Q4 2024 Aurora Mobile Ltd Earnings Call
Okay.
Operator: Ladies and gentlemen, thank you for standing by and welcome to Aurora Mobile's fourth quarter and fiscal year 2020 for earnings conference call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.
Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to Aurora Mobile fourth quarter and fiscal year 'twenty 'twenty four earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be question and answer session.
Speaker Change: To answer questions. During the session you will need to press star one on your telephone you wouldn't hear an automated message advising Johannes raced to withdraw your question. Please press star one again, please be advised that today's conference is being recorded.
Rene Vanguestaine: I'd now like to hand the conference over to your host today, Rene Vanguestaine. Thank you. Please go ahead, sir.
I'd now like to hand, the conference over to your host today Renee back its thing. Thank you. Please go ahead Sir.
Rene Vanguestaine: Thank you, Amber.
Speaker Change: Yeah.
Thank you I'm Beth.
Rene Vanguestaine: 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 ir.jiguang.cm.
Speaker Change: Thank you Hello, everyone and thank you for joining us today.
Speaker Change: Oh right right My boss earnings release was distributed earlier today.
Speaker Change: They bought it on the IR website.
Speaker Change: Dog G Guang doxy.
Rene Vanguestaine: On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer, Mr. Shannan Bong, Chief Financial Officer, and Mr. Guanyang Chen, General Manager. Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows.
Speaker Change: On the call today are Mr weight on Guo Chairman and Chief Executive Officer.
Speaker Change: Mr Shan Nen Bong Chief Financial Officer.
Speaker Change: And Mr. Guan Yung Chen General manager.
Speaker Change: Following their prepared remarks, they will be available to answer your questions. During the Q&A session that follows.
Rene Vanguestaine: Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, is amended and is defined in the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements are based upon management's current expectations and current market and operating conditions, 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. Further information regarding these and other risks, uncertainties, and other factors are included in the company's filings with the U.S.
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 a mandate 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.
Which are difficult to predict and may cause the company's actual results performance or achievements.
Speaker Change: Differ materially from those in the forward looking statements.
Speaker Change: Further information regarding these and other risks uncertainties and other factors are included in the company's filings with the U S Securities and Exchange Commission.
Rene Vanguestaine: 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: 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.
Weidong Luo: With that, I'd like to turn the conference over to Mr. Luo. Please go ahead. Thanks Rene. Greetings to all.
Luo: With that I'd like to turn the conference over to Mr. Luo. Please go ahead.
Speaker Change: Yeah.
Hi, This is Ryan.
Speaker Change: Great.
Weidong Luo: Welcome to Aurora Mobile's 2024 4th Quarter Earnings Call. Before I comment on our Q4 results, I would like to remind everyone that the quarterly earnings data is available on our IR website. You may refer to the deck as we proceed with the call today. as we did in the past based on the Q4 numbers.
Speaker Change: Welcome to my boss.
Speaker Change: Fourth quarter on this call.
Speaker Change: Before I comment on our Q4 results.
Speaker Change: I told him we want that the holiday and if that is available on our website.
Speaker Change: You'll may reference with that how should we proceed with the call today.
Speaker Change: I believe in the past based on the Q4 numbers.
Weidong Luo: The appropriate description I would describe for the fourth quarter result is an incredible Q4 to close out a perfect 2024 for the following reasons Firstly, we record the full-year adjusted EBITDA positive for 2024 calendar year. This is our very first free profit. since the inception of Aurora Mobile 14 years ago. In this quarter, we recorded the six consecutive quarterly positive adjustment data. Secondly, the gross revenue this quarter of RMB19,3.2 million, achieving a remarkable 20% growth year-over-year. This was attributable to solid growth in all business lines within the group. Furtherly, our overseas business engagement continues its great growth momentum.
Speaker Change: The appropriate description I would describe for the fourth quarter result east.
Incredible Q4, tucows out appropriately.
For the following reasons.
Speaker Change: Firstly, when you record full year adjusted EBITDA prestige.
Speaker Change: For calendar year.
Speaker Change: He is our very first to free up profit.
Speaker Change: Since the inception of our rubber about 14 years ago.
Speaker Change: In this quarter.
Speaker Change: Real quick record six.
Speaker Change: Quarterly adjusted EBITDA Secondly of course, the revenue this quarter of Renminbi 19 flip on to me that are truly remarkable with 90% growth.
Speaker Change: Yeah.
Speaker Change: This was attributable to solid growth in all business lines within the group.
Speaker Change: Liberty all at once he basically engage that continue if great growth momentum.
Weidong Luo: Recorded a whopping 20% revenue growth on a year-over-year basis and newly signed contract value grew by RMB10 million in Q4 alone. Firstly, we record the net operating cash inflow of RMB19.5 million, yet another highest quarterly number in the past 17 quarters. bringing the cash balance close to RMB120 million as of 31st, 2024.
