Aurora Mobile Limited

Ladies and gentlemen, thank you for standing by and welcome to the Aurora Mobile fourth quarter and fiscal year 2023 earnings conference call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you'll need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Christian Arnell. Thank you. Please go ahead, sir.

Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on its IR website at ir.jiguang.cn. On the call today are Mr. Wei Dongluo, Chairman and Chief Executive Officer, Mr. Shannon Bong, Chief Financial Officer, and Mr. Guangyan Chen General Manager. Following their prepared remarks, they 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 forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities 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 or factors are included in the company's filings with the USSEC. 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'd now like to turn the conference call over to Mr. Luo. Please go ahead.

Thanks, Christian. Good morning and good evening, everyone. Welcome to Aurora Mobile's 2033 first quarter earnings call. Before I comment on our Q4 results, I would like to remind everyone that the quarterly earnings debt is available on our IR website. You may refer to the debt as we proceed with the call today. Overall, if I were to give a comment for the performance of this quarter, the appropriate description for this quarter is growth, growth, and growth. The reasons are as follows. Firstly, we have record for the first time in history consecutive quarters of positive adjusted EBITDA. Secondly, our total revenue grew every single quarter in 2023. Thirdly, developed subscription revenue also record sequential revenue growth in all quarter of 2023. Fourthly, our gross profits also grew in every quarter of 2023. Last but not least, our overseas product, Engagelab, continued to expand globally and record great results this quarter. Next, let me share more lines on the business and revenues. For our total good revenue, we achieved positive growth of 5% quarter-of-quarter, driven mainly by the growth in developer services revenue. Now, let me go through our different revenue streams. Developer services revenue, which consists of subscription services and value-added services, decreased 12% year-over-year, but grew 8% quarter-over-quarter, mainly due to the weakness seen in the value-added services offset by the 5% growth in subscription services. Next is the detailed discussion of each business line. Subscription service revenue, which will be 48.8 million, are 5% both year-over-year and quarter-over-quarter. This was mainly driven by increase in ARPU both year-over-year and quarter-of-quarter. Within the year 2023, the subscription services revenue grew sequentially in all four quarters mainly due to the steady increase in ARPU throughout the year. In Q4 2023, our team has completed a handful of private deployment projects for many customers. I'm very encouraged by this trend and believe more good results will come. Some of the notable new and renewable customers in this quarter include, but not limited to, 360 Finance, China Telecom, China Pacific Insurance, Everbright Bank Credit Card Center, and SF Express, just to name a few. Value-added services revenue, 1.8 million, decreased 60% year-over-year, but increased by 38% quarter-off quarter. which was due to the annual single day and double 12 online shopping festival in Q4, where advertisers increased their spending and made more budget allocation to us. However, no such event in Q3. Next, I would like to share with you some exciting news and great achievements we can have in Q4 for our EngageLab business. Firstly, by the end of 2023, We have more than 170 customers sign up to purchase our Engagelab products. This was a tremendous 70% growth between the quarters. Secondly, the cumulative signed contract value of Engagelab has exceeded maybe 15 million, representing a great 50% growth between the quarters. Thirdly, our Engagelab customers are from 17 different countries around the world. As we share in our Q3 earnings script, we aim to grow this business every quarter, and we did it. We achieved great milestones between the quarters for engaged business. I'm very proud of the hard work that the team has put in over the past quarter in order to record such an impressive customer number and contract value growth. This is by no means any easy task considering the tough overseas market environment and the uncertainty clouding the air. We continue to see strong demands for our EngageLab products overseas. Our EngageLab product is a non-stop customer engagement platform, enable our customer to use any of all the following messaging channels, web push, email services, SMS service, and WhatsApp business API. Based on the feedback we received, the key major advantage of our EngageLab product is it allows our customer in different countries and regions to engage their own customers in an effective yet cost-efficient manner. We aim to ensure we stay ahead of the game by continuing to trade and fine-tune our products on a regular basis. More importantly, for us to meet and exceed our global customers' expectations. With that, I will now pass the call over to Xianglin. who will share more about the vertical applications and other aspects of our financial performance for this quarter.