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Ladies and gentlemen, thank you for standing by. Welcome to the Aurora Mobile second quarter 2026 earnings 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. To ask a question during the session, you would need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would like now to hand the conference over to your host today, Christian Arnell. Please go ahead.

Thank you. Hello, everyone, and thank you for joining us today. Aurora Mobile's earnings release was distributed early today and is available on its 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 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'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 second quarter earnings call. Before I comment on our Q2 results, I would like to remind everyone that we have uploaded the quarterly earnings deck on our IR website. You may refer to the deck as we proceed with the call today. As we've done in the past, the suitable description that I would give to the second quarter of 2026 is our RMB 100 million revenue quarter. The reason for this narrative is obvious. Our achievements in the second quarter of 2026 are as follows. Firstly, for the third time in our history, we recorded SaaS business revenue in excess of RMB 100 million in a single quarter. This was fueled by the highest Developer Services revenue in history of RMB 79.9 million in this quarter. Secondly, our global flagship product, EngageLab, has its best quarter yet.

The EngageLab's ARR for June 2026 has scaled to a record high of $14.6 million, representing 170% year-over-year growth. Thirdly, gross profit grew by 16% year-over-year. Gross margin improved by 197 basis points between the years. Having top-line growth alone is not enough. In this quarter, we delivered the fifth consecutive quarters of U.S. GAAP net profit. Last but not least, operationally, we brought in net cash inflow of RMB 23.3 million this quarter. This marks a strong second quarter performance building on our Q1 results released in May. Taken together, the first two quarters of 2026 validate our robust growth momentum, and we remain on track to deliver against our target for a highly promising full year 2026. Let me now share more on the business aspects. RMB 100 million revenue a quarter. Yes, we made it again. This milestone came one quarter earlier than what we previously anticipated.

We are very pleased with this early pleasant surprise. Our total Q2 group revenue reached RMB 101.2 million, representing a strong 13% year-over-year growth. This RMB 100 million of quarter revenue is a very important milestone for us. It signifies a few key messages that I think are important that I share with you all today. Firstly, the RMB 100 million quarterly revenue milestone marks a landmark validation of Aurora Mobile's pure SaaS strategic transformation, forming a durable, larger revenue foundation. Secondly, top-line expansion is anchored by high-margin recurring Developer Subscription Services revenue supported by solid customer retention and rising enterprise demand. Thirdly, dual growth engines, domestic developer ecosystem, and fast-growing global EngageLab business jointly drive scalable cross-market revenue expansion. Fourthly, greater revenue scale improves operating leverage, underpinning our consistent profitability trend and long-term path of sustainable shareholder returns.

In this quarter, Developer Services recorded a great 24% revenue growth year-over-year, but vertical applications revenue decreased 16% year-over-year. Developer Services revenues, which consist of subscription service and Value-Added Services, delivered excellent performance in this quarter. Our core business, Developer Subscription Services, delivered another historic high quarterly revenue number of RMB 70.7 million, representing growth of 32% 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 ARPU. In short, the momentum of this business is very strong, and I do have high hope of the continued growth in many more quarters to come. Now, let's move on to the update on our global flagship product, EngageLab. EngageLab, being the jewel of Aurora Mobile's growth engine, has again brought in excellent numbers every quarter since its launch.

In this quarter, the highlights include, firstly, EngageLab recorded another quarter of tremendous growth where the ARR reached a new milestone of $14.6 million as of June 2026. This represents a 170% year-over-year growth. Secondly, EngageLab broke another record where the cumulative signed contract value has exceeded RMB 200 million by the end of Q2 of 2026. This speaks volume in terms of the market acceptance and total addressable market for this product. For sure, we are very pleased with this achievement. Nevertheless, we will continue to work hard and smart to conquer more markets and winning more contracts. In Q2 alone, we inked more than RMB 27.4 million worth of new contracts. Certainly, more and more new global customers are being converted and switched to EngageLab. The EngageLab customer number has exceeded 2,100 as of the 30th of June 2026.

The expansion of EngageLab across the globe has been very successful. Fourthly, the recognized revenue for EngageLab in Q2 of 2026 reached RMB 27.5 million, representing an outstanding 186% growth year-over-year. Also, in this quarter, there was a new addition to the EngageLab family where we officially launched Silent Auth, an advanced password-less authentication solution designed to complement existing SMS OTP services and elevate identity verification for the global market. Silent Auth provides a more dependable approach to phone-based authentication across three key use cases, namely firstly, faster registration and login. Secondly, secure verification for high-risk operations. And thirdly, marketing fraud prevention. We view the launch of Silent Auth not only enriches EngageLab's omni-channel customer engagement portfolio, but also reinforces Aurora Mobile's commitment to providing global enterprises with stable, efficient, and intelligent solutions.

Going forward, it is my goal that EngageLab will continue to leverage advanced technologies to help businesses build stronger trust-based customer relationships and accelerate global growth. Within subscription revenue, some of the notable wins in this quarter include, but are not limited to, Bank of China (Hong Kong), CXMT, DeepSeek, Mingshun Zhenzhen, and HashKey. Value-Added Services revenues were RMB 9.2 million, up 36% quarter-over-quarter, but down 15% year-over-year. The quarter-over-quarter spike was mainly attributable to the traditional quarterly online shopping of 618 in Q2. I think it is also time for me to provide an update on the progress and updates we have on our enterprise AI agent platform, GPTBots.ai. Recently, we released a major production-grade upgrade to GPTBots.ai, tackling the key industrial limitations whereby conventional AI agents only support conversations and demos, lacking deep business system integrations and end-to-end task execution.

The upgrade centers on three pillars. A graph-enhanced knowledge base for context-aware business analysis, autonomous workflow automation across 14 communication channels via agent collaboration, and robust enterprise governance with audit trails, runtime safeguards, and mandatory human validation for live deployments. This product advancement supports GPTBots global expansion through the following. Firstly, transforms the platform into a production-ready solution to improve overseas sales conversion. Secondly, native compatibility with global channels, including WhatsApp, Slack, and Microsoft Teams, extends market reach across North America, Europe, and Southeast Asia. Thirdly, strengthened governance satisfies international data compliance requirements, enabling deals with multinationals and regulated sectors. Fourthly, optimized knowledge processing reduces customization and onboarding costs for global clients and improves project gross margins. We believe the upgrade puts Aurora Mobile in a strong position to capture market share as enterprises worldwide transition from AI testing to large-scale deployment of agentic AI.

