iClick Interactive Asia Group Limited

Hello, ladies and gentlemen. Thank you for standing by for the iClick Interactive Asia Group Limited's 2022 First Quarter Unaudited Financial Results Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be the 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 2022 IQIC's first quarter on Audited 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-coick.com. In addition, during the call, management will give their prepared remarks in English. During the Q&A session, we will take questions in both English and Mandarin, and the third-party translator will provide consecutive translations. All translations are for convenience purpose only. In case of any translation discrepancy, management's statement in the original language shall prevail. Jian Tang, TJ Chairman, Chief Executive Officer, and co-founder of iClick, will first provide a high-level review of the 2022 first quarter results and share his thoughts on our execution strategy going forward. Chief Financial Officer David Chung will follow and give us additional insights on the financial results as well as provide guidance for second quarter. in full year of 2022. He will then turn the call back over to TJ 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 Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainty. 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 20-F, as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligations to update any forward-looking statements except as required under applicable law. Please also note 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 chairman, Chief Executive Officer and Co-Founder, Jian Tang. TJ, please go ahead.

Thank you, Lisa. And welcome to the call, everyone. The first quarter of 2022 for iClick was highlighted by the successful refinement of our product mix, which drove an increase in our growth margin despite challenging market conditions. On today's call, I will first discuss how we achieved this improvement, followed by how the macro uncertainties and other forces are affecting our implementations, and finally, how we will leverage current market conditions to build long-term shareholder value. The increase in our gross margin was achieved by our consistent focus on our higher margin enterprise solutions segment, while conjecturally unwinding lower margin, higher risk marketing solutions businesses. As a result, enterprise solutions revenue has continued its strong momentum growing by 34% year over year to 15.7 million, a record high among any historical first quarter for this segment. We are quite encouraged by this growth as it relates directly to what we expect to be the primary driver of our future revenue, our SAS plus X business model. This adjustment to our product mix will drive iClix's long-term success in the face of a complex, flawed landscape defined by COVID-19 involvement and shifting regulatory and macro influences. The contraction in the overall advertising industry has led to an adverse impact on our marketing solutions business. As we discussed in our last earnings conference call, we have undertaken concerted action to direct our continued investment in higher growth and higher margin enterprise solutions business. while selectively winding down our marketing solutions until such time as market conditions warranted resumption. The regulatory clamped down on certain industries we have served within our marketing solutions, as well as the strict COVID-19 measures to curtail the spread of the various have raised the challenges for us compared with the same period last year as we weathered these broad-based industry-wide phenomena. We believe our approach will help iClick better navigate these challenges, especially with the soft capital market landscape. narrowing the resources we can mobilize. Well, these market factors also continue to challenge our client implementations and onboardings of enterprise solutions business in the first quarter and beyond. We are optimistic that our strategic shifts will result in long-term value creation. Our SaaS Plus business model empowers brands in China amid these challenging market conditions and continuously involving business models as clients require a higher level of guidance and implementation from iClick regarding how they can enhance the consumers' loyalty and repurchase rates to drive continued revenue growth. As a result, we believe our growing footprint will uniquely position the company to continue to capitalize on the very much intact mega digital transformation trend in China. In view of this, we have relentless upgraded and improved our SaaS Plus product mix as we seek to meet the huge demands of our brand clients. For example, we launched the Douyin version of iFence, one of our data analytics products that helps brands identify the most appropriate KOL to conduct a promotion. This upgrade enlarges the coverage of iFence beyond its existing media platforms, Xiaohongshu and Bilibili. With this upgrade, we are also able to articulate the one-stop smart marketing strategy for the brand clients and can nimbly adjust the strategy with real-time data analytics feedback. Another strong case study is the value we have helped XTAP, a leading PLC-based professional sports brand, achieve in advertising the appropriate and customized content marketing strategies based on products' features to attract different groups of users and the various scenarios. In addition to the powerful data analytics features provided by iFence. We also have a dedicated operations team to facilitate the execution, ensuring the client's customization and involving improvement with our deep experience and trusted guidance, realizing the true value of the SaaS Plus business model, the key strategy of our enterprise solutions. In addition to our product, upgrades, we were honored to receive numerous awards, both domestically and internationally, which recognized our innovative efforts and outstanding products. Most notably, the Hong Kong Institute of Marketing awarded iClick as the winner of market leadership in digital technology of 2021. We were also recognized by the prestigious Asia Pacific Stevie Awards, International Business Awards competition, open to all organizations in the 29 nations of the Asia Pacific region, receiving four gold stripes and for achievement in product innovation, innovation in paid media planning and management, most innovative advertising or marketing team of the year, as well as the marketing campaign of the year for COVID-19 related information. Additionally, as part of 2024 Asia's Most Valuable Companies in Hong Kong Awards, iClick was recognized as Asia's most reliable marketing technology platform. And finally, at the Digital Media Awards in Great China, we were named the Digital Media Innovator of the Year. We are heartened by the strong industry recognition as it serves to validate our extraordinary efforts in delivering the most compelling and innovative solutions serving the digitalization of China. This concludes my opening remarks, and I would now like to turn the call over to our CFO, David Zhang, to discuss the first quarter of 2024 financial results. David, please go ahead.