Q3 2025 Aurora Mobile Ltd Earnings Call

Since our analysts and only mode. After the speaker's presentation, there will be a question and answer session to ask a question. During this session you would need to press star one on your telephone you will then hear an automated message of bad thing you're hanging just raised and to withdraw your question. Please press star one again please.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your host today, Rene Vangese. Please go ahead, sir.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you would need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your host today, Rene Vanguestaine. Please go ahead, sir.

Today's conference is being recorded I would now like to turn the conference over to your host today.

Rene Bank has seen please go ahead sir.

Thank you Michelle Hello, everyone and thank you for joining us today.

Rene Vanguestaine: Thank you, Michelle. Hello everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at irguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer, Mr. Shan-Nen Bong, Chief Financial Officer, and Mr. Guan Yang Chen, General Manager. Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the US Private Securities Litigation Reform Act of 1995.

Rene Vangese: Thank you, Michelle. Hello, everyone, thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.jiguang.cn. On the call today are Weidong Luo, Chairman and Chief Executive Officer, Shan Nanbong, Chief Financial Officer, and Guangyan Chen, General Manager. Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995.

<unk> earnings release was distributed earlier today and is available on the IR website at <unk> Dot C.

On the call today I'm, just so we don't rule, chairman and Chief Executive Officer.

Mr Shan Nen, Bong, Chief Financial Officer, and Mr. Guan Yung Chen General manager.

Following their prepared remarks, there will be available to answer your questions. During the Q&A session that follows.

Before we begin I'd like to remind you that this conference call contains forward looking statements within the meaning of section 21 E of the Securities Exchange Act of 1934.

As a mandate and as defined in the U S. Private Securities Litigation Reform Act of 1995.

These forward looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results performance or achievements to differ materially from those in the forward looking statements.

Rene Vangese: These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, and/or factors are included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under applicable law. With that, I would now like to turn the conference over to Mr. Luo. Please go ahead.

Rene Vanguestaine: These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, and/or factors are included in the company's filings with the US Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under applicable law. With that, I would now like to turn the conference over to Mr. Luo. Please go ahead.

Further information regarding these and other risks uncertainties and or factors are included in the company's filings with the U S Securities and Exchange Commission.

The company does not undertake any obligation to update any forward looking statement as a result of new information future events or otherwise, except as required under applicable law.

With that I would now like to turn the conference over to Mr. Luo. Please go ahead.

Thank you Sir.

Weidong Luo: Thanks, Rene. Greeting to all. Welcome to Aurora Mobile's 2025 Q3 Earnings Call. Before I comment on our Q3 results, I would like to remind everyone that the quarterly earnings deck is available on our IR website. You may refer to that as we proceed with the call today. Without further ado, let's get started. As we did in the past, based on the Q3 earnings numbers, the suitable description I will give to the full quarter result is good things come in pairs. We record the first ever back-to-back quarterly net GAAP profit in our history. Following the maiden net GAAP profit last quarter, our strong business performance carry us across the line again in Q3. Let me elaborate more on the strong business we have had in this quarter.

Hello.

Weidong Luo: Thanks, Rene. Good evening to all. Welcome to Aurora Mobile's 2025 first-quarter earnings call. Before I comment on our Q3 results, I would like to remind everyone that the quarterly earnings data is available on our IR website. You may refer to the data as we proceed with the call today. Without further ado, let's get started. As we did in the past, based on the Q3 earnings numbers, the suitable description I will give to the first-quarter result is good things come in pairs. Because we record the first-ever back-to-back quarterly net GAAP profit in our history, following the maintenance net GAAP profit last quarter, our strong business performance carried us across the line again in Q3. Let me elaborate more on the strong business we have had in this quarter.

Welcome to our own La bus Transit times, if I first quarter earnings call.

Before I comment on our Q3 results.

I would like to remind everyone that the quarterly unless that is available on our IR website.

You may refer to that as we proceed with the call today.

Without further Ado, let's get started.

Yeah.

As we did in the past.

Just on the Q3 earnings numbers.

So the broad discretion I will give the go to the first quarter result is <unk> <unk>.

Because we record the first ever Petro bet cadre net GAAP profit in our history.

Following the amendment net GAAP profit last quarter.

Our strong business performance carry us across the line again and carefully.

Let me elaborate more on the strong business that we have had in this quarter.

Firstly, the gross revenue this quarter over <unk>, $19 9 million, achieving a remarkable 15% year over year at 1% sequential growth.

Weidong Luo: Firstly, the group's revenue this quarter of RMB 19.9 million, achieving a remarkable 15% year-over-year and 1% sequential growth. This RMB 19.9 million was at the very high end of the guidance we have provided. Secondly, our global flagship product, EngageLab, continued its great momentum with another quarter of great numbers. EngageLab recorded very strong quarterly growth in customer number and contract value growth. In particular, EngageLab's ARR for September 2025 stood strongly and reached a new milestone at RMB 53.7 million. It has grown by 160% year-over-year. Thirdly, our financial risk management business had its best quarter yet, recording highest quarterly revenue of RMB 22.6 million with growth of 43% year-over-year. Fourthly, gross profit exceeded our expectations and grew strongly by 20% year-over-year, while achieving the highest gross profit for the past 15 quarters. Gross margin has also improved year-over-year and quarter-over-quarter.

Weidong Luo: Firstly, the group's revenue this quarter of CNY 19.9 million, achieving a remarkable 15% year-over-year and 1% sequential growth. This CNY 19.9 million was at the very high end of the guidance we have provided. Secondly, our global flagship product, EngageLab, continue its great momentum with another quarter of great numbers. EngageLab recorded very strong quarterly growth in customer number and contract value growth. In particular, EngageLab's ARR for September 2025 stood strongly and reached a new milestone at CNY 53.7 million. It has grown by 160% year-over-year. Thirdly, our Financial Risk Management business had its best quarter yet, recording highest quarterly revenue of CNY 22.6 million, with growth of 33% year-over-year.

These are only $19 9 million was at the very high end of the guidance we have provided.

Secondly, our global fresher product and gauge that continue is great momentum with another quarter of great numbers.

I can get you that record a very strong quarterly growth in.

Customer number and contract value growth.

In particular I can get you that for.

For September of 2020 Fi still strongly.

<unk> reached a new milestone RMB $53 7 million it has grown by 160% year over year.

Firstly, our financial risk management business had its best quarter, yet recording our highest quarterly revenue of RMB 22, 6 million with growth of 43% year over year.

Firstly gross properly.

Weidong Luo: Fourthly, gross profit exceeded our expectation and grew strongly by 20% year-over-year while achieving the highest growth, gross profit for the past 15 quarters. Gross margin has also improved year-over-year and quarter-over-quarter. Last but not least, having all the great number above is great. It's equally important that we are generating positive cash flow and in great cash position. Indeed, we are. The net operating cash inflow of CNY 23.3 million record the highest level since Q4 of 2020. It is very humbling for me to share with you all on yet another stellar quarterly financial results. As I mentioned in the pre-earnings call, achieving historical GAAP net profit was not easy.

