Charm Communications Inc. (NASDAQ:CHRM)
Q3 2010 Earnings Call
October 29, 2010 8:00 am ET
Henry Fraser - IR, Brunswick Group
He Dang - Chairman and CEO
Wallace Cheung - Credit Suisse
James Marsh - Piper Jaffray
Hello and thank you for standing by for Charm Communications earnings conference call. (Operator Instructions) I would now like to turn the meeting over to your host for today's conference, Henry Fraser from Brunswick Group.
Hello everyone and welcome to Charm Communications earnings conference call for the third fiscal quarter which ended September 30, 2010. The company's earnings results were released yesterday and are available on the company's IR website at ir.charmgroup.cn as well as on newswire services.
Today you will hear opening remarks from Charm's Founder and Chairman, Mr. Dang; followed by the company's Chief Financial Officer, Wei Zhou, who will provide a financial overview and guidance for the fourth quarter. After their prepared remarks, they will be available to answer your questions.
Before we continue, please note that the discussion today will contain certain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.
Charm does not assume any obligation to update any forward-looking statements except as required under applicable laws. Also, please note that some of the information that we discuss include non-GAAP financial measures, as defined in Regulation G. The most directly comparable U.S. GAAP financial measures and information reconciling these non-GAAP financial measures shown as financial results prepared in accordance with U.S. GAAP are included in Charm's earnings release which has been posted on the company's IR website at ir.charmgroup.cn.
As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on Charm's Investor Relations website.
I will now turn the call over to Charm Communications' Founder, Chairman and CEO, Mr. Dang.
I'm very pleased to share our third quarter financial overview. To begin with, I would like to talk to you about business developments for the third quarter 2010.
In the earnings release we sent out this morning, you will see that all of our business segments have performed strongly over the quarter. Our core agency services are growing from strength-to-strength, and our media investment management business is showing solid growth.
We also started to see meaningful contribution from our Charm Interactive business, and we have set up new strategic initiative with trusted industry leaders to expand into new areas, including digital media and content production.
The third quarter is a very busy time for the Chinese advertising market, and we have been very active in advertising to prepare the budget and advertising strategy for next year. And our agenda is looking for effective partners.
The Chinese advertising market maintained strong growth in the third quarter and would be up for the fourth quarter as well. TV media is still the mainstream media platform in China and accounts for 70% market share in advertising placement.
As you know, Chinese largest TV media network, CCTV, holds an advertising option for prime time media resources every November which people look at as a barometer for Chinese economy. It also allows us to observe clients (inaudible) and expectations in the domestic advertising market in 2011.
This year's CCTV prime auction consists of three sections; the online auction, pre-sales, and the on-site primetime auction. From the online auction and pre-sale, which was finished in the middle of this month, we have seen that advertising clients are very confident about the Chinese market for next year, with prices up 30% to 40% from last year.
We expect we will see a similarly enthusiastic response for the November 8 on-site CCTV auction.
Charm first participated in the CCTV auction in 1995. We have been the number one agency eight times in total and have helped more than 100 clients successfully achieve their goals at the auction. This August, when we started preparation of the auction, we have been appointed for many of China's leading companies. And the quality and number of our clients is higher than ever. We believe that we will maintain our leading position in the CCTV auctions this year.
This additional TV advertising market continues to grow, and we see particularly strong opportunities in the satellite TV sector. Advertisers are seeing more than ever that regional satellite channels have key advantages, including increased local relevance, closely targeted programs and increased flexibility.
In addition, the satellite TV ratings are on a strong upward trend. Charm has been operating advertising on satellite channels since 2008 and has strategic partnerships with Shanghai Dragon TV and Tianjin Satellite TV. These partnerships have given us important insight into satellite marketing strategy and operational best practices. They have also laid a strong foundation for future cooperation with other satellite TV channels.
We also recently renewed our contract with Tianjin Satellite TV as well as setting up a joint venture with a channel to enter into content production related advertising sales, which will allow us to expand our service offerings. We contend we will be able to continue our exclusive agreements with existing media partners, including Shanghai Dragon TV and CCTV into 2011.
Meanwhile, we continue to look for opportunities to cooperate with other satellite TV channels and look forward to updating you on our progress in the coming quarters.
