Aurora(JG) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company achieved its first-ever quarterly GAAP net profit in Q2 2025, marking a significant milestone in its history [7][32]. - Total revenue for Q2 was RMB 89.9 million, representing a year-over-year growth of 13% and reaching the higher end of the guidance provided [8][32]. - Gross profit increased to RMB 59.6 million, the highest level achieved in the past ten quarters, with a gross margin improvement [24][25]. - Operating expenses grew by 11% year-over-year, which was lower than the revenue growth rate, indicating effective cost management [26][32]. Business Line Data and Key Metrics Changes - Developer Services revenue grew by 14% year-over-year, driven by a strong performance in subscription and value-added services [14][15]. - EngageLab, the flagship product, recorded a total contract value of RMB 11.2 million in Q2, with revenue growth of 67% year-over-year [16][19]. - Financial Risk Management business saw a revenue increase of 27% year-over-year, supported by a 48% growth in customer numbers [21][22]. - Market Intelligence revenue decreased by 38% year-over-year due to weak demand, but upgrades to the product are expected to improve future performance [23][24]. Market Data and Key Metrics Changes - EngageLab's customer base increased by 25% sequentially, reaching 1,058 customers, with sales in over 45 countries [17][18]. - The domestic market showed solid year-over-year growth, contributing to the overall performance alongside international markets [39]. Company Strategy and Development Direction - The company is focused on expanding its global footprint and enhancing its service capabilities through localized teams in key markets [45]. - The strategy includes leveraging AI technology through its platform, gbpboss.ai, to drive innovation and growth [12][39]. - The management emphasized the importance of operational efficiency and cost control to sustain revenue growth while maintaining high gross margins [12][25]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to maintain quarterly GAAP net profits moving forward, attributing success to a collaborative effort and strategic execution [40]. - The company anticipates Q3 revenue guidance to be between RMB 88 million and RMB 91 million, reflecting a year-over-year growth of 11% to 15% [34][35]. Other Important Information - The company repurchased 27,000 ADS in Q2, with a total of 323,000 ADS repurchased since the start of the program [35]. - The net dollar retention rate for the core developer service business stood at 99%, indicating strong customer retention and upsell potential [28][29]. Q&A Session Summary Question: Factors behind the great results in Q2 and outlook for future GAAP net profits - Management attributed the strong performance to employee contributions, strategic execution, and growth in both domestic and international markets [38][39]. Question: Current and future states of EngageLab - EngageLab is serving customers in over 45 countries with a total signed contract amount of RMB 113 million and a year-on-year revenue growth of 67% [42][45].