Hello Group Inc (MOMO) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to First Quarter 2020 Momo Inc. Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded today.

女士們，先生們，感謝你們的支持，歡迎參加陌陌公司 2020 年第一季財報電話會議。 （操作員指示）請注意，今天正在錄製本次會議。

I would now like to hand the conference over to your first speaker for today, Ms. Cathy Peng. Thank you. Please go ahead, ma'am.

現在我想將會議交給今天的第一位發言者彭凱茜女士。謝謝。請繼續，女士。

Thank you, operator. Hello, everyone, and thank you for joining us today for Momo's First Quarter 2020 Earnings Conference Call. The company's results were released earlier today and are available on the company's IR website. On the call today from Momo are Mr. Tang Yan, Co-Founder, Chairman and Chief Executive Officer; Mr. Wang Li, President and Chief Operating Officer; Mr. Wang Yu, Founder and Chief Executive Officer of Tantan; and Mr. Jonathan Zhang, Chief Financial Officer. They will discuss the company's business operations and highlights as well as the financials and guidance. They will all be available to answer your questions during the Q&A session that follows.

謝謝您，接線生。大家好，感謝您今天參加陌陌2020年第一季財報電話會議。該公司的業績已於今天早些時候公佈，並可在公司的 IR 網站上查閱。陌陌今天參加電話會議的有聯合創始人、董事長兼首席執行官唐岩先生；王力先生，總裁兼首席營運官；探探創始人兼首席執行官王宇先生；以及首席財務官張建鋒先生。他們將討論公司的業務運營和亮點以及財務狀況和指導。在接下來的問答環節中，他們都會回答您的問題。

Before we begin, I would like to remind you that this call may contain forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to the events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which 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 factors is 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 law.

在我們開始之前，我想提醒您，本次電話會議可能包含根據《1995 年私人證券訴訟改革法》安全港條款做出的前瞻性陳述。此類陳述基於管理層當前的預期以及當前的市場和營運條件，並與涉及已知或未知風險、不確定性和其他因素的事件有關，所有這些因素都難以預測，其中許多因素超出了公司的控制範圍，可能導致公司的實際結果、業績或成就與前瞻性陳述中的結果、業績或成就存在重大差異。有關這些和其他風險、不確定性和因素的更多資​​訊包含在公司向美國證券交易委員會提交的文件中。除法律要求外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

I will now pass the call over to Mr. Tang. I will translate for him. Mr. Tang, please?

我現在將電話轉給唐先生。我會為他翻譯。請問唐先生？

(foreign language)

（外語）

[Interpreted] Good morning and good evening, everyone. Thank you for joining our conference call today. As you can imagine, Q1 was a challenging quarter for Momo as well as for many other companies who operate in China amidst the difficulties caused by the COVID-19 outbreak. I'm proud that the team has been able to adapt well to the changing environment and navigate through these challenges with solid execution against our strategic goals. Today, my team and I will walk you through the key operating and financial results. We are also going to reiterate our priorities for the year and how we are going to approach them in the coming few quarters.

[翻譯] 大家早安，晚上好。感謝您今天參加我們的電話會議。可以想像，在新冠疫情造成的困難中，第一季對於陌陌以及許多其他在中國營運的公司來說都是充滿挑戰的一個季度。我很自豪團隊能夠很好地適應不斷變化的環境，並透過堅定執行我們的策略目標來克服這些挑戰。今天，我和我的團隊將向大家介紹主要的營運和財務表現。我們還將重申今年的優先事項以及未來幾季我們將如何實現這些優先事項。

(foreign language)

（外語）

[Interpreted] Firstly, a brief overview of the financial performance. For the first quarter 2020, total revenue was CNY 3.59 billion, down 3.5% year-over-year. Adjusted operating income for the quarter was CNY 801.0 million, representing a 22.3% profit margin. Excluding Tantan's loss, adjusted operating income for the core Momo was CNY 901.5 million or a 28.1% profit margin.

[解讀]首先，簡要概述財務表現。 2020年第一季，總營收為35.9億元人民幣，較去年同期下降3.5%。本季調整後營業收入為人民幣8.01億元，利潤率為22.3%。剔除探探的虧損，核心業務陌陌的調整後營業收入為 9.015 億元，利潤率為 28.1%。

(foreign language)

（外語）

[Interpreted] Now a deeper dive into other aspects of the quarter. First, on operating metrics. The core Momo app had 108 million monthly actives for the first quarter 2020, down 6% year-over-year and representing a 6.5 million net decrease from the previous quarter. As said on our last earnings call, the COVID-19 outbreak has caused a significant portion of our users to delay their time to get back to the big cities for work. It has prolonged and amplified the negative Chinese New Year effect. In addition, the strict social distancing control and associated decline in outdoor activities have also limited the demand for using an open social app to discover new relationships. In response to such a situation, the team has quickly adjusted our strategy by redirecting the traffic from nearby people and one-to-one chatting, which focus mostly on online to offline conversion toward other social entertainment experiences, which provides broader online companionships to the users. As a result, per user time spent per day continued to rise on a sequential basis, reaching a new record high since the beginning of 2018.

[解釋] 現在深入探討本季的其他方面。首先，關於營運指標。陌陌核心應用2020年第一季月活躍用戶數為1.08億，年減6%，季減650萬。正如我們在上次財報電話會議上所說，COVID-19 疫情導致我們的相當一部分用戶推遲了返回大城市工作的時間。它延長並放大了農曆新年的負面效應。此外，嚴格的社交距離控制和隨之而來的戶外活動的減少也限制了使用開放式社交應用程式尋找新關係的需求。針對這種情況，團隊迅速調整策略，將附近人和一對一聊天等主要注重線上線下轉換的流量，轉向其他社交娛樂體驗，為用戶提供更廣泛的線上陪伴。受此影響，人均日使用時長持續較上季上升，創下2018年初以來的新高。

(foreign language)

（外語）

[Interpreted] Due to the pressure on MAUs, number of paying users on Momo also saw a 700,000 net decrease from Q4 to 8.6 million in Q1 2020. Paying users on Tantan saw a 300,000 quarterly net decrease to 4.2 million in Q1 2020, also primarily due to the weak dating sentiment caused by the virus-related disruptions.

【解讀】受每月活躍用戶壓力影響，陌陌付費用戶數在2020年第一季季淨減少70萬，至860萬。探探付費用戶數在2020年第一季季比淨減少30萬，至420萬，主要也是受疫情影響交友情緒低迷的影響。

(foreign language)

（外語）

[Interpreted] Active users and other engagement metrics on Momo has been gradually rebounding since March. As we move deeper in executing our product strategies and enhancing our user experience, we plan to step up our marketing efforts from June to drive the top-of-the-funnel activities. Based on the current trajectory, we expect to see a full recovery on Momo within the coming few months. Tantan's traffic has been showing initial signs for recovery since early May as outdoor activities gradually picks up. We expected recovery to be a progressive process as the dating sentiment comes back on a graduated basis.

