Q4 2024 Bilibili Inc Earnings Call
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Speaker Change: Good day, and welcome to the fourth quarter and fiscal year 'twenty 'twenty four financial results and business update conference call. Today's conference call is being recorded at this time I would like to turn the conference over to Juliet Yang.
That's sort of Investor Relations. Please go ahead.
Speaker Change: Thank you operator.
Speaker Change: During this call we will discuss our business outlook and make forward looking statements. These comments are based on our predictions and expectations as of today.
Speaker Change: True events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our rate.
Speaker Change: Most recent filing with the SEC and Hong Kong stock exchange.
Speaker Change: GAAP financial measure we provide are for comparison purposes only.
Speaker Change: Definition of this measure.
Speaker Change: Aviation table are available in the news release, we issued earlier today.
Speaker Change: Minder. This conference is being recorded in addition, an investor presentation and a webcast replay of this conference call will be available on the IR website at IR docs.
Speaker Change: Dot com.
Speaker Change: Joining us today.
Speaker Change: Senior management are Mr. Li Chen Chairman of the Board and Chief Executive Officer, It's Collie, Vice chairwoman of the board and Chief operating Officer and Mr. Sam Fan Chief Financial Officer.
Now I'll turn the call to Mr. Chen.
Speaker Change: Thank you Juliet and thank you everyone for participating in today's call to discuss our fourth quarter and 2024 year end results.
Mr. Chen: 'twenty 'twenty four marked a pivotal year for BD PD.
Mr. Chen: We closed the year with our first GAAP net profit in the fourth quarter, while achieving solid growth across the board.
Mr. Chen: We attribute these achievements to the unique proposition of our video community the growing value of our user base.
Mr. Chen: And our enhanced commercialization efficiency.
Mr. Chen: Looking at this in more detail.
Mr. Chen: First on our financial performance.
Mr. Chen: We are very happy with the progress made in improving our overall financial metrics this year.
Mr. Chen: Total revenues came in at RMB, seven 7 billion in the fourth quarter and RMB $26 8 billion for the full year, reflecting year over year increases of 22% and 19% respectively.
Mr. Chen: Driven by continued improvements in our AD products and infrastructure.
Mr. Chen: Advertising business sustained strong growth with revenues, increasing 24% year over year in the fourth quarter and 28% for the year.
Mr. Chen: Meanwhile, our mobile games revenues surged by 79% year over year in the fourth quarter and 40% for the year as we successfully expanded into the strategy game genre.
Mr. Chen: The rapid growth of these high margin businesses and improved operating leverage drove our Q4 gross profit margin to 36, 1% contributing to 68% year over year growth in gross profit.
Building on these we successfully achieved our first quarter of net profit on a GAAP basis at RMB $89 million and our adjusted net profit reached RMB $452 million in Q4.
Mr. Chen: While opening a new chapter of profitability, our community remains vibrant and highly engaged in.
Mr. Chen: In the fourth quarter da use and <unk> reached $103 million and $340 million, respectively with users spending an average of 19 nine minutes daily on our platform our user base represents nearly 70% of China's Gen Z plus population.
Mr. Chen: With an average age of 25.
Mr. Chen: They are the golden cohort of consumers with rising spending power and consumption demand.
Mr. Chen: We're also seeing a growing desire among users for fulfillment and empowerment through high quality video content.
Mr. Chen: As the hub for the young generation.
Mr. Chen: <unk> is uniquely positioned to meet these evolving needs, while unlocking greater commercial value in.
Mr. Chen: In addition, under the tailwind of fast evolving AI technology. The rise of open source models like deep seek is opening up new frontiers for innovation.
Mr. Chen: These models will enable more companies like us to skip the demanding and capital intensive process of developing a model on our own.
And to build on the foundation to develop and implement solutions.
Mr. Chen: Cost effective way.
Mr. Chen: In this context high quality and exclusive data assets are becoming increasingly significant.
Mr. Chen: With our extensive accumulation of high quality video content and rich community interaction data over the past decade, we are uniquely positioned to apply these AI innovations and fully unleash the potential of our community.
Mr. Chen: Building on the momentum of 2024, we look forward to driving even greater value for our users creators and stakeholders in the year ahead.
Mr. Chen: With that overview, let's look at our core pillars of content community and commercialization in more detail.
Mr. Chen: Beginning with content and community.
Mr. Chen: Growing with our users continues to fuel the natural expansion of our high quality content offerings.
Mr. Chen: In Q4, our average daily video views exceeded $4 8 billion up 14% year over year.
Mr. Chen: On top of our dominance in ACG related content. We have also built strong user mindshare in pen entertainment and Penn knowledge categories.
Mr. Chen: Meanwhile, as our users enter new life stages.
Mr. Chen: Our content offerings are naturally expanding into broader lifestyle and consumption related areas.
Mr. Chen: In 2020 full video views in automotive and baby and maternity grew by nearly 40% and over 70% year over year, respectively.
Mr. Chen: Content creators are also the cornerstone of our ecosystem.
Mr. Chen: In January we honored the top creators at our 2024.
Mr. Chen: <unk> power up award ceremony, recognizing their incredible talent and outstanding contributions to our community.
Mr. Chen: This year's honorees covering over 100 million followers and spanning diverse categories.
Mr. Chen: Known for their high quality and fulfilling content.
Mr. Chen: Over 90% of them have been creating content on daily billing for more than five years.
Mr. Chen: Notably 36 out of the top 100 content creators were first time winners.
Mr. Chen: Meanwhile, we remain committed to empowering content creators to earn more income through our diverse commercialization channels.
Mr. Chen: While pursuing their creative passion.
Mr. Chen: In 2020 for nearly $3 1 million content creators earned income on our platform.
Mr. Chen: Content creators total income through our advertising products and V. A S services increased by 21% year over year.
Mr. Chen: Notably our fan charging program has been a standout feature where creators total earnings increased by nearly 500% in 2024.
Mr. Chen: Turning to our community metrics our da use we're more engaged and spent an average of 99 minutes per day on our platform in the fourth quarter.
Mr. Chen: Paired with 95 minutes in the same period last year.
Mr. Chen: Monthly interactions grew by 10% year over year exceeding $15 5 billion.
Mr. Chen: By the end of the year, our official memberships increased by 12% to $258 million and their 12 month retention rate continued to be around 80%.
Mr. Chen: Moreover, we were thrilled to close 2024 with our new year's Eve Gala.
The most beautiful night of 2024.
Mr. Chen: The events once again proved our muster watch for young audiences.
Mr. Chen: Tracking over 230 million views.
Mr. Chen: In addition, during the recent Chinese new year holiday, we partnered with CCTV for the Spring Festival Gala.
Mr. Chen: As its exclusive bullet chat live broadcasting platform and content partners, we offered a unique and interactive viewing experience for this iconic most watched television event in China on.
Mr. Chen: On the day of the broadcast our da use increased by nearly 20% compared with Chinese New year's Eve in 2024.
Mr. Chen: These community events have reinforced our leadership.
Mr. Chen: Among China's young generation, while expanding our appeal to a broader user group.
Mr. Chen: Bringing more people to our vibrant community.
