Sound Group Inc (SOGP) 2020 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for LIZHI Inc.'s Fourth Quarter and Fiscal year 2020 Earnings conference call. At this time, all participants are in listen-only mode.

After management's remarks, there will be a question-and-answer session. Today's conference call is being recorded. I'll now turn the call over to your host, Effy Kang, Head of Capital Markets for the company. Please go ahead.

Thank you very much. Hello everyone and welcome to LIZHI Inc.'s fourth quarter and fiscal year 2020 earnings conference call. We released our financial and operating results via newswire services earlier today and they are available online. Participants on today's call will include our Founder and CEO, Mr. Marco Lai and our Acting CFO, Ms. Chengfang Lu.

Management will begin with prepared remarks and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. In addition, an Earnings Highlights presentation and a webcast replay of this conference call will be available on the IR section of our website at ir.lizhi.fm.

Before we continue, please note that today's discussions will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These statements typically contain words, such as may, will, expect, target, estimate, intend, believe, potential, continue, or other similar expressions.

Forward-looking statements involve inherent risks and uncertainties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, many of which factors are beyond our control.

The Company, its affiliates, advisors, representatives, and underwriters do not undertake any obligation to update this forward-looking information, except as required under the applicable law.

Please note that LIZHI's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures.

LIZHI's press release contains a reconciliation of unaudited non-GAAP measures to unaudited GAAP measures. I will now turn the call over to our Founder and CEO, Mr. Marco Lai. Please go ahead.

(Foreign Language).

Hello everyone. Thank you for joining us today. First of all, on behalf of LIZHI, I would like to express my sincere appreciation to all of our shareholders and stakeholders for their support over the past year.

(Foreign Language).

Despite unprecedented challenges and extraordinary levels of uncertainty across the globe in the past year, 2020 was a landmark year for LIZHI. The company was successfully listed on the NASDAQ Global Market.

In addition, we strengthened our leading position in the audio industry by building up a comprehensive audio-centric ecosystem consisting of audio-based social networks, podcast content portfolios and audio communities.

(Foreign Language).

In 2020, we made breakthrough progress in the global online audio market and our user base continued to expand. In the fourth quarter, our average mobile MAUs increased 13% year-over-year to a new high of 58.4 million.

In terms of commercialization, our fourth quarter revenue grew 16% sequentially to RMB 420 million, exceeding the top end of our guidance range. In this quarter, we once again posted positive non-GAAP net profit.

(Foreign Language).

I would now like to share more information on our business operations, specifically on how we pivot to a comprehensive audio-based ecosystem that integrates social network, content and community to support our long-term development.

(Foreign Language).

First of all, with the rising popularity in audio-based social networking around the world, we have made breakthrough progress in broadening our global footprint.

In the summer of 2020, we began to explore audio market opportunities in English-speaking countries and then introduced our Tiya App to the U.S. market in October 2020.

Shortly after its launch in the U.S, market, Tiya soared to the top four in US social networking apps rank. Currently, Tiya's users spread over 200 countries, ranking among the top 10 social networking apps in 70 countries at peak time.

Tiya is able to provide quick user matching and real-time online audio to address users' needs for social networking. With powerful matching system driven by AI technologies, Tiya can accurately match users within three seconds, thus bringing users together and allowing them to have real-time social interactions based on various topics and scenarios.

Tiya enables users to virtually meet friends with same interests, entertain, chat online and share their daily lives. We have a clear and unique product proposition for Tiya, which is "play with friends", and emphasizing companionship, spending time with friends, and having fun, which effectively differentiates it from other audio products.

Due to superior experiences that audio products can provide in terms of privacy protection, real-time interaction and multi-scenario accessibility, we believe that more social networking activities may be shifted from offline to online through audio.

In the future, we will continue to expand usage scenarios for Tiya, enrich its product features and further penetrate global market. We expect Tiya to become a critical pillar of our audio product portfolios and enable more users across the globe to connect with each other through voice.

(Foreign Language).

In terms of content efforts, building on our unique UGC community, we continued to enrich and expand our content offerings by motivating users to create content.

During the fourth quarter of 2020, the number of new audio content uploaded to our platform reached a new record high of about 20 million. As of December 31 2020, the cumulative number of audio content reached 254 million, representing a 43% year-over-year increase.

