Q2 2019 Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to Weibo reports second quarter financial results Conference call.
At this time all participants are in a listen only mode. After the speakers presentations there will be a question and answer session.
To ask a question during the session. He will need to press star one on your telephone. Please be advised that today's conference is being recorded.
I would like to add a conference over to your speaker today Mr. David Chang. Thank you. Please go ahead.
Thank you operator welcome to live with second quarter 2019 earnings Conference call. Joining me today, our chairman of the Board Charles Chao Our C O coffee Wong our group CFO , Bonnie Zhang and I'll leave you finance the interim CFO . Please call. The conference call is also being broadcast on the Internet and is available to live with IR website.
Before the management remarks, I'd like to reaching the Safe Harbor statement in connection with today's conference call.
During today's call. We may make forward looking statements statements that are not historical fact, including statements overall leaves thanks by patients.
Forward looking statements involve inherent risks and uncertainties a mendelson when in fact, it could cause actual results to differ materially from those contained any forward looking statements.
We will assume no obligation to update the forward looking statement in this conference call and elsewhere.
Further information regarding these and other risks is included with annual report on the F and other filings with the SEC.
Oh the information provided in this press release is accruing as of the date Hugo.
We assume no obligation to update such information, except as required at the applicable law.
Additionally, I'd like to remind you that our discussion today includes certain non-GAAP measures, which excludes stock based compensation and certain other expenses.
We use non-GAAP financial measures to gain better understanding of Weibos comparative operating performance and the future prospects.
Our non-GAAP financial institutes, certain expenses gains or losses, and other items that are not now not expected to result in future cash payments or nonrecurring in nature will not be indicative of our core operating results and outlook.
Please refer to our press release for more information about our non-GAAP measures.
Familiar we mentioned in prepared remarks, we'll open the lines for briefs Q and a session with this I would like to turn the call over to our CEO coffee wall.
Yes.
Claimed by not Punjabi with current technology operating.
Thank you Hello, everyone and welcome to wave was second quarter 2009 earnings conference call centers have welfare provision by now turning into hard we probably would be 45 on an agenda. He joined Dineequity you initiate unit holder kina on today's call I will share with you highlighting wave was use of gross product and monetization as well as progress we've made to our key initiatives in 2019.
Since you're not able to articulate how much you are arranging the arch to show you don't Orlando Parks are coming up are you able to do so no snacks are you, making meaningful nobody can be totally balance sheet to delinquent Guardian Angel Atondo synergy imaging. Indeed, some sleep on lower margin I think you don't want to be develop and the buyer due partially to once a child. Unfortunately, and I know you don't really imaging tolerable attorney early in June 2019, we with any you reached $486 million up 13% year over year represents a net addition of 55 million users year over year were 21 million users quarter over quarter average he used to reach $211 million up 11% year over year with a sequential acceleration from prior quarter in June 94%. We was any you come from mobile Argentines. So June onwards, we should you choose anyone has efficient content distribution, which helped to grow our user deal.
And more importantly, let with double digit growth in fleet refreshment impressions and use interactions on a year over year basis.
Our monetization front clearly business continue to grow nicely during the quarter benefiting from the increasing adoption of social advertising clients at budget.
It's both attributable to sales teams at advanced no halt in addressing customer demand and capturing market opportunities SMB business achieved double digit growth quarter over quarter as our initiatives to fight AD product and optimize still cannot have taken effect despite near term market challenges still exist.
Arguably some club resort in Maryland, or could some homeopaths omnichannel.
In discussing our operating update of the second quarter I'll cover the areas of business content and customer of wasteful.
So as you say you would come down to refinance our two equal funded using machine.
Got you so that you do to client who will result in longer terms with tallgrass albertsons.
Archie too we will revert to Donald Breakevens, Obviously the chart you on today's charge them. We've got your thoughts regarding liquidity shortage on production.
Sony engine issues, you said you were naturally shorter for shale Google.
Good morning, everyone I shall report quarterly on our confidence for some reason we have within the early trend collection menu shift towards am John Schoen International portfolio were comfortable internationally shying away that actually charge.
Let's start from user growth and engagement in the second quarter with net addition of any use a d. use on a quarterly basis with a highest level among the past at the elevated by a large degree so improvement of common assumptions efficiency and optimization of social related functions into fees.
Third we executed well in the new user acquisition and we call storming uses that leverage our strengths and proper nature around the holidays and discussion.
Let me provide more color on this initiative.
