Q2 2024 Aurora Mobile Ltd Earnings Call
Speaker Change: Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Second Quarter 2024 Ernens Conference Call.
2nd quarter, 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to have a conference over to your host today. Rene Vanguestaine, thank you. Please go ahead, sir. Hello. Rene, go ahead. Shannon, we can start. Yeah, you have to go today. Hello, Steven. Heidi, go ahead. Hello. Thank you. Hello, everyone. And thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at irgwang.cn. On the call today, Mr. Weidong Luo, Chairman and Chief Executive Officer, Mr. Shannon Wong, Chief Financial Officer, and Mr. Guanyan Chen, General Manager. Following the prepared remarks, there will be a available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains Harvard-looking statements. Within the meaning of Section 21 E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Security's litigation reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and make us the company's actual results, performance or achievements, to defer materially from those in the forward-looking statements. Further information regarding these and other risks uncertainties and or factors are included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. With that, I would now like to turn the conference over to Mr. Lu. Please go ahead. Thanks, R&A. Good evening to all. Welcome to our Rambo Bose 2024 Second Quarter earnings call. Before I comment on our Q2 results, I would like to remind everyone that the quarterly earnings that is available on our IO website, you may refer to the data as we proceed with the call today. Following our quarterly ERR tradition based on the Q2 numbers, I will call our performers in the second quarter, writing on the great growth momentum for the following raises.
Speaker Change: At this time, all participants are in addition only mode.
Speaker Change: After the speaker's presentation, there will be a question and art session. To ask a question, draw in this session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised.
Speaker Change: To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to talk to you all. Over to your host today. Rene Vanguestaine, thank you. Please go ahead sir.
Speaker Change: Hello!
Speaker Change: GE Guarani does.
Mr <unk>: On the call today are Mr <unk>, Chairman and Chief Executive Officer.
Speaker Change: Mr Shan Nen, Bong, Chief Financial Officer, and Mr. Guang Yang Chen General manager.
Speaker Change: Following their prepared remarks, they will be available to answer your questions. During the Q&A session that follows.
Speaker Change: Before we begin I'd like to remind you that this conference call contains forward looking statements within the meaning of section 21 E of the Securities Exchange Act of 1934 as amended and as defined in the U S. Private Securities Litigation Reform Act of 1995.
Speaker Change: These forward looking statements are based upon management's current expectations and current market and operating conditions.
Speaker Change: Which are difficult to predict and may cause the company's actual results performance or achievements to differ materially from those in the forward looking statements.
Speaker Change: Further information regarding these and other risks uncertainties or factors are included in the company's filings with the U S Securities and Exchange Commission.
The company does not undertake any obligation to update any forward looking statement as a result of new information future events or otherwise, except as required under applicable law.
Speaker Change: With that I would now like to turn the conference over to Mr. Luo. Please go ahead.
Thanks.
Speaker Change: Great.
Speaker Change: Welcome to I remember, both plenty plenty for our second quarter earnings call.
Speaker Change: Before I comment on our Q2 results I would like to remind everyone that quarterly.
Speaker Change: That is available.
Speaker Change: Our website Youll made reference to that that as we proceed with the call today.
Speaker Change: Following our quarterly odd.
Based on the Q2 numbers.
Speaker Change: I will call out the primaries in the second quarter right on the great growth momentum for the <unk>.
Jenny: First, continue in the great Q1 Head Start, where you record the fourth consecutive quarterly perspective address, EBITDA. This is the end historical achievement for us since our IPO in 2018. Secondly, developer subscription revenue record both 14% growth, quarter of quarter and 90% growth year-of-year. Thirdly, our worst-profit record growth, both year-of-year and quarter-of-quarter. Firstly, our net loss narrowed 95% year-of-year and 50% quarter-of-quarter. I'm truly pleased to share this good news and remarkable financial numbers with all of you. As we continue to grow our top line while tightly and effectively managing the business, we are very hopeful for more great results in the future. Let me spam further. Our total revenue has growth both quarter-of-quarter and year-of-year by 23% and 8% respectively. And we have seen great growth trajectory for both the developer services and vertical application pieces. All our offices, many subscription services, value-add-year services and vertical applications record quarter-of-quarter revenue growth. This repeated also record year-of-year increase is that value-add-year services. Dividend purchase revenue which consists of subscription services and value-add-year services increased by 26% quarter-of-quarter and 8% year-of-year. Subscription revenue increased by 90% year-of-year and 14% quarter-of-quarter, value-add-year services revenue grew by 245% quarter-of-quarter and decreased 28% year-of-year. Subscription services revenue of revenue increased by 90% year-of-year and 14% quarter-of-quarter. The year-of-year and quarter-of-quarter revenue growth was managed driven by increase in output. This was the result of a combination of signing up of higher value contracts and completion of private car projects. Another major contributor of this impressive revenue growth was the solid performance of our engagement app business. The engagement app recognized revenue growth more than 500% year-of-year and 69% quarter-of-quarter. I will elaborate more on our engagement app business shortly. Within subscription revenue, some of the notable new and renewable customers in this quarter include but not limited to China's Southern Airlines, Tiger Broker, Zhang Jiangko-Yingkang, and Changchun-Chen-Chen-Juan, Dastunelfield. Better-add-year services revenue will remain 8.3 million increased by 245% quarter-of-quarter and decreased by 28% year-of-year. The sequential increase was due to the renewable online shopping festival where online advertisers increased their advertising spending to capture more customers during this period. This revenue trend in Q2 was within our expectations. Next, let me expand more on some very exciting numbers and
Speaker Change: For all of your readers.
Jenny: Firstly, Jenny continuing the great Q why they have stock where you record the fourth consecutive quarter a positive adjusted EBITDA.
Speaker Change: Historical achievement for us since our IPO.
Jenny: Okay.
Jenny: Secondly, develop a squishy revenue record of 14% growth quarter after quarter, and 90% growth year over year.
Jenny: But of course appropriate record gopro.
Jenny: Yes.
Jenny: Of course.
Firstly, our net loss narrowed our 95% year over year.
Jenny: 50% of our culture.
Speaker Change: I'm truly pleased to shape. This good news a remarkable financial numbers with all of you.
Speaker Change: As we as we continue to grow our top line, while tightly and effectively managing the business.
Speaker Change: Very helpful for more great results in the future.
Speaker Change: Let me expand further.
Speaker Change: Our total revenue cash growth fourth quarter of a year over year by.