As you can see, besides growing the business globally, we have been busy on the R&D fronts. Our team has not taken our eyes off the need to continue to upgrade and create new products and services to supplement our entire suite of service to our customers. This is important because we will not rest on our laurels amidst our achievements to date. We must remain attuned to the latest developments across global markets and implement necessary product upgrades, adjustments, and innovations as circumstances demand. Only by doing so can we stay relevant and meet the evolving needs of our global customer base. Collectively, these efforts form critical building blocks to sustain ongoing revenue growth and advance our path toward improved profitability. 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.

Okay. Thanks, Chris. For vertical application, that includes Financial Risk Management and Market Intelligence. Overall, vertical application revenue decreased year-over-year and quarter-over-quarter. Within vertical application, Financial Risk Management revenue decreased 17% year-over-year and pretty much remained flat quarter-over-quarter. We are still operating in a tough business environment, and we are making the necessary adjustment on go-to-market and various strategies. The customers that we sign up or renew in Q2 include, but not limited to, [Non-English content], and many more licensed credit or financial institutions throughout China. Market Intelligence revenue decreased 11% quarter-over-quarter and 12% year-over-year due to the continued weak market demand for Chinese APP data. This result is in line with our expectation. Coming to the other P&L items.

Our gross profit recorded another strong Q2 quarter with 16% year-over-year growth to RMB 69.2 million. Our gross margin has also recorded significant improvement by 197 basis points year-over-year. This improvement reflects better product mix and tighter operating control discipline. Higher gross profit give us greater flexibility to invest in growth while absorbing external cost pressures. Most importantly, it proves that we can convert business scale into sustainable profit generation, which is critical to driving shareholders' return over time. On net profit. Following the great momentum we had in Q1 of 2026, we recorded yet another GAAP net profit quarter, making it fifth consecutive quarter of GAAP net profit. We are well pleased with how this quarter has played out financially, from top-line growth to bottom-line profitability. On to operating expenses. Q2 OpEx was at RMB 67.6 million, up 2% quarter-over-quarter and up 11% year-over-year.

The OpEx is within our forecast, and we are happy at the level where they are. I will now dive deeper into the individual OpEx category. R&D expenses increased by 13% year-over-year to RMB 29.3 million, mainly due to the higher staff cost and associated expenses. Technical service fees also contributed to the year-over-year increase. Selling and marketing expenses increased by 25% year-over-year to RMB 28.3 million, mainly due to the higher staff costs driven by overseas business expansion. G&A expenses decreased by 18% year-over-year to RMB 10 million, mainly due to the decrease in bad debt provision resulting from improved collection efficiency. Besides, there was no loss on disposal on property and equipment in Q2 of 2026, while such a loss was incurred in the same quarter last year. Next, I will share four other very important KPI that we closely monitor.

Our net dollar retention rate, a commonly used KPI for SaaS company, stood at 106% for our core Developer Subscription Services business for the trailing 12-month period ended June 2026. This is the highest NDR number that we have recorded to date. This is an important signal of existing customer health. This record NDR speaks to strong product stickiness, expanded usage from our install base, and a success up-sell and cross-selling activity within our current client. While NDR can fluctuate quarter-over-quarter, given customer-specific renewal dynamics, but we are very encouraged by this peak result, and we are focused on sustaining healthy retention trends ahead. Secondly, another financial KPI for tracking the performance of SaaS company is total deferred revenue. This represent cash collected in advance from customers for future contract performance, and it stood at RMB 181.9 million as of June 30th, 2026. This is also a historic high balance.

This balance acts as a high-quality leading indicator. It gives us good visibility into the near-term revenue stream and strengthens our operating cash flow profile by bringing cash collection forward relative to the income statement recognition. Thirdly, we continue to maintain a healthy level of AR turnover days of 37. This low AR turnover days ensure we have great cash liquidity while mitigating the risk of bad and doubtful debts. On to cash flow, another important financial KPI for us to manage the business. For the quarter ended June 30, 2026, we recorded net operating cash inflow of RMB 23.3 million. Having operating net cash inflow is very important, as it validates our earning quality and gives investors and shareholders greater confidence in the sustainability of the reported profit. Let us now recap on Chris' comment on our RMB 100 million revenue quarter.

In the second quarter of 2026, we achieved another quarter of GAAP net profit in 2026. This marks our fifth consecutive quarters of net profit, a great trend for healthy, profitable, and sustainable business. Two, our core Developer Subscription Services business has outdone itself again by recording another historical high of RMB 70.7 million revenue in this quarter. The jewel of Aurora Mobile, EngageLab, continues to scale rapidly across the globe. Our EngageLab business exceeded its past record in this quarter. The ARR in June 2026 reached $14.6 million. This represents a stunning 170% year-over-year growth. Fourth, our gross margin grew by 197 basis points year-over-year, and gross profit grew by 16% year-over-year.

Number five, our net dollar retention for core Developer Services stood strongly at 106%, another historic high. Number six, equally important was the net cash inflow that I mentioned of RMB 23.3 million we brought in from operating activities.

As I have alluded in the last quarter's earnings call, Q1 numbers we have recorded paved the way for a great financial year of 2026, and this momentum we built in Q2 of 2026 was truly phenomenal. The quarterly operating and financial results that Chris and I shared during the call today reflect the considerable strength across our business. We will continue to execute against our established strategic priorities. As we deliver on our execution roadmap, we are confident these operational wins will translate into sustained improvement in our financial statement. Lastly, before I conclude, I will give a quick update on the share repurchase plan. In the quarter ended June 30, 2026, we repurchased 44,000 ADS. Cumulatively, we have repurchased a total of 485,000 ADS since the start of our repurchase program. This concludes our prepared remarks. We are happy to take your question now. Operator, please proceed.

Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced, and to withdraw your question, please press star one one again. The first question comes from Calvin Wong with Spica Capital. Your line is now open.

Good evening, management. Thank you for taking my question. Based on the numbers released today, we note that you have a very strong Q2 quarter. Can I get the management to shed some light on the Q2 quarter and perhaps maybe some hints on how Q3 and Q4 will fare for 2026?

