Financial Data and Key Metrics - Revenue increased by 22% year-over-year to RMB 631 million in Q1 2023 [7][13] - Net income surged by 54% sequentially and 194% year-over-year to RMB 48.3 million [7][13] - Total average mobile MAUs reached 49.6 million, with average monthly paying users totaling 471.5 thousand [7] - Gross profit was RMB 196.4 million, with a gross margin of 31% [14] - Non-GAAP gross profit was RMB 198.2 million, with a non-GAAP gross margin of 31% [14] - Operating income was RMB 42.7 million, compared to RMB 14.6 million in Q1 2022 [16] - Non-GAAP operating income was RMB 52.9 million, up from RMB 23.4 million in Q1 2022 [17] - Cash and cash equivalents, short-term investments, and restricted cash totaled RMB 731.3 million as of March 31, 2023 [17] Business Line Performance - The company focused on enhancing audio entertainment product features, boosting commercialization efficiency [7] - Content creator ecosystem was strengthened through refined operations and diversified themed activities, attracting more creators and increasing engagement [8][9] - Global business expansion was supported by the launch of the MY AI FRIEND chatbot in the TIYA App, which improved user engagement and usage time [9][10] Market Performance - The company achieved solid growth across all business segments in Q1 2023 [12] - Overseas business is in the early stages, with monetization models being tested and optimized [21][26] Strategic Direction and Industry Competition - The company aims to build a more competitive audio-based ecosystem and expand its global business [6] - Focus on AI chatbot development, with plans to optimize and upgrade MY AI FRIEND features and integrate AI chatbots into social networking protocols [10][11] - Localized operations and R&D of self-developed core technologies are key to global expansion [11] Management Commentary on Operating Environment and Future Outlook - The company remains committed to innovation and global positioning, with a focus on improving operating efficiency [12][13] - Regulatory environment in the live-streaming sector has seen stricter standards, prompting the company to reinforce compliance management [22][23] Other Important Information - The company launched themed activities and special sessions to enhance interaction in the audio-centric community [9] - MY AI FRIEND chatbot was upgraded to provide a more tailored AI-enabled chat experience, with plans to further optimize voice functions [10][11] Q&A Session Summary Question: Monetization scale of overseas products and regulatory environment changes [20] - Overseas monetization is in the early stages, with subscription models being tested and optimized based on user feedback [21] - Regulatory efforts in the live-streaming sector have strengthened, leading to stricter compliance management [22][23] Question: Progress and outlook for overseas business [25] - Overseas business is steadily developing, with a focus on user experience optimization and function upgrades [26] - Monetization models are being optimized, and investments in localized operations and marketing will continue [27]

