Investor Presentation Fourth Quarter 2017 FORWARD-LOOKING STATEMENTS These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical facts contained in these slides and the accompanying oral presentation, including statements regarding Yelp Inc.'s ("Yelp" or the "Company") future operations, expected financial results and future financial position, future revenue, the strategic partnership with Grubhub (including its anticipated timi ...

Group 1 - Bilibili has introduced support rules for animated short dramas, offering cost coverage of 30% to 100% and revenue sharing up to 80% to creators and related companies, driven by strong growth in this segment [1] - In Q1 of this year, animated short dramas on Bilibili achieved monthly revenues in the tens of millions, with a quarter-on-quarter growth rate of nearly 140% [1] - Thousands of licensed web novels have been adapted into animated short dramas by Bilibili creators this year, with one adaptation attracting 45,000 paid viewers, generating estimated total revenue of 800,000 to 1,000,000 yuan [1][3] Group 2 - Compared to live-action short dramas, animated short dramas have lower production costs, with AI-assisted production reducing costs by 70% to 90% [4] - The market for animated short dramas is experiencing significant demand, with over 500 million potential users in the broader anime community [4] - Major platforms like Douyin and Hongguo have also begun collaborating with animation companies to produce low-cost animated short dramas, with production costs around 100,000 yuan [4]

Core Insights - The user base for micro-short dramas in China is projected to reach 662 million by December 2024, accounting for 59.7% of the total internet users, with a market size of 50.4 billion yuan, surpassing the total box office revenue for films in the same year [2][11]. Group 1: Industry Developments - Kuaishou has announced the shutdown of its short drama mini-program, confirming the decision through internal communications [3][6]. - This is not Kuaishou's first action against the short drama category, as it previously removed nearly 100 non-compliant micro-short dramas and over 150 accounts for violations in May and June [5][6]. - The rationale behind Kuaishou's decision to close the mini-program is attributed to the rise of free short dramas and the decline of paid options, aiming for content quality improvement and specialized operation in the short drama ecosystem [6]. Group 2: Competitive Landscape - Tencent has launched its own short drama mini-programs, including "Mars Watch Drama" and a new "Short Drama" program, emphasizing free access to high-quality content [7][10]. - Tencent's strategy includes leveraging its vast user base on WeChat to facilitate social sharing and content discovery, aiming to capture market share in the competitive short drama space [10]. - The partnership with the reading group, which plans to upgrade its short drama offerings, provides Tencent with a wealth of quality story materials, enhancing its competitive edge [10]. Group 3: User Behavior and Preferences - A survey in Ningbo revealed that 81.15% of respondents have watched short dramas, with average daily viewing times concentrated between 10-30 minutes, indicating a preference for consuming content during fragmented time [12]. - Approximately 31% of respondents have paid for short drama content, with average monthly spending between 10-50 yuan, highlighting a willingness to invest in quality content [14]. - The core audience for short dramas primarily consists of Generation Z and working professionals, who value content quality and innovation, steering clear of low-quality, homogeneous offerings [14].

Group 1 - The core point of the articles highlights the significant growth of Bilibili's (B站) animation short dramas, with monthly revenue surpassing 10 million RMB in Q1 2025, which is approximately 50 times that of the same period last year [1] - In 2024, the consumption of animation short dramas on Bilibili exceeded 100 billion views, maintaining a year-on-year growth rate of over 10% [1] - Bilibili's entry into the short drama sector began in March 2025, utilizing a paid viewing model rather than the ad-revenue sharing model used by competitors like Douyin and Kuaishou [1] Group 2 - Data from the previous quarter indicates that the audience for animation short dramas exceeded 2 billion, with a paid user base surpassing 26 million, resulting in a revenue growth rate of 204.11% in the animation short drama sector [6] - A variety of high-quality animation short dramas have emerged on Bilibili, appealing to diverse audiences with different themes, contributing to strong commercial performance [6] - The competition in the animation short drama industry is expected to intensify, with Bilibili potentially gaining a market advantage due to its large number of content creators and audience base [6]

Core Insights - The rise of AI chatbots is significantly impacting online media revenue, with Google AI tools reducing traffic to content providers [1][2][3] - Reddit is positioned to potentially benefit from these changes due to its user-generated content and partnerships with Google [4][22] Industry Impact - Online publishers are experiencing a decline in traffic and revenue, leading to staff cuts; for example, Business Insider reduced its workforce by 21% [2][4] - Google's introduction of AI summaries and AI Mode is causing a substantial drop in organic search traffic, with Business Insider's traffic falling by 55% from April 2022 to April 2025 [3][11] - AI Overviews are reducing traffic to websites by 30% to 70%, with 60% of Google searches ending without a click on any links [14][12] Reddit's Position - Reddit's stock has increased by 191% since going public in March 2024, with Q1 2025 revenue rising 61% to $392 million, exceeding expectations [18][24] - Reddit has launched AI-powered marketing tools to enhance advertising effectiveness and is focusing on converting logged-out users to logged-in accounts for better ad revenue [20][22] - Despite its positive outlook, Reddit faces challenges from macroeconomic uncertainty and the complexity of its relationship with Google [21][22] Analyst Perspectives - Analysts are divided on Reddit's future, with some expressing concerns about the high percentage of logged-out users affecting revenue potential; one analyst lowered the price target from $168 to $115 [24][23] - The average price target among 23 Wall Street analysts suggests a 25% upside if Reddit meets expectations [24]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2][3] Group 2 - The company is focused on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4] - Automation and software tools, including generative AI, are utilized, but all content is edited and authored by humans [5]

