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 ...

Financial Data and Key Metrics Changes - The company generated RMB1.4 billion in revenues for Q3 2019, representing a 44% increase year-over-year, although sequentially revenues were slightly up due to the suspension of Midu Novels [23] - The ARPU for Q3 2019 was RMB0.36, down from RMB0.39 in Q2 2019 and RMB0.51 in Q3 2018, primarily due to a weak advertising market and the suspension of Midu Novels [25] - The non-GAAP gross margin was 65% in Q3 2019, down from 84% in Q3 2018, attributed to the loss of revenue from Midu Novels and increased content costs [26] Business Line Data and Key Metrics Changes - Daily Active Users (DAU) reached 42 million, doubling from the previous year, while Monthly Active Users (MAU) also showed significant growth [6] - Midu Lite, launched in May, quickly gained over 3 million DAU, contributing to the overall user growth [7] - Revenue from games and live streaming more than doubled quarter-on-quarter, with 10% to 20% of users accessing games and around 3% active on live streaming daily [12] Market Data and Key Metrics Changes - The company observed a tenfold increase in GMVs generated by Qutoutiao users on e-commerce platforms during the Double 11 Shopping Festival compared to the previous year, indicating strong market potential in lower-tier cities [21] - The competitive landscape remains challenging, with competitors like SINA and Feedly gaining momentum, but the company maintains a strong position in the free online literature market [42][51] Company Strategy and Development Direction - The company aims for long-term profitable growth, focusing on a balanced approach to growth and capital allocation with an emphasis on sustainability [22] - The strategy includes enhancing the content ecosystem and improving user retention through better content offerings and monetization efficiency [10][15] - The company plans to achieve breakeven for the QTT business line in 2020 and expects to see better margins in Q4 2019 [36][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a less hospitable operating environment but expressed confidence in the company's core capabilities and strategic direction [5] - The outlook for Q4 2019 includes expected revenues in the range of RMB1.6 billion to RMB1.62 billion, factoring in the resumption of normal operations for Midu Novels [38] - Management believes that the second half of 2020 could see accelerated revenue growth as the impact of the Midu suspension diminishes [66] Other Important Information - The company completed the issuance of new shares to The Paper, which is part of a prior agreement made before the IPO [34] - The balance sheet remains strong with RMB2.1 billion in cash as of September 30, indicating the ability to continue investing for future growth [35] Q&A Session All Questions and Answers Question: Surge in COGS and new marketing solution services - Management explained that the surge in COGS was due to several factors, including the loss of revenue from Midu and increased content costs associated with new marketing solutions [41][44] Question: Competition in the free-reading market - Management stated that despite the suspension, the company remains the number one player in the free online literature market and aims to maintain its competitive edge through user acquisition and content partnerships [42][51] Question: Fourth quarter guidance and user metrics - Management indicated that while there may be slower user base growth, they expect improved ARPU and overall revenue growth in Q4, with a focus on sustainable profitability [72][74]

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 ...