Qutoutiao Inc. (QTT) Q3 2020 Earnings Conference Call December 16, 2020 8:00 PM ET Company Participants Sai Du - Investor Relations Eric Tan - Co founder, Chairman and Chief Executive Officer Xiaolu Zhu - Chief Financial Officer Conference Call Participants Vicky Wei - Citi Operator Hello, ladies and gentlemen, thank you for standing by for the Third Quarter 2020 Earnings Conference Call for the Qutoutiao, Inc. At this time, all participants will be in a listen-only mode. After managementÂ's remarks, there ...

Financial Data and Key Metrics Changes - Revenues for Q2 2020 were RMB 1,441 million, representing a 4% year-on-year increase and moderate sequential growth [22] - Daily Active Users (DAU) increased by 11% year-on-year, although Average Revenue Per User (ARPU) declined by 6% due to a weaker advertising market [22] - Non-GAAP operating loss narrowed to RMB 140.6 million, compared to RMB 506 million a year ago, with a non-GAAP operating loss margin of 9.8% [30] Business Line Data and Key Metrics Changes - Cost of revenues increased by 10.4% year-on-year to RMB 397 million, primarily due to rising content-related costs [25] - Sales and marketing expenses decreased by 29.6% year-on-year to RMB 922 million, representing 64% of net revenues, a significant improvement from 94.5% a year ago [26][27] - User acquisition expenses decreased by 44.7% year-on-year to RMB 436 million, reflecting optimized acquisition strategies [29] Market Data and Key Metrics Changes - The advertising market sentiment remains cautious due to the impact of the CCTV report, which temporarily removed the Qutoutiao app from major app stores [31][56] - The company expects Q3 2020 net revenues to be between RMB 1,130 million to RMB 1,150 million, reflecting the ongoing evaluation of the impact from the CCTV report [33] Company Strategy and Development Direction - The company aims to balance growth and profitability, focusing on sustainable growth while investing in technology and content [6][10] - A strategic cooperation with Midu Novels for short video series aims to leverage content and user traffic, enhancing monetization efficiency [11][12] - The company plans to shift its user base towards those attracted by content rather than loyalty points, aiming for a more engaged user mix [41][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the cautious approach due to the COVID-19 pandemic and the recent advertising compliance issues, emphasizing the importance of compliance with laws and regulations [6][31] - The company remains optimistic about recovery in Q4, expecting to achieve breakeven on a non-GAAP operating basis [34][48] - Management believes that content and recommendation algorithms are key pillars for future growth, with a focus on improving user engagement and experience [41][54] Other Important Information - The company has implemented measures to address compliance issues raised by the CCTV report, including stricter management of advertising content and enhancing user complaint channels [14][16] - The company is committed to building a better content ecosystem for all stakeholders on its platform, viewing recent challenges as opportunities for improvement [16] Q&A Session Summary Question: About the third quarter guidance and its impact on ARPU - Management explained that the cautious approach to advertising compliance and a balanced strategy between profitability and growth are reasons for the lower guidance, with a focus on ROI for marketing spending [39][40] Question: Strategy for user growth and cost reduction to achieve profitability - Management emphasized a disciplined spending approach, aiming for sustainable user growth while maintaining profitability, with a target of over 100 million DAUs [51][52] Question: Content cost trends and revenue sharing plans - Management confirmed that content costs are expected to increase as the company invests in high-quality content, with revenue sharing for news feeds remaining low and around 20% for Midu [60][61]

Qutoutiao Inc. Reports Second Quarter 2020 Unaudited Financial Results September 21, 2020 SHANGHAI, China, Sept. 21, 2020 (GLOBE NEWSWIRE) -- Qutoutiao Inc. ("Qutoutiao", the "Company" or "We") (NASDAQ: QTT), a leading operator of mobile content platforms in China, today announced its unaudited financial results in the second quarter ended June 30, 2020. Second Quarter 2020 Highlights Combined average MAUs1 were 136.5 million, compared to 119.3 million in the second quarter of 2019 and 138.3 million in the ...

Qutoutiao, Inc. (QTT) Q1 2020 Earnings Conference Call June 4, 2020 7:00 AM ET Company Participants Sai Chi Du – Investor Relations Xiaolu Zhu – Chief Financial Officer Eric Tan – Chief Executive Officer Conference Call Participants Vicky Wei – Citi Thomas Chong – Jefferies Miranda Zhuang – Bank of America Operator Hello, ladies and gentlemen, thank you for standing by for the First Quarter 2020 Earnings Conference Call for Qutoutiao, Inc. At this time all participants are in a listen-only mode. After manag ...