【解讀】陌陌的活躍用戶數等各項指標自3月份以來持續回升。隨著我們進一步深入執行產品策略並提升用戶體驗，我們計劃從 6 月開始加強行銷力度，以推動漏斗頂端的活動。根據目前的發展軌跡，我們預計陌陌將在未來幾個月內全面復甦。隨著戶外活動逐漸回暖，探探的流量自5月初以來已出現初步復甦跡象。我們預期復甦將是一個漸進的過程，因為約會情緒會逐漸恢復。

(foreign language)

（外語）

[Interpreted] Despite a rough start of the year caused by the virus-related factors, we won't let these disruptions get in way of executing our user growth strategies, which we laid out at the beginning of the year. I'd like to take a few minutes to reiterate here: first, continue to improve the social experience on our platforms, so that we can better satisfy the user demand we were not able to serve well in the past; second, penetrate into the lower-tier markets more effectively through specific product and marketing approaches; third, drive Tantan's user growth more effectively; and lastly, enrich our product matrix with new applications.

[解讀] 儘管今年年初受到病毒相關因素的影響，情況並不順利，但我們不會讓這些幹擾妨礙我們執行年初制定的用戶成長策略。我想在這裡花幾分鐘重申一下：第一，繼續改善我們平台的社交體驗，以便我們能夠更好地滿足過去我們未能很好服務的用戶需求；第二，透過特定的產品和行銷方式更有效地滲透到下線市場；第三，更有效地驅動探探的用戶增長；最後，透過新的應用豐富我們的產品矩陣。

(foreign language)

（外語）

[Interpreted] During the past several months, we've been taking solid steps on all those fronts. In Q1, one of our big focus was to optimize the chat room experience. It was particularly important during the social distancing period because chat room enables people to stay connected and have fun together when they are physically isolated. Last year, our VAS team introduced a very popular chat room experience called Love Planet, which is a moderated dating experience that emulates some of the popular TV reality shows. This year, we brought in a couple of other similar moderated shows into the chat room experience. This new initiative turned out to be effective, both in terms of driving engagements and in terms of revenue contribution. As a result, although the overall traffic was under pressure in Q1, the time spent in chat room ended up growing 20% on a sequential basis.

[翻譯] 在過去的幾個月裡，我們在所有這些方面都邁出了堅實的步伐。在第一季度，我們的重點之一是優化聊天室體驗。這在社交隔離期間尤其重要，因為聊天室可以讓人們保持聯繫，並在身體隔離的情況下一起玩樂。去年，我們的增值服務團隊推出了一款非常受歡迎的聊天室體驗，名為“愛情星球”，這是一種模擬一些熱門電視真人秀節目的有主持的約會體驗。今年，我們在聊天室體驗中引入了其他一些類似的主持節目。事實證明，這項新措施無論是在推動參與度方面還是在收入貢獻方面都是有效的。因此，儘管第一季整體流量面臨壓力，但聊天室的使用時間最終環比增長了 20%。

(foreign language)

（外語）

[Interpreted] In April, we also started an experimental project called Social DNA. Under this project, we have assigned different tasks to the users that help them better express their personalities, personal image, social preferences, hobbies or other aspects that they would like other users to know about themselves. These tasks, also known as Social DNA on our platforms, are based on our big data analysis of user behavioral and profile information as well as users' own choices. We are then building these tests into our algorithm, which will make more relevant recommendations of people and content accordingly. This project is a pioneering experiment that helps us better understand how people connect and interact effectively in an open environment. It shows our commitment to improving the efficiency in helping our users discover new relationships and build meaningful interactions on Momo.

[解讀]四月份，我們也啟動了一個名為「社交DNA」的實驗計畫。在這個專案中，我們為用戶分配了不同的任務，幫助他們更好地表達自己的個性、個人形象、社交偏好、愛好或其他他們希望其他用戶了解的方面。這些任務在我們的平台上也稱為社交 DNA，基於我們對用戶行為和個人資料資訊以及用戶自身選擇的大數據分析。然後，我們將這些測試納入我們的演算法中，演算法將據此對人員和內容做出更相關的推薦。該計畫是一項開創性的實驗，有助於我們更好地了解人們如何在開放環境中有效地聯繫和互動。這顯示我們致力於提高幫助用戶在陌陌上發現新關係和建立有意義的互動的效率。

(foreign language)

（外語）

[Interpreted] Now in the second area of focus, penetrating into the lower-tier markets through tailor-made product and marketing approaches. In Q1, we launched Momo Lite, which is a stand-alone version of Momo, that is fully connected on the back end to the core but loads much faster and requires much less data consumption than the main application. Although Q1 was relatively slow in development due to the constraint of resources caused by the stay-home order, we have been getting positive data feedbacks on Momo Lite. With the productivity coming back, we are now speeding up on the iterations to enhance the user experience. On the main application, we also have started showing localized version with tailored content and activities that better appeal to the users in lower-tier cities. Soon, we will be supporting these new product efforts with the promotion programs that are also tailor-made for the lower-tier markets. We believe these initiatives will help us better satisfy the social demand in different geo regions and thus better seize the growth opportunities there.

[解釋] 現在進入第二個重點領域，透過客製化產品和行銷方式滲透到低線市場。在第一季度，我們推出了陌陌精簡版 (Momo Lite)，這是陌陌的獨立版本，它在後端與核心完全連接，但加載速度比主應用程式快得多，並且需要的數據消耗也少得多。雖然第一季由於居家令導致資源受限，開發進度相對緩慢，但陌陌Lite的數據回饋還是比較正面的。隨著生產力的回歸，我們現在正在加快迭代速度，以提升用戶體驗。在主應用程式上，我們也開始展示在地化版本，其中包含客製化的內容和活動，以更好地吸引低線城市的用戶。很快，我們將透過針對低端市場量身定制的促銷計劃來支持這些新產品的推出。我們相信這些舉措將幫助我們更好地滿足不同地區的社會需求，從而更好地抓住那裡的成長機會。

(foreign language)

（外語）

[Interpreted] On our last earnings call, I mentioned that due to the fragmentation of the open social space and the diversity of social preferences, we are adopting a portfolio approach to better serve the social demand of our users. This is also an important strategy for us to penetrate the market more effectively and strengthen our leadership in the open social space. During the past few months, we're having solid progresses on that front. For example, Hezi or Hertz in English, an audio-based dating application we launched last year, have already scaled to a level where we can start monetizing and reap profits to support its own growth. In addition, we also have a number of other projects branching out to different subsectors within the social and entertainment space. Some of these projects are starting to take shape. We look forward to sharing more information as the year progresses.

[解讀] 在我們上次的財報電話會議上，我提到，由於開放社交空間的分散和社交偏好的多樣性，我們正在採取投資組合的方式來更好地滿足用戶的社交需求。這也是我們更有效滲透市場、加強在開放社交領域領導地位的重要策略。在過去的幾個月裡，我們在這方面取得了紮實的進展。例如，我們去年推出的一款基於音訊的約會應用程式Hezi（英文名Hertz）已擴展到可以開始貨幣化並獲得利潤以支持其自身成長的水平。此外，我們還有許多其他項目涉及社交和娛樂領域的不同子行業。其中一些項目已開始成形。我們期待隨著時間的推移分享更多資訊。

(foreign language)

（外語）

[Interpreted] Overall, Q1 2020 has been a tough and yet very fruitful quarter for us. I'm glad that the team have been able to stick to our goals and keep pushing forward on the strategic front. Although the macroeconomic environment is probably going to remain as a headwind for the coming few months, we are seeing plenty of growth opportunities ahead of us. We will continue to pursue these opportunities and drive value for our shareholders. Thank you for trusting Momo.