In addition, we further stepped our efforts in our cooperation with celebrities, spanning a wide array of genres, such as actors or actresses, celebrities from variety shows, singers and writers, in order to increase high-quality and interesting content offerings, boosting user engagement and presenting strong appeal to a broad fan base.

(Foreign Language).

To bolster our strategy in the premium podcast space, we have rolled out the brand-new vertical content platform, LIZHI Podcast, in January 2021. We believe that the podcasts are unique as a content medium.

In contrast to audio books and pay-for-knowledge platforms, podcasts are relaxing and intriguing and have vast growth potential. LIZHI Podcast features premium curated content from LIZHI App's massive content library built over the years.

In addition, in order to deliver a diverse and high-quality podcast content, it also collaborates with various industry elites to offer exclusive podcasts and motivates celebrities from all walks of life to cultivate prestigious podcast IP brands.

We hope that, through LIZHI Podcast, we will be able to build a larger podcast ecosystem and appeal to a broader audience base, such as white collars and more young and middled-aged users.

Powered by AI-driven personalized recommendation engine, LIZHI Podcast's users are able to enjoy superior and unique podcast listening experiences. Additionally, we have introduced branded podcasts on LIZHI Podcast as a new way of helping companies to increase brand awareness.

For instance, in February this year, we partnered with Pop Mart, a leading pop culture and entertainment company in China, to create the first branded podcast. We plan to cooperate with more companies and brands in future to explore the market opportunities brought by this new medium.

(Foreign Language).

In our pursuit of giving full play to the advantages of audio products across multiple devices, providing users with superior audio experiences and meeting users' listening needs in diverse usage scenarios, we are forging ahead with encouraging progress in the in-car audio market.

With our compelling in-car audio products, we expect to reach a broader user base. We believe that the in-car scenario will become an important usage scenario for audio products in the future.

In this spirit, we established the collaboration with multiple leading automobile companies in China, including XPeng Motors, GAC and BYD. We also launched LIZHI's audio product on Huawei HMS for car, a smart in-car cloud service solution, enabling more users to enjoy personalized audio experiences while driving.

Meanwhile, we enabled shared accounts between users' in-car app and mobile app so that users can seamlessly switch between different devices and achieve better user experiences.

We believe that our rich content offerings, operating experiences accumulated in the past and industry-leading technologies can further enhance our competitive advantages in the podcast market.

(Foreign Language).

Turning to our community ecosystem, we have been actively working to uplift the vibrancy of our audio community on LIZHI App, especially to increase user interactions and connections surrounding hot social topics.

For example, at the end of 2020, we hosted an online event called "2020, Fast Forward with One Click", in which we invited celebrities to share their achievements in 2020 and their plans for 2021 through audio.

The event's exposure on Weibo reached 200 million times and related podcasts were played over 1 million times on our platform. In addition, we hosted various community events to increase user engagement.

Our annual LIZHI Voice Gala, held at the end of 2020, gathered around 130,000 podcasters and live streaming hosts and showcased approximately 160,000 podcasts and 320,000 live streaming audio sessions.

LIZHI also selected and awarded exceptional content creators during the gala. Thanks to the effective operation of the community ecosystem, user engagement on the platform continued to improve in the fourth quarter, with the average monthly interactions reaching a new record high of 3.3 billion times during the period.

Furthermore, we continued to utilize various supportive programs, such as Echo Plan, to further discover and cultivate outstanding content creators and help them to grow.

The Echo Plan Version 2.0, launched last year, attracted several hundred high-quality podcasters to our platform. Going forward, we will remain dedicated to enriching our community ecosystem, to provide users with a vibrant audio community and satisfy users' needs for audio creation, content sharing, communication and interaction.

(Foreign Language).

In summary, what we achieved in 2020 has provided us with invaluable experiences and laid out a solid foundation for our future growth. In 2021, we will remain committed to creating more connections among people around the world and offering them more companionship through our online audio products, as we aim to further increase our brand awareness and reach a wider audience base all over the world.

I am confident in LIZHI's development prospects. I believe that, with our unique audio-based social networking ecosystem, rich audio content offerings and highly engaged audio community, we are well positioned to capture the huge potential in the online audio sector, fulfill our visions with continuous audio-centric innovations and make LIZHI a leading audio platform globally.

(Foreign Language).