Our expectation and grew strongly by 20% year over year, while achieving the highest growth gross profit for the past.

15 quarters gross margin has also improved the year over year and quarter over quarter.

Thus finalist.

Have a great number although it's great.

Weidong Luo: Last but not least, having all the great numbers above is great. It's equally important that we are generating positive cash flow and in great cash position. Indeed, we are. The net operating cash inflow of RMB 23.3 million recorded the highest level since Q4 2020. It is very humbling for me to share with you all on yet another set of quarterly financial results. As I mentioned in the pre-earnings call, achieving historical GAAP net profit was not easy. For us to have back-to-back GAAP net profit is simply a great achievement for Aurora Mobile. To achieve that, all the processes in the organization worked really well for the entire fourth quarter of 2025. Our hard work and commitment to SL throughout Aurora Mobile will not stop here. There are more we need to achieve together, and we will.

It's equally important that we are generate impressive cash flow a great cash position.

India we are.

The net operating cash inflow of renminbi plenty of <unk> media record the highest level since Q4 of 2020.

It is very humbling for me to share with you all.

Yes, and others there are quarterly financial results.

As I mentioned in the prior earnings call <unk> historical GAAP net profit it was not easy.

For us to have better back GAAP net profit is assembly of great achievement for our mobile to assure that order process in the organization will work really well for the entire fourth quarter of 2025.

Weidong Luo: For us to have back-to-back GAAP net profit is simply a great achievement for Aurora Mobile to ensure that all the process in the organization work really well for the entire full quarter of 2025. Our hard work and commitment to excel throughout Aurora Mobile will not stop here. There are more we need to achieve together, and we will. Short of giving our promise on this call, I'm truly hopeful for all the team's dedication on execution on our group's strategy and going forward. Now, let me share more on the individual business performance. Our total Q3 group revenue has grown both year-over-year and quarter-over-quarter. In particular, revenue grew 15% year-over-year, driven by strong numbers from Developer Services and Financial Risk Management business.

Our hard work and commitment to <unk> four.

<unk> mobile will not stop here.

Therefore, we need to achieve together and we will.

Short of giving our promised on this call I'm truly helpful for the team's dedication and execution on our growth strategy going forward.

Weidong Luo: Short of giving our promise on this call, I truly hope for all the team's dedication and execution on our group's strategy and going forward. Now, let me share more on the individual business performance. Our total Q3 group revenue has grown both year-over-year and quarter-over-quarter. In particular, revenue grew 15% year-over-year, driven by strong numbers from developer services and financial risk management business. Again, in this quarter, all business segments, namely developer subscription services, value-added services, and vertical applications, recorded solid acceleration with double-digit year-over-year revenue growth. This is the second consecutive quarter we have such a strong revenue growth momentum. Developer services revenue, which consists of subscription services and value-added services, increased by a strong 12% growth year-over-year and was flat quarter-over-quarter. Subscription revenue has solid revenue numbers, where it increased by 11% year-over-year and increased 7% quarter-over-quarter.

Now, let me share more on the individual business performance.

Our total Q3 revenue has grown both year over year and quarter over quarter. In particular revenue grew one 5% year over year, driven by strong numbers from developer services and financial risk management basis.

Again in this quarter, obviously, seven Lenny debatable subscription services value added services and vertical applications record story aspiration double digital year over year revenue growth. This is.

Weidong Luo: Again, in this quarter, all business segment, namely Developer Subscription Services, Value-Added Services, and vertical applications record solid acceleration with double digital year-over-year revenue growth. This is the second consecutive quarter we have such a strong revenue growth momentum. Developer services revenue, which consists of subscription services and Value-Added Services, increased by a strong 12% growth year-over-year and flat quarter-over-quarter. Subscription revenue had solid revenue numbers where increase by 11% year-over-year and increased 0% quarter-over-quarter. Value-Added Services revenue grew by an impressive 22% year-over-year, but decreased 34% quarter-over-quarter. Our core business Developer Subscription Services with revenue of CNY 57.3 million record year growth of 11% year-over-year and 7% quarter-over-quarter. The year-over-year revenue growth was mainly driven by increase in both customer numbers and ARPU.

Is the second consecutive quarter, we have.

Our strong revenue growth and momentum.

Developer services revenue, which consists of subscription services and value added services increased by a strong 12% growth year over year and flat quarter over quarter subscription revenue has solid revenue numbers.

It increased by 11% year over year increased 7% quarter over quarter value added services revenue grew by an impressive 22% year over year, but decrease 44% quarter over quarter, our core business developer subscription services with revenue of RMB $57 million record growth of 11%.

Weidong Luo: Value-Added Services revenue grew by an impressive 22% year-over-year but decreased 34% quarter-over-quarter. Our core business is Developer Subscription Services with revenue of RMB 57.3 million, recorded growth of 11% year-over-year and 7% quarter-over-quarter. The year-over-year revenue growth was mainly driven by increase in both customer numbers and output. Subscription revenue recorded the fifth consecutive quarter of RMB 50 million plus revenue, and reached its highest level in history in this quarter. Next, let me share more on our global flagship product, EngageLab, which continued its excellent growth acceleration part quarter after quarter since its introduction. Firstly, EngageLab's ARR has reached a new and important milestone of RMB 53.7 million marked in September 2025. This 160% year-over-year ARR growth was just impressive.

7% quarter over quarter.

Over year revenue growth was mainly driven by increase in both customer numbers are up.

Subscription revenue record.

<unk> consecutive quarter of Renminbi 50.

Weidong Luo: Subscription revenue record the fifth consecutive quarter of CNY 50 million-plus revenue and reached its highest level in history in this quarter. Next, let me share more on our global flagship product, EngageLab, which continue its excellent growth acceleration path quarter after quarter since its introduction. Firstly, EngageLab's ARR has reached a new and important milestone of CNY 53.7 million mark in September 2025. This 160% year-over-year ARR growth was just impressive. Secondly, we had another very strong quarter for EngageLab, where the cumulative contract value we had signed amount to CNY 128 million by the end of Q3 of 2025. In Q3 alone, we signed up more than CNY 15 million worth of new contracts. This is just outstanding. We do expect this revenue growth momentum to continue for the next 12, 24 months.

$50 million plus revenue and reached its highest level in his story in this quarter.

Yes.

Next let me share more on our global flagship global flagship product and get your debt, which continued its excellent growth acceleration path quarter after quarter since its introduction.

Firstly <unk>.

The ratio of new and important milestone of Renminbi 53, 7 million market in September 2025.

This 160 per se of year AOR growth, what's just impressive.

Secondly, we had another very strong quarter for engaged at rare that culminated with contract value. We have some amount to renminbi $120 million by the end of Q3 of 2025 in.

Weidong Luo: Secondly, we had another very strong quarter for EngageLab, where the cumulative contract value we had signed amounted to RMB 128 million by the end of Q3 2025. In Q3 alone, we signed up more than RMB 15 million worth of new contracts. This is just outstanding. We do expect this revenue growth momentum to continue for the next 24 months. Furtherly, global customers from all corners of the world continue to purchase our products and services. The customer number has increased by 156% year-over-year, reaching 1,312. This was driven by the continued progress we are making through our global go-to-market effort. Firstly, our EngageLab products and services are now sold to customers in more than 52 different countries and regions globally. This is a great testament that our global flagship product, EngageLab, is indeed a globally accepted product from customers originating from all four corners of the world.

