Earnings Call Transcript - JOYY Q4 2025

Operator, Operator

Ladies and gentlemen, thank you for standing by, and welcome to JOYY Inc.'s Fourth Quarter and Full Year 2025 Earnings Call. I'd now like to hand the conference over to your host today, Tingzhen Xie, the company's Senior Manager of Investor Relations. Please go ahead, Tingzhen.

Tingzhen Xie, Senior Manager, Investor Relations

Thank you, operator. Hello, everyone. Welcome to JOYY's Fourth Quarter and Full Year 2025 Earnings Conference Call. Joining us today are Ms. Ting Li, Chairperson and CEO of JOYY; and Mr. Alex Liu, the Vice President of Finance. For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session. The financial results and webcast of this conference call are available at ir.joyy.com. A replay of this call will also be available on our website in a few hours. Before we continue, I would like to remind you that we may make forward-looking statements, including, but not limited to, the future development of our products and businesses, the expected future financial performance of the company, our share repurchases and other future events, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties please refer to our latest annual report on Form 20-F and other documents filed with the SEC. We will also discuss certain non-GAAP financial measures. They are included as additional clarifying items to aid investors in further understanding the company's performance and the impact that these items and events had on the financial results. The non-GAAP financial measures provided above should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. You may find a reconciliation of differences between GAAP and non-GAAP financial measures in our earnings release. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in U.S. dollar. I will now turn the call over to our Chairperson and CEO, Ms. Ting Li. Please go ahead.

