Rakuten Group Inc S/Adr

Good afternoon and thank you for joining Rakuten's 2024 Third Quarter Financial Result Meeting. We have disclosed the latest consolidated financial report at 3.30 p.m. today. You can view this data on our corporate website page for investors along with the presentation documents used in this meeting. If your audio or video is interrupted, you can use another streaming server from the button below the video. Mr. Megitani will begin the presentation. Good afternoon, everyone. So let me begin this presentation. Lockdown Group 2024 third quarter consolidated financial result announcement. So this is the agenda for today. We are going to explain the overall group strategy and the third quarter highlights and segment-based result and CFO will explain and Chief AI Officer Tim Chai will also make a presentation. And first about the group strategy.

So this time, we will talk about the current status, but we also would like to talk about the future strategy just a little bit. So what you are very much concerned about, the Rakuten mobile situation. Right now, the total number of mobile subscribers is 8.12 million lines, so it's growing steadily. an MNO, capital investment. After we have had the full-fledged investment, we have, for the first time, a quarterly profit. For Nongap operating income, 12.3 billion Japanese yen in profit, and IFARS operating income, 538 million in profit, and also achieved a quarterly self-funding Let me explain what this is. Rakuten Group companies, there are multiple businesses in this group. We have different FinTech companies. We receive dividends as well as management fees, and also other subsidiaries having cash. We do the cash management. investment is made, and also from the banks and capital markets, we have no loans coming from the financial market, meaning we are sustaining ourselves financially ourselves. So that is a major contribution to sound financial situation of our group, and Rakuten Mobile as well. We have good visibility as to the future vision, and therefore Rakuten Mobile Leveraging the cost advantage, we would like to grow this business, Rakuten Mobile, and also derived from that, there is various kinds of data that we collect. I think we are one of the rare entities that have rich data that we have in our hands, and more than 100 million members domestically, and also more than 1 billion overall in the entire globe. And we have such membership, and we would like to have this growth. We have made English our official language.

And we are able to grow towards the international market. And the sourcing weighted average cost The WACC and high growth and high returns should be monitored carefully for our future growth. For your information, Lockdown Mobile, this is our internal comparison against the globally successful use case. First, about within the Rakuten group, we saw the Rakuten cards grows rapidly, which is about 30 million customers. at this moment, and initial phase of this Rakuten card, if we compare the speed of the subscription, the Rakuten Mobile is 1.7 times faster than the Rakuten card. And when we compare the speed of the increase against the T-Mobile, which is a global big player, they had introduced a program called Un-Carrier, and they started to grow very rapidly and their growth speed We had adjusted against the population level, but we are even faster than the T-Mobile growth rate. They had four competitors, and with the un-carrier concept, they were able to refresh this dominated telecommunications market in the States. So within the carrier, they have the largest market cap at this moment. So we would like to aim to be like them.

Next.

Rakuten Mobile is not a standalone business, but rather it is one of the pillars for the whole ecosystem. And that is really the positioning of our mobile business. There is a large aspect like that. And so I've been explaining this in the past as well, but once Rakuten Mobile subscribers joins the ecosystem, they will actually use other services by Rakuten. For example, when you... Compare the subscribers versus non-subscribers. Rakuten Travel, there's this difference of 13.5%, and Rakuten Car, 26.8%. In other words, that is how much more the subscribers actually use Rakuten Group services. And this is quite interesting. The subscribers versus non-subscriber comparison is shown here. And two years later, after... 0.75 services is used by these customers. On the other hand, the subscribers, of course, they are within the ecosystem. There are many Rakuten ecosystem lovers, including Ichiba, 1.25 is the number of services used to be, but now 3.25. In other words, the difference, the additional new services that you sign up to is plus 2.45. In other words, the subscribers... actually use more of our services. So the Rakuten mobile subscribers will really become the driving force for not just Rakuten mobile business but Rakuten group businesses overall. And so we have changed somewhat the accounting policy but the details will be explained by Mr. Hirose later. But so ecosystem contribution is what we are focused on. Of course, there are pluses and minuses. Therefore, we have to consider both aspects, plus and minus. But then Rakuten mobile earnings will be considered after considering both positive and negative. And the EBDA will reflect those considerations. And also, I'd like to talk a little bit about AI. Now, this is not related to AI alone. And just to give you an example, customer support for Rakuten mobile customers. It used to be Almost 200 yen per user. That was the cost to support the Rakuten mobile users. However, we're shifting more to the internet. Of course, they can call by phone, but since September this year, we have more leveraging of AI. And so what used to be 195 yen per month as the customer support cost, it is now down to 37 yen. Especially with the use of AI, we were able to reduce cost by 31%. And therefore, this is the kind of AI activities as part of what we call triple 20 we are conducting. So marketing efficiency gains 20%, operational efficiency gains 20%, as well as client efficiency gains 20%. So these are what we're targeting.

