and content costs have decreased by 29%, and the loan cost has decreased by 33%. The interest rate has increased from 7.1% in 2022 to 11.7%.
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Ashley Xin Wu: ,, The total operating costs are 13.9% lower than the previous year., 2023Huya, Non-Gap,1.2 We continued our cost optimization and efficiency enhancement efforts in 2023 to better manage our costs and expenses and improve operational efficiency. The loss in Q4 2023 was mainly due to the seasonal impact of content costs, as some larger and more costly tournaments like S13 took place in Q4.
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We continued our cost optimization and efficiency enhancement efforts in 2023 to better manage our costs and expenses and improve operational efficiency.
Loss in Q4, 2023 was mainly due to the seasonal impact of content cost as some larger and more costly tournaments like as 13 took place in Q4. However.
Ashley Xin Wu: However, driven by declines in events and broadcaster costs, as well as bandwidth costs compared to the same period in 2022, we saw a significant improvement in gross margin profits for Q4, with overall losses also narrowing year over year. For the full year, despite our revenue decline, revenue share and content costs decreased by 29% year over year, bandwidth costs decreased by 33%, and gross margin improved from 7.1% in 2022 to 11.7% in 2023. Meanwhile, we achieved cost savings across all three operating expenses items, i.e. sales, R&D, and G&A, with total OPEX down by 13.1% year over year.
However, driven by declines in defense and forecast of costs as well as bandwidth costs compared to the same period in 2022, we saw a significant improvement in gross margin profit.
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With overall losses also narrowing year over year for.
For the full year, despite a revenue decline revenue share and content costs decreased by 29% year over year.
Bandwidth costs decreased by 33% and gross margin improved from seven 1% in 2022 to 11, 7% in 'twenty three.
Meanwhile, we achieved cost savings across all three operating expenses items I E sales R&D and G&A with total opex down by 13, 1% year over year as a result.
Ashley Xin Wu: As a result, HUYA's operating cost loss narrowed in 2023, where we achieved non-GAAP net profitability of approximately RMB 120 million. In 2024, in terms of cost, we will continue to use a strict ROI analysis and optimization cost investment strategy to work hard to implement further optimization of the competition cost and the relatively fixed contract cost of the host country. ,, As the game-related service business, which has a higher interest rate, gradually grows and its total income ratio increases, we expect the overall interest rate to grow in comparison with 2023. In terms of operations, we also continue to be cautious, especially in terms of sales costs and manpower costs. Based on the current plan, we are confident that we will make a profit in 2024, and the profit index will rise in 2023.
As operating costs loss narrowed in 2023, while we achieved non-GAAP net profitability of approximately RMB $120 million.
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Ashley Xin Wu: In terms of cost, in 2024, it will continue to strive for further optimization of event costs and relatively fixed signing costs for broadcasters through a strict ROI analysis and optimized content investment. Sponsored ADR Class A, As the game-related service business is still in its early stage, its gross profit margin is gradually stabilizing, but it will still be slightly higher than the live-streaming sector. With the gradual growth of the game-related services business, which has a higher gross profit margin and an increase in its proportion of total revenue, we expect the overall gross profit margin to increase compared to 2023. In terms of operations, we will also continue to maintain prudent spending, especially on sales expenses and labor costs. Based on our current plans, we are confident in achieving profitability in 2024, with profit indicators improving compared to 2023. Thank you. Now we will take our last question today from Thomas Chong from Jefferies. Thomas, please go ahead.
In 2024 in terms of costs will continue to strive for further optimization of event costs and relatively fixed signing costs for our broadcasters through a strict ROI analysis and optimized content investment.
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With the gradual growth of the Tam related services business, which has a higher gross profit margin and the increase in as a proportion of total revenue. We expect the overall gross profit margin to increase compared to 2023.
In terms of operations. We will also continue to maintain prudent spending, especially in the service expenses and labor cost.
Based on our current plans, we are confident in achieving profitability in 2024 with profit indicators improving compared to 2023.
Thank you.
Now we will take our last question today from Thomas Chong from Jefferies. Please.
Thomas Chong: ??,??,??, thanks management for taking my question. My question is about our capital situation and the strategy of cash usage. Okay, thank you Fiona for the question.