By 23% and 8%, respectively, and we are seeing great growth trajectory for both the developer services Britzka application basis.
Speaker Change: Obviously, let me subscription services.
<unk> and vertical applications record quarter of quarter revenue growth this great business.
Speaker Change: You're off a year increase.
Value added services.
Speaker Change: Given up I should say just revenue which consist of Susquehanna.
Speaker Change: Our DSO basis increased by 26% quarter over quarter per se.
Speaker Change: So scotia revenue increased by 90% year over year, and 14% quarter over quarter.
Speaker Change: So basis revenue grew by 245% quarter over quarter and decreased 28% year over year.
Speaker Change: Subscription services revenue of renminbi.
Speaker Change: $48 1 million gross Johnny by 90 per Se.
Speaker Change: 14% quarter on quarter or year over year and quarter over quarter revenue growth was manager then by increase in ARPA.
Speaker Change: This was a result of a combination of sunny Sunny.
Alberto: Hi, Alberto contrast, and completion of pirate copper, Jeff and.
Alberto: Another major contributor of this impressive revenue growth what the solid performance of our engaged enough basis. They engaged recognize revenue grew more than 100 per se.
Alberto: <unk>, 9% quarter over quarter.
Alberto: He will elaborate more on our engage business shortly.
Alberto: Yes.
Speaker Change: With a subscription revenue some of the notable new and renewable customers in this quarter include but not limited to China Southern Airlines Tiger broker.
Speaker Change: John Jacko, Johan and Tangshan, Sanjay industrial now too.
Speaker Change: But I guess fsa's revenue of RMB, eight 3 million increased by 245% cutoff Goto had decreased by 38% year over year. The sequential increase was due to the failure of online shopping and placed a rail online advertisers increase their advertising spending to capture more customers. During this pre rate is.
Speaker Change: The revenue trend in Q2 was within our expectations.
Speaker Change: Next let me spend more.
Speaker Change: On some very exciting numbers and Thats remember is for all engaged acquisition this quarter.
Speaker Change: Firstly, more and more customers are signing up to purchase our Engagement products and services. The contracted customer numbers has a record of 75% growth reaching 390. We truly believe our Engagement is a superior product where our reliability and high delivery rate are addressing global customers needs effectively. With so many new customers reaching to our Engagement platform from competitors due to our product called Competitancy. Secondly, the cumulative sign contract value of Engagement Group by another Remind me 4.5 million quarter of quarter. Primitively, the total contract value sign up to June 30, 2024 amounts to more than let me be 31 million. This growth momentum has eased our expectations and we plan to cease this growth opportunity for our bulkheads. Firstly, we continue to expand the geographic footprint of our Engagement products. By June 30, 2024, Engagement products and services were sold to customers in more than 29 different countries around the world. In Kyoto alone, we at the same additional countries where Engagement are available. We are very pleased with the progress of our expansion plans. We are gaining more customers from new territory or countries called of quarter. In addition to the Singapore Office that we set up at the beginning of 2024, we are now actively exploring open new local offices into other southern Asia markets such as Thailand and Malaysia. This will not have us better so our overseas customers locally enforce the stronger business relationship with our local direct customers and ISVs. As I know, let me also share with you on our overseas expansion effort. As previously mentioned, China and AI attended tech experts in Singapore in person, in laymei and laymei. Since then, we have received many invitations to attend similar tech experts in southern East Asia. From what I know, we have been invited to attend tech events, experts, why in Thailand, why in Hong Kong and twin Singapore. There are more in the pipeline, we find it very effective for us to expand, chat and share in person with prospective customers during these experts, where we can demonstrate our products and answer any questions on the spot. We took away sales these conversations from the Singapore tech experts in May. Therefore, we will continue to be present at these experts in southern East Asia, the government reasons and beyond. With that, I will now pass the call over to Shannon, who will share more about the vertical applications and other aspects of our financial performance for this caller. Thanks, Chris. Next, I will go over the revenue for vertical application that includes financial risk management and market intelligence. Overall, vertical application recorded a grade quarter where revenue grew by 16% quarter over quarter and 8% year over youth.
Speaker Change: Firstly more and more customers are signing up to purchase our engage in our products and services.
Speaker Change: Customer numbers has a record of.
Speaker Change: Sure.
Speaker Change: <unk>.
Speaker Change: 75% growth, reaching 390 <unk>.
Speaker Change: <unk> is a superior product.
Speaker Change: Reliability and deliver ray tracing global customer needs effectively.
Speaker Change: We saw many new customers, reaching through our engage it upfront from competitors due to our product call competitors.
Speaker Change: Secondly that cumulative signed contract value of engaged engaged by.
Speaker Change: By another RMB, four 5 billion quarter on quarter.
Speaker Change: Cumulative to date, a total contract value was I'm up to June 32024, all amounts to more than 40.
Speaker Change: $41 million this growth momentum.
Speaker Change: Our expectations and we plan to assess this growth opportunity.
Okay.
Speaker Change: Further we continue to expand the geographical footprint of our engage product.
Speaker Change: By June for the tiny tiny for all engage in our products and services was sold to customers in more than <unk>.
Speaker Change: In nine different countries around the world in Q2 alone. We added several additional countries. We're engaged around that although we are very pleased with the progress of our expansion plan, we are gaining more customers from new debt.
Speaker Change: Territories or countries cadre of quarter.
Speaker Change: Additional to the Singapore office that we set up at the beginning of 2024, we are now actively exploring opening local offices into other southern Asa Azure markets, such as Thailand, and Malaysia. This will no doubt have us better serve our.
Most of the customers locally and foster a stronger basis relationship with our local direct customers and ICP.
Speaker Change: As a side note. Let me also share with you on our overseas expansion effort.
Speaker Change: <unk> with Citi mention Shanghai I attended.
Speaker Change: Bert anything Abra in present in late May early may.
Speaker Change: Since then we have received many invitations to other similar to Asbury and other east measure from what I know, we're hoping you might get to attend the event asbestos why in higher Ed while Hong Kong and Singapore. They are more in the pipeline. We are finding very effective for us to expand chat as show in person.
Bruce: <unk> customers guarantees as Bruce where we can demonstrate our products and answer any questions on the spot.
Bruce: We saw core sales based conversations products brought to us where it may therefore, we will continue to be.
Speaker Change: Present at these Esperanza is are the is the azure the Gulf region and beyond.