So this concludes our kind of overview of our performance. Now I'd like to explain more details about these Q3 performance. First, about the consolidated revenue. The record high amount was recorded, which was $566.7 billion, which is a 9.3% increase from the previous year. And the growth of the revenue, the 40% of that is coming from the Rakuten Mobile. So Rakuten Mobile actually is boosting the growth of the entire group. That is what we believe. And as for the non-GAAP operating income, compared to the previous year, 53.4 billion yen improvement, which is 12.3 billion operating profit, would be And IFRS also will record 538 million OI will be recorded. And consolidated EBITDA, this is to view our cash flow basis, very important factors. It has increased from 35.6 billion to 92.2 billion, which is the increase of the 159.1%. This is a huge hike, and the consolidated EBITDA is $92.2 billion profit.

So let's deep dive into the different segments. First, shopping, travel at the center of the Internet service segment that I would like to explain first. So for revenue, increase of 4.4% year-on-year at 314.6 billion yen. Last year, from September to October, we had this hometown tax donation system being changed and there were some last-minute contributions there. So still, compared against that, we still have this positive growth. in percentage. And for a non-GAAP operating income, it's 21.2 billion Japanese yen, which is 54.2% increase year on year. Let's go a little deeper on this. So starting with GMS, so hometown tax donation is one factor that impacted us in the past, and also focusing on larger purchasers. There was also national travel support last year. So these were some of the elements that pushed up the GMS last year. However, if you eliminate these one-off items still, we have GMS growth, Rakuten Travel, for example, compared to pre-pandemic, it has actually grown by 43.1%, and also the advertising revenue increased by 4.3% year-on-year. And IRR for investment business was up 17%, and international business units revenue was up by 9.4% compared to last year. In other words, they are progressing very steadily. Let's look at Rakuten Mobile and Rakuten ecosystem, especially the synergistic effect together with Ichiba. Now, Rakuten Mobile users or subscribers, Well, they become subscribers at Rakuten Mobile without being a member of Rakuten, for example. And let's say they become a subscriber, and one year later, 66 or 67 percent of these subscribers actually purchase items on the Ichiba. So especially young, new subscribers have been making tremendous contribution in this regard. 47.9% increase was seen in GMS of Rakuten mobile subscribers versus non-subscribers. So they buy more. And also, how often do they do shopping in Ichiba? We have done the same kind of a comparison between the subscribers versus non-subscribers, and there's a gap of about 40%. In other words, the ecosystem effect is here. So Rakuten mobile subscribers is one of the driving forces there. And looking at the international business unit, Now, in the past, of course, we don't know about the future, but when we look at the past, of course, operating income suffered as a result of the Ukrainian situation, for example. However, we see this very strong recovery trend continuing. And so basically Q3 is profitable. We have realized that. And therefore, we're going to expect large profit ability in Q4 as well.

