iClick Interactive Asia Group Limited

Hello, ladies and gentlemen. Thank you for standing by for iClick Interactive Asia Group Limited's fourth quarter and full year 2020 financial results conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Lisa Lee, Investor Relations Director. Lisa, please go ahead.

Hello, everyone, and welcome to ICLIC's fourth quarter and four-year 2020 Financial Results Conference Call. The company's results were issued earlier today and are posted online. You can download the earnings press release and sign up for our distribution list by visiting the IR section of our website at ir.i-click.com. Jian Tang, T.J., Chief Executive Officer and co-founder of iClick, will first provide a high-level review of the fourth quarter and fiscal year 2020 results and share his thoughts on our execution strategy ahead. Chief Financial Officer Terrence Lee will follow and give us additional insights on the financial results for the fourth quarter and fiscal year 2020 results. and provide guidance for first quarter and full year of 2021. He will then turn the call back over to T.J. for closing remarks before the call is open for Q&A. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Legislation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's 20F, as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that ICLIC's earnings press release in this conference poll includes discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. ICLIC's press release contains the reconciliation of the unaudited non-GAAP measures to the most directly comparable unaudited GAAP measures. I will now turn the call over to our chief executive officer and co-founder, Jian Tang. TJ, please go ahead.

Thank you, Lisa, and welcome to the call, everyone. Given the global challenges faced in 2020 brought about primarily by the COVID-19 pandemic, I'm extremely gratified to share with you our strong financial results for 2020, which I believe are a testament to the correct strategy we have implemented under the strong execution and the dedication of all the iClickers, the employees at our company. Our customers continue to find tremendous value in our integrated data-driven solutions as they embrace the digital transformation opportunities in China. Meanwhile, we have formed close partnerships with many of the industry-leading technology players, including but not limited to Tencent and Baozun. These factors lead us to believe that a very bright future lies ahead. especially as the global economy continues to recover from the pandemic's impact and as China's digital revolution continues to evolve. Despite its devastating impact, the COVID-19 pandemic has helped educate current and potential brand customers about the importance of digital transformation. online to offline data integration and data analytics in the efforts to successfully devise personalized marketing campaigns, enhance the operating efficiency, and ultimately boost the sales revenue. Thanks to our key account customers' focused strategy and market-leading position, Our enterprise SaaS solutions segment saw its revenue nearly triple year over year in 2020 to 28.9 million US dollars. This was, of course, one of the significant growth drivers of our financial performance in 2020. and we expect continued growth in this segment to play a major role in our future financial growth. 2020 was another record-setting year for us, as we hit historical highs across our key financial and operating metrics, including gross billions, revenue, gross profit, adjusted EBITDA, and adjusted net income. What is especially exciting to us is that 2020 was the first time we realized the four-year positive adjusted net income, which is a true milestone for our company. It indicates that we have successfully reached sufficient economies of scale with marketing solutions and underscores the pivotal strategy of and execution within our enterprise solutions segment. As I mentioned in the past and reiterated in the shareholder letter issued in January, key to our strategic and financial goals is improved profitability in marketing solutions. Further growth in the higher margin enterprise solutions business and additional partnerships with other global technology players and leaders to further complement our product offerings, reach, and penetration, especially in the enterprise solutions segment. To this end, we started 2021 off strong with our strategic partnership with Baozun, a leading brand e-commerce service partner. that helps brands execute the e-commerce strategies in China. Additionally, Baodun has become an important strategic shareholder of iClick, which underscores the importance of this partnership for both iClick and Baodun. In this partnership, iClick will provide front-end SaaS-based solutions as well as a data analytics platform. while Baozun is responsible for the online operation services and the back-end infrastructure services to brands. Together, we will establish an industry-leading private domain traffic e-commerce solution based on the Tencent ecosystem. This strategic partnership will provide lots of synergistic benefits for iClick, first we will benefit from cross-selling opportunities to over 260 of Baozun's brand partners. Having immediate access to such new potential key accounts is quite significant for us, and we will work diligently to gain business from such new opportunities. Second, we can accelerate the conversion rate of our existing clients in our marketing solutions to enterprise SaaS solutions with the comprehensive Turkey solutions we provide to customers. These joint efforts will save our brand partners from having to develop and maintain the infrastructure to conduct e-commerce business on WeChat. Recall that We serve more than 3,000 marketing solution clients, and being able to convert many of these customers to higher-margin enterprise solutions customers would certainly fit our longer-term strategy. We are confident we can become the first choice for key account customers through this partnership with Baozun. Expertise the market share gains. among the key account customers and in turn enjoy significant upside here. Lastly, this strategic partnership will allow us to concentrate our resources on developing the standard SaaS products we will use to penetrate the mid-tier client segment. which will become another growth driver for enterprise SaaS solutions business. We have focused on the key account customers over the past two years since we launched enterprise solutions in 2019 and have accumulated deep expertise for selective industry verticals. We are able to now leverage and replicate the standard modules used successfully with those early customers to tap into a wider clientele. In view of the huge market potential, we anticipate committing more resources to enhance not only our research and development efforts, but also marketing initiatives. We have already established R&D centers in Xi'an and Hefei. where we are aggressively building up a stronger R&D labor force to devote to the customized solutions and developing the standard products. Moreover, we want to further penetrate the mid-tier client market, and to this end, we also introduce and work with a number of potential distributors to help us drive additional revenue from the less penetrated customer segment. Looking ahead, we see 2021 as a year full of opportunities and investments. As always, we remain very open to M&A opportunities that can complement our current product offerings for enhance our market leading capabilities in data analytics and omni-channel management. As an example, our announced acquisition of Polly will enhance our marketing automation and brings rich expertise in widget-based CRM, e-commerce, and marketing SaaS solutions in China. and will be an appropriate product for both mid-tier clients and key account customers. Beyond the continuous product offerings enhancement, we are also keen to explore targets or partnerships that have already built a significant number of specific industry verticals clients, which we are able to cross-sell our products to. With these, we are confident we can see synergistic benefits from both product integration and the acquisition of new clients through cross-selling opportunities. In the meantime, we will continue to execute on our international expansion strategy, which will be primarily driven by the partnerships we have formed in 2020 due to travel restrictions resulting from the pandemic. We also see greater urgency for the international brands to execute the China expansion strategy and expect this dynamic to offer us additional growth possibilities. This concludes my opening remarks, and I would now like to turn the call over to our CFO, Terence Li. to discuss the fourth quarter and four-year 2020 financials. Terence? Thank you, TJ.