Thanks, everyone. With that, I will now turn the call over to our Acting CFO, Ms. Chengfang Lu, who will discuss our financial results in more details.

Okay, thank you, Marco. And hello, everyone. First, we're very pleased with our better-than-expected top-line performance in the fourth quarter, which underscored our continued growth trajectory.

While we grew our top-line, our profitability also improved with a year-over-year increase in gross margin of 1,070 basis points and positive non-GAAP net income.

In the fourth quarter, our total net revenues increased by 15% to RMB 420.3 million from the same period of 2019. Currently, we generate our revenue primarily from our audio entertainment business, which contributed RMB 414.7 million to net revenues in fourth quarter of 2020 and represented year-over-year growth of 15%.

The increase was mainly due to the increase in the per capita user spending on our interactive audio social entertainment products during the period, primarily driven by our 2020 Annual Voice Gala, held in the fourth quarter of 2020.

Additionally, podcast, advertising and other revenues grew by 12% year-over-year to RMB 5.5 million in the fourth quarter of 2020. The increase was mainly attributable to the increase in the number of advertisers.

Cost of revenues was RMB 301.3 million in the fourth quarter of 2020, compared to RMB 300.8 million in the fourth quarter of 2019. The year-over-year increase was mainly due to the increase of salary and welfare benefits, payment handling costs and bandwidth costs as the company's business grew, as well as the recognition of share-based compensation expenses upon and after the company's initial public offering.

This was partially offset by a decrease in the revenue share fees because the incentive program for content creators we launched in the third quarter of 2019 has been scaled down since February 2020.

Gross profit was RMB 119.0 million in the fourth quarter of 2020, representing an increase of 85% from RMB 64.4 million in the fourth quarter of 2019 an increase of 31% for RMB 90.6 million in the third quarter of 2020.

Non-GAAP gross profit was RMB 122.6 million in the fourth quarter of 2020, representing an increase of 90% year-over-year and an increase of 33% quarter-over-quarter.

Gross margin increased by 300 basis points from the third quarter of 2020, reaching 28% in the fourth quarter of 2020. Non-GAAP gross margin was 29% in the fourth quarter of 2020, compared to 25% in the third quarter of 2020.

Operating expenses increased by 30% year-over-year and 25% quarter-over-quarter to RMB 125.4 million in the fourth quarter of 2020.

Research and development expenses were RMB56.4 million in the fourth quarter of 2020, representing a year-over-year increase of 8%.

The increase was mainly due to our increasing number of research and development employees, as well as the share-based compensation expenses recognized upon and after our IPO in January 2020.

Selling and marketing expenses were RMB 48.7 million in the fourth quarter of 2020, representing an increase of 69% from RMB 28.8 million in the fourth quarter of 2019.

The increase was primarily due to the increased promotion and marketing expenses related to our branding and promotion activities for our products and brand name in fourth quarter of 2020.

General and administrative expenses were RMB 20.3 million in the fourth quarter of 2020, compared to RMB 15.1 million in the fourth quarter of 2019.

The increase was mainly due to the increased expenses in salary and welfare benefits, professional services and recognition of share-based compensation expenses upon and after our IPO.

Operating loss was RMB 6.4 million in the fourth quarter of 2020, narrowed down by 80% year-over-year and 33% quarter-over-quarter. Non-GAAP operating income was RMB 4.9 million in the fourth quarter of 2020, compared to non-GAAP operating loss of RMB 31.7 million and RMB 2.9 million in the fourth quarter of 2019 and third quarter of 2020, respectively.

Net loss was RMB 5.8 million in the fourth quarter of 2020, narrowed down by 80% year-over-year and 4% quarter-over-quarter. Non-GAAP net income was RMB 5.4 million, compared to non-GAAP net loss of RMB 29 million in the fourth quarter of 2019 and non-GAAP net income of RMB 0.6 million in the third quarter of 2020, respectively.

Basic and diluted net loss per ADS were RMB 0.13 in the fourth quarter of 2020, compared to RMB 23.29 in the fourth quarter of 2019 and RMB 0.13 in the third quarter of 2020, respectively.

Non-GAAP basic and diluted net income per ADS were RMB 0.12, compared to non-GAAP basic and diluted net loss of RMB 2.23 per ADS in the fourth quarter of 2019 and non-GAAP basic and diluted net income per ADS of RMB 0.01 million in the third quarter of 2020.

