Q1 2025 Trip.com Group Ltd Earnings Call
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Speaker Change: I'd now like to hand, the conference over to your first speaker today, Michelle Qi Senior IR Director. Please go ahead.
Thank you. Thank you all good morning, welcome to <unk> group's first quarter of 'twenty 25 earnings Conference call.
Speaker Change: Do you mean today on the call are Mr. James Liang Executive Chairman of the Board Ms. Jane Sun, Chief Executive Officer, and MS. Cindy Wang Chief Financial Officer.
Speaker Change: You were in this call, we will discuss our future outlook and performance, which are forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1919 five.
Speaker Change: Forward looking statements involve inherent risks and uncertainties.
Speaker Change: As such our results may be materially different from the views expressed today.
Speaker Change: A number of potential risks and uncertainties are outlined in triple Com group's public filings with the Securities and Exchange Commission chip.
Speaker Change: They'll come group does not undertake any obligation to update any forward looking statements, except as required under applicable law.
Speaker Change: James Jane and Cindy will share in our strategy and business updates operating highlights and financial performance for the first quarter of 2025.
Speaker Change: And the outlook for the second quarter of 2025.
Speaker Change: After the prepared remarks, we will have a Q&A session.
James Jane: With that I will turn the call over to James.
Speaker Change: <unk> please.
Speaker Change: Yeah.
Michelle Qi: Thank you Michelle and thanks, everyone for joining us on this call today.
Speaker Change: The travel industry continues to show strong growth in 2025, driven by high consumer confidence resilient demand and favorable policy Pip Dot com continues to deliver outstanding performance benefiting from our diversified market presence.
Speaker Change: Operation spanning both mature and emerging markets, we have built a balanced portfolio that mitigates risks associated with regional economic fluctuations and reduces dependency on any single market.
Speaker Change: Following China's strategic push to attract international visitors inbound travel has become our fastest growing segment.
Speaker Change: Combination of visa free policies and increased visibility through global social media has made China more accessible and attractive destination in Q1, our inbound travel bookings surged by approximately 100% year over year, with South Korea, Thailand, Malaysia, and Indonesia emerged at some of the fastest growing source.
Speaker Change: <unk>.
Speaker Change: Trip Com group offers the most comprehensive China travel inventory covering accommodation transportation attractions in local experiences we have actively enriched our content and services to better engage international travelers.
Speaker Change: <unk> by a robust service capabilities, such as multilingual support and personalize the itinerary, we have confidence to become the go to platform for those visiting China.
Speaker Change: As global interest continues to rise, we will continue to enhance our offerings and user experience to fully capture this growing opportunity.
Speaker Change: AI remains a cornerstone of our long term strategy as we deepen our investments in AI, we view it as a critical tool for enhancing user experience and streamlining the travel booking process, our AI capabilities span the entire customer journey from trip planning to post sales support.
Speaker Change: Port by leveraging advanced language models, we deliver personalized recommendation generate tailored itineraries with actionable links and respond to user queries with greater precision. This AI driven approach seamlessly integrate historical booking data with real time travel trends, allowing for dynamic updates.
Speaker Change: Better align with evolving user base.
Speaker Change: And the planning phase our AI agent trip Jeanie has seen around a 50% increase in average user session duration, reflecting the growing interest in AI driven travel assistance.
Speaker Change: In the post sales phase, our AI chatbot and self service tools handle over 80% of inquiries offering 24, seven support improving response time and boosting customer satisfaction. Our strong Q1 results underscore the resilience of our business model and the effectiveness of our strategic initiatives with a continued folk.
Speaker Change: <unk> on innovation customer experience and operational excellence, we are well positioned to navigate a dynamic economic environment and capture future growth opportunities.
Speaker Change: With that I will turn the call over to Jane for operational highlights.
Jane: Uh huh.
Jane: Thank you James Good morning, everyone. We are pleased to report a strong start to 2025 in the first quarter, our net revenue increased by 16% year over year, reflecting solid momentum across our business.
Adjusted EBITDA grew by 7% year over year.
