Financial Data and Key Metrics Changes - In Q4 2021, total revenues reached RMB7.4 billion, with membership services revenue increasing by 7% year-over-year, primarily driven by the growth of Average Revenue per Membership (ARM) [32][33] - The non-GAAP operating loss decreased significantly by 45% year-over-year and 52% sequentially, from RMB941 million to RMB516 million [33][34] - As of December 31, 2021, the company had cash, cash equivalents, restricted cash, and short-term investments totaling RMB4.4 billion [34] Business Segment Performance - Membership revenue grew by 7% annually, with monthly ARM increasing to RMB14.16, up 14% year-over-year and 4% sequentially [10][32] - The overseas business saw significant growth, with average daily active users (DAU) tripling year-over-year and membership revenue growing over 40% sequentially in Q4 [14][15] - Advertising revenue decreased by 10% year-over-year in Q4, primarily due to a decline in brand ads, while performance ads achieved steady growth [17][18] Market Data and Key Metrics Changes - The average daily number of subscribing members in Q4 was 97 million, down from 102.7 million in Q4 2020 and 104.7 million in Q3 2021 [12] - The user base in overseas markets, particularly in Thailand, grew nearly 700%, with many regions exceeding 100% growth [14][15] Company Strategy and Industry Competition - The company is focusing on improving operational efficiency and profitability, shifting from quantity to quality in content production [7][9] - The competitive landscape is evolving towards a focus on operational efficiency rather than market share, which is seen as a healthier approach for the industry [42] - The company aims to reach non-GAAP operating breakeven for the full year of 2022 and quarterly breakeven as soon as possible [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving further improvements in both GAAP and non-GAAP operating losses in 2022, driven by cost optimization initiatives [34] - The regulatory environment is perceived as relatively stable, allowing for better comprehension of content production boundaries [43] - Management highlighted the importance of long-form video content as a core need for users, indicating a positive outlook for future revenue growth [48] Other Important Information - The company has optimized its organizational structure to enhance focus on core business and improve operational efficiency [30] - The content-related cost ratio improved by over 20 percentage points annually, reflecting better operating efficiency [19] Q&A Session Summary Question: How has the company managed to lower operating losses? - Management elaborated on proactive adjustments in operating strategy, focusing on cost optimization and improving operational efficiency, which led to a significant reduction in operating losses [36][37] Question: What changes are anticipated in the competitive landscape for 2022? - Management noted a shift towards efficiency in the online video industry, moving away from a focus on quantity, which is expected to create a healthier competitive environment [41][42] Question: What is the outlook for membership growth? - Management acknowledged pressures on membership growth due to COVID-19, regulatory uncertainties, and production capabilities, but emphasized the long-term importance of long-form video content [46][48]