Shannon: With that I will now pass the call over to Shannon, who will share more about the vertical applications and other aspects of our financial performance for this quarter.
Shannon: Thanks, Chris.
Shannon: Next I'll go over the revenue for vertical application that includes financial risk management and market intelligence.
Speaker Change: Overall with the application and record it.
Speaker Change: Great quarter, where revenue grew by 16% quarter over quarter and 8% year over year.
Shannon: Financial risk management had a very good quarter as revenue grew by 34% year over year and 28% quarter over quarter. The 34% year over year revenue growth was mainly due to a strong 30% customer number growth. We saw more financial sector customers using our products as the needs for risk management and control has been on the rise since the beginning of 2024. This is in line with our expectation. When purchasing services from various vendors like us, financial sector customers will secure and always allow multiple sources of quality data stream to strengthen their risk models. Plus, these are not exclusive relationships. Therefore, we can grow this business even with the coexistence of peers in this industry. The quarterly revenue recorded growth for, this is the 6th consecutive quarter since Q1 of 2023. The customers that we sign up or renew in Q2 include Pingan Xiaozing, Zhongguan Chuningham, Zhongxing Xiaozing, Zhongan Baozing, and many more licensed credit or financial institution throughout China. A market intelligence revenue decreased by 27% year over year and 9% quarter over quarter due to the continued weak market demand for Chinese APP data. Nevertheless, in Q2, we sign up a few new and renew contracts from some of the well-known large customers such as Ether and many top-tier global H1 and investment fund such as 0.72 to broad peak and SRS investment. Next, I will go through some of our key expenses and balance sheet items. On to operating expenses, the Q2 operating expenses was at 54.8 million, representing a 15% decrease year over year and 3% increase quarter over quarter. While we have done a great job of cutting expenses over time, we understand some of the expenses we grow occasionally. For example, we are more than happy to see commission pay to our sales and marketing department to grow every quarter because that means that we are meeting or exceeding the revenue targets that we have set for them. Thus, we welcome expenses growth in specific areas which demonstrate healthy business growth. I will go through the individual OPEC category now. For R&D expenses decreased by 22% year over year to R&P 23.7 million, mainly due to the lower headcount that reduced salary cost and associated share-based compensation and a decrease in server depreciation expenses due to our growing crop initiative. Selling and marketing expenses increased by 2% year over year to R&P 20.5 million, mainly due to the increase in sales commission in life with higher revenue. GNA expenses decreased by 23% year over year to R&P 10.7 million, mainly due to the lower share-based compensation expenses and professional fee increase.
Shannon: Financial risk management had a very good quarter as revenue grew by 34% year over year and 28% quarter over quarter.
Shannon: The 34% year over year revenue growth was mainly due to a strong 30% customer number growth.
Shannon: We saw more financial sector customers using our products as the need for risk management and control has been on the rise since the beginning of 'twenty 'twenty four.
Shannon: This is in line with our expectation.
Shannon: Reducing services from various vendors lightly.
Speaker Change: <unk> financial sector customers with secure and always allow multiple sources of quality data stream to strengthen our risk models.
Speaker Change: These are not exclusive relationship therefore.
Speaker Change: And therefore, we can grow this business, even with the core existence of peers in this industry.
Speaker Change: The quarterly revenue recorded.
Speaker Change: Growth for this is the sixth consecutive quarter since Q1 of 2023.
Speaker Change: The customers that we sign up a renew in Q2 in Q <unk>.
Speaker Change: So 100, Cunningham Johnson consulting <unk>, and many more license credit or financial institution throughout China.
Speaker Change: In market intelligence revenue decreased by 27% year over year, and 9% quarter over quarter due to the continued weak market demand for Chinese ETP data.
Speaker Change: Nevertheless in Q2, we signed up a few new and renew contracts from some of the well known large customers such as ETA and many top tier global hedge funds and investment funds such as <unk> 72.
Speaker Change: Brought in.
Speaker Change: Srs investment.
Speaker Change: Next our group.
Speaker Change: True some of our key expenses and balance sheet items.
Speaker Change: Onto operating expenses. The Q2 operating expenses was $54 8 million, representing a 15% decrease.
Speaker Change: Over a year and 3% increase quarter over quarter.
Speaker Change: While we have done a great job of cutting expenses overtime, we understand some of the <unk> group occasionally.
Speaker Change: For example, we are more than happy to see commission paid to our sales and marketing department to grow every quarter because that means that we are.
Meeting or exceeding the revenue targets that we have set for them.
Speaker Change: Plus we welcome expenses growth in specific area, which demonstrate healthy business growth.
Speaker Change: Our growth to the individual Opex category now.
Speaker Change: For R&D expenses decreased by 22% year over year to renminbi, $23 7 million, mainly due to the lower head count and reduced salary cost and associated share based compensation and a decrease in server depreciation expenses due to our growing initiative.
Speaker Change: Selling and marketing expenses increased by 2% year over year to be $25 million, mainly due to the increase in sales commission in higher.
Speaker Change: Higher revenue.
Speaker Change: G&A expenses decreased by 23% year over year through renminbi, $10 7 million, mainly due to the lowest share based compensation expenses and professional fees incurred.
Speaker Change: For the quarter ended June 30, 2024, was another three-making quarter for us. With great revenue growth and tight growth backspending, we recorded yet another positive adjusted EBITDA. With this, we are now at four straight consecutive quarters of positive adjusted EBITDA. And trust me, this is not an easy achievement, especially as the overall economy has been relatively soft. I have to attribute this to the great Go overseas initiative that we have undertaken since 2023. The English Life Business Aspension has no doubt proved to be a great revenue growth driver. Onto the balance sheet, I will share two of the other important KPIs that we close the monitor. We continue to maintain a healthy ARTN over days, level at 43 days, which are four days reduction compared to Q1 of 2024. We are very pleased with this low ARTN over days number due to work hard to ensure we collect cash actively from customers and at the same time mitigating the risk of bad and doubtful deaths. Secondly, one of the key financial KPI for tracking the performance of SaaS company is the total deferred revenue. We should represent cash collected in advance from customer for future contract performance. We should remain high at 135.1 million. And this is the 10 consecutive quarters where our deferred revenue has exceeded 130 million. Next, total assets were 335.1 million. This includes cash and cash equivalent of 92.7 million. Accounts receivable of 43.1 million. Preparations and other current assets of 20.8 million. Fixed assets of 1.1 million. Long-term investment of 113.2 million. Good view of 37.8 million and intangible assets of 15.8 million resulting from the 10-clock acquisition in March 2002. And total current liabilities were 228.2 million. This includes accounts payable of 26.6 million. Current operating liabilities of 2.8 million. Different revenue of 135.1 million. The crew liabilities of 60.7 million. Now, let me take a few minutes to recap what Chris had said at the beginning of this call where he used the term riding on the great growth momentum description. In this quarter, our deferred developer subscription services revenue recorded solid growth both year over year and quarter over quarter. Financial risk management revenue also grew steadily by more than 30% year over year and 28% quarter over quarter. Our growth profit grew both year over year and quarter over quarter. We are making history again here where we recorded four consecutive quarters of positive adjusted EBITDA. Last but not least, our English lab business recorded customer growth of more than 75% quarter over quarter and cumulative contract value grew more than 4.5 million between the quarters to more than 31 million.