Mr. Chen: Now I'd like to talk about the progress of our commercialization and our business lines.
Mr. Chen: We made some exciting headway in our advertising business.
Mr. Chen: Our total AD revenues grew by 24% to RMB, two 4 billion for the fourth quarter and increased by 28% to RMB eight 2 billion for the full year, both on a year over year basis.
Mr. Chen: AD revenue per D. A you also increased by over 20% year over year for both Q4 and the full year of 2024.
Mr. Chen: We attribute our industry, leading add growth to the growing value of our user base as well as our improved ad efficiency.
Mr. Chen: In 2024.
Mr. Chen: We further opened our ecosystem to embrace more advertising opportunities, while enhancing our adding infrastructure optimizing ad matching algorithms and upgrading ad products.
Mr. Chen: These improvements fueled our strong and sustained advertising growth throughout the year, particularly in performance based AD revenues, which grew over 40% year over year for the full year.
Mr. Chen: Meanwhile, despite the challenging macro environment brand and native AD revenues also saw double digit year over year growth in 2024.
Mr. Chen: As we gained a deeper insights into our users' consumption preferences and patterns throughout the year more advertisers turned to be the ability to reach new consumers with better rois.
Mr. Chen: In 2024, the number of advertisers on our platform grew by over 30% year over year.
Mr. Chen: Games digital products and home appliances.
Mr. Chen: E Commerce Internet services in automotive, where the top five industry verticals in the fourth quarter.
Mr. Chen: With the recent macro stimulus policy.
Mr. Chen: <unk> played an important role in empowering <unk> and home appliance advertisers to strengthen their brand equity.
Mr. Chen: Ruins purchasing decisions and drive direct sales conversions.
Mr. Chen: Additionally, we are attracting more advertisers from emerging verticals.
Mr. Chen: In the fourth quarter revenues from transportation and education advertisers grew by over 100% year over year.
Mr. Chen: Looking ahead, we remain optimistic about our AD business growth as we are still in the early stages of unlocking the commercial value of our community.
Mr. Chen: In 2025, we will continue deploying our best resources to build a more efficient AD platform and add products.
Mr. Chen: Industry Wise, we will continue to explore opportunities in our leading game vertical.
Mr. Chen: Including the launch of Billy Billy Mini games and more.
Mr. Chen: We will also actively pursue wider and deeper partnerships with consumer brand advertisers connecting them with our high value user base.
Mr. Chen: Turning to our games business.
Mr. Chen: Our games revenues increased by 79% to RMB, one 8 billion in Q4, and 40% to RMB five 6 billion for 2024.
Mr. Chen: Both on a year over year basis.
The growth was driven by our hit strategy game Suncor molding finish out some old and the contribution from our Japanese ACG title.
Jo Sakai: Jo Sakai.
Mr. Chen: Fenton parade.
Mr. Chen: So page on quite hitting which we launched in overseas markets in November 2024.
Mr. Chen: And most sustained popularity gives us confidence in its long term potential.
Mr. Chen: D. A use remains stable across the first five game seasons through our focus on high quality gameplay, while carefully balancing commercialization. We will also enter into a six game season on February 20 <unk>.
Mr. Chen: As we expand its content and features we believe more young players will be drawn to the S. L genre.
Mr. Chen: We define venmo as one of our flagship evergreen titles.
Mr. Chen: The game's success is also a milestone in our strategy to diversified game genres.
Mr. Chen: Highlighting the strength of our gaming community.
Mr. Chen: We will actively explore opportunities like sand mode to better serve the new generation of gamers.
Mr. Chen: And finally, let's look at our <unk> business revenues from our <unk> business increased by 8% in Q4, two RMB three 1 billion and 11% for the full year to RMB 11 billion.
Mr. Chen: Both on a year over year basis during the year, both live broadcasting and the premium memberships sustained healthy growth with the gross margin for live broadcasting continuing to improve.
Mr. Chen: By the end of the year.
Mr. Chen: Our premium memberships reached $22 7 million with over 80% on annual subscriptions for auto renewal packages.
Mr. Chen: As we nurture a healthy live broadcasting ecosystem and a steady premium membership program, we continue to explore products and services uniquely suited to our community features.
Mr. Chen: Notably.
Mr. Chen: Our newly introduced <unk> charging program, which allows paid users to access exclusive high quality videos from subscribe creators.
Mr. Chen: Practice over 8 million participants in 2024.
Mr. Chen: Revenues from the fan charging program surged by over 400% year over year during the year, creating a new revenue stream for talented creators to monetize their content.
Mr. Chen: The programs early success also highlights our platform strength and our users strong willingness to pay for quality content.
Mr. Chen: In summary.
Mr. Chen: Building on our unique community and distinctive product offering we will continue to unlock its full commercial potential driving sustainable growth and increased profitability.
Mr. Chen: We are also excited to ride the new wave of AI advancements and further expand beyond what we could have previously imagined.
Above all our core mission remains unchanged to provide a space where creators and fans come together connect through shared passion and enjoy the content and experiences they logs.
Mr. Chen: With that I will turn the call over to Sam to share more financial details.
Sam: Sam Please go ahead.
Sam: Thank you Mr. Chen Hello, everyone. This is Sam.
Speaker Change: In the interest of time on today's call I will review, our fourth quarter highlights as Mr. Chen's remarks have touched on our full year results at a high level.
Speaker Change: We encourage you to refer to our press release issued earlier today for a closer look at our full year results.
Speaker Change: Throughout the year, we steadily improved our financial.
Speaker Change: Showing the elasticity of our business and our ability to generate profits amid growth.
Speaker Change: We can see the fruits of our efforts in our fourth quarter results showing continued revenue growth in our core high margin advertising and games business is.
Speaker Change: And margin expansion in our first full quarter of GAAP profitability.
Speaker Change: Total net revenues for the fourth quarter, while RMB seven 7 billion.
Speaker Change: Up 22% year over year.
Speaker Change: Our total revenue breakdown by revenue stream for Q4 was approximately 40%.
Speaker Change: A 1% advertising, 23% mobile games and the 6% following IP derivatives and other businesses.
Speaker Change: Our cost of revenues increased by 5% year over year to RMB four 9 billion in the fourth quarter, while gross profit rose, 68% year over year to RMB, two 8 billion.
Speaker Change: Our gross profit margin reached 36, 1% in Q4 up 10 percentage points from 26, 1% in the same period last year.
Speaker Change: Our strong gross profit and margin growth highlights the flexibility and scalability of our business model.
Speaker Change: Our total operating expenses was down 10% year over year to RMB, two 7 billion in the fourth quarter.
Speaker Change: Sales and marketing expenses increased by 10% year over year to RMB, one 2 billion, mainly due to increased marketing expenses fall are exclusively licensed games.
Speaker Change: G&A expenses were RMB $506 million flat year over year.
Speaker Change: R&D expenses were RMB $919 million.
Speaker Change: 31% year over year, mainly due to a one off game termination expense in Q4 2023.
Speaker Change: Our operating profit and net profit turned positive to RMB 126 million and RMB $89 million for the fourth quarter, respectively, marking a significant gains from year over year losses.