The rapid growth of the internet is also bringing us new development opportunities. Our larger clients are increasingly focused on integrating internet advertising into their marketing strategies and we are increasing our investment in Charm Interactive to build our internet advertising expertise.
Since the beginning of the year, we have built a strong team of more than 60 professionals. We are continuing to recruit top talent to further enhance this business.
In order to win in service search advertising clients, agencies need scale, and we see market consolidation as a central market trend. In the future we see large advertisers gaining market share as small advertisers fall away.
Through the integration of Charm Advertising, Charm Interactive and Shangxing Media and through the outdoor advertising buying platforms provided by our Aegis joint venture, we can provide one-stop media solutions for our clients. Our development strategy is geared towards anticipating the increasing sophistication of the media as well as client's requirements. Under our cooperation with strategic investor Aegis Media group, we are making breakthroughs in communications techniques and are developing more effective consumable integrated marketing solutions.
Three-network convergence is influencing local media and advertising, and the Chinese government is vigorously promoting this initiative. We see the convergence of digital TV, mobile TV and internet TV. The revolution for the TV advertising market which will bring with it new development opportunity. Recently, we have signed an agreement to set up a joint venture with Wasu Digital Group which is the leading media group in three-network convergence nationwide. The joint venture will operate advertising over the full range of digital new media and the Wasu platform and help drive the developments of the emerging interactive TV, IPTV, mobile TV, internet TV market.
We are retaining our leading position in the traditional advertising market while participating in digital media initiatives which we see as central to our long term strategy. Our cooperation with the leading beneficiary of three-network convergence will allow us to occupy a leading position in the digital media advertising market in the future.
Finally, I would like to take this opportunity to extend my congratulations to the Charm Teams who were honored at the seventeenth Advertising Awards Festival which happened in October. Charm won awards for campaigns created for China Telecom assuming nominated for several more including China's SME Award for our Huaxia Bank's Dragon Boat campaign.
In addition, myself, Linna Li, our VP in charge of CCTV media buying; and (inaudible), one of our team leaders, were honored top 10 female advising figure, top 10 female advertising figure and top 10 youth advertiser respectively.
I would now like to pass it over to our CFO, Wei Zhou who will discuss quarterly financials.
Thank you, Chairman Dang, and hello, everyone, on the call today. Before I go through the financials, I'd like to take you through our three core business segment to give you some updates on our progress. Please note that the first section of your references on our second quarter results using non-GAAP numbers in order to better convey our performance. We define non-GAAP turnover as the total customer advertising spending place with or through Charm. We believe turnover effects reflect the scale of our business.
In the third quarter of 2010, turnover grew 62.6% year-over-year and decreased 3.6% quarter-over-quarter to approximately $145.5 million. The year-over-year increase in turnover was mainly due to the increase in the number of advertising clients and increase in advertising spending from our existing clients. The quarter-over-quarter decrease in turnover was largely because some clients had previously allocated third quarter advertising budgets in the second quarter of the year to cover increased advertising activities around the world cup.
I'll break this down by business. The non-GAAP turnover for the agency business grew 62.2% year-over-year and decreased 6.7% quarter-over-quarter to $104.5 million. The year-over-year increase in the agency non-GAAP turnover was mainly due to the increase in number of new agency clients and increase in advertising spending from existing agency clients. But the quarter-over-quarter decrease was mainly due to the shifting of the budgets for the World Cup, from the third quarter to the second quarter.
In the third quarter of 2010, we provided advertising agency services to a total of over 128 advertising client accounts, seven of which were acquired in the third quarter of 2010. The revenue extraction rate for our agency business was 6.1% compared to 5.5% and 4.8% for the third quarter of '09 and second quarter of 2010 respectively. The higher revenue extraction rate in the third quarter was primarily because we have increased media placements on non-CCTV television channels and the internet which have a higher revenue extraction rate.
We expect the revenue extraction rate to increase as we expand our full service offerings across all media platforms under Charm Advertising and as we ramp up our digital media offerings under Charm Interactive.
Our turnover for our media investment management business, or principal media business, which operates under the Charm's media brand grew 63.6% year-over-year and 5.2% quarter-over-quarter to $41 million. Compared with the third quarter of '09, the increase was mainly due to the increase in satellite TV revenue as a result of price increases and the addition of our CCTV programs. Compared with the second quarter of 2010, the increase was mainly due to the seasonality of the satellite TV revenues.