The difference between GAAP and non-GAAP EPS is mainly due to adjustments to the accretion of preferred share redemption values and share-based compensation.

As of December 31, 2020, we had cash and cash equivalents restrict cash, as well as short-term investments of RMB 392.2 million.

Overall, we achieved solid results in the fourth quarter. And we continue to be confident about the growth potential of the online audio industry. With 2021 well underway, we endeavor to deliver long-term value to our shareholders.

Now, this concludes all of our prepared remarks today and we will now open the call to questions. Operator, please go ahead.

Thank you. (Operator Instructions). Your first question comes from the line of Vicky Wei from Citi. Please ask the question.

(Foreign Language). Good evening, management. Thanks for taking my questions and congratulation on the strong results. So, would management provide some color about the strategy refocus of LIZHI in 2021 and also some update about the forecast monetization progress? Thank you.

(Foreign Language).

Okay. I'll take the first question. I'll translate for Marco. So, our strategic to the focus in 2021 is mainly about the globalization and further expand our audio-centered ecosystem.

We are committed to enabling people to have more companionship with each other through the online audio connection and we hope that we can make our services and brand accepted by global users in 2021. Our audio ecosystem mainly comprises three parts, which is audio-based on social network, audio content portfolios and audio communities.

(Foreign Language).

In terms of audio based social network, as mentioned earlier, our product, Tiya, under the globalization strategy has gained wide popularity since its launch in the U.S. market last year.

And they have been keeping a good ranking record among the top social networking apps until now. I'm actually very pleased that our overseas product has gained meaningful results globally, which further reflects the charm of the audio in the global market.

(Foreign Language).

Tiya is the social product based on diverse scenarios. So, this year, we will continue to expand the diversified usage scenarios of Tiya in order to determine more offline social scenes, which audio is suitable for to online.

So, in the meantime, we will continue improving our product to expand user base across the globe while adopting innovation features to deepen user relationships on Tiya and create a long-term and stable closed loop of user growth.

(Foreign Language).

For the audio content side in China, we will use our new product, LIZHI Podcast, to focus on premium podcasts of content and create exclusive content offerings through cooperation with some celebrities and to further increase the exposure of our brand and attract users of different ages.

We hope that, in the future, we can build a more mature podcast ecosystem in China, in which we can help podcasters to generate income through diversified business models and enable more companies and brands to speak out with branded podcasts.

(Foreign Language).

In the New Year, we will continue to increase the vitality of the community. By enhancing our functions in content creation, sharing and interaction as well as innovative promotional campaigns, we hope to draw more young people to join the community, where they can showcase their talents through audio content creations, and gain more companionship and recognition through audio interaction.

We will also continue to empower content creators to enhance the high quality UGC content offerings while further establishing a virtuous community ecosystem with vibrant and highly interactive community atmosphere.

(Foreign Language).

Besides the three-point dimensions, we will continue to actively explore collaboration in multiple terminals. Through taking full advantages of audio product, we are dedicating to enhance user experiences and then reach a broader user base.

In summary, in 2021, we will strengthen our globalization strategy and continue to develop the audio ecosystem from three perspectives, including social networking, content, and community. And this concludes Marco's answer for the first question.

Yes.

Okay. Let me take the second question about our progress on podcast monetization. In fact, I believe podcasts has a broad audience base, not only abroad, but also in China.

And we have noticed that users' willingness to pay for high quality audio content is gradually increasing. So, currently, on this end, we have multiple monetization models around audio content, such as fan-based membership program, paid audio contents and advertising.

Besides, according to the statistics regarding the audio content on LIZHI App, we found the purchaser rate of our podcast content is at a relatively ideal level, which also makes us believe that the commercialization prospectus of podcast content are promising.

As mentioned before, to expand our new user base, we've launched the brand-new product named LIZHI Podcast this January as an extension of our current content offerings.

We also hope to use the podcast to attract more users from different age groups and background, including white-collar workers as well as young and middle aged users in the first-and second-tier cities.

So, as have to break down the barriers among our different user groups and build a larger podcast ecosystem. But, at this stage, our development focus of LIZHI Podcast is mainly to explore more diversified and higher quality of content, improve the penetration rate among the target users and expand our grand influence.