[解讀] 整體而言，2020 年第一季對我們來說是艱難但又富有成果的一個季度。我很高興團隊能夠堅持我們的目標並在策略方面不斷前進。儘管未來幾個月宏觀經濟環境可能仍將面臨阻力，但我們看到未來有大量成長機會。我們將繼續尋求這些機會並為股東創造價值。感謝您對Momo的信任。

With that, I'm handing over to Wang Li for business review. Wang Li, please.

這樣，我就把業務審核交給王麗了。請王麗。

(foreign language)

（外語）

[Interpreted] Thanks. Now let me take you through the progresses we've made across our key business lines.

[翻譯] 謝謝。現在，讓我向您介紹我們在主要業務領域的進展。

(foreign language)

（外語）

[Interpreted] Firstly, on live broadcasting, total revenue from live broadcasting business for the first quarter 2020 was CNY 2.33 billion, down 13% from the same period last year. As we mentioned on the last earnings call, the pressure on live broadcasting business was due to the compound of a number of different factors, among which the 2 most important ones are the economic impact of the COVID-19 adversely affecting the consumer sentiment, especially among the top of the pyramid paying users and the pressure around the traffic in connection with the virus outbreak.

【解讀】首先，直播方面，2020年第一季直播業務總營收為23.3億元，較去年同期下降13%。正如我們在上次財報電話會議上提到的，直播業務面臨的壓力是多種因素共同作用的結果，其中最重要的兩個因素是新冠疫情對消費者情緒（尤其是金字塔頂端付費用戶的消費者情緒）造成的經濟影響，以及病毒爆發帶來的流量壓力。

(foreign language)

（外語）

[Interpreted] In view of the challenging environment, the biggest priority of the team is to strengthen the product and operational efforts to mitigate the impact on revenue. After Chinese New Year holiday, the team rolled out a number of new gameplays within live broadcasting to improve the paying experience. Many of these are interactive gifts similar to the Penguin, which largely focus on improving the engagement and spending from the middle cohorts via mini game content. In the second quarter, we plan to continue to step up the operational efforts to drive the engagement and spending from the middle layers of the spending pyramid. Many of the planned efforts will revolve around building richer content experience that appeal to the middle layer and long-tail audience base.

[解讀]鑑於充滿挑戰的環境，團隊的首要任務是加強產品和營運力度，以減輕對收入的影響。春節假期後，團隊在直播方面推出了多項新玩法，提升付費體驗。其中許多是類似於企鵝的互動禮物，主要專注於透過迷你遊戲內容來提高中間群體的參與和消費。在第二季度，我們計劃繼續加強營運力度，推動支出金字塔中間層的參與和支出。許多計劃中的努力將圍繞著建立更豐富的內容體驗，以吸引中層和長尾受眾群體。

(foreign language)

（外語）

[Interpreted] The other thing that we believe is critical for driving middle cohorts and long-tail spending is to have an effective mechanism that discovers and supports new and entry-level performers. This is an area where we see a lot of opportunities for optimizations and improvements. It is also a key area of focus for the team in the coming few quarters.

[解讀] 我們認為，推動中階群體和長尾消費的另一個關鍵因素是建立一個有效的機制來發現和支持新的入門級表演者。我們看到這個領域有很多優化和改進的機會。這也是未來幾季團隊關注的重點領域。

(foreign language)

（外語）

[Interpreted] For the high-paying users, given that most of them are private business owners, whose financial conditions were pressured by the pandemic, we believe that our efforts should focus on keeping them engaged rather than letting them spend more. One of the key issues we had last year was that the top vendors were becoming less enthusiastic about the quarterly tournament events. So this year, we rebranded the tournament experience into a new competition event that we call the producer program. The new program was created as an online version of Xun Le Hui or the offline VIP music tours which was a big success last year.

[解讀] 對於高付費用戶，考慮到他們大多是私人企業主，疫情期間他們的經濟狀況受到了壓力，我們認為應該把重點放在讓他們繼續投入使用，而不是讓他們花更多錢。我們去年遇到的一個關鍵問題是頂級供應商對季度錦標賽活動的熱情降低。因此今年，我們將錦標賽體驗重新命名為一項新的競賽活動，我們稱之為製作人計畫。這項新活動是去年大獲成功的「迅樂會」或線下 VIP 音樂巡迴演唱會的線上版本。

It is called the producer program because we let the top vendors play important roles in the event. They get to handpick their favorite performers to form their own task force and compete with others as a team. In early April, we held the first season of the producer program. Although the overall spending was lower than the prior tournament events due to the negative wealth effect in connection with the pandemic, the level of participation from the top spenders improved meaningfully as compared with what we saw in the quarterly tournaments last year. We plan to continue to optimize on it and roll out a second season somewhere in summer.

之所以稱之為製作人計劃，是因為我們讓頂級供應商在活動中發揮重要作用。他們可以挑選自己喜歡的表演者組成自己的特別小組，並以團隊的形式與其他表演者競爭。四月初，我們舉辦了製作人節目第一季。儘管由於疫情帶來的負面財富效應，本屆賽事的整體支出低於往屆賽事，但與去年季度賽事相比，頂級支出者的參與程度已有顯著提高。我們計劃繼續優化它並在夏季某個時候推出第二季。

(foreign language)

（外語）

[Interpreted] Now turning to VAS. Wang Yu will talk about Tantan's business later, so I will be focusing on the VAS business for the quarter. Revenue from VAS on an ex Tantan basis reached CNY 800.1 million in the first quarter of 2020, a 31% increase on a year-over-year basis. The decrease in the number of active users and engagement levels had direct impact on VAS business. However, as compared with live broadcasting, VAS is still under monetized. In addition, because the paying user structure for VAS is long tail driven, it's much more resilient in a tough macro environment. Therefore, in order to alleviate the stress on overall revenues in Q1, we pushed the gas pedal a bit harder to drive revenue growth through operational events and richer paying experiences.

[解釋] 現在轉向 VAS。王宇稍後會講探探的業務，所以本季我將專注於增值業務。 2020年第一季，除探探外，增值服務收入達8.001億元人民幣，較去年同期成長31%。活躍用戶數量和參與度的下降對增值業務產生了直接影響。但與直播相比，增值業務的貨幣化程度仍較低。此外，由於加值服務的付費用戶結構是長尾驅動的，因此在嚴峻的宏觀環境下，其彈性更大。因此，為了緩解第一季整體營收的壓力，我們加大了力度，透過營運活動和更豐富的支付體驗來推動營收成長。

(foreign language)

（外語）

[Interpreted] As Tang Yan mentioned earlier in his remarks, in Q1, we introduced a couple of new moderated experiences in the chat rooms. These experiences are inspired by some of the popular dating reality shows and moderated by professional hosts in the commercial chat rooms. Momo users cannot only enjoy the show as audience but also participate and become part of the show. We see a lot of potential in expanding this content genre on Momo because it makes a fun consumer experience that is compatible with our core user mentality. At the same time, it also bears considerable commercial value based on a proven model. In Q1, the chat room experience shined, both in terms of engagement growth and in terms of revenue contribution. We expect it to continue to act as a key driver for the VAS business for the rest of the year.