Speaker Change: Furthermore, our adjusted operating profit and adjusted net profit reached RMB $463 million and RMB $452 million respectively.
Speaker Change: Our adjusted net profit ratio in the fourth quarter was 6% compared with an adjusted net loss ratio of 9% in the same period a year ago.
Speaker Change: Cash flow wise, we generated RMB, one 4 billion in operating cash flow in the fourth quarter and RMB 6 billion for the full year.
Speaker Change: We also recorded RMB four 3 billion in free cash flow for the full year.
Speaker Change: As of December 31, 2024, we had cash and cash equivalents time deposits and short term investments of RMB $16 5 billion or USD, two 3 billion.
Speaker Change: In November 2020, before we completed the repurchase rights Alpha for our December 2026.
Speaker Change: After the completion of this transaction.
Speaker Change: Aggregate outstanding principal amount as of April 22006 notes 22007 knowledge and December 22006, Nos was USD $13 4 million.
Speaker Change: Lastly, we announced a share repurchase program of up to USD $200 million in November 2024 for 24 months period.
Speaker Change: The program underscores our commitment to enhancing shareholder returns and reaffirms our confidence in our business is cash flow generation.
Speaker Change: As of the end of the year, we had repurchased approximately 0.8 million under.
Speaker Change: Under this program for a total cost of USD $16 4 million.
Speaker Change: Thank you for your attention we would now like to open the call to your questions.
Speaker Change: Sir Please go ahead.
Thank you Dear participants as a reminder, if you wish to ask a question. Please press star one bond with telephone keypad and wait for a name to be announced chewy. Joe a question. Please press star one again.
Speaker Change: For the benefit of all participants on today's call. If you wish to ask a question to management in Chinese place immediately repeat your question in English the company will provide consecutive interpretation for the management statement during the Q&A session. Please note that the English interpretation is for the convenience purposes only.
Speaker Change: In case of any discrepancy managements statements in that original language will prevail.
Speaker Change: And now we're going to take our first question.
Speaker Change: And this comes from line of Lincoln, calling from Goldman Sachs. Your line is open. Please ask your question.
Speaker Change: Okay. Thanks.
Speaker Change: Thanks, and just over to Q&A.
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Speaker Change: So thank you management for taking my question.
Speaker Change: My question is it all kind of 25 softer we're reaching breakeven.
Speaker Change: Last year, how should we think about our overall strategy in 2025, and we are seeing.
Speaker Change: Closest opportunity for AI.
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Speaker Change: In terms of the non-GAAP that you got.
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Speaker Change: Our Sydney in the closer to putting lunch on a non-GAAP, yes, you want to look at the India such that she has learned how many you're going to need somebody that will be all about.
Speaker Change: So first of all I would like to highlight that achieving both GAAP and non-GAAP profitability with a goal that we set at around 2022.
Speaker Change: And looking and now we have very we are very glad that we have successfully reach.
Speaker Change: Head of schedule by end of 2024.
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Speaker Change: So we've got a woman de Jager Molly.
Speaker Change: Looking at 2025, Indeed is brand new chapter for Us and we will stick to the model that we have in the past wishes content plus <unk> now we have reached profitability and achieved a positive operating circle with our commercialization.
Speaker Change: Across our commercialization and will add another engine to that.
Speaker Change: Business model.
Speaker Change: <unk> sustainable healthy community growth will be our ultimate target and for.
Speaker Change: For this year, we'll stick to.
Speaker Change: Our mission to expand our margin increased profitability and maintain a healthy growth of our community.
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Linda: 15 years from a user perspective high quality content has been.
Linda: Playful positioning for visibility. This is also the same reason that our user has been using our platform for a very long time forward thinking about the strategy going forward high quality.
Linda: Content videos will be the center of all.
Linda: All of our planning and we believe the high quality content is something that can send economic cycles and serves as a gateway to the next era of medial Inc.
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Dan: First of all I'd like to touch upon high quality content plus pug's value.
Dan: I believe.
Dan: Have already entered an era, where there.
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Dan: There is sufficient supply of video content.
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Dan: And.
Dan: The future of video lighting, the quality not quantity and Billy Billy has a strong user mindshare.
Dan: High quality content, we have gathered the most talented content creators and the user who appreciate high quality content. The most.
Dan: We believe this is a common understanding across the majority of our video users and.
Dan: Being the high quality video content platform, we will become even more competitive.
Dan: Dan.
Dan: Positive advantaged position in the next era.
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Joe: And here I'll give an example.
Joe: One of our content creator whose name is shipping.
Joe: He has been producing a series of food documentaries.
Joe: Documentaries.
Joe: And as.
Joe: Documentary producer ourselves, we know the competitive advantage of our.
Joe: Content creator.
Joe: Which he already.
Joe: Those are tens of millions of Gn.
Joe: Monetizing it.
Speaker Change: Document mentoring content and from that example, you can tell that the users are very willing to pay for high quality content and there are some great commercial value lies within the high quality content.
Speaker Change: The audience at this juncture and Jonathan tissue Youll Janeiro hurdle.
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Speaker Change: Hot <unk> assortment trends at both on hopefully on so that you would want to consume.
Speaker Change: Yes.
Speaker Change: And the second point I would like to raise the high quality content plus our self developed IP assets. I think everyone has been very impressed last year by the success of flatness will call and this years.
Speaker Change: Blockbuster animated.
Speaker Change: And those two success example, further approved our argument that.
Speaker Change: Andre this trend of oversupply of video content or content in general the high quality content.
Speaker Change: Large R&D NAND and people.
Speaker Change: B.
Speaker Change: More inclined to look over the top content top quality content and Billy Ourself, we have build a strong portfolio.
Speaker Change: Self developed IP for example, our original Chinese anime more notes journey financial <unk>, we have been running for five consecutive quarters and have become a well established Chinese IP and particularly last year in 2020 for both its viewership.
Speaker Change: Paint membership.
Speaker Change: Curt highs within our community.
Speaker Change: We plan to continue to develop that type of high quality IP.
Speaker Change: These numbers included Saudi the.
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Speaker Change: What are you seeing your feedback on that.
Speaker Change: Both on maintenance of your Gulf of solar will take all the <unk> that's enough.
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Speaker Change: Okay.
Speaker Change: And if you told me that 10 years ago.
Speaker Change: Your beliefs highest viewership in paid membership and then they would be a topic surround it with our model to immortal type.
Speaker Change: Our topic themes I wouldn't be surprised but on the second thought this type of IP would have already had one large establish viewer.
Speaker Change: And similar to the journey to the west so that.
Speaker Change: Another supporting evidence that our users or user in general will appreciate high quality content and rewarded with much higher revenue.
Speaker Change: Believe that visibility.
Speaker Change: Platform in the center.
Speaker Change: The highest quality <unk> platform, there will be more and more high quality content.
Speaker Change: In March from our platform and in no time, we should be able to produce those.
Speaker Change: Very high quality and more widely known IP.
Speaker Change: <unk>.
Speaker Change: For the mass audience to see.
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Speaker Change: The T Angela.
Speaker Change: And the loss last point I would like to raise.