Hi, Calvin. Thanks for your question. Let me take your question today. You are right. The Q2 numbers that we just had was a good quarter for us. If I may take a few minutes or just probably just one minute to summarize here, the three key highlights for Q2 of 2026 would be, number one, our quarterly revenue exceeded RMB 100 million mark. Number two, we recorded the fifth consecutive quarters of U.S. GAAP profit. And number three, operating activities brought in net cash inflow of RMB 23.3 million. Hitting all these three milestones in one quarter is significant. It reflects a thriving business where revenue is at a high level. We are delivering GAAP profitability while we also generate net cash inflow, which is very important. Chris and I are very pleased with how this quarter has unfolded.

As we look into the rest of 2026, our stance remains cautiously optimistic. We are encouraged by the business growth trajectory with the global EngageLab business delivering standout momentum. Meanwhile, we will continue to exercise strict cost discipline. Even so, we will still allocate resources selectively to high-priority initiatives that we believe are critical to driving durable and long-term sustainable growth. Hope this answered your question, Calvin.

Very clear. Thank you.

Thank you. Our next question is going to come from Jack Sun with Gelonghui Research. Your line is open.

Thanks management for taking my question. I am Jack Sun from Gelonghui Research. I noticed from the press release by the company and the commentary made by Chris during the call, we are launching various new services such as Silent Auth and Modellix, together with some upgrades to GPTBots. My question is, are they necessary? How do they benefit the company as a whole?

Hi, Jack. Good to hear from you. Let me take this question. Those services and upgrades that you mentioned are purpose-built upgrades built upon our existing customers' engagement and AI platforms. They are not disconnected new ventures. This is an important differentiator when compared to others in the space. We are not building all these new tools or services just to follow the flavor of the month trend. Instead, every single new capability ties back to our core business. Take, for example, Silent Auth. They expand EngageLab value proposition beyond traditional messaging. It reduces user login drop-off, it strengthens the fraud defense, and gives us high-value authentication revenue from our existing global enterprise client. For Modellix that you mentioned also, it addressed the fragmentation enterprise face juggling different AI model vendors.

It acts as our unified AI model gateway, cutting integration overheads for customers, and it simplifies billing and operation and feeding multi-model capability directly into the GPTBots to make our AI agent more powerful for end user. Just to share, even our own internal IR team, we use Modellix to prepare the Q2 ER deck that we uploaded to the IR website today. It is simply because Modellix has so many different large language model that we can pick and choose from within one single platform. There is no need to switch between different large language model accounts for different companies. It is also very easy to use. So I will sincerely encourage everyone on this call to try out Modellix too. As for our GPTBots platform upgrades, it advances our enterprise AI agent offering. It expands multi-agent orchestration, multi-model workflow, and no-code tooling.

This drive upsell among our large existing customer base and attract new clients seeking production-ready AI automation, and not just AI prototypes. If I may summarize, collectively, I believe these upgrades or new product that you mentioned, they reinforce our integrated platform strategy where deeper stickiness within our current account, it helps higher our average contract value, and also this represent a new venture, a new revenue stream, while leveraging our existing global sales compliance and infrastructure footprint. Hope this answer your question, Jack.

Yeah. That's very clear. Thanks a lot. Operator, I have no more question.

Thank you.

Thank you. As a reminder to ask a question, please press star one one on your telephone. I am showing no further questions at this time. I will now turn the call back over to Christian for closing remarks.

Thank you everyone for joining the call tonight. If you have any further questions or comments, please don't hesitate to reach out to the IR team. This concludes the call. Have a good evening. Thank you very much.

Thank you. This does conclude today's conference call. Thank you for participating, and you may now disconnect.

Ladies and gentlemen, thank you for standing by and welcome to the Aurora Mobile first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. 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. 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/or 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'd now like to turn the conference over to Mr. Luo. Please go ahead.

Thanks, Christian. Hi, everyone. Welcome to Aurora Mobile's 2026 first quarter earnings call. Before I comment on our Q1 results, I would like to remind everyone that we have uploaded the quarterly earnings deck on our IR website. You may refer to the deck as we proceed with the call today. As we've done in the past, the suitable description that I would give to the first quarter of 2026 is, a good spring brings a good year.

Within this first quarter of 2026, our achievements are as follows. Firstly, in this quarter, the group recorded revenue of CNY 93.3 million, representing a solid 5% year-over-year growth. Secondly, our global flagship product, EngageLab, continues to shine. The EngageLab ARR for March 2026 surged to a record high of $11.7 million, representing 172% year-over-year growth. Thirdly, gross profit grew by 13% year-over-year.

Gross margin improved by 490 basis points between the years. Along the way, we delivered the fourth consecutive quarters of GAAP net profit. Trust you would agree with me. The Q1 that we have delivered was indeed a fairly good set of financials, and this is a great way to kick off a brand-new 2026 financial year. Let me now share more on the business aspect. Q1 of each year is always the top quarter for majority, if not all, of businesses. Just to share, within the first quarter of the year, we have the shorter month of February, coupled with the long Chinese New Year holidays, business activities tend to be slower at this time of the year.

Despite the slower quarter of the year, we worked harder and smarter and managed to pull through with relatively excellent results. Our total Q1 group revenue reached CNY 93.3 million, representing a solid 5% year-over-year growth. In this quarter, developer services recorded great 15% revenue growth year-over-year, but vertical applications revenues dipped 19% year-over-year. Developer services revenues, which consist of subscription service and Value-Added Services, delivered strong performance with 15% growth year-over-year, but decreased 6% quarter-over-quarter.

Our core business, Developer Subscription Services, delivered another quarter of excellent revenue number of CNY 64.9 million, representing growth of 21% year-over-year and 5% quarter-over-quarter. The year-over-year revenue growth was mainly driven by increases in both customer number and ARPU. In this quarter, subscription revenue recorded its highest level in history yet, at CNY 64.9 million, surpassing the CNY 61.9 million high level in Q4 of 2025. Let's move on to the update on our global flagship product, EngageLab.

As we have seen in the past 12 to 18 months, EngageLab is now the indisputable primary driver of revenue growth for Aurora Mobile, and it is on great acceleration path. First, EngageLab ARR has refreshed its own record and achieved a new milestone of $11.7 million as of March 2026. For the second consecutive quarter, we recorded very remarkable year-over-year ARR growth. In this quarter, the growth was 172%. Secondly, EngageLab continues to record another strong quarter. Cumulated signed contract value amounted to RMB 185 million by the end of Q1 of 2026.