[解釋] 正如唐岩之前在發言中提到的，在第一季度，我們為聊天室引入了一些新的審核體驗。這些體驗受到一些流行的約會真人秀節目的啟發，並由商業聊天室的專業主持人主持。 Momo用戶不僅可以作為觀眾欣賞節目，還可以參與其中，成為節目的一部分。我們認為在陌陌上擴展這種內容類型具有很大的潛力，因為它創造了一種有趣的消費者體驗，並且與我們的核心用戶心態相容。同時，基於成熟的模式，它也具備相當的商業價值。在第一季度，聊天室體驗無論是在參與度成長方面還是在收入貢獻方面都表現出色。我們預計它將在今年剩餘時間內繼續成為增值業務的主要驅動力。

(foreign language)

（外語）

[Interpreted] Other than the chat room experience, we are working on a number of new projects that have the potential to become future revenue drivers. For example, as Tang Yan mentioned, Hezi or Hertz, which is an audio-based dating application, is gaining traction within younger demographics. We have already started monetizing the application and put the revenue back into marketing, so that we can drive a virtuous cycle to grow it into a bigger scale. In addition, Hong Niang or the match making experience, which we started testing last year on the core Momo, is also making good progress. I'm very optimistic that these new projects will bring new revenue growth opportunities down the road.

[解釋] 除了聊天室體驗之外，我們還在進行一些新項目，這些項目有可能成為未來的收入驅動力。例如，正如唐岩所提到的，Hezi 或 Hertz 是一款基於音頻的約會應用程序，在年輕群體中越來越受歡迎。我們已經開始將該應用程式貨幣化，並將收入重新投入到行銷中，這樣我們就可以推動良性循環，使其發展到更大的規模。此外，我們去年在核心陌陌上開始測試的紅娘或配對體驗也取得了良好的進展。我非常樂觀地認為這些新項目將帶來新的收入成長機會。

(foreign language)

（外語）

[Interpreted] Now briefly on other business lines. Mobile marketing revenue declined 29% year-over-year to CNY 57.16 million due to the strong macro headwinds as well as our strategy to underweight the line in terms of resource allocation. Jointly operated game business continued to trend down in Q1 and will likely fluctuate around the current revenue level for the coming few quarters.

[口譯]現在簡單介紹其他業務線。受強勁的宏觀不利因素以及我們在資源配置方面採取的低配策略的影響，行動行銷收入年減 29% 至 5,716 萬元。聯合營運遊戲業務在第一季繼續呈下降趨勢，並且未來幾季可能會在當前收入水平附近波動。

(foreign language)

（外語）

[Interpreted] That's the business review of the core Momo. Now let me hand over to Mr. Wang Yu for a review of Tantan's product and business development. Mr. Wang, please?

[解讀]以上是陌陌核心業務的回顧。現在請王宇先生對探探的產品和業務發展進行回顧。請問王先生？

Thanks. So let me briefly review Tantan's operational and business development in the past quarter and our next step plans. First, on user metrics. As many of you know, we had some issues around user retention, which caused a number of daily active users to be under pressure since September last year. Last December, through a series of products and algorithm optimizations, we fixed the issue and pushed the retention back to where it was before the download suspension happened.

謝謝。那麼我先簡單回顧一下探探過去一個季度的營運和業務發展以及下一步的計劃。首先，關於用戶指標。眾所周知，我們在用戶保留方面存在一些問題，這導致自去年 9 月以來大量每日活躍用戶面臨壓力。去年12月，我們透過一系列產品和演算法優化解決了這個問題，並將留存率恢復到下載暫停之前的水平。

As we stepped up the channel marketing efforts in January, we saw the DAU grow rapidly during the 2 weeks period from late January to mid-February. However, since February 10, as the spread of COVID-19 continues beyond Wuhan and the nation-wide lockdown kept getting elevated, we have seen the dating sentiment quickly waning, creating headwinds to new registration as well as the paying conversions on Tantan. In response to these situations, we scaled back our marketing spending in March due to ROI considerations.

隨著我們在一月份加大通路行銷力度，我們看到從一月底到二月中旬的兩週內，DAU 迅速成長。然而，自 2 月 10 日以來，隨著新冠肺炎疫情在武漢以外地區蔓延，全國封鎖措施不斷升級，我們發現約會情緒迅速減弱，給探探的新註冊用戶和付費轉換帶來了阻力。針對這些情況，出於投資報酬率的考慮，我們縮減了3月的行銷支出。

The combination of the above-mentioned factors have caused the active users to trend down since mid-February, which led to a 300,000 net decrease in the number of paying users to 4.2 million at the end of Q1. With the lockdowns lifted and the outdoor activities gradually coming back, we expect to see dating sentiment start to recover gradually as well. However, we also believe this can be a progressive process as most of the people are still wearing masks outdoors, and it can take time for young people in China to completely let down the psychological barrier to meet someone he did not know well for intimate interactions.

以上因素疊加，導致活躍用戶數自2月中旬以來呈現下降趨勢，導致第一季末付費用戶數淨減少30萬至420萬。隨著封鎖的解除和戶外活動的逐漸恢復，我們預期約會情緒也將開始逐漸恢復。然而，我們也相信這可能是一個漸進的過程，因為大多數人在戶外仍然戴著口罩，而且中國的年輕人可能需要一些時間才能完全放下心理障礙，與不太熟悉的人進行親密互動。

The other thing worth mentioning is that although the number of active users were under pressure during Q1, the number of active female users and their engagements gradually grew on a sequential basis. This tells us that female users are less focused on online to offline conversions, are more into building deeper level online emotional connections. It confirms our belief that by adding richer online interactive features, we can make Tantan appeal to a broader base of users.

另外值得一提的是，雖然第一季活躍用戶數承壓，但女性活躍用戶數及參與度卻較上季逐步成長。這顯示女性使用者不太注重線上到線下的轉化，而更注重建立更深層的線上情感連結。這證實了我們的信念：透過增加更豐富的線上互動功能，我們可以讓探探吸引更廣泛的使用者群體。

Now briefly on revenues. Total revenue for the first quarter was RMB 381.7 million, up 29% year-over-year and a slight uptick from the previous quarter. Although the number of paying users decreased pretty meaningfully, the ARPPU grew significantly due to the outstanding performance of Flash Chat and revenue mix shifting more towards higher ARPPU subscriptions. The grossing to revenue conversion is another factor for the ARPPU increase.

現在簡要談談收入。第一季總營收為3.817億元人民幣，較去年同期成長29%，季減。儘管付費用戶數量大幅下降，但由於 Flash Chat 的出色表現以及收入結構向更高 ARPPU 訂閱的轉變，ARPPU 大幅成長。總收入到收益的轉換是 ARPPU 增加的另一個因素。

Now let me give you an update on the progresses we made against our key strategic priorities. First, some product and operations. Our key focus here is to enrich the product experiences in order to drive the long-term user retention. In our early days, Tantan started from the metropolitan cities in China and focused on college students and people in the late teens and early 20s. The simple swipe and match experience were quite effective for this demographic. As Tantan's user base grow and the demographic broadens, we need more features and experiences to better serve the increasingly diversified social preferences.