Speaker Change: The power of.
Speaker Change: The combination of AI plus high quality content.
Speaker Change: One was very excited about the inmarsat opportunity that brings starting from two years ago and that brings a lot of excitement and progress women at.
Speaker Change: At least sector and build value lies.
Speaker Change: Sure.
Speaker Change: Era of AI.
Speaker Change: We have the best.
Speaker Change: Chinese video content and.
Speaker Change: Data assets across the world and the involvement of the lost language model actually really need more high quality data assets to unleash its value.
Speaker Change: Is it really happens to be that place that continues to generate high quality video content and the real time user feedback towards stock content and for that perspective is the best combination with between <unk> and the future opportunity.
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Speaker Change: Sheila so youll see those if its ownership in July.
Speaker Change: Please go to Denver.
Speaker Change: You don't put option.
Speaker Change: Archie if you know as I've done with Joseph.
Speaker Change: As you can see how the Belgium.
Speaker Change: You may puncture.
Speaker Change: She background do you want to maintain that.
Lisa: Hi, Lisa.
Speaker Change: Well, it really needs to be done.
Lisa: The team came up with.
Lisa: Youll see some deep sea, because particularly in gotcha.
Speaker Change: Thomas you can touch on that one because he's gonna wages or geographies on Toyota face on total Italian issue why do you think you'll Geneva legal charges, Oh, what does that.
Speaker Change: Sure sure. It certainly puts all these yourself those houses it's your typical phase.
Speaker Change: 300 <unk>.
Speaker Change: She is already the highest resolution, which is the what kind of the way sometimes.
Speaker Change: We've always illness.
Speaker Change: English chunghwa.
Speaker Change: Sure.
Speaker Change: On top of the high quality video asset data asset.
Speaker Change: Another.
Speaker Change: A vantage that didn't really have an.
Speaker Change: Top of Davita content, we have large number of high quality comment and bullet chat, which generated by millions and millions of users who are which are just in sync with the video content itself and for that part is really our goal.
Speaker Change: <unk> for the data asset our AI to train and it continues to evolve with emergence.
Speaker Change: Open source and cost effective.
Speaker Change: To like deep seek and makes the bill.
Speaker Change: In a much better position to leverage that low cost model to further unleash and discovered the value lifespan.
Speaker Change: <unk> data assets and we have we have been doing a lot of test and the <unk>.
Speaker Change: Just a few weeks and months, there's a lot of surprise for us will be introduce more progress in the following quarters. All please stay tuned.
Speaker Change: We are very excited to share with you.
Speaker Change: Alright that concludes Mr. Chen's answer next question. Please.
Speaker Change: Thank you.
Speaker Change: And now we're going to take our next question.
Speaker Change: And this comes from the line of Felix Liu from UBS. Your line is open. Please ask your question.
Speaker Change: So plenty of time to take a look at it.
Speaker Change: Tom.
Speaker Change: No.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: So again I'll call. It your line is open.
Speaker Change: Yes.
Speaker Change: Throughout you don't need the truth.
Speaker Change: I just thought I'd ask it yet.
Tony: My name is Tony and torches you might have.
Speaker Change: I appreciate it.
Speaker Change: When you have a phone call.
Speaker Change: How do you get.
Speaker Change: Thank you management for taking my question and congratulations on the very strong advertising performance in 2024 could management share more color on the driver for the strong 2020 for advertisement.
Speaker Change: And it's why the advertising outlook for 2025.
Speaker Change: What has been observed to date from the advertiser sentiment et cetera, and what will be the key okay plain and buy.
Speaker Change: Spot advertising.
Speaker Change: In 2025, thank you.
Speaker Change: Okay.
Speaker Change: Hum like opinion as usual.
Speaker Change: Org opinion, the solar roof in Bahar.
Speaker Change: Toby.
Speaker Change: Josh Bob Sandler <unk> someone else too.
Speaker Change: Indeed that our app.
Speaker Change: <unk> is performing very well.
Speaker Change: Good and 2024 total AD revenue reached nearly eight eight.
Speaker Change: <unk> eight 2 billion RMB for the full year, marking a 28% year over year.
Growth that is among the highest gross growth rate across the industry.
Speaker Change: So you don't go mouldy, the Sogou Guangzhou, Tony the solar can be summed up as whole a better solution.
Speaker Change: Yeah, Yeah with the mall do you do all of a sudden yes.
Speaker Change: Sheila.
Speaker Change: So you'd Hong Kong are you would you say.
Speaker Change: I don't know some glucose suitable do you do that the T cells.
Speaker Change: Notably our high margin performance based ads saw over 40% year over year growth.
Speaker Change: That's also driving a significant improvement in our overall gross margin for the advertising business and that is a big plus to our overall gross margin on a group level as well.
Speaker Change: Oh, yeah with it themselves.
Speaker Change: Well it really seem to.
Speaker Change: Uh huh.
Speaker Change: Got it.
Speaker Change: There's a woman so with him.
Speaker Change: Endeavoured with us in just one month.
Speaker Change: So Josh are you there you go.
Speaker Change: We are holding the ironwood will tell it seems really nicely.
Speaker Change: So youll generic pardon me Im sure Youll go poorly singer them. So we can show that.
Speaker Change: What else you can carry on women and children's whaler are you sure you.
He will try to come out over time, where you got people that you've got one colleague if you like.
Speaker Change: The success the reason that drive.
Speaker Change: Our advertising revenue comes from two uniqueness that visibly pause one process one as the high quality user base and secondly is that we have strong lion's share of our strong content offering in terms of high quality content. Those two reasons are the fund.
Speaker Change: Mental drivers for those advertisers.
Speaker Change: To put ads on vividly popular.
Just a woman.
Speaker Change: Conveniently if at all.
Speaker Change: Oh sure sure.
Speaker Change: So you got Joseph.
Speaker Change: Okay shall basis, you'll find me it causes a lot of the union silicone hydro or whichever you sure.
Speaker Change: Sometimes you go to me all of these are great, but well move now to fund the Joe Douglas.
Speaker Change: It's not even in Georgia.
Sure.
Speaker Change: Go through when you're entering a golden looking that the Ireland piece.
Speaker Change: <unk> seen them go in telling you in children.
Speaker Change: Sure.
Speaker Change: Sure P J.
Speaker Change: In 'twenty 'twenty four.
Speaker Change: Our users average age reached our 25 years old a stage of life, where consumer demand grows rapidly. This makes <unk>. The most ideal effective platform for advertisers to advertisers to engage with young consumers based on our communication with very.
Speaker Change: Advertisers it.
Speaker Change: It's been a consensus that it.
Speaker Change: <unk> is a perfect platform to help connect and communicate with the young generation is.
Speaker Change: Also a very effective platform to influence young users purchasing decisions.
Our neuroscience women's that earnings accretion.
Speaker Change: Some of you kind of put it on there yes, it should rollout phase one portfolio you got from Goldman Sachs.
Speaker Change: Sure that European hydrocarbons in only one because you kind of are suddenly element be gender won't go to the food at home beaten down Youre talking about essentially the whole that whole funds on their well known to you. The tusa I hope that when they do show you sounded bullish on that.