In Q3 alone, which are up more than that maybe one 5 million worth of new contracts. This is just outstanding we do ask that this revenue momentum to continue for the next 12 24 months.

Further a global customer for Oklahoma after growth continue to purchase our products and services the customer number has increased by 100.

Weidong Luo: Thirdly, global customers from all corners of the world continue to purchase our products and services. The customer number has increased by 156% year-over-year, reaching 1,312. This was driven by the continued progress we are making through our global go-to-market effort. Firstly, our EngageLab products and services are now sold to customers in more than 52 different countries and regions globally. This is a great testament that our global flagship product, EngageLab, is indeed a globally accepted product from customers originating from all four corners of the world. Our global flagship product, EngageLab, has a very unique and different position in the market. We have been taking market share from competitors in all of the overseas markets we operated in. This is evident from the growth rate of EngageLab we have seen today.

56% year over year, reaching 1300 <unk> two well this was driven by the continued progress we are making for our global go to market effort.

Firstly, our engage in our products and services and also to a customer in more than 52 different countries and regions globally. This is a great Testament that our global fresher product and get you that is indeed, a growth pre accept the product from customers originated from.

All corners of the world.

Our global fresher product and get you that has a very unique and different position in the market.

Weidong Luo: Our global flagship product, EngageLab, has a very unique and different position in the market. We have been taking market share from competitors in all of the urban markets we operate in. This is evident from the growth rate of EngageLab we have seen today. From the market intelligence we have gathered, it shows that the demand for our EngageLab products and services remains strong. With this great result delivered by EngageLab, it once again reinforced my strong belief that this global flagship product is the tallest bell, as far as revenue growth is concerned for us in the next 12 months or 24 months. Within subscription revenue, some of the notable wins in the quarter include, but not limited to, DeepSeek, Shanghai Disneyland, BYD, and China Eastern Airlines, just to name a few. Value-added services revenue were RMB 7.1 million, increased by 22% year-over-year, but decreased by 34% quarter-over-quarter.

We have been taking market share from competitors in all of the oversea market that we operate in this is evident from the growth rate of engagement that we have today.

From the market intelligence that we have gathering it shows that the demand for our <unk> products and services remains strong.

Weidong Luo: From the Market Intelligence we have gathered, it shows that the demand for our EngageLab products and services remains strong. With this great result delivered by EngageLab, it once again reinforce my strong belief that this global flagship product is the top player as far as revenue growth is concerned for us in the next 12 months or 24 months. Within subscription revenue, some of the notable wins in the quarter include, but not limited to, DeepSeek, Shanghai Disneyland, BYD, and China Eastern Airlines, just to name a few. Value-Added Services revenue were CNY 7.1 million, increased by 22% year-over-year, decreased by 34% quarter-over-quarter. The solid revenue year-over-year growth was mainly due to the increase in new advertisers acquired between the years. The absence of traditional quarter online shopping festival result in the negative revenue growth sequentially.

With this great result delivered by and get you that it was again reinforced my strong belief that this global flagship product is the <unk>.

As far as revenue growth is a concern for us in the next 12 months.

24 months.

Within subscription revenue somewhat notable wins in the quarter include but not limited to <unk>.

Shanghai Disneyland.

And China Eastern Airlines just to name a few.

Value added services revenue were RMB.

<unk> $7 1 million increased by 22% year over year, but decreased by 44% quarter over quarter. The solid revenue year over year growth was mainly due to the increase in new of our titles acquired between the years. The upsides are traditional quarter online shopping first our result in a negative revenue growth sequentially.

Weidong Luo: The solid revenue year-over-year growth was mainly due to the increase in new advertisers acquired between the years. The absence of traditional quarter online shopping festival resulted in the negative revenue growth sequentially. Now, let me pass the call over to Shan-Nen, who will share more about the vertical application and other aspects of our financial performance for this quarter.

Now, let me pass the call over to Shannon, who will share more about your medical application and other aspects of our financial performance for this quarter.

Weidong Luo: Now, let me pass the call over to Xianying, who will share more about the vertical application and other aspects of our financial performance for this quarter.

Thanks, Bruce and next I'll go over the revenue for particular application that includes financial risk management and market intelligence.

Shan Nanbong: Thanks, Chris. Next, I'll go over the revenue for vertical application that includes Financial Risk Management and Market Intelligence. Overall, vertical application had a good quarter, where revenue grew both year-over-year and quarter-over-quarter. Within vertical application, Financial Risk Management recorded a significant 33% growth in revenue year-over-year and 3% quarter-over-quarter. Following the strong Q2, Financial Risk Management had a sequential excellent quarter. It has now the third consecutive quarters of revenue in excess of CNY 21 million under its belt. Another significant milestone for this business is that it recorded the highest quarterly revenue in history of CNY 22.6 million in this quarter. This 33% year-over-year revenue growth was mainly due to a strong 44% in customer number growth.

Shan-Nen Bong: Thanks, Chris. Next, I'll go over the revenue for vertical application that includes financial risk management and market intelligence. Overall, vertical application had a good quarter, where revenue grew both year-over-year and quarter-over-quarter. Within vertical application, financial risk management recorded a significant 33% growth in revenue year-over-year and 3% quarter-over-quarter. Following the strong Q2, financial risk management had its sequential excellent quarter. It has now the third consecutive quarter of revenue in excess of RMB 21 million under its belt. Another significant milestone for this business is that it recorded the highest quarterly revenue in history of RMB 22.6 million in this quarter. This 33% year-over-year revenue growth was mainly due to a strong 44% in customer number growth. The customers that we signed up or renewed in Q3 include, but are not limited to, Lufax, Xiaoying Credit, Ningbo Bank, and many more licensed credit and financial institutions throughout China.

Overall Whitaker application had a good quarter, where revenue grew both year over year and quarter over quarter.

We didn't put the application financial risk management and recorded a significant 33% growth in revenue year over year, and 3% quarter over quarter.

Following the strong Q2 financial risk management.

Excellent quarter.

Yes, now the third consecutive quarters of revenue in excess of <unk> $21 million under its belt.

Another significant milestone for this business is that you recorded the highest quarterly revenue in history of B $22 6 million in this quarter.

This 33% year over year revenue growth was mainly due to a strong 44% in customer number growth.

The customers that we sign up all renew in Q2 in Q3 include but not limited to lifting so in <unk> and going home and many more licensed credit in a financial institution throughout China.

Shan Nanbong: The customers that we signed up or renewed in Q3 include, but not limited to, Lxing, Xiaoyun Keti, Bank of Ningbo, and many more licensed credit and financial institutions throughout China. Market Intelligence revenue, on the other hand, decreased by 23% year-over-year and 2% quarter-over-quarter due to the continued weak demand for the Chinese APP data. This result is in line with our expectation. Next, I'll go over some of the P&L and balance sheet items. Our gross profit had a spectacular results too in this quarter, where it grew 20% year-over-year and 7% quarter-over-quarter. The CNY 63.8 million gross profit we had was also the highest gross profit for the past 15 quarters.