Moving on to the FinTech. Allow me to explain. Lockton Bank and Lockton Security is the center of this FinTech segment. And each customer segments are expanding continuously and steadily bringing the profit. In addition to this, Lockdown Card, Lockdown Payment, Lockdown Banks are largely increasing their profits. The revenue-wise, we have reached up to $208.2 billion, which is a 12.8% increase from the previous year, and the operating income is $40 billion, which is an increase of 57.2% from the previous year. The highlight of each segment, for example, in case of the Lockdown Card, the Shopping JTV, It had reached out to 6 trillion, which is 12.7% increase from the previous year, and Rakuten Securities' general account is 11.65 million, which is increase of 20.3% YOY basis, and NISA and other Rakuten Securities deposit asset is 32.2 trillion, which is 39.1% increase YOY basis. And Lockton Bank accounts number is exceeding 16.19 million, which is 12.6% increase. And Lockton Bank deposit balance is 11.1 trillion, which is increase of 16.4% YY basis. So FinTech segment is working quite well. And Shopping GTV had already been explained earlier, but in addition to this, OI is 19.4%, which is largely improving. Non-GAAP OI is... 16.5 billion, which is a 50.9 percent increase from the previous year. We are increasing the GTV, but also the cost would be managed well. Therefore, the profitability can be maintained. Also, we earlier made the press announcement about this, our strategy for the further growth. We are making the Rakuten card and Mizuho Financial Group's strategic capital and business alliance. So that was announced earlier. And in detail, we will have the press announcement tomorrow. So I would like to give you more explanation in that session but we are going to integrate the acquiring performance and also we are going to have the holistic complementary relationship between Rakuten and Mizuho. And as for Rakuten payment, finally, We have reached out to the full 1.4 billion profit, so the improvement by 3.3 billion from the previous year. Therefore, we are seeing the profitability improvement, but also GTV is also increasing. And various surveys are proving that we are good in customer satisfaction and perceived value and intention to recommend we are devaluated quite highly in this area is and for stuff to insecurities we are expanding the customer basis and the we have the e twenty percent point three percent increase from the previous year which is the e eleven point six five billion and also all we have slept the please from and last year but we and now recovering to the pre-drop period because of our various countermeasures. And as for the Lactam Bank, we made the performance announcement yesterday and we are progressing very steadily, and our operating income is increasing about 27%, and operating profit is increasing approximately 40%. And for the balance sheet-wise, we have the capital-added accessory ratio of 11.4%, and we see the increase of the deposit balance and the number of accounts.

Mobile segment sales or revenue is up by 19.5%, so it's now beyond 100 billion. And non-GAAP operating income, year-on-year growth of 26.5 billion yen. EBITDA. 30.5 billion yen plus. So we have come thus far to be able to see a positive number in the horizon. Now, when you look at this chart here, this looks at the revenue. Very steady, 30.3% increase is seen there. And non-GAAP operating income, We have this new accounting standards. So I have been reported that things have been adjusted accordingly. And for EBITDA, especially Q4, finally, 10 billion or less than 10 billion there, minus number that is. And so EBITDA positive number is in the near future possible. And the... MainKey KPIs, the MNO service revenue plus 42.2%. Total subscriber, 8.12 million. And so there were some subscribers that are after the short-term gains of gaining points. However, if we exclude those people, the churn rate, adjusted MNO churn is 1.09%. And ARPU, 2,850. Ecosystem contributions is reflected here, but our target is 3,000, and we're approaching that 3,000 ARPU. And so when you look at the chart here, March to May, there is a lot of last-minute purchasing or demand, and also there were large-scale corporate customers concluding contracts, but from August to October, This period is where companies or people do not really conclude new contracts, rather slow period, however, still very steady, and October number shows a plus 46.5% growth. And major factor is ecosystem, Rakuten Ichiba, Rakuten Card, Rakuten Bank, all of these group companies are participating in the so-called campaigns, and we are expecting people, the users there, to come into these new campaigns. program and also we have new programs the family the youth the kids the psycho programs and so the young people has been very successful we have been successful with the youth however one of the challenges used to be our senior customers we were rather a little bit weaker there however with the psycho senior program Compared to the previous year, it is about 70% of what it was last year. So I think it is growing. And how many people are coming from other competitors to us? Again, a very steady, very positive trend is seen here.

