Q1 2025 Zhihu Inc Earnings Call
Okay.
Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to the Jehol, Inc. First quarter 2025 financial results Conference call.
Speaker Change: This time, all participants are in a listen only mode.
Speaker Change: After the speaker's presentation, there will be a question and answer session. Today's conference is being recorded and webcast at at this time I would like to turn the conference over to you your long de Leon.
Speaker Change: But oh Investor Relations. Please go ahead maam.
Speaker Change: Thank you Heidi Hello, everyone.
Come to Tucows first quarter financial results conference call.
Speaker Change: Joining me today on the call from the senior management team are Mr. Julian founder, Chairman and Chief Executive Officer and Mr. At Wuhan, Our Chief Financial Officer before we begin I'd like to remind you that today's discussion will include forward looking statements made under the safe.
Speaker Change: Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties as such actual results may be materially different from the views expressed today.
Speaker Change: Further information regarding these and other risks and uncertainties is included in our public filings with the U S Security and Exchange Commission and the Hong Kong stock exchange.
Speaker Change: The company does not assume any obligation to update any forward looking statements, except as required under applicable law.
Speaker Change: Additionally, the discussion today will include both GAAP and non-GAAP financial measures what population purpose only.
Speaker Change: Where are we comfortable Asian of these non-GAAP measures to the most directly comparable GAAP measures. Please refer to our earnings release issued earlier today.
Speaker Change: In addition, a webcast replay of this conference call will be available on our IR website at IR Docs group, who dot com.
Speaker Change: I would now turn the call over to Mr. Wuhan CFO of cheerful Heim. Please go ahead.
Speaker Change: Thank you Yolanda Hello, everyone and thank you for joining Joe Who's first quarter 'twenty 25 earnings call I'm pleased to deliver today's opening remarks on behalf of Mr. Julien on their chairman and CEO of Yahoo.
Speaker Change: In the first quarter, we carried our momentum of improving profitability forward delivering another quarter of positive bottom line results in terms of non-GAAP net income significantly exceeded market expectations.
Speaker Change: This marks the first time, we have achieved a non-GAAP net profit in the first quarter of the year since our IPO.
Speaker Change: Adjusted net income for the quarter was RMB six nine minute compared with an adjusted net loss of RMB $135 7 million during the same period last year.
Speaker Change: This milestone reflects the continued execution and enhancement of our operating strategy as well as increased operating leverage enabled by AI integration.
Speaker Change: Have you been engaging discussions across virus professional people and continue to take place on at Yahoo platform, expanding the influence of our trustworthy content contributors within and beyond our community.
Speaker Change: Our time spent per D. A core user retention rate and creator, which activates all showed improvement in the first quarter.
Speaker Change: We're active in a housing.
Speaker Change: So as long as global.
Speaker Change: Ah experts passionate about sharing knowledge experience and insights forms a foundation of core advantage for our transition into the AI era.
Speaker Change: Okay.
Speaker Change: You asked man in and it's worse than of AI applications remains a top priority for us in our.
Speaker Change: First quarter, we launched our contributor attribution Fisher, a key step toward a broader integration of AI, which are committed.
Speaker Change: She building high quality content to contributor this feature further amplifies the influence of our extra network built over years of professional accumulation.
Speaker Change: This innovative feature helps reduce oh listen nation specialized them as it has been well received by users.
Speaker Change: We believe AI will cuddy wise, our rapid growth and three deep integration with our community enable us to expand our ratio of our differentiated value proposition high quality content, Charles Charles take greater network and AI capabilities to broaden it.
Speaker Change: Got it.
Speaker Change: The first quarter, we saw growth in both cotton consumption and creation, along with a strong stronger U a sense of community belonging.
Speaker Change: Increased engagement was evident in several of our key user metrics.
Speaker Change: Or a monthly active user base remains stable average daily user times timespan reached nearly 38 minutes up 17, 6% year over year.
Speaker Change: CT user retention rate improved both sequentially and year over year.
Speaker Change: So who has long been the go to platform for in jobs and vibrant discussion across a wide range of professional fields.