Ting Li, Chairperson and Chief Executive Officer

Hello, everyone. I'm Ting Li. Thank you for joining us today. In 2025, our group revenue and social entertainment business regained growth momentum since Q2, and we saw meaningful progress in our segment growth curve of ad tech and other emerging areas. Together, these results are sharing our clear strategic framework as a global technology company with multiple growth engines. Let me start with an overview of our results. In Q4, live streaming maintained a sequential recovery trend where our advertising platform saw accelerated top line growth. Meanwhile, non-GAAP operating profit and cash flow remained robust. In the fourth quarter, total revenue reached $581.9 million, up 7.7% quarter-over-quarter and 5.9% year-over-year, representing our further positive year-over-year growth since the second half of 2024. Live streaming revenue was $394.4 million, up 1.5% quarter-over-quarter, marking three consecutive quarters of sequential growth. BIGO Ads, including both first- and third-party ads, generated $128.1 million in revenue, up 61.5% year-over-year with third-party Audience Network revenue growth accelerating to 82.5% year-over-year. Overall, non-live streaming business contributed 32.2% of total group revenue. Non-GAAP operating profit stood at $40.8 million, and operating cash flow totaled $115 million. For the full year, total revenue was $2.12 billion. Live streaming contributed $1.53 billion, while BIGO Ads contributed $398.5 million, a 38.5% year-over-year increase. In particular, BIGO Ads' third-party ad revenue, Audience Network, delivered 56.3% year-over-year growth. Non-live streaming businesses represented 28% of total revenue, an increase of 7.9 percentage points compared with 2024. In 2025, non-GAAP operating income and non-GAAP EBITDA were $150.8 million and $189.8 million, up 10.8% and 10.9% year-over-year, respectively. As of December 31, we held $3.26 billion in net cash. Our strong operating cash flow and balance sheet continue to support consistent shareholder returns. In 2025, we returned $332 million through share repurchases and dividend. We've improved business visibility and ongoing operational optimization. We are confident we will continue to deliver solid performance. In light of our strong performance and continued double-digit non-GAAP operational profitability improvements in 2025, the Board has approved an additional cash dividend of approximately USD 20 million, representing approximately 10% of the total cash dividend declared for the year of 2025. On top of the company's regular quarterly dividend schedule, this demonstrates our ongoing commitment to drive operational improvement and enhance shareholder returns. Next, let me share our strategic forecast and outlook. We are currently evaluating refinements to our segment reporting structure, and we are considering reporting our results under three major business segments: social entertainment, ad tech and e-commerce SaaS beginning in the first quarter of 2026. This new structure will make it easier to see and understand the progress we make within each business. Our social entertainment business remains the cornerstone of our profitability and cash flow. Meanwhile, BIGO Ads and Shopline are building our next stage of growth with improving mid- to long-term economics and expanding profitability potential. Together, this portfolio has positioned JOYY for a return to sustainable and profitable growth. From a long-term perspective, their combined strengths and synergies will serve as a powerful engine through which we can eventually penetrate an addressable market beyond what would be possible for each business individually. We believe 2026 will be a landmark year for JOYY, marking the resolute beginning of our renewed growth journey and the defining step toward becoming a global diversified multi-engine technology company. Now let's turn to our operating update. In Q4, our core social entertainment business achieved its third consecutive quarter of sequential recovery. Global social MAUs reached 272.1 million, up 2.2% quarter-over-quarter. Traffic from our instant messaging increased 4.5% quarter-over-quarter, driven by high user stickiness and organic user growth. Both average user time spent and retention improved year-over-year. On the revenue side, group live streaming revenue rose to $394.4 million, up 1.5% quarter-over-quarter. Developed markets recorded a strong recovery with revenue climbing 3.4% quarter-over-quarter. BIGO's total paying users rose 1.5% quarter-over-quarter. On our four flagship products, we further enhanced our streamer incentive structure and integrated AI-driven features across critical stages of the user journey, boosting both engagement and payment efficiency. For example, by integrating large language model architecture and incorporating multi-modal information into our recommendation system, we improved our ability to understand both live streaming content and user interest. The optimized recommendation precision and distribution efficiency led to a 5.6% quarter-over-quarter increase in BIGO Live's average viewing time per user in Q4. Furthermore, user adoption of AI-generated virtual gifts continued to grow. As of January 2026, the consumption of AI interactive gifts on BIGO Live has surpassed 30% of total virtual gift consumption. We are making solid progress on our new product lineup, leveraging our established product development, content, payments infrastructure and local operations. We are expanding new product incubation and growth. In Q4, revenue from new products increased 37.9% quarter-over-quarter, setting a new monthly record. In 2026, we expect continued recovery. Paying users for our flagship products are expected to improve, driven by ongoing operational refinement. Meanwhile, we anticipate our new product lineup will sustain robust growth and bring further incremental live streaming revenue. We are confident our social entertainment segment will regain growth momentum, delivering healthy profitability and cash flow for the group. Turning to BIGO Ads. In Q4, BIGO Ads delivered $128.1 million in advertising revenue, up 61.5% year-over-year and 23.3% quarter-over-quarter. Third-party ad revenue, Audience Network, grew 82.5% year-over-year and 27.3% quarter-over-quarter, demonstrating accelerated growth momentum on a sequential basis for the third consecutive quarter. We fueled this growth through broader traffic coverage, multi-vertical advertiser expansion and ongoing algorithm optimization. First-party traffic expanded steadily supported by higher MAUs and ad fill rates that drove sequential revenue and profit growth. Third-party traffic also increased with SDK requests growing by 166% year-over-year and 23% quarter-over-quarter. Our diversified vertical strategy across insurance, e-commerce and IAA games broadened market coverage and allowed us to capture seasonal advertising demand more effectively. Q4 was the peak season for U.S. insurance advertising and the prime period for e-commerce campaigns such as Black Friday. Web-based demand primarily from insurance and B2C e-commerce advertisers grew 20%, contributing to a boost in revenue. Enhanced placement performance led the IAA vertical, primarily casual games, to a 39% sequential increase. Overall, the number of key cohorts increased by 29%, and the total spending of key cohorts climbed 34%. By region, we believe the market continued to be our priority with North America up over 21% quarter-over-quarter and Western Europe rising 46% quarter-over-quarter. To take advantage of this momentum, we will deepen our presence in key verticals, including lead generation ads, e-commerce and games. This multi-vertical approach will serve as our structure and disruptive competitive edge over the mid- to long term. We will also expand our advertiser base and penetrate deeper into developing countries while continuously optimizing our algorithm. We have established a three-year roadmap for the BIGO Audience Network, targeting a revenue milestone of $1 billion by 2028, accompanied by steady improvement in economics. Finally, a word on Shopline. Beginning in 2026, we are considering reporting Shopline as a separate business segment to reflect our confidence in its growth prospects. Over the past year, Shopline maintained double-digit revenue growth, driven by cross-border merchant adoption and double-digit expansion and its rising contribution to revenue. While we have normalized Shopline's R&D spending backed by steady top line and gross profit gains, we see a clear and achievable path for Shopline to reach breakeven while sustaining a double-digit revenue growth trajectory. Turning to capital return. In Q4, we repurchased $67.4 million of shares. For the full year, total repurchases reached $134.6 million with momentum accelerating in the second half. We believe our current valuation does not fully reflect our intrinsic value. We remain committed to actively utilizing our buyback program. Looking ahead, as we continue to scale our business and strengthen our operating profitability, we will work closely with the Board to explore possible measures to further enhance our shareholder return mechanism. In summary, our strategic blueprint and ecosystem potential are only beginning and unfolding. We view 2026 as a fresh start toward our next phase of growth. We remain focused on execution, and we are confident that sustained growth and the profitability improvements will demonstrate our true value, leveraging our integrated ecosystem, which remains committed to strengthening joint position and delivering long-term value for our shareholders. Now I'll turn the call over to Alex Liu.

