Ladies and gentlemen, thank you for standing by and welcome to Aurora Mobile Foot Quartile 2026 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. And I'd like to hand the conference over to your host today, Christian Arnel. Thank you. Please go ahead, sir.

Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed earlier today and is available on the IR website at ir.aurora-mobile.com. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer Mr. Shan-Nen Bong, Chief Financial Officer, and Mr. Guangyan Chen, General Manager. Following their prepared remarks, they will be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions, which are difficult to predict and 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 or factors are included in the company's filings with the US SEC. 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 applicable law. With that, I'd now like to turn the conference call over to Mr. Luo. Please go ahead.

Thanks, Christian. Hi, everyone. Welcome to Aurora Mobile's 2026 Third Quarter Earnings Call. Before I comment on our Q3 results, I would like to remind everyone that we have uploaded the quarterly earnings tax on our IR website. You may refer to the tax as we proceed with the call today. I am very pleased with the very strong quarter that we have delivered. The suitable description that I would give to the third quarter of 2026 is a quarter of broad-based record performance. Let me share more with you all on the great quarter we have had. Our achievements in the third quarter of 2026 are as follows. Thank you very much. Weidong Luo, Qing Zhang Operationally, we brought in net cash inflow of RMB 6.6 million this quarter. This quarter marks an important inflection point for Aurora, validating years of disciplined transformation into a pure SaaS business. Our team's execution has unlocked a new, higher revenue run rate, anchored by our foundational developer subscription business and complemented by rapid traction in Engagelab, our global flagship offering. Growth is no longer concentrated in a single stream. We are building two powerful recurring revenue pillars with improving growth profitability. Equally meaningful is our consistent track record of profitability. Six straight quarters of US GAAP net profit, with net profit at a post-transition high, demonstrates that our SaaS operating model is self-sustaining. These results are not episodic wins. They reflect rising customer adoption, strong retention dynamics, Our total Q3 group revenue reached RMB 106.5 million, representing a strong 17% year-over-year growth. We now have two consecutive quarters of revenue north of RMB 100 million. Not only that, this RMB 106.5 million revenue also marks the The highest revenue level since we transitioned to PureSat model. This is very encouraging and a big thank you to the teams who made this possible. A few key messages that I think are important that I share with you all today. Firstly, two consecutive quarters of revenue exceeding RMB 100 million, with Q3 group revenue of RMB 106.5 million up 17% year over year. Establishes a sustained higher revenue run rate and represent our peak revenue levels since completing the pure SaaS strategic transformation. Secondly, our growth profile is strengthened by record recurring core developer subscription revenue and rapid traction of Engagelab, our global flagship product, reinforcing our dual engine growth strategy and expanding our high margin recurring revenue base. Thirdly, Measures has a light overseas expansion across key Asian markets is diversifying our revenue makes, complementing domestic momentum, and opening new long-term avenues for scalable SaaS adoption. Fourthly, expanding revenue scale paired with improved growth profitability extends our streak of US GAAP net profit, demonstrating rising operating leverage and validating our execution towards consistent profitable growth for our shareholders. In this quarter, developer services recorded Our core business, Developer Subscription Services, deliver its best quarterly revenue number of RMB $77 million, representing growth of 34% year-over-year and 9% quarter-over-quarter. The year-over-year and quarter-over-quarter revenue growth was mainly driven by increases in both customer number and our pool. The very strong Q3 developer subscription revenue growth was mainly fueled by our global flagship product, Engagelab. Let me take a moment here to recap the mission we had when launching Engagelab back in late 2022. Engagelab was created to address Our customers may need a reaching out and engaging with their users in a cost-efficient and effective way. Through Engagelab, our customers can reach and engage with their users through any one or all of the following messaging channels as such. App Push, Web Push, Email Service, SMS Service, WhatsApp, Business API, and OTP. We have also made substantial foundations Our platform maintains leading international security and privacy certifications, including ISO 27001, ISO 27701, and SOC 2, which provide robust assurance around information security and data privacy for our worldwide customer base. In this quarter, the highlights of Engage Lab Business include, firstly, EngageLab won additional RMB $32.8 million worth of new contracts in this quarter alone. In our view, EngageLab's addressable market remains sizable and largely underpenetrated. We see a long growth runway ahead for the product, with sustained expansion expected across many quarters to come. Secondly, the EngageLab customer number has exceeded 2,430 This represents a very strong 86% growth year-over-year. Global customers are continuing to sign up and switch to Engagelabs. Thirdly, the recognized revenue for Engagelabs in Q3 2026 reached RMB 29.5 million, representing an outstanding 124% growth year-over-year. Within subscription revenue, Some of the notable wins in this quarter include, but are not limited to, Tesla, China, Kai Tak Sports Park, Bilibili, and Civic Bank. Value-added services revenues were RMB 11.1 million, up 21% quarter-over-quarter, and up 57% year-over-year. The year-over-year and quarter-over-quarter spike was mainly attributable to increased ad spending by our customers in this quarter. Let me switch gears here. I think it is time now to give an update on our overseas expansion progress. We continue to advance our measure global expansion across key Southeast Asian and North Asian markets with established local presence in Hong Kong, Malaysia, Thailand, Singapore, and Japan. Overseas markets now represent a meaningful and growing component of our business, as mentioned above, contributing approximately 34% of the group's total revenue in Q3. Our global market model for international growth blends direct sales teams supported by our on-the-ground local talent alongside strategic partnerships with regional INCs and SIs. This hybrid approach balances market penetration with capital discipline. It allows us to build local market expertise Weidong Luo, Qing Zhang We entered a three-year strategic MOU with Southeast Asia-based Exabyte to market our EngageLab omni-channel engagement and GPT-box thought AI enterprise AI agent solutions across the region. By pairing our enterprise-ready AI technology stack with Exabyte's broad local business ecosystem, we aim to solve Thank you. Thank you. Now, let me pass the call over to Shan-Nen who will take you through the metrics on vertical applications and financial performance for this quarter.