Market intelligence revenue on the other hand decreased by 23% year over year, and 2% quarter over quarter due to the weak the continuing weak demand for the Chinese ABP data and this result is in line with our expectation.

Shan-Nen Bong: Market intelligence revenue, on the other hand, decreased by 23% year-over-year and 2% quarter-over-quarter due to the continued weak demand for the Chinese APP data, and this result is in line with our expectation. Next, I'll go over some of the P&L and balance sheet items. Our gross profit had a spectacular result too in this quarter, where it grew 20% year-over-year and 7% quarter-over-quarter. The RMB 63.8 million gross profit we had was also the highest gross profit for the past 15 quarters. With the group revenues grew 15% year-over-year, yet our gross profit grew by 20% year-over-year, it shows that we had recorded very high margin revenue in this quarter. This is certainly a key target that we would like to maintain and extend beyond this quarter. On to operating expenses.

Next I'll go over some of the.

P&L and balance sheet items, our gross profit.

Spectacular results too in this quarter, where we grew 20% year over year and 7% quarter over quarter.

The <unk> $63 8 million gross profit. We had was also the highest gross profit for the past 15 quarters.

We do.

We had a group revenues grew 15% year over year, yet our gross profit grew by 20% year over year. It shows that we had recorded very high margin revenue this quarter.

Shan Nanbong: With the group revenues grew 15% year over year, yet our gross profit grew by 20% year over year. It shows that we had recorded very high-margin revenue in this quarter. This is certainly a key target that we would like to maintain and extend beyond this quarter. On to operating expenses. The Q3 operating expenses was at RMB 64.4 million, representing a 12.8% increase year over year and increase of 5.8% quarter over quarter. Operationally, our Q3 revenue grew by 15% year over year, while OpEx only grew by 12.8%. Overall, we are pleased to see how we have been controlling OpEx to support the double-digit revenue growth across all business line. I'll now dive deeper into the individual OpEx category.

This is certainly a key target that.

We would like to maintain and extend beyond this quarter.

Onto operating expenses. The Q3 operating expenses was at <unk> $64 4 million, representing a 12, 8% increase year over year, an increase of five 8% quarter over quarter.

Shan-Nen Bong: Q3 operating expenses was at RMB 64.4 million, representing a 12.8% increase year-over-year and an increase of 5.8% quarter-over-quarter. Operationally, our Q3 revenue grew by 15% year-over-year, while OPEX only grew by 12.8%. Overall, we are pleased to see how we have been controlling OPEX to support the double-digit revenue growth across our business line. I'll now dive deeper into the individual OPEX category. For R&D expenses, increased by 7% year-over-year to RMB 25.9 million, mainly due to the increase in staff costs and associated expenses. Technical service fee and cloud costs also contributed to the year-over-year increase in R&D expenses. Selling and marketing expenses increased by 19% year-over-year to RMB 26.6 million, mainly due to the increase in sales commission in line with revenue growth and the cash collection in this quarter.

Operationally, our Q3 revenue grew by 15% year over year, while Opex only grew by 12, 8%. Overall, we are pleased to see how we have been controlling opex to support the double digit revenue growth across all business lines.

I'll now dive deeper into the individual opex category.

For R&D expenses increased by 7% year over year to renminbi to $5 9 million, mainly due to the increase in staff cost and associated expenses.

Shan Nanbong: For R&D, expenses increased by 7% year-over-year to CNY 25.9 million, mainly due to the increase in staff costs and associated expenses. Technical service fee and cloud costs also contributed to the year-over-year increase in R&D expenses. Selling and marketing expenses increased by 19% year-over-year to CNY 26.6 million, mainly due to the increase in sales commission in line with revenue growth and the cash collection in this quarter. Marketing expenses for investment in global business expansion also contributed to the year-over-year increase in selling and marketing expenses. G&A expenses increased by 13% year-over-year to CNY 11.9 million, mainly due to increase in staff costs, professional fees, and better provision. Next, I'll share 3 very important KPI that we closely monitor.

Clinical service fee and cloud costs also contributed to the year over year increase in R&D expenses.

Selling and marketing expenses increased by 19% year over year to $26 6 million, mainly due to the increase in sales Commission in line with revenue growth and the cash collection in this quarter.

Marketing Sensus for investment in global business expansion also contributed to the year over year increase in selling and marketing expenses.

Shan-Nen Bong: Marketing expenses for investment in global business expansion also contributed to the year-over-year increase in selling and marketing expenses. G&A expenses increased by 13% year-over-year to RMB 11.9 million, mainly due to increase in staff costs, professional fees, and better provision. Next, I'll share three very important KPIs that we closely monitor. For NDR, which means Net Dollar Retention Rate, a commonly used KPI for SaaS companies, it stood at 104% for our core developer service business for the trailing 12 months ended 30 September 2025. This is the very first time where NDR numbers have exceeded the 100% milestone. The number says it all. It means customer retention rate coupled with the fact that our customers have increased their spending with us through upsell, upgrades, and expansion. This is the best testament of our sustainable SaaS business.

G&A expenses increased by 13%.

Year over year to renminbi, $11 9 million, mainly due to increase in staff costs professional fees and better provision.

Next I'll share three very important kpis, we closely monitor.

For LDR.

I mean net dollar retention rate a commonly used kpis for soft company stood at 104% for our core developers service business for the trailing 12 months ended.

Shan Nanbong: For NDR, which means net dollar retention rate, a commonly used KPI for SaaS companies, it stood at 104% for our core developer service business for the trailing 12 months ended 30 September 2025. This is the very first time where NDR numbers have exceeded 100% milestone. The number says it all. It means customer retention rate, coupled with the fact that our customer has increased their spending with us through upsell, upgrades, and expansion. This is the best testament of our sustainable SaaS business. Secondly, another important financial KPI for tracking the performance of SaaS company is total deferred revenue, which represents cash collected in advance from customers for future contract performance, which was at historical high of RMB 166.3 million. This higher deferred revenue balance is a hallmark of a high-quality, scalable business.

September 30 of two new 25, and this is the very first time, we're endear numbers has exceeded 100% milestone the.

The number of states at all.

Customer retention rate, coupled with the fact that our customer has increased their spending with us to upsell upgrades and expansion and this is the best estimate of our sustainable business.

Secondly, another.

Important financial keep you for tracking the performance of soft company is total deferred revenue.

Shan-Nen Bong: Secondly, another important financial KPI for tracking the performance of SaaS companies is total deferred revenue, which represents cash collected in advance from customers for future contract performance, which was at a historical high of RMB 166.3 million. This high deferred revenue balance is a hallmark of a high-quality, scalable business. It signifies strong customer loyalty, predictable future revenue, healthy cash flow, and an effective sales strategy. Thirdly, we continue to maintain a healthy AR turnover days level at 49 days, and this remains at an industry-leading level. We will continue to work hard to ensure we are actively and timely collecting cash from customers and, at the same time, mitigating the risk of bad and doubtful debts. On the cash flow, we recorded another great number. For the quarter ended 30 September 2025, we recorded net operating activities cash inflow of RMB 23.3 million.