Speaker Change: Record whooping, 20% revenue growth.
Speaker Change: Basis.
Please contact Matt ill go by that maybe tell me that in Q4 alone.
Firstly, we have record net operating cash inflow of Renminbi 19, 5 million yeah, another highest quarterly number in the past 17 quarters.
Speaker Change: Bringing our cash balance close to renminbi, well enjoy times Iliad as all told me, but he first tried to sell it for.
Weidong Luo: Now let's move to the individual business performance. Our total Q4 group revenue has grown 20% year-over-year due by the very strong numbers from developer services. Within the group revenue, all revenues, namely developer subscription services, value-added services, and financial risk management all record their year-over-year and quarter-over-quarter revenue growth. Developer services revenue, which consists of subscription services and value-added services, increased by a strong 28% year-over-year and 24% quarter-over-quarter. Subscription revenue has been recorded in great numbers where it increased by 12% year-over-year and 6% quarter-over-quarter. Value-added services revenue grew by 142% year-over-year and 180% quarter-over-quarter. Our core business is subscription services revenue of RMB 54.7 million, recorded growth of 12% year-over-year and 6% quarter-over-quarter.
Speaker Change: Now, let's move to the individual basis.
Speaker Change: Our total Q4 revenue has grown year over year.
Speaker Change: By their very strong numbers from developer services, the pinnacle revenue or revenue.
Speaker Change: We developed this is Christian services.
And financial risk management, and a record year year over year and quarter over quarter revenue growth.
Speaker Change: You bet if I. So this is revenue which consists of subscription versus services a better idea.
Speaker Change: Okay.
Speaker Change: Increased by a strong 28% year over year, and 24% cutoff quarter subscription revenue cats being record in great numbers, well it increased by <unk> <unk> per se.
Speaker Change: A 6% quarter over quarter, better that'd be services revenue grow by larger 42% year over year.
Speaker Change: About 80% quarter over quarter.
Speaker Change: Our core business of Susquehanna. So business revenue of Renminbi 50 ballpark same immediate royalty growth of October said, Tobey I look I say, yes.
Weidong Luo: The year-over-year and quarter-over-quarter revenue growth was mainly driven by increase in both ARPU and customer number. Carrying on the great momentum we had in Q3, our subscription revenue broke the history record again well in this quarter. We have the highest quarterly revenue yet at $54.7 million. For subscription services, we can record year-over-year revenue growth in both the domestic and overseas markets. In particular, our engaged lab revenue grew close to 200% year-over-year. This was driven by the new customer acquisition in the overseas market. Since we venture overseas, we get one services contract from both Chinese companies venturing overseas and overseas companies domain claims in their respective countries.
Speaker Change: Quarter over quarter.
Quarter over quarter revenue growth was mainly driven by increase in both the AVO and customer number.
Speaker Change: On the great momentum in Q3, our subscription revenue broken history record well in this quarter, we have the highest quarterly revenue yet that.
Speaker Change: That may be.
Speaker Change: What I would say that meter.
Speaker Change: For subscription services, we had a record year over year.
Speaker Change: Revenue growth in both domestic and overseas markets in particular, our engaged to that revenue grow close to 200 per se year over year. He used to work driven by the new customer acquisition in the oversea market.
Do you think you'll ever see where he kept well services contract from bulk Chinese companies mentoring overseas I will see if companies don't make great.
Speaker Change: Yep representing respective countries.
Weidong Luo: With our exemplary suite of products and services, we are gaining more new customers every quarter.
Speaker Change: With all that.
Speaker Change: It's temporary.
Speaker Change: So basically we are getting more new customers every quarter. However.
Weidong Luo: However, this is just the tip of the iceberg. The total addressable market for overseas is huge. We will direct more resources, in terms of human capital and infrastructure, to capture more overseas market share. Based on the historical track record we have had, I am convinced our engaged businesses will have a very strong and long track of growth in the future.
Speaker Change: Jonathan I tip of iceberg.
Jonathan: Total addressable market is huge.
Yep: Yep, all resources on periscope in human capital and infrastructure to capture more obviously market share market share based on <unk> historical track record, we have happy holidays.
Yep: All indications are pacing as we all have a very strong it allows all shake up well in the future.
Weidong Luo: Next, I shall elaborate more on our EngageLab business this quarter. Firstly, the growth of EngageLab business has been important and instrumental for us to achieve great quarterly revenue number. Secondly, customer momentum has been impressive from day one. We converted more overseas customers in this quarter. The contracted customer number has reached 678, representing an impressive 32% secretion growth. Furtherly, the cumulative sound contract value of EngageLab has, in two consecutive quarters, grown by close to RMB 10 million quarter of quarter. As of December 31, 2024, the total sound contract value was RMB 48 million.