Speaker Change: We're seeing a robust flow of high quality content that both depends user trust and drives more exercising interactions.
Speaker Change: During the quarter I related professional content grow by 46% year over year.
Speaker Change: Our high quality content continues to rank highly on major search engines and is increasingly excited by large luxury models and AI powered search applications.
Speaker Change: According to cubic Research Institute.
Speaker Change: In professional domains.
Speaker Change: Since our site community platform content 60, 62, 4% at the time with few who ranking highest started almost four times as much as just number two platform highlighting the importance of content quality and professional credibility in the AI era.
Speaker Change: So who is he is emerging as a leading source of trustworthy professional content.
Speaker Change: The number of daily active high tier content creators continue to grow sequentially in Q1 with verified owner creators increasing 20% year over year.
Speaker Change: Our higher tier creators include France frontline experts in niche topics.
Speaker Change: AI or community not only discuss as macro level topics like Oh, EMS intelligent agents, but also times into foundation of technologies, such as embodied AI autonomous driving and mortar compression for example, G phone off senior IC and young Shaw top robotics contributor and a former Tesla engineer both chose <unk>, who is the first platform.
Speaker Change: These costs are startup journeys <unk>.
Speaker Change: <unk> founder of Star map Professor Joe Boyd of as you guys talk regularly.
Speaker Change: Poster tacked technical you sized hunter, who generating widespread discussion across the broader internet.
Speaker Change: He was parallel scaling lead author and core bite us tray in March called developers also used <unk> to share their ideas and development progress.
Speaker Change: The integration of AI within our community remains a priority this year.
Speaker Change: The use of the user base for <unk> that has grown steadily as a result by the end of March mostly active user grew over three 7% compared to the start up the quarter with improved usage frequency and user stickiness and high value feels like technology finance workplace in house.
Speaker Change: One of our next major updates will include a public knowledge base built on top of existing personal knowledge libraries, enabling professional content creators and extra network to deliver even greater value ESCO.
Speaker Change: Turning to commercialization.
Speaker Change: We remain committed to balancing commercial growth with protecting the integrity of our community and user experience.
Speaker Change: Our trustworthy content and active professional creator ecosystem in house commercial appeal of our brand and monetization potential.
Speaker Change: We believe a healthy and sustainable commercial fly well well overtime further drive user engagement and improve community vitality.
Speaker Change: In the first quarter, our total revenue was RMB $729 7 million down 15, 1% sequentially.
Speaker Change: Now turning to our performance by segment.
Speaker Change: And our first quarter revenue from our marketing services business reached RMB $197 million, representing a year over year decline of 44%.
Speaker Change: This decrease was primarily due to the adoption of trustworthy content model, which identifies and distributors, both commercial and organic content.
Speaker Change: As of the end of the quarter the consumption of low quality marketing costs declined by more than 90% of year over year.
Speaker Change: At the same time, we're optimizing our client mix seems at the beginning of a 105, we have expanded our experts facing client base working with partners such as always harmony OIS neck developers and China mobile cloud services unlocking the commercial value of <unk>.
Speaker Change: Our high quality user base and strong brand influence.
Speaker Change: Leveraging our trusted AI content framework library professional greater ecosystem. We're also helping brand partnerships core new AI application scenarios.
Speaker Change: And I'll turn it on five <unk> and then the theme AI technology AI life, we partner with brands, such as higher Gary Locke, and Baidu shall do to create immersive offline experience.
Speaker Change: As in the <unk> future question store.
Speaker Change: Based on user interaction data and insights we identified five key AI home appliance and AI labs, just teams, helping brand partnerships established credibility and improve the visibility of their next Gen Tech products.
Speaker Change: We are using this experience to accumulate valuable content and data assets for future AI use cases.
Speaker Change: Top tier AI related advertisers also remain active on our platform this quarter.
Speaker Change: Additionally, leveraging our in house AI capabilities, we continue to upgrade our marketing products.
Speaker Change: In Q1, we remain we maintain aloe it as one of the lowest historical level, while improving CPM performance across most product categories driving higher commercial efficiency for brand partners.
