Q1 2025 Phoenix New Media Ltd Earnings Call
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Speaker Change: Southern Chairman due to dialogue 12, unchallenged leader D C.
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Speaker Change: Okay.
Speaker Change: Hello, everyone and welcome.
Speaker Change: Q1, 2025, Phoenix, New media navigate a complex global and regional events.
Speaker Change: Currently delivering authority reporting with unmatched speed and depth showcasing professional insight and reinforcing our industry leader leadership.
If there was sustained content innovation will leverage our quality content creation and distribution capabilities to deliver value to users and advertising clients unlocking new commercial partnerships.
Speaker Change: Looking to Q2, we will further deepen content innovation expand commercial opportunities and enhanced operational efficiency remaining committed to delivering long term value for investors.
Now I will invite outdoor Edward to provide a more detailed summary of our first quarter performance on my behalf.
Edward: Chris Thank you Moses.
Speaker Change: The first quarter of 2025, we showcased strong momentum by leading breaking news.
Edward: Driving content innovation and unlocking new commercial opportunities are.
Edward: Our content team excelled amid global trade volatility regional political turbulence.
Edward: Sure disaster and the rapid rise of artificial intelligence.
Speaker Change: Assistance really delivering awesome. Thank you.
Speaker Change: Reporting with unparalleled speed and the depth.
Speaker Change: Across major Q1 events from salt careers political upheaval to comps tariff escalation and the new energy vehicle <unk> co Sir.
Speaker Change: <unk> frequently to break as the story setting the pace for industry coverage.
Speaker Change: Our approach goes beyond timelines.
Speaker Change: Going into so Cortez personal stories and critical details that resonate with audiences.
Speaker Change: Fostering.
Speaker Change: Active user engagement through interactive formats.
Speaker Change: For instance.
Speaker Change: Our investigative series.
Trump's tariffs and the impact on Asian markets alongside expose.
Speaker Change: Fire risks and deep six AI breakthroughs spa.
Speaker Change: Sparkled vibrant discussions.
Speaker Change: Drinking hi, all major social media platforms.
Speaker Change: Manuel.
Speaker Change: <unk> content innovation by developing unique IP.
Speaker Change: To deliver exceptional value to users and the brands.
Key highlight was the launch of key C ailments.
Speaker Change: Co creation model.
Speaker Change: Lending professional and the user generated content.
Partnering with leading Kols and the kiosks in finance and the tech we crafted immersive experiences from a trade show tourists and factory deep dives to industrial park visits that highlight corporate innovation.
Speaker Change: Operational strengths and strategic vision.
Speaker Change: Difficultly boosting brand trust and visibility.
Speaker Change: Equally compelling is our new color why it is which.
Speaker Change: Deputed with an in depth look at pulp Mark artistic industrialization model and global ambitions.
Resonating strongly with brands seeking innovative framework to launch garnered over 100 resultant wechat reeds and.
Speaker Change: And widespread.
Shares on social media.
Speaker Change: Collecting robust engagement and social impact.
Speaker Change: We are confident lease Sirius will continue to gain momentum establishing a benchmark in a category.
Speaker Change: This content innovations translated directly into commercial success showcasing our ability to convert creative excellence into business value.
Speaker Change: <unk> example is our tax channels pass laws FSD, China rollout.
Speaker Change: Within three hours with connected with car owners and our board of cost are first to market live test.
With exclusive footage driving viral attention and endorsements from industrial leader on X.
Speaker Change: Building on this our live plus short video plus trending topics strategy.
Speaker Change: <unk>, a comparative test of automakers intelligent driving systems.
Speaker Change: <unk> cost per platform bus, including retreat from the CEO of top tier and EV makers.
This approach allowed us to swiftly secure branding partnerships with top industry players.
Speaker Change: Beyond high profile events were also unlocked value through authentic third tiny in the routine coverage.
Speaker Change: During the two sessions.
Recaptured.
Speaker Change: <unk> story of permanent industrial leader.
Speaker Change: The chairman of our leading Global Corporation.
Speaker Change: Short videos that one barrel, reaching over 16 million views.
Speaker Change: This search elevated there.
Speaker Change: Personnel breath.
Speaker Change: In your company's visibility and self.