Yep: Next I will elaborate more on our engage that busy this quarter.
Yep: Firstly to either Grubhub engaged it obviously has been important and as Sherman instrumental for us to I feel great quarterly revenue number secondary customer momentum has been impressive from day, one when you come back in a more diverse.
Yep: The customers in this quarter the contract at customer number has reached 678, representing an impressive 42% sequential growth.
Yep: Furthering that can give us on the contract value of engage that has in two consecutive quarters grown by close to renminbi myriad cadre of quota.
Yep: As of December 31st I thought you said before.
Yep: For the total body.
Yep: Or what's the RMB 48 million.
Weidong Luo: Firstly, we continue to expand our footprint globally. By December 2024, our engaged app products and services are now sold to customers in more than 47 different countries and regions globally. Within subscription revenue, some of the notable new and renewable customers in this quarter include, but not limited to, China Telecom, Ping An, and China Merchandise Security, just to name a few. When you add their services revenue, it will remain $16.3 million, increased by 80%. of quarter of quarter and increased by 142% year over year. The sequential revenue spike was mainly due to the double 11 and double 12 online shopping fixed over in Q4, but was non-existent in Q3.
Yep: Fortunately, we continue to expand our footprint globally.
Yep: Ultimately for all engage with our products and services are now start to customers in more than 47 different countries outrageous globally.
Yep: Within subscription revenue some notable new and renewable customer wins this quarter include but not limited to China Telecom.
Yep: And China, China Securities Jasper battlefield.
Yep: But the services revenue, but there may be 16 parking meter increased by 88.
Yep: Eight 8%.
Yep: Quarter over quarter, eight increased by 142% year over year.
Yep: The sequential revenue despite what many of you are towards the double double.
Yep: But till now online shopping festival in Q4, but what like HSA and feel free.
Weidong Luo: This revenue growth trend in Q4 was within our expectations, but the magnitude of our growth was much better than what we had anticipated. A job well executed by our team to secure more ad spending from advertisers in the last queue of 2024.
Yep: Revenue growth in Q4, what we are thinking all expectations, but the magnitude maybe.
Yep: <unk> growth was much better than what we had anticipated.
Yep: Adult.
Yep: Al Qaeda particular, more appetite for advertisers and the largest cable providers like yourself.
Weidong Luo: Next, let me share with you my thoughts on how the recent advancement in AI will shape the landscape. The development of AI technology and overseas expansion has been Aurora Mobile's core strategy over the past two years. These strategies have already led to strong revenue growth at EngageLab and even accelerated the overall revenue growth of our entire group. We believe this momentum will continue and set the stage for new growth trajectory.
Yep: Let me share with you on my cost.
Yep: On the how the recent advancements in AI will shape the landscape.
Yep: The development of AI technology, and obviously expansion has been a robust cost strategy over the past two years.
Yep: These strategies have already led to strong revenue growth and he should have an event that's already take the overall revenue growth of our in House group.
Yep: Been able with decent momentum will continue to set the stage.
Jeffrey: Sure Jeffrey.
Weidong Luo: In the past, we can primarily provide the updates on our overseas expansion. Now, we would like to re-iterate our AI strategy to the market. Aurora Mobile remains committed to our AI first strategy and views AI as the most critical business driver for the future. We are now not only deeply integrating AI into the workflows of various departments, but also using it as a KPI in the BSC assessments for both the company and each employee. This ensures that technology implementation is closely aligned with the performance results. Our core products are fully integrated with advanced AI capabilities that enable various applications such as email editing, push notification, copywriting, and data analytics.
Jeffrey: In the past week primary provide the updates on Arista expansion.
Jeffrey: We would like to reiterate our AI strategy to the market.
Jeffrey: I remember a remains committed to our AI first strategy.
Jeffrey: We use AI at the most critical driver for the future.
Jeffrey: We are now.
Jeffrey: They integrate AI into their workflows over various departments, but also using <unk> as our kpis of the PSC US estimates for both the company and employee this issue.
Jeffrey: Implementation is closely aligned with the performance of results.
I'll call put us a pretty integrated AI.
Jeffrey: AI capabilities that enable various applications such as e-mail agitate push notification because they like it.
Jeffrey: Data analytics.
Weidong Luo: This AI-driven enhancement enables our customers to drive business innovations and improve operational efficiency. Over the past two years, we have continuously invested in the development of GPT-Bus.ai and enterprise-level AI agent platforms. By seamlessly embedding native AI agent technology into workflows, we are helping companies accelerate their transformation to an AI-first strategy. Over the past few quarters, we have seen rapid growth in subscription revenue for GPT-Bus.ai.
Jeffrey: This AI to everybody in the house.