Jane: Demonstrating continued operational efficiency improvements we are encouraged to see that travel has become an increasingly essential part of People's daily lives driving sustained interest across markets.
Jane: On the global front over all travel booking on our international Otas platform grew by over 60% year over year APAC remains a major growth engine.
Jane: We drove this momentum by capturing rising demand from both leisure and business travelers and by strengthening our brand and local presence all of them on our platform now contribute 70% of international bookings, reflecting growing user preference for App based travel planning and increasing brand recognition.
These achievements reflect the success of our localized operations and strategic partnership.
Jane: Joint venture with JCB in Japan for example has strengthened and expanded our product offering helping us better serve local traffic I broadening our international reach we continue to respond quickly to changing market dynamics and build long term growth momentum.
Jane: China is also emerging as increasingly popular destination from a global travelers with inbound travel gaining strong momentum in Q1 inbound arrivals at the national level grew by 40% year over year with 75% coming from visa free.
Jane: We reached all our platform inbound bookings increased by around 100% year over year with hotel booking from T is a free countries in APAC search by over 240%. These trends reflect the strength and competitiveness of our inbound offering which I'll.
Jane: Perform other segments in both conversion rates and the cross selling ratio. This momentum has been supported by favorable policy changes. The 240 hour visa free transit policy introduced in December allows travelers from 54 countries to stay in China for up to 10 days and expanse eligible entry and <unk>.
Jane: Exit points to 60 across 24 provinces significantly enhancing accessibility. Meanwhile, the new refund upon purchase policy enables travelers to can be claimed the a T rebate at designated stores and we use the funds, making China increasingly attractive to global <unk>.
Jane: Visitors.
Jane: To further enhance visitor experience trip Dotcom group has launched three city tours for trying to travelers in Shanghai and Beijing. We are also upgrading our offline stores into marketing or service center offering international visitors.
Jane: Travel consultations payments support and a wide range of milk like services.
Jane: Outbound travel from China also sustained steady growth during the quarter in Q1 cross border flight capacity recovered to 83% of pre pandemic level.
Jane: Outbound hotel and air bookings have returned more than 120% of 2019 levels outperforming the market by 30% to 40%. Despite short term disruptions in Thailand, expanding travel radius of Chinese travelers continues to support recovery with long haul destinations such as.
Jane: Europe, seeing particularly strong growth domestically travel demand remain robust with hotel bookings in China, continuing to see double digit growth year over year.
This underscores consumer's strong appetite for local exploration and travel experiences.
Speaker Change: But so my generation is rapidly becoming a vibrant forest in the travel market with strong demand and growing enthusiasm for exploration.
Speaker Change: In Q1, both the number of old friend club users and their G. N V grew by 100% year over year with both time and spending power on their side. This group is emerging as a key driver of long term growth to better serve this growing segment, we carefully select and <unk>.
Speaker Change: GAAP travel products to meet the needs of senior travelers, ensuring suitability quality and competitive pricing.
Speaker Change: Offerings now includes over 70000 travel product 2000 partner hotels, and 4000 hotel packages tailored specifically for the silver generation.
Speaker Change: We also provide one on one customer support throughout the entire journey to ensure a seamless and reassuring experience.
Speaker Change: To connect with this audience in new ways, we are producing short form drama series that resonates with them to promote travel offering.
Speaker Change: Favorable policies are encouraging more suppliers to develop senior friendly policies.
Speaker Change: Just a few.
Speaker Change: Hi, appellate offerings grows we are increasingly well positioned to meet evolving demand and capture long term growth in this market.
Speaker Change: Yes.
Speaker Change: Among younger travelers, we are seeing strong demand for entertainment plus travel experiences such as music Festival.
Speaker Change: <unk> tours and destination events in Q1 revenue for these products rose by more than 400% year over year, reflecting a clear shift toward immersive experience led travel. This generation is increasingly prioritizing unique interest driven itineraries that blend lessor with lifestyle and self expression.
Speaker Change: To capture these trends, we are curating more niche offerings across popular themes, such as anime and sports events, delivering greater personalization and cultural relevance.
