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spk01: Good morning, ladies and gentlemen. Thank you for standing by, and welcome to the Joy, Inc.' 's second quarter 2022 earnings call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a question and answer session. I would now like to hand the conference over to your host, Jane Shear, the company's senior manager of investor relations. Please go ahead, Jane.
spk02: Thank you, operator. Hello, everyone. Welcome to JOY's second quarter 2022 earnings conference call. Joining us today are Mr. David Shelling Lee, Chairman and CEO of JOY, Ms. Ting Lee, our COO, and Mr. Alex Liu, the General Manager of Finance. For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session. The financial results and webcasts of this conference call are available at ir.joy.com. A replay of this call will also be available on our website in a few hours. Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form 20F and other documents filed with the FCC. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in U.S. dollar. I will now turn the call over to our Chairman and CEO, Mr. David Schillingly. Please go ahead, sir.
spk05: Thank you. Hello everyone, welcome to our second quarter 2022 earnings call. Let me start with an overview of our quarterly results. Despite the global macroeconomic uncertainties and the seasonality impact of Ramadan holiday in the Middle East, we achieved 98.1 million in revenues, including 502.6 million of revenue from Beagle, approaching the higher end of our previous guidance. we grow our non-GAAP net profit to $51.5 million at the group level, realizing our non-GAAP net margin of 8.6%. Notably, the Beagle segment expanded its non-GAAP net profit to $86.3 million and improved its non-GAAP net margin to 70.2%. Our operating cash flow continued to be strong, reaching $61.7 million for the quarter. The steady expansion of our profitability and its current market condition demonstrated improved efficiency and enhanced resilience of our business. We are in an environment of increased macro uncertainty, raising inflation and increase the cost of living continued to negatively impact consumer spending. The lifting of lockdown and travel restrictions imposed during the pandemic contributed to a resurgence in travel demand during the summer season. further diverting consumers' time and spending to offline activities. The aggressive application of the U.S. dollar was also an unfavorable factor as our price rose in local currency terms. Those various high winds had and will affect the short-term monetization efficiency for a wide variety of global companies, including Joy. Despite these macroeconomic challenges, a significant proportion of global users is still underserved for social entertainment services. In a time of increased uncertainties, users are seeking more emotional value from their products, such as a sense of belonging and meaningful connections with others. That's why we respond to this volatile microelement first and foremost by turning inward. continue to integrate our products and cultivate our user community while maximizing the emotional value our services can provide. In recent quarters, we launched several major product features updates, including bigger lives, virtual life, and community like this loop an interest-based community feature and hardware 3D hardware space. Those features serve to improve the quality and the efficiency of our users' social experience, enabling them to better engage and foster meaningful connections with those who have a similar interest, together with our drivers and divers inclusive community culture, we believe those efforts will help our products deliver an important and unique emotional value to our users. In addition to matching this emotional value, we continue to be fully dedicated to creating value for our creators by providing creator-friendly video creation tools and monetization features and cultivating a user community that is built on equity and connections. We have established a creator-centric ecosystem that enable a large number of creators to showcase their talents in front of a global audience and at the same time enjoying promising economic returns. Over the past few years, we have invested a cumulative total of our U.S. dollar one billion in creators' reward. With the support of our global operation team and implementation of a variety of activities tailored to local users' needs we empower our creators to gain exposure both locally and internationally and enable them to realize the new levels of personal and professional success going forward we remain community committed to delivering value to our users and creators we will continue to cultivate diverse premium content, innovate interactive features, and organize tailored local activities. We expect those efforts will further improve the user experience. ultimately facilitate the growth of our user community and global business. To mitigate risks against the current market, we proactive implemented a series of measures to further improve our efficiency and enhance the resilience of our business. As we continue to execute sustainable growth strategy and emphasize our products' organic growth. We will be more adaptive in the execution of our user acquisition strategy. This means we will dynamically adjust our strategy based on our ROI and closely monitor shifting marketing conditions. For products that are still loss-making, such as Leaky and Huggle, we will focus on the steady improvement of their respective monetization capabilities, stick to a disciplined sales and marketing strategy. and optimize their cost structure in order to steadily narrow their respectively operation loss. We will also continue to enhance product synergy and optimize our business process to drive further improvement of our operation efficiency as a group level. As we maintain a healthy growth trajectory in our profit and cash flow since 2021, we are in a strong financial position that allows us to have greater flexibility and a continued investment in core area that builds our long-term capabilities. We expect to emerge from the above recalibration as a more focused and more productive organization, better positioned to capture long-term growth opportunities. Now, let me dive deeper into the progress we made in each of our product lines.