Speaker Change: Hi.
Speaker Change: Toyoda, so our unions, yet and I'll take the Fujitsu fab.
Speaker Change: <unk>.
Speaker Change: And I also attribute our success to our continuous improvement to our one horizontal and vertical is the commercialization strategy.
Speaker Change: Regarding to the E. One horizontal that we first to our infrastructure and our App product abilities first of all overall that in 2024, the number of advertisers grow over 30%.
Speaker Change: Year over year, we are attracting more advertiser across all <unk>.
Speaker Change: Industry to come to invest on our platform and also <unk>.
Speaker Change: Proved our app product to attract more AD budget from different Advertiser for example.
Speaker Change: Now in Q4 over 65% of native advertisers will also purchase the content promotion products on our platform.
Speaker Change: That ratio with 50% a year ago.
Speaker Change: Oh sure Yeah, sure, we'll mention that strategic.
Speaker Change: Hi father did you say that you're going to do for sort of you got to go up going also with high quality.
Speaker Change: I'm Gonna muscles Hydro go home.
Speaker Change: Yeah sure you'll warm in Chicago.
Speaker Change: I've gone through time.
Speaker Change: One call it seemed like it was a chance to talk a little bit I'm, just curious to hear a pathological youll walk for me in Belgium.
Speaker Change: And do you do with them in the shelf Walsh Beach, which handle.
Speaker Change: And Moreover, I played a very important role in helping to drive the.
Speaker Change: The efficiencies are.
Speaker Change: With our AI tools that we are healthy our advertiser to improve mature creation efficiencies and overall click through rate currently at.
Speaker Change: Dissipated and over 10% of AD material creation.
Speaker Change: Regarding to cover certain titles.
Speaker Change: For that part we saw a very.
Speaker Change: Significant improvement in the conversion rate.
Speaker Change: Well, that's really hard to do.
Speaker Change: As a woman chances are you're going to.
Speaker Change: You all should be done on the ultrasound yeah sure.
Speaker Change: Going to Portugal.
Speaker Change: Yeah, Sheila can do with it.
Speaker Change: Oh cool.
It was orders or maybe Youll see youll see centric beach under you go tusa.
Speaker Change: But she doesn't sound like you got to go you'll you'll show the true.
Speaker Change: Well then that's how you make a.
Speaker Change: Cool and then of course you do.
Speaker Change: You'll see that there's something that you saw on the yugo.
Speaker Change: Well I'm not sure that's finish if you hold a lock on the door. She is in the cellular Sheila you look although you said.
Speaker Change: Well.
Speaker Change: That's something to push a piece under the Hugo.
Speaker Change: So in the future just from diesel.
Speaker Change: You'll recall the fabricators hold your Cheetah silicone hydrogel.
Speaker Change: Sure you caught that genius with tissue Chantal you got you got you got.
Speaker Change: Sometimes that you could help me.
Speaker Change: And <unk>.
Speaker Change: Let's touch based on the <unk>.
Speaker Change: 30, Kos strategies in 2024 favorably continues to secure more AD budget from key industry, while also attracting new advertisers from in margin sectors for the key industries such as games.
Speaker Change: In 2024, while solid defy our new game open beta testing budget. We also continue to gain more shares from mini games by J D.
Speaker Change: And recently, we launched BT to Rimini games program, which has gained a lot of traction and show strong momentum among our advertisers and we believe that what will be one of the growth drivers for our for us to continue to gain more share within that.
Speaker Change: Thanks Al.
Speaker Change: Your typing sector.
Speaker Change: The thing is I don't know.
Speaker Change: Sure.
Speaker Change: Sure sure.
Speaker Change: So if.
Speaker Change: So even though women egencia.
Speaker Change: It was really the hydro good ideas.
Speaker Change: You guys that they'll go unless you see the scenario that you go close to that in Eagle opinion essentially the.
Speaker Change: Oh, well then the chunky, Jim Lee that won't be the ones who.
Speaker Change: Archie how them away.
Speaker Change: Thanks, Sheila Sheila could you just hold them.
Speaker Change: Sure.
Speaker Change: You can see that until the Fuji.
Speaker Change: And secondly, R&R e-commerce sectors.
Speaker Change: In 2024 week on week.
Speaker Change: We remain committed to the open loop strategy.
Speaker Change: Strengthening our partnership with all the major e-commerce platforms in the past double 11 shopping festival.
<unk> increased by over 150% year over year, and <unk> bought over brought over 50% new consumers to the merchant for all participating in industries that ratio is very valuable under this.
Speaker Change: Intensive competitive environment within the e-commerce industry.
Speaker Change: So its that'd be real Sumatra, Avia, you mean into an initial phase two months later you go shelf either you official publishers, who don't really know.
Michael: Michael opinion, he thought that I should say.
Michael: Pirates Ooh boy, you're allowed to go jogging shellfish issue so I'm okay.
Michael: Uhm.
Michael: This was what does the future Joshua neither seen yet.
Luca Savi on <unk> or the Apple tier doesn't legally woman's arching inclusive so much avia, Guangdong Fujian, let's say door that you got from that.
Michael: Another example would be in the digital progress in home appliances sectors.
Speaker Change: As people know in that Jan just the young users have very strong needs for digital products and as the average age of our user intent 25.
Speaker Change: <unk> also growing demand for home appliances, as well plus with the national subsidy stimulation that in home appliance sectors. We saw a very strong growth and the digital products and home appliances sectors.
Speaker Change: Our country abuse, the highest incremental revenues in Q4 within our <expletive> sectors. It goes out what's out there this element that junior boxes, all of them Oh bango here with the teams and leagues your woman's that Google XOR holiday trends, what do you see is the thought that you can directly you've got you at all.
Speaker Change: The other thing with Bango, how you touch obviously you got to go through the year.
Speaker Change: Your line either.
Speaker Change: He doesn't know Hugo so either hydrogen woman.
Speaker Change: At Walnut choices, south axis or the truth. She runs would you that either particular teams only jamba with tissue.
Speaker Change: Obviously, you're not going to sort of the show.
Speaker Change: Just on the Oh, what do you think the RDR with Pizza and digital phone got hit with a fragile sure little Wonder if it's either total war since you know the army.
Speaker Change: Tissue pouch.
Speaker Change: You can use it even though you guys summed up.
Speaker Change: And we talked about what we have done in 2024, and we believe the advertising sector is a fully competitive market and requires requires real.
Speaker Change: <unk> competitive edge to deliver real results oriented gained shares if we are looking beyond I'm looking at 2025 and beyond what we need to do is continue to strengthen our advertising infrastructure and to drive efficiency.
Speaker Change: Overall optimistic and confident about the growth of our advertising business in 2025, and we expect to maintain above industry growth rate.
Speaker Change: That concludes Mr. Chen's answer next question. Please.
Speaker Change: Thank you.
Speaker Change: Now, we'll go and take our next question and it comes from the line of Wei Fang from Mizuho. Your line is open. Please ask your question.
Wei Fang: Oh, thank you.
Speaker Change: That's that one.
Speaker Change: <unk>.
Speaker Change: Hello, Operator, I think.
