Aurora Mobile Limited Q2 FY2025 earnings call

• Achieved first ever quarterly GAAP net profit. - Q2 revenue RMB 89.9 million, higher end of guidance; EngageLab recognized revenue grew 67% YOY and 24% QOQ. - Financial Risk Management revenue grew 27% YOY. - Gross profit grew 13% YOY, highest in past 10 quarters; gross margin improved QOQ. - Challenged and improved operational efficiency, reduced headcount. - EngageLab continues global expansion with 25% sequential customer number growth and 4 new countries added in Q2. - Vertical Application's Financial Risk Management had 48% customer number growth.

Total Q2 revenue was RMB 89.9 million, with Developer Services contributing significantly. EngageLab recognized revenue grew 67% year-over-year and 24% quarter-over-quarter, with total contract value in Q2 at RMB 11.2 million and customer number at 1,058 (25% sequential increase). Financial Risk Management revenue grew 27% year-over-year. Vertical Application had overall revenue up 10% year-over-year but down 4% quarter-over-quarter; Financial Risk Management within it grew 27% year-over-year but down 1% quarter-over-quarter; Market Intelligence revenue down 38% year-over-year and 23% quarter-over-quarter.

• Q3 revenue guidance range: RMB 88 million to RMB 91 million, representing 11% to 15% year-over-year growth compared to Q3 2024.

Q: Congrats on the great first GAAP net profit in the history. What were the factors behind the great results in Q2 and are you expecting quarterly GAAP net profit to be along going forward?

A: This quarter's breakthrough performance reflects collaborative effort of employees, forward-looking strategy, strong push of internal and external dual engine. Overseas flagship product EngageLab accelerating expansion, AI agent platform GPTBot.ai driving innovation, domestic market also performing well. Regarding future quarterly GAAP net profit, driving forces rooted in long-term accumulation of capability building, strategic implementation, etc.

Q: Congrats to the management for delivering outstanding results. Share more on EngageLab, including current and future states.

A: EngageLab is highly promising, serving customers in over 45 countries/regions, total signed contract amount RMB 113 million, year-on-year revenue growth 67%. Looking ahead, expanding global market footprint, establishing localized presence in regions like Hong Kong, Singapore, Malaysia, solidifying services in Thailand and Japan, continuing to penetrate market demand across industries and regions.