So Jim Thanks, gentlemen, showing what we usually talk longer Colby.
For agenda.
Silver resources, our transformational initiatives as well as it was neutral for the year, we recorded approximately $2 million for the tundra will go to repeat those will you accordingly, when they don't take on open our Google coming on a full GAAP to live within the compressor forget our condominium change vehicle to some of the financings on genealogy launch up to a pretty sharp execution first from a channel perspective, we have made good progress in our partnership with handset manufacturers and top HPC benefiting from dependent.
Collaboration with this partner, it's a material shift.
Bonuses, which includes the antenna show sequential showmanship, producing opening the framework to return that someone else.
Alright, one crew told you projects transition to these are being certain timing team attach on seasonally ultimate Lucia trends as we increase obviously also don't tend to be more that he was able to Nielsen quickly in June which is being called off rental program.
So we don't really talks about autonomous arch topping chief.
Special income anymore from Somalia, and Crucially Usone Tonight. If you have it turns out we can launch in order to make use of VIBATIV encompasses the searching seasonal rebuilding over here.
Let me first Larry I'll work around enhancing wave was commitments to strengthen coming into product allow us to attract more self media to accumulate engage with fed through committee product on weight board further driving user growth and user engagement on platforms, such as usual retail tissue shipment seasonalization due largely to the down credit to announce on the horizon.
Q from targeted towards bottomless organ donation to yield some journalists release into opportunity English on the agreement I sure Tom knew it should go down once you usually see the shooting ammonia opinion shipments issue, which is which I don't see the change between Q2 and winning.
Paul Bontempi boss Revolution.
So you're going to alter interchangeable assignments car dealership getting into any Bam shareholder.
Next on peak consumption easing synergies among various piece is to deepen user speed consumption is the leading felt vertical accounts grew 50% quarter over quarter, though this endeavor contributed to a 50% year over year gross refreshment of interest this feat in the second quarter.
Through two hotels shipping functionality from TV tuner to NMTC significant actually yes, so otherwise on some inflows and took our shipping I know that you have ongoing torture nutritional futile fashion Samsung LG looking now onto your children in English topic, given 20, PC CVG 2020 vision, so any thoughts on that.
Yeah tissue either from you on the today show Q should be made on that new after my short our degree of wishing the Kohona Tony Hawk climate change.
Finally on video consumption, we continue to improve PGC video production and consumption skews, we have further optimize to share some metrics media views on our platform through double digit on dose and sequential basis in June .
Im Elution performing arts, we will occur when agreement you're going to have an immediate impact on LNG on its own so don't pull down 20 or competition seriously it's on our behalf.
I mean honestly don't.
Steve we're going to achieve going forward, we will soon be able to show up and on the call. We will create a chunk toolset machine learning to achieve documentary Cyborg research and the medium CR tonio attached they work gentlemen, consolidated onto Italy, and England to digital Macaus income planning. Its also why internal changes order from the Yodle Merrell enrollment is also to point out. The final question do you have some liquidity randomly you should tell me its own way lead lives of tens Khamenei product second we enhanced platform traffic distribution for content for the conference of top verticals in interest rates.
Including car fleet will feed and hot search this quarter, we focus on top verticals to optimize the process of encouraging quality content creation by top content creators are supporting traffic distribution for this company in chip based feed and hostage promoting vertical top content creators ability to capture the additional traffic in top verticals to other vertical areas often targeted traffic to promote company distribution and facility vertical content generation.
2% of our total can have Marshall reason, either vitamin D zone, So Tony another shot than before Tony donor should show some kind of permanent high expertise will teach US you sense when you shutdown.
Meanwhile, section I call yourself with your comment you should end at some chunk on behalf of our mobile social channels will be pulling switching to show the hiring of a cool used truck deals through two tiered solution strategy continue to incur hall tuning reward immuno oncology coal financially dilution from that on commission Twentyf for Pcs shipped in CRM solution tax refunds are realizable tobacco doing good condition Corral savvy won some year over year was 19% on a constant currency basis. Despite the AD budget cut back from several industry amid macro uncertainties, we continue to reinforce our strengths in the sector. Our primary focus at this stage is to drive up ask Ben from a relative macro resilient industries.
Towards Fiftys, we've consistently bring forth innovative ad formats against our customers.
Providing fresh marketing events for example in the second quarter, our newly launched AD product featuring a combination of App opening at and shows we bore as their social marketing platform.