現在，讓我向大家介紹一下我們在關鍵策略重點方面所取得的進展。首先是一些產品和操作。我們的重點是豐富產品體驗，以推動長期用戶保留。探探早期從中國大城市起步，主要針對大學生和十幾歲到二十出頭的年輕人。對於這個人群來說，簡單的滑動和匹配體驗非常有效。隨著探探的用戶群不斷壯大，用戶群體不斷擴大，我們需要更多的功能和體驗，以便更好地服務日益多樣化的社交偏好。

In November last year, we rolled out the Flash Chat experience on Tantan, which allows the opt-in users to get immediately connected with someone for a conversation before they focus too much on profile pictures. The new feature has been well received, driving immediate surge in the number of 2-way messages. It also opens up new monetization opportunities. As Quick Chat continue to gain traction among users, revenue also ramped up rapidly in Q1, now representing more than 10% of our total revenues. We believe there's still a lot of potential in this experience, and we'll continue to optimize and drive growth from it.

去年 11 月，我們在探探上推出了閃聊功能，讓選擇加入的用戶能夠立即與他人建立聯繫並進行對話，而無需過多關注個人資料圖片。新功能受到了廣泛好評，導致雙向訊息的數量立即激增。它也開闢了新的獲利機會。隨著快速聊天繼續受到用戶的青睞，第一季的收入也迅速增長，目前占我們總收入的 10％ 以上。我們相信這種體驗仍然有很大的潛力，我們將繼續優化並推動成長。

The success of Flash Chat proves that adding new features the right way can indeed benefit us, both in terms of engagements and in terms of financials. In Q1, we also accelerated the rollout of the new version, which features Nearby Posts to allow users to share more aspects of their lives as well as make new discoveries based on content. Up to now, the new version has already reached 100% coverage among Tantan users. Like many other social networking products, having a Tantan community is very critical for driving meaningful interactions between users. The introduction of the Nearby Posts is an important step that we've taken to provide Tantan users richer ways to connect beyond our signature swiping experience.

Flash Chat 的成功證明，以正確的方式添加新功能確實可以使我們受益，無論是在參與度方面還是在財務方面。在第一季度，我們還加快了新版本的推出，新版本具有「附近的貼文」功能，讓用戶可以分享更多生活點滴，並根據內容獲得新的發現。截至目前，新版本已在探探用戶中實現100%覆蓋。與許多其他社交網路產品一樣，擁有探探社群對於推動用戶之間的有意義的互動至關重要。推出「附近貼文」是我們邁出的重要一步，旨在為探探用戶提供除了我們標誌性的滑動體驗之外更豐富的聯絡方式。

We will continue to optimize the new version and enhance the community experience around it. In Q1, we also move deeper with the internal testing of an important consumer experience, the live video service. We believe this was especially important during the social distancing period as it provides an alternative way to connect virtually and make people feel less isolated. In mid-April, we released more users into the testing group. As the number of users grow, we can now invite more quality broadcasters onto the platform and improve the quality of content, which will further drive improvements in user engagements as well as the monetization potentials.

我們將繼續優化新版本並增強圍繞它的社群體驗。第一季度，我們也對一項重要的消費者體驗—即時視訊服務進行了更深入的內部測試。我們認為這在社交隔離期間尤其重要，因為它提供了一種虛擬聯繫的替代方式，讓人們感覺不那麼孤立。四月中旬，我們向測試群組釋放了更多用戶。隨著用戶數量的增長，我們現在可以邀請更多優質廣播員加入平台並提高內容質量，這將進一步推動用戶參與和貨幣化潛力的提高。

Now a brief update on monetization efforts. Obviously, the testing of live video is not just an endeavor to improve user experience, but also an effort to unlock the monetization value of the platform. We believe that Tantan users have strong willingness and motivation to pay for value-added services in order to enhance their social experience. However, this huge paying potential needs to be unleashed by a combination of subscription and ala carte features. Live video is a proven monetization mechanism that drives ARPPU and which, if done carefully in the right way, it can also contribute to user engagements.

現在簡單介紹一下貨幣化工作的最新進展。顯然，直播的測試不僅是為了提升使用者體驗，更是釋放平台商業價值的舉措。我們相信探探用戶有強烈的意願和動力為加值服務付費，以提升社交體驗。然而，這種巨大的付費潛力需要透過訂閱和點菜功能的結合來釋放。直播影片是一種行之有效的獲利機制，可以提高 ARPPU，如果以正確的方式謹慎操作，它還可以促進用戶參與。

We intend to continue the testing with extreme prudence and carefully monitor the data to make sure we stay on the right track with Tantan's core mission, which is helping users build romantic relationships. Other than live video, we also have a number of other priorities, which include optimizing the Quick Chat experience and the existing subscription features as well as testing the formula of other new revenue features. We will continue to give you guys updates as the year progresses. Those are the key things that I'd like to cover for today.

我們打算以極其謹慎的態度繼續進行測試，並仔細監控數據，以確保我們始終朝著探探的核心使命前進，即幫助用戶建立戀愛關係。除了直播影片之外，我們還有許多其他優先事項，包括優化快速聊天體驗和現有的訂閱功能以及測試其他新收入功能的公式。隨著時間的推移，我們將繼續向大家提供最新動態。這些就是我今天想要討論的重點內容。

Now let me pass the call over to Mr. Jonathan Zhang for financial review. Zhang, please.

現在，讓我將電話轉給 Jonathan Zhang 先生進行財務審查。請張總。

Thanks. Hello, everyone. Thank you for joining our conference call today. Now let me briefly take you through the financial review. Total revenue for the first quarter 2020 was RMB 3.59 billion, down 3.5% year-on-year or 23% quarter-on-quarter, exceeding the high end of our revenue guidance. Non-GAAP net income attributable to Momo was RMB 736.3 million compared to RMB 910.3 million from the same period of 2019 or 19% decrease year-over-year.

謝謝。大家好。感謝您今天參加我們的電話會議。現在我簡單跟大家介紹一下財務回顧。 2020年第一季總營收為人民幣35.9億元，年減3.5%，季減23%，超出我們營收預期的高端。非美國通用會計準則下，歸屬於陌陌的淨利為人民幣 7.363 億元，而 2019 年同期為人民幣 9.103 億元，年減 19%。

Let me jump into the review of cost and expenses items as revenue line items have been covered comprehensively by Wang Li and Wang Yu earlier. Our non-GAAP cost of revenue for the first quarter of 2020 was RMB 1.85 billion, same as Q1 last year. Non-GAAP cost of revenue as a percentage of total revenue was 51.5%, an increase from 49.7% from Q1 2019. The non-GAAP gross profit margin for Q1 2020 was down 1.8% year-on-year. The decrease was partially attributable to higher payout, which was primarily due to higher revenue contribution from agency represented broadcasters. Secondly, certain fixed nature cost items such as headcount and depreciation of fixed assets related impacted the gross margin negatively as the total revenue declined, and these items represent a higher percentage of total net revenue.

讓我直接開始審查成本和費用項目，因為收入項目之前已經由王麗和王宇全面介紹了。我們 2020 年第一季的非公認會計準則營業成本為 18.5 億元，與去年第一季相同。非公認會計準則收入成本佔總收入比例為51.5%，高於2019年第一季的49.7%。 2020年第一季非公認會計準則毛利率年減1.8%。下降的部分原因是支出增加，這主要是由於代理廣播公司的收入貢獻增加。其次，由於總收入下降，某些固定性質的成本項目（例如員工人數和固定資產折舊）對毛利率產生了負面影響，而這些項目佔總淨收入的比例較高。

Non-GAAP R&D expenses for the first quarter was RMB 217 million compared to RMB 207.4 million for the same period last year, representing 6% and 5.6% of total revenue, respectively. The increase in R&D expenses was mainly due to the headcount increases during the year. On a sequential basis, the non-GAAP R&D expenses decreased from CNY 244.3 million in Q4 last year due to the year-end bonus incurred. We ended the quarter with 2,344 total employees, of which 725 are from Tantan. R&D personnel as a percentage of total employees for the group was 56% compared to 54% Q1 last year.