As younger users continue to drive the growth of experiential travel, we see strong potential to further engage the segment through innovative product design and digital storytelling.
Speaker Change: Beyond business performance, we remain committed to creating long term value for society.
Part of our efforts to support rural revitalization, we have booked 34 country retreat to promote sustainable travel and stimulate local economy in times of crisis. We act swiftly following the much earthquake and BMI, we launched a global Sos initiatives to assist.
Speaker Change: Affected travelers with cancellations and offer timely support and reassurance internally, we continue to care for our people offering employees with children under 18 and additional three days of paid leave this policy not only supports a work life balance, but also encourages family.
Speaker Change: Travel contributing further to the travel economy.
Speaker Change: <unk>, our first quarter performance reflects the strength of our platform the resilience of travel demand and our ability to capture growth opportunities across diverse markets.
Speaker Change: We remain focused on delivering innovative localized and customer centric travel solutions to meet evolving traveling looking ahead, we are confident in our ability to drive sustainable growth and create long term value for our customers partners and shareholders with that I will now turn the.
Speaker Change: Call over two things.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Thanks, James Good morning, everyone for the first quarter of 2025 trip Dotcom group reported a net revenue of $13 8 billion RMB, representing a 16% increase from the same period last year and a 9% increase from the previous quarter Prime.
Speaker Change: Merrily due to strong travel consumption and resilient travel demand across segments.
Speaker Change: Combination reservation revenue for the first quarter was RMB, five 5 billion, representing a 23% increase year over year, and a 7% increase quarter over quarter outbound and international hotel bookings continued to deliver strong gross domestic hotel bookings also remained resilient and.
Speaker Change: Form the overall market.
Speaker Change: Transportation ticketing revenue for the first quarter was RMB, five 4 billion, representing an 8% increase year over year, and a 13% increase quarter over quarter outbound air bookings continue to grow strongly and outpacing the broader market or international Air business has also witnessed rapid <unk>.
Speaker Change: Spansion Pat.
Speaker Change: Packaged tour revenue for the first quarter was RMB 947 million, representing a 7% increase year over a year and a 9% increase quarter over quarter. The year over year growth was mainly driven by our international businesses.
Speaker Change: Corporate travel revenue for the first quarter was RMB 573 million, representing a 12% increase year over year, and an 18% decrease quarter over quarter. The sequential decrease was in line with normal seasonality.
Speaker Change: Excluding share based compensation charges adjusted product development expenses for the first quarter increased by 14% year over year.
Speaker Change: Adjusted G&A expenses for the first quarter increased by 12% year over year. These are mainly due to increase in personnel related expenses.
Speaker Change: Adjusted sales and marketing expenses for the first quarter decreased by 11% from the previous quarter and increased by 30% from the same period last year. The sequential decrease was in line with seasonality while year over year increase was mainly driven by heightened marketing efforts aligned with our biz.
Speaker Change: This expansion adjust EBITDA was RMB four 2 billion for the first quarter compared with RMB 4 billion in the same period last year and RMB 3 billion in the previous quarter diluted earnings per ordinary share and per a D. S were RMB 609, or U S. Dollar zero point 84 for the first quarter of 2010.
Speaker Change: Five excluding share based compensation charges and fair value changes of equity securities investments and exchangeable senior notes non-GAAP diluted earnings per ordinary share and previous were RMB 596, or U S. Dollar zero point 82 for the first quarter.
Speaker Change: As of March 31, 2025, the balance of cash and cash equivalents restricted cash and short term investments held to maturity time deposit and financial products was RMB $92 9 billion of U S dollar $12 8 billion.
Speaker Change: As of the earnings announcement date, the company has repurchased approximately U S dollar $84 million of its shares.
Speaker Change: This action underscores our commitment to delivering value to our shareholders. We remain dedicated to this strategy and will continue to evaluate opportunities for additional buybacks throughout the remainder of the year in conclusion travel demand remains resilient across markets supported by strong consumer confidence.
Speaker Change: And continued recovering momentum with our solid foundation and focused strategy, we remain confident in our business outlook and long term growth potential with that operator. Please open the line for questions.