Speaker Change: For the photo ended June 30.
Speaker Change: <unk> 24 was another history, making quarter for us.
Speaker Change: We have great revenue growth and tight opex spending we recorded yet another positive adjusted EBITA.
Speaker Change: We are now have four straight consecutive quarters of positive adjusted EBITA.
Speaker Change: And Trust me this is not an easy achievement, especially as the overall economy has been relatively soft.
Speaker Change: I have to attribute this to the Greek go overseas initiative that we have undertaken since 2023 Denglish lab business as mentioned has no doubt.
Speaker Change: To be a great revenue growth driver.
Speaker Change: Onto the balance sheet.
Speaker Change: Sure.
Speaker Change: <unk>.
Speaker Change: Other important kpis that we closely monitor.
Speaker Change: We continue to maintain a healthy turnover this level at 43 days four days reduction compared to Q1 of 200 and therefore, we are very pleased with this lower turnover. This number.
Speaker Change: To work hard to ensure we collect.
Speaker Change: Cash actively from customers and at the same time mitigating the risk of bad and doubtful debts.
Speaker Change: Secondly, one of the key financial Kpis for tracking the performance of SaaS Company is the total deferred revenue, which represents cash collected in advance from customer for future contract performance, we should remain high and we're going to be $135 1 million.
Speaker Change: And this is the 10th consecutive quarters, where our deferred revenue has exceeded $130 million.
Speaker Change: Next total.
Speaker Change: With $335 1 million.
Speaker Change: This includes cash and cash equivalent of $92 7 million.
<unk> of $43 1 million.
Speaker Change: Prepayments and other current assets of $20 8 million fixed assets of $1 1 million long term investment of 100 million.
Speaker Change: $10 2 million goodwill of $37 8 million in intangible assets of $15 8 million, resulting from the acquisition and much to read into.
Speaker Change: And total current liabilities were $8 2 million does include accounts payable of $26 6 million.
Speaker Change: Current operating liabilities of $2 8 million.
Speaker Change: Revenue of $135 1 million.
Speaker Change: Liabilities of $60 7 million.
Chris: Now, let me take a few minutes to recap what Chris has seat at the beginning of this call where he used the term writing on a growth momentum description.
Speaker Change: In this quarter, our deferred our developer subscription services revenue recorded solid growth year.
Speaker Change: Year over year and quarter over quarter financial risk management revenue also grew steadily by more than 30% year over year and 28% quarter over quarter.
Speaker Change: Gross profit grew both year over year and quarter over quarter.
Speaker Change: We are making history again here, where we recorded four consecutive quarters of positive adjusted EBITA.
Speaker Change: Last but not least our English business recorded customer growth of more than 75% quarter over quarter and cumulative contract value grew more than $4 5 million between the quarters to more than $31 million.
Speaker Change: I believe we have delivered a set of impressive quarterly financial results for all our shareholders. As we continue to pursue our overseas expansion and diligently execute our plan, I look forward to sharing more exciting quarterly financial results in the near future. Lastly, but before I conclude, I'll give a quick update on the share repurchase plan. In the quarter-end of June 30th, 2024, we repurchase 12,000 EDS. Cumulatively, we have repurchased a total of 217,000 EDS since the start of our repurchase program. At this conclusion, I'll prepare remarks. I will be happy to take your question now. Operator, please proceed. Thank you. As a reminder to ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. We will take our first question. Your first question comes from the line of Calvin Wong from Spiceer Capital. Please go ahead. Your line is open. Good evening, management. And thank you for taking my question. And, first of all, congrats for delivering another set of great results. I would like to have two, if I may. If we look at this quarter's result, we find that, okay, revenue has grown substantially, our path at a very good level, and then positive adjusted EB down for the fourth consecutive quarter. So, two simple questions for the management. One, what have contributed to these set of good numbers? And to you, any guidance on the Q3 numbers? Okay, thanks, Calvin. Let me ask questions. Yes, we believe we have done a great job for our investors and our shareholders. If looking at just purely on the four consecutive quarters of positive adjusted EB down that we have managed to record. If I may, in the game of tennis, this will consider to be a grand slam for making four in a row. But of course, the actual work was done off-plan and started long before four quarters ago. And we are now delivering the good results. And if I look at this set of numbers from high level, like 5,000 feet level, there are two good, this good Q2 results is attributable to two factors. One is we organically grow our business too. We are operating our business efficiently in the current environment. As mentioned during the call earlier, three of our business line, namely subscription revenue, value added services and vertical application recorded good and solid revenue growth quarter-over-quarter. And more importantly, I think our core business, namely the subscription business, which contributed approximately 60% of our group's revenue grew both quarter-over-quarter and year-over-year due to the increase in customers, number and up.
Speaker Change: I believe we have delivered a set of impressive quarterly financial results for all shareholders.
Speaker Change: As we continue to pursue our overseas expansion and diligently execute our plan.
Speaker Change: I look forward to sharing more exciting quarter quarterly financial results in the near future.
Speaker Change: Lastly.
Speaker Change: Before I conclude I'll.
Speaker Change: I'll give a quick update on the share repurchase plan.
In the quarter ended June 30 of 284, we repurchased 12000 eds cumulatively, we have repurchased a total of 217000 since the start of our repurchase program.
Speaker Change: And this concludes our prepared remarks.
Speaker Change: Now we'd be happy to take your question now operator.
Speaker Change: Please proceed.
Speaker Change: Thank you as a reminder to ask a question you will need to press star one and one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one and one again.
Speaker Change: Okay.