Speaker Change: Overall AG exposure volume remained stable ARPA increased steadily.
Speaker Change: As AI rapidly reshape counter distribution and brand marketing, Joe who is emerging as a key upstream node in assets balance sheet, driven power trustworthy content and network of professional creators in specialized fields.
We believe our marketing services business has reached a strategic inflection point.
Speaker Change: Once.
Speaker Change: <unk> is one of just under traditional commercial paradigm, it's not increasingly transforming into a structural advantages in AI era.
Speaker Change: Our paid membership business, we continue to prioritize ROI and user acquisition, resulting in improved return profile of new members. In this context, we're pleased that our average monthly paying members remained resilient in the first quarter are up by one 2% on sequential basis to $14 two minute.
Speaker Change: Our paid membership revenue was RMB $417 9 million remaining stable quarter over quarter.
Speaker Change: We continued to drive paid user conversation and conversion and engagement rates through our premium short form content and are actively exploring new pay kind of formats and monetization opportunities.
Speaker Change: Our racing highlights as to original audio drama Love with goes King over three lifetimes debit trauma popular sorry by Union writer.
Speaker Change: <unk> released the serious quickly rose to the top opportunity charging Aladdin.
Speaker Change: And late in the weekly streaming rankings.
Speaker Change: Building on the struggle than some of our short form content. We are also expanding into longer form content.
Speaker Change: On May eight we launched a series of four of Unionist already long form writing medicine as this month's competition doesn't even wider submissions of high quality long form showers across internet.
Speaker Change: This is fischer for creative categories, including historical fiction mystery women's fiction.
Speaker Change: Speculative fiction with a price of RMB 100000, a top risers.
Speaker Change: Going forward, we will continue to leverage a combination of premium Shah form our mutual long form content to fulfill the needs of our more diverse audience reinforcing <unk> leadership ratings.
Speaker Change: Trading space.
Speaker Change: Yeah.
Speaker Change: Lastly, our vocational training business recorded revenue of RMB $94 5 million in Q1 down 35% year over year.
Speaker Change: This performance reflects our ongoing strategic transformation of the vocational training business, leveraging our high quality content ecosystem and trusted professional creator network.
Speaker Change: Shifting away from our traditional subject base expansion model, which focus on a few core categories towards more socially interactive and knowledge sharing driven one.
Speaker Change: This transaction is expected to further enhance our.
Speaker Change: Operational efficiency and profitability over time.
Speaker Change: Our core App.
Speaker Change: Information is our goal to empower professional creators.
Speaker Change: Product development will increasingly focus on integrating paid knowledge content with social interactions. For example, a column product can not only better addressed in learning and knowledge needs of users, but also enable creators to publish in depth exercise.
Speaker Change: Miles driven content or building their own communities and amplifying their personal influence.
Speaker Change: Going forward, we will continue to build on this new business model is expanding our product and service offerings while.
Speaker Change: Well for unlocking the value of <unk>, who has high quality content and trusted Qunar network.
Speaker Change: As we move forward into two 105, and we remain determined to capitalize on a historic opportunity creating by AI.
Speaker Change: Building on our strong foundation of community Trust, we will further enhance connections and engagement more high value user base.
Speaker Change: Accelerating the synergy just take evolution of high quality content.
Speaker Change: Is it greater now work in AI resume capabilities, we aim to continuously strengthen <unk> competitive advantages and deepen our competitive advantage in the AI area.
Speaker Change: We believe this strategy will position <unk> for sustained leadership in a nice generation of intelligent content platforms. This concludes Mr. Julia's remarks.
Speaker Change: Now I will review the details of our first quarter financials for a complete overview of our first quarter 2005 results. Please refer to our press release issued earlier today.
Speaker Change: Yeah.
Speaker Change: In the first quarter, we achieved non-GAAP profitability and expanded our gross margin as we continue to execute strongly and enhanced operational efficiency.
