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Operator
Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile First Quarter of 2021 Earnings Conference Call. At this time, all participants are in written-only mode, and after the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Mr. Rene Van Der Veen. Thank you. Please go ahead, sir.
Rene Van Der Veen
Thank you, Annie. Hello, everyone, and thank you for joining us today. All of our earnings release was distributed earlier and is available on the IR website at ir.jiguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer, Mr. Fei Chen, President, and Mr. Shanleng Bong, Chief Financial Officer. Following their prepared remarks, all three will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains overlooking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties and other factors are included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. With that, I would now like to turn the conference over to Mr. Luo. Please go ahead.
Annie
Thanks, Operator. Good morning and good evening to everyone on the call. Welcome to Aurora Mobile's first quarter 2021 earnings call. This is the first quarter where our financial results reflect only our SaaS business as we fully accepted our legacy target marketing business at the end of 2020. We have entered a new chapter and are very excited about our future business prospects. Before I comment on our Q&A results, I would like to take this opportunity to remind everyone that the quarterly earnings deck is available on our IR website for your reference. You may refer to the deck as we proceed with the call today. Let's begin our review with a highlight of our key operating and financial performance for the first quarter of 2021. As we complete the SCD, target marketing at the end of 2020. Our business is now focused on SaaS business, which includes developer services and vertical applications. For Apple to Apple comparison, numbers present here exclude a contribution from the legacy target marketing in the prior year and pre-quarter. In the first quarter, We continue to put our company-wide focus and concerted effort to grow our SaaS business and deliver impressive results. The number of paying customers increased to 2,500 from 2049, a year ago, up 23% year-over-year. Revenue was going to be 76.6 million, up 56% year-over-year. Group growth margin reached a historical high of 75.9%, more than 2.3 times from a year ago. Growth profit was revenue B, 58.1 million, up 60% year-over-year, growing faster than revenue. And adjusted EBITDA was negative revenue B, 18.4 million, a substantial improvement of 49% for a year ago, demonstrating strong operating leverage. The strong SaaS business revenue growth was mainly due to strong growth of 67% in developer services and 36% in vertical applications. The historical high growth margin is strong evidence of how the transition to a pure SaaS business model has been positively impacting our results. As this model typically retains higher gross margins due to our competitive advantage in notification distribution network and the high efficiency of JG Alliance delivering services using minimum working capital. The strong startup business growth was driven by both the revenue growth of 56% year-over-year mentioned earlier and the margin expansion from 73.9% to 75.9% year-over-year. Here, I would also like to take a moment to give an update on our latest products, ZG-UMS and ZG-VAS. For ZG-UMS, we stand for Unification Messaging System. We started to commercialize this product post-Chinese New Year in March 2021. Since then, We have signed contracts for total value existing RMB 1 million, with an output of more than RMB 100K. These customers cover a wide range of industry verticals, including social, e-commerce, education, lifestyle services, medical, industry, etc. We are seeing a strong pipeline being developed and scaled, and we believe this product has addressed the critical needs of many corporate customers. who want to manage their customer engagement more cost-effectively. For JGU VARs product, which stands for Video as a Surface, we have signed more than 10 customer contracts since its official rule outpours the Chinese New Year, with output of more than 100K2. The continuous sales momentum and traction demonstrate the demand from the mobile app developers who have successfully applied our VARs to their applications. helping improve user experience, increase user engagement time, and enhance monetization capability. On average, user engagement time for applications with vast products has increased by 50%. We will continue to provide updates on these products in the coming quarters. We continue to put great emphasis on product development and innovations by hiring more and upgrading our infrastructure. Our R&D team achieved significant improvements on our diversified product offering and expanded functionality to exceed our customers' expectations. In particular, after continuous iteration of jPush SDK, mobile app developers are now able to access the mobile phone manufacturer message channel, which will significantly improve the push message success rate. This further summons our leading position to all mobile ad developers seeking more engaging and effective ways of marketing to their users. In addition, our newly updated JG-UMS version 2.0 officially launched recently. With the rapid adoption of 5G technology, we are free to announce that our JG-UMS version 2.0 can fully support 5G messaging channels. for party messaging service platforms, which are subscription messaging. And we are able to conduct custom message analysis for app developers to get a better picture of user behavior. Mobile app developers can also adjust their message strategy in real time, which reduce the disruption to end users in a highly effective way, allowing more flexibility to meet marketing needs and reach. Now I will turn the call to Fei, who will discuss the Q1 performance in greater detail.
