Aurora Mobile Limited

Standing by and welcome to Aurora Mobile fourth quarter and fiscal year 2024 earnings conference call. At this time, all participants are in the listen-only mode. 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your host today, René Wegenstein. Thank you. Please go ahead, sir.

Thank you, Amber. Thank you. 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.cm. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer, Mr. Shanlen Bong, Chief Financial Officer, and Mr. Guan Yang 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, is amended and is defined in the US Private Securities Litigation Reform Act of 1995. The 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'd like to turn the conference over to Mr. Luo. Please go ahead.

Thanks, Renee. Greetings to all. Welcome to AromaBoards' 2024 Fourth Quarter Earnings Call. Before I comment on our Q4 results, I would like to remind everyone that the quarterly earnings set is available on our IR website. You may refer to that as we proceed with the call today. As we did in the past, based on the Q4 numbers, The appropriate description I would describe for the fourth quarter result is an incredible cure for to close out a perfect 2024 for the following reasons. Firstly, we record a full year adjusted EBITDA perspective for 2024 calendar year. This is our very first full year profitability since the inception of our mobile 14 years ago. In this quarter, We recorded the sixth consecutive quarterly positive adjust EBITDA. Secondly, the group's revenue this quarter of remaining $93.2 million, achieving a remarkable 20% growth year-over-year. This was attributable to solid growth in all business lines within the group. Thirdly, our overseas business engaged lab continued its great growth momentum, recorded a whopping 20% revenue growth on year-over-year basis, and newly signed contract value grew by RMB 10 million in Q4 alone. Fourthly, we recorded net operating cash inflow of RMB 19.5 million, yet another highest quarterly number in the past 17 quarters, bringing the cash balance close to RMB 120 million as of 12-31-2024. Now let's move to the individual business performance. Our total Q4 good revenue has grown 20% year-over-year, fueled by the very strong numbers from developer services. Within the good revenue, all revenues, namely developer subscription services, value-added services, and financial risk management, all record their year-over-year and quarter-over-quarter revenue growth. Developer services revenue, which consists of subscription services and value-added services, increased by a strong 28%, year-over-year and 24% quarter-of-quarter. Subscription revenue has been recorded in great numbers where it increased by 12% year-over-year and 6% quarter-of-quarter. Value-added services revenue grew by 142% year-over-year and 180% quarter-of-quarter. Our core businesses, subscription services revenue of revenue be 54.7 million, recorded growth of 12% year-over-year and 6% quarter-of-quarter. The year-over-year and quarter-for-quarter revenue growth was mainly driven by increase in both output and customer number. Carrying on the great momentum we had in Q3, our subscription revenue broke the history record again well. In this quarter, we have the highest quarterly revenue yet at maybe 54.7 million. For subscription services, we have record yield Over-year revenue growth in both the domestic and overseas markets. In particular, our Engagelab revenue grew close to 200% year-over-year. This was driven by the new customer acquisition in the overseas market. Since we venture overseas, we get one services contract from both Chinese companies venturing overseas and overseas companies domestically in their respective countries. Exemplary three of product and services, we are getting more new customers every quarter. However, this is just a tip of iceberg. The total addressable market for overseas is huge. We will direct more resources in terms of human capital and infrastructure to capture more overseas market share. Based on the historical track record we have had, I am convinced our engagement business will have a very strong and long streak of growth in the future. Next, I shall elaborate more on our EngageLab business this quarter. Firstly, the growth of EngageLab business has been important and instrumental for us to achieve great quarterly revenue numbers. Secondly, customer momentum has been impressive from day one. We converted more overseas customers in this quarter. The contracted customer number has reached 678 representing an impressive 32% secretion growth. Further, the cumulative Sun contract value of EngageLab has, in two consecutive quarters, grown by close to remaining 10 million quarter of quarter. As of December 31, 2024, the total Sun contract value was remaining 48 million. Fourthly, we continue to expand our footprint globally. By December 2024, our EngageLab products and services are now sold to customers in more than 37 different countries and regions globally. Within subscription revenue, some of the notable new and renewable customers in this quarter include, but not limited to, China Telecom, Ping An, and China Merchant Security, just to name a few. Value-added services revenue will remain be 16.3 million, increased by 180% or quarter-of-quarter and increased by 142% year-over-year. The sequential revenue spike was mainly due to the double 11 and double 12 online shopping fixed over in Q4, but was non-existent in Q3. This revenue growth trend in Q4 was within our expectations, but the magnitude of our growth was much better than what we had anticipated. A job well executed by our team to secure more ad spending from advertisers in the last year of 2024. Next, let me share with you my thoughts on how the recent advancement in AI will shape the landscape. The development of AI technology and overseas expansion has been AeroMobile's core strategy over the past two years. have already led to strong revenue growth at Engagelab and even accelerated the overall revenue growth of our entire group. We believe this momentum will continue and set the stage for new growth trajectory. In the past, we can primarily provide the updates on our overseas expansion. Now, we would like to reiterate our AI strategy to the market. Aurora Mobile remains committed to our AI-first strategy and views AI as the most critical business driver for the future. We are now not only deeply integrating AI into the workflows of various departments, but also using it as a KPI in the BSC assessments for both the company and each employee. This ensures that technology implementation is closely aligned with the performance results. Our core products are fully integrated with advanced AI capabilities. that enable various applications such as email editing, push notification copywriting, and data analytics. This AI-driven enhancement enables our customers to drive business innovations and improve operational efficiency. Over the past two years, we have continuously invested in the development of GPT-PoS.AI, an enterprise-level AI agent platform. By seamless embedding native AI agent technology into workflows, we are helping companies accelerating their transformation to an AI-first strategy. Over the past few quarters, we have seen rapid growth in subscription revenue for GPT-PoS.AI. The new era of industry revolution is just beginning. The enterprise application of AI is still in its earliest stage. and we remain committed to increasing our investment in enterprise AI. We believe that our master enterprise customer base, diverse business scenarios, and rich data resources will be invaluable assets in this AI era. Let me pass the call over to Shannon, who will share more about the virtual application and other aspects of our financial performance for this quarter.