I'd like to spend a little bit more time to explain the temporary loss of our media investment revenue, because we suspended the exclusive advertising contract for one of our CCTV programs, "Yong Talk Show" due to the change in format of the program in mid-August. Rather than continuing the same exclusive contract for the replacement program and focusing on short-term quarterly targets, we took the conservative approach and suspended the contract with CCTV.
As with previous media investments, we needed to analyze the rating trends, the target audience and potential advertisers for the replacement program before making a financial commitment. During this period of suspension, we do not have to make any media payments to CCTV while retaining the right to continue the same exclusive contract after we have concluded the valuation of the new program with CCTV.
The replacement program airs during prime time Saturday night at 7 p.m on CCTV-3 and has been positively received so far. Currently we expect the impacted revenue to return when we renew the exclusive contract for the replacement program in the first quarter of 2011 which typically is the peak season in terms of rating and advertising for CCTV because of the Chinese New Year period.
But this time may also move forward if we see strong rating and demand from advertisers in the fourth quarter of 2010 for this new replacement program. Without the impact of this change, we estimate that we would have earned an additional $2 million to $2.5 million of additional revenue for the media investment business for the third quarter.
Even with the absence of this revenue, we are able to outperform our own net income guidance for the third quarter because of the strong performance of our overall business.
Now going back to the GAAP figures, total U.S. GAAP revenue were $48.4 million for the third quarter of 2010 representing an increase of 65.3% compared to $29.3 million for the third quarter of '09 and an increase of 6.9% compared to $45.3 million for the second quarter of '10.
Revenue for our advertising agency business were $6.3 million for the third quarter of 2010, representing an increase of 77.3% compared to $3.6 million for the third quarter of 2009 and an increase of 17.6% compared to $5.4 million in the second quarter of 2010. The year-over-year increase in the agency business is consistent with the increase in turnover. The quarter-to-quarter increase in the agency business is mainly due to higher extraction rates due to more ads being placed on non-CCTV media.
Principal media business revenue were $41 million for the third quarter of 2010, representing an increase of 63.6% compared to $21.5 million for the third quarter of '09, an increase of 5.2% compared to $30 million in the second quarter of 2010. For the third quarter of 2010, we had 282 advertisers for our principal media business compared with 183 advertisers for the third quarter of 2009.
Branding and identity services revenue were $1.1 million for the third quarter of 2010, representing an increase of 63.1% compared to $700,000 in the third quarter of '09 and an increase of 16.3% compared to $900,000 in the second quarter of 2010.
One of the symbolic client wins for our creative services in the third quarter was actually the China Banking Regulation Commission or CBRC account. This highlights the strength of our franchise in the financial industry for the Charm Advertising.
Cost of revenue for the third quarter of 2010 was $29.6 million compared to $19.4 million and $30.1 million for the third quarter of '09 and second quarter of '10 respectively. We attribute the increase compared to third quarter of '09 mainly due to the addition of exclusive CCTV programs and increase in satellite TV media cost. Compared with second quarter of 2010, the cost remains stable.
Gross profit for the third quarter of 2010 was $18.8 million, representing an increase of 90.9% from $9.9 million for the third quarter of '09 and an increase of 24% from $15.2 million for the second quarter of 2010.
Selling and marketing expenses were $5.8 million for the third quarter of '10 representing an increase of 135.2% from $2.5 million in the third quarter of '09 and an increase of 19.8% from $4.8 million in the second quarter of 2010. The increase in selling and marketing expense was primarily due to the increase in headcount at Charm Interactive. Selling and marketing expense represented 11.9% of our total revenue for the third quarter of '10 compared to 8.4% in the third quarter of '09, and 10.6% for the second quarter of '10.
General and administrative expenses were $1.6 million for the third quarter of 2010 compared to $2 million in the third quarter of '09 and $1.6 million for the second quarter of '10. As a result of the above, operating profit was $11.4 million for the third quarter of 2010, compared to $5.5 million for the third quarter of '09 and $8.8 million for the second quarter of '010.
For the third quarter of '010, we had tax expense of $600,000. Net income was $11.1 million for the third quarter of 2010, representing an increase of 219.9% from $3.5 million in the third quarter of 2009, and an increase of 32.3% from $8.4 million for the second quarter of 2010. Fully diluted net income per ADS for the third quarter of 2010 was $0.27, compared to $0.2 and $0.22 for the third quarter of '09 and second quarter of '010 respectively. Each ADS represents two common shares.