The quality of the telecommunication has been improved significantly, and I think we are able to satisfy our users. But we will continuously improve our network quality as for the subway. 40% of the subway routes are covered with 20 megahertz. It is good enough. However, still, there are some areas we only have 5 megahertz coverage. So by March the year after, we will cover it with 20 megahertz. And indoors and also allies between buildings and crowded areas, we will prepare with a 5G network so that we can offer faster communications to the customers. And this is the Tokyo Metro status. Right now, 40% of the stations are now under 20 megahertz bandwidth. But within 2025 fiscal year or by March 2026, we would like to reach up to 100% coverage. So with this, LactoMobile, This has a strong tie with our ecosystem. The heavy users are moving into the mobile when data usage on daily basis is 0.33. So it used to be in giga, but now it is about 30 giga right now. So the heavy users are increasing, and people are moving into the heavy user range and enjoying the convenient internet environment. Various surveys are proving this, like OpenSignal survey says that the uproot speed and 5G availability are top class in the world. We are the carrier who had moved or improved the 5G availability on a yearly basis. We are number one. So this is a network. not only expanding our network coverage, but in Japan we have natural disasters quite often because of this location uniqueness. But in order to respond to those elements, we are leveraging the technology which cannot be materialized by the other operators, and we will continue to offer the telecommunications capabilities to our users. For example, if the blackout happens, normally it has to be covered by the batteries, cell batteries. but we will all control remotely. As for the upload, we will have to ask for the slower communications or upload capability, but with this, we will be able to extend the battery life to maybe four to five hours instead of three hours. Also, we will introduce some creativities to our software side as well. This is something that's locked in group, can leverage because we have the virtualization capability. And one other big strategy is what I would like to share with you. Towards next year, we are going to introduce various creativities and we will leverage AI in full. so that we will be able to save the energy usage by 20%. The base station operation will be monitored so that we are able to adjust the power accordingly and the crowd data center energy savings methodology will be introduced and also network equipments which are not really used will be switched to the low power mode and AI embedded intelligent controller for the wireless communications. We will reduce the power level or areas where not used and will condense the power utilization to the highly used areas. And AST is often asked by you. I do understand that you are quite interested in this AST. And 2024, September the 12th, the Bluebird, the 16-meter, times 16-meter, the very gigantic Bluebird, satellite has been launched and has unfolded the wings successfully. And we have already confirmed that the communications are now successfully done in the United States, and we are going to cover throughout Japan. through AST and we will continue to have the communication under the disaster areas as well. So this is a great opportunity. So I would like to share some case from the United States so that you can imagine what will be brought into Japanese environment. Please take a look at this video.

You're driving through the middle of nowhere when your car breaks down. No signal, no way to call for help. While camping, a family member is injured. You can't look up treatments or dial 911. There's an emergency back home. You're hiking through a national park, and you don't get the calls. Mobile connectivity is so essential to modern life, we assume it will always be there when we need it. Trouble is, vast regions of the planet remain dead zones for cellular broadband, places where cell towers may never reach. But thanks to AST Space Mobile's groundbreaking satellite technology, that's about to change. We're working toward a future where no one has to feel stranded again. AST Space Mobile is an American company building the world's first and only space-based cellular broadband network. From the beginning, we designed our satellites to work like cell towers in space and directly with ordinary, everyday mobile phones. Our goal? Provide coverage to even the most remote of areas in the middle of a desert, on top of a mountain, in coastal waters, even in flight. And not just SOS, text, or voice. We're talking high-speed downloads, streaming, and video calls. A way to stay safer out there, share your journey with loved ones, work from wherever you want to, or maybe catch up on your favorite show. Imagine other ways space-based cellular broadband could change our lives for good. Internet-connected sensors powering more efficient farming and transportation, lowering the cost of groceries. Doctors monitoring patients in real time, regardless of where they are, improving healthcare outcomes. Small businesses in rural areas reaching more customers, boosting economic growth. And in a world where disasters can take down traditional connectivity, having a backup plan is more important than ever. If the power goes out and mobile towers are not operational, AST Space Mobile's planned global network could serve as a crucial backup. Victims could still call for help, plus see more efficient distribution of emergency services, food, and other supplies. To use AST Space Mobile, you won't need a special device, just the phone you already have in your pocket, powered by existing cellular providers. Premium spectrum through our US partners is ideal for passing through trees, cars, and even buildings. We're creating a fleet of commercial satellites called Bluebirds. Each will have the largest ever commercial communications array in low Earth orbit, helping support up to 120 megabit per second peak data rates. At AST Space Mobile, we're building a revolution in how the world connects, together with our strategic partners, which include AT&T, Bell Canada, Google, Rakuten, Verizon, and Vodafone. So, Rakuten Mobile,

