Amber International Holding Ltd Q2 FY2022 earnings call

• The second quarter was impacted by COVID-19 lockdowns in major cities where iClick operates, along with conservative advertising spending.
• The company shifted away from lower margin Marketing Solutions and redirected resources to Enterprise Solutions, which saw 3% year-over-year growth.
• Introduced new product Arohar app integrating AI, AR, and avatar for metaverse live streaming.
• Partnered with HIZERO to use marketing automation product iParllay for advertising solutions.
• Received awards like Digital Marketing Influencer Technology Company of the Year, highlighting industry recognition.

For the second quarter of 2022, Marketing Solutions revenue decreased by 62% year-over-year to $24.3 million, contributing approximately 63.8% of the total revenue of $38.1 million. Enterprise Solutions revenue grew by 3% year-over-year to $13.8 million, accounting for approximately 36.2% of total revenue.

• Management remains optimistic about long-term China economic recovery and the digitalization market opportunity.
• Expect better performance once market sentiment and client operations recover.
• Healthy financial position allows further investment in Enterprise Solutions.

• Impact of COVID-19 resurgence and macroeconomic uncertainties on advertising spending.
• Goodwill impairment of $24.9 million due to scaling down Marketing Solutions.
• Dependence on future pandemic control measures and industrial regulations for business recovery.

Q: Colin Liu asked about the progress of recovery in July and August.

A: Jian Tang responded that over the past two months, some recovery in ES and MS businesses has been seen. ES demand for digitalization remains but was postponed, and MS customer demand is recovering but takes time.

Q: Nelson Cheung asked about Marketing Solutions verticals and Enterprise Solutions client base.

A: Jian Tang said Marketing Solutions has scaled down competitive industries like gaming and seen recovery in consumables; David Zhang mentioned ES had 410 customers in Q2, with mild growth from Q1, and customers delayed payments during lockdown but are resuming.

Q: Thomas Chong asked about Enterprise Solutions strategy and cooperation with Baozun.

A: Jian Tang discussed ES strategy of redistributing resources, SaaS+X model advantages, and competitive landscape; David added on ES customer base and ARPU; Jian Tang also talked about cooperation with Baozun having explorations but no big revenues yet.