2022-08-30 14:30Financial Data and Key Metrics Changes - Total revenue for Q2 2022 was $62.5 million, a sequential growth of 13.1% but a year-over-year decline of 26.1% [4][20] - IoT PaaS revenue decreased by 38.1% year-over-year to $47.6 million, while SaaS and other segments grew by 114.3% year-over-year to $7.2 million [4][20] - Gross margin for the quarter was stable at 42.8%, with IoT PaaS gross margin at 42.5% [6][21] - Non-GAAP operating loss narrowed by 15.9% to $22.3 million, and non-GAAP net loss narrowed by 19.1% to $18.7 million [25] Business Line Data and Key Metrics Changes - IoT PaaS business saw a decline in DBNER to 84% due to inventory pressures and reduced orders from customers [6] - SaaS and other segments maintained over 110% year-over-year growth for ten consecutive quarters [4] - The number of IoT PaaS premium customers decreased from 285 to 267 year-over-year [8] Market Data and Key Metrics Changes - Major markets like the U.S. and Europe experienced significant slowdowns, while China showed slight growth [20] - Consumer electronics retail quantity in the U.S. was down about 30% year-over-year, with European customers reporting similar declines [32][33] - In China, smartphone shipments declined by around 15% year-over-year, and total retail sales of consumer goods fell by 4.6% [34] Company Strategy and Development Direction - The company aims to leverage technology and product strengths to explore new opportunities despite economic challenges [17] - Focus on expanding into stable industries beyond consumer electronics, including industrial and energy-related sectors [20][36] - Continued investment in product and technology iterations, with a focus on efficiency and profitability [19][24] Management's Comments on Operating Environment and Future Outlook - Management does not expect a demand recovery until inflation improves and inventory backlogs are cleared [31] - The global economic environment is complex, with rising energy and commodity prices adding downward pressure [34] - The company remains committed to achieving breakeven as a top priority [46] Other Important Information - The company repurchased approximately 11.2 million ADS for about $30 million during the quarter, reflecting confidence in long-term growth prospects [28] - Cash and short-term investments totaled $951.5 million as of June 30, 2022, providing sufficient liquidity for future needs [27] Q&A Session Summary Question: What is the management outlook in terms of the demand inflection point? - Management has not seen signs of a turning point in overseas demand for IoT devices, expecting improvement only with significant inflation reduction and inventory clearance [31][32] Question: What are the plans for headcount and cost control measures in the second half? - The company will continue to manage operations and drive expense control while dynamically evaluating employee numbers based on market demand [42][46]