Speaker Change: We're encouraged by the progress we made to start off the year I remain firmly focused on building. Upon this momentum to lay a stronger foundation for sustainable growth.
Speaker Change: Our turnaround or per quarter.
Speaker Change: RMB $729 7 million compared with RMB $960 9 million in the same period of 234.
Speaker Change: The decrease reflects the ongoing adjustments to our business and our strategic focus on improving revenue quality and mix.
Speaker Change: Our marketing services revenue for the quarter was RMB $197 million.
Speaker Change: Compared with RMB $330 5 million in same period of 204.
Speaker Change: Chris was mainly driven by our proactive ongoing optimization of service offerings to strategically expand margins.
Speaker Change: Payment machine revenue were RMB, $417 9 million compared with RMB $449 7 million in the same period of 204.
Speaker Change: The average monthly subscribing members declined slightly year over year, the increase by one 2% sequentially.
Speaker Change: Globally user engagement with premium content remains strong remained strong throughout the quarter reinforcing the value of our content ecosystem.
Speaker Change: Okay sure and training revenue was RMB $94 5 million compared with RMB 145.
Speaker Change: One 4 million in the same period to 104.
Speaker Change: The decrease was primarily due to our strategic refinement of acquired business as we continue to prioritize faster growing self operated programs.
Speaker Change: Other revenues were RMB 23 million compared with RMB $35 2 million in the same period up to that before.
Speaker Change: Our gross profit for the quarter was RMB 4400, $51 1 million compared with RMB $543 5 million in the same period of 2024.
Speaker Change: Supported by improved operational efficiency, our gross margin expanded by five 2% percentage points year over year, reaching 61, 8%.
Speaker Change: Our total operating expenses for the quarter declined by 34, 4% year over year to RMB $503 7 million.
Speaker Change: This decrease reflects better cost management and ongoing efficiency improvements driven by technology innovation.
Speaker Change: Selling and marketing expenses decreased by 32, 9%.
Speaker Change: 300 to RMB 326 million from RMB $478 million in the same period of 204.
Speaker Change: The decrease was primarily due to the more disciplined promotional spending and a decrease in personnel related expenses.
Speaker Change: R&D expenses decreased by 28, 1% to RMB $141 9 million from RMB $197 4 million. This imperative for the decrease was primarily driven by more efficient spending on technology innovation.
Speaker Change: G&A expenses decreased by 55, 6% to RMB $41 2 million from RMB $92 9 million in the same period of 2024.
Speaker Change: As a result, our GAAP net loss for the quarter narrowed by 93, 9% year over year.
Speaker Change: non-GAAP basis, we remained profitable for the second consecutive quarter recording adjusted net income of RMB $6 9 million compared with an adjusted net loss of RMB $135 seven minute in the same period of 2024.
Speaker Change: As of March 31, 25, we have the cash and cash equivalents term deposits restricted cash and short term investment of RMB, four 8 billion compared with RMB four 9 billion as of December.
Speaker Change: The first 100.
Speaker Change: Four.
Speaker Change: As of May 26, 25.
Speaker Change: Purchased $31 1 million class a ordinary shares for it.
Speaker Change: Aggregate value of just under $66 5 million or other market.
Speaker Change: We also repurchased a total of $17 8 million class a ordinary shares for aggregate value of U S. Dollar $26 9 million through the trustee of the company.
Speaker Change: In addition, the board has approved a new 205 share repurchase program, which will be effective until.
Speaker Change: June 'twenty five 'twenty.
Speaker Change: <unk> six with a maximum repurchase size at 10% of total issued shares subject to shareholder approval at our upcoming annual general meeting.
Speaker Change: Looking ahead, we will continue strengthening our commercialization capabilities and capitalizing on our long term growth potential within our community. Our goal remains clear to drive sustainable growth and profitability and to deliver lasting value to our shareholders. This concludes my prepared remarks on our financial performance for the quarter, let's turn to <unk>.
Speaker Change: Call over to the operator for our Q&A session.
Speaker Change: Thank you we will now begin the question and answer session. If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again in the interest of time. Please.