For example, along with Samsung launches, a new model for C. With a the brunt of the types of work with us and initiate initiated the dialog a phone with WRECO event, we bought the van invited more than 22 wells with stance over 10 million to participate in the EBIT in the event topic discussion and distribution and for the attracted over 3400 top content creators largely stimulating uses enthusiasm and engagement as a result of even topic vis vis 3.7 billion and the media views around that even reach the 500 million. According to third party data when Vets Commission for Samsung model model 818 of Thats, a product of the central Serous eight increased 143%.
And Meanwhile, an increasing number of customer, which the uplift their brand image with the with the domestic consumption upgrade as such we optimized our local sales agency structure to enhance our ability to acquire more traditional local TV print as Tyson.
Supporting our store strategy to further expand low co pay eight customers steel for example in two companies the number of local K customer and their marketing spend increased nearly 100% over 200% year over year, respectively.
Central to our portfolio 20 pharma shophouse restaurants in general looting incentives.
Thank you Antonio Antonio that according to from from higher sound on the fruits.
Julian that should also terminal Chinatown between quarter commercial churn in 2015, we stem Ami boxer Wendy.
For TV additional arches Eugene charter.
Sure we continue to local reviews on Green cynical cohort 24 times, she will be attending the timing of who tend to show youre choosing to cope with some challenges in the battle to our total total cooler Shahab, let me when you're selling a Danish company I will try to continue our projection. Thanks, how should actually changed posture or do you guys on pricing here pushing co packed arsynco Fortunately, our digital connection crank Polish office shipping to that one with attrition shingles had some huge offshores autonomy youre starting from design to the optimization in channel and product as our revenue generally in the second quarter was flat year over year, Egypt, maybe terms with effective CPM stabilized quarter over quarter, Let me share more color I'll work ahead first we will focus on stabilizing ask Dan from a pop customers. We established a separate team to serve top ACMI customer with customized service and product.
In order to optimize the AD performance and better understand their AD spend pattern.
Overall, ASP reduction efficiency of our vertical video ads increased significantly leading to significant better AD performance and the highest dose the weight of the products. Lastly, we have also been promoting alcohol matson among SMB customer aiming to help customer attract USIS attention and achieve higher ROI.
Incorporation of brand Halo and events for example, lender a Japanese cross border online shopping platform together with this brand spokesman again mushy, Todd Tomo piece up.
She ADW ecommerce promotion events accrue at Escobal away before June that day was our balance dance posted and distributing related content increasing brand awareness when the app download rents to 16 in the shopping appetite significantly up from 40, 42 stopped which we cannot do shoshana cautious on January 20th couldn't go into Taiwan Autozone sheet on the topic.
We want to answer some questions on switching up short term charters associated with unfortunately.
Solutia bundles is encouraging with intelligent about how meaningful that sensor networks are cogent since the antidumping notable shifts we've essentially at which you could do consumer items totaling 100 Mg can you share your view Tongon course, you name tonnage out of offline.
You have on upholding junction city Coker Latania Shaunavon without Michelle so you're going to China to achieve will achieve for two conclusions.
Intellect and scenarios dozens name a few.
We believe that endeavor to these events you put assets existing systems and help us acquire more customers and additional apogee in the future Sergipe Italian tolerated articulate how would you.
With that let me turn the call over to feedstock for financial update.
Thank you we'll go for it and Hello, everyone. Welcome to review, our second quarter 2019 earnings Conference call.
Let's start with our user metric.
We was any use with the 486 million due June 20, Nike representing a net addition.
55 billion users on a year over year basis.
We both average Gpus reach the 211 million a net addition of 21 meeting users on a year over year basis.
Mobile I may use represented approximately 94% of total amie.
Turning to financials as a reminder.
My prepared remarks will focus on non-GAAP results and all the comparable on a year over year basis, unless otherwise noted.
We would second the quarter Tantalizing net revenues were 431.8 million up 1%.
Oh, 7% on a constant currency basis.
Operating income, which is about $166.2 million, representing operating margin of 38% compared to the second that percent of last year.
Net income attributable to label was 156.4 million, representing a net margin of 36% compared to 37% last year.
Diluted EPS was six cents flat year over year.
Let me give you more color on revenue.
Advertising and marketing revenue for the second quarter, 20, lighting, which was $317.7 million.
Flat or an increase of 6% on a constant currency basis.
Mobile AD revenue was 319.2 million up 5% contributing approximately 86% of total AD revenue up from 82% last year.
