Aurora Mobile Limited

Ladies and gentlemen, thank you for standing by and welcome to Aurora Mobile second quarter 2025 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 one one 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. And I'd like to hand the conference over to your host today, Christian Donnell. 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 the IR website at ir.jiguang.cn. On the call today are Mr. Wei-Dong Luo, Chairman and Chief Executive Officer of Mr. Shannon Bong, Chief Financial Officer, and Mr. Guangyan Chen, General Manager. Following their prepared remarks, they will all 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, or factors are included in the company's filings with 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. Luo. Please go ahead.

Thanks, Christine. Greetings to all. Welcome to Arora Mobile's 2025 Second Quarter Earnings Call. Before I comment on our Q2 results, I would like to remind everyone that the quarterly earnings step is available on our IR website. You may refer to that as we proceed with the call today. I was so excited about this call today and sharing this Q2 earnings release with you because this was just the best quarter we have ever had. At the end of this call, I believe all of you will be equally excited as I am now. Let's get started. As we did in the past, based on the Q2 numbers, I have a suitable description for the second quarter results, which is a new chapter in our mobile. For one very significant milestone we have achieved. We record the first ever quarterly net profit. This is get profit, by the way, in our history. This great milestone aside, we have record many other great operating resources in this quarter too. Let me elaborate more later in the call. Firstly, our global flagship product, Engagelab, continues to expand and scale globally with great year-over-year and quarter-of-quarter customer number and contract value growth. Secondly, the group's revenue this quarter of revenue be 89.9 million, achieving a remarkable year-over-year and sequential growth. This revenue be 89.9 million was the higher end of the guidance we have provided. Engaging Apps recognized revenue also grew strongly by 67% year-over-year and 24% quarter-of-quarter. Thirdly, our financial risk management basis has another great quarter. recording solid revenue growth of 27% year-over-year. Fourthly, gross profit grew strongly by 13% year-over-year while achieving the highest gross profit for the past 10 quarters. Gross margin has also improved quarter-over-quarter. In summary, I'm truly pleased with the great achievement we have had in this quarter. Achieving historical GetNet profit is not easy. We have spent considerable time, effort, and energy over the past two to three years to strategize the growth path. Looking back, it was a tough but truly enjoyable and fulfilling journey. During that period, we explored new markets, consolidated our services, created our global flagship product, Engagelab, for global market. Our AI agent platform, gptbots.ai, can still work too. providing our enterprise customers an easy-to-use AI agent platform for them to easily embrace the advancement and the great power of artificial intelligence. Over these periods, we saw significant increase in both customer numbers and business volume. This puts the business firmly on solid ground and on sustainable expansion path. Apart from ensuring top-line growth, We also seriously looked at all paths. We challenged and improved the operational efficiency of the entire organization. Hard decisions were made to streamline our services offering and certain departments. Certain services with less than ideal gross margins were abandoned or ditched. The group headcount was also reduced from the higher of more than 820 to around 400 now. As we work hard scaling up revenue, maintaining high gross margins, and with tight and lean cost structure, achieving the quarterly gap net profit is just a matter of when. Since everything fell into the right place in Q2, that's the very first around mobile gap net profit camp in this quarter. Now let me share more on the individual business performance. Our total Q2 good revenue has grown 13% year-over-year driven by the great performance from developer services. Within the good revenue, all business segments, many developer subscription services, value added services, and vertical applications, record solid, acceleration, and double-digit year-over-year revenue growth. Developer services revenue, which consists of subscription services and value added services, increased by a strong 14% growth year-over-year and 3% growth quarter-of-quarter. Subscription revenue can solidly revenue numbers well increased by 12% year-over-year and increased slightly quarter-of-quarter. Value-added services revenue grew by an impressive 30% year-over-year and increased 21% quarter-of-quarter. Our core basis, developer subscription services revenue of revenue be 53.7 million, record growth of 12% year-over-year and increased slightly quarter-of-quarter. The year-for-year revenue growth was mainly driven by increase in both customer number and ARPU. I believe this segment has stood firmly on its solid foundation, where the subscription revenue record falls consecutive quarter of revenue be 40 million plus revenue. For subscription services, we can record year-for-year revenue growth in both the domestic and overseas markets. Next, I shall elaborate more on our EngageLab basis this quarter. Our flagship product, EngageLab, continue to be the star performer for the group as far as revenue growth trajectory goes. Firstly, we had another strong quarter for EngageLab where the total contract value we have signed amount to remain be 11.2 million in Q2. The growth acceleration has been great for this business since day one. Secondly, global customers from all corners of the world continue to purchase our product and services. The customer number has increased by 25% sequentially, reaching to 1,058. This was driven by the continued progress we are making across our go-to-market growth. Further, the revenue recognized for the Engaged Lab, again, record very strong growth of 67% year-over-year and 24% quarter-over-quarter. Firstly, our Engaged Lab products and services are now sold to customers in more than 45 different countries and regions globally. customer from four new countries has been converted and signed up with us in Q2. I have mentioned this before, but I would like to reiterate that I truly believe that EngageNet is the engine of growth for AeroMobile in the next 24 months. The number it has delivered over the past eight quarters is the greatest testament of my belief. Next, within subscription revenue, some of the notable wins this quarter include anonymity to Pufa Credit Card, Tesla China, China City Bank International, just to name a few. Value-added services revenue will remain be 10.7 million, increased by 30% year-over-year and increased by 21% quarter-of-quarter. The significant revenue year-over-year growth we have seen was mainly due to the increased advertiser spending allocation to us and new customers acquired in Q2. In addition, the traditional Q2 online shopping festival also contributed to the revenue growth. Now, let me pass the call to Shannon, who will share more about the vertical application and other aspects of our financial performance for this quarter.