Q4 2024 Phoenix New Media Ltd Earnings Call

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Speaker Change: I would now like to turn the conference over to your Speaker today moved the goal from Investor Relations. Please go ahead.

Speaker Change: Thank you operator.

Speaker Change: Welcome to Phoenix, New Medias earnings conference call for the fourth quarter of 2024.

Speaker Change: On today's call, we will begin with an overview of our fourth quarter results followed by a Q&A session.

You can find our quarterly financial results and the webcast of this conference call on our website at IR <unk> iPhone Dot com.

Before we continue please note our safe Harbor statement included in the earnings press release, which also applies to any forward looking statements made on this call.

Speaker Change: Additionally, unless otherwise specified all figures mentioned are in RMB.

Speaker Change: Joining me here today are our CEO, Mr Johnson, and our CFO, Mr. Albert do now.

Mr. Sun: Now I will pass the call to Mr. Sun for his opening remarks, I will provide a translation.

Hello.

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Mr. Sun: Got it.

Mr. Sun: Got it.

Mr. Sun: Okay.

Mr. Sun: Good evening.

Mr. Sun: Thanks Anthony.

Mr. Sun: Okay.

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Please go.

Mr. Sun: Susan.

Mr. Sun: Sure.

Mr. Sun: Sure.

Mr. Sun: Okay.

Mr. Sun: You too.

Mr. Sun: Got it.

Mr. Sun: Yes.

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Mr. Sun: Hum.

Okay.

Mr. Sun: Alrighty.

Mr. Sun: This is from.

Mr. Sun: Good morning, Steven.

Mr. Sun: Mhm.

Mr. Sun: Sure.

Mr. Sun: Richard.

Mr. Sun: Because it is a minimum.

Mr. Sun: Recently two.

Mr. Sun: Thank you Lena.

Mr. Sun: Okay.

Mr. Sun: Hey, Jamie.

Mr. Sun: <unk> usage.

Okay.

Speaker Change: Hello, everyone and welcome over the past year, we remain committed to the professionalism and quality of our content.

Speaker Change: Thanks to the hard work in close collaboration of our teams we achieved a year on year revenue growth.

Speaker Change: In the fourth quarter, we demonstrated both professionalism and speed in our news coverage, earning widespread recognition.

Speaker Change: Our original content the IP continue to innovate our events showcased our social responsibility and our efforts in commercialization also made progress.

Speaker Change: These achievements have strengthened our influence and lay the solid foundation for our future development.

Speaker Change: Now I will invite Edward to provide a more detailed summary of our fourth quarter performance on my behalf.

Yeah.

Okay.

Speaker Change: In the first quarter of 2024.

Speaker Change: Our professional expertise and innovative spirit across multiple business areas delivering high quality content and services to users well staying competitive in the market.

Speaker Change: Our coverage of major news events showcased our rapid response and the professional decks.

Speaker Change: Particularly during the U S election in the south careers.

Marcelo crisis.

Speaker Change: In November we launched our real time ward count product, becoming the first domestic online to announce the U S election results.

Speaker Change: Our swing states only feature.

Speaker Change: And the underground video series, particularly.

Inside the U S election.

Speaker Change: Garnered millions of views and the trended across the Internet.

In December one in South Korea declared martial law.

Speaker Change: Sprung into action immediately.

Speaker Change: We quickly supplemented event did health and continuously compelled attitude and inter printed content to provide a fuller picture.

Speaker Change: Well integrating large screaming, which attracted over 10 years seven minute views across platforms.

Speaker Change: Our in depth analysis about South Korea as first Lady can compete earned approved from peers.

Speaker Change: Gained strong traction online.

Speaker Change: We also distributed our exclusive interviews with the woman who confronted the army across our channels.

Speaker Change: Highlighting things.

Speaker Change: Distinct edge in global news reporting.

Speaker Change: During the quarter, our original colors, and IP delivered both excellent data and widespread Chris.

Speaker Change: Tumble our in depth commentary of serious broke down the Korean plane crash with technical pre recession hitting $250 million.

Speaker Change: LIBOR topics.

Speaker Change: Having the trending list.

Speaker Change: New high for the caller.

Speaker Change: In finance cover story landed exclusive chat with exponent modules CEO.

Speaker Change: At the Paris Motor show.

Racking up 19 minute views trending.

In total and beyond.

Speaker Change: Our video journey shared.

Speaker Change: Perry a story of a girl who lost her Harry in infancy, and made a remarkable journey to become.

Speaker Change: Posted doctoral fellow totaling 67 million views Manuel.

Reading Wechat account.

Speaker Change: As Florida Nobel Laureate Hunt comps achievements in depth.

Speaker Change: With the article widely responded and pressed by industry peers.

Speaker Change: This quarter. We're also proud of several impactful events that reflected all of our cultural values and the commitment to social good to <unk>.

Speaker Change: <unk> hundred 20 for China power person of the year Carla seemed the technology for good honored those using tech to better search and boost human wellbeing.

Action alien.

Speaker Change: Tariffs color seem to cross border Trust sustainability focused on the needs of underserved communities and social inclusion with philanthropist from various platforms sharing ideas and solutions.

Speaker Change: <unk> our influence in public welfare.

Speaker Change: Our strengths in content distribution and the brand value supported our advertising base.

Speaker Change: <unk> a revenue uptick for the year, despite tough market conditions.

Speaker Change: We are also pushing.

Speaker Change: Paid services launching a mini program driven novo business in Q4.

<unk> tapped into.

Speaker Change: <unk> and wechat traffic ecosystems.

Speaker Change: <unk> rapid growth.

Speaker Change: Overall in Q4, 'twenty 'twenty four.

