iClick Interactive Asia Group Limited

Hello, ladies and gentlemen. Thank you for standing by for iClick Interact with the Asia Group Limited First Quarter 2021 Financial Results Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there'll be a question and answer session. Today's conference is being recorded. I would like to turn the call over to your host, Ms. Lisa Lee, Investor Relations. Lisa, please go ahead.

Hello, everyone, and welcome to ICLIC's first quarter 2021 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 first quarter 2021 results and share his thoughts on our execution strategy ahead. Chief Financial Officer Terence Lin will follow and give us additional insights on the financial results for the first quarter and provide guidance for second quarter and for year of 2021. He will then turn the call back to TJ for closing remarks before the call is open for Q&A. Before we continue, please know that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation 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 know that ICLEX earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. ICLEX press release contains a 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. Despite ongoing COVID-19 impact, fiscal 2021 began with a strong performance as we reported record first quarter revenue, gross profit, adjust EBITDA, and adjust net income. We are encouraged that revenue in our core marketing solution segment reached record first quarter levels of 54.8 million, up 23% year-over-year, benefiting from continuing ad spending recovery despite some lingering effects of the coronavirus pandemic. Likewise, the momentum in our enterprise solutions segment also remains quite strong, as this SaaS-based revenue reached $11.7 million in the first quarter, up 166% year-over-year, and reached another quarterly record for the sixth consecutive quarter. revenue from our higher margin enterprise solutions segment accounted for approximately 18% of total revenue, much higher than 13% in the first quarter of 2020 and 11% for all of fiscal 2020. These financial accomplishments are excellent indicators that we have the proper data-driven solutions and the business strategy to help our clients benefit from the digital transformation opportunities in China, not to mention the significant operating leverage inherent in our structure as we continue to increase revenue. We firmly believe we are in the right spot at the right time as the digital revolution in China continues to unfold. As I mentioned in our previous call, 2021 will be a year of investment in more new initiatives, particularly those that further develop and foster revenue in our SaaS-based enterprise solutions segment and M&A opportunities. In addition to extending our efforts to continue gaining market share among the key accounts clients, we have also started to tap into the mid-tier clientele to leverage our experience and the product offerings from the past two years. We remain on track to hit these objectives, and I'm happy to share with you more details on our strategy and execution. As a reminder, at the beginning of this year, we announced a strategic partnership with Baozun in which we will provide front-end solutions, including mini-programs and mini-programs store establishments. Sunspace tools and data analytics platforms while Baozhun will handle operations services and back-end infrastructure services to jointly target key account customers in China. The integration progress has been moving smoothly with both teams in frequent communication. Concurrently, both parties are introducing their respective clients to each other to help promote cross-selling opportunities. We are currently integrating all the technological resources and working on developed comprehensive solutions to fulfill demand from clients. We are also working on several pilot case clients and will share more details with you once they are ready. We continue to see significant synergies, not only from the one-stop solutions that key account customers desire, but also from exploring a number of target industry verticals to rapidly penetrate, giving our strong market presence on the track record. In addition to the extensive cross-selling opportunities we are seeing from the one-stop solutions developed with Baozun, we have also witnessed a higher conversion rate from over 3,000 clients in our marketing solutions segment and a more willingness from them to adopt enterprise solutions. With our data-driven products, we can address all the issues and challenges they will likely face when exploring the unprecedented opportunities from private domain traffic or smart retail, leveraging leading technological capabilities and key account customer service experiences from both iClick and Baozhun. As we continue aggressively gaining higher market share among the key account customers, we view the mid-end clientele segment as being a huge untapped market based on the number of merchants in this segment. Given this opportunity, we have developed and launched a series of standard SaaS products including ISERM, with different solutions targeting the unique needs of clients across some key industry verticals. We first introduced such solutions to the market in the first quarter, and the initial feedback from many mid-tier clients has been quite positive. As a result, we expect to start seeing some financial contribution from these new mid-tier clients beginning in the second quarter of 2021 and ramping at a faster pace in the second half of the year. In addition to fulfilling demand of domestic clients, we have also launched another standard SaaS-based product called iSmartGo. iSmartGo was specifically designed to fulfill the strong cross-border e-commerce demand from foreign brands that are aggressively taping into the enormous smart retail market in China, in part to capture the lost revenue due to travel restrictions resulting from the pandemic. iSmartGo helps those brands build and operate the own private domain traffic marketplace based on the WeChat ecosystem and eliminates the need for our clients to develop and maintain the necessary e-commerce infrastructure themselves. On the M&A front, we are always looking for opportunities to scale our product offerings both wider and deeper. Ideally, our M&A targets will have three key characteristics. First, we will offer cross-channel SaaS products or technological capabilities that will allow us to more easily manage omnichannel platforms, including but not limited to WeChat on behalf of our clients. Second, their products will enhance our current offerings, including data analytics capabilities, or offer more functionality modules beyond our current key focus on customer relations management. And third, they will already have a strong base of clients in certain industry radicals that we can cross-sell our current data solutions into. Our acquisition of Polly is a terrific example of how we carefully target a candidate and integrate it into our suite of digital solutions offerings. Polly has enhanced our marketing automation and broad expertise in widget-based SaaS solutions that has helped us accelerate the growth of enterprise solutions. We have been exploring and assessing the M&A opportunities carefully and will share future developments with you as any of them become mature. This concludes my opening remarks, and I would now like to turn the call over to our CFO, Terence Lee, to discuss the first quarter financials. Terence?