Speaker Change: One question each time, if you have any follow up questions. Please go back into the queue. Thank you.
Speaker Change: Okay.
Speaker Change: We will take our first question.
Speaker Change: Yeah.
Operator: Your first question comes from the line of seeking Zhang from CIBC. Please go ahead. Your line is open.
Speaker Change: Okay. Yeah go ahead and transition of let's.
Bonnie Zhang: Bonnie Zhang Chairman and John <unk>.
Bonnie Zhang: Two quarter addresses on the CAGR Nikola yes.
Glen: Glen you Jakarta ECH downhill.
Speaker Change: Let me start with Op, Inc will ship to Hawaii.
Speaker Change: Yeah, I think with what you saw out Mclean.
Glen: <unk>.
Josh: Josh approaching the issue of Chile.
Glen: Pencil.
Speaker Change: Thanks management for taking my question.
Speaker Change: <unk> mentioned about to close the strategic plans in the prepared remarks, and also share some metrics and they own their feedback on chita.
Speaker Change: It sounds like.
Speaker Change: And not only a product opportunity.
Speaker Change: So what other initiatives can we expect next.
Speaker Change: Parsley zinc.
Speaker Change: Committee and beyond thanks.
Speaker Change: Hi, Susan.
Speaker Change: Anthony <unk> with Sidoti.
Speaker Change: The opinion.
Speaker Change: Morris.
Speaker Change: Santa Clara Pedantic Sundar.
Speaker Change: I mean, that's I asked on the Italian Pizza I think a concern.
Speaker Change: Just a question around <unk>.
Speaker Change: What changed.
Speaker Change: Donnelley and took a patent within our success scale.
Jeff: Thank you for your question shifting this is from Jeff with CEO Joliet and so on.
Speaker Change: Macro level, we expect over next two years the intelligence selling off some AI models, well continue rising so our strategic focus in AI centers around trustworthy content and other expert network in fact.
Speaker Change: We believe this can be summarized as a simple formula trustworthy content time community expert network type AI capabilities equals to a scalable growth path.
Speaker Change: Swain.
Speaker Change: Yes.
Speaker Change: So eagle.
Speaker Change: So should I add other sources such as <unk>.
Speaker Change: <unk> young.
Speaker Change: Central America somewhat important.
Speaker Change: So let me dig a hole subsidy offered at justice.
Speaker Change: So of course enjoying your procurement talent frankly.
Speaker Change: While much has been made with digital.
Speaker Change: It also had a singular if I may.
Speaker Change: Starting on the single now cutoff will pay more than <unk> thousand attrition shadow.
Speaker Change: No comment on EMEA procedural things that is a concern to me more of an anomaly charter today for you so much confidence.
Speaker Change: Okay.
Speaker Change: As you just mentioned that you that truly <unk> surf and AI interface.
Speaker Change: The entire community of that.
Speaker Change: You could say a new entry point to our community.
Speaker Change: What you are seeing today is only a partial realization of observation in fact, how our users are engaging in Debbie access was with it is providing us with invaluable feedback.
Speaker Change: We didn't choose to rollout a serious of a cookie cutter were repeated us think features.
Speaker Change: Hence we believe many of these common functions well soon be overtaken by the rising intelligence selling of foundation models on the other we don't see value in customizing features just to showcase motto capabilities, if they don't provide lasting value too.
Speaker Change: Our users.
Speaker Change: So we end up at our company.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Can you just kind of a shortage of multimode fiber and I think the tablets in SaaS.
Speaker Change: Two of them.
Speaker Change: Yes.
Speaker Change: So fundamentally I believe there are two more fundamental tasks in the context.
Speaker Change: What I mentioned at least rapid model evolution.
Speaker Change: Yes.
Speaker Change: Tom Hogan, though the tenure changeover, so there's now a law.
Speaker Change: <unk> Susanne.
Speaker Change: In particular.
Speaker Change: Connor.
Speaker Change: <unk> <unk> <unk>.
Speaker Change: So you should see the data.
Speaker Change: First of all we are integrating more Oxford, it's Huawei.
