Ladies and gentlemen, thank you for standing by, and welcome to the Aurora Mobile Third Quarter 2025 Earnings Conference Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. You will then hear an automated message advising your hand is raised. And to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your host today, Rene Vanguestaine. 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.gguang.cn. On the call today are Mr. Weidong Luo, Chairman and Chief Executive Officer, Mr. Shan-Nen Bong, Chief Financial Officer, and Mr. Guanyang 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 is defined in The US 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 Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, as required under applicable law. With that, I would now like to turn the conference over to Mr. Luo. Please go ahead.

Thanks, Rene. Greetings to all. Welcome to Aurora Mobile's 2025 Third Quarter Earnings Call. Before I comment on our Q3 results, I would like to remind everyone that the quarterly earnings are available on our IR website. You may refer to that as we proceed with the call today. Without further ado, let's get started. As we did in the past, based on the Q3 earnings numbers, the suitable discretion I will give to the fourth quarter result is good things. Kind of impulse. Because we record the first-ever back-to-back quarterly net GAAP profit in our history. Following the Mandan net debt profit last quarter, our strong business performance carried us across the line again in Q3. Let me elaborate more on the strong business we have had in this quarter. Firstly, the group's revenue this quarter of RMB 19,900,000, achieving a remarkable 15% year-over-year and 1% sequential growth. This RMB 19,900,000 was at a very high end of the guidance we have provided. Secondly, our global flagship product, Engagement, continued its great momentum with another quarter of great numbers. Engagement app recorded a very strong quarterly growth in customer number and contract value growth. In particular, Engage Labs ARR for September 2025 stood strongly and reached a new milestone at RMB 53,700,000. It has grown by 160% year-over-year. Thirdly, our financial risk management business had its best quarter yet, recording the highest quarterly revenue of RMB 222,600,000 with growth of 43% year-over-year. Fourthly, gross profit exceeded our expectation and grew strongly by 20% year-over-year while achieving the highest growth gross profit for the past fifteen quarters. Gross margin has also improved year-over-year and quarter-over-quarter. Last but not least, have you ordered a great number about its grade? It's equally important that we are generating positive cash flow and in…

And next, I'll go over the revenue for a particular application that includes financial risk management and market intelligence. Overall, vertical application had a good quarter. Where revenue grew both year-over-year and quarter-over-quarter. Within vertical application, financial risk management recorded significant 33% growth in revenue year-over-year and 3% quarter-over-quarter. Financial Risk Management had its Following the strong Q2, sequential excellent quarter. It is now the third consecutive quarters of revenue in excess of RMB 21,000,000 under its belt. Another significant milestone for this business is that it recorded the highest quarterly revenue in history of RMB 22,600,000 in this quarter. This 33% year-over-year revenue growth mainly due to a strong 44% in customer number growth. The customers that we sign up or renew in QT in Q3 include, but not limited to, nursing. And many more licensed credit and financial institutions throughout China. Market intelligence revenue, on the other hand, decreased by 23% year-over-year and 2% quarter-over-quarter due to the weak the continued weak demand for the Chinese APP data. And this result is in line with our expectation. Next, I'll go over some of the P&L and balance sheet items. Our gross profit had spectacular results too. In this quarter where it grew 20% year-over-year and 7% quarter-over-quarter. The rupee 63,800,000 gross profit we had was also the highest gross profit for the past fifteen quarters. With the group revenues grew 15% year-over-year, yet our gross profit grew by 20% year-over-year, it shows that we had recorded very high margin revenue in this quarter. This is certainly a key target that we would like to maintain and extend beyond this quarter. Onto operating expenses. The Q3 operating expenses was at RMB 64,400,000, representing a 12.8% increase year-over-year, an increase of 5.8% quarter-over-quarter. Operationally, our Q3 revenue grew by 15%…

First, we achieved our very first back-to-back GAAP net profit in history. Number two, our core developer subscription business had its best revenue in history of 57,300,000. As did the financial risk management business. Our flagship product, EngagedLab, continued its expansion beyond the shores. Apart from great growth in customers' number and contract value, EngagedLab business reached another very important key milestone. Where the ARR was at 53,700,000 in September 2025. Representing a stunning 160% year-over-year growth. Gross profit grew 20% year-over-year and recorded its highest levels for the past fifteen quarters. Number five, operating activities brought in net cash inflow of RMB 33,300,000. Our NDR net dollar retention for core developers to be recorded at the best number in history of 104%. And now let's turn to business outlook. Based on the current available information, the company sees the Q4 2025 revenue guidance to be in the range of RMB 94,000,000 to RMB 96,000,000. Representing a solid growth of one to 3% year-over-year compared to the same quarter 2024. The above outlook is based on the current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and customer demands, which are all subject to change. Before I conclude, I'll give a quick update on the share repurchase plan. In this quarter ended 09/30/2025, we repurchased 4,000 ADS. Cumulatively, we have repurchased a total 327,000 ADS since the start of our repurchase program. And today, our board of directors of the company approved a share repurchase program whereby the company is authorized to repurchase up to US dollars 10,000,000 worth of its ordinary share, including in the form of ADS. During the twelve-month period starting today. And this is a 100% increase from the US dollars 5,000,000 program we had previously. The company proposed repurchase will be made from time to time in the open market at a prevailing market price. In private negotiated transaction, in block trades, and or other to other legally permissible means. Depending on the market conditions and in accordance with applicable rules and regulation. Company's board of directors will review the share repurchase program periodically and may authorize adjustment in terms of size and terms. The company expects to fund the repurchase of its existing cash. And this concludes our prepared remarks. We'll be happy to take your question now. Operator, please proceed.