Which represents cash collected in advance from customers for future contract performance mutual at historical high of <unk> $166 3 million.

And this higher deferred revenue balance is a hallmark of our high quality scalable business.

<unk>, a strong customer loyalties predictable future revenue healthy cash flow and effective stress.

Shan Nanbong: This signifies a strong customer loyalties, predictable future revenue, healthy cash flow, and effective sales strategy. Thirdly, we continue to maintain healthy AR turnover days level at 49 days, this remains at an industry-leading level. We will continue to work hard to ensure we actively and timely collecting cash from customers and at the same time mitigating the risk of bad and doubtful debts. On the cash flow, we recorded another great numbers. For the quarter ended 30 September 2025, we recorded net operating activities cash inflow of CNY 33.3 million. This is the best quarterly cash flow numbers we have since Q4 of 2020. On to balance sheet. Total assets were CNY 388.2 million as of 30 September 2025.

The strategy.

Thirdly, we continue to maintain healthy Ottoman with this level at 49 days.

And this remains at an industry leading level.

We will continue to work hard to ensure we actively and timely collecting cash from customers and at the same time mitigating the risk of bad and doubtful debts.

On the balance on the cash flow, we will record another.

Great numbers for the quarter ended September 30 of <unk> hundred five.

Net operating activities cash inflow of 20.

$23 3 million. This is the best quarterly cash flow numbers, we have since Q4 of 2020.

Shan-Nen Bong: This is the best quarterly cash flow numbers we have since Q4 2020. On to balance sheet. Total assets were RMB 388.2 million as of 30 September 2025. This includes cash and cash equivalent of RMB 141.2 million, accounts receivable of RMB 43.9 million, prepayments and other assets of RMB 15.7 million, operating lease right-of-use assets of RMB 15.9 million, fixed assets of RMB 2.9 million, long-term investment of RMB 113 million, goodwill of RMB 37.8 million, and intangible assets of RMB 11.5 million resulting from SanCloud acquisition in March 2022. Total current liabilities were at RMB 274.6 million as of 30 September 2025. This includes accounts payable of RMB 31.9 million, other operating lease liability of RMB 4.1 million, deferred revenue of RMB 166.3 million, and accrued liabilities of RMB 72.3 million.

Onto balance sheet.

Total assets were <unk>.

B tree at $8 2 million as of September <unk>.

Can you clarify this includes cash and cash equivalent of 114, $1 2 million accounts receivable of $43 9 million prepayment and other assets of $15 7 million operating lease.

Shan Nanbong: This includes cash and cash equivalent of CNY 141.2 million, accounts receivable of CNY 43.9 million, prepayments and other assets of CNY 15.7 million, operating lease right of use assets of CNY 15.9 million, fixed assets of CNY 2.9 million, long-term investment of CNY 113 million, goodwill of CNY 37.8 million, and intangible assets of CNY 11.5 million resulting from SendCloud acquisition in March 2022. Total current liabilities were at CNY 274.6 million as of 30 September 2025. This include accounts payable of CNY 31.9 million, other operating liability of CNY 4.1 million, deferred revenue of CNY 166.2 million, accrued liabilities of CNY 72.2 million.

The right of use assets of $15 9 million fixed assets of $2 9 million long term investment of one 3 million.

<unk> of $37 8 million in intangible assets of $11 5 million, resulting from central acquisition in March two.

Yeah.

Total current liabilities were $274 6 million as of September 32005, and this include.

Accounts payable of $31 9 million other operating.

And a lease liability of $4 1 million deferred revenue of $166 3 million accrued liabilities of $72 2 million.

And now let me take a few minutes here to recap the description.

Shan Nanbong: Now let me take a few minutes here to recap the description, "Good things come in pairs," that Chris mentioned at the beginning of this call. In this quarter, we have many great achievement that I would like to take a few minutes to reiterate. First, we achieved our very first back-to-back GAAP net profit in history. Number 2, our core Developer Subscription Services had its best revenue in history of 57.3 million, as did the Financial Risk Management business. Our flagship product, EngageLab, continued its expansion beyond the shores. Apart from great growth in customers number and contract value, EngageLab business reached another very important key milestone, where the ARR was at CNY 53.7 million in September 2025, representing a stunning 160% year-over-year growth. Gross profit grew 20% year-over-year and recorded its highest levels for the past 15 quarters.

Shan-Nen Bong: Let me take a few minutes here to recap the description, "Good things come in pairs," that Chris mentioned at the beginning of this call. In this quarter, we have many great achievements that I would like to take a few minutes to reiterate. First, we achieved our very first back-to-back GAAP net profit in history. Number two, our core developer subscription business had its best revenue in history of RMB 57.3 million, as did the financial risk management business. Our flagship product, EngageLab, continued its expansion beyond the shores. Apart from great growth in customers' number and contract value, EngageLab business reached another very important key milestone where the ARR was at RMB 53.7 million in September 2025, representing a stunning 160% year-over-year growth. Gross profit grew 20% year-over-year, and recorded its highest levels for the past 15 quarters.

Good things come in past that Chris mentioned at the beginning of this call in this quarter. We have many great achievement there, we'd like to take a few minutes to reiterate.

First.

We achieved a reference back to back GAAP net profit in history number two I'll call developer subscription business. It is best revenue in history of $57 3 million SP, the financial risk management business, our flagship product <unk> continues.

Pension beyond the shores.

Great growth in customers number in contract value.

And given that business reached another very important key milestone.

<unk> was <unk> $53 $7 million in September to integrating five representing spending 160% year over year growth.

Gross profit grew 20% year over year and recorded its highest levels.

For the past 15 quarters number five operating activities brought in net cash inflow offering be $33 3 million, our net dollar retention for core developers service record.

Shan Nanbong: Number five, operating activities brought in net cash inflow of RMB 33.3 million. Our NDR, net dollar retention, for core developer service recorded at the best number in history of 104%. Now let's turn to business outlook. Based on the current available information, the company sees the Q4 2025 revenue guidance to be in the range of RMB 94 million to RMB 96 million, representing a solid growth of 1% to 3% year-over-year compared to the same quarter 2024. The above outlook is based on the current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and customer demands, which are all subject to change. Before I conclude, I'll give a quick update on the share repurchase plan. In this quarter, ended 30 September 2025, we repurchased 4,000 ADS.

Shan-Nen Bong: Number five, operating activities brought in net cash inflow of RMB 33.3 million. Our NDR, net dollar retention for core developer service, recorded at the best number in history of 104%. Now, let's turn to business outlook. Based on the current available information, the company sees the Q4 2025 revenue guidance to be in the range of RMB 94 million to 96 million, representing a solid growth of 1% to 3% year-over-year compared to the same quarter 2024. The above outlook is based on the current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and customer demands, which are all subject to change. Before I conclude, I'll give a quick update on the share repurchase plan. In this quarter, ended 30 September 2025, we repurchased 4,000 ADS.