spk03: Let's start with BeagleLive.
spk05: As a result of macroeconomic uncertainties and the seasonality during the Red Mountain holiday in the Middle East, BeagleLive's live streaming revenue and the number of paying users declined during the second quarter. Yes, BeagleLive's user base and engagement level continued to grow thanks to our innovative feature updates and localized activities with impressed original traditions and user needs. During the second quarter, BeagleLive's MAU increased by 10.6% year-over-year 32.6 million. Notably, users in Southeast Asia and other emerging markets increased by 18.6%, while users in Europe increased by 8.7% year-over-year. To help our users in the Middle East and certain Southeast Asia countries celebrate their Ramadan holiday, Bigo Live launched a series of live events tailored to local traditions. These include cooking sessions, quiz shows, and singing contests. invited local celebrities and influencers to demonstrate the unique cultural tradition of their regions. Our new community feature, which was launched last quarter, continued to contribute to content diversification and user engagement improvements in the bar channel. Brass average views per user increased by 41%, 14.1%, and the volume of its video content increased by 7.3% sequentially. BeagleLive also upgraded its virtual live feature to enable to their live streaming experience for its users, driving up both the number of users and the cumulative time spent on virtual live session substantially over the previous quarter. Next, let's turn to Leike. During the second quarter, For a similar reason to BeagleLive, Leaky's live streaming revenue and the number of paying users declined. As mentioned earlier, given the current microevents and the fact that the short video monetization is still at an early stage of development, Leaky continued to exercise its sales and marketing strategy. further optimize its cost structure and actively explore new opportunities for monetization. We have made progress in executing those objectives and we successfully narrowed like its operating loss by 85% year-over-year and during the first half of 2022. In mid-June, LightKey launched a new feature called Loop in Europe. And the US Loop is a community feature that helps users with similar interests connect with each other. And we have so far received positive feedback from our users. For example, shortly after Loop was launched, the i9 shared more than 6 million episodes of video content, and over 50% of the users in the i9 community are following one another. This indicates that loops have contributed to the fostering of a high level of connection. We also observed steady improvements in user engagement and stickiness, especially in the region where LOOPS was introduced. As the average time spent unlikely per user increased sequentially by 10.2%. Globally, 22.7% in this region. During the second quarter, in addition to launching a variety of localized campaigns, Leike partnered with our charity organization in Middle East and South Asia to launch a cross-region donation campaign by logging into Leike and participating in the Ramadan campaign, users collected energy points every day, which could later be converted to a certain donation amount to be made by lucky through local charity organizations. More than 200,000 users participated in this campaign. Demonstrating that the user today seeks to make a positive impact on their communities while being entertained and engaged. We will continue to actively explore other opportunities to further empower our user to make positive difference in their local communities. Next, we can turn to Hargo. During the second quarter, Hargo's live streaming revenue increased by 7.1% over a year, and its number of paying users grew by 12.8% over the same period. As we continue to optimize Hargo's content recommendation algorithm, Hago's user engagement improved as evidenced by an increase in its feature channel penetration rates of 1.8 percent sequentially. During the quarter, Hago focused on updating its newly launched 3D HagoSpace feature. Hago introduced more localized customers and accessories, enabling users to design their 3D avatars according to their personal and cultural preferences. Additional interactive items and 3D virtual scenes were also introduced, both of which were well received by HAGO users. And demonstrated by the increase of HAGO space, next day user retention rates by 60.9, 14.9, sequentially. In the coming quarter, HAGO plan to further update users' HAGO space experience by introducing more 3D virtual things and items that cater to local culture and user needs. We expect to continuously increase the user penetration rates of our HAGO speech feature and further enrich HAGO users' social experience. Finally, some updates on capital return. During the second quarter, we bought back an additional 12.1 million of our shares. We will continue to actively utilize our share repurchase program to enhance return to shareholders. To conclude, we will always strive to establish the stability and find the opportunity in the uncertainty. The current macroelement does not change our demonstrated track record in capturing some of the largest growth opportunities, nor our long-term outlook on the industry, and we view the current market flux as opportunities to deepen our focus and plan for the future. We remain committed to generating value for our users and creators while improving efficiency and enhanced resilience. As we continue to invest in building our long-term capabilities, We firmly believe that Joy, as a company, will emerge from the current uncertainties as a more focused and productive organization and be well positioned to capture long-term growth opportunities and generate sustainable shareholders' value. This concludes my prepared remarks. I will now turn the call to our General Manager of Finance, Alex Liu, for our financial updates.