Alex Liu, Vice President of Finance

Thanks, Ms. Li. Hello, everyone. In the fourth quarter of 2025, we recorded total net revenues of $581.9 million, securing a year-over-year growth of 5.9% and quarter-over-quarter growth of 7.7%. This marks an inflection point above our top-line trend on a year-over-year base since the third quarter of 2024. Our live streaming business delivered its third sequential recovery with live streaming revenue increasing by 1.5% quarter-over-quarter. Our advertising business, in particular, BIGO Ads, continued to deliver exceptional growth with its revenue up by 61.5% year-over-year and 23.3% quarter-over-quarter. Our operating cash flow remained strong at $116 million in Q4, and we ended the quarter with roughly $3.26 billion in net cash. As previously communicated, we accelerated share buyback during the quarter, buying back $67.4 million, nearly doubling our Q3 share repurchase volume. For the full year of 2025, we booked total net revenues of $2.12 billion. In particular, BIGO Ads booked $398.5 million in total revenue, delivering 38.5% year-over-year growth. Third-party BIGO Audience Network achieved impressive growth of 56.3% while sustaining profitability. Our non-GAAP operating income was $150.8 million, up by 10.8% year-over-year, and our operating cash flow was $305 million. So after the year of 2025, our total capital return to shareholders including cash dividends reached $332 million, which represents 108.8% of our operating cash flow. I will now dive deeper into our detailed financial performance. Looking at our live streaming business, our total live streaming revenue was $394.4 million for the fourth quarter, $331.8 million of which was from the BIGO segment, both up quarter-over-quarter. Our refined streamer incentive and continued AI-driven optimization of our content distribution and paying user experience have contributed to improved paying user metrics. BIGO's total paying users increased by 1.5%. Live streaming revenue from developed countries increased by 3.4% quarter-over-quarter. Our total non-live streaming base revenues were $187.5 million during the fourth quarter, up by 47.6% year-over-year. Non-live streaming now contributes 32.2% of our total group revenues, up from only 23.1% contribution in the same period last year. BIGO's advertising revenues increased by 61.5% year-over-year and 23.3% quarter-over-quarter to $128.1 million. In particular, our third-party ad revenue, BIGO Audience Network, delivered exceptional results, recording 82.5% year-over-year and 27.3% sequential growth. On the traffic front, SDK network ad requests were up by 166% year-over-year and 23% quarter-over-quarter in Q4. We continued to tweak and optimize our algorithm to further improve our campaign performance with strong advertiser spending. In Q4, the number of key cohorts was up by 29% quarter-over-quarter, with total spending from key cohorts up by 34% quarter-over-quarter. Our multi-industry strategy has helped us capture broader market opportunities. Web-based demand was up by 20% quarter-over-quarter. Mobile-based demand continued to be strong with IAA spending up by 39% quarter-over-quarter. We have outlined our three-year strategic goal for BIGO Audience Network, which is maintaining high-velocity growth and reaching the three-year revenue milestone of $1 billion. In the near term, this means that we need to invest in the expansion of our R&D and sales capabilities as well as our network and computing infrastructure. But given the healthy economics of Audience Network at this stage, we are confident that, as we scale, we will remain profitable and potentially further enhance these network economics in the midterm. The group's gross profit was $205.6 million in the quarter with a gross margin of 35.3%. BIGO's gross margin was down quarter-over-quarter due to a shift in our revenue mix, which saw an increased contribution from our lower-margin network ad revenues. Our other segments' gross margin was up by 5.1 percentage points year-over-year to 46.7%, primarily due to growth in high-margin non-live streaming revenues. Our group's operating expenses for the quarter were $187.8 million. Our operating expenses were higher than last year due to certain non-cash goodwill impairment charges. Sales and marketing expenses were higher year-over-year as our ROI-focused user acquisition returned to normalized levels following one-off advertising savings associated with a temporary App Store interruption in Q4 last year. For our R&D and G&A expenses, we maintained prudence and discipline in our total spending through enhanced resource sharing and operating synergies across different business units. While strategically allocating an incremental share of our R&D resources towards BIGO Ads, our group's non-GAAP operating income for the quarter was $40.8 million. Our non-GAAP operating income was lower than last year, primarily due to the impact of one-off advertising savings last year. Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $70.3 million. The group's non-GAAP net income margin was 12.1% in the quarter. Our non-GAAP net income was lower due to the impact of one-off advertising savings last year and higher FX loss due to a weakening dollar this year. For the fourth quarter of 2025, we booked net cash inflows from operating activities of $160 million. Our balance sheet remains healthy with a strong net cash position of $3.26 billion as of December 31, 2025. Shareholder return continues to be an important component of our capital allocation strategy. We have returned $197.3 million to our shareholders through dividends and repurchased $134.6 million worth of our shares during the year. We believe we are still sustainably undervalued. We will continue to actively utilize our buyback program in 2026. Additionally, in light of our strong performance and continued double-digit non-GAAP operating profitability improvement in 2025, the Board has approved an additional cash dividend of approximately $20 million, representing approximately 10% of the total cash dividends declared for the year of 2025, on top of the company's regular quarterly dividend schedule. This demonstrates our continued commitment to drive operational improvement and enhance shareholder returns. Turning now to our business outlook. At the group level, we expect our net revenues for the first quarter of 2026 to be between $538 million and $548 million. This implies an 8.8% to 10.9% year-over-year growth for the group's revenue in Q1, with live streaming revenues back to positive year-over-year growth, while BIGO Ads is expected to deliver mid-double-digit year-over-year growth in the first quarter despite the impact of seasonality. As Ms. Ting Li just mentioned, beginning in the first quarter of 2026, we are evaluating certain refinements to our segment reporting, and we are considering reporting our results in three business segments, which include social entertainment, BIGO Ads and e-commerce SaaS. We believe the new segmentation will make it easier to see and understand our operational progress, particularly our new initiatives. Looking ahead, we are extremely excited about the tremendous synergy potential and the powerful flywheel momentum that our business segments will deliver in the medium to long term. That concludes our prepared remarks. Operator, we would now like to open up the call to questions. Thanks.