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Ashley Xin Wu: Since the end of 2023, HUYA has held cash and cash-related household goods and deposits worth nearly $1.4 billion. This amount has changed since the end of September last year, mainly due to a business merger at the end of the year and some of our spending on stock repurchase. From the distribution point of view, more than half of the funds we hold are foreign dollar funds. As of the end of 2023, HUYA held nearly 1.4 billion dollars in cash, cash equivalents, and deposits. The change in the amount compared to the end of September last year was mainly due to business mergers and acquisitions and stock repurchase expenditures at the end of the year. In terms of distribution, the majority of our cash, cash equivalents, and deposits are held in our offshore accounts in US dollars.
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As of the end of 2023, we are held nearly one point were the only in U S dollars in cash cash equivalents and deposits.
And the amount compared to the end of the September last year was mainly due to the business mergers and acquisitions and stock repurchase expenditures at the end of the year in terms of distribution majority of our cash cash equivalents and deposits are held in our offshore accounts in <unk>.
Ashley Xin Wu: , 20242023,, can well support the development of various businesses. At the same time, we will also consider HUYA's potential investment opportunities in the upstream and downstream of the ecological chain to enhance the company's competitiveness. In the case of having a healthy asset representation and cash reserves, the Board of Directors and Managers hope to use cash more efficiently, strengthen the return of investors, and transmit long-term development confidence. As we mentioned earlier, we expect the profitability level in 2024 to have further room for improvement compared to the year before. And we also expect to achieve positive operating cash flow for the full year. Therefore, we'll continue to have sufficient cash reserves to well support the development of our business.
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As we mentioned earlier, we expect a profitability level in 2024 to have further room for improvement compared to the year before and we also expect to achieve positive operating cash flow for the full year.
Therefore, we'll continue to have sufficient cash reserves to well supports the development of our business at the same time, we will continue to carefully consider potential investment opportunities upstream and downstream of <unk> ecosystem to enhance the company's competitiveness with a healthy balance sheet.
Ashley Xin Wu: At the same time, we will continue to carefully consider potential investment opportunities upstream and downstream of HUYA's ecosystem to enhance the company's competitiveness. With a healthy balance sheet and cash reserves, the company's board of directors and management hope to use cash more efficiently, enhancing investor returns, and convey long-term development confidence. In our $100 million re-purchase plan announced in August last year, by the end of December, we have repurchased HUYA shares worth $28.8 million. In the first quarter of this year, we are also actively repurchasing. Today, we are also happy to announce that for the first time in the history of HUYA, TAIXI has supported our shareholders for a long time. This time, we have repurchased a total of about $150 million in cash stocks, which is $0.66 per ADS or regular stock.
<unk> and cash reserves, the company's board of directors and management hope to use cash more efficiently enhancing investor returns and convey long term development confidence.
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Ashley Xin Wu: Sponsored ADR Class A, in the 100 million US dollars repurchase plan we announced last August. As of the end of December, we have repurchased just $28.8 million worth of HUYA stock. And we have continued to actively repurchase shares in the first quarter of this year. Today, we are also pleased to announce our first-ever dividend payout of $0.66 per ADS or per ordinary share, constituting a special cash dividend totaling $150 million for our long-term supportive shareholders. In the future, we will continue to explore ways to improve the efficiency of capital utilization and return to our shareholders.
In the $100 million repurchase plan, we announced last August as of the end of December we have repaired.
$28 $8 million worth of <unk> stock and we have continued to actively repurchase and a first quarter of this year.
Today, we are also pleased to announce our first ever dividend payout of 66 cents per <unk> or per ordinary share constituting a special cash dividend totaling at 115 million U S dollars for our longtime supportive.
Holders in the future, we will continue to explore ways to improve the efficiency of capital utilization and return to our shareholders.
Unknown Executive: Thank you. Thank you once again for joining us today. If you have further questions, please feel free to contact HUYA's investor relations through the contact information provided on our website or PS&T Financial Communications. This concludes today's call, and we look forward to speaking to you again next quarter. Bye-bye.
Thank you.
Thank you once again for joining us today. If you have further questions. Please feel free to contact who you ask investor relations.
Contact information provided on our website <unk> financial communications.
This concludes today's call and we look forward to speaking to you again next quarter. Thank you.
Bye bye.