In Q1 alone, we won and signed up about RMB 28 million worth of new contracts. It has again shown the great growth momentum for this business. Thirdly, we continue to witness the influx of new global customers signing up to purchase EngageLab. In this quarter alone, we have converted and won over 223 new customers all over the world. The customer number has grown by 120% year-over-year to 1,864. We are very pleased with the new wins.

Fourthly, the recognized revenue for EngageLab in Q1 of 2026 reached CNY 24 million, representing an outstanding 210% growth year-over-year. We continue to see great strength in EngageLab business expansion. The revenue growth, new wins, and great ARR numbers were all results of the great work done by the team to meet and exceed overseas customers' needs and expectations quarter-over-quarter. We saw more customers converted to using EngageLab platform due to the superior suite of products we have to address their needs.

Equally important is our service-oriented mindset to attend to and resolve customer issues on a timely basis. Let me take a few minutes to share with you on our Aurora Mobile competitive advantages based on what I have witnessed for the past 18 to 24 months, and why we can grow the EngageLab revenue with strength quarter-over-quarter. Firstly, over the years, we have built mature, highly concurrent, and elastically scalable underlying infrastructure polished through years of commercial operation.

This infrastructure supports massive data processing, real-time delivery, and global traffic scheduling for our customers. Secondly, we have completed global market layout at an early stage and have established solid brand recognition in overseas digital service sectors. Thirdly, we possess exclusive capabilities helping our customers to unify their full lifecycle user data, covering acquisition, activation, engagement, retention, and conversion.

Fourthly, our products are equipped with self-developed native AI technology deeply embedded in full-product scenarios, together with standardized automated workflow engines. Our solutions help customers boost operational efficiency, realize intelligent management, and cut labor costs significantly. Fifthly, we have spent considerable effort ensuring we fully comply with global stringent data regulations, including privacy protection, cross-border data transmission, and regional data residency rules, meeting market access requirements across Europe, America, Southeast Asia, and other key regions.

Sixth, equally important is our lightweight architecture features easy access and low development barriers, friendly to developers and enterprise technical teams for fast integration and launch. It can times the lower potential customers' reaching decision barriers and greatly improve market replication efficiency. I believe these competitive advantages will no doubt solidify our position in the global user engagement space and market. These advantages are pivotal to long-term revenue acceleration in the years to come.

On to our global expansion roadmap. We made great progress in Q1 of 2026. Within the first three months of 2026, we managed to sign up and finalize nine other new overseas partners. These overseas partners will help us to sell into the local customers in their respective countries. As of now, we have 26 independent partners globally working together to help us further expand our reach and footprint to more overseas customers.

Within subscription revenue, some of the notable wins in this quarter include, but are not limited to, the largest courier delivery company in the world for their China operations, SF Express, Guotai Junan Securities, Somu Security, and Cheg International. Value-added services revenues were CNY 6.7 million, down 53% quarter-over-quarter. The decrease was mainly attributable to the absence of the traditional quarterly online shopping festivals, namely the Double 11 or Double 12 in Q1. Let me pass the call over to Shan-Nen Bong, who will take you through the metrics on vertical applications and financial performance for this quarter.

Okay. Thanks, Chris. Next, I'll go over the revenue for vertical applications that includes Financial Risk Management and Market Intelligence. Overall, vertical application revenue decreased year-over-year and quarter-over-quarter. Within vertical application, Financial Risk Management revenue decreased 18% year-over-year and 29% quarter-over-quarter. The recent regulatory updates within the financial industry have resulted more headwinds for this segment of the business, but we are making necessary adjustments in terms of products and go-to-market approach to move forward.

Despite the tough operating environment, we still managed to win new contracts as the demand for our products and services is still there. The customers that sign up or renew in Q1 include, but not limited to, Fenqile, Xiaoying Puhui, Ping An Puhui, Zhonglian Xiaojin, and many more licensed credit or financial institutions throughout China. Market intelligence revenue increased by 3% quarter-over-quarter but decreased by 25% year-over-year due to the weak market condition and demand for Chinese APP data. This result is in line with our expectations. Coming to the other P&L items.

Our gross profit recorded another good quarter with 13% year-over-year growth. The remaining CNY 66.3 million gross profit that we had in Q1 gave a great foundation for the rest of the year in 2026. Our gross margin also recorded significant improvement by 490 basis point year-over-year. This again signifies the healthy business model that we are operating in. With this healthy level of margin, we are poised to record good bottom-line numbers going forward. On net profit, following the great momentum that we had in 2025, we started year 2026 with another GAAP net profit quarter.

This is a great achievement as Q1 is a cyclically slow quarter for each year. On to operating expenses. Q1 OPEX was at CNY 66.1 million, down 3% quarter-over-quarter, but up 9% year-over-year. The OPEX is within our forecast, and we're happy with the level where they are. I'll now dive deeper into the individual OPEX category. For R&D expenses, it increased by 17% year-over-year to CNY 28.7 million, mainly due to the higher staff cost and associated expenses. Technical service fee also contributed to the year-over-year increase.

Selling and marketing expenses increased by 11% year-over-year to CNY 25.9 million, mainly due to the higher staff cost driven by overseas business expansion. G&A expenses decreased by 9% year-over-year to CNY 11.5 million, mainly due to the decrease in bad debt provision resulting from improved collection efficiency. Next, I'll share three very important KPI that we closely monitor. On net dollar retention rate, a commonly used KPI for SaaS company, stood at 103% for our core developer subscription business for the trailing 12-month period ended March 31st, 2026.

This is the third consecutive quarter where the NDR number has exceeded the 100% threshold. This is the best testimony on the great product and services we are selling. In summary, customers continue to increase their spending with us over time. Secondly, another financial KPI for tracking the performance of SaaS company is the total deferred revenue. This represents cash collected in advance from customers for future contract performance, and it stood at RMB 173.9 million as of March 31st, 2026. This high deferred revenue balance is the best proof that SaaS business model that we are in is working well.

In short, we have secured CNY 173.9 million worth of future revenue as of March 31st, 2026. Thirdly, we continue to maintain a healthy level of AR turnover days at 42 days. This low turnover days ensure we have great cash liquidity while mitigating the risk of bad and doubtful debts. Cash collection is one of the key KPIs that we have for our sales team. Let us now recap on Chris' comment on, "A good spring brings a good year," at the beginning of this call. In view of the slower quarter in Q1 of each year, we have achieved and delivered a terrific set of Q1 numbers.

