Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| I guess, yes, we are very pleased with the fact that we delivered another quarter of positive adjusted EBITDA in Q4 of 2023 |
| Fourthly, our gross profit also grew in every quarter of 2023 |
| And this 70% revenue -- customer number growth is simply impressive |
| This is very important as we are collecting more cash in the advance from customer and this greatly improve our cash flow, at the same time, mitigate risk of bad debt |
| Firstly, we have a record, for the first history, consecutive quarters of positive adjusted EBITDA |
| Gross profit has also recorded sequential growth in all quarters of 2023 |
| And for the first time in the history, we have consecutive quarters of positive adjusted EBITDA |
| And for the quarter ended 12/31 '23, the adjusted EBITDA which is calculated as an EBITDA excluding share-based compensation, reduction in force charges, the impairment of long-term investment and change in fair value of foreign currency contracts, we recorded another positive adjusted EBITDA in this quarter |
| Last but not least, our overseas product, EngageLab, continue to expand globally and recorded great results this quarter |
| We are very pleased with the Q4 execution efforts and numbers |
| This is a great result, well done |
| So, if I may summarize, I would like to leave this message with you and all the callers in today's call is the fact that our EngageLab business is doing great |
| We continue to see strong demand for our EngageLab products overseas |
| I'm very encouraged by this trend and believe more good results will come |
| So, it seems that it has been doing great with better than our expectation results in terms of customer number and contract value every quarter |
| I think at this stage, the Company is well managed and ready to -- is ready for the next growth phase cycle |
| Overall, we are very pleased with our expense control and monitoring efforts between the years |
| And I believe besides the fact that you, our shareholders and investors are really thrilled see this positive adjusted EBITDA that we have recorded |
| With this much lower OpEx, we are in a good position for 2024 |
| I'm very proud of the hard work that the team has putting over the past quarter in order to record such an impressive customer number and contract value growth |
| Within the year 2023, the Subscription Services revenue grew sequentially in all four quarters, mainly due to the steady increase in ARPU throughout the year |
| The 17% year-over-year revenue growth was positively impacted by a 26% customer number growth |
| And as mentioned by Chris, he's really happy to see that things have been trending well |
| As I said, so long as we continue to grow our top line domestically or through EngageLab globally, I believe sooner or later the positive adjusted EBITDA will come as a natural course of events |
| Thirdly, Developer Subscription revenue also recorded sequential revenue growth in all quarters of 2023 |
| Next, I would like to share with you on some exciting news and great achievements we did have in Q4 for our EngageLab business |
| And this is a historical event where we have consecutive quarters of positive adjusted EBITDA |
| This is the eighth consecutive quarter where our deferred revenue balance has exceeded RMB130 million |
| So, in summary, we do have high hopes for this business to grow every single quarter |
| In Q4 of 2023, our total revenue and Developer Subscription revenue grew in every single quarter of 2023 |
| Statement |
|---|
| Q1 will be -- it will be difficult to get positive EBITDA |
| As for market intelligence, the revenue decreased 40% year-over-year and 10% quarter-over-quarter due to the continued great demand for Chinese-based app data as the investment sentiment towards Chinese ADR still remains lackluster |
| Vertical Applications had a tough quarter, where revenue recorded single-digit decline both year-over-year and quarter-over-quarter |
| Developer Services revenue, which consists of subscription services and value-add services, decreased to 1% year-over-year but grew 8% quarter-over-quarter, mainly due to the weakness in the value-added services, offset by the 5% growth in subscription services |
| This is by no means an easy task consists during the top overseas market environment and the uncertainty causing the air |
| And for Vertical Applications, I think overall, market intelligence is still a bit slow in terms of the demand for Chinese ADR APP numbers |
| In summary, our Q4 OpEx has decreased year-over-year by RMB34.2 million |
| If you look at overall in terms of business, even the entire China, if I may, the Q1 will be slow simply because of the fact that it's Chinese New Year, February is a shorter month, everybody is away |
| And then lastly, on seasonality, I assume the first quarter is your weakest quarter given holidays |
| Value-added services revenues were RMB6.8 million decreased 60% year-over-year but increased by 38% quarter-over-quarter, which was due to the annual single day and Double 12 online shopping festival in Q4, where advertisers increased their spending and more budget allocation to us |
| And if you look at the OpEx on an annual basis, it has decreased by RMB108 million between the years, representing a 30% decrease year-over-year |
| So Q1 will definitely be a slow season |
| But the growth is much slower compared to EngageLab |
| In particular, R&D expenses decreased by 23% year-over-year to RMB27.1 million mainly due to lower headcount and reduced salary costs and associated share-based compensation and a decrease in server depreciation expenses due to the growing cloud initiative |
| Correct me if I'm wrong |
| We even reduced our office rental space |
| But it seems like that revenue base has stabilized |
| The Q4 operating expenses was at RMB61.2 million, representing 36% decrease year-over-year but slightly increased 2% quarter-over-quarter |
| Between the years, the annual OpEx of between 2023 and 2022 has actually decreased by RMB108 million |
| G&A expense decreased by 66% year-over-year to RMB12.1 million, mainly due to onetime noncash impairment loss of RMB32 million recognized in last year Q4 of 2022 |
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