We'll receive directly from space the signal covering the entire land of Japan almost in 2026, which is very soon. That is what we're aiming to realize, and so we're making our utmost effort. And as a result, ARPU is 2,801 yen right now. Now, for the new users, it's increasing. And that portion is related to ecosystem contribution. You might think that that is diminishing. However, when they become royal customers, about 900 yen worth can be expected from there. Of course, we will increase the data portion. I hope you will have better understanding as to how we approach data, and so this will be reflected. And also, more than that, the sales from Rakuten ecosystem, as well as the profit, So we would like to increase it up to, you know, gradually to 1,500, for example. And so one of the things that we have been doing is, you know, generative AI is attached to Rakuten Link. Chats and calls were what was covered in Rakuten Link, however. more advanced communication will be possible. Simultaneous interpretation will be realized using this function. And in addition to that, Rakuten group Well, point data and integrated common brand used to be what we used to create this ecosystem, but Rakuten group services, including Ichiba travel books and so forth, and there are many other services that can be integrated, and AI can provide a concierge service. across the board. And so we would like to realize that and will be integrated under or within Rakuten Link. And so that's what we envision. So 900 yen will go beyond 1,000 and go further up. That's what we're considering. And that is done, we believe, through this type of strategy that we have in mind. And finally, I'd like to talk about Rakuten Symphony. Now, of course, Rakuten Mobile made dramatic progress thanks to the technology offered by Rakuten Symphony. Now, other companies may spend 20, 30 years to build their network. We appreciate their effort. They have made tremendous efforts to develop the network. However, there are cases where old equipments are used. That is also a fact. But we are really using technology of the future to develop our network. And broadly speaking, internet services is at the top here, but there are many different kinds of applications. And OSS, site management, for example, is done here. And services quality management is done as well. in this segment of OSS. In other words, software that is serving as sort of a pilot. And also, there's a lot of computational capacity needed. So this is really RAM, that is a very key technology, and cloud. Rakuten platform and also 4G people or companies are moving to their respective own cloud. And so... We have a lot of actions going on in cloud, not just telecommunications companies, but many different companies are approaching us with regard to cloud. Let me explain a little more about Rakuten Cloud. What we're doing is Azure, AWS, Google, these players are running public clouds. However, not like them, we are focusing on private clouds by different companies to be developed. In other words, we provide software to enable these companies to do so. And therefore, our cloud license will be purchased by these companies, including AI services, so that we can provide them with our services in the cloud area. Our strategy is that we will attach various functionalities and features to sell the whole service. And in the mobile area, we have Rakuten and 101. There is a steady track record already, and compared to others, I think, economically speaking, we will be able to offer something that is more advantageous for our customers. And also strategic partnership with a large cloud vendor is likely, and I think there is a huge potential. For Symfony overall, last year, we considered 2023 as a foundation year. contracts secured with 31 customers. These are global companies. Now, this year, that is 45 customers, and next year, 100-plus is what we're targeting for. And the regional split is we have South America included, 12 companies, and EMEA, 19 companies or customers, and Asia or APAC, 14.

So to summarize, our performance has been quite steady. And thanks to your loyalty, Rakuten Mobile has reached 8 million subscribers, and we are now starting to reach up to 10 million subscribers. And FinTech, we are doing quite well. E-commerce and others. We had some one-time factor last year, but we have been able to overcome that situation and starting to see very steady growth. And we would like to respond to your expectations and do our further effort. So now moving on to finance. So I would like to hand over to Mr. Hirose, the CFO, and Chief Data and AI Officer Tim Tsui will explain our AI strategy. Thank you for listening. Good afternoon, everyone. I would like to explain the finance. So this third quarter, we have reviewed the segment non-gap AI, starting from this quarter. So X-Systems segments interactive contribution effect is expanding. So for the contribution effect and the referral effect, it should be accurately assessed. So we are going to... reflect the non-GAAP operating income, Evita and Rakuten mobile operating profit, and Evita are reflecting to this mobile ecosystem contribution. So as we make the decision, the ecosystem contribution should be considered. So from the management approach standpoint, we believe it is important for us to explain this. And in order to keep the continuity from the previous quarter, so on the sheet we are probably showing the pre and past, the consideration of the ecosystem contribution. And as explained, we have three pillars to keep the financial health. The first is the profitability improvement. As for the core business, we will continue to increase the profit. And in 2024 fiscal year, the non-GAAP OI should reach out to the profitability. And as for Rakuten Mobile, by 2024 end, the monthly EBITDA should become profitable. And for the fiscal year basis, we are trying to reach out to the profit in 2025. And efficiency improvement, we are doing further cost reduction effort, and also we have seen the improvement of the SPU. And working capital improvement, we are trying various effort in this area as well. And Tinsan will explain later, but we are leveraging AI throughout the company, and the And for the financial sadness, the gross debt is reducing and the refinance for this year and next year, the financial risk has been removed. Going forward, we are going to improve the credit rating. As explained, towards 2025, we have removed the refinancing risk. The hybrid nodes for the domestic one, we will reach out to the first call in the November and December 2025, and we are going to address this and also all these... And self-funding, Mr. Mikitani has already explained, but the sales and leaseback in LactoMobile, this was announced in August, and $170 billion, the large amount of funding was successfully done. And LactoMobile have enough capital in hand at this moment, so FinTech and we are able to utilize this for the reduction of the net debt. And we will continue to do the fundings continuously for Rakuten Mobile. And secondly, the CB price is increasing and we are going to see the business improvements daily and also the fintech and business portfolios increasing and the balance sheet proactive management has been evaluated positively from the market and We will do some refinancing from the market, but the cost will be reduced. That is what we are expecting. So this concludes my financial explanation.

