Aurora Mobile Limited

Ladies and gentlemen, thank you for standing by and welcome to the Aurora Mobile First Quarter 2025 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 will need to press star 1, 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1, 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, René Van Gestein. Thank you. Please go ahead, sir.

Thank you, Heidi. 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-Dong Luo, Chairman and Chief Executive Officer, Mr. Shan-Len Bong, Chief Financial Officer, and Mr. Guan Yan Chen, General Manager. Following the 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 and Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Mitigation 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 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.

Thanks, René. Greetings to all. Welcome to Arona Mobile's 2025 First Quarter Earnings Call. Before I comment on our Q1 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. As we did in the past, based on the Q1 numbers, I have a suitable description for the first quarter results, which is a quarter of accessory growth driven by globalization for the following reasons. Firstly, our engagement basis had a master quarter where we closed out more than $63 million worth of contract value in just one quarter. unprecedented in our history. This brings the total cumulative engagement of contract value in excess of revenue 110 million by March 31st, 2035. Secondly, the group's revenue this quarter of revenue 89 million, achieving a remarkable 48% growth year-over-year. This remaining $89 million was the highest Q1 quarterly revenue we had since transition to pure SaaS. Engaged Labs recognized revenue also grew by 127% year-over-year. This Q1 revenue number here is what we have previously guided in Q4 of 2024. Further, our financial risk management business had its best quarter in its history. recording highest quarter revenue of revenue 22.2 million. Revenue grew by 64% year-over-year. Firstly, gross profit grew strongly by 27% year-over-year, while achieving the highest gross profit for the past nine quarters. Gross margin has also improved 530 basis point quarter-of-quarter. First, we record another adjusted EBITDA profit in this quarter. This marks the seventh consecutive quarterly perceived adjusted EBITDA we have had. Overall, it was a great quarter where all the business lines have outperformed the targets we have set for them. This has no doubt set a great momentum for the rest of 2025. The progress in our performance and our solid financial position enable us to invest more resources into the development of our enterprise AI agent platform and its global expansion. Now, let me share more on the individual business performance. Our total Q1 good revenue has grown 38% year-over-year driven by the great numbers from developer services within the group revenue or business segments. Many developer subscription services, value-add services, and financial risk management all outperform and record significant year-over-year revenue growth. Developer services revenues, which consist of subscription services and value-add services, increased by a strong 39% year-over-year and decreased 12% quarter-of-quarter. Subscription revenue has been record in great number where it increased by 26% year-over-year and decreased 2% quarter-of-quarter. Better Agile Services revenue grew by an incredible 269% year-over-year and decreased 46% quarter-of-quarter. Our core business, Subscription Services revenue of revenue be 53.5 million, record growth of 26% year-over-year and decreased 2% quarter-of-quarter. The year-over-year revenue growth was mainly driven by a 22% increase in ARPU, carrying on the great momentum we get in Q4 of 2024. Our subscription revenue record for consecutive quarter of revenue be 15 million plus revenue. For subscription services, we get record year-over-year revenue growth in both the domestic and overseas markets. In particular, our engagement revenue grew by 127% year-over-year. This remarkable number was a result of the hard work by the team to convert many notable wins in the overseas markets. Both the customer numbers and output have solid growth year-over-year. With the great products and services we have, I believe we can scale this business globally to get more customers and new wins in many quarters to come. Next, I shall elaborate more on our engagement business this quarter. This business always gets me very pumped up when sharing with you. Firstly, the total contract value we have signed has broken maybe 110 million milestone in Q1 of 2025. Just to recap, the total contract value was only maybe 10 million at Q3 of 2023, six quarters later. This amount has grown 10 times. This is a remarkable achievement by the team. Secondly, customer acquisition continues to be the driving force of the success of this species. The customer number has increased by 25%, reaching 848. The revenue recognized for the Engagelab again record great growth of 127% year-over-year. Firstly, our Engagelab products and services are now sold to customers in more than 40 different countries and regions globally. I'm truly pleased with the team's execution effort, results, and the momentum of Engagelab. I believe that it's the engine of growth for us in the next 24 months. Within subscription revenue, some of the notable new and renewable customers in this quarter include, but not limited to, DeepSeq, BYD, SF Express, Moonshot AI, and Hangzhou Bank, just to name a few. Value added services revenue will remain 8.9 million, increased by 269% year-over-year, but decreased by The huge revenue year-over-year growth we have seen was mainly due to the recovery of the advertised spending we have seen in Q1. For the same period, the advertised spending has increased more than 200%, which filled the revenue spike year-over-year. The sequential revenue decline was mainly due to the Double 11, a Double 12 online shopping festival in Q4, but was not in Q1. Let me pass the call over to Shannon, who will share more about the vertical application and other aspects of our financial performance of this quarter.