Speaker Change: It highlights a growing opportunity.
Speaker Change: In our content expertise to craft, compiling insurer printer IP.
Speaker Change: As businesses prioritize authentic.
Speaker Change: Neither driven narrative clients are turning to us to amplify the stars, creating new branding resources.
Speaker Change: Looking to Q2 2025, we will deepen our commitment to content innovation, creating more barrel ip's to bolster user loyalty and brand influence.
Speaker Change: We'll keep delivering tailored high impact solutions for advertisers.
Speaker Change: And in commercial avenues.
Speaker Change: Well sharpen operational efficiency.
Speaker Change: This concludes.
Our CEO, Mr <unk> prepared remarks.
I will now walk you through our financial performance.
Speaker Change: First quarter of 2025.
Speaker Change: All figures mentioned in wellbeing RMB.
Speaker Change: Our total revenue or $155 2 million, representing a one 4% increase year on year from $153 million.
Speaker Change: Specifically net advertising revenues or $125 million.
Speaker Change: Compared to $138 6 million in the same period of last year.
Speaker Change: Paid services revenues or <unk>.
Speaker Change: <unk> $34 7 million.
Speaker Change: Representing a 141% increase year on year from $14 4 million.
Speaker Change: Primarily driven by revenue generated from our digital reading services are.
Speaker Change: Offered through mini programs on third party applications.
Speaker Change: Cost of revenues decreased by 13, 1% to $92 5 million from $109 million in the same period of last year.
Speaker Change: Total operating expenses were 100, and a $1 one minute.
Speaker Change: Electing our 25, 6% increase year on year from $85 million less.
Speaker Change: This increase was primarily due to higher sales and the marketing expenses incurred for the digital reading services mentioned earlier.
Speaker Change: Loss from operations was $38 4 million compared to $36 five minutes in the same period of last year.
Speaker Change: Net loss attributable to iPhone was $29 7 million compared to 26 million in the same period of last year.
Speaker Change: Moving onto our balance sheet.
Speaker Change: As of March 31, 2025, the company's cash and cash equivalents term deposits short term investments and restricted cash totaled $984 5 million.
Speaker Change: Approximately U S dollar $175 7 million.
Speaker Change: Finally, I'd like to provide our business outlook for the second quarter of 2025.
Speaker Change: We forecast total revenues to be between $182 1 million and $197 one minute.
Speaker Change: For net advertising revenues, we project between $148 7 million and $158 7 million.
Speaker Change: Well for paid service revenues, we project between $33 4 million and $38 4 million.
Speaker Change: This forecast reflects our current and preliminary view, which is subject to change and the substantial uncertainties.
Speaker Change: 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 on your telephone.
Speaker Change: <unk> and aim to be announced two im showing a question. Please press star one again.
Speaker Change: Please standby as we compile the Q&A roster.
Speaker Change: Our first question comes from Alice Tan.
Alice Tan: Of Shanghai Your line is now open.
And good morning management.
Alice Tan: I was wondering could you please share some insight on the trends and outlook for the company's advertising business in Q1 2025. Please thank you.
Speaker Change: Hi, good morning. Thank.
Alice Tan: Thank you very much for the question.
Actually in Q1 2025.
Alice Tan: Our advertising business fifth severe challenges.
But our team responded actively showing strong resilience.
Alice Tan: First while the number of existing clients.
Alice Tan: And styling.
Alice Tan: Les spending became near spending became more cautious.
Reducing average revenue per client.
Alice Tan: To address this.
Alice Tan: <unk> focused on <unk>.
Alice Tan: <unk>, new <unk> and <unk> revenue grew significantly balancing the decline from existing clients.
Alice Tan: Second.
Alice Tan: Some industries had a C.
Alice Tan: Seasonal fluctuations.
Alice Tan: For example.
Alice Tan: Alcohol advertising dropped sharply.
Alice Tan: We expanded our quickly in finance e-commerce.
Consumer goods and electronics achieved.
Alice Tan: Achieving good progress.
Alice Tan: Also.
Alice Tan: Certain clients had strong demand by the Leer project required a high investment in our costs. So we focused on refining our creative content the resources and.
Alice Tan: Events to increase our pricing premium.
Alice Tan: Looking to Q2.