spk07: Thanks, David. Hello, everyone. Now let me go through the details of our financial results. Please note that the financial information and the non-GAAP financial information disclosed in our earnings press release is presented our continuing operations basis. And last advice, specifically stated, as the shield of Wawa Life was substantially completed on February 8, 2021, with certain customary matters to be completed in the future. We have changed consolidation of Wawa Life business since February 2021. Our total net revenues for the second quarter was USD 596.1 million, compared to USD 661.7 million in the same period of 2021, primarily due to macroeconomic uncertainties and unfavorable exchange rates, which negatively affect the paying user sentiment. Cost of revenues for the second quarter decreased by 17.6% over year to USD 377.7 million. Revenue sharing fees and accounting costs was USD 247 million in the second quarter compared with USD 289.1 million in the same period of 2021. primarily due to optimization of revenue-sharing costs. Bank-based costs decreased to USD 20 million from USD 27.5 million in the same period of 2021, primarily due to the company's improved efficiency in bank-based usage. As we continue to execute a sustainable growth strategy and proactively implemented a series of cost optimization measures, we effectively improved our efficiency and enhanced the resilience of our business and maintained a healthy growth in our growth and operating profitability. Gross profit increased to USD 218.4 million in the second quarter, with our gross margin improved to 36.6% from 30.7% in the same period of 2021. Our operating expenses for the second quarter decreased by 41.1% to USD 185 million from USD 314 million in the same period of 2021. Among the operating expenses, sales and marketing expenses decreased to USD 98.4 million from USD 103.2 million. due to disciplined and efficient spending on user acquisition. General and administrative expenses decreased to USD 23.7 million for the second quarter of 2022 from USD 101.1 million in the corresponding period of 2021. Our general and administrative expenses were higher in the second quarter of 2021, primarily due to a wipe-off impairment loss arising from certain equity investments. Our GAP operating income for the second quarter was USD 38.7 million. compared to operating loss of USD 101.1 million in the same period of 2021. Operating income margin for the second quarter was 6.5% compared to operating loss margin of 15.3% in the same period of 2021. Our non-GAAP operating income for the second quarter, which excludes share-based compensation expense, amortization of intangible assets from business acquisitions, as well as impairment of goodwill and investments and gain on disposal of subsidiaries and business was USD 59.9 million in this quarter. Compared to non-GAAP operating loss of USD 30 million in the same period of 2021, Our non-GAAP operating income margin for the second quarter was 10% compared to non-GAAP operating loss margin of 2% in the prior year period. GAAP net income from continuing operations attributable to controlling interest of joy in the second quarter of 2022 was USD 18.7 million compared to net loss of USD 109.3 million in the same period of 2021. Net income margin was 3.1% in the second quarter of 2022 compared to net loss margin of 16.5% in the corresponding period of 2021. Non-GAAP net income from continuing operations attributable to controlling interest of joint in the second quarter was USD 51.5 million. Compared to non-GAAP net loss of USD 0.5 million in the same period of 2021, the group's non-GAAP net income margin was 8.6% in the second quarter of 2022. compared to non-GAAP net loss margin of 0.1% in the same period of 2021. Notably, Beagle's non-GAAP net income expanded to 86.3 million in the second quarter, with its non-GAAP net income margin improved to 17.2% from 3.3% in the prior year period. Together with our improving profitability, we have maintained a strong operating cash flow as well. For the second quarter of 2022, we booked net cash inflows from operating activities of USD 61.7 million. We remain a healthy balance sheet with a strong cash provision of USD 4.29 billion as of June 30 of 2022. Importantly, we have continued to enhance returns to shareholders through dividends and share repurchase. In accordance with our previously announced quarterly dividend plans approved in August and November 2020, We will be distributing a dividend of USD 0.51 per ADS for the second quarter of 2022. Two shareholders of record as of the close of business are September 22. Additionally, we have repurchased USD 12.1 million of our shares and our previously announced share repurchase programs. As of June 30, 2022, we have in total repurchased approximately USD $327.9 million of our share repurchase programs. Given our current cash provision, we should be able to balance between keeping sufficient cash to invest in building up long-term capabilities and enhancing return for our shareholders. we will continue to actively utilize share repurchase to create value for our shareholders and current market conditions. Going forward, as David just mentioned, we remain committed to delivering value to our users and creators, and we will continue to prioritize investment into the cultivation of our content, productive interactive features, and localized activities. We will continue to enhance our operational efficiency and effectively execute our long-term growth strategies. For our business outlook, we expect our net revenues for the third quarter of 2022 to be between USD 561.5 million and USD 593.5 million. Results considering supply. We currently have limited visibility surrounding the macroeconomic activities of our business and the market in which we operate. This forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change. That concludes our prepared remarks. Operator, we would now like to open up the call to questions. Thanks.