Thanks, Chris. And next, I'll go over the revenue for vertical application that includes financial risk management and market intelligence. Overall, vertical application revenue decreased year over year and quarter over quarter. and within vertical application, financial risk management revenue decreased 36% year over year and 19% quarter. And it is important to note that market conditions remain difficult. Against this backdrop, the team is making deliberate adjustment across our go-to-market model and the related strategy to recapture the market. The customers that we sign up or renew in Q3 include, but not limited to, Chengdu Bank, Xiaomi Xiaojing, Ping An Xiaojing, and many more licensed credit or financial institutions throughout China. And market intelligence revenue, very encouraged by the improvement in this quarter, where it recorded revenue increase of 18% year over year and 6% quarter over quarter. And this was mainly benefited from the increase in customer demand. Coming on to are the P&L items. Our gross profit recorded another strong Q3 quarter with 11% year-over-year and 2% quarter-over-quarter growth to RMB 70.9 million. This RMB 70.9 million gross profit marked a new high since Q1 of 2022. The sequential gross profit growth is particularly encouraging. It signals that profitability gains are not one-off, but they are also being sustained as our revenue run rate step up. This at-large gross profit pool strengthens our financial optionality to pursue high return growth opportunity across domestic and overseas markets. It's further confidence that our SaaS business is maturing into a more profit-generating operation as scale builds. Onto net profit. Building on the positive momentum we established Starting in Q1 2026, we extended our streak of US GAAP profitability to six consecutive quarters. Net profit for the quarter reached currently 4.5 million, marking the strongest bottom line results in Aura Mobile history. And this sustained run of profitability is meaningful beyond a single quarter's result. One, it demonstrates that our SaaS operating model has matured into one that can consistently generate positive earnings. It enhances our internal cash generating capacity and it reduces our reliance on external capital to fund operations. Secondly, it also gives us greater confidence to continue investing selectively in high potential growth of priorities while maintaining financial discipline and delivers tangible proof that our multi-year transformation is creating predictable value for shareholders. And in this quarter, performance reflects a well-balanced execution across the business, with strength flowing from the top-line revenue expansion all the way to sustained bottom-line profitability. And on to operating expenses. The Q3 OPEX was at going to be $68.1 million, up 1% quarter-over-quarter and 6% year-over-year. The OPEX came in line within our forecast, and we are very comfortable with the current spend level. I'll now dive deeper into the individual OPEX categories. R&D expenses increased by 17% year-over-year to RMB 30.2 million, mainly due to higher staff costs and associated expenses. Technical service fee also contributed to the year-over-year increase. Selling and marketing expenses increased by 9% year-over-year to RMB 29 million, mainly due to higher staff costs driven by overseas business expansion. And G&A expenses decreased by 24% year-over-year to $29 million, mainly due to the decrease in bad debt provision resulting from the improved collection efficiency and the reduction in other personnel associated costs. And next, I'll share four very important KPIs that we closely monitor. Our net dollar retention rate, NDR, a commonly used KPI for a SaaS company, stood at 106% for our core developer subscription business for the trailing 12-month period ended September 30, 2026. And we recorded back-to-back NDR of 106%, which is the highest NDR to date. And this matrix is a compelling indicator of the loyalty and the engagement within our existing customer base. This record NDR reflects robust product stickiness, deeper consumption from our installed account, and the effective upsell and cross-sell motion within the customer that we have. And although NDR may naturally shift period over period due to the individual renewal timing and customer circumstances, We view this milestone as an encouraging end where we remain focused on preserving strong retention dynamics going forward. Secondly, another financial KPI for tracking the performance of SaaS company is total different revenue. And this represents cash collected in advance from our customers for future