Aurora Mobile Limited (NASDAQ:JG) Q4 2022 Earnings Call Transcript

Brian Kinstlinger: Great. That’s super helpful. Can you talk about the advertising market in China. I know we saw a small recovery in the fourth quarter for revenue sequentially for value-added services. So maybe talk about the trends you’re seeing today in advertising and how you see that recovery in 2023.

Shan-Nen Bong: Yes. As you see, the quarter-over-quarter, we’ve achieved sequential growth, which is really encouraging. But if you look ahead for the next 12 months, we still see some weakness or headwinds in the advertising space. As it is more so for us because our platform is not as huge as Tencent or the other bigger player. So I think we do not expect it to be back to, say, like 2020 or ’21 level, but I’m sure will be better than 2022.

Brian Kinstlinger: Got it. Outside of that, maybe you did see sequential growth in basically all your business lines. First, we got the holiday in the first quarter. So maybe should we expect seasonality in the first quarter in each segment. And then do you see gradual improvement in each of them. Maybe just touch on the segments. I know you don’t give revenue guidance, but maybe from a high level, talk about the segment’s outlook for the year.

Shan-Nen Bong: So the short answer to your both questions is yes, yes. So yes, we do expect to see a seasonality low in Q1 because of the Chinese New Year and the holidays in the shorter month in February. That is what we expected. Going forward, yes, we do anticipate Q2, Q3, Q4 to see uptick. Going forward, as 2023 versus 2022, yes, we do expect all business lines to achieve at least a single-digit growth.

Operator: Our next question comes from the line of Kelvin capital.

Unidentified Analyst: I would like to ask 2 questions, if I may. First of all, of course, we have already seen very encouraging results from many aspects. Maybe the company could share with us how you have achieved these set of good numbers. That’s the first question. And the second question is a follow-up on this partnership with WhatsApp and platform that — will there be any other going overseas initiative which is on the table. And if yes, what’s the progress of the other going overseas initiatives.

Shan-Nen Bong: Okay. If I recap your question — the first question is you’re asking what are the things that…

Unidentified Analyst: The drivers for the encouraging numbers for last year and Q4. And the second question is more — any more color on the going overseas initiatives?