Operator, Operator

Your first question today comes from Thomas Chong with Jefferies.

Thomas Chong, Analyst, Jefferies

I have two questions. The first one is about the live streaming business. Can management talk about the key factors for recovery? And how should we think about the long-term trend? My second question is about the 2026 outlook. Can management talk about the full year revenue and profit guidance?

Ting Li, Chairperson and Chief Executive Officer

Thank you, Thomas. I will take your first question. In the fourth quarter, our live streaming business continued its sequential recovery with both paying users and ARPU up sequentially. On the operational side, we continue to make progress across several areas, including refining our streamer incentive system, strengthening our content offerings and applying AI optimizations across content distribution, content consumption and the overall paying experience for our VIP users. These AI-driven optimizations have continued to translate into meaningful and sustainable improvements in our paying conversion efficiency. Geographically speaking, this recovery has been primarily driven by developed markets. Our new product lineup continues to grow at a healthy rate and deliver solid quarter-over-quarter growth. We expect these products to continue to bring in incremental revenue. Looking ahead, the one-off operational adjustments have been fully implemented, and we no longer expect those adjustments to negatively impact our performance in the new year. We will continue to advance refined user segmentation and incentive upgrades, expand our high-quality global content offerings and strengthen our global payment infrastructure. We also expect growing incremental contribution from our new product lineup. On this basis, we expect our live streaming revenue to return to steady positive year-over-year growth in 2026.