Speaker Change: Thank you.
Speaker Change: If you would like to ask that question now Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again to give more people the opportunity to ask questions. Please limit to one question at a time if you have follow up questions. Please request too.
Speaker Change: He joined once again Thats Star 114 question.
Speaker Change: We will now take our first question from the line of Thomas Chong from Jefferies. Please go ahead Thomas.
Speaker Change: Okay.
Thomas Chong: Hi, Good morning, Thanks management for taking my question. My question is about AI.
Thomas Chong: Could you share your perspective on how vertical AI agents compared to a general agents within the travel industry.
Thomas Chong: Additionally.
Thomas Chong: <unk> has been operating the AI powered sandwiches for a few years now how do you envision the future development of these technologies. Thank you.
Thomas Chong: Thank you for your question.
Agents in general AI agents, each bring unique strength.
Thomas Chong: St.
Thomas Chong: Equal agents excel at providing real time proprietary travel data and seamlessly integrating products and services that enhance the travel experience.
Speaker Change: <unk> agents on the other hand offer a broader range of information beyond specific vehicles. However.
Thomas Chong: On vertical otas to complete the booking pace.
Thomas Chong: The sequential development roadmap, we have introduced a suite of AI tools to deliver efficient and reliable travel services.
Thomas Chong: Travel assistant fifth Jamie leverage advanced models to address user inquiries.
Thomas Chong: Its recommendations inspire users and help them make informed choices based on authentic booking data and user reviews.
Speaker Change: Pleased with the increasing user engagement with our AI tools, and we continue to enhance them based on user feedback and technological advancements.
Thomas Chong: Our platform evolves.
Thomas Chong: It remains to be the most efficient and reliable one stop travel service platform.
Thomas Chong: Thank you.
Speaker Change: We will now take our next question from the line of young Lille from Morgan Stanley. Please go ahead yeah.
Speaker Change: Hey, Thank you for the opportunity.
Speaker Change: Can management provide some color about your performance during the labor day holiday and the quarter to date. Thank you.
Speaker Change: Thank you Yung.
Speaker Change: We're very pleased without very strong performance during the labor day holiday, our domestic hotel bookings increased by over 20% compared to.
Speaker Change: Two last year and cross border bookings saw Roes of around 30%.
Speaker Change: Each inbound bookings surged by approximately 158% year over year.
Speaker Change: Domestic air prices have increased year over year and the.
Speaker Change: Domestic hotel prices are near last year's levels.
Speaker Change: Both demonstrating significant improvement since the first quarter. The strong performance suggests a very resilient and meant for the leisure travel. Thank you.
Speaker Change: Thank you.
Speaker Change: We will now take our next question from Simon Cheung from Goldman Sachs. Please go ahead Simon.
Simon Cheung: Thanks for taking my questions.
Simon Cheung: A bit more on the <unk>.
Simon Cheung: Outbound travel trend could you, perhaps just share with us.
Simon Cheung: The industry trend and also your company's performance and what's your expectation of 44 year. Thank.
Simon Cheung: And given obviously the current uncertainty.
Simon Cheung: But with all the tariff news and also.
Simon Cheung: The volatility on the Forex.
Simon Cheung: Taking all these factors going to be affecting the overall trend and good luck.
Simon Cheung: Thank you Simon.
Simon Cheung: In the first quarter cross border flights from mainland China steadily recovered to 83% to 84% of the 2019 level and the C. AAC forecast that the number was 690% at the end of 2025.
Simon Cheung: Around 80% at the end of the 2024, indicating double digit annual growth.
Simon Cheung: Our platform have seen outbound bookings.
Simon Cheung: Although bookings consistently outperformed the industry with particularly strong growth in the long haul destinations such as Europe.
Simon Cheung: At a group level, our inbound and outbound operations creates a natural hedge where a major forex changes could positively affect one segment. Thank you.
Simon Cheung: Thank you.
Speaker Change: We will now take our next question from Brian Gong from Citi. Please go ahead Brian.