Jeffrey: Our customers will drive innovation and improve operational efficiency.
Jeffrey: Over the past two years, we have continuously invested in the development opportunity at Barstool AI enterprise level AI Asia Pac one.
Jeffrey: By somebody a betting they could AI agent technology into <unk>, we are happy companies accelerating their transformation.
Jeffrey: I first strategy over the past few quarters, we have seen rapid growth in subscription revenue. Unfortunately, the foster AI.
Weidong Luo: the new era of industry. Revolution is just beginning. The enterprise application of AI is still in its earlier stage and we remain committed to increasing our investment in enterprise AI. We believe that our advanced enterprise customer base, diverse business scenarios, and rich data resources will be invaluable assets in this AI era.
Jeffrey: The new era of industry it up.
Jeffrey: <unk>.
Jeffrey: Robert Olson.
Jeffrey: Just forgive me.
Jeffrey: Yeah enterprise application of AI.
Jeffrey: It is early stage and we remain committed to increasing our investment in enterprise AI.
Jeffrey: We believe that our master enterprise enterprise customer base diverse diverse. Besides the scenarios are real estate high resources will be embed elbow assess in this AI era.
Shannan Bong: Let me pass the call over to Shannon, who will share more about the vertical application 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. Overall, vertical application had a good quarter, where revenue increased by 3% quarter over quarter and 1% year over year. And within vertical application, financial risk management recorded a 34% growth in revenue year over year and 4% growth quarter over quarter. The 34% year-over-year revenue growth was mainly due to a strong 24% growth in customer numbers and 8% ARPU growth.
Jeffrey: Let me pass the call over to Charlotte, who will share more about the batesville application.
Speaker Change: The aspect of our financial.
Speaker Change: For this quarter.
Jeffrey: Thanks, Chris.
Jeffrey: Sure.
Jeffrey: I'll go over the revenue for what they could application that includes financial risk management and market intelligence.
Jeffrey: Overall, but to go application had a good quarter, where revenue increased by 3% quarter over quarter and 1% year over year.
Jeffrey: And we didn't vertical application financial risk management and record at 34% growth in revenue year over year, and 4% growth quarter over quarter.
Jeffrey: The 34% year over year revenue growth was mainly due to a strong 24% growth in customers number and 8% ARPA growth.
Shannan Bong: We are very pleased with the progress made by this business. Over the past few quarters, the team has fine-tuned and upgraded the service and products. They are very well received by the market, plus the revenue growth we have seen. The customers that we have signed up already knew in Q4 include but not limited to Weizhong Bank, Fenqile, Zhongbang Bank and many other licensed credit and financial institutions throughout China.
Jeffrey: Yeah, we're pleased with the progress made by this business.
Jeffrey: The past few quarters, the team has fine tune and upgraded our service and products.
Jeffrey: Yes, very well received by the market plus the revenue growth we have seen.
Jeffrey: The customers that we have signed up all renew in Q4 include.
Jeffrey: Although limited to wait till Nihon <unk> John.
Jeffrey: From Buckingham and many other licensed credit and financial institutions.
Jeffrey: China.
Shannan Bong: And market intelligence revenue, on the other hand, decreased by 36% year-over-year and stayed flat. quarter over quarter due to the continuing weak market demand for Chinese APP data. And this result is within our expectation.
Jeffrey: And market intelligence revenue on the other hand decreased by 36% year over year and stay flat.
Jeffrey: Quarter over quarter due to the continued weak market demand for Chinese <unk> data and this result is we didn't or expectation.
Shannan Bong: Now let me go through some of the key expenses and balance sheet items. On to operating expenses, the Q4 OPEX was at 16.3 million RMB, representing a slight 1% decrease year-over-year and a 6% increase quarter-over-quarter. The majority of the increase was attributable to our sales and marketing department. The continued increases in revenue and cash collection in this quarter resulted in additional commission and expenses. These are all within our expectation.
Jeffrey: Now let me go through some of the key expenses and balance sheet items.
Jeffrey: Onto operating expenses the.
Jeffrey: Q4, Opex was at $16 3 million renminbi, representing a slight 1% decrease year over year, and a 6% increase quarter over quarter.
Jeffrey: The majority of the increase was attributable to our sales and marketing Department.
Jeffrey: Increases in revenue and cash collection in this quarter resulted in addition of commission and expenses.
Jeffrey: These are all within our expectation.
Shannan Bong: Overall, we are very pleased to see how OPEX has been trending in view of the revenue growth we have achieved.
Jeffrey: Overall, we are pleased to see how opex has been trending in view of the revenue growth we have achieved.
