Q4 2023 Phoenix New Media Ltd Earnings Call

Welcome to Phoenix, New media fourth quarter 2023 earnings call.

At this time, all participants and a listen only mode. After the speaker's presentation there'll be a question and answer session to ask the question. During the session you will need to press star one on your telephone you will then she an automated message advising ahead is raised to withdraw your question. Please press star one again.

Please be advised that today's conference is being recorded.

I'd like to hand, the conference over to your first speaker today Ms. Zhu Gal of IR Department. Please go ahead.

Thank you operator, welcome to Phoenix, New Medias earnings conference call for the fourth quarter of 2023 joining.

Joining me here today are our CEO, Mr Johnson, and our CFO Mr. Edward Lu.

During this call our management team will begin by providing an overview of our quarterly results followed by a Q&A session.

Final financial results for the fourth quarter of 2023 as well as the webcast of this conference call on our website at IR day, iPhone Dot com.

A replay of this call will also be made available on the website within the next few hours.

Before we proceed I would like to draw your attention to our safe Harbor statement, which can be found in our earnings press release.

This statement is important as it pertains to our forward looking statements during this call. Additionally.

Additionally, please note that unless otherwise specified all figures mentioned throw this conference call are in RMB.

Now I will pass the call to Mr. Sun, our CEO for his opening remarks, I will provide the translation since I'll pay ketchup.

Hum.

Oh go ahead.

Uh huh.

Ginger into who you know doing sounds like absolutely boat.

Uh-huh Fuji, though the team tinder.

Do you think it will open.

With us for the call.

<unk> total.

That's a question though.

So if we want to or not to do.

So I'm going to talk to their own build out.

Hello.

One gentleman, who hooked in Ohio.

The Washington D C. One.

So you could you can do really.

Suzanne.

Weird either.

Condo downtown to touch on.

And we used to go to you how close to the 10, you'll see that.

T O P E zone.

But all in Pudong, Shanghai, whose.

Two more function.

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Sure sure those hydro.

So having a <unk> that was a concern to them.

These people will tell you in the 22.

Hey, Joe.

Thanks, Susan.

Hello, Dear investors today's meeting aims to provide an overview of the companys operational progress in the fourth quarter and to share our reflections for the future. We'll look forward to engaging discussions and addressing any questions you may have.

Before delving into the report I'd like to emphasize that regardless of shifts in the macro environment, our company's enduring core competence lies in news.

This competency will be a focal point in our ongoing efforts to optimize operational resources enhanced brand value premium fostering innovation and business model and ensure the sustained a robust development of the company.

Now I'll have Edward present, a more detailed report on my behalf.

Yeah.

Sure.

Okay.

All of our content the productivity.

I appreciate it.

Video platform.

And the monetization of our content and event marketing offering.

Through all the Q4, we maintained our jeep covering major events in the briefing.

In the old World.

International and confirmation in Beijing.

Coolers declining.

Infusion.

Could you or the diverse array.

Okay.

From interviews.

Commentary.

Leveraging our social media presence too.

Sure.

Across all of our areas.

Platforms.

Our interviews influential clinical figures sure sure.

Got it.

Widespread acclaim.

Thank you Peter.

Paul certainly many news.

And the road.

The content of our region.

Okay.

Over agitation to original content creation.

Julie recognized exemplified by our complementary users.

Sure.

So China DUC inventory top 10 award.

Of course actual.

Released in Q4.

With over 700 million.

Excellent so parsons.

100 <unk> mouse.

And hopefully the country of elderly people in nursing homes.

Fascinated to play.

Emulating 230 million views overall.

110 million views.

Sure.

Securing permanent positions.

And then social is.

By year end turn you over.

Over 2 million subscribers.

Hi.

Commercial.

Within our content.

And for the year.

Okay.

Exactly.

Serious flagship.

And the marketing initiatives.

Our interest in the industry.

Our iPhone furnace summit.

Timber.

Charles.

Hosting the confidence.

Luminary from EMEA and the industry.

Page in discussions.

Shavings global in the Chinese.

Economies.

Useful.

Additionally, we are hosting.

That's the first.

Our awards for any scans are overwhelmed or qos.

I haven't seen the agency referenced in <unk> and.

And the brands that represent the juice category.

Mark you impact.

Social media Influencers across domains.

For beauty and fashion to fittings, and the lifestyle underscoring our commitment to recognizing.

Positive industry developments.

On the product front.

The concentration of your minds.

The content recommendation algorithm.

Assemblies fusion.

Timely updates personalized insight.

Immersive experiences.

Bolstered by 20% year on year increase in Greece.

And the double digit gross video engagement magic.

Our content strategy well.

Received by our users.

Driving deeper engagement and extended user sessions.

Yes.

Yeah.

In parallel with our content and product enhancements.

Embarked Australia strategic overhaul of our advertising sales team.