Alex Liu, Vice President of Finance

And I'll take your second question on the 2026 outlook. Let's first take a quick recap of Q4. Our group revenue in Q4 delivered very solid growth both year-over-year and quarter-over-quarter, with live streaming continuing its sequential recovery for the third consecutive quarter and our ad tech business continuing to accelerate its year-over-year growth. For Q1, our current guidance implies a year-over-year growth rate of 8.8% to 10.9% for the group's total revenue. Looking at live streaming, we expect live streaming revenue to be back to positive year-over-year growth in Q1; however, on a sequential basis, considering that the Lunar New Year and Ramadan both fall in Q1, similar to last year, we expect there will be seasonal softness for live streaming on a sequential basis. For advertising, Q1 is also usually a softer quarter, but we still expect very robust performance from BIGO Ads. Our current guidance implies mid-double-digit year-over-year growth for BIGO Ads in Q1. For the full year, based on the current momentum across the three business units, we are confident we'll achieve positive year-over-year revenue growth for the group in 2026. On live streaming, as mentioned, the one-off adjustments from last year have been fully implemented, and we expect revenues to return to steady year-over-year growth. On ad tech, entering 2026, we continue to see traffic expansion, deeper penetration across multi-verticals and ongoing model optimization to drive revenue growth. These drivers are mutually reinforcing and support our expectation for very strong double-digit year-over-year growth for BIGO Ads for the full year. On our e-commerce SaaS business, we continue product capability development, rapid penetration in cross-border merchants in key markets and gradual expansion into new markets. We expect our SaaS revenue to sustain double-digit growth. Taken together, these three engines will put our top line back on a stable and positive year-over-year growth trajectory and enable us to tap into much broader long-term market opportunities. Looking at our profitability outlook for 2026, we expect stable operating profit contribution from live streaming. With live streaming returning to growth and continued cost optimization, we expect live streaming to continue generating improving profit, although we do expect to selectively reinvest some incremental profits into new social product lines. Our ad tech business, particularly the third-party Audience Network, is in a high-velocity growth phase, which requires near-term investments in R&D, sales, network and computing infrastructure. Given the healthy unit economics at this stage, we are confident we will remain profitable and potentially enhance economics as we scale. For e-commerce SaaS, as revenue grows we expect to continue narrowing operating losses with a clear path to loss reduction. Put together, we expect the group's non-GAAP operating income and EBITDA to continue improving similarly to 2025 and deliver steady year-over-year growth in the teens in 2026.

Operator, Operator

Your next question comes from Yuan Liao with CITICS.

Yuan Liao, Analyst, CITICS

Congratulations on the strong results. My question is regarding your advertising business. In the last quarter, both our first-party and third-party advertising businesses achieved accelerated growth, and you also guided that in the first quarter of 2026 you will realize mid-double-digit growth rate in your advertising business. Could management elaborate on the key drivers of your advertising growth rate in the first quarter of 2026?

Ting Li, Chairperson and Chief Executive Officer

Thank you for your question. As we mentioned in the prepared remarks, our advertising mix is well diversified across different industries, including lead generation ads for insurance, direct-to-consumer e-commerce and IAA, among others. Our current advertiser mix means that seasonality can be obvious, as shown by the very robust sequential ad spend from e-commerce and interim lead generation ads in Q4, while Q1 is typically sequentially softer, particularly due to our high Q4 comparison base. That said, we kept upgrading our core algorithms in Q4. We focused on improving our ROAS and CTR models by adding AI signals and multichannel user behavior data while refining our targeting and delivery strategies. We also expanded our algorithm optimization across specific industries, including lead generation, IAA and e-commerce, to boost efficiency. These improvements have lifted our advertiser retention rate, average ad spend per advertiser and attracted new advertisers. Such optimization also enabled us to effectively reach more traffic and increase monetization capability for publishers, which creates a flywheel effect. We believe this creates a solid foundation for Q1. That's why even in a seasonally softer quarter, we still expect BIGO Ads to deliver mid-double-digit year-over-year growth as implied in our current Q1 guidance.

Operator, Operator

Your next question comes from Brian Gong with Citi.

Brian Gong, Analyst, Citi

Congratulations on solid results. Management mentioned that third-party scale is expected to reach over USD 1 billion in 2028, which is a very positive number. What are the drivers behind these numbers? And how should we think about long-term profitability of the third-party business?

