2023-06-01 10:00Financial Performance - Total net revenue for Q1 2023 reached RMB 5.1 billion (USD 738.2 million), a 0.3% increase compared to the same period in 2022[5] - Advertising revenue amounted to RMB 1.3 billion (USD 185.2 million), representing a 22% year-over-year increase[6] - Gross profit was RMB 1.1 billion (USD 160.7 million), a 37% increase from Q1 2022[5] - Net loss narrowed to RMB 629.6 million (USD 91.7 million), a 72% reduction compared to the previous year[5] - Daily active users (DAUs) reached 93.7 million, an 18% increase year-over-year[5] - Monthly active users (MAUs) totaled 315.2 million, with DAUs accounting for 29.7% of MAUs[5] - Operating loss decreased to RMB 1.4 billion (USD 200.2 million), a reduction of 31% compared to the same period in 2022[8] - Other income totaled RMB 776.7 million (USD 113.1 million), significantly up from RMB 263.6 million in the same period last year, primarily due to gains from the repurchase of convertible preferred bonds and fair value changes of investments[8] - Net loss was RMB 629.6 million (USD 91.7 million), a decrease of 72% year-over-year[8] - Adjusted net loss was RMB 1 billion (USD 150.1 million), down 38% from the same period in 2022[8] Expenses - Research and development expenses were RMB 1 billion (USD 149.5 million), a 2% increase year-over-year[7] - Sales and marketing expenses decreased by 30% to RMB 880.2 million (USD 128.2 million) due to reduced promotional spending[6] - Operating expenses totaled RMB 2.5 billion (USD 360.9 million), an 11% decrease from the previous year[6] - Research and development expenses were RMB 1,026,712 thousand, a decrease of 2.2% from RMB 1,008,843 thousand in the same quarter of 2022[19] Cash and Investments - Cash and cash equivalents, along with short-term investments, amounted to RMB 19.4 billion (USD 2.8 billion) as of March 31, 2023[8] - The company has a share repurchase plan approved in March 2022, allowing for the repurchase of up to USD 500 million of American Depositary Shares over 24 months, with a total of 2.6 million shares repurchased at a cost of USD 53.6 million as of March 31, 2023[8] - The company completed a private exchange of USD 384.8 million of notes for American Depositary Shares, funded by proceeds from a recent share issuance[9] - Cash and cash equivalents increased slightly to RMB 10,217,931 thousand as of March 31, 2023, from RMB 10,172,584 thousand as of December 31, 2022, showing a growth of approximately 0.44%[22] - The company’s cash and short-term investments totaled RMB 23,964,618 thousand as of March 31, 2023, down from RMB 24,452,888 thousand as of December 31, 2022, a decline of approximately 1.99%[22] Shareholder Information - The weighted average number of ordinary shares outstanding was 410,564,084 for the quarter ended March 31, 2023, compared to 393,538,141 for the same quarter of 2022[19] - Basic and diluted net loss per share was RMB 1.53, compared to RMB 5.80 in the same quarter of 2022[19] - The weighted average number of ordinary shares (basic) increased to 410,564,084 for Q1 2023, up from 393,538,141 in Q1 2022, representing an increase of approximately 4.31%[23] Future Projections - The company projects full-year net revenue for 2023 to reach between RMB 24 billion and RMB 26 billion, unchanged from previous estimates[11] - The adjusted net loss and adjusted earnings per share are non-GAAP financial metrics that exclude certain expenses and gains, providing insight into the company's core operating trends[14] Assets and Liabilities - As of March 31, 2023, total assets decreased to RMB 40,977,221 thousand from RMB 41,830,570 thousand as of December 31, 2022, representing a decline of approximately 2.04%[22] - Total liabilities decreased to RMB 23,389,554 thousand as of March 31, 2023, down from RMB 26,590,983 thousand as of December 31, 2022, a reduction of about 12.15%[22] - The total current liabilities decreased to RMB 16,700,327 thousand as of March 31, 2023, from RMB 17,093,404 thousand as of December 31, 2022, a decrease of about 2.30%[22] - The total equity attributable to shareholders increased to RMB 17,587,667 thousand as of March 31, 2023, from RMB 15,239,587 thousand as of December 31, 2022, indicating a growth of about 15.43%[22] - The company reported a decrease in accounts receivable (net) to RMB 1,273,156 thousand as of March 31, 2023, from RMB 1,328,584 thousand as of December 31, 2022, a decline of approximately 4.18%[22] ESG Commitment - The company emphasizes its commitment to ESG initiatives, showcasing efforts to create value with users and stakeholders in its 2022 ESG report[10]