Speaker Change: Oh, good morning, James Jane Cindy and Michelle Thanks for taking my question.
Speaker Change: Ill congratulate was owning different results.
Speaker Change: My question our hotel ACO.
Speaker Change: Which.
Speaker Change: We're gonna industry hotel is their industrial population worth, noting the first four months.
Speaker Change: Wholesale price.
Speaker Change: <unk> recently and how is the outlook for the full year your view. Thank you.
Speaker Change: In the first quarter our.
Speaker Change: Hotel ADR in general decreased by high single digits compared with last year as we move into the second quarter, we saw the decline narrowed and prices stabilized.
Speaker Change: Oil prices only dropped by low single digits. During the recent labor day holiday in terms of supplier overall hotel availability increased by high single digits year over year mid to upper range hotels showed a significant gross well we also saw.
Speaker Change: The farthest grows.
Speaker Change: So far this increase on the.
Speaker Change: The men side.
Speaker Change: Looking ahead, we expect that increasing travel demand and normalizing supplier gross was stable.
Speaker Change: To stabilize hotel price. Thank you.
Speaker Change: Thank you.
Speaker Change: The next question comes from the line of Alex Yao from Jpmorgan. Please go ahead Alex.
Speaker Change: Yeah.
Speaker Change: Our convention for taking the question and congrats on a strong quarter.
Speaker Change: My question is about kind of any sentiment.
Speaker Change: Can you share with us in science.
Speaker Change: Got to consumer sentiment in the context of dynamic macro environments and also did you geopolitical tension.
Speaker Change: The current stage. Thank you.
Speaker Change: We are seeing quite resilient travel demand across the different markets, where we operate in.
Speaker Change: Although travelers.
Speaker Change: The preference for destinations are consistently changing the most important factor for US is the ongoing growth in the overall demand leisure travel demand will remain strong with per capita spending comparable to last year's level for the first quarter and the recent labor day holiday.
Speaker Change: Today on our platform.
Business travel trends are more closely tied to the macro environment and we currently see a stable.
Speaker Change: April demand in the first quarter corporate users average spending on business travel was settled.
Speaker Change: Year over year, and a recent survey indicates that over 90% of corporate users.
Speaker Change: Back their domestic and international travel budget to grow all remain unchanged.
Speaker Change: 25, thank you.
Speaker Change: Thank you.
Speaker Change: We will now take our next question from Ellie Jiang from Macquarie. Please go ahead aly.
Ellie Jiang: Thank you and good morning management for taking my question and congrats on the strong results.
Ellie Jiang: Have a question those are the domestic competitive less competitive landscape could you help me understand what is the current landscape like have you noticed there are changes in competition, especially with competitors' aggressive membership programs and what will be the impact on the businesses. Thank you.
Ellie Jiang: Thanks for your question.
Speaker Change: Regarding the domestic market the competition tends to be rationalized.
Ellie Jiang: We're very glad to see that.
Ellie Jiang: We're focusing on our really stress our membership has been always very strong on the consumer side, we provide a strong loyalty program, which enable our customers to get the best coverage with the most competitive pricing on the partner side because of our.
Ellie Jiang: Our strong membership scheme, our panel April to differentiate different customers and offer a customized service at different level. So as a result, 80% of our revenue.
Ellie Jiang: <unk> provided and drived by our existing customers and we will continuously to extend our leadership in this field.
Ellie Jiang: Yeah.
Ellie Jiang: Thank you.
Ellie Jiang: Our next question comes from Joyce Ju from Bank of America. Please go ahead Joyce.
Speaker Change: Good morning, James Jane Cindy and Michelle Congrats on the strong quarter and thanks for taking my question.
Speaker Change: My question is could you provide some insights and more detailed colors into the first quarter performance, both operationally and also to financially. Thank you.
Speaker Change: Okay.
Speaker Change: In the first quarter, our triple Com achieved a very strong growth despite a challenging comparison base.
Speaker Change: As the overall bookings increased by more than 60% year over year APAC remain our top priority.