Speaker Change: And you referred to as the expert not what <unk>, who expert network.
Speaker Change: Initial milestone here was to enable contributor attribution.
Speaker Change: Or traceability, which is now fully rolled out and has been positively.
Speaker Change: Seek to buy average users. We will continue we will definitely continue integrating on these fronts.
Speaker Change: Okay.
Speaker Change: <unk> gotten a little while.
Speaker Change: Total.
Speaker Change: Taken a bunch of them.
Speaker Change: Thank you our question.
Speaker Change: They're on a grammar.
Speaker Change: Yes.
Speaker Change: Zebra.
Speaker Change: Add to that just accrual.
Speaker Change: Yes.
Speaker Change: <unk> <unk> at <unk>.
Speaker Change: Okay.
Speaker Change: Second we aim to aggregate more high quality content. So our next step is to launch public knowledge basis, which will help us scale up our library of trustworthy content.
Speaker Change: We plan to introduce extra.
Speaker Change: Expert knowledge basis.
Speaker Change: Diversified.
Speaker Change: Sectors during the upcoming go call it the college entrance examination season.
Speaker Change: And in China, providing reliable support for students in making informed decisions.
Speaker Change: That's just not too long.
Andre: Andre I will.
Speaker Change: At times.
Speaker Change: Thanks.
Speaker Change: Hey, Bill.
Speaker Change: Cynthia do online Sangamo Jolla Chicago.
Speaker Change: Zander.
Speaker Change: <unk> product turns out one.
Speaker Change: That's another title bleeding shots on goal.
Speaker Change: How are you.
Speaker Change: Good luck.
Speaker Change: Okay.
Speaker Change: Looking at both.
Speaker Change: Both of this <unk>.
Speaker Change: <unk> will continue to involve themselves.
Speaker Change: The extra network primarily.
Speaker Change: Manifests through content, but what is the development of agent based technology.
Speaker Change: <unk> of the expert network may increasingly extends beyond content itself and the inter.
Speaker Change: New stage.
Speaker Change: The evolution. Thank you for your question again.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: We will take our next question.
Speaker Change: Your next question comes from the line of Lincoln, calling from Goldman Sachs. Please go ahead. Your line is open.
Speaker Change: Okay great.
Speaker Change: So in general or do you know what they want to continue to grow Yahoo.
Speaker Change: Switch to Shaw <unk> charter musical Yogurts and John.
Speaker Change: Sure.
Speaker Change: To be sure transformation.
Speaker Change: With your question good core franchise. So thank you management for taking my questions. My question is about the user and the community.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Sure Jonathan.
Speaker Change: Suddenly turn out.
Speaker Change: <unk>.
Speaker Change: At one time type of decisions on the surface IL.
Speaker Change: Ginger.
Speaker Change: So shouldn't your whole claim authentic possible.
Speaker Change: Tony I was just curious how you are or hundreds of I'm not so sure that chisholm such as the semiannual Dan.
Speaker Change: Just a follow you chip.
Speaker Change: Thank you for your question Ken.
Speaker Change: Yeah.
Speaker Change: As you May know our current priority is the quality of our entire ecosystem.
Speaker Change: Since last year with <unk>.
Speaker Change: This strategy with strong conviction well overall community do this go has remained quite stable.
Speaker Change: What's more important here is that all key user health metrics have continued to improve and we're seeing a stronger and a more engaged community atmosphere. This is very much in line with our expectations.
Speaker Change: Walmart Sandro <unk>.
Speaker Change: Do you see that.
Speaker Change: Interesting.
Speaker Change: As I said the.
Speaker Change: First on the agile <unk> such as syntax.
Speaker Change: The key the Pilbara.
Speaker Change: Since it is not a fan queena.
Speaker Change: Something called I suggest that kind of come down.
Speaker Change: Okay.
Speaker Change: Just last week, we wrapped up the 11th two full years knowledge conference I think changes in getting an alpha and on site. We heard a lot of positive feedbacks from long time, and the new creators alike, including many who have been contributing to Q4 for over a jacket.