Firstly, we achieved GAAP net profit in the very first quarter of 2026. This marks our fourth consecutive quarter of net profit. Secondly, our core developer subscription business achieved a historical record high of CNY 64.9 million revenue this quarter. Third, our flagship product, EngageLab, continued to scale rapidly across the globe. Our EngageLab business exceeded its own past record in this quarter. The ARR in March reached $11.7 million. This represents a stunning 172% year-over-year growth.

Fourth, gross margin grew by 490 basis points year-over-year, the highest it has been for the past eight quarters, and the gross profit grew by 13% year-over-year. Last but not least, our net dollar retention for core developer service stood strongly at 103%. Although Q1 has been a tough quarter, but we have been resilient and managed to navigate through these rough waters. In Q1 2026 result that we have presented today's big volume, we deliver revenue growth, and our EngageLab business continued to scale new highs, and this lays solid foundation for the rest of 2026.

We are very committed to expanding the business on a global level and continue to be highly disciplined in our spending. We believe this combination is the appropriate strategy to bring the business forward. Lastly, before I conclude, I'll give a quick update on the share repurchase plan. In this quarter, ended March 31st, 2026, we repurchased 42,000 ADS. Cumulatively, we have repurchased a total of 441,000 ADS since the start of our repurchase program. This concludes our prepared remarks. We are happy to take the question now. Operator, please proceed.

Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. One moment for our first question. The first question comes from the line of William Chan from Spiga Capital. Please go ahead.

Good evening, Edmund. Thank you for taking my question. Based on the Q1 numbers you have released earlier today, it is a really good set of financial statements. We have revisited and reanalyzed the company IR for the past five quarters. It appears that things are moving in the right direction operationally and financially.

The revenue, especially EngageLab, has been showing great growth momentum. Gross profits and margins are pretty solid. Most importantly, the company has turned a full-year profit in 2025 and again in this quarter. My question for the management is how we should look at Aurora Mobile for the financial year 2026. Thank you.

Hi, William. Let me take this question. Yes, you are right. We are very pleased with the Q1 results for the beginning of 2026, and you are right to point out too, for the entire financial year of 2025 and Q1 of 2026, we have been consistently delivering solid financial numbers quarter-over-quarter without fail. This has proven that the business model and the execution capability of the management are standing up to the test quarter-over-quarter and year-over-year. In the call earlier, you have heard Chris share on Aurora Mobile's competitive advantages in the market that propel the growth that we have seen today.

These competitive advantages are real and continue to fuel our growth acceleration in the future. Customers are switching to us and buy our services because of these advantages that we have in the marketplace. At this point, I'd like to add that maybe it is time now to re-look at Aurora Mobile and why it is time to invest right now. There's no doubt that the current valuation is at the low side. Let me share with you on our long-term valuation logic. I believe our valuation logic includes the following aspects.

One, our solid and foundational domestic core business delivers stable cash flow and strong cyclical resilience. Secondly, through our global flagship product, EngageLab, our scalable global SaaS expansion brings clear, predictable long-term growth curves. Through GPTBots.ai, the in-depth native AI integration empower us and our business to gain tech premium and valuation re-rating upside. Our exclusive full-scenario contextual platform builds replicable competitive moats and operational defensibility. Equally important is the alignment of outcome-based enterprise software trend.

This significantly enhance our long-term monetization capability and profit elasticity. What all this means is, I think Aurora Mobile should not be valued purely as a traditional infrastructure company, nor as a purely as a single point AI tool. Our corporate framework should reflect platform synergy, global SaaS growth, and AI upside altogether. I believe the above is a better way to view and value Aurora Mobile as a whole for now. Hope this answer your question, William.

Thank you. Thank you.

Thank you. Our next question comes from the line of Jack Sun from Gangan Research. Please go ahead.

Hi, Management. I'm Jack from Gangan Research. I look at the Q1 earnings with one particular focus on EngageLab. We have been seeing EngageLab growing every quarters with good numbers from customer numbers, contractual value signed to impressive ARR growth. My question for the Management is how much fuel is left in the tank for EngageLab? In other words, how long can this EngageLab growth can be sustained? Thanks.

Jack, let me take this question, too. Yeah, this is a good question, but a very tough one that you have for us today. My short answer to your question is, yeah, we still have a long way to go in terms of the growth of EngageLab. You're right, and a lot of people have been saying our EngageLab business has been growing from day one of its launch about three years ago. As of now, after three years, we are still growing, but we are only gaining a fraction of the market globally. Let me share with you on your question. Let me answer your question in two aspects.

Firstly, let's look at the geography. If we zoom further into Southeast Asia market, where we generate about 40% of EngageLab business, we are nowhere near market dominant position. What that means is the room for growth, even in just Southeast Asia itself, is huge. Overall, the global user engagement market is vast. Besides Southeast Asia, the other markets are sizable too. For example, Asia Pacific includes Australia and New Zealand, Middle East, and European market.

Right now, we are just at the tip of the iceberg. The market is so huge that we believe it can provide many years of growth to come. The second aspect is the industry that we are selling into. Again, as of now, we have not dominated any particular industry vertical at all. As a matter of fact, majority, if not all businesses in all industry vertical have needs to engage with their users. Let me share with you on the actual examples.

One, all apps will need to send notification to its user, be it promotional or simply inform its user to update the latest version of app. A second example is online merchant would like to send notification to its user on the timing of the merchant delivery. Coffee apps such as Starbucks and Luckin Coffee, both are our clients, informing customers that their lattes or americanos are ready to pick up. Fourthly, airline companies needing to inform their passenger on upcoming flight, the check-in gate or the boarding gate.

These are just some of the real-life examples that notifications are being deployed in daily life, and I'm sure you can appreciate its application. Notifications or user engagement are simply omnipresent for most, if not all, enterprise in all industry. Therefore, the market is there for us to capture with both hands. Back to your question, there's still a lot of fuel left in the tank for our EngageLab business. The EngageLab market landscape remains vast, which equips us with a substantial multi-year growth headroom for further penetrate for more markets and drive steady revenue growth. Hope this answers your question.