Speaker Change: Hum.
Speaker Change: Why is disconnected.
Speaker Change: Excuse me Mr. I may sound like you're still on the line.
Speaker Change: Sure.
Speaker Change: Well proceed would not next.
Speaker Change: <unk> just give us a moment.
Speaker Change: And the next question comes from the line of.
Speaker Change: Sure thing Shang from C. ICC. Your line is open please ask your question.
Speaker Change: Just your boddington Joshua team, though and then tissue guang, even leader not consume all the leads are suited towards you know since you're doing in Bath, all up online as soon as Nashville, No sanctions, Doug also anytime.
Speaker Change: Oh, Yeah, Yeah, John Thompson video switching you that you should see it.
Speaker Change: Thanks management for taking my question My question about margins.
<unk> gross profit margin reached 36 percentage in Q4.
Speaker Change: How do you view the change after the gross margin and that monitoring kind of stuff.
Speaker Change: And the in the mid to long term. Thank.
Speaker Change: Thank you.
Speaker Change: This is Sam central shouting I went to the your question Oh profitability was mainly driven by gross profit and the gross profit margin expansion, which was healthy and a sustainable.
Speaker Change: Q4, our gross margin reached a record high of 36%, making 10th 10th consecutive quarters of improvement.
Speaker Change: The key contributors to this improvement.
Speaker Change: Through the variety of shelf high margin gaming.
Speaker Change: Advertising revenues.
Speaker Change: Then I'll come to build over half of our total revenue account for 54% of <unk>.
Speaker Change: 4% of total revenue in Q4.
Speaker Change: In our fixed life cost, including content staff silver at that was caught further declines at their preparation.
Speaker Change: Option of the revenue from 25% in Q1 to 70% in Q4, and we expect the growth of our revenue will continue driving the steady margin growth gross margin expansion in 2025 over the long term. We are confident that gross margin will reach 40% to four default 40.
Speaker Change: 5% unexpected side, our operating expenses as a percentage of total revenues declined 36% to suggest a percent in 'twenty to 'twenty four and you have more room to further reduction in the future.
Speaker Change: <unk> already achieved 6% operating profit non-GAAP basis in Q4 in the long run our operating profit margin target remains 15% to 20%.
Speaker Change: Final question.
Speaker Change: Operator next question please.
Speaker Change: Thank you.
Speaker Change: The next question comes from the line of Lei Zhang from Bank of America.
Lei Zhang: Oh, Hi, I had two or 19 Gama.
Speaker Change: Stacey.
Speaker Change: Oh yeah.
Speaker Change: Is that women don't go out.
Speaker Change: The required notice there are some.
Speaker Change: Some older Macquarie I familiar it Oh, my gosh now or do you think you would see more then they can go down.
Speaker Change: And it's that Washington, Ohio sounds like why didn't pencil Salamanca hold are you go through them again, I always see that something that you can call them back this year.
Speaker Change: Oh I thought that she answered.
Speaker Change: With assembled as a rule of thumb should open doors also to assemble it sitting the pleasingly all available Bellshill chunk, telling me you Tahira, we'll get under the old tools.
Speaker Change: Oh sure Yeah, there you go.
Speaker Change: Yeah, I wouldn't think that you got I mean, Joe cheap cigarettes. She says Oh my gosh. It was pretty neat goes I'm open to doing so there you go timber nicos <unk> assembled shampoo goes idea that you've got scale shallow cut just for you guys as well.
Speaker Change: Hi.
Speaker Change: I don't know what it doesn't mean, you always have to hold him in such and such as that.
Speaker Change: You don't call the ultra Egypt, rather deal with it.
Speaker Change: So typically.
Speaker Change: Those are a function of the Hollywood Elliot.
Speaker Change: US the top priority for some though as long term operation as I discussed in the previous quarter.
Speaker Change: <unk>.
Speaker Change: We are the target lifecycle for this game will be obese five years and based on the performance of the first five seasons, we thank the team and the game has meet that requirement and the game has consistently consistently rank among the industry's best.
Speaker Change: Terms of user engagement and retention and the revenue generation see what you can actually see it seems all at all just all of them do go thermal.
Speaker Change: NATO conscientious where you got holiday you go <unk>, you would think that you got being.
Speaker Change: Being Jojo you want me I know, what you mean, neither or something.
Speaker Change: Youll say, Oh Gee the ones yeah.
Speaker Change: But since Youre, so Hugo cleaves without challenges, though neither Archie I thought a woman that policing the time people don't go to liquidate those are true.
Speaker Change: We're going to fund either clauses or well now assembled towards when you go no go down you'll who was a law that you go you'll see it.
Speaker Change: That's why I feel quite confident for the next five years assigned mall will continue to contribute steady performance and we are also confident that because <unk> by its nature has a longer lifecycle the.
Speaker Change: Target that night.
Speaker Change: Spring two the team is that we're hoping to make some more a game that.
Speaker Change: Layer can play for lifelong time.
Speaker Change: So really the hydro.
Speaker Change: Could you kind of remove certain.
Speaker Change: Neighbours here.
Speaker Change: Hi for diesel woman Hydro number.
Speaker Change: Pound on the Tianjin.
Speaker Change: And that's why we win.
Speaker Change: Whenever there's a new game season, the game will be back on the top grossing chart at least top 10 grossing chart.
Speaker Change: The legal challenge, giving you either should be generally yes to her woman Youll talk to anything that you're seeing is you'll need to talk to you mean doesn't illegal junior.
Speaker Change: What are the legal efforts you or I mean, do you mean, Julien you hold the R&R.
Speaker Change: I don't see it yet got waste, whether you can be summed up a bulk home and then it'll be lousy element that you bought.
Speaker Change: I'm, an individual well can you kind of don't shoot over there you got new convenient.
Speaker Change: The hydro launch homebuilder, so it'll help.
Speaker Change: Well there you go about venmo, Fortunately Yugo Telecom Deutsche Bank.
Speaker Change: And the reason why we are very confident that we have the determination and also experience and running a lot long lifecycle game for example F. G. L. After nine years at its launch we still see a double digit revenue growth for this game another.
Speaker Change: Our game is your language is celebrating its eighth year anniversary, we continue to see that overall crossing improving year over year. That's why we're very confident and also determined to make some more long lasting a long lifecycle game too.
Speaker Change: The.
To show me, Okay, Yeah, we're kind of somewhat hydro quite she oversees or even at all.
Speaker Change: So it sounds and I was saying that.
Speaker Change: Yeah, Mike I hope Nagel fit until shooting neither one yeah, I think what youll see the T and that you can find quick Oh Gee that's what.
Speaker Change: They told me is a portfolio that's why.
Speaker Change: That's the way you'll see that trend that you got tons of anymore. So we will send you another phone equivalents should see those that she's not here you're jumping to put on that he or she should Saudi ago, you'll have to apologize I hope to go to Omar Saad at home, who Apache somewhat to do with AG.
Speaker Change: So you're dealing with as you would email.
Speaker Change: Kudos to the door.
Speaker Change: Okay children. She went out at Eagle felt quite a hole that you got your thought as you make a.
