Unidentified Analyst: With the achieved solid growth in the past two quarters. Could management share some color on measures we take? And how should we think about the growth trend even now? The second question is that LIZHI’s profitability continues to improve? And looking ahead, do you have an outlook for the profit margin and how can we achieve that? Thanks so much.
Marco Lai: The first question is about the ARPU. So far, our revenue is actually primarily generated from the audio entertainment business. And we mainly focus on two aspects to improve the ARPU. In terms of traditional charges, we continue to refine our innovative product functions and features and we also diversify our operating activities, which enhanced our user engagement and promoted the user payment commercial rate. For example, we’ll launch the customized virtual gifting options and avatars to expand the paying scenario, and we also lowered the threshold to participate in these activities so we can improve the user engagement and promote connections between users and content creators, start enhancing users’ willingness to pay.
So in terms of marketing strategies, through optimizing promotional models and promotional materials with an intelligent advertising system, we implemented precise user acquisition to reach the core user groups with stronger spending power and the willingness to pay and to promote a payment commercial rate. In terms of the long-term growth trend, we hope to diversify our revenue streams through new business models such as AI chatbot, which may bring additional revenue resources, revenue sources such as subscriptions and value-added services. Overall, we are confident that we can achieve more diversification of our revenue streams as well as steady growth of our overall revenue scale in the future. And we do expect to see some changes in 2023.
We achieved the overall profitability in 2022. And in the future, we believe that our profitability and profit margin will further improve in the long term. First of all, our domestic business still has a huge growth potential. With an increasing online audio user penetration rate, the market scale is also expanding further and we will continue to expand the core user groups in the audio entertainment sector and increase users’ willingness to pay through a diverse range of operational activities and the innovative functions, promoting the growth of the user payment conversion rate and revenue. And in terms of the cost of structure to refine user acquisition and operational strategies, along with the empowerment of our technology platform, operational systems and our self developed technologies, we will continue to improve our overall operating efficiency in achieving sustainable profitability.
As for the global business, we hope to bring more revenue contribution by reaching our product matrix and also diversifying our business models along with the application of AI chatbot. We will also make dynamic adjustments in resourceful location based on different stages of business development. And in the long term, we are confident in continuously improving our overall profitability. Thank you. That’s all.
Operator: All right, thank you. There are no further questions now, so I’d like to turn the call back to the company for closing remarks.
Effy Kang: Well, thank you once again for joining us today. If you have further questions, please feel free to contact me, LIZHI’s Investor Relations through the contact information provided on our Web site at ir.lizhi.fm or The Piacente Group Investor Relations. Thank you.
Operator: This concludes the conference call. You may now disconnect your line. Thank you.