第一季非美國通用會計準則研發費用為人民幣 2.17 億元，去年同期為 2.074 億元，分別佔總營收的 6% 及 5.6%。研發費用的增加主要是因為本年度員工人數增加所致。以環比計算，非美國通用會計準則研發費用較去年第四季的2.443億元有所下降，原因是產生了年終獎金。截至本季末，我們共有員工 2,344 人，其中 725 人來自探探。集團研發人員佔員工總數的比例為56%，去年第一季為54%。

The non-GAAP sales and marketing expenses for the first quarter was RMB 645.3 million or 18% of total net revenue compared to RMB 567.5 million or 15.2% of total revenue for the same period last year. The year-on-year increase in sales and marketing expenses was mainly due to higher marketing spending from Tantan and to a lesser degree for Momo as well. On a sequential basis, sales and marketing expenses decreased due to less marketing spending from Tantan in response to the COVID-19 outbreak.

第一季非美國通用會計準則銷售及行銷費用為人民幣 6.453 億元，佔總淨收入的 18%，而去年同期為人民幣 5.675 億元，佔總收入的 15.2%。銷售和行銷費用較去年同期成長主要是由於探探的行銷支出增加，以及陌陌的行銷支出增加（但增加程度較小）。由於探探為因應新冠疫情而減少行銷支出，銷售及行銷費用較上季下降。

Non-GAAP G&A expenses was RMB 105.5 million for the first quarter 2020 compared to RMB 92.9 million for the same quarter last year, representing 2.9% and 2.5% of total net revenue, respectively. Non-GAAP operating income was RMB 801 million, a decrease of 21% from Q1 2019, representing 22.3% non-GAAP operating margin for the quarter, down 5 percentage points from the same period last year.

2020 年第一季非美國通用會計準則一般及行政管理費用為 1.055 億元，去年同期為 9,290 萬元，分別佔總淨收入的 2.9% 及 2.5%。非美國通用會計準則下營業收入為人民幣 8.01 億元，較 2019 年第一季下降 21%，即本季度非美國通用會計準則下營業利潤率為 22.3%，較去年同期下降 5 個百分點。

Now briefly on effective tax rates. Starting from the beginning of 2020, one of our major profit-making subsidiary's preferential income tax rate changed from 12.5% to 15%. As a result, our consolidated non-GAAP effective tax rate was around 19% for the first quarter, up 3 percentage points from the same period last year.

現在簡單介紹一下有效稅率。自2020年初起，我們一家主要獲利子公司的優惠所得稅率由12.5%變為15%。因此，我們第一季的合併非公認會計準則有效稅率約為 19%，比去年同期上升了 3 個百分點。

Now turning to the balance sheet and cash flow items. As of March 31, 2020, Momo's cash, cash equivalents and short-term deposits totaled RMB 15.47 billion compared to RMB 14.93 billion as of December 31, 2019. Net cash provided by operating activities during the first quarter was CNY 543.5 million.

現在轉向資產負債表和現金流量項目。截至2020年3月31日，陌陌的現金、現金等價物及短期存款總額為人民幣154.7億元，而截至2019年12月31日為人民幣149.3億元。第一季經營活動提供的淨現金為人民幣5.435億元。

Lastly, for the second quarter of 2020 revenue guidance. We estimated our second quarter revenue come to the range from RMB 3.8 billion to RMB 3.9 billion, representing a decrease of 8.5% to 6.1% year-on-year and an increase of 5.7% to 8.5% quarter-over-quarter. Please be mindful that the forecast represents the company's current and preliminary view on the market and operational conditions, which are subject to changes.

最後，關於2020年第二季的營收指引。我們預計第二季營收將達到人民幣38億元至人民幣39億元之間，年減8.5%至6.1%，季增5.7%至8.5%。請注意，該預測代表公司對市場和營運狀況的當前和初步看法，可能會發生變化。

The other thing worth mentioning here is that, up to this moment, Momo has made special cash dividends for the past 2 consecutive years. To replenish our U.S. dollar funding consumed, the company will repatriate RMB 2.2 billion in total from our WOFE in China to our offshore entity before the second quarter end. In accordance with the respective taxation laws in China, the company will pay 10% or RMB 220 million withholding tax to Chinese tax authorities. The withholding tax payments will be recorded as income tax expenses for the company in the second quarter 2020.

另外值得一提的是，截至目前，陌陌已連續兩年進行特別現金分紅。為補充已消耗的美元資金，公司將在第二季末前將總計22億元人民幣從中國外商投資企業匯回至境外實體。根據中國有關稅法規定，該公司將向中國稅務機關繳納10%即人民幣2.2億元的預扣稅。預扣稅款將記錄為公司2020年第二季的所得稅費用。

That concluded our prepared portion of today's discussion. With that, let me turn the call back to Cathy to start Q&A. Cathy, please.

今天討論的準備部分到此結束。說完這些，讓我把電話轉回給 Cathy 開始問答。凱茜，請。

Yes. Just a quick reminder. For those who can speak Chinese, please ask the questions in Chinese first followed by English translation by yourself. And also please try to limit the number of questions to either 1 or 2, so that more people get to ask questions. Operator, we are ready for questions.

是的。只是一個快速提醒。對於會說中文的人士，請先用中文提問，然後再自行翻譯英文。並且請盡量將問題數量限制為 1 或 2 個，以便更多人可以提問。接線員，我們已經準備好回答問題了。

(Operator Instructions) The first question comes from the line of Thomas Chong of Jefferies.

（操作員指示）第一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) My question is on 2 parts. First is about the Q2 revenue guidance and the second half outlook. Can management share more about the core Momo live streaming and Tantan business trends in the coming quarters? And my second question is more relating to the Tantan side. Given that you have started testing for the live streaming services, can management share about what lessons we have learned from the testing? Would that affect the dating ecosystem? And any KPI that we should expect for the live streaming revenue for the year?

（外語）我的問題分為兩部分。首先是關於第二季營收指引和下半年展望。管理階層能否分享更多有關未來幾季陌陌直播和探探核心業務趨勢的資訊？我的第二個問題與探探方面有關。鑑於您已經開始測試直播服務，管理階層能否分享我們從測試中獲得了哪些經驗教訓？這會影響約會生態系統嗎？那麼，我們應該對今年的直播收入有哪些預期的 KPI 呢？

(foreign language)

（外語）

[Interpreted] So the first part of the question on the Q2 guidance. The company's Q2 guidance is based on some of the recent trajectories that we have been seeing and also management's assumptions for the coming couple of months. We can see it in several components. Firstly, for live broadcasting, based on some of the trends that we've seen so far into the second quarter, we believe that the macro conditions, especially the economic condition of the private business owners, are going to continue to be a headwind to to the consumer sentiment, especially that among the higher-paying cohorts. And the other factor that we put into the Q2 guidance is the suspension of live broadcasting service during the national mourning day. That is also going to pressure the overall revenue by a couple of percentage. So the rate of y-o-y decrease in the second Q for Momo's live broadcasting is going to be a little bit higher than what we saw in Q1. But on a sequential basis, live broadcasting is still going to see a pretty nice rebound from the first quarter. And for VAS, I think because of the recovery of traffic, the pressure around the revenue is going to ease up. At the same time, the team also has a plan to scale back on some of the very ARPPU-oriented operational efforts. But overall, we expect the y-o-y growth rate for VAS to be able to maintain the same level as we saw in Q1. Now for Tantan, our expectation is that we're going to see some acceleration. The y-o-y growth rate is going to see some acceleration from Q1's level. And the main driving factors would be the recovery of users as well as the contribution from new revenue project.