Speaker Change: I think you said it should be it was or maybe I said it was in that it was in the chancellor sitting up here for how could you tend to think that.
Speaker Change: She doesn't like some guys are that you will see that you got to figure out what legal choosy.
Speaker Change: And because <unk> is also on the other hand, our new game and we.
Speaker Change: We emphasize and very care about how with what our players are saying, we continue investing to the player feedback on gaming experiences and mechanism and actively club collaborating the game developer to incorporate these insights and feedback and just the gain.
Speaker Change: Accordingly for example in the gang season upcoming games season, six on February 22nd.
Speaker Change: A lot of updates and improvement and made according to the user feedback for example, we'll be launching a new map and new battle strategies, and new skin system and also bring a new weapon system to enhance overall gameplay.
Speaker Change: So actually the whole women's when she has that UK sits you show it to you I'm allergic to Luisa.
Speaker Change: Well, the junior and senior to the JD Edwards Julian team doesn't even besides warm await placeholder you got easier.
Speaker Change: As you May remember, particularly sure maybe go through some DRA ago, you'll see that you're going to need or we don't want that to the central.
Speaker Change: That's all for me, which is if you don't shoot me if that's all right.
Speaker Change: And we're also preparing for the major update for this June wishes going to be the one year anniversary for us on mall, we are looking to bring a lot of significant updates to increase the game play and improve the overall game make serious for a fourth time mode too.
Speaker Change: Youll see those are the main uncle Walter if I suddenly you've got somehow will continue you will see the shoots towards the door.
Speaker Change: And how does it go longer I don't believe she yet T endologix assembled but youll see youll see <expletive> Chancellorsville, unless there's something similar.
Speaker Change: <unk> gotten through that then I'll tell you nowhere assemble the whole junior noble who lose your son's yeah, daughter, He's a particular challenging them to do that.
Speaker Change: Multi platforms expansion will also be one of the strategy for this game. This year last Q4, we have launched the game on the PC portal and this year, we're looking to bringing this amazing gaming sphere as to multiple platforms multiple scenarios to attract more users to enjoy that.
Speaker Change: I'm a woman somebody on the Zohar quite sure we'll not neither quickly who fancied one that you.
Speaker Change: It took about normal could be equally true choice years ago guys al.
Speaker Change: When are you going to add I think the.
Speaker Change: You got plenty of with homologous use refined meager pathology of anti U.
Linda: Linda Susan that you go Yoshi bagel for a week or so.
Linda: Neither well mcquay, yeah, so quite some true truthful.
Linda: Some people in D C.
Linda: When did you guys say Archie.
Linda: For the second half of this year the oversee launch will be one of the most.
Important paths for the fund mall.
Linda: Right now we're focused on the development of their traditional Chinese version of funnel ought to better serve the overseas players will refine the game experience adjust the gaming ecosystem designed to better fit to different countries gamers preference says we're also.
Linda: Hoping to make some mall.
Our favorite S. LG strategy game for Jan play our young players overseas.
Linda: Okay.
Linda: That concludes Mr. Chen's question and answer session and we can move to one last question. Operator. Please go ahead, yes of course, thank you so much.
Speaker Change: And now we're going to take up a last question for today and it comes from the line of Wei Fang from Mizuho. Your line is open Pease ask your question.
Wei Fang: Thank you for screen, maybe she said, we only but Glenn you kind of a peak title.
Speaker Change: So we don't want to the army.
Q1 <unk>.
Speaker Change: The <unk> that would be kind of pain relief on the OPM Ichikawa NYSE bitumen.
Speaker Change: Secondly, yes.
Speaker Change: Yes, yes, well hook up until that date come Asia now looking ahead for 2025.
Speaker Change: Can you share your thoughts on how to further expand your user base.
Speaker Change: Okay. Hans your brand awareness and also wondering if you could how come in more on the results from your partnership with CCTV and you got that thank you.
Speaker Change: And where does she onshore to wonder who is all about hotel Atlas is all we do.
Speaker Change:
Speaker Change: She called out one of the legal P values.
Speaker Change: We will continue this is also going to need youngsters don't pass it all through my legal hurdle.
Speaker Change: Womens home Wheeler neighborhood surrender without them, which you're booking that torture, though don't tell you the Pisa in case of a ton of it.
Speaker Change: I'll touch about approaches lasagna until 113 times.
Speaker Change: Those technologies out at home in Seattle.
Hugo Valeant: Hugo Valeant, Oklahoma.
Speaker Change: Firstly I'll talk about the partnership with the Spring Festival Gala. This year for the very first time, we partner with CCTV Spring Festival Gala as it is.
Speaker Change: Exclusive bullet chat live streaming platform. Other thing time CCTV also opened up official Spring Festival Gala account.
Speaker Change: At least bring users the highlights from the past 48, 40 42 years.
Speaker Change: History, and our users are welcoming this content with great enthusiasm.
Speaker Change: So as you put it all together.
Speaker Change: Carlos This is linear in there going forward does it only go maybe that's one type of course, she is still shining through either to the.
Speaker Change: Sawyer that you'll see with them they don't boson, though these angelo Noah.
Speaker Change: Telling you and she in Guangdong, then moved to cancel on water.
Speaker Change: Glad to hear it all the time that doesn't do it seemed to have hit the I think the key incentives or feet on the home.
Speaker Change: That's a 40 year, so I've been watching spring Festival gala for 40 years.
Speaker Change: Find out there's going to be new chemistry compare the high quality content in the past with the young generations feedback to a bullet chat and commentary.
Speaker Change: It's really sparkles, new content and new experiences.
Speaker Change: She's a tremendous ego.
Speaker Change: Or maybe a touch of THAAD, all a woman needs to her.
Speaker Change: Total you could see a lot of those and let you go I think it wont be all the order shortly.
Speaker Change: Even until sure meager twitchy dunked, yeah, well mature.
Speaker Change: For two months I think what's your board as a whole and the beach under Diego-garcia Sushi H M. B. She got about gosh, It's all EBITDA Youll go you're looking the Hugo boss, So looking how to Diego caught up I'm Joshua she'll continue to chug along.
Speaker Change: And I'll talk about some of the results from this project first of all I would say.
Speaker Change: Through this spring Festival Gala project, we have achieved various target first of all on the user front on Chinese new years Eve busy busy overall D. You increase by 20% year over year compared to the new year's Eve in 2024.
Speaker Change: <unk> as a platform with over 1 million D. Eight you one single project can bring 20% odd.
Speaker Change: Yeah, you increase that's amazing result.
Speaker Change: There are hundreds of you're almost done with your baughman join me if I didn't sound more choices should be done what could hit either you go you won't believe it seems that the two months would suggest.
Speaker Change: Food and recall either tortured would've done.
Speaker Change: Uh huh.
Speaker Change: With high Scotia, Wheeler sneak a last one.
Speaker Change: All of them or Jose like be down kind of in China.
Speaker Change: That should work.
Speaker Change: Second achievement as that we find fully chats.
Speaker Change: Replaceable part of daily beliefs user experience.
Speaker Change: It's attracting a lot of user to come specifically for the unique bullet chat experience, while watching spring Festival gala during the live stream total bullet chatting exceeded $100 million does.