Surface
Thank you, Chris. Let me start the discussion on different revenue streams within the SaaS businesses. Following its stellar performance throughout 2020, developer services continue to be the biggest revenue contributor in first quarter 2021. We recorded RMB 52.4 million in revenue for developer services which represented a very strong 67% growth on a year-over-year basis. The significant revenue growth was driven by strong 35% growth in subscription services and 189% growth in value-added services. Subscription services revenue was RMB 33.7 million, an increase of 35% year-over-year, primarily driven by the by new push notification customer acquisition and the cross-selling of non-push notification products in our product portfolio, which includes other subscription products such as jVerification, jSMS, jAnalytics, et cetera. Revenue contribution of non-push notification products increased to 35% from 23% in 1Q 2020. Non-push notification products have a higher R pool, resulting in the overall R pool for subscription services increasing by 21% to Renminbi 16.9,000 compared with Renminbi 13.9,000 in 1Q20. New and renewed contracts of notable customers include Starbucks, McDonald's, Yance, iHerb, China Eastern Airlines, and so on. Value-added services within developer services, which include revenues from JG Alliance services and the advertisement SaaS, recorded another very impressive quarter as revenues grew by 189% to RMB 18.8 million from RMB 6.5 million in 1Q20, despite Q1 being a seasonally slow quarter. This stellar year-over-year revenue growth is attributable to the growth in both the supply and the demand sides of the JG Alliance. On the supply side of JG Alliance, the total number of apps and the DAU within our network exceeded 280 apps compared to 200 in fourth quarter, and 150 million DAU compared to 130 million in fourth quarter, representing very strong 40 percent. and 15% growth from fourth quarter 2020, respectively. In this quarter, we continue to sign up many large and popular mobile apps from different industry verticals into our JG Alliance traffic supply pool. This continued increase in traffic pool is important as it provides a great number of usable DAUs, which in turn helps us to increase impressions and generate higher revenues. On the demand side, we see strong demand from mini program developers, which again contributed more than a third of JG Alliance's revenue. Since we launched JG Alliance in late 2019, it has proven to be an effective traffic acquisition medium for these mini program developers who continuously need to expand their user base. Our services for mini program developers are also beneficial to mini program platforms such as WeChat, because the platform encourages traffic originated from outside the WeChat ecosystem to enhance the traffic pool for its many programs inside WeChat. The other vertical where we see strong demand is Hero Apps, who use our services for dormant user retargeting purpose. Major customers of JG Alliance in the quarter consisted of market leaders across many industry verticals. They include but are not limited to Weibo, Meituan, Jindong, Taobao, Du Xiaoman, Zhihu VIP Shop. JG Alliance is a highly complex business model which requires many moving parts that need to work cohesively and seamlessly in order to make it fully integrated, such as technical product innovation, traffic acquisition and operation, advertisers acquisition and operation, data and AI algorithm development and the smooth operation of the ad ecosystem and the platform, just to name a few. We believe the relationships and the trust that we have built with our developers over the past 10 years have enabled us to sustain a steady flow of traffic and accumulate invaluable big data insights. As we continue to get steady traffic and use machine learning for data analysis, This will reinforce the magnitude of our AI technology and the capabilities on performance ads, which in turn continue to bring higher ROI for advertisers and higher return to our traffic suppliers. The total addressable market of JG Alliance is massive and projected to be over RMB 10 billion based on third-party research, and we are just at the very beginning of the growth curve. Now let's move on to the discussion of vertical applications. Collectively, the revenues from vertical applications, including market intelligence, financial risk management, and iZone, year-over-year vertical application revenue continue to grow by 36% as demands continue to recover from pandemic. Particularly, financial risk management business has outperformed where revenue grew by 56%. All these businesses recorded a solid year-over-year revenue growth. Revenues from our market intelligence product increased by double digits year-over-year. We continue to see strong growth from corporates with more than 60% of revenue contributed by corporate clients. New and renewed corporate customers include Taobao, Wuba, iQiyi, et cetera. In the financial risk management segment, Revenue increased significantly by 56% year-over-year. We believe the demand for this business has fully recovered from the impact of COVID-19. Solid and continued demand from banks and licensing institutions has pushed ARPU up by 64% year-over-year. New and renewed customers include Baidu and 360 Finance. The strong performance is also the result of our strategy shift. to focus on KA customers who typically have massive demand and a big budget. As long as we offer solid products that perform well, brand stickiness will be retained among KA customers. And lastly, our iZone business is still in the midst of product transition. Based on market demand and our product strength, we are focusing our product development efforts on city planning, real estate, and marketing related demand. Nevertheless, we recorded a solid 38% year-over-year revenue growth in the quarter, driven by demand from real estate and city planning customers. With that, I will now pass the call to Shannon.