The best number in history of 104%.

And now let's turn to business.

Business outlook based on the color available information the company ceased the Q4 2025 revenue guidance to be in the range of renminbi $94 million to maybe 96 million, representing a solid growth of 1% to 3% year over year compared to the same quarter to engineering for.

The above outlook is based on the current market conditions and reflects the company's current and preliminary.

Estimate of the market and operating conditions and customer demands, which are all subject to change.

And before I conclude I'll give a quick update on the share repurchase plan in this quarter.

30 of 2025, we repurchased 4000 Evs.

Cumulatively, we have repurchased a total of 227000 agents since the start of our repurchase program.

Shan Nanbong: Cumulatively, we have repurchased a total of 327,000 ADS since the start of our repurchase program. Today, our board of directors of the company approved a share repurchase program whereby the company is authorized to repurchase up to $10 million worth of its ordinary share, including in the form of ADS during the 12-month period starting today. This is a 100% increase from the $5 million program we had previously. The company proposed repurchase may be made from time to time in the open market at a prevailing market price, in private negotiated transaction, in block trades, and/or through other legally permissible means, depending on the market conditions and in accordance with the applicable rules and regulation.

Shan-Nen Bong: Cumulatively, we have repurchased a total of 327,000 ADS since the start of our repurchase program. Today, our board of directors of the company approved a share repurchase program whereby the company is authorized to repurchase up to $10 million worth of its ordinary share, including in the form of ADS, during the 12-month period starting today. This is a 100% increase from the $5 million program we had previously. The company proposed repurchase may be made from time to time in the open market at a prevailing market price, in privately negotiated transactions, in block trades, and/or other legally permissible means, depending on the market conditions and in accordance with the applicable rules and regulations. The company's board of directors will review the share repurchase program periodically and may authorize adjustment in terms of size and terms.

And today, our board of directors of the company approved.

Share repurchase program, whereby the company is authorized to repurchase up to USD 10.

$10 million worth of ordinary shares including in the form of eds. During the 12 month period, starting today and this is a 100% increase from the <unk> dollars 5 million program, we had previously.

The company proposed repurchase.

Maybe made from time to time in the open market at prevailing market price in privately negotiated transaction.

Block trades and our other two other legally permissible means depending on market conditions and in.

Accordingly, the applicable rules and regulation.

The company's board of Directors will review the share repurchase program periodically.

Shan Nanbong: The company's board of directors will review the share repurchase program periodically and may authorize adjustment in terms of size and terms. The company expect to fund the repurchase out of its existing cash. This concludes our prepared remarks. We will be happy to take your question now. Operator, please proceed.

In may authorize adjustment in terms of size and terms the company aspect to fund the repurchase always existing cash.

Shan-Nen Bong: The company expects to fund the repurchase out of its existing cash. This concludes our prepared remarks. We'll be happy to take your question now. Operator, please proceed.

And this concludes our prepared remarks, we'll be happy to take your question now operator.

Please proceed.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced and to withdraw. Your question. Please press star one again.

Operator: Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Our first question will come from Calvin Wong with Spica Capital. Your line is now open.

Operator: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Our first question will come from Calvin Wong with Spica Capital. Your line is now open.

And our first question will come from Calvin Wong with FICA capital. Your line is now open.

Good evening management.

Thank you for taking my questions.

Calvin Wong: Good evening, management. Thank you for taking my questions. First of all, congrats for delivering another set of stunning results this quarter. I have only one question. Based on my reading of the earnings release, I noticed the strength of EngageLab business and how it strengthened the group's financial results. I would appreciate if management could tell us more about EngageLab and why the growth trajectory has been so strong since day one. Thank you.

Calvin Wong: Good evening, management. Thank you for taking my questions. First of all, congrats for delivering another set of stunning results this quarter. I have only one question. Based on my reading of the earnings release, I noticed the strength of EngageLab business and how it strengthened the group's financial results. I would appreciate if management could tell us more about EngageLab and why the growth trajectory has been so strong since day one. Thank you.

First of all congrats for delivering another outstanding result, this quarter.

I have only one question based on my reading of the earnings release I noticed that's occurring.

Engaged in that process.

And how is strengthened.

And as a result.

So I will appreciate if management could tell us more about that.

The growth trajectory has been so strong things day one thank you.

Let me take this call Kevin.

Shan Nanbong: Let me take this call. Hey, Calvin, good to hear from you again, and thanks for interest. I'll take your earlier statement about EngageLab growth trajectory has been strong since day one. This is factual, and we are very proud of the achievement since day one. For those listeners who have access to our ER deck that we have uploaded to the IR webpage, you can refer to, I think, slide 3, where we have the pictorial display or diagram of engagement of EngageLab business to date. One new particular data point that we have included in this quarter's earnings deck is the ARR, is the annual recurring revenue for EngageLab business. For the month of September 2025, the ARR was at CNY 53.7 million. This is a 160% jump from a year ago.

Good to hear from you again and thanks for interest.

Guan Yang Chen: Let me take this call. Kevin, good to hear from you again, and thanks for your interest. I'll take your earlier statement about EngageLab's growth trajectory has been strong since day one. This is factual, and we are very proud of the achievement since day one. For those listeners who have access to our deck that we have uploaded to the IR web page, you can refer to, I think, slide number three, where we have the pictorial display or diagram of EngageLab business to date. One new particular data point that we have included in this quarter's earnings deck is the ARR, the annual recurring revenue for EngageLab business. For the month of September 2025, the ARR was at RMB 53.7 million. This is a 160% jump from a year ago.

And I'll tell you our earliest statement about English, let Bruce trajectory has been strong since day, one and this is factual and we are very proud of the achievements since day one.

And for those listeners who have access to all that we have uploaded to the IR webpage. You can refer to I think slide number three where we have to Victoria display a diagram of Englishman of English lab business to date.

And one new particular data point out we are included in this quarter's earnings deck is the <unk> is the annual recurring revenue for <unk> business.

And for the month of September 25.

Was that <unk> would be $53 7 million and this is a 160% jump from a year ago and we are very encouraged by this number because it shows that our business has a very significant growth trajectory and we have made great revenue expansion in just 12 months.

Guan Yang Chen: We are very encouraged by this number because it shows that the business has a very significant growth trajectory, and we have made great revenue expansion in just 12 months. I would say the success of EngageLab is not by chance or that we are lucky. It was a result of endless improvement upgrades that we made to the product and service offering that helped us to acquire more new customers and retain existing customers globally. If we look back, when Chris decided to launch EngageLab back in Q4 2022, the mission was pure and direct, just to address our customers' main needs of reaching out and engaging with their users in a cost-efficient and effective manner.

Shan Nanbong: We are very encouraged by this number because it shows that the business has a very significant growth trajectory, and we have made great revenue expansion in just 12 months. I'll say the success of EngageLab is not by chance or that we are lucky. It was a result of endless improvement upgrades that we made to the product and service offering that help us to acquire more new customers and retain existing customers globally. If you look back when Chris decided to launch EngageLab back in Q4 of 2022, the mission was pure and direct, just to address our customers' main needs of reaching out and engaging with their users in a cost-efficient and effective manner.

