iClick Interactive Asia Group Limited

Hello, ladies and gentlemen. Thank you for standing by for iQIC Interactive Asia Group Limited's 2022 Second Quarter Unaudited Financial Results Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. At this time, I'd like to turn your call over to your host, Ms. Leigh Lisa Lee, Investor Relations Director. Lisa, please go ahead.

Hello, everyone, and welcome to ICLIC's 2022 second 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.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 in Mandarin, and a third-party translator will provide subsequent translations. Please note that all translations are for convenience purposes only. In case of any translation discrepancy, management's statement in the original language shall prevail. Jian Tang, teaching chairman, chief executive officer, and co-founder of iClick will first provide a high-level review of the 2022 second quarter results and share his thoughts on our execution strategy going forward. Chief financial officer, David Zhang, will follow and give us additional insights on the financial results We will then turn the call back 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 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 20-F, 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 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. Welcome to the call, everyone. I will first share our challenges, approaches, and strategies over the past quarter and after how we envision building our business future. Looking back to the second quarter of 2022, because of the resurgence of COVID-19, many cities in China experienced strict controls or even lockdowns, including Shanghai and Beijing, where our main operations are located. In the meanwhile, the unpredictable microenvironment has continued to drive conservatism on advertising spending and promotional activities. As constantly highlighted in our previous annuals, we have executed our strategy to move away from lower margin and higher risk marketing solution business. As a result, iClicks total revenue for the second quarter 2022 declined by 51% year-over-year, amounting to US dollar $38.1 million, and revenue from marketing solutions decreased by 62% to $24.3 million year-over-year. Strategically winding down our marketing solutions business has allowed us to redirect the resources to our enterprise solutions business. As we remain optimistic about the enormous market potential of the digital transformation in China, we continue to invest in this segment. Our enterprise solutions delivered 3% year-over-year growth to 13.8 million in the second quarter, regardless of the negative impact of strict COVID-19 control measures. Now we are entering the second half of the year when the pandemic is relatively under control. but with occasional thirst. We see a mild trend of business recovery, yet it highly depends on future pandemic development and control measures. Here, I would like to introduce our new product, Aroha, an app that integrates AI, AR, and avatar for live streaming on the metaverse platforms. as we have kept on upgrading our subclass X product metrics. In the quarter, we have also engaged a global home care brand, iZero. Through our marketing automation product, iPale, we helped iZero develop automated solutions to shorten its advertising transaction cycle while driving traffic and the conversion to reach a broader target audience. In addition to our product upgrades, we were honored to receive a couple of rewards. For example, Digital Marketing Influencer Technology Company of the Year and Best Digital Marketing Tool of the Year by Golden Mouse. And our case study also won gold. in private domain marketing and was awarded Classic Case of Socialized Marketing by Phoenix Tree. Together, these awards highlight our capability as well as strong industry recognition for our solutions. We believe our value proposition on top-tier run clients remains intact. in the long term. Furthermore, we expect better performance once the overall market sentiment and the client operations recover. Our healthy financial position and cash flow should allow us to further invest in our enterprise solution business. This concludes my opening remarks. Now, I would like to turn the call over to our CFO to discuss our second quarter financial results. David, please proceed.