Company Overview - The company was established in 2010 and has since launched multiple subsidiaries and apps, including the LIZHI App in October 2013 and the TIYA App in October 2020[207][209]. - In January 2020, the company completed an initial public offering, selling 82,000,000 Class A ordinary shares, raising approximately $30 million[209]. - The company has undergone several restructuring transactions, including the incorporation of LIZHI INC. in January 2019 as part of its IPO preparations[209]. - As of March 30, 2023, the company's ADSs are listed on the Nasdaq Capital Market, having previously been listed on the Nasdaq Global Market[209]. - The company has established various wholly owned subsidiaries in the PRC to support its operations, including Guangzhou Tiya and Guangzhou QingYin[209]. Financial Performance - Total net revenues increased to RMB2,185.3 million in 2022 from RMB2,119.5 million in 2021, with audio entertainment services contributing the largest share[224]. - Revenue from virtual gift sales reached RMB2,174.3 million in 2022, representing 99.5% of total net revenues, with approximately 483.5 thousand average audio entertainment paying users[232]. - Net revenues for the year ended December 31, 2022, were RMB 2,185,266, representing a 3.1% increase from RMB 2,119,514 in 2021[332]. - Gross profit for 2022 was RMB 716,345, up from RMB 617,009 in 2021, indicating a gross margin improvement[332]. - Operating income for 2022 was RMB 66,651, a significant recovery from an operating loss of RMB 138,518 in 2021[332]. - Net income attributable to ordinary shareholders for 2022 was RMB 86,517, compared to a net loss of RMB 127,250 in 2021[332]. - Total comprehensive income for 2022 was RMB 110,818, a recovery from a comprehensive loss of RMB 135,098 in 2021[332]. User Metrics - The average total mobile monthly active users decreased to 50.4 million in 2022 from 58.4 million in 2021, while average total monthly paying users slightly decreased to 483.9 thousand in 2022 from 488.0 thousand in 2021[224]. - The average mobile monthly active users for audio entertainment increased to 9.33 million in 2022 from 8.99 million in 2021[225]. - The average audio entertainment paying users reached 491.5 thousand in December 2022, compared to 476.3 thousand in June 30, 2022[330]. - The average total monthly paying users were 491.8 thousand in December 2022, up from 476.7 thousand in June 30, 2022[330]. Regulatory Compliance - The company has not been involved in any investigations or cybersecurity reviews initiated by the CAC as of the date of the annual report[214]. - The company is closely monitoring regulatory developments regarding overseas listings and has not received any regulatory objections from the CSRC related to its previous issuance of securities[215]. - The company is subject to new regulations regarding cybersecurity and data security, which may impact its operations and compliance requirements[212][214]. - The company has developed content moderation mechanisms to ensure compliance with local laws and regulatory requirements[234]. - User data is stored in encrypted form, with strict access controls and no material breaches reported as of the date of the annual report[235]. Intellectual Property - As of December 31, 2022, the company had registered 452 trademarks in China and 416 trademarks in Hong Kong and other jurisdictions[239]. - The company owns 61 patents in China and has 120 software copyrights related to its online communities and products[239]. - The company has 68 pending trademark applications and is in the process of applying for another 49 patents in China[239]. - The company has implemented measures to protect its intellectual property, including trademark searches and timely registrations[239]. Employee and Talent Management - The company emphasizes talent development through various programs, including podcasts, training sessions, and leadership programs[241]. - The company provides competitive compensation and benefits, including a share incentive plan for employees[242]. - The company has taken actions to protect employee health and safety during the COVID-19 pandemic, including remote work arrangements[243]. Market Competition - The company faces competition from other online audio platforms and large online video and social media platforms, impacting its user retention and content quality[238]. Future Outlook - The company plans to enhance operational efficiency through technological upgrades and the adoption of advanced streaming and AI technologies[329]. - The company expects continued growth in research and development expenses in line with business expansion and technology upgrades[340]. - The company plans to evaluate and adjust its marketing strategy and budget based on performance and market conditions[345]. - The company is focused on expanding its audio entertainment products and enhancing user engagement through new features and services[345]. Cash Flow and Financing - As of December 31, 2022, the company had cash and cash equivalents of RMB568.2 million (US$82.4 million) and positive working capital of RMB352.0 million (US$51.0 million)[371]. - The company intends to finance future working capital requirements through cash generated from operations and funds raised from financing activities, including proceeds from its initial public offering[371]. - Net cash generated from operating activities was RMB136.3 million in 2022, a significant increase from a net cash used of RMB40.4 million in 2021[374]. - Net cash used in investing activities was RMB122.8 million in 2022, primarily due to purchases of short-term investments of RMB111.0 million and property, equipment, and leasehold improvements of RMB11.7 million[377]. - The company plans to fund its material cash requirements through existing cash balances and other financing alternatives[379]. Shareholder and Governance - The board of directors consists of six directors, including four independent directors, in compliance with Nasdaq's corporate governance rules[410]. - The company has established indemnification agreements with directors and executive officers to cover certain liabilities and expenses incurred in their roles[403].

Company Information - LIZHI INC. filed its report for the month of April 2023 under the Securities Exchange Act of 1934[1] - The report was signed by Jinnan (Marco) Lai, the Chief Executive Officer and Director of LIZHI INC.[2] - The filing indicates that LIZHI INC. is using Form 20-F for annual reports[1]

LIZHI Inc. (NASDAQ:LIZI) Q3 2022 Earnings Conference Call November 16, 2022 8:00 AM ET Company Participants Effy Kang - Head of Capital Markets Marco Lai - Founder & Chief Executive Officer Zelong Li - Chief Operating Officer Chengfang Lu - Acting Chief Financial Officer Conference Call Participants Vicky Wei - Citi Operator Hello, ladies and gentlemen. Thank you for standing by for LIZHI Inc.’s Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After mana ...

Lizhi Inc. (NASDAQ:LIZI) Q1 2022 Earnings Conference Call May 26, 2022 9:00 PM ET Company Participants Effy Kang - IR Marco Lai - Founder and CEO Zelong Li - COO Chengfang Lu - Acting CFO Conference Call Participants Vicky Wei - Citi Operator Hello ladies and gentlemen. Thank you for standing by for LIZHI, INC.'s First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After managements remarks there will be a question-and-answer session. Today's conference call ...

Lizhi Inc. (NASDAQ:LIZI) Q4 2021 Earnings Conference Call March 10, 2022 8:00 AM ET Company Participants Effy Kang - Investor Relations Marco Lai - Founder and Chief Executive Officer Zelong Li - Chief Operating Officer Chengfang Lu - Acting Chief Financial Officer Conference Call Participants Vincent Yu - Needham and Company Vicky Wei - Citi Operator Hello ladies and gentlemen. Thank you for standing by for LIZHI, Inc.'s Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. At this time, all partic ...