I will say the success of <unk> is not by chance or that we're lucky.

As a result of endless improvement.

The bridge that we made to the product and service offering that help us to acquire more new customers and retain existing customers globally.

If you look back when Chris decided to launch <unk> lab.

Back in Q4 of 2022, the mission was pure and direct.

To address our customers' main needs of reaching out and engaging with users in a cost efficient and effective manner.

And true English, let our customer are able to reach and engage with users to any one or all of the following.

Shan Nanbong: Through EngageLab, our customers are able to reach and engage with their users through any one or all of the following messaging channels, such as app push, web push, email, SMS, WhatsApp, and OTP. Also from a technical standpoint, we have done all the heavy lifting for our customers too. To deliver the global solution for our customers, we have invested heavily in data facilities in eight cities globally. Just this week, we have launched a new data center in Turkey, further expanding our global infrastructure. That aside, we have also incorporated our notification channel for all different operating systems from iOS to Android, from HarmonyOS to others. It makes it easy and efficient for our customers to ensure that their notifications are delivered no matter where their users are and what phone they are using.

Guan Yang Chen: Through EngageLab, our customers are able to reach and engage with their users through any one or all of the following messaging channels, such as app push, web push, email, SMS, WhatsApp, and OTP. Also, from a technical standpoint, we have done all the heavy lifting for our customers too. To deliver the global solution for our customers, we have invested heavily in data facility in eight cities globally. Just this week, we have launched a new data center in Turkey, further expanding our global infrastructure. That aside, we have also incorporated our notification channel for all different operating systems, from iOS to Android, from Harmony OS to others. It makes it easy and efficient for our customers to ensure that their notifications are delivered no matter where their users are and what phone they are using.

Messaging channels such as.

Our push push email SMS whatsapp and otp.

And also from a clinical standpoint.

We've done all the heavy lifting for our customers to to deliver the global solution for our customers we have invested heavily in data.

<unk> globally.

And just this week, we have launched a new data center in Turkey.

Further our spending our global infrastructure.

That aside we have also incorporated our notification China for all different operating system.

IOS androids from harmony, who has to others and in mix.

It's easy and efficient for our customers to ensure that the our notification of deliver no matter, where the users are and what they are using and maybe you can think of English level is reached.

Guan Yang Chen: Maybe you can think of EngageLab as reaching your users without borders. For service-wise, we have received countless compliments from our customers that our customer service team are very responsive and deliver a much better service than our peers. This says a lot from a customer standpoint. When they encounter issues, they need solution. This is something that we can deliver, and we are proud of it. Therefore, with such a great value proposition where customers can get one-stop engagement platform and great services all wrapped in one, it is not hard to see why EngageLab has been able to deliver such great numbers quarter over quarter. Historical results aside, both Chris and myself have great hopes and confidence in the EngageLab business going forward.

Shan Nanbong: Maybe you can think of EngageLab is reaching your users without borders. For service-wise, we have received countless compliments from our customers that our customer service team are very responsive and deliver a much better service than our peers. This says a lot from customer standpoint. When they encounter issues, they need solutions. This is something that we can deliver, and we are proud of it. Therefore, with such a great value proposition where customer can get one-stop engagement platform and great services all wrapped in one, it is not hard to see why EngageLab has been able to deliver such a great numbers quarter over quarters. Historical results aside, both Chris and myself have great hopes and confidence in the EngageLab business going forward.

Switching your users without borders.

And for service Wise, we have received countless compliments from our customers that our customer service team are very responsive and there are much better than our peers.

And these days a lot from customer standpoint, and.

When they encounter issues Denny solution and is something that we can deliver and we are proud of it.

And therefore, we have such a great value proposition, where a customer can get one stop ambition platform and grid services all rep in one and it is not hard to see why <unk> has been able to deliver such a great numbers.

But over quarters.

Historical result of site and both Chris and myself had great hopes and confidence in the English for that business going forward.

As Chris rightly call during the call earlier and get you that is the cost barrier for revenue growth in the next 24 months.

Shan Nanbong: At least, as Chris rightly called out during the call earlier, EngageLab is the torchbearer for our revenue growth in the next 24 months. Kevin, hope this answer your question adequately.

Guan Yang Chen: As Chris rightly called out during the call earlier, EngageLab is the torchbearer for our revenue growth in the next 24 months. Kevin, hope this answers your question adequately.

And Kevin <unk>.

Your question adequately.

Great to hear that it's very clear thanks.

Calvin Wong: Great to hear that. It's very clear. Thanks.

Calvin Wong: Great to hear that. It's very clear. Thanks.

Okay.

Thank you and our next question will come from Jack Sun with Culling. We research your line is open.

Operator: Thank you. Our next question will come from Jack Sun with Goehring & Rozencwajg. Your line is open.

Operator: Thank you. Our next question will come from Jack Sun with Guling Wei Research. Your line is open.

Good evening Amtrak's Bancolombia research. Thank you management for taking my question congratulations on another good quarter.

Jack Sun: Good evening. I'm Jack Sun from Goehring & Rozencwajg. Thank you, management, for taking my question. Congratulations on another good quarter with solid earnings, in particular, two consecutive quarters with GAAP net profit. Well done. I have a question for the management. Help me to recap on what went well in Q3 that deliver another quarter with a GAAP net profit. Thank you.

Jack Sun: Good evening. I'm Jack Sun from Guling Wei Research. Thank you, management, for taking my question. Congratulations on another good quarter with solid earnings, in particular, two consecutive quarters with net profit. Well done. I have a question for the management. Help me to recap on what went well in Q3 that delivered another quarter with net profit. Thank you.

In particular, our two consecutive quarters with a guy that coffee right now.

Have a question for the management helped me to recap would go well when rail in Q3 that delivered another quarter with.

Our GAAP net market. Thank you.

Hey, Hi, Jeff Thanks for question.

Shan Nanbong: Hi. Hi, Jack. Thanks for your question. Yeah, it was a great quarter indeed. I think Chris mentioned we executed very well operationally, and everything just went well, and this flow on to our financials number that we have released earlier today. There are a couple things I can share more. Firstly, revenue in Q3 has been very strong. All business line recorded great year-over-year double-digit growth. What that mean is we are now head and shoulder above where we were a year ago. Both the subscription business and the Financial Risk Management recorded their own best revenue quarter in history. Equally important is the revenue by EngageLab, where it contributed RMB 13 million in this quarter alone, also a historical high. We grew our revenue not at the expense of sacrificing margins.

Yes, it was a great quarter indeed.

Guan Yang Chen: Hi, hi, Jack. Thanks for your question. Yeah, it was a great quarter, indeed. I think Chris mentioned we executed very well operationally, and everything just went well. This flowed on to our financials number that we have released earlier today. There are a couple of things I can share more. Firstly, revenue in Q3 has been very strong. All business lines recorded great year-over-year double-digit growth. What that means is we are now head and shoulders above where we were a year ago. Both the subscription business and the financial risk management recorded their own best revenue quarter in history. Equally important is the revenue by EngageLab, where it contributed RMB 13 million in this quarter alone, also a historical high. We grew our revenue not at the expense of sacrificing margins.

