Raphael Chen: Thank you for taking my question. My question is regarding core Momo. I’m just wondering how to maintain the users of core Momo app with disciplines cost control strategy? And can management share and color on the revenue outlook on live streaming and VAS of core Momo next year? Thank you.
Tang Yan: As the mature brand with the history of more than a decade in the mobile internet era is not a very easy thing for Momo to maintain a stable user base. This requires joint efforts of both product and channel marketing. On the product front, we need to keep improving the social experience for existing users, and on top of that, continuously explore new social experiences to cater to the needs of new users. In terms of channel marketing, considering the pressure of the external environment on open social sentiment, we intend to tilt our limited marketing budget toed users with more obvious demand and stronger inclination to pay for our services, so as to improve the overall user application efficiency. I’ll pass it over to Peng Hui for revenue outlook question.
Peng Hui: Okay. Again, with the uncertainties on the macro front and the COVID fronts, it’s hard to be very prescriptive at this point and too far into the year 2023. But here are some things that I can share with the limited visibility that we have at this point, which hopefully could help you guys build out a preliminary outlook for next year. For live streaming, as you guys can see, Q3 turn out to be better than what we originally thought, both in terms of top-line and in terms of gross profit. We were able to see both top-line growth, and a stable growth margin. However, as the macro remains quite uncertain at this point of time, at least for the coming six months, we’d rather stay on the conservative side about the revenue and profit growth outlook for live streaming.
Value added service, I would say it’s not completely immune from the macro uncertainty and in comparison with live streaming is actually — more VAS is actually more susceptible to COVID and the weak social sentiment as a result of it. For Momo’s value added service, if COVID lingers and takes longer for the dating sentiment to fully come back, we’ll try to keep the value added service revenue line stable as we did pretty successfully for the past few quarters. It has not been an easy task because the one-on-one and some of the interest group activities are seeing pretty significant impact from the COVID. What we have been doing and will continue to do, I guess next year, is to pull the levers that we have in social entertainment experiences to make it up.
For the value added service from the bucket of new applications especially the overseas app, the picture is much brighter. I think, this year, value added service from the new applications so far has been grown at triple-digit on a year-over-year basis. And despite the fact that it’s now already at a pretty sizeable revenue size, the pace of growth is not really slowing down much from the year 2021, we do expect the value added service from the new bucket of applications to continue to grow at a pretty rapid pace in 2023. Although, at this point, it’s hard to pin it down to a specific number. And the other thing was worth mentioning is that although these new applications are still at a fast growing pace — fast growing phase, we’re not just we are not nearly focused on revenue and user growth at expensive bottom-line.
In Q3, as a matter of fact, we’ve turned that we’ve successfully turned all of the three new applications bottom line positive. And the goal next year is to continue to pursue profitable growth, meaning growth across all the three important lines, including users, revenues, as well as process. So, hopefully, these answers your questions about the outlook for revenue and value added service for the Momo segment next year.