Speaker Change: We will take our first question.
Speaker Change: Your first question comes from the line of Calvin Wong from my side.
Speaker Change: Please go ahead your line is open.
Calvin Wong: Good evening management and thank you for taking my question.
Calvin Wong: First of all congrats for delivering another set of great results.
Speaker Change: I would like to have two if I may.
Speaker Change: If we look at this quarter's result, we find that okay <unk> has grown substantially all paths.
Speaker Change: Very good example, and then positive adjusted EBITDA for the fourth consecutive quarter. So two simple questions for the management one what have contribute to these set of good numbers and to any guidance on the Q3 numbers.
Speaker Change: Okay. Thanks Kelvin limit.
Speaker Change: Questions.
Speaker Change: Yes, we believe we have done a great job for our investors and our shareholders.
Speaker Change: Looking at just purely on a four consecutive quarters of positive adjusted EBITDA that we have managed to record.
Speaker Change: And if I may.
In the game of tenants. This was considered to be a grand slam for making for in the rule.
Speaker Change: Of course, the actual work was done off plan and started long before four quarters ago, and we are now delivering the good results.
Speaker Change: And if I look at the this set of numbers from high level like 5000 feet.
Speaker Change: There are two groups.
Speaker Change: This good Q2 results is attributable to two factors.
Speaker Change: One is we organically grow our business too we are operating our business efficiently in the current environment.
Speaker Change: As mentioned during our call earlier three of our business lines, namely subscription revenue value added services and put the application recorded good and solid revenue growth quarter over quarter.
Speaker Change: And more importantly, I think ill call business, namely the subscription business, which contributed approximately 60% of our group's revenue grew both quarterly.
Speaker Change: Quarter over quarter and year over year due to the increase in customers number in <unk>.
Speaker Change: as mentioned by Chris earlier, our anguish lab business has been the star of the quarter in Q2, the book revenue has grown for more than 500% year over year driven by a 300% growth in customer's number. Our value-added service on the other hand benefited from the spike in the demand due to the 618 online ecommerce festival. And I mentioned that the financial risk management also has a great quarter. And this is a, we recorded a conservative growth for the past 5 quarters. And this is mainly due to the steady trend of more financial sector customer buying our services as a key input to the risk model. As for the OPEX, yes, we are continue to manage our business well. Revenue grew by 23% year over quarter over quarter over quarter, while OPEX only grew by 5% quarter over quarter. And this is a trend we would like to see. So long as our revenue is growing at a much faster pace than our OPEX, I think the profitability will show up in the books sooner or later. But our job is not done. I think we should strive to make expansion overseas as the main growth driver by signing out more overseas customers and getting customers to renew at a higher contract value. At the same time, we shall continue and meaningfully to spend every single dollar to ensure operated operationally efficient. And for the same question you have on the Q3 forecast, I think we shall not get ahead of ourselves. I think what we have done is we have proven to the public quarter over quarters again over again that our execution capability and how we can stick closely to our strategy and deliver financial results. Therefore, short of giving out promises, what I would say is we will continue to follow our proven strategy to grow our business overseas and domestically. And hopefully, thanks for your question, Kevin. Very clear. Thanks. Thank you. We will take our next question. Your next question comes from the line of Jackson from Galongi Research. Please go ahead. Your line is open. Congratulations on strong quarter and Jackson from Galongi Research. I have all the questions are engaged lab. In each lab we call it a strong quarter in terms of customer number and a cultural value. Would it be the optimal for engagement lab to have a few quarters? Thanks. Thanks, Jack. Let me take this question. Yes, thanks for your interest in English lab. I'm pretty sure that a lot of investors and our shareholders are keen to find out more. And you're right to point out that we have a great numbers in the past three or four quarters for English lab in terms of both customer number and contract value. Before I go to the outlook that you were looking for, maybe I should do a revisit of the current English lab business landscape. Let me spend a few minutes here.
Speaker Change: As mentioned by Chris earlier.
Chris: And given that business has been the star of the quarter in Q2, the book revenue has grown.
Chris: For more than 500% year over year, driven by a 200% roofing customers number.
Speaker Change: Our value added service on the other end benefited from the spike in the demand due to the 618 online ecommerce festival.
Speaker Change: And I mentioned that the financial risk management also had a good quarter.
Speaker Change: And this is Jeff.
Speaker Change: Record of consecutive growth.
Jeff: Five quarters and this was mainly due to the steady trend of more finishes.
Jeff: Effective customer buying our services as a key input to the risk model.
Speaker Change: As for the Opex, Yes, we are continuing to manage our business well revenue grew by 23% quarter over quarter, while opex only grew by 5% quarter over quarter and this is a trend we would like to see so long as we so long as our revenue is growing at a much faster pace than opex.
Speaker Change: I think the profitability will show up in.
Speaker Change: In the books sooner or later.
Speaker Change: But our job is not done.
Speaker Change: We strive to make expansion overseas as the main growth driver.
Speaker Change: Finding out more overseas customers and getting customers to renew at a higher contract value.
Speaker Change: At the same time, we shall continue and meaningfully to spend every single dollar to ensure operator operationally efficient.
Speaker Change: And for the second question you have on the Q3 forecast I think we should not get ahead of ourselves.
Speaker Change: I think what we have done is we have proven to the public quarter over quarters again over again that our execution capability and how we can stick closely to our strategy and deliver financial results.
Speaker Change: Therefore.
Speaker Change: Short of giving our promises what I'll say is we'll continue to follow our proven strategy to grow our business overseas and domestically.
I Hope this answer your question Kevin.
Speaker Change: Very clear.
Speaker Change: Okay.
Kevin: Thank you.
Speaker Change: We will take our next question.
Speaker Change: Your next question comes from the line of Jackson from <unk> Research. Please go ahead. Your line is open.
Speaker Change: Congratulations on a strong quarter and Jackson bonds Global research I've got a question are engaged.
Jackson: And you can ask a quick call it a strong quarter in terms of.
Speaker Change: Customer lumber and the control that it wouldn't be the envelope for engagement.
Speaker Change: Cortes.
Jack: Thanks Jack.
Speaker Change: We take this question.
Speaker Change: Yes. Thanks for your interest in English left I'm pretty sure that a lot of investors and our shareholders.
Speaker Change: Kinda final more.
Speaker Change: And Youre right to point out that we have a great numbers in the past three or four quarters for English snap in terms of both customer number in contract value.