contract performance. And it stood at RMB 185.2 million as of September 30th, 2026. and this balance surpassed the prior quarter and as the historic high balance in our history. This high quality reservoir of prepaid customer commitments provides enhanced predictability of our forward revenue pipeline and bolster our cash position as customer prepaid are received in advance. Thirdly, we continue to maintain a healthy level of AR turnover days at 36 I believe this is an industry-leading low number that we are very proud of. This efficient collection cycle preserves strong working capital flexibility and reduces exposures to credit risk across our customer base. And on to cash flow. Another important financial KPI for us to manage the business. For the quarter ended September 30th, 2016, we recorded net operating activities cash inflow of will be 6.6 million. And this positive operating cash inflow underscore the quality of our earnings and give shareholders added assurance that our profit stream is cash back and sustainable. And let's now recap on Chris, a quarter of broad-based record performance commentary at the beginning of this call. In the third quarter of 2026, we achieved another quarter of US GAAP net profit in 2086. This marks a streak of six consecutive quarter of net profit. Our business has proven to be able to return gap profit consistently, quarter over quarter. Second, highest quarterly revenue of Roaming Pea, $106.5 million, post-transition to pure SaaS. Our core developer subscription services recorded the highest revenue of 77 million in history. It is simply fantastic. And our global flagship product, Engagelab, recorded highest revenue quarter since its launch. In this quarter, Engagelab contributed more than one-third and 38% to be precise of our core developer subscription revenue. And equally important was Engage Labs' revenue, which increased by 124% year-over-year. Number four, gross profit grew by 11% year-over-year and quarter-over-quarter to a new high since Q1 of 2022. And our NDR for core developer services had back-to-back record high of 106%. We have a net cash inflow of RMB 6.6 million reporting from operating activities. And indeed, this quarter delivers an exceptionally strong set of financial results. And the results are not accidental. They stem from sound strategic choices, disciplined operational decision, and consistent execution across the organization. And our financial performance is a direct reflection of the collective hard work and then alignment from every part of our team. And we drove meaningful top line growth this quarter. We paired with favorable profitability dynamics, leave cross-profit to a new post Q1 2022 high. And this operational strength flew to our bottom line and deliver our highest net profit since adopting to the pure SaaS model in Q1 of 2021. And with this proven operating model in place, we enter the next phase with confidence in our long-term growth prospects. And next is the business outlook update. And we are revising our full year 2026 value guidance from a range of $450 million to $480 million to a range of $405 million to $415 million, representing year-over-year growth of approximately 8% to 11%. And the revision primarily reflects revenue from our financial risk management business, which came in below our expectation. And this shortfall was driven by the continual adjustment underway in the China consumer credit and loan facilitation industry. As regulatory requirements continue to be implemented in the greater depth, financial institution and loan facilitation platform has further adjusted their product offering, their pricing, customer mix and business scale. And certain customer has tightened their new credit origination and taken a more prudent approach to business budgeting, which in turn has affected demand for related data and technology service. And we have previously expected customer demand to gradually stabilize following the industry adjustment However, the depth and duration of the adjustment have exceeded our expectation. And the above outlook is based on the current market condition and reflects the company's current and preliminary estimate of the market operating conditions and customer demands, which are all subject to change. And lastly, before I conclude, I'll give a quick update on the share repurchase plan. In the quarter ended September 30th, 2016, We repurchased 99,000 ADS. Cumulatively, we have repurchased a total of 585,000 ADS since the start of our repurchase program. And this concludes our prepared remarks. And we are happy to take your question now. Operator, please proceed.