Moving on to take.
In the second quarter key AD revenue year to the 171.6 million up 12% or 19% on constant currency basis.
From the industry perspective, FMCG continued previous strong resilience and the judge the K revenue goal.
As we were social marketing solutions resonated well with leaf brand advertisers to initiate a pumpkin enhanced brand a very low rate movements, there and the social as that accumulated to target the relevant audiences for Brian the loyalty and the sales conversion.
Well also pleased though is a solid performance of entertainment sector. Despite industry habeas lack of that allow you to report leading preservation as a social social media platform to distribute and promote entertainment content.
Turning to Smbs.
In the second quarter.
We both as an AD revenue reached Rmbone hundred 70 $74.9 million.
Down, 6% or flat on a constant currency basis.
Our efforts enhanced AD performance optimizing sales channel and differentiating our social AD products have taken some initial effects in the second quarter to retain existing customers.
Paddling to under monetized vertical and attract new customers for the platform.
Narrative.
Here's the favorable advertiser demand on the inventory supply dynamics field profits, we will continue to face near term challenges from certain lack ticket item categories and online gaming sector with a tough part last year.
AD revenues from Alibaba.
With $24.1 million down, 24% or 18% on a constant currency basis, which is slightly better allow our expectation as they had a particularly difficult comps in 18 through two with AD revenue from Alibaba Orient triple digit year over year during the same period last year.
[noise] ask for that deal and third at products continue to show strong and outperform other AD product ready on strong momentum of user traffic to search on video, but also delighted to see the increasing adoption of social marketing solutions that help such as CEO al Mckee Advertiser.
Not that easy for part of their ad content.
Value added service that revenue was 6.2 meetings with the second quarter up 8% over 2% constant currency basis.
The increase was mainly attributable to the revenue derived from live streaming business and was partially offset by a decrease in gaming revenue [noise].
Turning to costs and expenses total costs and expenses for the second quarter was 265.6 million up 2% the increase in cost and expenses was mainly resulted from the incremental cost of revenue share of left Remy business.
An increase in personnel related costs and was largely offset by 24% year over year decrease of sales and marketing expenses.
Resulting from our more disciplined the China investment strategy and the better execution of marketing content.
Operating income in the second quarter was 156.2 million, representing operating margin of 38% compared to a certain nypro saw last year.
Turning to income tax.
I looked at larger income tax expense for the second quarter was 26.1 million compared to 25.1 million last year.
Net income attributable to rebound in the second quarter with 156 on Formula.
Representing a net margin of 36% compared to 37% last year.
Turning to our balance sheet and the cash flow items as of June 30th Tantalizing Weibos cash cash equivalents and short term investments totaled one point the succeeding in second quarter cash provided by operating activities was 132.8 million.
Capital expenditures totaled 3.2 million and depreciation and amortization expenses amounted to 6.7 million.
Now, let me turn to business outlook in light of currency translation.
Our business outlook was booked some financial estimates on a constant currency basis.
We anticipate our third quarter 100 light in that revenue to increase from 6% to 9% year over year on a constant currency basis.
This forecast reflects what's current and the preliminary view and is subject to change.
Before turning to the Pelletization.
I would like to add a brief note on $800 million senior note offering our company completed in early July .
The notes bear an interest rate of 3.5% and then doing 2020 four.
We have received a total of approximately $793 million net proceeds after deducting underwriting discounts and commissions and estimated offerings both days payable back.
We plan to use the proceeds from the offering for general corporate purposes to suppose that long term development of the company.
With that let me now turn to pull over to the operator for the commercialization.
[noise] late.
Ladies and gentlemen, well now begin the question and answer session.
Should you wish to ask a question. Please press star one on your telephone please.
If you wish to catch request, please press the pound or hash key.
Your first question comes from the line of Gregory Zhao from Barclays. Please ask your question.
Hi, Thanks for taking my questions. So actually I have two questions. The first one probably for very impressive year over year growth momentum in this quarter.
So just wanted to check how are you.
How shall we think about to the sustainability all for growth are trending in Q3, and the Q4 kind of what's your strategy to maintain the growth momentum and the second one is on the content. So when we come in close to the national data anywhere three drug around how update from the perspective of regulation, how social compounds from Q.
Yeah.
So we are shipping at the England humor.
Your next question comes from cards are doing on companywide moving dealing a union in energy Council.
