Ladies and gentlemen, thank you for standing by and welcome to the Aurora Mobile Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Christian Arnell. Thank you. Please go ahead, sir.

Thank you, Michelle. 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.jiguang.cn. 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 factors are included in the company's filings with the U.S. 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 would now like to turn the conference over to Mr. Luo. Please go ahead.

Thanks, Christian. Greetings to all. Welcome to Aurora Mobile's 2024 third quarter earnings call. Before I comment on our Q3 results, I would like to remind everyone that, the quarterly earnings that is available on our IR website. You may refer to that, as we proceed with the call today. As we did in the past, based on the Q3 numbers, the appropriate a description I will use for the Third Quarter result is record breaking for the following reasons. Firstly, we are writing our own history. We are on a road. In this quarter, we record the fifth consecutive quarterly press release adjusted EBITDA. Secondly, developer subscription revenue record both 7% growth quarter-over-quarter and 11% growth year-over-year. More importantly, the quarterly revenue has exceeded RMB15 million for the first time in history, yet another record-breaking event in this quarter. Thirdly, our EngageLab business continues to shine in terms of customer numbers and cumulative signed contract value, where they grew 42% and 23% quarter-over-quarter, respectively. Firstly, we record net operating cash inflow of RMB12.3 million being the highest level in the past 16 quarters bringing the cash balance above RMB101 million as of 9/30, 2024. These are the net shots of the great numbers we have achieved in this quarter. Now let me expand further. Our total group revenue has grown 7% year-over-year fueled by the strong numbers from developer services. Within the group revenue, developer subscription service and financial risk management record 11% and 29% year-over-year revenue growth, respectively. Development services revenue, which consisted of subscription services and value-add services, increased by 12% year-over-year and 2% quarter-over-quarter. Subscription revenue has been recording great numbers where it increased by 11% year-over-year and 7% quarter-over-quarter. Value-added services revenue grew by 20% year-over-year but decreased 30% quarter-over-quarter. Our core business subscription services…

Thanks, Chris. Next, I'll go over the revenue of our vertical application that includes Financial Risk Management and Market Intelligence. Overall, vertical application had a relatively quiet quarter, where revenue decreased by 6% quarter-over-quarter and 4% year-over-year. Nevertheless, we did a relatively quiet quarter. We still saw a great number from Financial Risk Management, where it recorded a 29% growth in revenue year-over-year and relatively flat quarter-over-quarter. They were the star performer within vertical applications. The 29% year-over-year revenue growth was mainly due to a strong 28% growth in ARPU. The trend we have seen in Q3 was existing customer have increased their consumption of our financial risk management product and services. And this is very important, and it provided a very solid foundation for the revenue numbers every quarter. This also demonstrate that, our products are widely used and well received by the financial sector customer in their own risk model. The customers that we sign up or renew in Q3 include, but not limited to, Ningbo Ligong, Zhendu Ligong [ph] Haier Xiaoxing, Ping An Xiaoxing and many other more licensed credit and financial institution throughout China. Market Intelligence revenue decreased by 41% year-over-year and 22% quarter-over-quarter, due to the continued weak market demand for Chinese APP data. This is in line with our expectation. In Q3 of 2024, we did manage to sign renewal contracts with some well-known large customers. And within Market Intelligence, from product perspective, we have recently launched a global ranking of APP service, where customers can now have access to multidimensional indicators, including app penetration rate, active user and new users of global key APP across different countries and different regions. Since its launch in September, we have seen good trial accounts registration rate, and we believe it will give a good and new…

Thank you. Our first question comes from Calvin Wong with Spica Capital. Your line is open.

Thank you for taking my questions. I really appreciate that the management has deliver another quarter of very impressive results. I'd like to recap what I head you say, you have five consecutive quarters of positive adjusted EBITDA and your core developer subscription business revenue of more than RMB15 million and finally EngageLab business is growing significantly every quarter. So, I really appreciate management could provide more colors on all these three great achievements. Thanks.

Let me take this question. For many, including yourself, would appreciate achieving this -- any one of this within a quarter is not an easy task. And for us to do it with three great milestone that you mentioned in one quarter, I think it's remarkable to say the least. And if there's one thing that I can attribute this to, I would say, it will be the effective execution that help us bring these numbers. I mean, you can spend as much time and energy in the planning and preparation stage, but I think the key to any success is how well you execute your plan. And probably, as you know, we started the plan to go overseas about 18 months to 20 months ago. And by then, it was a rough road ahead of us, and we have to start everything from scratch. And we did not just buy an overseas company, who has operation overseas. We did it the hard way, but on the way, we learned a lot. We tackled all the issues ourselves. For instance, when we venture overseas, we need to sort out, where we should store our customers' data and which overseas cloud service provider that suit us best and suit our customers best. And also, which IT structure should we have to serve our customers across 31 countries, that Chris mentioned. And the best answer to this can only be had through on field execution. And also, because we executed the growing overseas plan really well, and we are able to have a RMB50 million revenue quarter for developer subscription service, and this is the highest single quarter revenue for this segment in our history. And this will now be achieved by simply having really good plans. At the same token, having a RMB50 million revenue quarters worth developer subscription revenue itself will not automatically achieve positive adjusted EBITDA. We have to properly execute the business expansion and cost saving plans simultaneously, and all these are interrelated. So therefore, in conclusion, it is clear that, we, the management has an execution skill and determination to manage the business and managing it well. So only when we effectively executed this plan that we have, we can achieve a record-breaking quarter that Chris mentioned at the beginning of this call. I hope this answers your question, Kevin.

Thank you. Our next question comes from Jack Sun with [ph] Jirongu Research. Your line is open.

Congratulations on a strong quarter. I'm Jack Sun from -- Research. I have a question for management. I heard Chris mention during the call that for the overseas expansion, you have offices and staff in both Singapore and Malaysia. To support overseas business growth, are we expecting more offices around the world in the near future? Thanks.

Yes. Thanks, Jack. Let me take this question too. Yes, you're right. We now have offices in both Singapore and in Kuala Lumpur, which is in Malaysia. And we make conscious decision when selecting these two cities to have our offices. For the immediate, we believe these two offices are strategically well located to help us expand in the Southeast Asia and beyond. Currently, a good portion of our overseas revenue are derived from customers in the Southeast Asia region. Therefore, having local teams to support this region is key. And also, we need to have -- we need to be there when customers have issue that needs addressing, or when they have plans to buy more of our services. And we believe, there are a lot of opportunities in the Southeast Asia countries that we can harvest in the near future. And so, with teams in KL and Singapore, it is only a short trip for them if they need to be in, say, Bangkok, Taipei, Jakarta or even any cities within the Southeast Asia region. As a matter of fact, our Singapore team has flown to Taipei this week for meetings with the customers and ISV there. Looking ahead, we certainly will be considering more offices when there is a good reason to have -- take for example, should the business in terms of customers' number and revenue in the Gulf region is becoming material, we'll certainly be open to having our offices in Doha, Dubai or even Abu Dhabi to serve the customer in that region. So, if I may, the short answer to your question is that, the need to have more offices overseas is solely dependent on the numbers. So long as the numbers add up, we have, i.e. we have enough customers and enough revenue, we definitely will set up overseas, more overseas offices in the near future. Hope this answers your question, Jack.

Thank you. There are no further questions at this time. I'd like to turn the call over to Christian Arnell for closing remarks.

Thank you. 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. This concludes the call. Have a great evening, everyone. Thank you.

Thank you for your participation. This does conclude the program. You may now disconnect. Good day.