Speaker Change: Does that answer.
Speaker Change: He's untouched kisses her face and shook letters from the ultra nature.
Hugo Valeant: To them, we used for Hugo user Chip you go you collateral.
Speaker Change: So a bunch of all eligible to tell the story.
Hugo Valeant: The way it goes sometimes can only be done negotiating on what are you kind of just the.
Speaker Change: So she is shipping salmon.
Hugo Valeant: Some will have holiday time to do that.
Speaker Change: Total whaler Leigh Savo keen look hopefully to take the therapy tangible.
Speaker Change: They got cut Vega Truvada, David Tarantino to the shrinking dark.
Speaker Change: He is with constant hydrants.
Speaker Change: I think our people are so you don't have those or maybe go to that you said you don't want that sort of do it all or you got negotiating is even though you thought you got.
Speaker Change: You got you got you got Jaguar dealership.
Speaker Change: So clearly comes at Cummins in the neighborhood of a child has a whole new.
Speaker Change: Another point is visibility is well positioned to capture a highest quality content on the national White space.
Speaker Change: Because.
Speaker Change: By itself Spring Festival Gala is a high quality and unique content beyond live broadcasting our user will come.
Speaker Change: To watch or to send bullet chat and commentary.
Speaker Change: Literally two game exclusive and unique experience and the success of it.
Speaker Change: This partnership has further solid Fi our judgment on do they believe positioning to host national wide content and national wide audiences.
Speaker Change: The medical Science liaison Azure Satya talking thoughts how do you think your business how does the book in both Hungary literally trying to just a touch.
Speaker Change: Sure sure Tobey I should go so goes from the hook up I know you got you got you got you can narrow, particularly it should be done that you go through sort of yours or do.
Speaker Change: You mean, two months actually the both hinder you got your vornado.
Speaker Change: The adoption of social media, so we can see through them again.
Speaker Change: Yeah, just a woman should what optionality, but you know who seems those are totally sugar no woman it seemed that you see.
Speaker Change: Could he knows things to share with you.
Speaker Change: As a woman in San Diego.
Speaker Change: People, telling me youll share that Wheeler, which hit us.
Speaker Change: And our multi screen multi scenario strategy and positioning has showed visibility unique advantage in family viewing pet settings. During this spring festivals and especially for new year's Eve Gala wishes of high definition horizontal format video content.
Speaker Change: It's very well suited for the big screen viewing as a result.
Speaker Change: OTT user growth exceeded our expectation during the partnership and further reinforce our leadership and user mindshare in the living room scenario two bits.
Daniel: Thank you Daniel.
Daniel: You didn't kind of added or two nanometer or you go.
Daniel: Jim why it was so good or 'twenty you humble digital good heart's user should be trying to get into all the usual posture.
Daniel: She opinions either so a whole woman though.
Daniel: Oh, neither too familiar should throw away a lot you're going to need to be done for Julie neither only the whole Charlottesville, what al Wheeler turnaround that you can see how would you be with your more typical gym, which help them. Both on the honest truth is that although we didn't lose our tissue.
Daniel: You bet Pasha, Sandler Borgwarner and told Walsh.
Daniel: She goes on holiday Yugo.
Daniel: Touch on I mean look Zen.
Daniel: Per cube.
Daniel: It's all the usual answer who shoots without conducting either you go evenly.
Daniel: And another success examples would be one of the program that we showed during the news it's Carla is.
Daniel: Billy self produced performance training home mall, which become a phenomenal show on the new year's Gala that is original song produced.
Daniel: For our own show back in 'twenty, one 2017, and we made it and put it all in the new year.
Daniel: You've got off stage.
Daniel: Over 560 million views across platform topped 183 trending list.
Daniel: And surpass tons of impressions. The success of the show also proves that they not only understand young people and also proved our ability to produce high quality nationally loved content on a wider stage.
Speaker Change: Geez, how old you, let's say, if we're going through and headroom under hoods Wuxi. So if you go onto a lunar causal.
Daniel: B zone.
Daniel: Yeah.
Daniel: Okay, La <expletive> Troma puncture Nico tour somehow be gender equal Joe Colannino puts you do so either hydro for Archie RJ. So they need to know what really should be done.
Daniel: This of course will potentially going to go with them.
Daniel: Yeah, So seamlessly and pilots are you able to put yet Archie had something must be done could you say how hot that you chose your champions.
Daniel: Orleans once you go harvest when you believe in being the of course, the Doshi Baton Rouge, Louisiana.
Daniel: To summarize the partnership.
Daniel: The success of the.
Daniel: Program shows that <unk> can bring Jan generation to the national wide, New Youre seeing festival gala at the same time increased our user base.
Daniel: Further expanded believe name and also become they're integrated campaign with end up at Liberty organization on all the aspect is has been a very successful project.
Daniel: Just wondering with whom I just Philadelphia.
Daniel: Hello.
Daniel: Sure.
Daniel: There you go there you go some heightened somebody who cool cheers.
I mean, it's a lot of choices that you go out there.
Daniel: Neither.
Daniel: Uh huh.
Daniel: There you go.
Daniel: Caught all of them does he might exactly who you would see those older children Pingo <unk>.
Daniel: So you'll be able to go home occasion, a woman the mainly in the power patrol she quit asking how you're going to you caught me.
Daniel: What's your what are you with you there.
Speaker Change: So Joe Creed.
Daniel: She seemed to me to see.
Daniel: If you thought you could get tied you'll say you got nothing go down at the table with some of you at Orlando.
Daniel: B G well.
Daniel: Dominion so it'll be as you see if you could tell me you can see the hotels without kind of children will not.
Daniel: 200 with all of this is that 'twenty I think the JV I told me if we could slow down the shirt, Oh Gee I thought that was kind of all the debt.
Daniel: She's John Latuda at home.
Daniel: Hold on the loyalty Jerome about Chico's outlet.
Daniel: G H.
Daniel: And to answer to a previous question how do we.
Daniel: Expand our influence to it.
Daniel: Due to the brand.
Daniel: Is that to do project like this in the past our most beautiful night.
Daniel: The new year's.
Daniel: Scala has been a very successful successful campaign to attract.
Daniel: Attract new users and improve our brand equities and we've done the similar things among the graduation season and for this year, we have try out new partnership doing Chinese new year.
Daniel: And we will continue to launch more Chinese new year's campaigns like this one going forward and this year. We're also looking to do our campaigns.
Daniel: Tailored targeted campaigns among summer vacations, we think this type of collaboration project will further help us too.
Daniel: Improve our brand equity improve our brand influences.
Daniel: The same time too.
Daniel: Facilitate our user growth strategy.
Daniel: That's all thank you turn.
Come back to you operator.
Speaker Change: Thank you so much and that concludes the question and answer session. Thank you once again for joining <unk> fourth quarter and fiscal year 2020, full financial results and business update conference call. Today. If you have any further questions. Please contact Juliet Yang. This is bill if it does that could you find out the Raptor Rps Center financial Communications.
Contact information for you in both China and the U S can be found on today's press release, Thank you and have a great day.
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