Shannan Bong: I will now go through the individual OPEX category. For R&D expenses, it decreased 10% year-over-year to RM24.3 million, mainly due to reduction in personnel costs, both the salary and share-based compensation, as we continue to optimise expenses that improve operational efficiency. Selling and marketing expenses increased by 11% year-over-year to RMB24.6 million, mainly due to the increase in sales commission and travelling expenses, in line with the revenue growth and cash collection recorded in this quarter. G&A expenses decreased by 6% year-over-year to RMB11.4 million, mainly due to reduction in personnel costs, both the salary and share-based compensation as a result of continued effort to manage...
Jeffrey: Well now go to the individual Opex category.
Jeffrey: For R&D expenses.
Jeffrey: <unk> decreased 10% year over year.
Jeffrey: To renminbi $24 3 million, mainly due to reduction in personnel costs, mostly salary and share based compensation as we continue to optimize that spend does that improve operational efficiency.
Jeffrey: Selling and marketing expenses increased by 11% to year over year to $24 6 million, mainly due to the increase in sales Commission and Preopening expenses in light of new growth and cash collection record it in this quarter.
Jeffrey: G&A expenses decreased by 6% year over year to let me be $11 4 million, mainly due to reduction in personnel costs, both the salary and share based compensation as a resolve continue effort to manage costs.
Shannan Bong: Next, I'll share three very important KPI that we closely monitor.
Jeffrey: Next I'll share three very important <unk> closely monitor.
Shannan Bong: For NetDollar Retention Rate, a commonly used KPI for a SaaS company, it stood at 95% for our core developer subscription business for the trailing 12-month period ended December 31st, 2024, and it was a good growth compared to 92% for the period ended September 30th, 2024. Secondly, another financial KPI for tracking the performance of SaaS companies is the total deferred revenue, which represents cash collected in advance from customers for future contract performance, which was at a record high of $147.1 million. and this is the 12th consecutive quarter where our deferred revenue balance has exceeded RM130 million.
Jeffrey: For net dollar retention rate.
When you use tpa for soft company is stood at 95% fall called developers subscription business for the trailing 12 months period ended December 31st 'twenty 'twenty four and <unk>.
Jeffrey: It was a good growth compared to 92% for the period ended September 30 of <unk>.
Jeffrey: Secondly, and other financial keep EIA for tracking the performance of soft company is total deferred revenue, which represents cash collected in advance from customers for future contract performance.
Jeffrey: Was at record high of $147 1 million renminbi.
Jeffrey: And this is the 12th consecutive quarter, where our deferred revenue balance has exceeded $130 million.
Shannan Bong: Thirdly, we continue to maintain a healthy AR turnover rate at 44 days.
Jeffrey: Thirdly, we continue to maintain a healthy alternative with these.
Shannan Bong: We continue to work hard to secure... more cash from our customers and at the same time mitigating the risk of bad and doubtful debt. and carry on the great momentum we have from Q3, we achieved great results on the cash flow in this quarter. Our team has done a great job in cash management in operating activities this quarter. For the quarter ended December 31st, 2024, we recorded net operating activities cash inflow of RM19.5 million, which was the highest level in the past year.
Jeffrey: At 44 days, we continue to work hard to secure.
Jeffrey: More cash from our customers and at the same time mitigating the risk of Bettendorf wood deaths.
Jeffrey: And Kerry on the great momentum we have from Q3.
Jeffrey: Great results on the cash flow in this quarter.
Jeffrey: Our team has done a great job in cash management in operating activities this quarter.
For the quarter ended December 31st NDA for <unk> record net operating activities cash inflow of <unk> $19 5 million mutual is the highest level in the past 17 quarters.
Shannan Bong: 17 quarters on to the balance sheet. Total assets were at RMB378 million as of December 31, 2004, and this includes cash and cash equivalent of RMB119.5 million, accounts receivable of RMB50.8 million. with prepayments and other current assets of $14.3 million.
Jeffrey: Onto the balance sheet.
Jeffrey: Total assets.
Jeffrey: <unk> seven 8 million as of December 31st integrate fall and this includes cash and cash equivalent of $119 5 million a.
Jeffrey: Accounts receivable of $50 8 million.
Jeffrey: The prepayments and other current assets of 14.3 million operating lease.
Shannan Bong: right-of-use assets of $17.1 million, fixed assets of $4.6 million, long-term assets of $113.5 million, goodwill of $37.8 million, intangible assets of $13.8 million resulting from the Sand Clock acquisition in March 2022. The total current liabilities were at $261.6 million, this includes short term loan of $3 million, accounts reservable of $32.7 million. current operating liabilities of $4.5 million, deferred revenue of $147.1 million accrued liabilities of $74.4 million.
Jeffrey: Right of use assets of $17 1 million fixed assets of $4 6 million long term assets of $113 5 million real of $37 8 million intangible assets of $13 8 million, resulting from the central acquisition in March and you don't need to.