Speaker Change: Before I go to the outlook that you were looking for maybe I should do a revisit of the current English lab business landscape, let me spend a few minutes here.
Speaker Change: Currently, our Angusia Business is growing every quarter for the following reason. In one, we have a great suite of product and services that help our customers to engage with their own users in an efficient and cost-effective manner. And two, we have a competitive advantage of sending notification to certain brand of Chinese mobile devices that our US competitors are not able to. Three, we have multiple channel engagement solution that effectively cover all user-engagement scenarios such as app push, web push. We have SMS, we have emails, we have OTP, and we have WhatsApp Business API. And with your birth, I think we are addressing the needs of our customers. And that is key because customers are only willing and likely to buy our services because we meet or exit their expectation on user engagement. And in addition, I think we are getting new customers and businesses through both Chinese companies venturing overseas and local companies in their respective countries. We do see great opportunities for us to expand and grow every quarter. Based on our research, the overseas market demand, which is also called as TEM, total addressable markets for English-led or notification distance is huge. And we intend to grab this good portion of the market in the service Asia. And so my answer to your question, what I will say is we are very hopeful for this business to have continued growth every single quarter in the near future. I guess we are first getting more additional hate cow in service percent in Singapore and Malaysia. We can reach out to more customers overseas. Therefore, I am very confident that our sales team in the overseas market will sign out more customer in the near future. And Jack, I hope you answer your question. Oh yeah, that's very clear. Thank you a lot. Have a good one. Thanks. Thank you. As a reminder, if you wish to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. Once again, if you wish to ask a question, please press star one and one on your telephone. There seems to be no further questions at this time. I will now have the call back to René Van Gasthain for closing remarks. Thank you, Heidi. Thank you everyone for joining our call tonight. If you have any further questions or comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good night. Thank you all. This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: Currently our <unk> business is growing every quarter.
Speaker Change: For the following reason.
Speaker Change: One we have a great suite of products and services that help our customers to engage with their own users.
Speaker Change: <unk> and cost effective manner.
Speaker Change: And two we have a competitive advantage of sending notification to Susan <unk>.
Speaker Change: <unk> of Chinese mobile devices that are U S competitor I'm not eager to.
Speaker Change: <unk>, we have multiple China Englishman solution that effectively cover all user Englishman scenario such as at push back push we have SMS, we have E mails.
Speaker Change: And what's.
Speaker Change: Was that business API.
Speaker Change: Now if they are both I think we are addressing the needs of our customers and that is key because customers are only willing and likely to buy our services, because we meet or exceed expectations on user engagement.
Speaker Change: And in addition, I think we are getting new customers and businesses to both Chinese companies venturing overseas and local companies in their respective countries. We.
Speaker Change: We do see great opportunities for us to expand and grow every quarter.
Speaker Change: Based on our research.
Speaker Change: We'll see.
Speaker Change: Market demand, which is also quite as Tam total addressable market for English.
Speaker Change: Notification business is huge and we intend to we intend to.
Speaker Change: This green portion of the market in the Southeast Asia.
Speaker Change: So my answer to your question.
Speaker Change: What I will say is we are very hopeful for this business to continue to grow every single quarter in the near future.
Speaker Change: I guess first getting more additional head count in sales person in Singapore, and Malaysia, we.
Speaker Change: We can reach out to more customers.
Speaker Change: Therefore, I am very confident that our sales team in overseas market, we sign up more customers in the near future.
Speaker Change: And Jacob I Hope this answer your question.
Speaker Change: Oh, yes, that's very clear. Thank you a lot have a good one.
Speaker Change: Thanks.
Speaker Change: Thank you as a reminder, if you wish to ask a question you will need to press star one on your telephone.
Speaker Change: For your name to be announced.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Once again, if you wish to ask a question. Please press star one and one on your telephone.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: That seems to be no further questions at this time I'll now hand, the call back to when a banker Stein for closing remarks.
Speaker Change: Thank you Heidi.
Speaker Change: Thank you everyone for joining our call Tonight.
Speaker Change: If you have any further questions or comments, please don't hesitate to reach out to the IR team.
Speaker Change: This concludes the call hyper good night. Thank you all.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
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Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to the Aurora Mobile second quarter 2024 earnings conference call. At this time all participants are in a listen only mode. After the speakers presentation there will be a question and answer session. To ask a question during this session you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star one and one again. Please be advised that today's conference is being recorded. I would now like to confirm over to your host today. Rene Vanguestaine, thank you. Please go ahead, sir. Rene, go ahead. Shannon, we can start. [inaudible] Yes, yes, yes yes, yes, yes, yes, yes, yes, yes yes, yes, yes, yes [inaudible] yes, yes, yes, yes, yes, yes, yes [inaudible] yes, yes, yes,
Speaker Change: Following our quarterly ERR tradition, based on the Q2 numbers, I will call our performers in the second quarter, writing on the great growth momentum for the following raises. Firstly, continuing the great Q1 hairstyle, we record the fourth consecutive quarterly positive agenda. This is the end historical achievement for us since our ITO in 2018. Secondly, developers' subscription revenue record both 14% growth quarter of quarter and 90% growth year-of-year. Furtherly, our worst-profit record growth, both year-of-year and quarter-of-quarter. Firstly, our net loss narrower, 95% year-of-year and 50% quarter-of-quarter. I'm truly pleased to share this good news and remarkable financial numbers with all of you. As we continue to grow our top-line while tragedy and effectively managing the business, we are very hopeful for more great results in the future. Let me spend further. Our total revenue has grown both quarter-of-quarter and year-of-year by 23% and 8% respectively, and we can see great growth tragedy for both the developer surfaces and vertical application surfaces. Our offices, many subscription surfaces, manual adieu surfaces and vertical applications record quarter-of-quarter revenue growth, these three pieces also record year-of-year increase, except manual adieu surfaces. The manager surfaces revenue, which consists of subscription surfaces and value adieu surfaces increased by 26% quarter-of-quarter and 8% year-of-year. subscription revenue increased by 90% year-of-year and 40% quarter-of-quarter. Value adieu surfaces revenue grew by 245% quarter-of-quarter and decreased 28% year-of-year. subscription surfaces revenue of revenue increased by 40% year-of-year and 40% quarter-of-quarter. The year-of-year and quarter-of-quarter revenue growth was managed by increase in APU. This was the result of a combination of signing up of higher value contracts and completion of private companies. Another major contributor of this impressive revenue growth was the solid performance of our engagement basis. The engagement recognized revenue growth more than 100% year-of-year and 69% quarter-of-quarter. I will elaborate more on our engagement basis shortly. Within subscription revenue, some of the notable new and renewable customers in this quarter include, but not limited to China's Southern Airlines, Tiger Broker, Zhang Jiangko and Zhang Jiangzhenjuan. Better adieu surfaces revenue will remain 8.3 million increased by 245% quarter-of-quarter and decreased by 28% year-of-year. The sequential increase was due to the billy above on-line shopping face-to-world online advertisers increased their advertising spending to capture more customers during this period. This revenue trend in culture was within our expectations.