Our third quarter non-GAAP net income, which excludes share-based compensation expenses and impairments on investments, was $11.7 million compared with $5.8 million for the third quarter of '09 and $9.1 million for the second quarter of 2010.
Our cash flow from operations for the third quarter of 2010 was positive. As of September 30, 2010 we have cash and cash equivalents of $116.4 million, compared to $120.7 million at the end of the second quarter of 2010.
As of September 30, 2010, we have 447 employees, compared to 401 employees as of March 31, 2010.
And now to our business outlook. We estimate our total revenues for the fourth quarter of 2010 will range from $51 million to $53 million. Fourth quarter 2010 non-GAAP net income, which excludes share-based compensation expenses and impairments on investments is expected to be between $12 million to $12.5 million. These estimates do not factor in potential revenue from the replacement CCTV shows. But even with the absence of this revenue, we are still maintaining our non-GAAP net income guidance for the full year because of the strong performance from our underlying operations.
We base these estimates on a foreign exchange rate of 6.7680 RMB per US dollar. This forecast reflects our current and preliminary view, which is subject to change.
Thank you for your attention. I will now hand the call over to the Operator, who will open the lines for questions.
(Operator Instructions) And our first question comes from the line of Wallace Cheung with Credit Suisse.
Wallace Cheung - Credit Suisse
I have two questions, the first question to Mr. Dang. I think the CCTV auction is coming. Can Dang give us a little bit more color or his expectation about the growth of the CCTV auction on a year-on-year basis, and any particular sectors that you think will perform better vis-à-vis other sectors. And the second question will be regarding the recent Wasu joint venture that you have just set up, what is the total investment amount and what's the cooperation formats between the two partners? Also any expectation on the profitability going ahead?
Answering the first question regarding color on the upcoming CCTV auction, for the CCTV auction, every year there is a fixed portion of the auction where the resource remain the same. And there is a portion where the resources were just on a year-to-year basis. And typically when we look at this year, I think, for the primetime resources, there is actually a distinguish between the really good resources, which are in high demand, where we actually expect a higher increase, and then for the normal resources during this time, we actually expect a moderate increase.
So overall, I think as I mentioned, for some of the premium resources, I think we expect the increase in price to be over 20% and then sort of a moderate increase for the normal resource is expected to be around 10%.
In terms of sector, one sector that we see continued strength from is actually the alcohol or Chinese liquor sector. I think there is actually very good case study from the last few years in terms of local Chinese domestic sort of liquor brands advertising during primetime and then being able to increase their sales tremendously as a result of the advertising. So we see this sector continue to remain a strong sector.
A new sector that we see this year is actually in the travel and city branding sector, travel and tourism as well as city branding and regional branding. And this we see is because the increased demand for tourism of the domestic population. Also we see this sort of as a new sector coming on, joining in terms of advertising on primetime.
In terms of the Wasu joint venture, there's three questions; one is the total investment amount. And total investment amount for the joint venture will be $5 million R&D; and then that will be set up in a 51% for the joint venture between Charm and Wasu, where Charm own 49% of the JV. In terms of the cooperation format of the business of the joint venture, is to operate the advertising on Wasu's three-convergence network platform.
Where the joint venture will basically be setup to basically sell advertising on this platform. So we do not anticipate additional investment into the joint venture. In terms of the operation, we already have a team in (Guangzhou) set up operating the joint venture already, and we expect the joint venture start generating revenue and net income starting 2011.
In terms of the future of this joint venture, we see this as a new form of advertising, also a new form of TV watching here in China. So we are very excited about this opportunity, and we feel that the future of this joint venture will provide a very good long term growth objective at the time.
Basically, we have seen in the CCTV auction where domestic companies are going to be the key supporter of the auction. These are the foreign companies in terms of advertising spending may be a bit lower than last year or growth would be lower than the last year?
And the second follow up question will be; so regarding to Wasu joint venture, as your investment number is only $5 million R&D into the joint venture, does it mean the potential return of this like join venture, may not be as high as what we expected?
Let me translate the first question for Dang real quick.
