Aurora(US:JG)2024-03-12 15:19Financial Data and Key Metrics Changes - The company achieved a total revenue growth of 5% quarter-over-quarter, driven mainly by Developer Services revenue [7] - Developer Services revenue decreased by 1% year-over-year but grew by 8% quarter-over-quarter [7] - Subscription services revenues were RMB48.8 million, up 5% year-over-year and quarter-over-quarter [8] - The company recorded a positive adjusted EBITDA for consecutive quarters, marking a historical achievement [17][20] Business Line Data and Key Metrics Changes - Value-added services revenues decreased by 60% year-over-year but increased by 38% quarter-over-quarter [9] - EngageLab business saw a 70% growth in customer sign-ups, reaching over 170 customers, and a 50% growth in commercial contract value to RMB15 million [10][26] - Financial risk management revenue grew by 17% year-over-year, supported by a 26% increase in customer numbers [12] Market Data and Key Metrics Changes - The overseas market, particularly for EngageLab, is identified as a key growth area, with strong demand for products [11][26] - The domestic market is expected to experience stable but relatively low growth [33] Company Strategy and Development Direction - The company aims to continue expanding its EngageLab business globally, particularly in Southeast Asia [26] - Management emphasizes cost control, with operating expenses decreasing by RMB108 million year-over-year, positioning the company for future growth [15][25] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining positive adjusted EBITDA in 2024, contingent on continued revenue growth [24][25] - The company acknowledges the slower growth in the domestic market but remains focused on international expansion [33] Other Important Information - The company repurchased 53,000 ADS in Q4 2023, totaling 188,000 ADS since the start of the repurchase program [21] Q&A Session Summary Question: Future trend of adjusted EBITDA - Management is optimistic about maintaining positive adjusted EBITDA in 2024, supported by reduced operating expenses and revenue growth [24][25] Question: EngageLab growth expectations and revenue contribution - Management expects continued growth in EngageLab, with a significant increase in customer numbers and contract value, although revenue contribution remains immaterial at this stage [26] Question: New customer accounts and industry trends - New customer growth is broad-based across various industries, with a shift towards outsourcing push notification services [30][31] Question: Impact of the Chinese economy on subscriptions - The domestic market is expected to grow slowly, while overseas markets are driving stronger growth [33] Question: Change in ARPU and growth potential - ARPU increased from RMB8,000 in Q1 2023 to RMB11,000 in Q4 2023, with expectations for continued but slower growth [36][37] Question: Recovery of non-subscription revenues - Financial risk management is expected to continue growing, while market intelligence remains slow due to demand for Chinese ADR data [40] Question: Cash flow sources and divestiture impact - The company received additional cash from a divestiture, which did not impact revenue [41][43] Question: Seasonality of revenue - Q1 is expected to be slow due to Chinese New Year, with stronger performance anticipated in Q2 and Q4 [46][47]