Yeah. That's very clear. Thanks a lot.

Thank you. As a reminder, to ask a question, you will need to press star one and one on your telephone. That is star one and one to ask a question. We are now going to take our next question. This question comes from the line of Mike Tang from Barcad Research. Please go ahead.

Hi. Good evening. Thanks for taking my question, and congratulations on a great quarter. Just a quick question from me. I've noticed that from a year-over-year perspective, both revenue and gross profit, in terms of the growth rate, seems to have fallen a bit compared to fourth quarter. Can you just maybe talk about some of the reasons behind that? Thank you.

Sure, Michael, thanks for your interest on Aurora Mobile and your question. Let me take this call. Probably you appreciate Q1 is a traditionally slow quarter amongst the four quarters within a year, but still managed to see great results from our core developer solution business, where year-over-year revenue achieved a solid 21% growth that Chris talked about too, reaching an all-time high of CNY 64.9 million. Also in this quarter, gross profit rose by 13% year-over-year. The overall slow growth that you mentioned was mainly attributable to the revenue from other sector, which is the value-added service and vertical application.

Let me share with you the reason. One is the fact that advertising business was pressured by the seasonality, Q1 is traditionally a slow season for the industry. Without the traffic catalyst such as e-commerce shopping festival and coupled with the long Chinese New Year holidays, marketing spending by brand clients remains slow and leading to the current market condition that you have seen in Q1. Secondly, the slower demand for vertical application.

The macroeconomic headwinds have softened our overall client demand. In particular, the Financial Risk Management business was also impacted by the recent regulatory adjustment that I shared earlier on. For the remaining three quarters of 2026, our core developer solution business is poised for substantial growth with meaningful revenue expansion. Meanwhile, our overseas business, EngageLab, is expected to accelerate and benefit from our global footprint will further be unlocked and realized. Hope we answered your question, Mike.

Thank you.

Thank you. There are no further questions for today. I will now hand the call back to Christian Arnell 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 evening, and thank you.

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

Ladies and gentlemen, thank you for standing by. Welcome to the Aurora Mobile Fourth Quarter and Fiscal Year 2025 Earnings Conference Call. [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. 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.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 take your questions and give you answers during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements made 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 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'd now like to turn the conference over to Mr. Luo. Please go ahead.

Thanks, Christian. Hi, everyone. Welcome to Aurora Mobile's 2025 Fourth Quarter Earnings Call. Before I comment on our Q4 results, I would like to remind everyone that we have uploaded the quarterly earnings day on our IR website. You may reference the deck as we proceed with the call today. I'm truly excited about the various things that are going here at Aurora Mobile. Revenue is surging and our financials are as strong as ever. By the end of this call, I trust you will agree with me, our 2025 and Q4 numbers are truly exceptional. As we have done in the past, when looking at the fourth quarter and the year as a whole, a single phase comes to mind a year of pure brilliance. Why? Because we recorded first ever full year net GAAP profit in our history. Not only that, but we achieved 3 consecutive quarters of non-GAAP profit leading to this quarter, which just as importantly achieved quarterly revenue exceeding RMB 100 million mark. It's been a truly historic year. Let me now dive deeper into the outstanding work and numbers that make this success possible. Firstly, the group's revenue this quarter surged to RMB 105.2 million, representing a remarkable double-digit 13% year-over-year and 16% sequential growth. This performance brought through the guidance we shared in our Q3 earnings call. Secondly, our global flagship product, EngageLab continued to fire on all cylinders, winning new customers across the globe. This momentum drove EngageLab's ARR for December 2025 to a record high of USD 10 million, representing 186% year-over-year growth. Further, gross profit grew by 23% year-over-year and by 9% quarter-over-quarter. This is the highest gross profit we have seen over the past 16 quarters. Last but not least, we delivered another standout quarter on cash management. Net operating cash inflow hit RMB 35.1 million, the highest we have seen since Q4 of 2020. With so many record highs this quarter, I am incredibly proud of what our team has managed to accomplish. It's truly gratifying to share these results with you today, and it was driven by our strategy, hard work and passion, not by luck. Everyone in Aurora Mobile for the effort and energy toward our collective growth day in and day out, 2025 stands as one of our most successful year-to-date, the result of true commitment and strong execution. With that said, the work is not done. The solid foundation we have built over the past few years position us to achieve even great things. I sincerely believe we are ready to seize the next wave of global opportunities and our track record proves we can. As we move into 2026, we will continue on our expansion path with the same discipline and focus we show in the past years, enhancing our products and services, accelerating growth and maintaining strong financial management. I am optimistic of what 2026 will bring. The path ahead is rich with opportunities and our brightest moments are still to come. After a year of pure brilliance, I think for 2026 is clear growth acceleration. Now let me share more on the individual business performance. Our total Q4 group revenue has exceeded RMB 100 million mark for the first time in history since the transition to pure SaaS business model. It has grown both year-over-year and quarter-over-quarter. In particular, the lion's share of year-over-year revenue was contributed by strong numbers from developer subscription services. Our solid execution in 2025 across different markets provided an excellent platform to drive our top line performance. In this quarter, both developer subscription services and vertical application record solid acceleration with double-digit year-over-year revenue growth. Developer Services revenue, which consists of subscription services and Value-Added Services delivered strong performance with 7% growth year-over-year and 18% growth quarter-over-quarter. Subscription revenue performed well, increasing by 13% year-over-year and 7% quarter-over-quarter. Value-Added Services revenue grew by an impressive 101% quarter-over-quarter, but decreased 13% year-over-year. Our core business developer subscription services gave a revenue of RMB 61.9 million, representing growth of 13% year-over-year and 8% quarter-over-quarter. The year-over-year revenue growth was mainly driven by increase in both customer number and ARPU. In this quarter, subscription revenue both for the RMB 60 million 1 quarter revenue mark and reached its highest level in history. Now it's time for what many of you have been waiting for, an update on our global flash product, EngageLab, which continued its remarkable growth trajectory quarter after quarter since it was launched. First, EngageLab's ARR has achieved a new and important milestone, USD 10 million as of December 2025. Following triple-digit growth in Q3, we record 186% year-over-year ARR growth this quarter. Secondly, we delivered another very strong quarter of EngageLab. Cumulative signed contract value amount to RMB 157 million by the end of Q4 of 2025. In Q4 alone, we signed up more than RMB 29 million worth of new contracts. This, in our view, is simply outstanding. We expect this revenue growth momentum to continue for the next 24 months. Thirdly, we secured new wins from global customers across all corners of the world. Our number of customers increased by 142% year-over-year to reaching 1,641. Our global go-to-market initiatives are proving highly effective in driving this growth. Fourthly, our EngageLab products and services are now sold to customers in more than 70 different countries and regions globally. We expanded our footprint into 18 new countries in Q4 alone. Ultimately, the rollout of EngageLab into global market has been a resounding success. Looking back to 2025, we are immensely pleased with the expansion of our global flash product. We have come a long way since we launched EngageLab in Q4 of 2022. In a nutshell, EngageLab provides a suite of products and services for omnichannel infrastructure, helping our customers to strengthen engagement with their users in an efficient and effective manner. The customers of EngageLab are from various industry verticals with no specific industry concentration risk. The very strong numbers we have recorded in 2025 have given us great confidence in the acceleration profit of this business. Historical 2025 numbers aside, in the beginning from 2026, we have seen healthy signs from the overseas markets in terms of potential needs and customers. Let me also touch on the excellent partners we have globally. As of December 2025, within our EngageLab ecosystem, we have 17 partners in different countries and regions. These partners are selected to strengthen, rigorous and often multistage process. We think that our representative in different markets, which means we have high expectation of the contribution from this partner in overseas market in the future. They are another important driver of our sustainable long-term growth. We will continue to work and engage with more local partners to better utilize their resource and local networks. Within subscription revenue, some of the notable wins in this quarter include but are not limited to Kimi large language model, J&T Express, Citibank and China Unicom. Value-Added Services revenue were RMB 14.2 million, up 101% quarter-over-quarter. The solid revenue quarter-over-quarter growth was mainly due to the significant increase in spend by advertisers. The traditional quarterly online shopping festival in Q4 also contributed to significant revenue growth sequentially. Now let me pass the call over to Shan-Nen, who will take you through the metrics of vertical applications and financial performance for this quarter. Take it away.