Speaker Change: Next, let me explain more on some very exciting numbers and attributes for our Engaging App Visitors Discordr. Firstly, more and more customers are signing up to purchase our Engaging App products and services. The contracted customer numbers has a record of 75% growth reaching 390. We truly believe our Engage App is a superior product where our reliability and high delivery rate are addressing global customers is effectively. With so many new customers reaching to our Engage App platform from competitors due to our product called Competitancy. Secondly, the cumulative sign contract value of Engage App is good by another 4.5 million and quarter of quarter. Cumulatively, the total contract value sign up to June 30, 2024 amounts to more than let me be 41 million. This growth momentum has its expectations and we plan to see this growth opportunity breathe out both hands. Firstly, we continue to expand the geographic footprint of our Engage App products. By June 30, 2024, Engage App products and services were sold to customers in more than 29 different countries around the world. In Q2 alone, we add the same additional countries where Engage App are available. We are very pleased with the progress of our expansion plans. We are gaining more customers from new territory or countries, quarter of quarter. In addition to the Singapore Office that we set up at the beginning of 2024, we are now actively exploring open new local offices into other southern Asia markets such as Thailand and Malaysia. This will not have us better so our overseas customers locally and foster stronger business relationships with our local direct customers and ICBs. As outside know, let me also share with you on our overseas expansion effort. As previously mentioned, Shining and I attended tech expert in Singapore in person in laymate. Since then, we have received many invitations to attend similar tech experts in southern Asia. From what I know, we have been invited to attend the tech events, experts, why in Thailand, why in Hong Kong and to in Singapore. There are more in the pipeline. We find it very effective for us to expand, share and share in person with prospective customers during these experts where we can demonstrate our products and answer any questions on the spot. We talk where it saves these conversations from the Singapore tech expert in May. Therefore, we will continue to be present at these experts in southern East Asia, the California region and beyond. With that, I will now pass the call over to Shining, who will share more about the vertical applications and other aspects of our financial performance for this quarter. Thanks, Chris. Next, I will go over the revenue for vertical application that includes financial risk management and market intelligence.
Speaker Change: Over all, vertical application recorded a grade quarter where revenue grew by 16% quarter over quarter and 8% year over year. Financial risk management had a very good quarter as revenue grew by 34% year over year and 28% quarter over quarter. The 34% year over year revenue growth was mainly due to a strong 30% customer number growth. We saw more financial sector customers using our products as the needs for risk management and control has been on the rise since the beginning of 2024. This is in line with our expectation. When purchasing services from various vendors like us, financial sector customers will secure and always allow multiple sources of quality data stream to strengthen their risk models. Thus, these are not exclusive relationships. Therefore, we can grow this business even with the coexistence of peers in this industry. The quarterly revenue recorded growth for, this is the 6th consecutive quarter since Q1 of 2023. The customers that we sign up or renew in Q2 include Pingan Xiaojing, Zhongkuan Chuningham, Zhongxing Xiaojing, Zhongan Bao Xin, and many more licensed credit or financial institution throughout China. A market intelligence revenue decreased by 27% year over year and 9% quarter over quarter due to the continued risk market demand for Chinese APP data. Nevertheless, in Q2, we sign up a few new and renew contracts from some of the well-known large customers such as Ether and many top-tier global H1 and investment fund, such as 0.72 block peak and SRS investment. Next, I'll go through some of our key expenses and balance sheet items. On to operating expenses, the Q2 operating expenses was at 54.8 million representing a 15% decrease year over year and 3% increased Q4 over quarter. While we have done a great job of cutting expenses over time, we understand some of the expenses we grow occasionally. For example, we are more than happy to see commission paid to our sales and marketing department to grow every quarter because that means that we are meeting or exceeding the revenue targets that we have set for them. Thus, we welcome expenses growth in specific areas which demonstrate healthy business growth. I'll go through the individual PEPS category now. For R&D expenses decreased by 22% year over year to R&D 23.7 million, mainly due to the lower headcount that reduced salary cost and associated share-based compensation and a decrease in server depreciation expenses due to our growing crop initiative. Selling and marketing expenses increased by 2% year over year to R&D 20.5 million, mainly due to the increase in sales commission in life with higher revenue.
Speaker Change: J&A expenses decreased by 23% year-over-year to Rene V10.7 million, many due to the lowest share-based compensation expenses and professional fee incurred. For the quarter ended June 30, 2024, was another history-making quarter for us. With great revenue growth and tight growth backspending, we recorded yet another positive adjusted EBITDA. With this, we are now have four straight consecutive quarters of positive adjusted EBITDA. And trust me, this is not an easy achievement, especially as the overall economy has been relatively soft. I have to attribute this to the great go overseas initiative that we have undertaken since 2023. The English Life Business expansion has no doubt proved to be a great revenue growth driver. Onto the balance sheet, I will share two of the other important KPIs that we close in monitor. We continue to maintain a healthy ARTN over-day level at 43 days, which is a four-day reduction compared to Q1 of the new year 4. We are very pleased with this low ARTN over-day number due to work hard to ensure we collect cash actively from customers and at the same time mitigating the risk of bad and doubtful deaths. Secondly, one of the key financial KPIs for tracking the performance of SaaS company is the total different revenue, which represents cash collected in advance from customer for future contract performance, which remain high at $135.1 million, and this is a 10 consecutive quarters where our different revenue has exceeded $130 million. Next total assets were $335.1 million. This includes cash and cash equivalent of $92.7 million. Accounts receivable of $43.1 million. Pre-payments and other current assets of $20.8 million. Fixed assets of $1.1 million. Long-term investment of $113.2 million. Good view of $37.8 million and intangible assets of $15.8 million resulting from the 10-clock acquisition in March 2002. And total current liabilities were $228.2 million. This includes accounts payable of $26.6 million. Current operating liabilities of $2.8 million. Deferred revenue of $135.1 million. The crew liabilities of $60.7 million. Now let me take a few minutes to recap what Chris had said at the beginning of this call where he used the term, writing on the great growth momentum description. In this quarter, our deferred developer subscription services revenue recorded solid growth both year over year and quarter over quarter. Financial risk management revenue also grew steadily by more than 30% year over year and 28% quarter over quarter. Our growth profit grew both year over year and quarter over quarter.