In terms of looking at historical auctions, the domestic advertisers, domestic company has been the primary driving force of the auction. And we expect this trend to continue this year. Although, there will be increase in number of international companies coming into the auction. And one of the reasons we expect the domestic companies to continue to be the main force of the auction, is that domestic companies are confident; and also, the expectation in terms of 2011, especially with the internal drive in China to increase consumer spending. So what we're seeing is that this will lead the domestic companies to be more confident about the outlook into next year.
And then let me translate the second question real quick.
In terms of the joint venture that we have set up with Wasu, is primarily to operate the advertising. It's primarily a advertising sales company that sells advertising on Wasu's digital platforms. From Wasu's perspective, their own main operation focuses more on the technical aspects of three-network convergence, in terms of combination of equipment, technology as well as content.
So that investment will be made by them. Whereas for the joint venture, one of the key reasons why they selected Charm, is because of our expertise as one of the leading advertising agencies domestically; so that they wanted someone that they see as number one in the advertising sector to partner with them, to operate this advertising on what they believe to be the leading sort of three-network convergence platforms.
Our next question comes from the line of James Marsh with Piper Jaffray.
James Marsh - Piper Jaffray
First, I was hoping if you could expand a little bit on the extraction rate improvement at the ad agency business. I think the way you mentioned, you would expect it to go higher because this and the internet business as well as some of the non-CCTV business. I was trying to get a sense for what the difference maybe between the extraction rates between the core CCTV business and the others. Could you see where that might go over time?
And then secondly, I was just wondering if you had an update on the renewal of the Shanghai Dragon exclusive agency, I think that expires at the end of 2010? Any update there would be helpful; do you expect any material change in the terms of that contract or anything substantial?
Sure. James, in terms of answering your first question, and as I mentioned one of the reasons we see the increase in extraction rate for the advertising agency business was due to increase in the amount of media placement on non-CCTV television, which in this case are satellite TV and local television, as well as an increase in new media which includes internet.
In terms of the breakdown of the extraction rates for the three areas that we classify under here, for CCTV, the extraction rate is typically between 3% to 4%. The extraction rate for sort of non-CCTV television typically is in the 8% range. And then the extraction rate for the new media which includes internet is typically is over 10%. Sometimes up to 15%, depending on the platform. So that's the first question.
Answering your second question regarding the Shanghai contract; yes, it is up for renewal this year. I think as Mr. Dang mentioned in his intro, I think we are currently finalizing the agreements with pretty much all of our media partners in terms of renewal going to next year. And that should be completed by mid November. And in terms of turns, it should be the same as the current year.
And then just a highlight that we've already completed the sort of renewal for Shangxing going to next year already with basically consistent terms as this year.
Our next question comes from the line of (Thomas Yeung) with Bank of America.
The first one is, can you talk about the use of cash for next year? And my second question is can you talk a bit about your key advertising categories for this quarter.
In terms of sectors looking into adjust the third quarter for ourselves; in terms of the overall ad spend for the quarter, the consumer products remains the leading sector with around 33% spending. And in the second leading sector I think is home appliances with 15.6%; transportation was primarily because of automobile at third at 12.5%; and then our pharmaceuticals, 11%; financial product, 10% and then telecom at around 6%. So that's sort of the key top six categories for us in the third quarter.
(Operator Instructions) Our next question is a follow-up question form the line of Wallace Cheung with Credit Suisse.
Wallace Cheung - Credit Suisse
Regarding the recent Tianjin TV agreement, you have also signed and issued a new joint venture agreement with Tianjin TV in terms of content production. Again, can you elaborate more into nature of the joint venture, the type of content that you're going to develop, potential investment side and kind of like potential return of the joint venture as well?
In terms of the nature for the joint venture that we're setting up with Tianjin Satellite television is basically to help the Charm advertisers to customize either reality shows or live event or other shows or type of events to be broadcasted on Tianjin Satellite. And as you know, over the last few years in China there has been an increasing popularity of reality shows and live events on satellite channels.
Another second thing is that a lot of these shows have very good, in terms of branding, opportunities for large customers. So what we are doing here is that we are basically providing our customers a customized opportunity to basically put their brand into a show or event to be broadcasted on Tianjin satellite.
What this does for Tianjin satellite is that it increases an additional source for revenue for them. And for our customers, it provides them with a very, very customized advertising solution.