[口譯] 問題的第一部分是關於第二季的指導。該公司第二季的指引是基於我們所看到的一些近期發展軌跡以及管理階層對未來幾個月的假設。我們可以從幾個組件中看到它。首先，對於直播，根據我們在第二季迄今看到的一些趨勢，我們認為宏觀環境，特別是私人企業主的經濟狀況，將繼續對消費者情緒，特別是高收入群體的消費者情緒產生不利影響。我們納入第二季度指引的另一個因素是全國哀悼日期間暫停直播服務。這也將使總收入下降幾個百分點。因此，陌陌直播第二季的年減率將比第一季略高一些。但從環比來看，直播仍將從第一季開始出現相當不錯的反彈。對於增值業務，我認為由於流量的恢復，收入壓力將會減輕。同時，團隊也計劃縮減一些非常注重 ARPPU 的營運工作。但總體而言，我們預計增值服務的同比成長率將能夠維持與第一季相同的水平。現在對於探探來說，我們預計會看到一些加速。年比成長率將較第一季有所加快。而主要的驅動因素則是用戶的復甦以及新收入項目​​的貢獻。

(foreign language)

（外語）

[Interpreted] With regards to the revenue outlook for the second half of the year, currently, we believe that the uncertainties at the macro level are probably going to be lingering for some time. But actually, we are still pretty optimistic about the revenue outlook in the second half. And here are some driving factors that we're looking at. Firstly, for live broadcasting, we're going to continue to roll out product and operational efforts. We believe that these efforts will take effect on a progressive basis. For VAS, it's not as deeply monetized. So we do see plenty of headroom for further growth. At the same time, it is also going to be much more resilient in a tough macro environment. As we said on the four parts of this call, based on where we are with the chat room experience and also based on where we are with a number of new projects that we're currently running under VAS, we think that VAS revenue is going to continue to grow very rapidly as we head into the second half of the year. And thirdly, on Tantan, we have already been seeing a recovering trend in Tantan users. And as we said, the new revenue engine is also beginning to warm up. Now even based on the very initial testing data, we can see that there is indeed a huge monetization potential in Tantan's user base. Such potential will start to get released in the second half of the year in a graduated and methodical manner. So I guess, based on these driving factors, we are pretty confident that the revenues in the second half of the year is going to see a pretty meaningful growth from the first half of the year. Now here is Wang Yu for the second question on Tantan.

[解讀]關於下半年的營收前景，目前我們認為宏觀層面的不確定性可能還會持續一段時間。但實際上，我們對下半年的收入前景仍然相當樂觀。以下是我們正在研究的一些驅動因素。首先，對於直播，我們會繼續加大產品和營運。我們相信，這些努力將會逐步達到成效。對於加值服務 (VAS) 而言，其貨幣化程度還不夠深。因此，我們確實看到了進一步成長的巨大空間。同時，在嚴峻的宏觀環境下，它的韌性也將更強。正如我們在本次電話會議的四個部分中所說的那樣，基於我們在聊天室體驗方面的現狀，以及我們目前在增值服務 (VAS) 下運行的一些新項目的現狀，我們認為，隨著下半年的到來，增值服務收入將繼續快速增長。第三，在探探方面，我們已經看到探訪用戶數量呈現回升趨勢。正如我們所說，新的收入引擎也開始升溫。現在，即使基於最初的測試數據，我們也可以看到探探的用戶群確實存在巨大的獲利潛力。這種潛力將在下半年開始逐步、有條不紊地釋放。因此，我想，基於這些驅動因素，我們非常有信心，下半年的營收將比上半年實現相當顯著的成長。現在請王宇回答關於探探的第二個問題。

Okay. So regarding the live video test results, the test results have been very encouraging so far. Several things are worth sharing here. What matters most to us in the testing is that we don't want to see any new monetization features adversely affecting the dating ecosystem metrics. We've been testing live video for several months now. It's clear that it does not have any negative impact on dating. In fact, I'm happy to see several important dating metrics we follow having turning up and recently reached historical highs. For example, the amount of 2-way messages per user, not only per user, but total amount of 2-way messages is at its historical peak right now. The number of matches and the [percentage] (corrected by company after the call) of matched users. So if we do it the right way, it's possible that live video can even be positive to dating. Second, after we released more users into the testing group, the different operating and revenue metrics around live video services started to ramp up very rapidly. These metrics include the paying ratio, ARPPU, time spent, et cetera. The trajectories that we are seeing confirms our belief that Tantan's user base -- there are huge paying potentials to be released. What's more encouraging is that the current paying structure is extremely long-tail driven, which reflects the attributes of Tantan users. With regards to revenue outlook, we're still at a testing phase, and therefore, I do not want to be too prescriptive about the annual numbers. But based on the current trends, we believe that it can be a meaningful driver in the second half. Thanks.

好的。因此，就即時視訊測試結果而言，到目前為止，測試結果非常令人鼓舞。這裡有幾件事值得分享。在測試中對我們來說最重要的是，我們不希望看到任何新的貨幣化功能對約會生態系統指標產生不利影響。我們已經測試即時視訊好幾個月了。很明顯，它不會對約會產生任何負面影響。事實上，我很高興看到我們關注的幾個重要的約會指標出現上升，並且最近達到了歷史最高水準。例如，每個用戶的雙向訊息數量（不僅是每個用戶的數量），而且雙向訊息的總量現在都處於歷史高峰。匹配數量及匹配用戶的[百分比]（通話後公司已更正）。所以如果我們以正確的方式去做，視訊直播甚至可能對約會產生積極的影響。其次，在我們向測試組引入更多用戶後，圍繞直播視訊服務的各種營運和收入指標開始迅速上升。這些指標包括付費率、ARPPU、花費時間等等。我們看到的發展軌跡證實了我們的信念，即探探的用戶群有巨大的付費潛力有待釋放。更令人鼓舞的是，目前的付費結構極度依賴長尾驅動，這反映了探訪用戶的屬性。關於收入前景，我們仍處於測試階段，因此，我不想對年度數字做出過多的規定。但根據目前的趨勢，我們相信它可以成為下半年的一個有意義的推動力。謝謝。

Our next question is from the line of Tian Hou of T.H. Capital.