Thank you. To ask a question now, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. And our first question comes from the line of Kelvin Wong of Spiker Capital. Please go ahead, Kelvin. Your line is open.

Good evening. Thank you for taking my question, and congrats to your management. Indeed, today's Q3 earnings we bet a very solid quarter. So could management elaborate more on the key actions and strategic choices that help deliver such strong set of results? Thank you, Kevin. Good to hear from you again. And thanks for the question. And the quarter's results, you're right, it did not come from a single one-off factors. There are cumulative outcome of consistent discipline, execution, that we have done over the past few years. And I can elaborate more. Firstly, I think we stay focused on growing our high quality recurring revenue foundation. And we continue to invest in our core developer subscription offering and we deepen the engagement with existing enterprise customer while we expand our install base and also we delivered record subscription revenue in this quarter. And parallel to that, we have also prioritized Engagelab as our global flagship product, refining the product capability and go-to-market motion. And that focus is now translating into larger contract wins and rapid year-over-year growth for the product. And secondly, I think our overseas expansion strategy has been deliberate and capital efficient. As Chris mentioned earlier during the call, We adopted a hybrid model of combining direct local team in key Asian market together with the trusted ISV and SI partner. And this asset-light approach let us gain local market access without heavy upfront investment. And the international revenue is now meaningful and growing part of our group revenue and inching close to 30% mark this quarter. And we also build the necessary global data infrastructure and maintain the critical security and privacy certification to earn enterprise customer trust across the border. And third, I would say we have maintained tight operational discipline along targeted growth investment. We continuously optimize our product mix and cost structure to expand cross-profit, which reached the highest level since Q1. Average pair with our focus revenue quality has allowed us to extend our streak of US GAAP profitability in where we deploy resources, even amid the challenging external environment approaches and priorities. And we're doubling down on the highest return opportunities as well. managing our risk carefully. And we are very hopeful and we are very confident in the future execution.

Kelvin?

I'm fine. Great, thanks. Can you hear me?

Thank you, Mr. Bong.

And our next question comes from the line of Marco Zhang of Galonghui Research. Please go ahead, Marco.

Your line is open. Marco, your line is open. Please proceed with your question. Marco, please unmute and proceed with your question. Your line is open. Hi, can you hear me?

Yes, I can. Please proceed.

Yes, hi, this is Marco from Ge Long Hui. Is the management still there? Because I got disconnected earlier. Yeah, I can hear you.

Hi, yeah, sorry. Congrats on the results.

So we observed our share price faced downward pressure in Q2 of this year before staging a meaningful recovery through Q3. Could you walk us through the key drivers behind this share price volatility and what catalysts lie ahead that may support continued positive momentum? Hi, Michael. This is a tough question. Give me a few seconds. Let me just pull the data that you mentioned. I'll just take the average 20 days share price prior to the Q2 earning release versus the Q3. If I look at the numbers right now in front of my screen, the average 20 days share price prior to Q2 earning release was $5.18. And the average share price, 20 day share price prior to today's earnings release was $7.03. The share price has moved 36% between the two earnings release. I think it's important to separate share price performance from underlying business fundamentals because the two diverge in Q2. I think the pullback reflects the broader market sentiment rather than weakness within our operation. As a smaller cap name with limited trading liquidity, and Limited Analyst Coverage. I think our stock price remains sensitive to the prevailing mode towards the Chinese equity.

and we delivered 32% growth. That was all last quarter's numbers.

And further traction across Japan and Southeast Asia, our ongoing buyback activity. and the extended track record of consistent profitability. The last point carries particular significance. And a number of institutional investors have requirements around sustained profitability before they can initiate position. So each additional profitable quarters that we have expand our potential investor base. And with the strong Q3 numbers that we are sharing today, We are further reinforcing this proof point. We have now delivered back-to-back 100 million quarter revenue. We have multiple new business record high and we extended our U.S. gap net profit streak to six quarter at the highest level since we transitioned to pure sub-transition. And we do believe that with this set of Q3 financial that we released today and more and more investors will look at us and will follow us closely. I hope this answers your question, Marco.

Thank you. I am showing no further questions. I'll now turn the conference back to Christian for his closing comments.

This concludes the call and management's prepared remarks. Pardon me, excuse me. This concludes the call on management. Thank you everyone for joining our call tonight. If you have any further questions and comments, please don't hesitate to reach out to the IR team. Thank you very much and have a good night.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect your lines.