Chris
Thanks, Fei. I'll go through some of the key expenses and balance sheet items. On to the operating expenses. Total operating expenses increased by 9% year-over-year to $101.5 million. In particular, R&D expenses increased by 25% to remedy $51.9 million, mainly due to the increase in staff costs, higher bandwidth, and cloud expenses to support our SaaS business expansion. Selling and marketing expenses increased by 7% to remedy $36.9 million, mainly due to increased customer visits after the traffic restriction was lifted at the start of 2021. and other offline marketing expenses incurred. G&A expenses decreased by 14% to RM32.8 million, mainly due to year-over-year reduction of RM6.8 million in bad debt provision. The decrease in BEDAP provision was partly due to the reversal of BEDAP provision as we continued to receive funds from long-outstanding debts through legal proceedings. This was also partly offset by the increase in professional fees incurred. Adjusted EBITDA, calculated as EBITDA excluding share-based compensation. improved 39% year-over-year to negative $18.4 million from negative $30.3 million in Q1 2020. In summary, for the year-over-year comparison, the key takeaways in this quarter include our SaaS businesses revenue increased significantly by 56%, Group gross margin improved from 33% to 76% as a direct result of Q1 2021 gross margin being 100% contributed by high margin such distances. OPEX, however, only increased by 9%. As a result, our adjusted EBITDA has improved by 39%. The scalability of our business model has become clear. And we are very proud of and very pleased with the result of This has clearly demonstrated that our decision to invest in the SaaS businesses was the right strategy. We believe that the SaaS businesses will continue their growth momentum and bring solid results moving forward. On to the balance sheet, with our continued effort to closely monitor our outstanding accounts The AR turnover days decreased significantly from 86 days in Q1 2020 to 48 days this quarter. This was due to both the shift away from the legacy targeted marketing business to focus on SaaS business and the company's continued efforts to shorten the AR collection cycle. And for the fourth consecutive quarter, the deferred revenue balance, which represents cash collected in advance from customers, has exceeded RM100 million at quarter end. As of March 31, 2021, the balance was at RM110 million. The shift to SaaS businesses where most customers are required to prepay has markedly improved our cash flow compared with the prior quarters where we had legacy targeted marketing business. So the assets were maybe $724 million as of March 31st, 2021. This includes cash and cash equivalents of $400 million, accounts receivable of $36 million, prepayments of $9 million, fixed assets $67 million, and long-term investment of $169 million. Total current liabilities were at $430 million as of March 31, 2021. This includes accounts payable of $16 million, deferred revenue of $110 million, accrued liabilities of $81 million, and convertible notes of $229 million, which were fully redeemed in April 2021. On to business outlook, the company confirms that the previously provided guidance for the financial year ended December 31, 2021, for the total revenues of $380 million to $400 million, representing year-over-year growth of approximately 47% to 55%. And gross margin to be above 70% for the full year remained unchanged. Please note that for meaningful comparison purposes, the prior year revenue numbers used to calculate the revenue growth The percentage excludes revenue from targeted marketing business. The growth outlook is based on the current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and the customer demands, which are all subject to change. And lastly, before I conclude, I'll give a quick update on the share repurchase plan. In the quarter ended March 21, 2021, we did not repurchase any shares. As of March 31, 2021, cumulatively, we have repurchased a total of 921,000 ES since the start of our repurchase program. And this concludes the management prepared remarks. We are happy to take questions now. Operator, please proceed.
Operator
Thank you. As a reminder, to ask a question, you need to press star and the number one on your telephone. To withdraw your question, please press the pound or hash key. And please sign by or re-compile the Q&A roster. Once again, it is star one for your question. Our first question comes from the line of Bo Pei of Oppenheimer. The line is open. Please go ahead.