我們的下一個問題來自 T.H. 的 Tian Hoo。首都。

(foreign language)

（外語）

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Okay. Let me translate the first question on Momo Lite first. So far, we haven't run any large-scale promotional campaigns around the Lite version. But at this point, it has already built up a pretty sizable user base. However, as compared with the main version, the overall user base on the Momo Lite version is still relatively small. Our plan is that starting from the third quarter, we're going to step up the marketing efforts around the Momo Lite. Our expectation is that starting from the second half of the year, Momo Lite will start to make some meaningful contribution to the overall user base as the core application. With regards to the monetization potential, at this point, the Lite version only has membership and live broadcasting. But based on the live broadcasting data, the willingness to pay and the paying potential on Lite is not any weaker than that the users on the main app. But at this point, there are just not as many core paying experiences on the Lite as there are on the main versions because the focus of the team is still on improving user experience and building up the scale. I think we're going to start to open up more monetization opportunities at a pace that we deem fit. So that's for the Lite version.

[翻譯] 好的。我先翻譯一下關於Momo Lite的第一個問題。到目前為止，我們還沒有針對精簡版進行任何大規模的促銷活動。但目前，它已經建立了相當龐大的用戶群。不過，與主版本相比，陌陌Lite版本的整體用戶規模仍然較小。我們的計畫是從第三季開始，加大對陌陌Lite的行銷力度。我們的預期是，從下半年開始，陌陌精簡版將作為核心應用開始對整體用戶群做出一些有意義的貢獻。就貨幣化潛力而言，目前精簡版僅具備會員資格和直播。但從直播數據來看，Lite用戶的付費意願和付費潛力並不弱於主App用戶。但目前，精簡版上的核心付費體驗不如主版本多，因為團隊的重點仍放在改善使用者體驗和擴大規模。我認為我們將以我們認為合適的速度開始開放更多的貨幣化機會。這就是精簡版。

Regarding the second question on the e-commerce-related live broadcasting, as management of the company, we've actually noted the rising trends and the rising popularity of the e-commerce-related live broadcasting of some of the major e-commerce platforms. And this is indeed one of the areas that we have been closely monitoring. And we are also pretty actively studying and exploring some of the potential opportunities that we can potentially seize. But at this point, we are not at the stage to share any deeper information publicly yet, maybe later. So that's the answer to both of the questions.

關於第二個問題，關於電商直播，作為公司管理層，我們實際上已經注意到一些主要電商平台的電商直播的趨勢和受歡迎程度正在上升。這確實是我們一直密切關注的領域之一。我們也正在積極研究和探索一些我們可能抓住的潛在機會。但目前，我們還沒有到公開分享任何更深層資訊的階段，也許以後再說。這就是兩個問題的答案。

Operator, I think we're ready to take one last person and then ready to close given time.

接線員，我想我們已經準備好接走最後一名乘客，然後準備在規定時間內關閉。

We have our next -- our last question from the line of Daniel Chen, JPMorgan.

我們的下一個問題，也是最後一個問題，來自摩根大通的 Daniel Chen。

(foreign language) I will translate myself. My first question is on Tantan. So we do see that on the dating market many other companies have launched kind of various dating products such as Soul and Yidui and Tencent also launched some new products. So could management comment on the competitive landscape and how Tantan is going to cope with the competition? Second question is on the margin. Could Jonathan provide some update on the second quarter and like full quarter margin trend and also the trend of the key cost items?

（外語）我自己來翻譯。我的第一個問題是關於探探的。因此，我們確實看到在約會市場上許多其他公司推出了各種各樣的約會產品，例如 Soul 和 Yidui，騰訊也推出了一些新產品。那麼管理階層能否評論一下競爭格局以及探探將如何應對競爭？第二個問題與邊際有關。喬納森能否提供一些有關第二季度和整個季度利潤趨勢以及主要成本項目趨勢的最新消息？

Okay. So regarding competition and competitors, like you mentioned, Soul and Yidui are probably the biggest ones other than Momo and Tantan at the moment. But as far as we know, they are focused on very different areas, while we are committed to helping users build romantic relationships. And as I've mentioned earlier, enriching the services and features is very critical in our user growth strategy. So we will definitely be considering adding more features in order to further strengthening our product offering. Thanks.

好的。所以關於競爭和競爭對手，就像你提到的，目前除了陌陌和探探之外，Soul 和 Yidui 可能是最大的競爭對手。但據我們所知，他們關注的領域非常不同，我們致力於幫助用戶建立戀愛關係。正如我之前提到的，豐富的服務和功能對於我們的用戶成長策略至關重要。因此，我們肯定會考慮添加更多功能，以進一步增強我們的產品供應。謝謝。

This is Jonathan. Let me address your margin questions. Let me answer that in 2 aspects. For core Momo, actually, as Tang Yan mentioned, based on the sequential revenue growth, we are very confident that we're going to achieve the revenue sequential growth annual target. And at the same time, we're going to maintain discipline in managing our costs and expenses to help us to achieve annual non-GAAP operating margin at 30%, as I discussed last earning conference call. So that's still our target. And also, our operating gross margin will be relatively stable. The only variable factor is the payout. So we do see a couple of percentage pressure based on the higher percent of the revenue contributed by the agencies down the road. And also, we allocate certain budget for promotional events. And then we're going to, on a rolling basis, manage our selling and marketing expenses. The rest of the operating expenses, R&D and G&A, are relatively fixed in nature. As the revenue continues to grow, we will see some operating leverage. So that's for core Momo.

這是喬納森。讓我來解答一下你的保證金問題。我從兩個方面來回答。對於核心的陌陌，實際上正如唐岩所提到的，基於連續的收入成長，我們非常有信心實現收入連續成長的年度目標。同時，我們將嚴格管理成本和費用，以幫助我們實現 30% 的年度非 GAAP 營業利潤率，正如我在上次收益電話會議上討論的那樣。所以這仍然是我們的目標。而我們的營業毛利率也會相對穩定。唯一可變的因素是支出。因此，我們確實看到了一些百分比的壓力，因為未來代理商貢獻的收入百分比會更高。此外，我們也為促銷活動分配了一定的預算。然後，我們將以滾動的方式管理我們的銷售和行銷費用。其餘營運費用（研發費用和一般行政費用）本質上是相對固定的。隨著收入的持續成長，我們將看到一些經營槓桿。這就是 Momo 的核心。

For Tantan, we do see a potential for faster growth on Tantan's revenue. And however, we believe at this stage Tantan's priority is still focusing on achieving a user base recovery and then acceleration of the user base growth. So they would like to reinvest some of the additional profits generated by the new revenue driver into the selling and marketing to support that initiative and then for the rest will help to further accelerate the deceleration on net loss. So for the full year, the net loss on Tantan will come down sequentially on a quarterly basis.

對於探探，我們確實看到了探探收入更快成長的潛力。但我們認為現階段探探的首要任務仍是實現用戶群的恢復，並加速用戶群的成長。因此，他們希望將新收入來源產生的部分額外利潤重新投資於銷售和行銷，以支持該計劃，其餘部分將有助於進一步加速淨虧損的減速。因此，從全年來看，探探的淨虧損將按季度環比下降。

Great. Operator, we're ready to close.

偉大的。接線員，我們準備關閉了。

Thank you. Ladies and gentlemen, that concludes the conference for today, and thank you for participating. You may now all disconnect.

謝謝。女士們、先生們，今天的會議到此結束，感謝大家的參加。你們現在都可以斷開連結了。

Thank you. Thank you for joining us. We'll see you next quarter. Goodbye.

謝謝。感謝您加入我們。我們將於下個季度與您見面。再見。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本記錄中標記為 [已翻譯] 的部分由現場翻譯人員朗讀。 ]