Qutoutiao Inc. (QTT) Q4 2019 Results Earnings Conference Call March 18, 2020 7:00 AM ET Company Participants Eric Siliang Tan - Co-founder, Chairman and Chief Executive Officer Xiaolu Zhu - Chief Financial Officer Conference Call Participants Zhijing Liu - UBS Nelson Cheung - Citigroup Jay Dong - TH Data Capital Operator Hello, ladies and gentlemen, thank you for standing by for the Fourth Quarter 2019 Earnings Conference Call for Qutoutiao Incorporated. At this time, all participants are in a listen-only m ...

Qutoutiao Inc. (QTT) Q3 2019 Earnings Conference Call December 3, 2019 8:00 AM ET Company Participants Eric Tan - CEO Jingbo Wang - Co-CFO Xiaolu Zhu - Co-CFO Saiqi Lu - IR Director Conference Call Participants Zhijing Liu - UBS Alicia Yap - Citigroup Hans Chung - KeyBanc Capital Markets Operator Hello, ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2019 Earnings Conference Call for Qutoutiao Inc. [Operator Instructions] I will now turn the call over to your host Saiqi Lu. ...

Financial Data and Key Metrics Changes - The company's revenue for Q2 2019 reached RMB1.4 billion, nearly tripling compared to the same period last year [31] - Average user acquisition cost was RMB6.93, while user engagement expenses were RMB0.13 per DAU per day, and ARPU was RMB0.39 [25] - Gross margin for Q2 2019 was 74.0%, a decline of 1.2% quarter-on-quarter and 9.1% year-on-year [34] - Non-GAAP net loss was RMB496 million, representing a loss ratio of 35.8%, which increased from the previous year [39] Business Line Data and Key Metrics Changes - The overall business saw a quarterly average combined DAU of 38.7 million and combined MAU of 119.3 million, both more than tripling from a year ago [8] - Midu Lite was launched, attracting a different user base and contributing to user growth [9] - Midu's peak DAU reached over 8 million at the beginning of Q3, but faced a suspension from July 15 to October 15 [48] Market Data and Key Metrics Changes - The overall digital advertising market is experiencing weakness due to supply/demand imbalance and weak macro conditions [22] - Despite the tough environment, the company is delivering one of the fastest growth rates in the industry [22] Company Strategy and Development Direction - The company is focusing on growth, compliance, and optimization of internal teams to support future growth [8] - A significant investment in IT infrastructure is being made to accommodate data-intensive content [34] - The company aims to reach a DAU target of 50 million to 60 million by year-end, doubling the level at the end of the previous year [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resuming normal operations for Midu by mid-October and expects limited impact on Q4 [60] - The company anticipates that Midu could contribute up to 20% of total revenue in Q4 [60] - Management acknowledged the challenges in user acquisition and engagement costs but remains optimistic about future growth [62] Other Important Information - The company has been granted an Internet news license, marking a significant achievement in compliance [11] - The company is diversifying its monetization avenues by growing contributions from casual games and live streaming [22] Q&A Session Summary Question: DAU was stagnant in Q2; what is the user acquisition strategy? - Management noted some pressure in user growth due to competition and market weakness but observed recovery starting in June, with a 10% to 15% increase in DAU for Qutoutiao in Q3 [46][47] Question: How confident is management regarding regulatory headwinds? - Management expressed confidence in resuming normal operations by October 15, supported by the recent Internet News License [58] Question: What is the revenue outlook for Q4? - Management expects Q4 to be strong, with Midu potentially contributing up to 20% of total revenue [60][72] Question: What are the trends in advertising sectors? - E-commerce remains strong, continuing to be the largest segment of advertisers, with other segments remaining stable [85]

Start Time: 21:00 January 1, 0000 9:38 PM ET Â Qutoutiao Inc. (QTT) Q1 2019 Earnings Conference Call May 20, 2019, 21:00 PM ET Company Participants Eric Tan - Co-Founder and Executive Chairman Jingbo Wang - Co-CFO Xiaolu Zhu - Co-CFO Fionna Chen - Director of IR Conference Call Participants Zhijing Liu - UBS Alicia Yap - Citi Hans Chung - KeyBanc Capital Markets Xueru Zhang - 86Research Operator Hello, ladies and gentlemen. Thank you for standing by for the First Quarter 2019 Earnings Conference Call for Qu ...

Qutoutiao (QTT) Q4 2018 Earnings Conference Call January 5, 2019 8:00 PM ET Company Participants Fionna Chen - Director of Investor Relations Eric Tan - Co-Founder & Executive Chairman Jingbo Wang - CFO & Executive Director Conference Call Participants Leo Chiang - Deutsche Bank Alicia Yap - Citigroup Wendy Huang - Macquarie Hans Chung - KeyBanc Capital Operator Hello, ladies and gentlemen. Thank you for standing by for the Fourth Quarter 2018 Earnings Conference Call for Qutoutiao Inc. At this time, all pa ...