Alice Tan: <unk> are still cautious with marketing spending but.
Alice Tan: Proving compared to Q1.
Alice Tan: This loan.
Market research advertisers.
Alice Tan: Focusing more on brand value and the media influence.
Alice Tan: We will continue to use our strength as a leading internet media platform offering high quality content and campaigns to create value for our clients.
Besides growing new industries and domestic clients. We are also exploring marketing partnerships with overseas companies in China.
Alice Tan: Our team is dedicated to staying competitive in this market.
Alice Tan: Yeah.
Alice Tan: Thank you Alice.
Alice Tan: Thank you that's really clear thank you.
Speaker Change: Thank you for the questions. This concludes the Q&A session I will now pass the conference back to Malta.
Speaker Change: Thank you we have now come to the end of our Q&A session and conference call. If you have any additional questions. Please don't hesitate to reach out to us. Thank you for joining us and have a great day.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: [music].
Speaker Change: Good day, and thank you for standing by welcome to Phoenix, New Media first quarter 2025 earnings call.
Speaker Change: At this time all participants are in a listen only mode.
Speaker Change: After the Speakers' presentation, there'll be a question and answer session.
Speaker Change: To ask a question during the session you will need to press star one on your telephone.
Speaker Change: Oh, Thanks yacht automated message advising your hand, it's rice.
Speaker Change: To have Joel Your question. Please press star one again please.
Speaker Change: Please be advised that today's conference is being recorded.
Speaker Change: Now I'd like to turn the conference over to your speaker today, well to go from Investor Relations. Please go ahead.
Speaker Change: Thank you operator, welcome to Phoenix, New Medias earnings conference call for the first quarter of 2025 today's call will begin with an overview of our quarterly results followed by a Q&A session.
Speaker Change: Our quarterly financial results and the webcast of this conference call are available on our website at IR Diaphone Dot com.
Speaker Change: Before we continue please note the safe Harbor statement in our earnings press release, which applies to any forward looking statements made during this call.
Speaker Change: Unless otherwise stated all figures mentioned are in RMB.
Speaker Change: Joining me here today are our CEO, Mr <unk> and our CFO Mr. Albert Lou.
Mr. Sun: I will now pass the call to Mr. Sun for his opening remarks, I will provide translation as needed.
Speaker Change: That's all changed.
Yeah.
Mr. Sun: Hum.
Mr. Sun: Paul.
Mr. Sun: The other end.
Mr. Sun: Alrighty guarantees evil, Andrew Zach will again turn shortly.
Mr. Sun: Yeah.
Mr. Sun: Well this is.
Mr. Sun: Stephen Chen Fu Sheng.
Mr. Sun: <unk>.
Mr. Sun: Sure.
Mr. Sun: Brian Chin.
Mr. Sun:
Mr. Sun: Hum.
It.
Mr. Sun: Well, maybe just to trade on the mainland.
Mr. Sun: You're all familiar with.
Mr. Sun: Okay.
Uh-huh sources.
So I'm going to tell them Simba Shanghai resort.
Mr. Sun: So what we tend to be somewhat.
Toward accelerating.
Youll Ross Charlie sorry.
Mr. Sun: Gotcha.
Mr. Sun: <unk> welcome Sean.
Mr. Sun: And we'll talk to you.
Mr. Sun: Well she is involved.
Mr. Sun: Hello, everyone and welcome.
Mr. Sun: In Q1 2025.
Mr. Sun: Nixon media navigate a complex global and regional events consistently delivering authority reporting with unmatched speed and depth showcasing professionally inside and reinforcing our industry leader leadership.
Mr. Sun: If there was sustained content innovation will leverage our quality content creation and distribution capabilities to deliver value to users and advertising clients unlocking new commercial partnerships.
Mr. Sun: Looking to Q2, we will further deepen content innovation expand commercial opportunities and it has operational efficiency remaining committed to delivering long term value for investors.
Edward: Now I will buy at or Edward to provide a more detailed summary of our first quarter performance all might be half.
Speaker Change: Okay. Thank you Mrs.
The first quarter of 2025, we showcased strong momentum by leading breaking news.
Speaker Change: Driving content innovation and unlocking new commercial opportunities are.