Jeffrey: The total current liabilities were at $2 six $1 6 million. This include short term loan of $3 million.
Jeffrey: Accounts receivable of $32 7 million.
Jeffrey: Current operating liabilities of $4 5 million deferred revenue of $147 1 million.
Accrued liabilities of $74 4 million.
Shannan Bong: Actually, I would like to echo what Chris has said at the beginning of this call. Let me recap the description that he made, an incredible Q4 quarter to close out a perfect 2024. In this quarter, the total revenue grew strongly by 20%, reaching RMB93.2 million. This is a set of remarkable results when we compare to our peers and other listed companies in the SaaS space. Our core developer subscription services had a $54.7 million revenue, another first in history. Second, our Engage Lab product continues its great momentum. Revenue grew by close to 200% on a year-over-year basis.
Chris: And I would like to Echo what Chris has said at the beginning of this call.
Chris: To recap the description that he made an incredible Q4 quarter to close out a perfect 'twenty 'twenty four.
Chris: It is quarter. The total revenue grew strongly by 20%, reaching renminbi $93 2 million.
Chris: This is a set of remarkable results when we compare to our peers and other listed company in a SaaS base.
Chris: Our core developers subscription services had a $54 7 million revenue another foot in history.
Chris: Second our English net product continued its great momentum revenue grew by close to 2200% on a year over year basis.
Shannan Bong: and cumulative contract value increased by more than $10 million in Q4 alone. And third, we have the 6th consecutive quarter of positive adjusted IPTA and more importantly we achieved for the first time in history, full year adjusted IPTA profitable year. And fourth, we have a net operating cash inflow of $19.5 million quarter. With these impressive numbers that we have delivered across all financial metrics, it was a great quarter that we had, and it has been a great year of growth in our core business. I believe we have delivered a set of financials that current shareholders and investors will be pleased to receive.
Chris: And cumulative contract value increased by more than $10 million in Q4 alone.
Chris: And we have a sixth consecutive quarter of positive adjusted EBITDA and more importantly, we achieved for the first time in history full year adjusted EBITDA profit.
Chris: Yeah.
Chris: We have a net operating cash inflow of $19 5 million.
Chris: And we've just impressive numbers that we have to deliver across all financial metrics. He was a great quarters that we had.
Chris: And he has been a great year of growth in our core business and believe we have delivered a set of financials that current shareholders and investors.
Weidong Luo: Now let's turn to the business outlook. Starting from this quarter, we will start to provide revenue guidance on a quarterly basis. Based on the current available information, the company sees the Q1 2025 revenue guidance to be in the range of RM74 million to RM77.5 million, representing a strong 15-20% year-over-year growth compared to the same quarter in 2024.
Chris: Now, let's turn to the business outlook starting from this quarter, we will start to provide revenue guidance on a quarterly basis.
Chris: Based on the currently available information the company sees the Q1 'twenty 'twenty five revenue guidance to be in the range of <unk> 74 million to $77 5 million, representing a strong 15% to 20% year over year growth compared to the same quarter in 2024.
Weidong Luo: The worth outlook is based on the current market condition and reflects the company's current and preliminary estimate of the market and operating conditions and customer demands, which are all subject to change.
Chris: The growth outlook is based on the current market condition and reflects the company's current and preliminary estimate of the market and operating conditions and customer demand, which are all subject to change.
Weidong Luo: And lastly, before I conclude, I'll give a quick update on the share repurchase plan. In the quarter ended December 31st, 2024, we repurchased 33,000 ADS. Cumulatively, we have repurchased a total of 279,000 ADS since the start of our repurchase program.
Chris: And lastly, before I conclude I'll.
Chris: Give me a quick update on the share repurchase plan.
Chris: In the quarter ended December 31st pin you to any fall, we repurchased 33000.
Chris: Cumulatively, we have repurchased a total of 279000 eds.
Chris: Since the start of our repurchase program.
Rene Vanguestaine: And this concludes our prepared remarks. We are happy to take the questions now. Operator, please proceed. Thank you.
Chris: And this concludes our prepared remarks, we are happy to take your question now.
Speaker Change: Sir Please proceed.
Operator: We will now begin the question and answer session. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.
Chris: Yeah.
Chris: We will now begin the question and answer session.
Chris: As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced two which all your question. Please press star one again please.
Chris: Please standby, while we compile the Q&A roster.
William Chen: We will now take our first question from the line of William Chen from Speaker Capital. Please ask your question, William. Hello, management. Thank you for taking my question.
Chris: We will now take our first question from the line of William Chen from Speaker Capital. Please ask your question William.
William Chen: Hello, Hello management. Thank you for taking my question first.