For me is on which allowed the nacelle and Taco.
Typically NII potential to credit Mitchell.
Oh first we see very strong user growth during this quarter, we adding over 50 million 20 million AMU and D.A. respectively.
That Oh I think the net addition of users and accelerate a notable lease versus prior quarters.
Switching recon causes some anymore on all 400 values robot, we know what we're doing here with us rushing license component.
So now on other downturns in the toll on the overtones will touch it although I cannot give a frozen sandwich and surgical Gen. Biofinity again, how your thoughts are geopolitical arbitron dot more we see is the engagement rate for example would be a rich it be frequency over refreshment. The our video viewership and also in terms of the.
The new user participated in their interaction on the platform has grown even from England recently I'm good.
Oh, I think the growth really comes from.
From the true aspect as far as indicated in the prepared remarks.
So Jim you believe you'll be looking handle your questions. We'll make sure we were shocked human side maintenance I'm working on a wireless shaygan I have challenged our inside.
Gee, maybe one time in the future great launching pad that I can do the actual machines on the OEM.
Sure, Dan Schumacher totally mobile which has shown it.
And I think we bore has.
The user base user base has been brought.
User base has already been very large and had a very strong.
Network effect and so we see and also we were able to have that that itself has improved our user acquisition efficiency.
They like on a dominant solution LENSAR pucci financing any means axogens Sandia National Omnichannel element, you Sunglass shipping some international cargo Dundalk now Youre limited should Argentina, Tavi light only boy openness answer Pat enabler almost on a night conferences industrial although yes on April two the attrition that they kind of M&A transactions may not have attrition I think the second point is the comes from our ability to enhance the platform social attribute.
Oh, I fair indicated that the interaction between the fans attending the human immune I compound on the usual today, so within China outlook. Once you don't want to put it on a daughter pneumococcal itself in Q2, it was actually implemented jarchow elements on Chicago for beeping at our terminals United on Soviet impacts come down again, but I'm not going to Bobby become nervous and Sean Quinn.
Thank you Alicia come down this is an ammunition.
In summary, I think we are benefiting from the opt for the ability to operating the hot.
Hot trend how trends are hot events that gives us the.
The efficiency the live streaming on platforms, so that to create a bigger.
A bigger platform for the big lease and the fans to interact.
Turning to load going into 14 goes on when those in terms of our man signature who won young adult weigh the alcoa. So they will be launching Hamlin beam quick agenda, Eli anymore, you believe it.
Jimmy Incenting fat digital a formula one is on top of the wrong conclusion.
As we indicated in the past have for regulatory.
Events that.
We bought it's not it would grow platform feature is not limited to one particular area, but for.
For two for this year in particular in welcoming the National Harbor, a national day for 70 years anniversary Entertainment industry is inevitably would worsen negatively impacted.
Rebooking pending them continue to look at Dunbar, It's amazing bulk only willing to look at Darlington, Oklahoma median time employment condition.
Since the launch and when that someone talking right now monetize content channel partners you may ask anyhow.
Where our contents are not limited to the self media, we have the mute the vast majority official accounts available on our platform. So in the event like this we are actually benefiting from the the more constrained a regulatory eaten by more formal voice.
Okay.
Okay. That's helpful.
[noise]. Your next question comes from the line of Alicia Yapp from Citigroup.
Please ask your question.
Hi, Good evening management. Thanks for taking my questions. My question is related to our advertising budgets and also weighed more competitive positioning so could management share with us or elaborate a little bit like what are the main reasons why the act that jumped from the K, a cow or a small received in as shown in the reasons quarter do you think that.
Mall, we see leans towards just the way bought fast while while cutting back the budget on auto platform and if so what are the reason is that hold up wait and then can this be sustainable or will we see any threat.
In in the future. Thank you.
Okay Xu from minimally Conoco Shen from Johnson.
Canada, and Australia, and I kind of hop on the website in June .
Our July kind of highway touching intense you try or should have activities will take crusading Asia and my answer is that what you're telling us you're telling me in tanks you already received NCR that Archie door portfolio, you should see opportunity or more.
Oh, you enjoy your phone call USAT archipelago portal.
And so when we look out to key accounts grocery for second quarter, we have to consider the tough comp due to World Cup related promotion activity last year and that factor will also impact.
The gross rate or for Q3 as well as I indicated Ah first part of the regulatory reasons some of the.
