Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were RMB168.3 million, a decrease from RMB180.2 million in the same period last year [11] - Net advertising revenues were RMB154.7 million, down from RMB161.8 million year-over-year [11] - Paid services revenues decreased to RMB13.6 million from RMB18.4 million in the same period last year [11] - Cost of revenues decreased by 17.2% to RMB102.9 million, resulting in an increase in gross margin from 31% to 38.9% [12] - Loss from operations improved to RMB8.9 million from RMB35.7 million year-over-year [12] - Net loss attributable to the company was RMB5.5 million, significantly improved from RMB31.3 million in the same period last year [12] - As of June 30, 2024, cash and cash equivalents totaled RMB989.1 million (approximately US$136.1 million) [12] Business Line Data and Key Metrics Changes - The company successfully covered major events, enhancing media influence through high-quality content and extensive online distribution [5][6] - The original video service, Phoenix Lab, produced 23 long videos and 72 short videos, achieving a total of 1.7 billion views across platforms [8] - The advertising revenue from third-party platform accounts achieved double-digit growth year-over-year [10] Market Data and Key Metrics Changes - The overall internet media ad spending experienced a year-over-year decline in the first half of 2024, but the company's advertising revenue remained stable with a slight increase [14] - Significant growth was observed in key areas such as alcoholic beverages, FMCG, and the public sector [15] Company Strategy and Development Direction - The company aims to strengthen its professional capabilities, produce quality content, and optimize user experience as core competitiveness [11] - Focus on expanding efforts in international marketing, particularly with the upcoming Paris Olympics [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the advertising market but expressed confidence in maintaining revenue through diversification into other sectors [14][16] - The company forecasts total revenues for Q3 2024 to be between RMB151.6 million and RMB166.6 million [13] Other Important Information - The company is committed to refining products and fostering innovation in both content and commercial products [5] Q&A Session Summary Question: Growth rate of the internet advertising market seems to be slowing down; what are the management's views on the forward advertising market? - Management noted a year-over-year decline in overall internet media ad spending but highlighted stable advertising revenue with slight increases, particularly in sectors like alcoholic beverages and FMCG [14][15][16]
Phoenix New Media(FENG) - 2024 Q2 - Earnings Call Transcript