Bo Pei
Hi, Benjamin. Good evening. Thanks for taking my questions and congrats on the solid results. So I have three questions here. So first is a quick one. In the previous quarters last year, we talked about operating cash flow. I know our accounts receivable, deferred revenues, et cetera, has been improved quite a lot. So can you talk about the operating cash flow for OneCube? And then the second question is about JG UMS and our video as a service products. So you mentioned we are having a strong pipelines for both products. So can you talk about how many companies are we in talks with and then conversion, like, et cetera, and then also like the R pool compared with our, Jay Pooch and other developer services. And then the third question is about JG Alliance. So you mentioned we are seeing strong demand and supply side. So I know the business is growing very nicely or close to 200%. But if you have to pick one, which side is the bottleneck for this business right now? Would you say you need to work harder on the demand side or the supply side? That's all my questions. Thank you.
Chris
Oh, thanks for the question. I'll take the first question in terms of the operating cash flow for Q1 2021. For Q1, we did have a net negative cash flow from operating activities, and that was because of the following reasons. One is the collection from customer was relatively slower, in Q1 due to the Chinese New Year as the majority of our customers are away for the long extended public holidays and this relates to cash collection in the first quarter. And secondly, the majority of our companies in China, including us, pay the annual bonus to employees in Q1. So the combination of these two factors resulted in a negative cash position in Q1 of 2021. If you look back to what we did in Q1 2020, the trend was similar due to the exact same factors because of the slower cash collection in China and the cash bonus that we paid to employees in Q1.
Surface
Okay. Hi, Bo. Let me answer the second question regarding JGUMS and the VAT, the pipeline situation, right? Yeah, so actually, you know, in the prepared remarks, Chris mentioned the pipeline is pretty strong. And indeed, actually, you know, right after Chinese New Year, within a very short period of two months, actually, you know, in both products, we have signed over 10 paying customers sign a contract and deliver the service, and with the ARPU actually both exceeding 100,000 per year. The ARPU is meaningfully higher than J-PUSH products. The typical ARPU is about 60,000 per year. And looking at the pipeline numbers, what we are seeing is like over 200,000. meaningful, credible pipelines have been built up, and the sales team is following with each of the pipeline customers very diligently, and with the total contract value over $30 million. So that's what I want to comment on JG-UMS and the vast pipeline situation. And your third question, regarding the JG Alliance, So as you know, the business model goes you need to have the supply first, and then once you have the supply into the JG Alliance, the traffic pool, then you can work on it, and then on the demand side, you can let the demand side customers to consume the traffic. So which side is the bottleneck? I will not call it a bottleneck. I will just say which side is more important. It's like a chicken and egg, and you need to basically, in this situation, you need to have the chicken first. You need to have the supply first. So our BD unit actually is a very strong unit. As you know, this BD team is actually incubated from our traditional developer subscription service team. So they can leverage their existing relationship with those developer subscription customers and try to sell them this new type of service to help them to monetize on their own traffic. So this actually progress is going on very well. And as I mentioned, in the first quarter we already have a DAU of about $150 million, right? So looking at the second quarter from now to the end of the second quarter, we should have additional $30 million kind of like a DAU be on board before the end of June. So the pipeline looks very strong and we think everything is on track for us to continue to deliver the very good results in this business.
Bo Pei
Got it. That's well helpful. Thank you.
Operator
Thank you. Next question is from the line of Jacob Silverman of Alliance Global Partners.
Jacob Silverman
Hi, everyone. Thanks for taking my questions. Just to follow up on Bo's question about JG Alliance, how has the demand been looking for mini-programs in the second quarter and what verticals are you seeing the greatest adoption in?
Surface
Yeah, so the demand from mini-programs continue to be very strong. Again, it contributes close to 40% of the total JG Alliance revenue in the first quarter. So we typically see customers actually from the travel sector. Tongcheng Travel actually is one of our big customers. And also we see big demands from actually the finance sector, Baidu. Du Xiaoman is also a big finance customer in this segment. So overall, we see this mini program continue to be the revenue driver for this JG Alliance business, and the trend is continuing in the second quarter as well.
Jacob Silverman
Great. Are you seeing any cross-selling opportunities from your UMS offering? What's the interest level been for many programs if you have? And then just if you could give us a little more detail, sorry, on the video as a service. Is it live now? And if not, when is it going to be live?
Surface
Are you talking about the cross-selling of UMS with our traditional subscription products?
Jacob Silverman
Yeah, cross-selling between subscriptions and then in the JG Alliance if that's happening.