Speaker Change: We are making history again here where we recorded four consecutive quarters of positive adjusted EBITDA. Last but not least, our English lab business recorded customer growth of more than 75% quarter over quarter and cumulative contract value grew more than 4.5 million between the quarters to more than 31 million. With the above, I believe we have delivered a set of impressive quarterly financial results for all our shareholders. As we continue to pursue our overseas expansion and diligently execute our plan, I look forward to sharing more exciting quarter, quarter needs financial results in the near future. Lastly, but before I conclude, I'll give a quick update on the share reperchase plan. In the quarter ended at 030th, 2024, we reperchase 12,000 EDS. Cumulatively, we have reperchase a total of 217,000 EDS since the start of our reperchase program. At this conference, I'll prepare remarks. I will be happy to take your question now, operator, please proceed. Thank you. As a reminder to ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. We will take our first question. Your first question comes from the line of Calvin Wong from Spicehya Capital. Please go ahead. Your line is open. Good evening, management, and thank you for taking my question. And first of all, congrats for delivering another set of great results. I would like to have two, if I may, if we look at this quarter's result, we find that okay, revenue has grown substantially, our path at a very good level, and then positive adjusted EB down for the fourth consecutive quarter. So two simple questions for the management. One, what have contributed to these set of good numbers, and two, any guidance on the Q3 numbers? Okay, thanks, Calvin. Let me question. Yes, we believe we have done a great job for our investors and our shareholders. If looking at just purely on the four consecutive quarters of positive adjusted EB that we have managed to record, if I may, in the name of, in the game of tennis, this will consider to be a grand slam for making four in a row. But of course, the actual work was done off-plan and started long before four quarters ago, and we are now delivering the good results. And if I look at this set of numbers from high level, like 5,000 feet level, there are two good, this good Q2 results is attributable to two factors. One is we organically grow our business too. We are operating our business efficiently in a current environment.
Speaker Change: As mentioned during the call earlier, three of our business line, namely subscription revenue, value-added services and vertical application recorded good and solid revenue growth quarter over quarter. And more importantly, I think our core business, namely the subscription business, which contributed approximately 60% of our group's revenue grew both quarter over quarter and year over year due to the increase in customer number and output. As mentioned by Chris earlier, our English web business has been the star of the quarter in queue to the book revenue has grown for more than 500% year over year, driven by a 300% growth in customer number. Our value-added service on the other hand benefited from the spike in the demand due to the 618 online e-commerce festival. And I mentioned that the financial risk management also had a great quarter and this is a recorded conservative growth for the past five quarters and this will mainly due to the steady trend of more financial sector customer buying our services as a key input to the risk model. As for the OPEX, yes, we are continuing to manage our business well. Revenue grew by 23% year over quarter over quarter while OPEX only grew by 5% quarter over quarter. And this is a trend we would like to see. So long as our revenue is growing at a much faster pace than our OPEX, I think the profitability will show up in the books sooner or later. But our job is not done. I think we should strive to make expansion overseas as the main growth driver by signing out more overseas customers and getting customers to renew at a higher contrary value. At the same time, we shall continue and meaningfully to spend every single dollar to ensure operated operationally efficient. And for the same question you have on the Q3 forecast, I think we shall not get a hit over ourselves. I think what we have done is we have proven to the public quarter over quarters, again, over again that our execution, capability, and how we can stay closely to our strategy and deliver financial results. Therefore, short of giving out promises, what I would say is, we will continue to follow our proven strategy to grow our business overseas and domestically. And hopefully, thanks for your question, Kevin. Very clear. Thanks. Thank you. We will take our next question. Your next question comes from the line of Jackson from Galongi Research. Please go ahead, your line is open. Congratulations on Strong Quarter and Jackson from Galongi Research. I have all the questions I will engage in that. In general, I have recorded a strong quarter in terms of customer number and cultural value. Would it be the awful lot for in general, if we have the few quarters? Thanks. Thanks, Jack. Let me take this question. Yes. Thanks for your interest in English left. I'm pretty sure that a lot of investors and our shareholders are.
Speaker Change: King to find out more. And you are right to point out that we have a great numbers in the past three or four quarters for English Lab in terms of both customer number and contract value. Before I go to the outlook that you were looking for, maybe I should do a revisit of the current English Lab business landscape. Let me spend a few minutes here. Currently our English Lab business is growing every quarter for the following reason. In one, we have a great suite of products and services that help our customers to engage with their own users in an efficient and cost effective manner. And two, we have a competitive advantage of sending notification to certain brands of Chinese mobile devices that our US competitor are not able to. Three, we have multiple channel Englishman solution that effectively cover all user Englishman scenarios such as app push, web push. We have SMS, we have emails, we have OTP and we have what's that business API. And with your birth, I think we are addressing the needs of our customers and that is key. Because customers are only willing and likely to buy our services because we meet or exceed their expectation on user Englishman. And in addition, I think we are getting new customers and businesses through both Chinese companies venturing overseas and local companies in their respective countries. We do see great opportunities for us to expand and grow every quarter. Based on our research, the overseas market demand which is also we can call it as time total addressable markets for English lab or notification business is huge. And we intend to break this good portion of the market in the service area. And so my answer to your question, what I will say is we are very hopeful for this business to have continued growth every single quarter in the near future. I guess we are getting more additional hate cow in salesperson in Singapore and Malaysia. We can reach out to more customers. Therefore, I am very confident that our sales team in the overseas market will sign out more customers in the near future. And Jack, I hope this answer your question. Oh yeah, that's very clear. Thank you a lot. Have a good one. Thanks. Thank you. As a reminder, if you wish to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. Once again, if you wish to ask a question, please press star one and one on your telephone. There seems to be no further questions at this time. I will now have the call back to Rene Vankestein for closing remarks. Thank you Heidi. Thank you everyone for joining our call tonight. If you have any further questions or comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good night. Thank you all. This concludes today's conference call. Thank you for participating. You may now disconnect.