<unk>.

Chris mentioned, we executed very well operationally.

And everything just went well and this flow onto our financials number that we have released earlier today.

There are a couple of things I can share more firstly revenue in Q3 has been very strong all business line recorded great year over year double digit growth. What that means is we are now hit and show the above where we were a year ago.

And both the subscription business and the financial risk risk management recorded their own best revenue quarter in history.

Equally important is the revenue by English, let Wade contributed RMB $13 million in this quarter alone also a historical high.

We grew our revenue not at the expense of sacrificing margins. This is evident that while we grew our revenue.

Guan Yang Chen: This is evident that while we grew our revenue significantly, our gross profit reached the highest level for the past 15 quarters. At the same time, our gross margin increased year-over-year and quarter-over-quarter too. This is a really hard act to follow. Since revenue, gross profit grew at a faster pace than our OPEX, the US GAAP net profits is a certainty, which is why we had the second consecutive quarters of US GAAP net profit. Two other important and great KPIs that I would like to reiterate here. One is the NDR, where we reached 104% for our core developer subscription business. This is the very first time NDR exceeded 100%. What that means is simple and straightforward. Our customers have been buying more of our services between the periods through upgrades, upsells, and other services. This is a great number to have.

Shan Nanbong: This is evident that while we grew our revenue significantly, our gross profit reached the highest level for past 15 quarters. At the same time, our gross margin increased year-over-year and quarter-over-quarter too. This is a really hard act to follow. Since revenue gross profit grew at a faster pace than our OpEx, the U.S. GAAP net profits is a certainty, and which is why we had the second consecutive quarters of U.S. GAAP net profit. Two other important and great KPIs that I would like to reiterate here. One is the NDR, where we reached 104% for our core Developer Subscription Services. This is the very first time NDR exceeded 100%. What that means is simple and straightforward. Our customer has been buying more of our services between the periods through upgrades, upsell, and other services.

Significantly our gross profit reached the highest level for past 15 quarters.

At the same time, our gross margin increased year over year and quarter over quarter to <unk>.

And it's really hard to follow.

Since revenue gross profit grew at a faster pace than Opex. The U S. GAAP net profit is uncertainty and which is why we had our second consecutive quarters of U S. GAAP net profit.

And two other important and great Kpis I would like to reiterate here one is the LDR, where we reached 104% for our core <unk>.

Look we're a sufficient business and this is a breakfast time <unk> exceeded 100% and what that means is simple and straightforward our customer has been buying more of our services between the periods through upgrades upsell and other services and this is a great number to have.

And secondly is the deferred revenue balance of $166 3 million and other historical high balance in short we have $166 3 million worth of secure revenue that we can recognize in the future and the best part is we have already received the cash.

Shan Nanbong: This is a great number to have. Secondly is the deferred revenue balance of CNY 166.3 million, another historical high balance. In short, we have CNY 166.3 million worth of secure revenue that we can recognize in the future, and the best part is we have already received the cash. For this CNY 166.3 million, we don't even have to worry about cash collection effort or the risk of bad debt in the future. Managing cash flow has also yielded great results. In this quarter, we have net operating cash inflow of CNY 23.3 million, the highest level for the past 20 quarters, which is actually the 5 years, the past 5 years, the best results.

Guan Yang Chen: Secondly, it's the deferred revenue balance of RMB 166.3 million, another historical high balance. In short, we have RMB 166.3 million worth of secure revenue that we can recognize in the future. The best part is we have already received the cash. For this RMB 166.3 million, we don't even have to worry about cash collection effort or the risk of bad debt in the future. Managing cash flow has also yielded great results. In this quarter, we have net operating cash inflow of RMB 23.3 million, the highest level for the past 20 quarters, which is actually the past five years' best results. With that positive inflow of cash, our 30 September quarter-end cash balance has also climbed to RMB 141.2 million, the highest balance in the past 14 quarters. It improved by 40% year-over-year.

So for this $166 3 million, we don't even have to worry about cash collection effort or the risk of bad debt in the future.

And managing cash flow has also yielded great results in this quarter, we have net.

Operating cash inflow of $23 3 million the highest level for the past 20 quarters, which is.

Actually the five years the past five years, the best results and we have that positive inflow of cash our NIE 30 quarter end cash balance is also climbed to 141 2 million the highest balance in the past 14 quarters.

Shan Nanbong: With that positive inflow of cash, our 9/30 quarter-end cash balance has also climbed to CNY 141.2 million, the highest balance in the past 14 quarters. It improved by 40% year-over-year. As you can see, it's not hard for you or anyone to conclude that this quarter has been great. However, rest assured that we are not contented by the present. We need to move faster and expand more. Therefore, we will continue to invest as part of our global growth plan. Lastly, if time permits, I would like to cordially invite you and other investors to drop by our Shenzhen or head office. We are more than happy to host you and chat with greater detail for any question you might have. This is my answer to your question, Jack.

It improved by 40% year over year.

And you can see it's not hot for you or anyone to conclude that this quarter has been great and however, a rest assure that we are not contented by the president we need to move faster and spend more therefore, we will continue to invest as part of our global growth plan.

Guan Yang Chen: You can see it's not hard for you or anyone to conclude that this quarter has been great. However, rest assured that we are not contented by the present. We need to move faster and expand more. Therefore, we will continue to invest as part of our global growth plan. Lastly, if time permits, I would like to cordially invite you and other investors to drop by our Shenzhen head office. We are more than happy to host you and chat with greater detail for any questions you might have. Yeah, this is my answer to your question, Jack.

And lastly, if time permits I would like to cordially invite you and other investors to drop by our sense syndrome, Our head office and we are more than happy to host you.

And Chad greater detail for any question you might have.

This is my answer to your question Jack.

Okay. Thank you that's very clear I appreciate that.

Jack Sun: Okay. Thank you. That is very clear. I appreciate that.

Jack Sun: Okay, thank you. That's very clear. I appreciate that.

Thank you.

<unk> no further questions in the queue at this time I would like to turn the call back over to Renee for closing remarks.

Operator: Thank you. I show no further questions in the queue at this time. I would like to turn the call back over to Renee for closing remarks.

Operator: Thank you. I show no further questions in the queue at this time. I would like to turn the call back over to Rene for closing remarks.

Thank you everyone for joining our call Tonight.

Rene Vangese: Thank you, everyone, for joining our call tonight. If you have any further questions and comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good night. Thank you all.

Calvin Wong: Thank you, everyone, for joining our call tonight. If you have any further questions and comments, please do not hesitate to reach out to the IR team. This concludes the call. Have a good night. Thank you all.

If you have any further questions and comments, please don't hesitate to reach out to the IR team.

This concludes the call have a good night. Thank you all.

This does conclude the conference call. Thank you for participating and you may now disconnect.

Operator: This does conclude the conference call. Thank you for participating, and you may now disconnect.

Operator: This does conclude the conference call. Thank you for participating, and you may now disconnect.