ATRenew Inc. (NYSE:RERE) Q4 2022 Earnings Call Transcript

Fay Lin: Thanks, Management for taking my question. We noticed that non-GAAP sales and marketing expense as a percentage of revenue was lower to 7.5% in the fourth quarter. So just wondering, can management elaborate more on the measures taken to improve efficiency behind? Thanks.

Rex Chen: Thank you. In the last year, we have been prudent with our selling and marketing expenses and the related personnel costs. Apart from the marketing budget used to develop consumer mindshare of AHS Recycle, our assessment for each business line prioritized ROI. For PJT Marketplace, we optimized its frontline marketing team. For Paipai Marketplace, we prioritized profitability and we’re more focused on its brand image and reputation. We also reduced the subsidies provided on jd.com and our investments in user traffic of new channels. In the fourth quarter, excluding SBC expenses and amortization of and impairment loss of internal assets, non-GAAP selling and marketing expenses were RMB222 million, that accounted for 7.5% of total revenue, down by 3.9 percentage points from 11.2% in the same period of 2021. We believe that the GAAP measures refer a better future of our expenses. Thank you.

Operator: As there are no further questions at this time, I’d like to hand the conference back to our management for closing remarks.

Jeremy Ji: Thank you. Thank you all again for joining us. A replay of today’s call will be available on our IR website, followed by a transcript were ready. If you have any additional questions, please feel free to e-mail us at ir@atrenew.com. Have a good day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.