Speaker Change: Our content team excelled Amit global trade volatility.
Speaker Change: No political turbulence.
Speaker Change: Actual disaster and the rapid rise of artificial intelligence consistently delivering also.
Speaker Change: Reporting with unparalleled speed and the depth.
Speaker Change: Across major Q1 events from South Korea, political upheaval to comps tariff escalation and the new energy vehicle <unk> co Sir.
Speaker Change: We were frequently to break as historic setting the pace for industry coverage.
Speaker Change: Our approach goes beyond hard lines.
Speaker Change: Moving into so Cortez personal stories and critical details that resonate with audiences.
Speaker Change: Fostering active user engagement through interactive formats.
Speaker Change: For instance.
Speaker Change: Our investigative series.
Speaker Change: Amps tariffs and Alere impact Asian markets alongside expose.
Speaker Change: For risks and deep six AI breakthroughs spot.
Speaker Change: <unk> vibrant discussions.
Speaker Change: <unk>, Hi, all major social media platforms.
Speaker Change: Manuel.
Speaker Change: The content innovation by developing unique IP.
To deliver exceptional value to users and the Brent.
Key highlight was the launch of Tc elites.
Speaker Change: Co creation model.
Speaker Change: Lending professional user generated content.
Speaker Change: Partnering with leading Kols and the kiosks.
Speaker Change: And the tech we crafted immersive experiences from a trade show tourists and factory deep types to industrial Park visits.
Speaker Change: <unk> highlighted corporate innovation operational strengths and the strategic vision significantly boosting.
Speaker Change: Chuck.
Speaker Change: And visibility.
Speaker Change: Equally compelling is our new color why it is which.
Speaker Change: Therapeutic with in depth look at pulp Mark artistic industrialization.
Speaker Change: And global ambitions.
Speaker Change: <unk> strongly with brands seeking innovative framework.
Speaker Change: <unk> garnered over 100 resultant wechat and widespread.
Speaker Change: Shares on social media, reflecting robust engagement and social impact we are confident lease serious well continue to gain momentum establishing a benchmark in a category.
Speaker Change: This content innovations translated directly into commercial success showcasing our ability to convert creative excellence into business value.
Speaker Change: A prime example is our tax channels passed laws FSD China.
Speaker Change: Within three hours, we connected with our owners and our board of cost.
Speaker Change: First to market live test.
Speaker Change: With exclusive footage driving attend.
Speaker Change: Attention and the endorsements from industrial leader.
Building on this our lives plus short video plus trending topics strategy skewed our comparative test of automakers intelligent driving systems.
Speaker Change: Spiking cost per platform Bob <unk>.
Including retreat from the CEO of top tier and EV maker.
Speaker Change: This approach allowed us to swiftly secure brand even partnerships with top industry player.
Speaker Change: Beyond high profile events were also unlocked value through authentic third tightening routine coverage.
Speaker Change: During the two sessions.
Speaker Change: We captured the authentic story of permanent industrial leader.
Herman: Herman of a leading global Corporation.
Speaker Change: Short videos that one barrel, reaching over 16 million views.
Speaker Change: Search elevated near <unk>.
Speaker Change: Personnel breath.
Speaker Change: Your company's visibility and self.
Speaker Change: It highlights a growing opportunity.
In our content expertise to craft, compiling insurer printer IP.
Speaker Change: As businesses prioritize authentic.
Speaker Change: Neither driven narrative clients are turning to us to amplify this starts creating new branding resources.
Speaker Change: Looking to Q2 2025, we will deepen our commitment to content innovation, creating more barrel.
To bolster user loyalty in our brand influence.
Speaker Change: We will keep delivering tailored high impact solutions for advertisers.
Speaker Change: Pending commercial avenues well.
Speaker Change: Well sharpen operational efficiency.
Our CEO Mr. <unk> prepared remarks, I will now walk you through our financial performance for first quarter of 2025.
Our total revenue or $155 2 million, representing a one 4% increase year on year from.
Speaker Change: $153 million.
Speaker Change: Specifically net advertising revenues or $125 million compared to $138 6 million in the same period of last year.
Speaker Change: Paid services revenues or.
Speaker Change: $34 $7 million.