Speaker Change: This kind of early positive momentum is encouraging.
Speaker Change: I believe that incremental changes well compile into many false breakthroughs and over time, we'll see greater returns.
Speaker Change: Well then.
Speaker Change: Due to the use of that scenario.
Speaker Change: Hi, I'll take <unk>.
Jacob: Ballpark Jacob.
Speaker Change: So forget the ladies and gentlemen.
Speaker Change: Jill sando that won't be tons out I'll tell you at the top of our vessels.
Speaker Change: That will then Chisholm.
Speaker Change: That's what his engine hub changing the changzhou pudong somebody at sometimes how guara pattern.
Speaker Change: Boundary to ship.
Speaker Change: In the first quarter the number of some of our professional creators honored under our key programs such as outstanding contributors rising contributors blue label professionals and the navigators grew significantly year over year.
Speaker Change: These creators are expanding your influence both within Comanche and beyond.
Speaker Change: As evidenced.
Speaker Change: Evidenced by interactions per creator and proposed serving more than 45% and 95% year over year, respectively.
Speaker Change: Okay.
Speaker Change: Cindy Holt hurtful as synergies China herself.
Speaker Change: The trend yet.
Speaker Change: Sorry, I apologize the tundra tundra tundra hunting.
Speaker Change: Associated with how much do you want to.
Speaker Change: Pudong facility faster.
Speaker Change: First a question on your last year level, yes, we kind of China in terms of how you also suffered from Crestwood tundra.
Speaker Change: China is how much of the shops have under armour, yet that digital cashless tons out yet.
Speaker Change: Central Africa, Antonio hopefully dosing.
Speaker Change: Okay.
Speaker Change: We also upgraded Albert column and idea of features to better support both long and short form content professional concentration and offer it in true channels for interaction and amortization.
Speaker Change: Thank the roll out of new column feature in March.
Speaker Change: <unk> achieved two consecutive months of rapid growth in both content creation and user consumption. Likewise, the volume the ideas generated by professional creators surge in the first quarter showing exceptionally user engagements. Thank you.
Speaker Change: You.
Speaker Change: Thank you.
Speaker Change: We will take our next question.
Speaker Change: Your next question comes from the line of Thomas Chong from Jefferies. Please go ahead. Your line is open.
Speaker Change: Thank you for attending.
Scott: Otherwise this Scott good morning, ladies and gentlemen.
Speaker Change: Yeah.
Speaker Change: Quite a solid tissue.
Speaker Change: Wow.
Speaker Change: As for myself.
Speaker Change: This is my question. So my question is how.
Speaker Change: So could management share some color on his avid insurance for each business segment.
Speaker Change: That clarifies.
Speaker Change: The profit.
Speaker Change: Okay.
Speaker Change: Well continue in Indiana.
Speaker Change: I know when you hydro will materially turn I'm sorry emotionally.
Speaker Change: On the phone so you shouldn't have homosexual Michael Halloran with.
Speaker Change: Can prevent dot com, so we're starting to come back or something youre going to meet changing a chance silicones with Panama, China theaters.
CFO Hwang: Thank you for your question. This is from <unk> <unk> with CFO Hwang.
Speaker Change: 25 is another very important year for our business model optimization for us our key focus is to further align our community ecosystem with other commercial operation, while enhancing their brand commercial value and pricing power.
Speaker Change: <unk> build a more sustainable long term business a flywheel.
Joe Mchugh: So Joe Mchugh, either through the range of 20.
Joe Mchugh: And so it's really about connecting into <unk>.
Joe Mchugh: Taken together.
Speaker Change: Although our Q1 revenue declined year over year, but each of our business streams is entering a new phase of growth.
Speaker Change: Growth with involving monetization model.
Speaker Change: I was wondering so who while median condo digitally on their own shareholding and finish with an update on delivery came from Nicole would you grow your policy on the science.
Speaker Change: Could you comment on LNG.
Speaker Change: Yeah, Hey on Dallas, and you guys I mean, if you will.
Speaker Change: For other margin services it has been evident.