Thanks, Chris. And next, I'll go over the revenue for vertical application that includes financial risk management and market intelligence. Overall, Vertical Applications had a good quarter where revenue grew both year-over-year and quarter-over-quarter. And within vertical application, financial risk management recorded a strong 43% growth in revenue year-over-year and 12% quarter-over-quarter. Financial Risk Management delivered another excellent performance. We recorded robust revenue growth of 43% year-over-year and 11% quarter-over-quarter. Notably, this segment achieved revenue of more than RMB 22 million in each of the 4 quarters in 2025. In particular, the strong year-over-year performance was driven by impressive 20% in customer number growth and a 20% increase in ARPU. The customers that we signed up or renewed in Q4 include, but not limited to ChongXiing, Xiao, Chengduinhang and many more licensed credit or financial institutions throughout China. Market Intelligence revenue, on the other hand, decreased by 24% year-over-year and 3% quarter-over-quarter due to the continued weak market demand for Chinese APP data. This result is in line with our expectation. Next, I'll go over some of the profit and loss items. Our gross profit delivered another exceptional quarter, growing 23% year-over-year and 9% quarter-over-quarter. The RMB 69.7 million gross profit we had also was the highest gross profit recorded among any of the past 16 quarters. In this quarter, our revenue grew 13% year-over-year, yet our gross profit grew by 23% year-over-year. Notably, we saw this trend in Q3 as well. This tells a clear story. We are strengthening our ability to generate high-quality revenue with higher margins. Our strong gross profit number has proven instrumental in bringing us to a full year profitability in 2025. On net profit, after 3 consecutive profitable quarters, we have landed ourselves in a new territory, our first ever full year GAAP net profit for 2025. This is a great way for us to conclude our brilliant Q4 and full year 2025 story on a high note. On to operating expenses. Q4 operating expenses was at RMB 68.2 million, up 13% year-over-year and 6% quarter-over-quarter. Overall, we are pleased with the trending of OpEx to support revenue and profitability growth. I'll now dive deeper into the individual OpEx category. R&D expenses increased 16% year-over-year to RMB 28.3 million, mainly due to the higher staff costs and associated expenses. Technical service fee also contributed to the year-over-year increase in R&D expenses. Selling and marketing expenses increased by 16% as well year-over-year and to RMB 28.4 million, mainly due to the higher sales commission in line with the revenue growth and cash collection recorded in this quarter. Marketing expenses for investment in global business expansion also contributed to the year-over-year increase in SMS -- in selling and marketing expenses. G&A expenses remained flat at RMB 11.4 million, representing no change from the same quarter of last year. Next, I will share 3 very important KPIs that we closely monitor. Our net dollar retention rate, NDR, a commonly used KPI for SaaS companies stood at 103% for our core developer subscription business for the trailing 12-month period ended December 31, 2025. This is the second consecutive quarter where the NDR number has exceeded the 100% threshold. We are proud of this number as this demonstrates how our SaaS business model is widely accepted by the market. Customers have increased their spending on our platform over time. Secondly, another financial KPI for tracking the performance of SaaS company is the total deferred revenue. This represents cash collected in advance from customers for future contract performance, which exceeded the historical high we had last quarter and stood at RMB 178.7 million in Q4 of 2025. This historical high deferred revenue balance is a hallmark of high-quality, scalable business. It signifies strong customer loyalty, predictable future revenues, healthy cash flow and an effective sales strategies. Thirdly, we continue to maintain a healthy level of AR turnover days at 37 days. This number is simply fantastic. It shows we are collecting cash quickly and effectively. And this has really improved our financial liquidity while mitigating the risk of bad and doubtful debts. And there was no shortcut to achieving this. It was simply due to the result of our team's diligence, hard work and timely effort to engage with customers. On to the cash flow. We recorded yet another great number this quarter. For the quarter ended December 31, we recorded net operating activity cash inflow of RMB 35.1 million. This exceeds the last quarter and is now our best quarterly cash flow result since Q4 of 2020. Another metric to share with you, between the years, our cash and cash equivalent balance has increased by RMB 53.8 million. It represents a whopping 45% increase to RMB 173 million as of December 31, 2025. This reflects not only the significant step-up in our financial results, but also a meaningful improvement in the overall quality of our operations. Now let me take a few minutes here to recap. As you have heard Chris mention a year of pure brilliance at the beginning of this call. And throughout the entire 12 months of 2025, we have been operating under a high level of focus and rigor together with financial discipline. Our financial profile has fundamentally improved and moving in the right direction. And we closed a very strong and exceptional fiscal 2025. The numbers we have presented today speak for themselves. And this quarter, we achieved many historical milestones. Each one, a strong statement about the exceptional 2025 we have had and each one building momentum as we look forward to the next 12 months ahead of 2026. First, we achieved our very first full year GAAP net profit in history. Number two, the group quarterly revenue exceeded RMB 100 million mark, a historical first since we transitioned to the pure SaaS business model. Third, our core developer subscription business achieved a record of RMB 61.9 million in revenue this quarter, breaking through the RMB 60 million threshold for the first time. Our flagship product, EngageLab, continues to shine. Our EngageLab business reached another very important key milestone, ARR of USD 10 million in December 2025. This represents a stunning 186% of year-over-year growth. Number five, gross profit grew significantly at 23% year-over-year and the highest it has been for the past 16 quarters. Number six, operating activities brought in a net cash flow of RMB 35.1 million. Our net dollar retention, NDR, for core developer service surpassed 100%, reaching 103%. The 2025 numbers demonstrate our excellent execution. We have exceeded most, if not all, of our targets. With this in mind, Chris and I believe we are exceptionally well positioned to continue this momentum into 2026. Now let's turn to the business outlook. Based on the current available information, the company sees the 2026 full year revenue guidance to be in the range of RMB 450 million to RMB 480 million, representing a very solid and strong growth of 20% to 28% year-over-year compared to 2025. And the above outlook is based on current market conditions and reflects the company's current and preliminary estimate of the market and operating conditions and the customer demand, which are all subject to change. Lastly, before I conclude, I'll give a quick update on the share repurchase plan. In this quarter ended December 31, 2025, we repurchased 73,000 ADSs. Cumulatively, we have repurchased a total of 400,000 ADS since the start of our repurchase program. And this concludes our prepared remarks. We're happy to take your questions now. Operator, please proceed.