William Chen: First, I want to congratulate the management for delivering such strong quarterly results. I think an incredible Q4 to close out a perfect 2024 is a perfect description for this quarter and for the year 2024 as a whole.
William Chen: First I want to congrats to the measurement to deliver such a strong codell results.
William Chen: I think.
William Chen: <unk> Q4, two clubs out Perm.
William Chen: 20th century Fox for ease.
William Chen: He is a perfect description for this quarter on a four year, so depending for out of home.
Weidong Luo: So my question for the management is to achieve such a good result, what measures or actions were taken by the management? Thank you. Thanks William.
William Chen: So my question for the management is.
William Chen: To achieve such a good result.
William Chen: What measures are actions taken by the management. Thank you.
Weidong Luo: Let me take the call. Yes, you are right to point out that Chris has reiterated that in Q4 it was an incredible year, incredible quarter for us that closed out the 2024 for a couple of reasons. Let me just recap. First, our revenue has grown strongly 20% year-over-year and our core developer service has broke through the 50 million mark.
William Chen: Thanks William.
William Chen: Now, let me take the call.
William Chen: You're right to point out that Chris.
William Chen: We reiterate that in Q4, he was an incredible year incredible quarter for us that close out that $10 84 for a couple of reasons, let me just recap.
William Chen: Our revenue has grown strongly than 30% year over year and our core developer service has broke through the 50 million more revenue in two consecutive quarters and of course, our overseas business continue is great momentum and revenue increased by close to 200% year over year.
Weidong Luo: Rene Vanguestaine, Christian Arnell, Aurora Mobile Ltd. And one important thing that I would like to bring out is the fact that this good result has been in the making. And we have been consistently delivering good results since Q3 of 2023, when we had our first of the Sixth Consecutive Quarters of Positive Adjusted IPTA. Therefore, I would say this is not a one-off event or fluke by any luck, and this is purely due to hard work, dedication and commitment from our team. And also, we have also restructured the group in terms of our strategy and our execution plan by more than two years ago.
William Chen: And we signed more than $10 million or close to 10 million new contract value in a single quarter.
William Chen: And of course, we all have been very diligent in our spending our money. So that's why the optimal level Opex and lastly, we have a six consecutive quarters of adjusted EBIDTA, bringing the full year.
William Chen: Oh positive adjusted EBITDA for 2024.
William Chen: And probably you appreciate there are many pieces to the puzzle.
William Chen: For us to have the great numbers.
William Chen: And one important thing that I'd like to bring up is the fact that this good result has been in the making.
William Chen: And we have been consistently delivering good results since Q3 of them Dmitry when we had our first.
After six consecutive quarters of positive adjusted EBITDA.
William Chen: Therefore, I will say this is not a one off event or flow or by any luck Andy was purely.
William Chen: Due to hard work dedication and commitment from our team.
William Chen: And also we have to restructure.
William Chen: We restructured the group in terms of our strategy and our execution plan by more than two years ago and during the time I think we are a bit the bullet bite.
Weidong Luo: And during the time, I think we have beat the bullet by doing a few things. One is we streamline the product and services that we offer in the market. We make tough decisions to cut the low margin business and cut the department and the headcount. And we redirect our resources and effort to serving global customers in the global market. And also make some resources allocation to our OECD expansion plan. So looking back, under Chris' leadership and management, we made the right decision. With a more focused service offering and serving global customers, we found the next growth driver in the business.
William Chen: Doing a few things one is we streamlined our product and services that we offer in the market.
William Chen: Tough decision to cut the low margin business and cut the department and the head count and we redirect our resources and effort to serving global customers.
William Chen: Global market and so it makes solid resources allocation to all we will see that submission plan.
William Chen: So looking back.
Under Chris' leadership, and our management it made the right decision because we're more focused service offering and serving global customers. We found our next growth driver in our business and.
Weidong Luo: And not only the global customers are bringing more revenue, their contracts are providing a healthy cash flow into the group. As we are still at the very beginning stage of overseas suspension, we truly believe the market is huge and we are able to continue the growth trajectory in the many years to come. Back to the question you have, I guess the short answer is we have taken many steps and measure over the past 12 to 18 months in order to achieve these great results. Any single one of them will not have the same impact. So it was a collective effort as a whole.
William Chen: And not only the global customers are bringing more revenue they have contracts that are providing a healthy cash flow into the group.
William Chen: And that's where that's due at the very beginning stage of overseas and as I mentioned, we truly believe the market is huge and we are able to continue the growth trajectory in the many years to come.
And back to the question you have I guess the short answer is yes.
William Chen: We have taken many steps and measure over the past 12 to 18 months in order to achieve these great results any single one of them. We don't have the same impact. So it was a collective effort as a whole.
Weidong Luo: We believe we are ready for the next phase of growth in the business and all the market signals we have received are also very promising in terms of future growth.