Speaker Change: Relatively low quality marketing content consumption has dropped to very low level and we are now seeing are accelerated momentum in both.
Speaker Change: Client mix up Tonight optimization, and commercial product updates on top of that AI is unlocking new marketing and product opportunities.
Speaker Change: Yeah, we're not we're major countries challenge driven company and if I can I put you that's actually what was that for you.
Speaker Change: In terms of our paid membership we are broadening our content offering to include a mix of a premium short form and mid to long form content, yes, stretchy strengthens.
Speaker Change: Competitive ash.
Speaker Change: In the in this sector.
Speaker Change: J J.
Speaker Change: I'm going to handle the Morpheus uncle, usually only see 101 was Amazon where should I mentioned turn on Kahala Appalachia to the ocean.
Speaker Change: For Alberta vocational training business.
Speaker Change: Are transitioning from a traditional model to a more socially engaging knowledge sharing model that better leverages our community strength.
Speaker Change: Now I'll, just toss in Pennsylvania, which youre, considering you wish or Youre postured to AI hershey's future hopefulness around the corner at all.
Speaker Change: On the.
Speaker Change: Innovation front, we remain disciplined with our investments.
Speaker Change: Particularly in AI, driven in Adas that align to our core strengths and content and community.
Speaker Change: So it shouldn't have that how is that when you add 20 soon thanks again.
Speaker Change: Gotcha.
Speaker Change: Albert.
Speaker Change: Ongoing ecosystem upgrades and AI English Adas com with both opportunities and challenges.
Speaker Change: <unk> will continue to see the quality of our union.
Speaker Change: Shimon to whole delivered is how is your goal would be what <unk>. How you see that you have.
Speaker Change: With continued.
Speaker Change: Operational refinements and a more.
Speaker Change: Granular management's execution, we're confident our financial performance well exceed our initial expectations for the year.
Speaker Change: Thank you. Thank you for your question.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Once again, if you wish to ask a question. Please press star one one on your telephone and wait for your name to be announced.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: We will take our next question.
Speaker Change: Your next question comes from the line of <unk> from Citi. Please go ahead. Your line is open.
Speaker Change: So as you go ahead, John just a little too low of course, you're going to tell you today.
Speaker Change: Well listen gentlemen, thank Jack.
Speaker Change: Monday.
Speaker Change: Sure we don't care about your father Samsung.
Speaker Change: Management for taking my question and congrats on the strong quarter.
Speaker Change: Management share some color and your thoughts about this shareholder return program. This year. Thank you.
Speaker Change: I assume you and Teva.
Tissue Zheng: Tissue Zheng.
Tissue Zheng: Would you watch in an intelligent way Bob.
Speaker Change: Thank you for your question Ricky.
Speaker Change: This year, we remain committed to enhancing shareholder returns through our share repurchase plan.
Speaker Change: Thank you James I'll, just sort of equation when children are now when you're in local county.
Speaker Change: We go to Washington, and Sanjay.
Tissue Zheng: Sure.
Tissue Zheng: Earlier today, our board approved 25 buyback plan authorizing a repurchase of up to 10% of our issued and outstanding shares.
Tissue Zheng: Let's say you have a name <unk>, Washington assumed unequivocal turned back on production <unk> decision.
Tissue Zheng: So we will execute the buyback in the open market on the back of the effort basis.
Tissue Zheng: We believe the current share price does not fully reflect that.
Tissue Zheng: The value of our company and this will underscore it's management's confidence in our long term success.
Tissue Zheng: Thank you again.
Tissue Zheng: Thank you.
Tissue Zheng: Yeah.
Speaker Change: That concludes today's Q&A session. At this time I will turn the conference back to your lunder for any additional or closing remarks.
Tissue Zheng: Okay.
Speaker Change: Thank you once again for joining us today, if you have any further questions. Please contact our IR team directly or Kristen advisory. Thank you. Thank you so much.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Tissue Zheng: Okay.
Tissue Zheng: [music].
Tissue Zheng: Okay.
Tissue Zheng: [music].