Transitioning from <unk>.

Regional sales hubs to industry specific.

Business units.

The alignment.

Facilitated sharper industry focus streamline.

Streamline sources location.

Accelerated innovation.

The groundwork for sustained commercial growth.

Our priorities are clear.

To expand our customer base on the untapped opportunities.

Good morning.

Market positioning across diverse segments.

Yeah.

Tailored approach to customer engagement strategic content investments.

Our renewed focus on marketing differentiation.

We are well positioned to suppose congregational meteor boundaries.

<unk> per watt.

Prehensile marketing solutions to our clients.

In 2003 through improvements in operational efficiency.

Managed to.

Currently reduced.

Yeah.

Thank you.

<unk>.

Waiting losses moving forward, we are committed to sustain this momentum by prioritizing operational excellence and strategic innovation.

Well also continuing to strengthen our media influence and their brand value.

Thanks Scott.

Competent.

To navigate.

The media landscape.

Work toward achieving our objectives.

Objectives.

This concludes our CEO, Mr <unk> prepared remarks.

I will now walk you through our financial performance.

For the first quarter of 2023.

All figures mentioned that will be in RMB.

Our total revenues or 211.

Yes.

As compared to $223 9 million in the same period of last year.

Remember it.

Advertising revenues.

Andrew Thanks to seven minute compared to 205 firm in the same period of last year.

The decrease was mainly due to the reduction in advertising spending of advertisers in certain industries and intensified industrial why that combination.

Paid services revenues or $14 8 million compared to a patient five minutes in the same period of last year.

Chris was mainly due to a decline in.

E Commerce revenues.

Cost of revenues in the first quarter of 2023.

Alright, 11, 3% to 125 minutes.

$135 eight for a minute and just in periods of last year.

And gross margin in the first quarter of 'twenty.

Chris.

<unk>.

Three points.

Per cent from $9 four.

As a result of strict cost control measures implemented.

Great.

Income from operations was.

$22 9 million compared to income from operations of <unk>.

$6 7 million in the same period of last year.

Net income attributable to iPhone, $8 1 million compared to net income.

Well truth, iPhone RMB $41 six minutes in the same period.

Lastly here.

Moving on to our balance sheet.

As of December 31st 2020.

St <unk> cash and cash equivalents term deposits short term investments and restricted cash were RMB one.

Zero nine.

Approximately one.

150 for a minute.

I'd like to provide our business outlook for the first quarter of 'twenty 'twenty four.

Forecasting total revenues to be between 170.

And one or $45 8 million.

Hello.

Housing revenues.

Forecasting between 121 stream.

And the $131 3 million.

For paid service revenues, we are full.

Casting between $9 5 million and $14 5 million.

Okay.

Yeah.

In fact, our current and preliminary view, which are subject to change and the substantial uncertainties.

This concludes our prepared portion of our call we're now ready for questions.

Please go ahead.

Thank you.

Just a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to have Joel. Your question. Please press star one again.

Lisa I'm biased to compile the Q&A roster.

Our first question comes from Alice Chen of <unk> Shanghai. Please go ahead. Thank you Alex.

Yeah.

Good morning, Thank you for taking my question.

So it appears that the company's operational profit saw a notable uptick in 2023.

Could you. Please provide some insight into your expectations for the company's performance in 2024, and Additionally, what are the prospects for the advertising market anticipated for the upcoming year. Thank you.

Thank you for the question.

This year well.

Sorry <unk>.

Operating profit.

Reducing losses this means increasing revenue.

Our cost and.

Stable cash flow.

We planned.

All of our goals for 2024.

We took a good hard look at.

Unscathed and came up with solid strategies to help us this.

These targets.

Easing caliber.

Collaboration between ourselves and the content of the tapes.

Making sure our tech and management.

On point, our Whiting essential support.

Also set up operational metrics.

Of course, actionable and carnival.

Supplemented by appropriate incentive structures to drive performance.

Now Bob.

Advertising market, we saw a decrease in internet advertising last year.

Hi, Mark.

It's to be closely tied to economic shifts.

There will be challenges.

Regardless of the environment.

There are always opportunities to pursue.

Through innovative thinking targeted strategies and execution.

We can seize opportunities.

Well maintain our unique positioning as a mainstream media all correct well accelerating the development of innovative marketing solutions and.

Responding quickly to market changes.

Or.

Maybe your interest in international marketing effort.

We will explore new avenues.

For girls in areas like global branding counter tourism marketing.

And the monetization of <unk>.

Our accounts on the video platform.

Thank you. Thank you for the questions I see no further questions at this time.

I would like to hand back the conference to music. Please go ahead.

Thank you we'll have come to the end of our Q&A session and our conference call. Please feel free to contact us. If you have any further questions. Thank you for joining us today.

Have a good day.

Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.