spk01: Thank you, sir. Ladies and gentlemen, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Ladies and gentlemen, a reminder, when asking a question, please state your question in Chinese first, then immediately repeat your question in English. We will wait for a moment while the question queue assembles. Our first question comes from the line of Alex Poon from Morgan Stanley. Please go ahead.
spk06: Thanks management for taking my questions. My first question is how should we read our third quarter revenue guidance and how management sees our growth trajectory in this year's second half and next year and also for user growth trend in second half of next year. Thank you very much.
spk03: Oh, thank you for the question.
spk05: I have a few ideas. First, I want to talk about the difficulties we are facing now. I think the disadvantage of this global environment is that, first of all, I think with the lockdown of many countries and the outbreak of the epidemic, many people have started to go out for vacation, especially many of our anchors. They have more motivation to go out. In this way, it has caused a certain impact on our income. Then the second disadvantage is that the current global inflation has caused the life pressure of all consumers in this country to increase. The third one I think is the rise in US dollars. The US dollar is constantly rising. If we want to maintain the same income, we have to increase the price of the consumer's purchase of goods locally. But the ability to increase prices is actually limited. So these three are all the unfavorable situations we are facing.
spk02: This is David. I will firstly talk about the current macro headlines that we face regarding our revenue growth. The first part mainly comes from lifting of lockdown and travel restrictions. We are seeing a resurgence in travel demand. during the quarter, and also we're seeing a lot of our creators and hosts are also having an increased activity in offline traveling as well. So that is going to be an active impact on our revenue. Secondly, with rising inflation, we're seeing the cost of living putting a higher pressure on our users. And thirdly, the aggressive appreciation of U.S. dollar means that we will need to adjust our price in accordance with the appreciation, and that is going to create a negative impact on our revenue growth as well.
spk05: Yes, the second one is that I think our current goal is to pursue ROI. The whole market of marketing is focused on ROI. uh uh
spk02: So our strategy under such environment, we're going to adopt to a ROI-driven sales and marketing strategy, prioritize our efficiency over the scale of our business. It means that we're going to continue to iterate our products and cultivate our services and to rely more on our products and services to achieve organic and effective growth.
spk05: So, in terms of our profits, our strategy has also achieved a certain extent. The other thing I want to talk about is from the user's point of view. First of all, BeagleLive relies on the diversification and innovation of the internal promotion content. We have realized the breakthrough of the product and maintained the stable user growth of the product. In the case of the market investment, the discount and contraction, So for our second question, regarding the user growth trend, first of all, for BeagleLive
spk02: I think we'd be able to observe that it has been continuously expand its product outreach by further diversifying its contents and innovates product features. That's why despite our sales and marketing expenses for BecoLife declined queue on queue, BecoLife still sustained its user growth with its MAU growing by 10.6% year over year, and it proves effective user acquisition strategy of BeagleLife. So as for our second year, we believe that BeagleLife will likely maintain its user growth momentum given its effective user acquisition . Thank you for your question, and we'll now move to the next question.