Speaker Change: For the operations marketing and growth driver. We are also expanding and growing rapidly in new markets, such as the middle East, which helped to diversify our market volume.
Speaker Change: And our global presence.
Speaker Change: As trip Com continues to scale, our service and personnel related cost efficiency is also improving our marketing ally remain aligned with our requirement. Despite a slightly higher marketing ratio due to the intensified efforts. Thank you.
Speaker Change: Q.
Speaker Change: Our next question comes from the line of way shown from UBS. Please go ahead way.
Speaker Change: Thank you good morning management congrats on the solid results and thank you for taking my question I wanted to follow up on the international business. So as you mentioned Truecar Com overseas has stepped up the marketing efforts could you. Please share in which areas are we allocating more resources.
Speaker Change: And what kind of strategies have proven to be more successful or less effective that needs improvement and also what's the plan ahead for this year. Thank you.
Speaker Change: I think usually all product offerings and customer service is a highly competitive.
Speaker Change: Actually in Asia.
Speaker Change: Helping us to intensify our marketing efforts in this region, we leverage all the marketing channels that meet our ally requirement.
Speaker Change: With direct App user acquisition proving most effective.
Speaker Change: For the longer term growth in the first quarter, our native mobile app.
Speaker Change: For approximately 70%.
Speaker Change: Of our orders with even stronger performance in the APAC region.
Speaker Change: Additionally, we have launched multiple campaigns to boost our brand awareness, both online and offline in the key Asian markets.
Speaker Change: Overall, we prioritize marketing alloy and maintain flexibility in our strategies. Our campaigns are currently delivering the desired outcomes with a rapid increase in direct user and cross selling opportunities, which is expected to further enhance our long term market.
Speaker Change: Efficiency. Thank you.
Speaker Change: Thank you.
Speaker Change: Our next question comes from the line of Paresh Jain from HSBC. Please go ahead paresh.
Speaker Change: Thank you management.
Speaker Change: Two questions. The first one maybe following on your earlier comment if you can elaborate on like the core competencies in some of the calls.
Speaker Change: And the other key markets.
Speaker Change: As the airports suite of international expansion.
Speaker Change: So you see the Greek market will lead in terms of bringing the underlying underlying profit to your existing portfolio.
Speaker Change: And my second question is that.
Speaker Change: Do the travel business in any shape or form has been disrupted because of all the trade tensions between Europe and China in particular and globally in general Thank you.
Speaker Change: Thank you.
Speaker Change: When we.
Speaker Change: Establish our strategy.
Speaker Change: Our strategy, we focus on a couple of areas first of all we offer one stop shopping platform, which gives consumers a comprehensive product offerings are therefore, if a customer is making their hotel.
Speaker Change: Reservation or flight reservation, we immediately.
Speaker Change: Ill use AI to recommend attached the services, which they need during their trip and so far that works very conveniently for our travelers and the second thing is our excellent customer services.
Speaker Change: We are very proud of our service team.
Speaker Change: This level is quote a very high at global level at any time, if you want to call our call Center. Our team is always there for our customers timely to address any questions they might have.
Speaker Change: Thirdly is the App usage is.
Speaker Change: He is excellent because Asia is a very app to the community. So we developed at the Si that is very well.
Speaker Change: Well established for App users and we will continuously to put these efforts and as we increase our volume.
Speaker Change: Our competitiveness in pricing and coverage also is enhanced.
Speaker Change: So these are the strengths we have seen when we.
Speaker Change: Extend or services.
Speaker Change: From China to Asia, and the rest of the world. Thank you.
Speaker Change: Thank you.
Speaker Change: As a reminder to ask a question. Please press star one one on your telephone keypad.
Speaker Change: Next question comes from the line of Wei Fang from Mizuho Securities. Please go ahead way.
Wei Fang: Hi, James Jane Cindy and Michelle Thanks for taking my question and congrats on a solid print.
Speaker Change: I was wondering if you can elaborate on some of the Hello can you hear me.
Speaker Change: Yeah, sure clearly Oh, I'm, sorry, yes, I was hoping you guys can help maybe elaborate a little bit on the latest developments in the inbound business I remember.
