Aurora Mobile Limited

Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Third Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Instructions will be given at that time. Please be advised that today's conference is being recorded. I would like to hand the conference over to your host today, Christian Arnell. Thank you. Please go ahead, sir.

Thank you, Michelle. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the 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 meeting of Section 21E of the Security 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 factors are included in the company's filings with the U.S. SEC. 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 over to Mr. Law. Please go ahead.

Thanks, Kristen. Greetings to all. Welcome to Aurora Mobile's 2024 first quarter earnings call. Before I comment on our Q3 results, I would like to remind everyone that the quarterly earnings data is available on our website. You may refer to the data as we proceed with the call today. As we did in the past, based on the Q3 numbers, the appropriate description I will use for the first quarter results is record-breaking for the following reasons. Firstly, we are writing our own history. We are on the road. In this quarter, we record the fifth consecutive quarterly Prestige Adjusted EBITDA. Secondly, developer subscription revenue record both 7% growth quarter-of-quarter and 11% growth year-over-year. More importantly, the quarterly revenue has exceeded maybe $15 million for the first time in history. yet another record-breaking event in this quarter. Further, our EngageLab business continues to shine in terms of customer numbers and cumulative signed contract value, with a good 32% and 23% quarter-to-quarter respectively. Firstly, we record net operating cash inflow of Renminbi to $12.3 million, being the highest level in the past 16 quarters, bringing the cash balance about Renminbi as of 9-30-2024. These are the snapshots of the great numbers we have achieved in this quarter. Now, let me expand further. Our total group revenue has grown 7% year-over-year, fueled by the strong numbers from developer services. Within the group revenue, developer subscription services and financial risk management record 11% and 29% year-over-year revenue growth, respectively. Developer services revenue, which consists of subscription services and value-add services, increased by 12% year-over-year and 2% quarter-of-quarter. Subscription revenue has been recorded in great numbers where it increased by 11% year-over-year and 7% quarter-of-quarter. Value-add services revenue grew by 20% year-over-year but decreased 30% quarter-of-quarter. Our core basis subscription services revenue of revenue being 51.7 million grew strongly by 11% year-over-year and 7% quarter-of-quarter. The year-over-year and quarter-of-quarter revenue growth was mainly driven by increase in ARPU. As I mentioned earlier, we brought our own quarterly revenue record in this quarter where we had for the first time in history. Subscription revenue is 50 million in a single quarter This is a remarkable achievement. I would like to take a moment to thank all our customers in trusting our products and services, and our G1 teams for working hard and delivering great service to our customers. Another major contributor of this impressive revenue growth was the solid performance of our EngageLab business. The EngageLab business has contributed strong revenue growth in this quarter. On a year-over-year basis, the recognized revenue for Engagelab has grown close to 100%. I shall share more on Engagelab's business shortly. Within subscription revenue, some of the notable new and renewable customers in this quarter include, but not limited to, the world's largest EV company for their Chinese operations, BYD and Shunfeng Express, Kimmy Chia, Mengshuang, and Guangda Credit Card, just to name a few. Value-added services revenue will remain be 5.8 million, decreased by 30% quarter-of-quarter but increased by 20% year-over-year. The sequential decrease was due to the Liu Yaba online shopping festival in Q2 but was non-existent in Q3. This revenue trend in Q3 was within our expectations. Next is the most exciting part of the business in terms of its growth and future perspective. Allow me to spend the next few minutes on our engagement business this quarter. Firstly, we continue to acquire more overseas customers in Q3, then the contracted customer numbers can reach 513, representing a 32% sequential growth. Secondly, the cumulative signed contract value of Engager has grown by maybe 6 million quarter of quarter as of September 30, 2024. The total signed contract values do add Approximately, there may be 48 million. We are truly pleased with this result. Further, we expand our global reach to additional countries in this quarter by September 30, 2024. Our engagement products and services will show to customers in more than 41 different countries and regions globally. In summary, since we expand the overseas, more than 513 customers from 41 countries has tested, convinced, and brought out multi-channel engagement services to help them improve their user engagement effort and to do it in a more cost-efficient manner. Meeting and existing the client's expectations is what we believe to be the key to our success globally. We will certainly not be sitting on our laurels. We will continue to work hard and harder. We have high hopes to achieve greater things overseas. Internally, we can properly follow and prepare the detailed execution plans and allocate our resources accordingly. And this is an ongoing process where we will make continuous adjustment and take as when necessary. Yes, the overseas expansion is not easy, but with the track record we have had for the past six quarters, I'm very hopeful yet committed to ensure we can and will continue to bring in great customers from around the world every quarter. As of today, apart from our Singapore office, we can set up our Kuala Lumpur office. In Kuala Lumpur, we now have local sales who have great local knowledge on the ground and can better serve the local markets and the neighboring countries and customers. As a matter of fact, I was in Kuala Lumpur last week for the For the short one-week business trip there, I was overwhelmed with the great responses from our potential customers in Kuala Lumpur. They were very impressed with the multi-channel engagement services we have and are committed to subscribe to our services. Our services are indeed very suited to the local market and customers' needs. Therefore, we are building a very strong sales pipeline in Malaysia and will allocate more resources to increase both the market penetration and market share there. With the success cases we have in both Singapore and Malaysia, we are going to replicate this conversion of new customers acquisition experience to other countries in Asia Pacific region. I believe there will be more great success story that I am able to share with you in the next earnings call. With that, I will now pass the call to Shannon, who will share more about the vertical applications and other aspects of our financial performance for this quarter.