Slide 1: Third Quarter 2023 Earnings Results
Third Quarter 2023 Earnings Results November 24, 2023
Slide 2: Safe Harbor Statement and Disclaimer
Safe Harbor Statement and Disclaimer This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act
Slide 3: Section I Operational and Financial Highlights
Section I Operational and Financial Highlights
Slide 4: 3Q 2023 & 9M 2023 Financial and Operating Highlights
3Q 2023 & 9M 2023 Financial and Operating Highlights Diversified and Balanced Business Mix with Maintained Steady Revenue Growth in 9M 2023 1 Rich Product Offering 2 Despite the Challenging Environment Total Revenue 12% 16% 23% Marketing and +12% other services 831 16% 10% 8% 741 195 Big data and 11
Slide 5: 3Q 2023 & 9M 2023 Financial and Operating Highlights
3Q 2023 & 9M 2023 Financial and Operating Highlights Sustained Improvement in Operational Efficiency Continued Cost Optimization Caused Further 3 and Cost Reduction 4 Margin Improvement ROI1 of Recommendation Services, Marketing and Other Services Quarterly Net Margin Improvement 1.41 Record high 1.
Slide 6: Section II Financial Details
Section II Financial Details
Slide 7: More Balanced and Diversified Business Mix with Revenue Growth in 9M 2023
More Balanced and Diversified Business Mix with Revenue Growth in 9M 2023 Total Revenue Breakdown RMB mm + 12% 831 741 195 113 68 70 - 5% 195 248 269 256 32 25 46 19 365 82 318 103 130 88 3Q 2022 3Q 2023 9M 2022 9M 2023 Credit Card Recommendation Loan Recommendation Big Data and System-based Risk Ma
Slide 8: Improved Operational Efficiency and ROI Enhancement
Improved Operational Efficiency and ROI Enhancement ROI of Recommendation Services, Marketing and Other Services1 ROI of Recommendation Services, Marketing and Other Services Recommendation Services 4 percentage Ma rketing and Other Services points From 3Q22 to 3Q23 1.41 1.35 1.35 1.28 1.26 1.25 1.2
Slide 9: Ongoing Disciplined Cost Control Measures and Expenses Optimization
Ongoing Disciplined Cost Control Measures and Expenses Optimization Operating Expenses1 and Expenses as % of Total Revenue2 RMB mm Operating Expenses Expenses as % of Total Revenue 1 7 percentage 37% percentage - 6.6% 33% point points 32% 270 11% 30% 252 9% 9% 80 9% 78 12% 11% 10% 88 9% - 4.8% 76 87
Slide 10: Achieved Significant Margin Improvement
Achieved Significant Margin Improvement Loss from Operations and Net Loss RMB mm Loss from Operations Net Loss -32 -9 -122 -43 -25 -6 -114 -28 -3.4% -2.5% -3.4% -5.2% -9.3% -11.9% - 72.7% - 65.0% - 74.5% - 75.4% -16.5% -15.4% 3Q 2022 3Q 2023 9M 2022 9M 2023 3Q 2022 3Q 2023 9M 2022 9M 2023 10 10
Slide 11: Appendix
Appendix 11 11
Slide 12: Unaudited Consolidated Balance Sheet Data
Unaudited Consolidated Balance Sheet Data Note: Assumes USD RMB FX rate of 7.2960 As of December 31, 2022 As of September 30, 2023 As of September 30, 2023 (in Millions) (RMB) (RMB) (USD) Current Assets: - Cash and cash equivalents 346.5 271.7 37.2 - Time deposits - 89.8 12.3 - Restricted time depos
Slide 13: Unaudited Income Statement Data
Unaudited Income Statement Data For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2023 2023 2022 2023 2023 (in Millions) (RMB) (RMB) (USD) (RMB) (RMB) (USD) Revenues: Recommendation Services: Loans 82.1 102.9 14.1 195.2 248.4 34.0 Credit Cards 129.5 88.3 12.1 365.