Wallace Cheung - Credit Suisse
Another quick question is regarding the CCTV auction. Are we going to see Charm is going to join hands with Aegis Group as a whole to bid for some of the slots? Or Charm is still bidding the slots separate from Aegis?
The final details of whether we do it jointly or separately have not been finalized. But regardless of whether we bid as one entity or bid as two entities, I think we will have very good collaboration and information sharing throughout the process.
Our next question comes from the line of (Sam Lawn) with Oppenheimer.
My first question goes back to the pricing increase on CCTV. I know you guys are saying it's going to go up about 20% plus or so. So comparatively to satellite TV and the price hikes there, I was wondering which one's going faster and you thoughts on that? My second one pertains to online video advertising, and your plans in revenue generation you expect you're going to get from that piece of the pie?
Just before I answer, sort of preface that with, regardless of the CCTV or satellite TV, I think it depends on a specific show and the rating of the program. If it has good audience, good ratings then the price increase is definitely much faster. I think if you look at the shows on some of the prime shows, high-quality shows on the satellite channels they have increased faster versus CCTV.
I'll take the second half of that question. I think we are well positioned to sort of capitalize the price increase on both channels. For the satellite channel we have basically both the media business as well as the agency business to expand for the satellite side.
Is it fair to say with satellite expanding faster, you have more shows on there and your agency business margins are going to increase overall for your whole business?
That is correct. And to answer your second question regarding the impact of increasing popularity of online videos, I think we've talked about this previously. I think for Charm Interactive, although it's been only set up since the beginning of the year, we actually currently have framework agreements with most of the major internet portals.
If you look at just within the online video sector, we currently have basically media placement or framework agreements with all of the top seven online video sites, Youku, Tudou, (Ku6), CCTV or cctv.com, Baidu's (NYSE:GE), Sina, Sohu. And we currently actually have placement already on most of our sources, from both our existing television commerce customers, as well as joint buying customers from our alliance with DAC.
So I think from sort of a long term perspective and also a next year perspective, I think we're actually very well positioned to capitalize the growth in our video because of the sort of similar advertising format on the online video versus television. And I think we can leverage on our strength in television sort of to create joint advertising or integrated advertising on both television as well as online video at the same time for our customers.
One follow-up question is, call it the competition is looking like, not in just the next quarter, but pretty much for the next fiscal year, just what your competitors and what the landscape's looking like? Some thoughts on that?
In terms of competition, if you look at just our direct competition for the CCTV business, I think one of the things that we've seen very clearly is that the branding effect of our IPO in May. I think that has basically allowed us to distant ourselves from these direct CCTV agencies who are competitors. And one of sort of the key thing is that, after IPO I think that we have been able to sort of as the first Chinese advertising agency to be listed on NASDAQ that has given us a much higher profile within the domestic market here.
To follow-up on that, I think I know the area that we have been affectively evolving our business into a full media full service integrated advertising agency. And that has even allowed ourselves to distance ourselves from the CCTV competition through the CCTV agencies even further.
The third area I think is in terms of competitiveness in the future that we see is our strategic alliance with Aegis. Through that alliance I think we have access to a lot of the global consumer as well as the tools that has allowed us to, basically to better service our customers. And even as these customers have demand, in the future, a lot of the domestic advertisers have international demand then Charm is actually very uniquely positioned to help them through our alliance with Aegis.
And it finally has to do with our business model, in terms of our adding Charm Interactive and digital capabilities as well as our media capabilities to Tianjin media. I think this overall creates an integrated agency that we actually haven't seen amongst domestic agencies. This will allow us to basically improve our market share as well as the market position in the future.
Mr. Dang just gave a personal anecdote.
Historically, whenever he would get excited every time he would win a customer or win an account, but now he will only get excited when you win the big account or big customer. And that's sort of the trend that we see in the domestic market. For large companies be it a SOE or be it a private enterprise I think they are looking for a counter party or counter party agency that is similar in size and scale.
And then that something that I think the scale of Charm as we get bigger I think will allow ourselves to be even more competitively strong both in terms of service capabilities as well as in other media planning and design.
We have no further questions at that time. I want to now turn it to management for any closing remarks.
Thank you for joining us today. If you have any further questions, please do not hesitate to contact our Investor Relations team by sending an e-mail to firstname.lastname@example.org.
Thank you for your participation in today's conference. This concludes the presentation. Everyone have a great day.
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