Speaker Change: Representing a 141% increase year on year from $14 four minutes.
Speaker Change: Primarily driven by revenue generated from our digital reading services.
Speaker Change: Offered through mini programs on third party applications.
Speaker Change: Cost of revenues decreased by 13, 1% to $92 5 million from $109 million in the same period of last year.
Speaker Change: Total operating expenses or 100 and.
Speaker Change: The $1 one minute.
Speaker Change: Electing our 25, 6% increase year on year from $85 million.
Speaker Change: This increase was primarily due to higher sales and the marketing expenses incurred for the digital reading of services mentioned earlier.
Speaker Change: Loss from operations was 38 4 million.
Speaker Change: Compared to a $36 five minutes in the same period of last year.
Speaker Change: Net loss attributable to iPhone.
$9 7 million compared to 26 million in the same period of last year.
Speaker Change: Moving on to our balance sheet.
Speaker Change: As of March 31, 2025, the company's cash and cash equivalents term deposits short term investments.
Speaker Change: The restricted cash totaled $984 5 million.
Speaker Change: Approximately U S dollar $135 7 million.
Speaker Change: Finally, I'd like to provide our business outlook for the second quarter of 2025.
Speaker Change: We forecast total revenues to be between $182 1 million and the $197 one minute.
For net advertising revenues.
Speaker Change: Project between $148 $7 million and $158 7 million.
Speaker Change: Well for paid service revenues.
Speaker Change: Project between $73 4 million and $38 4 million.
Speaker Change: This forecast reflects our current and preliminary view, which is subject to change and the substantial uncertainties.
Speaker Change: This concludes the prepared portion of our call. We are now ready for questions.
Peter: Peter Please go ahead.
Peter: Thank you as a reminder to ask a question. Please press star one on your telephone and wafer your name to be announced two up showing a question. Please press star one again.
Please standby as we compile the Q&A roster.
Speaker Change: Our first question comes from Alex 10 of Us of Shanghai. Your line is now open.
Speaker Change: Good morning management.
I was just wondering could you please share some insight on the trends and outlook for the Companys advertising business in Q1 2025. Please thank you.
Hi, Bonnie.
Speaker Change: Thank you very much for the question.
Speaker Change: Exiting Q1 2025.
Speaker Change: Our advertising business.
Speaker Change: The severe challenges.
Speaker Change: But our team responded actively.
Speaker Change: Strong resilience.
Speaker Change: First well with a number of existing clients remained steady.
Speaker Change: Spending became clear spending became more cautious.
Speaker Change: Reducing average revenue per client.
Speaker Change: To address this.
Speaker Change: We focus on.
Speaker Change: Tracking new car and your revenue grew significantly balancing the decline from existing clients.
Speaker Change: Second.
Speaker Change: Some industries had a seasonal fluctuations.
For example.
Speaker Change: Alcohol advertising dropped sharply, but we expanded quickly in finance E Commerce consumer.
Speaker Change: Consumer goods and electronics.
Speaker Change: Achieving good progress.
Speaker Change: Also.
Speaker Change: Certain clients had strong demand by the Leer project required a high investment in our costs.
Speaker Change: We focused on refining our creative continental resources and events to increase our pricing premium.
Speaker Change: Looking to Q2.
Speaker Change: We are still cautious with marketing spending but.
Speaker Change: Moving compared to Q1.
Speaker Change: <unk>.
Speaker Change: Market research on <unk>.
Speaker Change: Yeah.
Speaker Change: Focusing more on brand value and media influence, we will continue to use our strength as a leading internet media platform offering high quality content and campaigns to create value for clients.
Speaker Change: Besides growing new industries and domestic clients.
Speaker Change: We are also exploring marketing partnerships with overseas companies in China.
Our team is dedicated to staying competitive in this market.
Alice Tan: Thank you Alice.
Speaker Change: Thank you that's really clear thank you.
Speaker Change: Thank you for the questions. This concludes the Q&A session I will now pass the conference back to Malta.
Speaker Change: Thank you we have now come to the end of our Q&A session Conference call. If you have any additional questions. Please don't hesitate to reach out to us. Thank you for joining us and have a great day.
Speaker Change: This.
Speaker Change: Today's conference call. Thank you for participating you may now disconnect.