Good afternoon, everyone. I'm very excited to be here with you to share an update on Rakuten's AI strategy and execution. At Rakuten, we have a vision to augment human creativity with the power of AI. Rakuten has a long tradition of leveraging cutting edge technology and create more value for the society. Back in 1997, we eroded the wave of internet and created Rakuten Ichiba, connecting merchant with shopper and deliver more value to business and customers. And most recently, we created Rakuten Mobile by leveraging virtualization, cloud, and Open RAN to deliver high quality and lower cost services to consumers. And now we started the initiative called AInization to infuse AI into everything we do. And let me share a little bit on how we approach this. We build AI technology from ground up. And Mickey talked about the data asset we have, and we leverage deep learning to create embedding, for example, for every product in Ichiba. So we can deeply capture the user preferences and deliver the most relevant product to what they need. And on top of that, we recently built a large language model so we can further understand the user intent and matching the user interest with the best product and services we have. And next, we leverage our expertise in almost every category from mobile, fintech, and commerce so we can build the flywheel between home intelligence and artificial intelligence so we can continuously improve and deliver the best services to our customers. And lastly, we have a large portfolio of tools and technologies from traditional machine learning and deep learning and latest large language model so we can deliver the best performance by cost to our customers. So we continue to demonstrate strong execution momentum in three waves. Wave one, apply deep learning and skill across semantic search, recommendation, and most recently, in ads. And next, we're recruiting AI for businesses merchant, for hotels, for business partners, and lastly, Rakuten Air for consumers at the most largest scale. So just to share with you a couple of examples how we apply deep learning at scale. Last time we talked about rolling out semantic search to fashion and Ichiba. Now this quarter we have six additional services apply the latest semantic search technology. And the pattern is very consistent. So with semantic search, we understand what you mean, not just what you type. With that, we can reduce the zero hit ratio on search result page and therefore provide more relevant results to our users and users engage more, they come back more, and they click more and purchase more. That brings more sales to the business and more benefit to merchants. And next is semantic search recommendation. Last time I talked about how we leverage real-time recommendation and semantic matching to help users to discover what they want. Even though they may not know it, hey, we can recommend things they love. And now we have six services in production that leverage the latest semantic recommendation technology. And one example is on the Ichiba, Rakuten Ichiba top page, the recommendation widget helped increase the sales by 59%. And most recently, we're applying the deep learning technology to ads. With that, we can show less number of ads, but deliver more conversions. Our ad sale on the Rakuten Ichiba top search ads increased 4% by leveraging the latest deep learning technology. The next wave is Rakuten AI for Business. And we launched Rakuten AI Analytics so we can help our business partner to understand their customer better through customer profile data, through our user behavioral data, so they can have a deep understanding of their customer and therefore offer the best services to them. Another example is Rakuten Insights, where we can combine the Rakuten service data with our Rakuten analytical data and help our business partner to understand the customer more. We can leverage AI to generate images, you know, to visualize the profile of their customers. And lastly is Rakuten AI for consumers. As Mickey mentioned, we launched Rakuten Link AI. So millions of Rakuten mobile users can leverage the cutting edge AI technology without downloading another software, without creating another account, without additional subscription fee, and they can leverage the latest Gen AI technology right on their mobile devices. And we also going to open up Universal Concierge to invitation only. Please join the recruiting technology conference this weekend to hear more about that. I'm very proud of the progress we have made. I look forward to share with you more results in the future. Thank you very much.

So this concludes our explanation. Thank you very much.