William Chen: And we believe we are ready for our next phase growth.
William Chen: And all the market Cigna, we have received also very promising in terms of future growth.
Weidong Luo: I hope this answers your question, William.
William Chen: I Hope this answer your question William.
William Chen: Thank you. Thank you for your answer. Thank you.
Speaker Change: Thank you. Thank you for your answer.
Operator: As a reminder, to ask a question, please press star 11 on your telephone.
William Chen: Thank you.
Speaker Change: As a reminder to ask a question. Please press star one on your telephone we will now take our next question from the line of Jackson from go long way Research. Please ask your question Jack.
Jack Sun: We will now take our next question from the line of Jack Sun from Galunhui Research.
Jack Sun: Please ask your question, Jack. Okay thanks. I got a question for management. Congratulations to management on achieving another very good quarter.
Speaker Change: Okay I got a question about management congratulations to management.
Jack Sun: One particular trend that I would like to do in the future is a growth of developer subscription revenue. It has a past R&D 15 million Revenue Mark in two consecutive quarters. I'd like to hear the management's point of view on how we should look at the trend going forward.
Speaker Change: And having a very good quarter, what particular trend that I would like to build it.
Speaker Change: It's up.
Speaker Change: Chris subscription revenue.
Speaker Change: Pat RMB 15.
Speaker Change: Revenue Mark in two consecutive quarters.
Speaker Change: Take care of the manager's point of view of how we should look at the trend going forward. Thanks.
Weidong Luo: Hi Jack, thanks for the question. You are right, subscription business has been the style of the business unit where it crosses 50 million mark in two consecutive quarters. Let me share with you why is that so. There are a couple of reasons. One, our customers, the developer service or the developer or the enterprise are in need of this service to help them to engage their users in an effective and cost efficient manner. So this demand has not changed. And the next is we have a suite of products that cater to their needs. And besides the traditional app push, we now offer web push, we offer email, Whatsapp, OTP and other communication channels.
Jeff: Hey, Hi, Jeff Thanks for the question you're right.
Jeff: Subscription business has been just followed the of our business unit.
Jeff: <unk> 50 million in two consecutive quarters, and let me share with you why is that so and there are a couple of reasons one our customers the developer service all while the developer or the enterprise are in need of this service to help them to engage users in an effective and cost efficient manner. So this demand has.
Jeff: Not change.
Jeff: And the next we have a suite of products that cater to their needs and.
Jeff: And besides the traditional push we offer we now offer web push we offer E mail Whatsapp Otp and other communication channel and we're seeing more and more customers switching from their incumbent service provider to us.
Weidong Luo: And we are seeing more and more customers are switching from their incumbent service provider to us. So if you look deeper, and the growth of this business came from both the growth in the customers numbers and APU. And this is very important and this is exactly what we are looking for. Because we want to grow the customers number while also growing the APU. And this is a very healthy trend to sustain the long streak of growth in the future. So in a nutshell, we see the developer service revenue, no doubt, will be very important to us.
Jeff: So if you look deeper and a group of this business came from both the growth in the customers' numbers in <unk>.
Jeff: And is very important and this is actually what we are looking for because we want to grow the customer's number while also growing the AVO and this is very healthy trend to sustain the long streak of growth in the future.
Jeff: So in a nutshell, we see the.
Jeff: Develop a service revenue no doubt.
Jeff: We will be very important to us and a growth trajectory tree will help to drive the overall group business and we have a strong demand and I'll talk about in a huge addressable market.
Weidong Luo: And the growth trajectory will help to drive the overall group business. And with a strong demand that I talk about, and a huge addressable market, we are very hopeful of the good results in the future.
Jeff: Hopefully all of the good results in the future.
Operator: I hope this answers your question, Jack. Yeah, yeah, that's very great. Thanks a lot. Thank you. Once again, to ask a question, please press star 11 on your telephone keypad. Once again, it's star 11 for questions. I'm showing no further questions.
Jeff: And I Hope this answer your question Jack.
Jack: Yes, yes, yes, that's very great. Thanks, a lot.
Jeff: Thank you.
Speaker Change: Once again to ask a question. Please press star one on your telephone keypad.
Yeah.
Speaker Change: Yes.
Speaker Change: Once again Thats star one one of your questions.
Speaker Change: Okay.
Rene: I'm showing no further questions I'll now turn the conference back to Rene for closing comments.
Rene Vanguestaine: I'll now turn the conference back to Rene for closing comments. 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.
Rene: 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.
Operator: This concludes the call. Have a good night. Thank you.
Rene: This concludes the call have a good night. Thank you.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
Rene: Yeah.
Rene: Yeah.
Okay.
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Rene: Okay.
Rene: Okay.
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Rene: Okay.
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Rene: Yeah.
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