spk01: Thank you. Our next question comes from the line of Thomas Chong from Jefferies. Please go ahead.
spk04: 我们应该怎么看我们在市场就是 sales and marketing 里面 研发费用还有现金费用 未来的一个趋势 还有就是我们看未来一段时间的 margin 可不可以分享一下我们的想法 Thanks management for taking my questions. My question is about cost efficiency measures. Given that we have seen many internet companies implementing measures on cost control. I just want to get some kind of management about the trend in operating expenses such as sales and marketing, R&D, G&A in the second half, and how we should think about the margin trend going forward. Thank you.
spk07: Hi, Thomas. Thank you for your question. Let me answer it. In the second quarter, we can see that our overall profit is much better than expected. Bigo Segment achieved 17.2% of non-GAAP operating power. The whole group also achieved 8.6% of non-GAAP operating power. This is mainly due to our persistence, a strategy that can continue to grow, to continue to optimize costs and fees, as well as to improve overall operating efficiency. Let's take a look at Beagle Segment's second quarter. The interest rate has been significantly improved year by year, year by year. This is mainly due to the optimization of content cost, as well as the optimization of loan use cost, as well as the reduction of channel payment costs. As for other expenses, including sales marketing, research and management, they are also reduced. What is worth mentioning is that in the case of short-term fluctuations in income, our group can still achieve continuous efficiency improvement. This reflects our... to avoid a cost-saving impact. Let's take a look at the two-year margin outlook. We expect that Beagle's net profit will remain stable. In addition, considering that local business activities will increase in the second half of the year, the cost of our sales marketing will increase to a certain extent. Other expenses can be saved under the premise of overall promotion. Therefore, we are very confident that Beagle's annual non-GAAP profit will be increased to the level of 2021.
spk02: Thank you, Thomas. This is Alex. I will answer your question. So you can see that in the second quarter, thanks to our sustainable growth strategy and continued optimization of cost expenses, we have managed to enhance operating efficiency and achieve better than expected profitability. Beagle segments achieved a non-gap net margin of 17.2%. while the group achieved a non-GAAP net margin of 8.6%. And if we take a closer look at Beagle's segment, our gross margin was improved both year-over-year and two-on-two in the second quarter. And that is mainly due to optimization of content cost, improved bandwidth utilization efficiency, and also cost savings in the payment channel expenses. And for our non-GAAP operating expenses such as sales and marketing, G&A, and R&D, we also saw cost savings happening across these expense items as well. And we'd like to mention that the fact that we've been able to improve our efficiency despite short-term fluctuation in revenue demonstrate that we have been forward-looking in our strategy planning. while minimizing the potential negative impact from fixed costs. So for our second half of the year and also full year of 22, we expect big O segment's gross margin to remain stable. And also given that our localized sales and marketing activities would be more active in the second half of the year, the amount of sales and marketing expenses should be slightly higher and also we expect to continue to achieve certain cost savings across other expense items given improved efficiency. I was still confident to achieve a higher non-gap profitability for Beagle segment in the full year 22 as compared to year 21. Thank you. Next question.
spk01: Thank you. Our next question comes from the line of Daniel Shen from JP Morgan. Please go ahead.
spk08: I will translate myself. uh quick management uh maybe uh share your view on the live streaming and a short video industry uh in the overseas market in each of these segment markets uh what what are the uh major combat competitive landscape uh and what's the latest change in each of the market thank you
spk03: Oh, let me answer this question.
spk05: I think from the global point of view, the competition in the short video market is relatively fierce. Yes, we can see that many products, including Google, including Facebook, including TikTok, have actually launched this short video product. I think this short video is entering a relatively fierce period of competition. Yes, and then for this In terms of live streaming, I don't think it has a big impact. Because live streaming is a product that relies on the environment of the community. In the past, in the era of YY, everyone has seen a similar phenomenon. That is to say, even in a very intense era of live streaming in China, YY's users and scale are still relatively stable. Because we, relatively speaking, form a community, it may take five to ten years. And then, the relationship between the people in this community and the people here is a network relationship. So, it is actually relatively difficult to be directly affected by the outside. Relatively, it is a very stable system. So, we currently also feel that our live broadcasts overseas have actually also repeatedly built a similar intercom. This is David.
