I think that remains a priority for 2024. And we have seen this globally happening not only regionally in more specific countries or regions, we’ve seen that demand equally growing in Japan, in the U.S. and in Europe as well. So Skin AI, among other things, is the one that is being developed for a few years. It has been well tested in the market, and I think it’s now time to gain more scale. From the B2B pipeline cycle perspective, yes, we have seen that the enterprise demand is certainly accelerated compared to the first half of 2023, where people were a little bit more skeptical about the future of the economic. I think now at the — for the end of the interest hike, the terminal rate in enterprise spending seems to be coming back more into a pre-interest hike period.
So we have seen that the entire sales cycle has been shortened significantly. So customer enterprise budget seems to be a little bit more relaxed in terms of investing in new innovation, and we want to capitalize on that. So our top priority is again to have our solutions ready for web, for online subscriptions and be able to help all these new demand to integrate and deploy in the market as fast as we can. In terms of the cash flow, the results that you saw in our earnings, it is not from a one-off cash flow — free cash flow. I think it is a continuous result, and we’ve seen quarter-after-quarter that we’re able to bring in around this figure. And I think that is what our expectations are for the operating cash flow to remain positive. So we are managing our financials.
As I always say, we have strong discipline, and we are seeing that because of the nature of these are contractual, we can pay advance and then we have delivered the service across the year, we’re able to generate these good operating cash flow.
Alice Chang: Clarke, I can add some comments for the investment part. We’re committed to keep on investing on AI development and the R&D side and that’s because this — especially after generative AI, this — the market is very large to grow, and this is very early stage. So you can hear not only beauty AI, beauty virtual try-on, we also expensing to the beauty side for the hair. So hair is very unique in the market, hairstyle virtual try-on, hair wig virtual try-on, all this are developed by our generative AI team. So we deploy that to B2B enterprise for brand adoption and also to our B2C app. So the commitment for R&D development will keep on increasing. For sales channel, I think it will not have a big increase. For the new markets like skin, medspas, clinics, that one is very new to us, and the organic demand is coming in very strong.
And we also like to develop in different countries besides major countries like U.S., Japan, [indiscernible], for the resellers partners and affiliate partners to get us more acquainted to the market and therefore prefer more brands to our site. So — and the good thing is both these AI, generative AI and all kinds of AI solutions, we can use it in our B2B enterprise solutions and also to our B2C app, beauty app smart — beauty app users, quite synergy complement to each other. And of course, for — we are hovering, still searching in the market for any synergy M&A to come, very selective. That’s always our target to go.
Clarke Jeffries: Really appreciate it. Yes, it makes lot of sense to invest behind the [indiscernible] innovation in Gen AI.
Operator: As there are no further questions at this time, I’d like to hand the conference back to management for closing remarks.
Jennifer Wu: Thank you, again, for joining our call today, and have a good one and look forward to seeing you online next time.
Operator: This conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