[Operator Instructions] And our first question is going to come from Calvin Wong with Spica Capital.

First of all, congrats to you guys for delivering a year of pure brilliant financials today. Both the Q4 and the full year 2025 numbers have been very, very impressive. One question for me, if I may. Can the management shed some light on the top 3 things that you have done well to deliver this set of such good financials.

Calvin, good to hear from you, and thanks for the kind words. Let me take this question. Yes, we are very proud of ourselves to be able to share such a wonderful set of financials earlier on during the call. And to get to where we are, it is by no means easy, and we work very hard and smart to navigate the volatile business environment globally. As on the 3 things that we have done well, let me have a go. First, it has to be the courage to venture outside our comfort zone. And looking back in 2022, when the idea of going overseas was first brought up by Chris as the next important strategic initiative for Aurora Mobile. At that time, I think we didn't have any single overseas employees nor did we have any partners outside of China. But then forward-looking vision was a brief one. So making -- I think making the right decision to go overseas would be my #1 thing that we have done right. If we did not make such brave or bold decision, we will not have this conversation today. And secondly, making the monumental shift of the product service offering outside of China is another game changer. We will not be as successful as we are today if we're simply making slip service of going overseas. Over the course of the past, I think, 2 to 3 or 3 to 4 years, we have made considerable amount of investment and resources to actually having a brand-new EngageLab product, specifically for our overseas market with its own distinct spec and features for global customers, along with the overseas data centers catering for the needs of our global customers. If you were lazy or took a shortcut of simply using what we had before in China for overseas market, it will not work. The third factor would be the commitment to excel throughout the organization to support this going overseas initiative that Chris brought up. When we started, there was no how to go overseas guide book to show us the way. We took the hard way by figuring out all ourselves and doing it all ourselves. I still remember at the early stage when we started EngageLab, Chris and I were standing at our booth in Singapore Tech Expo to introduce EngageLab and to answer questions from potential customers, and we have since come a long way. Just to recap, looking back, one, we made the right decision to venture overseas. Two, we make serious commitment in terms of investment in the right product offering. Third, the entire organization was in sync and aligned to this strategic initiative. And this took us back a little bit to the memory lane. I hope I answered your question, Calvin.

And our next question will come from Jack Sun with Gelonghui Research.

I'm Jack Sun from Gelonghui Research. Congratulations to the management team on another quarter with good numbers. in particular, a full year GAAP net profit is a really great turning point. My question for the management is, how should we look at Aurora's financials for the first quarter of 2026 and beyond?

Jack, thanks for the question. And you're right, we have a great 2025 when we achieved our very first GAAP profit for the year. And equally important was the spectacular Q4 numbers that we have presented earlier today. And in Q4, our total revenue exceeded RMB 100 million and go through the revenue guidance we have provided in Q3 and marking the best quarter revenue in our history. And of course, you heard about the fact that our global flagship product, EngageLab continues its great acceleration path. All the KPIs we have achieved has done through meaningful and significant growth year-over-year and quarter-over-quarter, be it ARR, customer numbers, total contract value signed or revenue recognized, they just exceeded all our internal targets. And of course, all these were the fruit of a hard labor that we started 3 years back. Results like this will not happen overnight or over 1 quarter. And we sowed the seeds of EngageLab growth when we committed to venture overseas in late 2022. We invested the appropriate resources in terms of capital and infrastructure with a balance of ensuring expansion without blinding spending for sake of spending. And now that we have laid a solid foundation for EngageLab, the growth prospect is very certain. We have presented and delivered such sequential growth without fear in the past. If I may summarize on how one should view Aurora Mobile, you can think of our business as, one, we have proven to be able to achieve full year net profit with positive cash inflow. Two, domestic business continued its solid and relatively stable growth. Three, our global flagship product, EngageLab will provide the lion's share of the growth momentum for the next 3 years. Four, our AI strategy will provide the next phase of growth momentum. And thus, we -- management as a whole are very confident on the business prospects in 2026 and beyond. And I hope this answers your question, Jack.

And I'm showing no further questions at this time. I would now like to turn the call back over to Christian for closing remarks.

Thank you, everyone, for joining the call tonight. If you have any further questions or comments, please don't hesitate to reach out to the Jiguang IR team. This concludes the call. Have a great evening or morning. Thank you.

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