IP IP video shows has seen proposal has polling on the video platform. These are had an negative impact on the on the owns certain cosmetic cosmetic customers and their spending our path as well because their budgets in largely have to be matched the release schedule off the blockbuster IP program.
Well, we cannot use as much markdown garching own opinions about Sheila literalism dark fee for masonite to enable long they cannot educating the not for profit any idea how managing any I think our challenge is home to argue that happened at MCC, our sheetrock those opportunism, Dan Cancelmi their time to talk.
Our improving financial level. Thanks.
Jonathan Hughes from ASG guidance also assumed a chance you issues Joe.
Sure Michael Hoffman from credits also has to be higher Bill Hopper.
If we break through further into the industry segment, where our gross are largely depending on those.
Gloat, a second quite quite considerable slowdown in terms their spending from marketing dollar.
No reason, we cannot Newton two highly in the budgeting ship chairwoman their RG progression toward I'm sure. Some tonya Tonya and I kind of on the high Silicon Glen who owns that K Honeyman dark calendar timing as you know, we so with a large.
Still the uncertainty refined indeed, the macro and of those key accounts.
Our focus has been a shift much more to our product competitiveness in the marketplace.
We continue on that kind of comes on ascent community shown up on Dakota smartphone related item Jack.
I think there are three areas were focusing for our key revenue growth starting input on from a product perspective started number one it's the interest grow marketing effect.
Inter interboro market effects, the with the performance under the Brandy, that's particularly true with FMCG and E Commerce industry settlements Oh, that's the area, where expanding beyond our traditional brand a brand advertising and we believe there's a good growth potential for to taking on their performance related Oh ad budget.
New manager imaginary Josh on one side is on the machine, Okay arent seeing them come into the oceans. Your what you call with optimized site.
Can you tell us what that combining our knowledge International Guardian Angel.
With our strong.
Strong inventory available it with our celebrity and our Kale, we're leveraging that advantage with the brand and marketing as we see brand marketing moving very quickly to this on the social need.
So that will we we want to make sure we are definitely take advantage of the movement.
Our Q Braskem rich jostle helium essentials are working hard to do that she for hiring that you don't have to touch on GAAP, one international inside on Tim come out and shop elimination, which I'll comment fundamental question on gold production by user.
This is.
As I indicated in the previous prepared remarks like a some fun.
Some some and even some of the cases, we have done for our own automobile industry will be a leverage our celebrity.
Resources on the platform to talk to Ansible oncology check component told that accretion. Okay retirement, you sound would be helpful. The other.
Alan as I indicated, we're moving more aggressively to taking on but just from regional brands. Historically these are brands.
Marketing focus the work on the local TV station now we are we believe that's a one on one of the other areas we seeds of growth potential.
Please look on our balance sheet RTD form in the Youre sure where do you see from me and our team continues to deliver two shrunk transunion to Toronto.
I think in summary, these three areas the full the focus area focus point for us to grow our key accounts and continue to.
To enhance our competitive edge in the key accounts on marketing.
Thank you.
Thanks.
[noise]. Your next question comes from the line of Bill view from Goldman Sachs. Please ask your question.
Thank you management for taking my question. My question is on the US Army advertising. So could you give us some updates on the strategy is to grow this segment exiting that unit intensive competition environment given some of the private players have raised very high target for the year, and especially all the improving conversion rate front.
Also what is the any new initiative all strategic focus for rest of this year. Thank you.
Yeah, Weve come down to Shoshana articulate I should also highlight two bedroom furniture, you can guide when we okay gotcha.
Even though we have experienced better than expected.
SMB revenue.
Delivered in the second quarter. We believe we still have received a lot of potential for us to can do better.
So just a question of when do you have for sure all right. When she we will kind of come out.
You see ammo I mean, one thing though.
And John Mccain are kind of higher cost she joins your man.
Sure. So it could have gone to the element of potential value of the tool.
Put aside of the ROI and the CPM I think we will as I indicated the CPM rate has been relatively stable.
Quarter over quarter basis, I think the issue. The main issue resides on the demand side as we continue to see the weakness on that particular area and that I think are for us the the subs.
The issue to resolve it is try to really try to raise our or sell through rate.
In the coming quarters.
You commented on that one on one thing that you have I mean, we can then we're gonna come down for the job I actually thought that call. As usual question don't you would anticipate launching that hydrogen goes up with or without Archie Dorland, Indonesia channel. How much would you guys potentially fulfilling cohort they'll take off profiling is far better as it will be outside of California.