Financial Data and Key Metrics Changes - The company reported total ARR of $1.704 billion, growing 4.1% year over year, exceeding guidance by $18.6 million [27] - Cloud subscription ARR reached $848 million, representing a 30% year-over-year growth, also above guidance [27][12] - Total revenue was $400 million, an increase of 3.9% year over year, exceeding guidance by approximately $14 million [31] - Non-GAAP operating income grew 11% year over year to $122 million, exceeding guidance [36] Business Line Data and Key Metrics Changes - Cloud subscription ARR now constitutes nearly 50% of total ARR, up from 40% a year ago [28] - Self-managed subscription ARR declined to $422 million, down 16% year over year [29] - Maintenance ARR was $433 million, down 9.5% year over year [29] Market Data and Key Metrics Changes - U.S. revenue grew 6% year over year to approximately $256 million, representing 63% of total revenues [35] - International revenue grew 1% year over year to $148 million, representing 37% of total revenue [35] Company Strategy and Development Direction - The company is in the final phase of its transformation to a cloud-only business model, with a focus on cloud modernization and new customer acquisition [5][10] - The company aims to reach a billion-dollar business in cloud subscription ARR [10] - The partnership with Databricks is expected to enhance enterprise modernization efforts and leverage AI capabilities [16][70] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about customer buying behavior and the health of the cloud pipeline despite a fluid macro environment [7] - The company has not seen a noticeable change in customer buying behavior through April [7] - Management reaffirmed full-year guidance, indicating confidence in achieving targets despite external challenges [40] Other Important Information - The company has implemented operational changes to improve cloud renewals, which have shown positive results [9][68] - The company is recognized as a leader in the 2025 Gartner Magic Quadrant for Augmented Data Quality Solutions [19] Q&A Session Summary Question: Clarification on full-year guidance and FX impact - Management clarified that the revised guidance is not a reflection of deteriorating business trends but a decision not to adjust for FX tailwinds [50][51] Question: Concerns about maintenance and self-managed ARR decline - Management indicated that the decline is expected and consistent with prior guidance, driven by natural churn and modernization efforts [52][54] Question: Cloud renewals performance - Management stated that cloud renewal rates were consistent with expectations and showed sequential improvement [57][58] Question: Net new ARR dynamics - Management explained that Q1 is typically smaller and the results were in line with expectations, with a larger Q2 anticipated [61] Question: Competitive landscape and partnerships - Management noted that the competitive dynamics remain stable, and partnerships, particularly with Databricks, are yielding positive results [70] Question: Impact of new data governance vendor acquisitions - Management downplayed the competitive threat from smaller vendors, emphasizing the fragmented nature of the market [82][84]

Core Viewpoint - Yonyou Network (SH:600588) announced plans to issue overseas shares (H-shares) and list on the Hong Kong Stock Exchange as part of its globalization 2.0 strategy, but investor sentiment remains skeptical due to the company's poor financial performance and recent history of leadership changes [1][3][14]. Financial Performance - Yonyou's revenue growth has significantly declined since 2019, with a reported revenue of 9.153 billion yuan in 2024, marking a year-on-year decrease of 6.57% [3][5]. - The company's net profit has also suffered, with a cumulative loss of approximately 3.028 billion yuan over the past two years, erasing the net profit accumulated from 2019 to 2022 [4][5]. - As of the end of 2024, Yonyou's cash reserves stood at 6.424 billion yuan, with short-term borrowings of 4.358 billion yuan, indicating short-term financial pressure despite manageable long-term debt [5]. Market Sentiment - Investor reactions to the announcement of the Hong Kong listing have been largely negative, reflecting a lack of confidence in Yonyou's ability to improve its financial situation [1][3]. - The company's stock price has dropped from a peak of 53.56 yuan in 2020 to around 13.7 yuan, indicating significant investor discontent [3]. Strategic Challenges - Yonyou's transition to cloud services has faced difficulties, with increased sales expenses totaling 8.545 billion yuan from 2020 to 2023, which have outpaced R&D expenses [8][9]. - The company's cost of sales has risen sharply, with the cost ratio increasing from 34.57% in 2019 to 49.27% in 2023, driven by higher outsourcing costs and increased personnel expenses [9]. Leadership and Governance - Yonyou has experienced multiple leadership changes in recent years, raising concerns about strategic stability and the future direction of the company [14][15]. - The recent appointment of a new president and the return of the founder to leadership roles highlight ongoing governance challenges [17]. Globalization Efforts - Yonyou's overseas business has seen over 50% growth, with operations established in more than 40 countries and regions, serving over 1,300 clients [18][19]. - However, the company faces challenges in replicating its domestic service experience abroad, which may require additional investment and resources [19]. Technological Opportunities - The introduction of AI models like YonGPT represents a potential growth opportunity for Yonyou, as the enterprise service market evolves towards AI integration [20]. - The company aims to leverage AI to enhance operational efficiency and reduce costs, although this will require sustained investment in R&D [20].