Speaker Change: Low single digits.
Speaker Change: Revenue and glad to see that continue to grow over $100 flat year over year. So maybe you guys can help update us on the current revenue contribution. Thank you very much.
Speaker Change: Sure I will.
Speaker Change: Highlight it on the policy level as well as what we have done so far.
Speaker Change: Our team to strengthen.
Speaker Change: <unk> of our products at the policy level more than 40 countries are given free visa that makes the inbound travel much much easier on top of it.
Speaker Change: Policy also extended to interested to visa from three days intensive period to 10 days.
Speaker Change: For in transit to travelers that also makes business travelers are much easier to travel inbound.
Speaker Change: We're very encouraged to see the change in policy.
Speaker Change: The second thing is as the.
Speaker Change: Leading player.
Speaker Change: Our domestic market, we have the best coverage of all inventories with the most competitive pricing.
Speaker Change: And we also can cross sell different products when consumers come to visit our inbound.
Speaker Change: Our strong momentum for inbound travel and we're very glad we delivered three digits growth again in Q1, we will keep up with the strong momentum going forward.
Speaker Change: <unk>.
Speaker Change: Thank you.
Speaker Change: Our next question comes from John Choi from Daiwa. Please go ahead John.
Speaker Change: Okay.
John Choi: Thank you and thanks for taking my question just quickly on your sales and marketing expense I noticed up this quarter compare to the purchase occasion, the sales and marketing expenses.
John Choi: In slightly lower than expected how should we think about the full year outlook ambitions.
John Choi: Sure.
John Choi: The sequential decrease in the marketing cost ratio was primarily due to seasonal shifts in China. As previously mentioned our marketing investments are highly focused on our tailored to individual markets and different type of channels, we adjust our marketing investment.
John Choi: In real time based on changing marketing conditions, although our investment here to ROI criteria, a variation see marketing in markets and channels mixes can cause fluctuations in overall marketing expenses ratio.
John Choi: In the short term, we will continue to enhance our global marketing investment as planned each quarter and marketing ratio may fluctuate due to seasonality and the varying mix of different markets in the longer term period, we aim to improve marketing efficiencies increasing direct mobile traffic enhance.
John Choi: Cross selling opportunities as well as strengthening our customer royalty.
John Choi: Platform. Thank you.
John Choi: Thank you.
Joe: Our next question comes from John Shelf from Barclays. Please go ahead Joe.
John Shelf: Thank you very much for taking my question.
John Shelf: In the prepared remarks, you talked about you repurchased about $88 million of shares in Q1.
John Choi: Was hoping you can provide a bit of update on your capital return program.
John Choi: And.
John Choi: Should we expect you would step up to buy.
John Choi: Buy more shares.
John Choi: Per quarter in the coming quarters. Thank you very much.
John Choi: Yes, we were.
John Choi: We'll step up with a lot of effort in for 2025.
John Choi: We have already give 200 Emilia.
John Choi: Cash dividends to our shareholder and so far we have bought back about 85 million USD shares and we will continue with our efforts to buy back more shares when the market to give us more opportunities.
John Choi: Our board of Directors has approved the total amount to be about 600 million. So there was still a room for us to purchase back our shares.
John Choi: In addition to that we also proposed to our shareholders.
John Choi: To buy back shares in Hong Kong market.
John Choi: <unk> approval that will also increase our quota for buying back shares.
John Choi: Our commitment for capital return is firm we will.
John Choi: Give our shareholders the opportunity on both cash dividends as well as stock buyback. Thank you.
John Choi: Thank you.
John Choi: We have now reached the end of the question and answer session. Thank you all very much for your questions I'll now turn the conference back to Michel for closing comments.
John Choi: Thank you thanks, everyone for joining US today, you can find the transcript and webcast of today's call on Investor trips outcome. We look forward to speaking with you on our second quarter of 2025 earnings call. Thank you and have a good day. Thank you. Thank you.
John Choi: Thank you for your participation in today's conference. This does conclude the program you may now disconnect your lines.