Financial Data and Key Metrics Changes - Total revenue for fiscal 2025 was $562 million, with 53% derived from digital sources, indicating a significant shift towards digital reliance over legacy print business [4][11] - Digital-only subscription revenue reached $94 million, with a year-over-year growth of 16% on a same-store basis, despite challenges from a cyber incident [4][11] - Adjusted EBITDA showed growth for the second consecutive quarter, reflecting effective cost management and operational execution [6][15] Business Line Data and Key Metrics Changes - The digital marketing services business, Amplified Digital Agency, surpassed $100 million in revenue with a 5% growth on a same-store basis [5][10] - Digital subscription revenue growth was 32% annually over the last three years, significantly outpacing industry peers [8][12] - Total digital revenue for fiscal 2025 was $298 million, representing 53% of total company revenue, highlighting the successful transition to a digital-first model [11][12] Market Data and Key Metrics Changes - Digital revenue growth was 2% on a same-store basis, indicating solid momentum in the digital transformation strategy [10] - The company nearly doubled the number of clients valued at over $1 million annually, showcasing the effectiveness of its innovative solutions [10] - The digital advertising revenue from Amplified Digital Agency contributed $103 million to the total digital advertising revenue of $184 million [10][11] Company Strategy and Development Direction - The company aims to achieve $450 million in digital revenue by fiscal 2030, supported by a three-pillar digital growth strategy [5][8] - There is a focus on diversifying and expanding offerings for advertisers, with a goal of over $250 million in digital advertising revenue by 2030 [19][20] - The company is transitioning towards a predominantly digital model, with a target of 90% digital revenue by fiscal 2030 [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive sustainable growth and deliver long-term value to shareholders, despite challenges faced in fiscal 2025 [7][15] - The company anticipates a positive lift in digital revenue and margin in 2026 as transformational projects come to fruition [15][17] - The upcoming $50 million common stock rights offering is expected to support digital transformation and deleveraging efforts [21] Other Important Information - The company executed a strategic termination of its fully funded defined benefit pension plan, enhancing balance sheet flexibility [17] - Cash costs decreased by 5% compared to the previous year, finishing at $524 million, reflecting disciplined cost management [16] - The company has identified $25 million of non-core assets for future monetization, which will improve liquidity [17] Q&A Session Summary Question: What was the total debt reduction in the fourth fiscal quarter and the full fiscal year? - The company reduced debt by $121 million since the credit agreement was launched in 2020. In fiscal 2025, excluding increases due to the cyber incident, debt was reduced by approximately $3.5 million [25] Question: No further questions were asked, and the call concluded with closing remarks from management [26]

Core Insights - The value of AI technology lies in its ability to transform the daily lives of ordinary people rather than merely achieving high rankings in various lists [1] - Generative AI is fundamentally reshaping the underlying logic of the smart terminal industry, with 60% of users integrating AI into their daily activities and 83% acknowledging its efficiency improvements [1] Group 1: AI Strategy and Applications - OPPO's AI strategy focuses on a "1+3" core application scenario, where "1" represents a system-level smart experience and "3" corresponds to imaging, productivity, and entertainment scenarios [1] - The company aims to transition smart terminals from being "efficiency tools" to "highly efficient personalized smart assistants" through technological innovation [1] Group 2: Technical Innovations - OPPO has developed an AI acceleration algorithm framework called AI Boost, which is integrated into its self-developed chip performance solution "Tide Engine" to enhance AI operation efficiency [2] - The collaboration with chip manufacturers has led to over 8 times decoding acceleration on the terminal side, achieving peak output speeds of over 200 tokens per second for 3B models [2] Group 3: AI Features and User Experience - OPPO has introduced various AI functionalities, including AI de-reflection, AI motion blur removal, and AI ultra-clear pixel enhancements in imaging [4] - In productivity, features such as AI article summarization, AI document processing, and AI recording summaries have been implemented [4] - For entertainment scenarios, OPPO supports AI to execute tasks like ordering food through voice commands, enhancing user interaction and service personalization [4]

Financial Data and Key Metrics Changes - Total operating revenue for the first quarter was $145 million, with total digital revenue growing 5% year over year, driven by a 14% increase in both digital subscription revenue and Amplify Digital revenue [14][18] - Digital revenue has grown more than 17% annually since FY 2021, translating to a 13% annual growth in digital gross margin, with a digital margin of 70% [14][15] - Digital subscription units increased by 8%, totaling 774,000 [26] Business Line Data and Key Metrics Changes - Digital subscription revenue grew 14% year over year, continuing to lead the company's growth [8][14] - Amplify Digital Agency revenue has significantly outpaced industry peers, growing 33% annually for the past three years [7] Market Data and Key Metrics Changes - Total digital revenue reached $320 million on a trailing twelve-month basis, including $102 million from Amplify Digital Agency [7] - The company is well-positioned to leverage AI partnerships to enhance digital revenue growth in the upcoming quarters [15][17] Company Strategy and Development Direction - The company is focused on digital transformation, leveraging AI to enhance customer engagement and advertising opportunities [6][10] - The three-pillar growth strategy aims to achieve total digital revenue of over $450 million by 2028, with continued growth in digital subscription revenue and new AI revenue opportunities [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance for FY 2025, citing cost management initiatives and growth from core digital businesses [25][27] - The company expects total digital revenue growth in the range of 7% to 10% and adjusted EBITDA to grow in the low single digits [18] Other Important Information - The company has identified $40 million in annual cost reductions to be executed by the end of the second quarter [16][27] - Over $5 million in asset sales were closed in the first quarter, with an additional $25 million of non-core assets identified for monetization [17] Q&A Session Summary Question: Plans to monetize AI library and value proposition for advertising customers - Management is evaluating the best return for their content library and is focused on the AI Boost program to provide advertisers with enhanced visibility in the digital marketplace [22][23] Question: Information on cost initiatives and confidence in digital revenue growth - Management highlighted three factors for confidence: growth from core digital businesses, acceleration from AI initiatives, and identified cost reductions [25][27]