[Management View]
Aurora Mobile reported a total revenue of 89 million RMB for Q1 2025, marking a 38% increase year-over-year. The company achieved the highest Q1 revenue since transitioning to a pure SaaS model. Gross profit increased by 27% year-over-year, and gross margin improved by 520 basis points quarter-over-quarter. EngageLab signed contracts worth 63 million RMB in Q1 2025, bringing the total cumulative contract value to over 110 million RMB. EngageLab's recognized revenue grew by 127% year-over-year, with customer count up 25% to 848, spanning over 40 countries and regions.

[Outlook]
Aurora Mobile projects Q2 2025 revenue to be between 87.5 million RMB and 90.5 million RMB, representing a 10%-14% year-over-year increase. The company plans to continue its global expansion and invest in its enterprise AI agent platform.

[Financial Performance]
- Total Revenue: 89 million RMB, up 38% YoY
- Gross Profit: Up 27% YoY
- Gross Margin: Improved by 520 basis points QoQ
- EngageLab Revenue: Up 127% YoY
- Developer Services Revenue: Up 39% YoY, down 12% QoQ
- Subscription Services Revenue: 53.5 million RMB, up 26% YoY, down 2% QoQ
- Value-Added Services Revenue: 8.9 million RMB, up 269% YoY, down 46% QoQ
- Financial Risk Management Revenue: 22.2 million RMB, up 64% YoY, up 36% QoQ
- Market Intelligence Revenue: Down 26% YoY, up 4% QoQ
- Operating Expenses: 60.6 million RMB, up 14% YoY, flat QoQ
- Adjusted EBITDA: Positive for the seventh consecutive quarter

[Q&A Highlights]
Question 1: I have one question related to the EngageLab. First of all, congrats on the EngageLab business achieving a breakthrough contract value of RMB 110 million in Q1. So if I work back the calculation correctly, that's the total newly signed contract value was more than RMB 60 million in Q1. So I would appreciate if management could provide some guidance outlook of the EngageLab business going forward?

Answer: Okay. Thanks, Calvin. Let me take this call -- take this question. I guess your calculation is spot on. So at the back of achieving this CNY 60 million contract in a single quarter, there are a few matters that I'll share with you and everyone on the call. One is the fact that we have proven to have the ability to win big contracts on the global stage. Just to clarify, this newly signed CNY 60 million contract in Q1 2025 were from different customers outside of China. And second, our product and services are indeed meeting the needs of global customers. Customers are willing to sign multi-year contracts with us, which is another testament to the superior quality of our services and products. And this customer has shown great long-term commitment towards our products and services. And if you ask me whether we'll get another CNY 60 million new signed contract in Q2, I guess my frank and honest answer is unlikely at this stage, which is a realistic expectation. But this CNY 60 million a quarter taught us a few very useful lessons to make significant wins going forward. It shows that we have the technical capability and the know-how to win big contracts. Our products are superior to competitors in the market. So with our growing presence on the global stage, other overseas customers will start to look at EngageLab differently. And maybe this CNY 60 million new contracts a quarter is not too far away after all. I hope this answers your question, Calvin.

Question 2: This is Marco from Gelonghui Research. Congrats to the company on another strong quarter. I have one question for the management. So this quarter, your revenue grew 38% year-over-year, gross profit grew 27% year-over-year and your adjusted EBITDA is on the seventh consecutive quarter of positive number. However, the company is still recording net loss. So my question is that when do you think we can expect your quarterly net profit?

Answer: Marco, let me take your question. I think you are right to point out a few key numbers. Let me recap in this quarter, what we have is revenue grew by 38%, gross profit grew by 27% and our OpEx only grew by 14%. And this business model has a perfect relationship to generate profitability. In short, you may conclude that we earn more than what we spend. But if I peel further deeper beyond the surface, one very important finding that I'll share with you and the others on the call is that there are certain expenses that we need to spend now in order to fill the continuous growth trajectory. Let me explain more. For example, R&D, and it is vitally important that we continue to research and develop and continue to fine-tune our product. And one great example is the financial risk management, where the business grew by 64% year-over-year. And this is mainly due to product upgrades that we have made. And this upgrade resulted in more customers using and consuming our products. Therefore, we have the 65% revenue growth. On the flip side, if we stand still and with no intention to increase our R&D activities, our product will not have evolved, and we will not get a 65% revenue growth. And secondly, marketing expenses is another crucial expense for any company needing to spend in order to broaden global reach and expansion. We need to have EngageLab brand name known globally. It was because of the marketing campaign that we had, we were able to grow the business with our borders into 40 countries and regions by March 31, 2025. As a matter of fact, if you want net profit next quarter, I think we can do that. All we need to do is just to freeze our R&D and marketing expenses. However, this will come at the expense of product development and continuous market spend, and this will certainly hurt our ability to grow our revenue in the near future. Therefore, we need to strike a balance between spending diligently enough so that we can have the firepower to fuel our continuous revenue growth in the next 12 or 24 months. And so long as we continue to scale our business, the results will come soon or later. And I hope this answers your question, Marco?

[Sentiment Analysis]
Analysts were positive about the company's strong revenue growth and global expansion, particularly with EngageLab. Management maintained a confident and optimistic tone, emphasizing their strategic investments and long-term growth potential.

[Quarterly Comparison]
| Metric | Q1 2025 | Q1 2024 | QoQ Change | YoY Change |
|---------------------------------|------------------|------------------|------------|------------|
| Total Revenue | 89 million RMB | 64.5 million RMB | +38% | +38% |
| Gross Profit | 27 million RMB | 21.3 million RMB | +27% | +27% |
| Gross Margin | 30.3% | 25.1% | +520 bps | +520 bps |
| EngageLab Revenue | 63 million RMB | 27.8 million RMB | +127% | +127% |
| Developer Services Revenue | 62.4 million RMB | 44.9 million RMB | -12% | +39% |
| Subscription Services Revenue | 53.5 million RMB | 42.5 million RMB | -2% | +26% |
| Value-Added Services Revenue | 8.9 million RMB | 2.4 million RMB | -46% | +269% |
| Financial Risk Management Revenue | 22.2 million RMB | 13.5 million RMB | +36% | +64% |
| Market Intelligence Revenue | 5.1 million RMB | 6.9 million RMB | +4% | -26% |
| Operating Expenses | 60.6 million RMB | 53.2 million RMB | Flat | +14% |
| Adjusted EBITDA | Positive | Positive | - | - |

[Risks and Concerns]
- Market Intelligence revenue decline due to weak domestic demand for Chinese app data.
- Potential impact on future revenue growth if R&D and marketing expenses are reduced.
- Dependence on global market expansion and customer acquisition for sustained growth.

[Final Takeaway]
Aurora Mobile delivered a strong Q1 2025 performance with record revenue and significant growth across multiple business segments. The company's strategic focus on global expansion, particularly through EngageLab, has yielded impressive results. While the company continues to invest in R&D and marketing to fuel future growth, it remains committed to maintaining positive adjusted EBITDA. Investors should monitor the company's ability to sustain its growth trajectory and manage expenses effectively to achieve long-term profitability.