Ting Li, Chairperson and Chief Executive Officer

Thank you, Brian. Yes, we disclosed our midterm strategic goal for BIGO Ads. The flywheel effect and the mutual reinforcement across traffic, advertiser demand and algorithm optimization, together with our monetization strategies, will continue to be long-term drivers for BIGO Ads' development. Specifically, on the traffic side, we expect further organic traffic growth as we integrate with a rising number of SDK publisher partners and mediation platforms. We'll continue to expand multichannel traffic and iOS traffic. We will also accelerate our penetration into the U.S., Europe and Japan and potentially other new regions. On the demand side, in addition to our current verticals, we're exploring new verticals and sub-verticals of lead generation, IAA and e-commerce, and we expect to increase both the number of clients and customer density within each vertical. On the platform side, with rapid expansion in traffic and demand, we are continuously iterating and optimizing our algorithm and data capabilities, driving more vertical-specific optimizations and enhancing bidding and delivery strategies. All of these initiatives are moving forward in parallel and reinforce each other. This is the first time we are disclosing our midterm strategic goals for BIGO Ads. The team is talented, and the company has dedicated additional resources to achieve this goal. We delivered outstanding results in 2025 and the team is fully committed and pushing aggressively toward our strategic targets for 2026 and beyond. We remain highly confident in the continued high-velocity growth of BIGO Ads, particularly the third-party Audience Network proportion.

Operator, Operator

The next question comes from Xueqing Zhang with CICC.

Xueqing Zhang, Analyst, CICC

My question is on Shopline. Can management provide more color on the current business momentum of Shopline and the key drivers behind its growth? And how should we think about the path towards narrowing losses and eventually achieving breakeven both in terms of strategy and timeline?

Ting Li, Chairperson and Chief Executive Officer

Thank you. We remain optimistic on the long-term prospects of the SaaS-based e-commerce sector. Unlike walled garden marketplace platforms, Shopline provides an open and extensive solution to merchants through which merchants can have full data ownership for advanced operations. Distinctive to traditional SaaS monetization models, we do not charge by usage per person; we realize our value by empowering merchants to grow GMV, and our monetization is based on the take rate of that growing GMV. In the past several years, Shopline's core mission has been product excellence, and we've made substantial R&D investments to evolve from a storefront builder to a full-stack e-commerce ecosystem, seamlessly combining SaaS infrastructure, payments and integrated marketing tools into one powerful closed loop. Since last year, our R&D investment has greatly stabilized, and cross-border merchants, particularly brand customers, have grown rapidly. Revenue and gross profit growth has driven improving operating leverage, resulting in a significant reduction in Shopline's operating losses. We believe we are past business model validation. Now our rising gross profit has put us on a clear and sustainable path to breakeven. We remain fully committed to achieving breakeven for Shopline in 2028.

Operator, Operator

The final question today comes from Raphael Chen with BOCI Research.

Yiqun (Raphael) Chen, Analyst, BOCI Research

We noticed that the company distributed an additional cash dividend this quarter. Could management share the underlying considerations behind this? Also, given current valuation, does the company intend to further accelerate share buybacks?

Alex Liu, Vice President of Finance

Thank you, Raphael. Looking back at 2025, capital return execution has been robust. Under our current shareholder return program, we paid out approximately $197 million in dividends and repurchased approximately $135 million worth of shares throughout the year, bringing our total shareholder returns to over $330 million. That represents around 10.9% of our current market cap, which we believe is a very competitive level within the industry. In light of our strong operating performance and double-digit improvement in our non-GAAP operating profit in 2025, the Board approved an additional cash dividend of approximately $20 million on top of our regular quarterly dividend schedule. This demonstrates strong confidence in operating performance and our ongoing commitment to drive operational improvement and enhance shareholder returns. On buybacks, we nearly doubled our repurchase execution in Q4, buying back an additional $67.4 million in one quarter. We believe we remain undervalued, and we will continue to actively execute our buybacks going forward. Looking forward, we are entering a new phase of growth with our revenue back to growth and operating profits continuing to improve. We believe shareholders can look forward to sharing in greater returns. That was the last question. Thank you so much for joining this call. We look forward to speaking with everyone next quarter. Thank you.

Operator, Operator

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.