spk02: I want to answer your question. We can firstly look at the short video sector. We believe that there has been increasing competition in the short video sector, given that we have so many new products coming into the sector, including the larger companies like Google and Facebook. as well as TikTok. But if we look at live streaming, especially social live streaming, we don't believe that the competition landscape has changed that much. I would believe that for social live streaming, this is a product and sector that is hugely reliant on the community and the sticky connection among the users. If we look back and we look at YY Live, which we use to operate in mainland China, even when the domestic or the competitive landscape increased competition in the PRC market. We see that YY Live's user scale and also revenue scale remain relatively stable. And that is because for such a social live streaming platform, it usually takes us five to ten years to build up a social connection and community. where everyone is actually deeply connected. So it's much more sticky and therefore having relatively limited impact from additional competition. So I believe that we have a strong barrier in the global social live streaming sector. Thank you. Next question, please.
spk01: Thank you. Our next question comes from the line of Yewen Zhang from China Renaissance. Please go ahead.
spk00: Good morning, Mr. Wang. Thank you for your question. I have two questions. First, I would like to ask you about the circle function of BeagleLive that we mentioned in the Preparation Remarks. Could you please introduce its functions, including the help for user contracts? The second question is about Liken and Hargo. Could you give us a quick update on the business? Thank you. Thanks for taking my question. First, regarding the BeGo Live, in prepared remarks, you mentioned the community function. Can you elaborate on that, including how does it help our user engagement and also the content ecosystem? And secondly, can you give us an update on the like and a hug of business?
spk03: Thank you. Let me talk about Hargo and Lighty.
spk05: In the last quarter, Hargo introduced 3D Space, a virtual reality social interaction feature. After a quarter of delay, the 3D scene and virtual characters have been updated. In terms of functionality and user experience, there has been an obvious improvement, which effectively drives the user to be more active. The new transformation scene, which is the decoration of the mall, has also completed the initial installation and online. I think there will be opportunities in the future to further improve the efficiency of the transformation of the product and the diversity of the transformation mode. And then, regarding the product, the focus of our product is still on the construction of the creator's training and community of information. We are in the community building of this aspect of the new on the line of the road of this function in Europe and the United States on the line after it to the user of this activity of social activity to improve the relatively obvious and then our next loop will be more of this area on the line through a higher efficiency of this interest content of the match and this community relationship drive the growth of this community at the same time it also explore the new this transformation opportunity similar to this interest in e-commerce and so on
spk02: Thank you for your question, Mrs. David. I will answer your question. So I've talked about We Go Live previously, so now I will mention mostly about HAGO and MyKey. HAGO launches 3D space virtual reality social interaction feature last quarter, and it introduced a variety of virtual 3D scenes and virtual costumes during the quarter, significantly improving user experience and engagement. Hargo also completed the setup of the virtual costume stores for users so that they can freely shop and dress their digital avatars. And this should be a meaningful step forward to further improve Hargo's monetization efficiency and diversifying its revenue stream. And for Leike, it's still focusing on the cultivation of creators and facilitating the growth of interest-based communities. So after the new community function loop is launched in Europe and U.S. during the quarter, we have observed improved social interactivity on Laiki. We plan to make loop available in more regions and facilitate the growth of each vertical community through more efficient interest content matching. We will also explore new monetization opportunities under the feature, more community-based social commerce, for example.
spk05: Yes, the virtual live stream of BeagleLive and the new features of the community are also being promoted, and the user feedback is also relatively positive. The activity of the entire user and the diversity of the bar content have been improved. In the second half of the year, we will also introduce some new ways of playing, such as the match feature of the user, which will further improve the user's live experience and social experience.
spk02: And also some additional updates on Beagle Live. We've mentioned that the recent launch of Beagle Live virtual live and community feature has been launched in the previous quarter and we have received positive feedback from our users. Both have contributed to increased activity in live streaming sessions and also the content diversity and social activity on our bar channel. In the second half of the year, we plan to launch some new features such as Match to further improve our users' social interaction experience. Thank you. So that's the end of our call and we look forward to speaking with everyone next quarter.
spk01: Thank you. That does conclude our conference for today. Thank you for your participation. You may now disconnect your lines.
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