In the future, LIZHI podcasts will have many directions to explore monetization opportunities, including the subscription-based content offerings and advertising.

Overall, at this stage, podcast accounted for a relatively small proportion of our total revenue. But we found that, in this quarter, the app in the audio content picture increased by about 40% compared with last quarter. And we also believe that podcast has great potential in the monetization in the future. Thank you.

[Absolutely].

Thank you.

Thank you.

Thank you. Our next question comes from Vincent Yu from Needham & Company. Please ask your question.

Thank you very much for the management to take my question. I have three questions. The first question is about the celebrities and the podcast.

We saw LIZHI has both the celebrity as exclusive content creator for LIZHI Podcast. Can you share with us our future strategy on exclusive content and is there any data points you can share with us on the new podcast app?

My second question is about - how big is that user overlap - is there between LIZHI's main app and LIZHI's podcast app - podcast app? And what is our strategy regarding requiring new users for the podcast app?

My third question is for the live streaming. For the live streaming business, the management see an increase in competition for in other audio-based platforms during the quarter. Any comments on the competitive landscape? (Foreign Language). Thank you.

(Foreign Language).

So, the first question is about exclusive content. So, the sources of our content are diverse and the formats of our exclusive services are extensive.

Including, but not limited to exclusive content, exclusive content creators and exclusive podcast playlists. So, with a focus on exclusive podcasters, which is podcast creators, LIZHI Podcast has signed exclusive podcast cooperation contracts not only with celebrities but also with some industry leaders and famous KOLs in various fields.

On the other hand, we also selected high quality podcasts from the massive UGC content library of LIZHI App. And the synchronized these podcast content on LIZHI Podcast.

It means that we have good content creators published on premium content on LIZHI app. They are making also synchronized these podcast content to LIZHI Podcast.

(Foreign Language).

In addition, we attracted exclusive content creators and enrich our exclusive content portfolios through various support for the content creators. So, we have built a creator center to provide in-depth services for creators and assist that their content creation with diversified activities.

We also offer traffic support for our content creators and help outstanding mid-to-long tail content creators to grow rapidly on the past platform through our AI-enabled content recommendation and distribution system, which enables us to further lure exclusive content creators to sign up with us and reach our content portfolios.

(Foreign Language).

In general, LIZHI Podcast has been launched for a short time and is still in the early stage of the development currently. We are also working on the product optimization.

And I believe that, in the future, there will be exclusive kinds of content will appear such as podcast and we will share more data in the progress with you in the future.

(Foreign Language).

So, the second question is about the user overlap. Currently, the user's accounts on LIZHI App and LIZHI Podcast has been connected. So, in the early stage, lots of high quality content on LIZHI Podcast is curated from the original content portfolios of LIZHI App. Drawing the traffic from LIZHI App's existing user base to LIZHI Podcast is also one of our key ways to acquire new users at the early stage.

(Foreign Language).

So, why we have launched the LIZHI Podcast - the main reason is that our position on the LIZHI Podcast is quite different from LIZHI App. LIZHI App user portraits are mostly young people in small towns, such as young people in third or below tier cities.

But LIZHI Podcast aims to expand user base by reaching young and middle-aged users in higher-tier cities. In combination with targeted marketing campaigns and an integration into multiple devices, such as in-car systems, our high-quality podcast content can be accessible to more diverse user group.

(Foreign Language).

On the other hand, we have signed exclusive contracts with lots of industry leaders and KOLs and to attract new users to LIZHI Podcast through their influences in the industry.

From the perspective of content operations, I believe our experiences that accumulated in the past allow us to have certain advantages in user conversion. And we have also attracted a large number of podcast fans by increasing the new app's exposure in the process of space.

In the long-term, we are committed to building a larger podcast ecosystem in giving the full play to the advantages of podcast applicability in multi-scenarios. We hope to promote podcast as a brand-new content medium and to reach a broader user base.

(Foreign Language).

The third question is about the competition in the live-streaming business. So, now we see that in the online audio space, more market players have entered into the audio entertainment sector from different angles, along with an increase in the online audio penetration rate. I believe the audio entertainment field has great market growth potential in the long term.

(Foreign Language).

Although the competition is fierce in the industry, I think there is a big difference between a UGC audio community ecosystem that we have been cultivating for a long time and a pure live-streaming model.