Surface
Yeah, so you are right actually. When we go to market from the very beginning, of course we will try to find our customers who are already our subscription customers, right? Because we have a massive base of subscription customers. This is our crown jewel, our core asset. So whenever we introduce a new product, whether it's JG Alliance or whether it's JG UMS or Vaas, we typically go to the existing customer to promote this new product. So from the contracts we have signed in the first quarter as well as in the two months into the second quarter, actually the majority of the signing customers are existing customers. So once we exhaust all of our existing resources then we may think about going into expanding the customer base into those customers who are not our existing customers. So currently you can consider basically a majority of the selling is from the cross-selling. And for the VAS actually it's already live and we have already delivered. deliver the products for those customers who have already signed the contracts. Because customers, they will not sign if they don't have the opportunity to test the product, right? They have to feel comfortable before they sign the contracts with us. So that's a must. Products need to be ready before we sign any contracts.
Jacob Silverman
So just to clarify, video as a service, it's live for some customers, and are you generating revenue from it yet?
Surface
Yes, yes, we are generating revenue. Actually, we already generated revenue over $1 million. Actually, I will not say revenue, revenue, because that's a recognition, right, accounting basis measurement. Actually, the contract value over $1 million, we already signed such contracts for the VAS customers.
Jacob Silverman
Okay, so... I'm sorry, so I guess I misunderstood. So from UMS, have you shared the contract value so far? I know you said about $30 million in the pipeline. So have you recognized any revenue? Are you going to recognize any revenue in the second quarter from UMS?
Surface
Yeah, actually in the first quarter we already signed the contract and recognized a small number of the revenue for the UMS as well. And I think the contract value is similar to VAS, it's over one million.
Jacob Silverman
Okay, thank you. And one final question from me and then I'll hop back in the queue if I have any more. Apple's IDFA policy on the new iOS update, has it had an impact on your ability to reach mobile consumers? I would imagine it's little to no impact as Apple has minimal market share in China, and I'm assuming you're getting first-party data, but has this been any issue at all?
Surface
No. For us, actually, in China, Apple's market share is pretty small. It's only 20%, right? Because all market presence mimic the market share, the device manufacturer's market share, right? So majority of our SDK are in the Android device, around 80% of the total market, right? So this new privacy policy, from the market perspective, basically the impact to it is very minimal. And the second, actually most of our business does not really, really actually rely on the iOS data. iOS data compared to Android data, Basically, iOS, as you know, is a closed system. So actually, whether it's an app developer or SDK provider, service provider, actually the access to the iOS data is very minimal to begin with. So in our business, whether it's JG Alliance, whether it's the subscription business, actually the revenue generation does not really depend upon the iOS ecosystem and also iOS data. So basically the policy change actually will not impact us much. I would say very immaterial. So maybe this data, this policy will impact The big companies, right, whose main business, their main business is in advertisement business, and also, you know, they have many iOS customers. That could have some kind of impact. But for us, it's immaterial. We are not worried about this at all.
Jacob Silverman
Thanks so much, everybody.
Operator
Thank you. Once again, for those who wish to ask a question, please press star and the number one. A great training to be announced. To answer the request, it is to pound the hash key. Next question is from the line of Ryan Roberts of Mavis Capital. Please go ahead, Ryan.
Ryan Roberts
Good evening, guys. Thanks for letting me hop in the question queue here. A couple of quick ones from me. First, what's the current ad load on JG Alliance? Kind of, I think... Before we discuss kind of starting slowly and then racking that up as we kind of are here at the middle of the year What's what's what's and how's that been tracking and what's the outlook for the rest of the year?
Annie
And let me take this question I take this question so currently the ad lot of our JGR line is quite Currently it's quite small. It's less than one actually so which means for each DAU we will have less than one impression advertisement per day. So we have a new product that will be launched later this month, so we can improve the AD load per DAU significantly. So, we expect the number can be between two to three per DAU after we launch this product. So, you can imagine the supply side can be improved a lot after we launch the new upgraded JGR Alliance product.
Surface
Yeah, so let me add on to Chris' comments. So basically, our current product, the in-app product, does not really support multiple ad loads per DAU. But once we launch this new product, we will be able to basically have more than one. Ideally, it should be two to three ad loads per DAU. Basically, we can basically show the ads based on the user's behavior, right? because instead of blindly showing to the user, once the user opens up the app after a few seconds, we show off the app, we can basically monitor the user's in-app behavior, such as if they go to their user center, maybe that's a good opportunity to show an ad. Or if they go to other pages, we can show an ad to make sure the user experience is mostly optimized. So we have already talked to basically the traffic supplier, the apps. Actually, they very much welcome this kind of mechanism. So that's why actually made us to make the decision to upgrade our current product to enable this functionality.