Thank you. As a reminder to ask a question, please press 11 on your telephone and wait for your name to be announced. And to withdraw your question, please press 11 again. And our first question will come from Calvin Wong with Spica Capital. Your line is now open.

Good evening, management. Thank you for taking my questions. First of all, congrats for delivering another set of stunning results this quarter. I have only one question. Based on my reading of the earnings release, I noticed the strength of engagement that business. And how it strengthened the group's financial result. So I would appreciate if management could tell us more about EngageLab. And why the growth trajectory has been so strong since day one. Thank you.

Let me take this call. Kevin, to hear from you again, and thanks for interest. And I'll take your earlier statement about EngagedLab rules to track has been strong since day one. And this is factual, and we are very proud of the achievement since day one. And for those listeners, have access to our ER deck that we have uploaded to the IR web page, You can refer to, I think, slide number three we have the pictorial display or diagram of engagement of EngishLab business to date. And one new particular data point that we have included in this quarter's earning deck is the ARR. It's the annual recurring revenue for English lab business. For the month of September, 2025, the ARR was at 53,700,000. And this is a 160% jump from a year ago. And we are very encouraged by this number. Because it shows that the business has a very significant growth trajectory, and we have made great revenue expansion in just twelve months. I would say the success of EnglishLab is not by chance that we are lucky. It was a result of endless improvement upgrades that we made to the product and service offering that help us to acquire more new customers and retain existing customers globally. If you look back, when Chris decided to launch English Lab back in 2022, the mission was pure and direct. Just to address our customers' main needs of reaching out and engaging with their users in a cost-efficient and effective manner. And through EngageLab, our customers are able to reach and engage with the users who anyone or all of the following messaging channels such as app push, web push, email, SMS, WhatsApp, and OTP. And also from a technical standpoint, have done all the heavy lifting…

Great to hear that. It's very clear then.

Thank you. And our next question will come from Jack Sun with Gullingway Research. Your line is open.

Good evening. I'm Jack Sun from Gong Fu Research. Thank you, management, for taking my question. Congratulations on another good quarter with solid earnings. In particular, two consecutive quarters with getting that profit. Well done. I have a question for the management. Help me to recap what went well in Q3 that delivered another quarter with a GAAP net profit. Thank you.

Hi. Hi, Jack. Thanks for the question. Yeah. It was a great quarter indeed. I think Chris mentioned we executed very well operationally and everything just went well. And this flow on to our financials number that we have released earlier today. There are a couple of things I can share more. Firstly, revenue in Q3 has been very strong. All business lines recorded great year-over-year double-digit growth. What I mean is we are now head and shoulders above where we were a year ago. And both the subscription business and the financial risk management recorded their own best revenue quarter in history. Equally important is the revenue by EnglishLab where it contributed RMB 13,000,000 in this quarter alone. Also a historical high. We grew our revenue not at the expense of sacrificing margins. This is evident that while we grew our revenue significantly, our gross profit reached the highest level for the past fifteen quarters. At the same time, our gross margin increased year-over-year and quarter-over-quarter too. And this is a really hard act to follow. And since revenue, gross profit grew at a faster pace than our OpEx, the US GAAP net profits is a certainty. And which is why we had a second quarter of US GAAP net profit. And two other important and great KPIs that I would like to reiterate here. One is the NDR. Where we reach 104% for our core developer sufficient business. And this is the very first time NDR exceeded 100%. And what that means is simple and straightforward. Our customers have been buying more of our services between the periods through upgrades, upsell, and other services. And this is a great number to have. And secondly, is the deferred revenue balance of 166,300,000, another historical high balance. In short, we…

Okay. Thank you. That's very clear. Appreciate that.

Thank you. I show no further questions in the queue at this time. I would like to turn the call back over to Rene for closing remarks.

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 good night. Thank you all.

This does conclude the conference call. Thank you for participating and you may now disconnect.