Based on our performance in various aspects in the fourth quarter, our platform still has strong competitive advantages. In terms of the revenue, we achieved a substantial increase in our fourth quarter revenue, which exceeding the top end of the management guidance range.

In terms of community operations, we further boosted user engagement on the platform. Through lots of innovative promotional campaigns and our newly launched diversified operation activities in the fourth quarter effectively attracted more users to the platform to participate and interact.

For example, in the fourth quarter, we launched a talk show-style live debate program, which is quite popular currently. And leading to a consistent production of high-quality content by connecting various hosts, and ultimately attracting a large number of users to join our platform and interact.

(Foreign Language).

In addition, we also cooperated with lots of celebrities. We have launched a number of themed live shows surrounding the trendy topics. Through a more interactive feature such as live streaming.

And we have engaged more users to interact. Despite that, we have also attracted considerable amounts of content creators to join live-streaming sessions through our annual events, like the LIZHI Voice Gala.

So, these activities not only increased user engagement and activeness but also attracted and cultivated more content creators and further enhancing our competitiveness in the audio entertainment sector.

(Foreign Language).

Due to our various support for creators, we continue to increase the number of creators on our platform. So, these creators not only enriched our UGC content libraries, but also brought in more creative and interactive contents on the audio entertainment side.

This sustained a high dynamic and interactive atmosphere of our audio community on LIZHI App and have created a positive spiral where more and more users are attracted and engaged.

Meanwhile, we have been reaching our audio product portfolios, broadening our audio ecosystem from multiple aspects, including the social networking content and community. We want to further enhance our overall competitiveness.

(Foreign Language). Thank you.

Yes. This concludes our three answers. Thank you.

Thank you. Our next question comes from Ivy Liu from Credit Suisse. Please ask your question.

(Foreign Language). I'll quickly translate myself. Could management share some updated view regarding competition in long audio content space and how LIZHI is now positioned? Thank you.

Thank you. (Foreign Language).

Now, this question about competition in the long audio content space. So, we are seeing that there are new competitors entering into the long-form audio industry.

Generally speaking, the long-form audio sector mainly included audio books and radio dramas. In fact, in the audio market, there is an increasing number of market players entering into the long-form audio factor.

We have also seen that many other companies participate in this sector, mainly through investing in IP, launching some products, such as audio books. So, the sector development primarily leads to copyright competition.

Users tend to follow the content and their loyalty to any specific platform is relatively low. As a result, big platforms highly rely on various sources of copyrighted content.

(Foreign Language).

Our positioning enables us to have a competitive advantage in terms of differentiated strategy. On the long form audio side, through LIZHI App, we have incubated a massive user content library.

So, the content offerings are extensive, novel and diverse on the LIZHI App. It doesn't rely on the copyright investment supported by the engaging content users are more interactive. And creators and users can establish solid connection between each other. Our community has also further field a continued growth of the content creation.

(Foreign Language).

On the other hand, we have further differentiated our content offerings based on our massive UGC audio content portfolios and an exclusive podcast produced in cooperation with some users, industry leaders and celebrities.

We believe that the podcast market will have a bright future. Unlike other audiobooks or pay-for-knowledge platforms, podcast doesn't rely on the copyright and podcasts are nothing interesting and focus more on often opinion expressions.

In fact, the podcast market has already been relatively more mature in United States and other overseas market. We believe that it still has good development potential in China.

(Foreign Language).

In addition, we highly appreciate the applicability of podcasts on multiple devices or terminals. As mentioned earlier, along with the rapid development of 5G and IoT, podcasts can be used in multiple scenarios, such as smart wearable devices, smart home devices and in-car scenarios.

The demand for podcasts is actually growing. Through cooperation with many leading on mobile companies, we hope to make the distinctive podcast content, accessible on more devices and terminals, and further expand our user base.

Hello. Thank you.

This concludes our answer for the question. Thank you.

Thank you. And that's all the time we have for questions today. I'll turn the call back to the company for closing remarks.

Thank you once again for joining us today. If you have further questions, please feel free to contact LIZHI's investor relations through the contact information provided on our website at ir.lizhi.fm or the Piacente Group Investor Relations. Thank you.

Thank you. This concludes the conference call. You may now disconnect your line. Thank you.