Market Overview - All three major U.S. stock market indices fell by more than 1% on June 13 due to missile strikes between Israel and Iran, impacting global stock markets negatively [1] - Investors are concerned that these geopolitical tensions could lead to increased oil prices and upward pressure on global commodity prices [1] Investment Recommendations - Suggested low-leverage stocks for safeguarding portfolios during market turmoil include Novartis (NVS), The Ensign Group (ENSG), MasTec (MTZ), Bilibili (BILI), and Sterling Infrastructure, Inc. (STRL) [2][10] - These stocks are characterized by low leverage, making them potentially safer options for investors [2][10] Understanding Leverage - Leverage refers to the practice of borrowing capital for operations and expansion, typically through debt financing [4] - Excessive debt financing can lead to significant losses, hence the importance of selecting companies with low debt levels [5][6] Debt-to-Equity Ratio Analysis - The debt-to-equity ratio is a key metric indicating a company's financial risk, with a lower ratio reflecting better solvency [7] - High debt-to-equity ratios can turn favorable earnings into losses during economic downturns [8] Stock Selection Strategy - A prudent investment strategy involves choosing stocks with low debt-to-equity ratios to ensure steady returns [9] - Additional screening criteria include being less leveraged than industry peers, trading at a minimum price of $10, having substantial trading volume, and showing positive earnings growth expectations [12][13] Company Highlights - **Novartis (NVS)**: Reported a 7.1% improvement in 2025 sales estimates and has a long-term earnings growth rate of 7.9%, currently holding a Zacks Rank 2 [15][16] - **The Ensign Group (ENSG)**: Anticipates a 15% year-over-year sales improvement in 2025, with a long-term earnings growth rate of 15% and a Zacks Rank 2 [17][18] - **MasTec (MTZ)**: Achieved a 6% year-over-year revenue increase and expects an 11% sales improvement in 2025, with a significant earnings growth estimate of 53.7% [19] - **Bilibili (BILI)**: Experienced a 24% revenue increase year-over-year and anticipates an 11.3% sales improvement in 2025, with a Zacks Rank 2 [20] - **Sterling Infrastructure (STRL)**: Reported a 7% revenue increase and a 29% surge in adjusted earnings per share, with a long-term earnings growth rate of 15% [21][22]

Core Viewpoint - The rapid growth of live-streaming e-commerce platforms, particularly Kuaishou, has significantly contributed to job creation and provided new employment opportunities, especially for young people [4][5][6]. Group 1: Employment Impact - Kuaishou has created 43.2 million job opportunities, with 23 million directly through the platform and 20.2 million indirectly through related industries [4]. - The platform's GMV (Gross Merchandise Volume) increase of 1 billion yuan can generate approximately 1,200 jobs [4]. - The rise of new professions related to live-streaming, such as online anchors and live recruitment specialists, reflects the platform's influence on the job market [4][5]. Group 2: Youth Employment Opportunities - The platform has introduced 174 new job types, expanding the career options available to young people, with 90% of youth viewing these new professions positively [5]. - Kuaishou plans to release over 50 internship positions for college students in various technical fields, aiming to cultivate 10 million skilled professionals in new occupations over the next three years [5][6]. Group 3: Innovative Recruitment Methods - Kuaishou's "Kuaipin" platform has transformed traditional recruitment by connecting blue-collar workers with high-demand manufacturing jobs through live-streaming, enhancing job matching efficiency [6][7]. - The platform has seen over 250 million users seeking job opportunities monthly, indicating a robust demand for its innovative recruitment approach [6][7].

Group 1 - Bilibili Inc. has completed the repurchase of its 1.25% Convertible Senior Notes due 2027, with a total of US$66,000 in principal amount validly surrendered before the expiration of the repurchase right [1] - The repurchase right expired on June 12, 2025, at 5:00 p.m. New York City time, and the company has accepted all surrendered Notes for repurchase [1] - The cash purchase price for the surrendered Notes has been forwarded to the paying agent for distribution to the applicable holders [1] Group 2 - Bilibili is a leading video community in China, focusing on enriching the lives of young generations through a wide array of video-based content [2] - The company is known for its "bullet chatting" feature, which enhances user engagement by allowing real-time comments during video viewing [2] - Bilibili aims to promote Chinese culture globally while fostering a community centered around aspiring users and high-quality content [2]

Incident Overview - The incident involving Bilibili was significant, lasting nearly four hours and affecting a wide range of services, leading to widespread discussion on social media platforms [3][19]. - The issues began around 5 PM and included homepage errors, video playback failures, and comment section unavailability, culminating in a complete service disruption [4][7][9][11]. Technical Analysis - The root cause of the incident was identified as a failure in the Service Discovery system, which is crucial for routing user requests to the appropriate servers [19][20]. - Approximately 10% of requests failed due to this issue, indicating that Bilibili had multiple instances of the Discovery service deployed, allowing some requests to still succeed [17][21]. - The 504 Gateway Timeout errors confirmed that while requests reached the gateway, the backend services were unresponsive, highlighting the dependency on the Discovery system [20][21]. Lessons Learned - The incident underscored the importance of infrastructure, particularly foundational services like Service Discovery, which, while invisible to users, can have a massive impact when they fail [26]. - The incident also demonstrated the necessity of high availability design, as the 5%-10% failure rate indicated effective disaster recovery mechanisms were in place [26]. - Monitoring and alerting systems proved valuable in quickly identifying the Discovery failure, showcasing the effectiveness of Bilibili's monitoring infrastructure [28].