Ryan Roberts
That's it. Okay. And in terms of like overall pricing, I think, again, like the strategy was to start low with a pretty low ECPM type number and then kind of bring it up over time. I just want to check that's still on track and kind of what you're looking for that to kind of go out to kind of as you look at the second half of the year.
Annie
Currently our price is low ECPM, but we have slightly improved our ECPM, which we pay the traffic, as long as our monetization capability is improved. So currently our price is basically 2 plus X price, which means Basically, we pay eCPM2 to the traffic supplier, and we plus X, which X means if the traffic is – because the traffic, the quality is different, right? So, if the traffic is very good, we're going to have more bonus to this traffic. So, I wish that X also give us a – the capability to differentiate different traffic source. So, currently, this 2 plus X pricing is very competitive in this market.
Ryan Roberts
Okay, okay, okay, thank you. That's very helpful. And kind of sticking on the, you know, just with JG Alliance just for a second, this is kind of my last one, I just want to get a sense of on the demand side, one of the things that seemed like in your targeted marketing business historically, you had kind of some pretty established verticals that you were in, and gaming was one of the ones that you were not terribly strong in. I think you guys were very strong in financials. As you were pushing out JG Alliance, I know you were trying to kind of tap maybe some of the similar customers and kind of use some of the similar relationships and so on and so forth and build a business. Is there any kind of bias or are there any trends coming out in who the buyers are for traffic? Or alternatively, is there some other kind of characteristics you can share?
Surface
Yeah, so currently, actually, you know, we break down the JG Alliance customers by by different categories. If you want to look at the breakdown by industry, actually the main industry currently that consumes our JG Alliance traffic comes from hero apps, such as I mentioned in my prepared remarks, like Taobao, like Weibo. These customers, they use our JG Alliance, the product. actually to reactivate their dormant customers. So this is a big step. And the second is basically the e-commerce. E-commerce like Taobao, JD, these big e-commerce platforms, they continuously use DigiAlliance for new user acquisition or dormant user reactivation. And a third big category is actually the finance, including the insurance, including the online lending. This is about like 20% of our total revenue. So currently, the big buckets, the big customer segments are actually these three segments. But over time, of course, we will try to penetrate into additional segments in additional industries such as, you know, the education, right, actually the lifestyle kind of like services. So we are working on that. We are working on that. So I think when time goes by, I think, you know, eventually we would be very similar. The custom mix would be similar to what you see from other other, you know, kind of like, you know, the traffic network. Okay. And, yeah.
Ryan Roberts
Okay. If I could maybe just tack on one last one. This is just kind of, I guess, encapsulating all the points you've just discussed. So, it sounds like UMS monetization is starting off very well. It sounds like video as a service monetization is starting off more than 10 contracts and so on and so forth, and that's tracking, sounds like it's tracking well. And JG Alliance, the second half, is shaping up nicely. With, you know, ECPM, sounds like they're going to guide up a little bit and add load increasing, doubling it sounds like. I'm curious what's in your guidance. It sounds like when you guys gave guidance maybe previously, some of these items may not have been in there. I'm just kind of curious if you could kind of help me frame out what's in your guide for the rest of the year.
Surface
Yeah, so actually the four-year guidance, actually in our earnings release we actually maintained our four-year guidance which is four-year revenue from $380 million to $400 million based on the current business traction and outlook. So I think if we, you know, do well in, you know, one of those things you just mentioned, right, ad load, you know, the traction in JG, JG UMS, and, you know, more traffic acquisition for JG Alliance, I think if we do better than we currently anticipate, of course we have, you know, we will have a good chance to be the guidance, right? But for now, I think we just want to maintain the guidance for the time being.
Ryan Roberts
Got it. Thanks, Shei. Weidong, thanks a lot.
Operator
Thank you. Once again, for those who wish to ask questions, please press star and then number one and raise your hand. for your questions, please press star one on your telephone. As there are no further questions, I'd now like to hand the conference back to Mr. Rene Van Der Steen for closing remarks. Please go ahead.
Rene Van Der Veen
Thank you, Annie. Thank you, everyone, for joining our call tonight. If you have any questions or comments, please don't hesitate to reach out to the IAR team. This concludes the call. Have a good night. Thank you all.
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