Speaker Change: It earned recognition from users and industry through the professionalism speed and the depth of our content.

Speaker Change: Laying the groundwork for future operations through commercial exploration.

We understand that our media our life value of life not only in sharing news, but also in his commitment to social responsibility we have.

Speaker Change: Well continue striving to deliver higher quality content to users, creating sustainable social and commercial value.

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

We will now walk you through our financial performance for the fourth quarter of 2024, all figures mentioned their wellbeing RMB.

Our total revenues were $218 1 million, representing a 3% increase year on year from $211 8 million.

Speaker Change: Specifically net advertising revenues or 118 90 minute call.

Speaker Change: Compared to 197.

Speaker Change: 7 million.

Speaker Change: In the same period of last year.

Services revenues were $29 1 million, representing 96, 6% increase year on year from $14 8 million.

Primarily driven by revenue generated from our new digital reading services offered through mini programs on third party applications.

Speaker Change: Cost of revenues was $121 1 million.

Speaker Change: Slightly up from $125 million year on year.

Speaker Change: Gross margin for the fourth quarter improved to 44, 5% up from 43, 1% in the same period of last year.

Total operating expenses or $9 3 million.

Reflecting a 32% increase year on year from $68 4 million.

Speaker Change: This increase was primarily due to higher sales and marketing expenses incurred for the new digital reading services mentioned earlier.

Speaker Change: Income from operations was $6 7 million compared to $22 9 million in the same period of last year.

Net loss attributable to iPhone was $3 6 million compared to net income attributable to iPhone of $8 1 million in the same period of last year.

Speaker Change: Moving on to our balance sheet.

Speaker Change: As of December 31, 2020 for the Companys cash and cash equivalents term deposits short term investments and restricted cash totaled 1.05 billion.

Speaker Change: Approximately <unk> dollars $143 3 million.

Finally, I'd like to provide our business outlook for the first quarter of 2025.

Speaker Change: We forecast total revenues to be between $147 million and $162 million.

Speaker Change: For net advertising revenues we project.

Speaker Change: Between $112 million and 122 minutes.

Speaker Change: Well for paid service revenues.

We project between 35 minute and $40 million.

This forecast reflects our current and preliminary view, which is subject to change.

Speaker Change: Potential uncertainties.

This concludes the prepared portion of our call. We are now ready for questions.

Speaker Change: Operator, Please go ahead.

Speaker Change: Thank you as a reminder to ask a question. Please press star one one on your telephone.

For your name to be announced to have Joel. Your question. Please press star one again.

Speaker Change: Please standby is compile the Q&A roster.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: First question.

Comes from.

Speaker Change: Sean.

Speaker Change: From 86 research. Please go ahead.

Speaker Change: Thank you good morning management. Thank you for taking my question.

Speaker Change: I have one regarding the pace of it around.

Speaker Change: No we haven't.

Speaker Change: We observed.

Speaker Change: Initial increase.

Speaker Change: In this revenue stream.

Speaker Change: Dream during the fourth quarter.

Speaker Change: Management, please elaborate on the online sector.

Speaker Change: Attributing to this growth trajectory. Thank you.

Speaker Change: Okay.

Speaker Change: The growth in paid services revenue.

Speaker Change: Stems from our paid showed star and overall business.

Speaker Change: Last on third party platform mini programs.

Sal can issue.

Speaker Change: Tapping into traffic ecosystems, like <unk> <unk> and <unk>.

Speaker Change: Chad.

Speaker Change: <unk> part in notable revenue gains.

Speaker Change: Weighted promotion fees have been.

Speaker Change: <unk> recorded under ourselves and the marketing expenses.

Speaker Change: Pivoting the overall profit and margin.

Speaker Change: Actually a very quite modest.

Speaker Change: As a newly launched a venture although we expect a strong year over year revenue growth in the near term, but the business remains small in scale, we will focus on profit contribution and.

Speaker Change: Keep evaluating its performance.

Thank you.

Speaker Change: Thank you.

Just a moment Phil next question please.

Speaker Change: Next we have Troy Xu from first Shanghai. Your line is now open.

Troy Xu: Good morning to the management team My name is Troy from first Shanghai and I appreciate the opportunity to ask you a question over the past year the company increasing advertising revenue despite a broader slowdown in online advertising market could you please share the strat.

Troy Xu: <unk> used to attract advertisers. Thank you.

Troy Xu: Yeah.

Troy Xu: Uh huh.

Troy Xu: Actually overall.

Troy Xu: It's down to two key approach.

Troy Xu: First our sales team has shifted.

Troy Xu: Industry specific divisions.

Troy Xu: This allowed us to focus on specific sectors streamed streamlined our resource allocation and the spend.

Troy Xu: Sped up innovation for example, we achieved growth in the public sector, securing and promotional budgets from local tourism and cultural bureaus.

In the <unk> sector.

Troy Xu: And furious leader led a skewed team.

Troy Xu: Using used for Trinity content to boost.

Our revenue.

Troy Xu: Second.

We have accelerated the innovation in continental resources, and upgraded our marketing product to respond more quickly to market shifts.

Troy Xu: Yes.

And growth.

<unk> international marketing strategies for companies.

Pending overseas and boosting content distribution, our short video platforms.

Troy Xu: Yes.

Troy Xu: I hope I have answered your question. Thank you.

Troy Xu: Thank you.

Speaker Change: This concludes the Q&A session I will now hand back to Malta.

Thank you. This concludes our Q&A session and conference call.

Any additional questions. Please don't hesitate to reach out to us. Thank you for joining us and have a great day.

Okay.

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

Speaker Change: Sure.