Here Group Ltd. Q1 FY2024 earnings call

• Revenue increased 31.8% year-over-year, with other personal interest courses up 36.1% quarter-over-quarter, now accounting for 47% of total revenue.
• As of September 30, 2023, had ~103.3 million registered users, a 51.9% increase from the prior year, and paying learners up 18.2% year-over-year.
• Refined course offerings: QiNiu has a closed-loop learning tool system; JiangZhen has a Weekly Insights section; QianChi has a unique 3D approach for senior learners.
• Hosted offline events like QiNiu's anniversary event, boosting brand awareness and user engagement.
• Leveraged AI in quality inspection (reducing errors and costs) and user profiling (enhancing engagement).

For the first quarter of fiscal year 2024, total revenue grew 31.8% year-over-year to RMB 869.1 million. Revenue from individual online learning services grew 29.2% year-over-year to RMB 755.9 million, making up 87% of total revenue. Revenue from Enterprise Services was RMB 68.4 million, 7.9% of total revenue. Live e-commerce generated a GMV of around RMB 41.9 million during the quarter.

For the second quarter of fiscal year 2024, expects revenues to be between RMB 920 million and RMB 950 million, representing a year-over-year increase of 17%-20.8%.

Q: Where is AI having the most impact?

A: AI is used for quality inspection (reducing errors and costs) and user profiling (enhancing engagement).

Q: Update on e-commerce segment?

A: Live e-commerce in Chinese liquor has good GMV, with positive responses from users.

Q: Thoughts on Enterprise Services and new growth areas?

A: Focus on executing current initiatives and exploring new markets via partnerships and emerging tech.

Q: Courses driving growth in other personal interest?

A: Short video production and QianChi for senior learners are key drivers.

Q: Commentary on Kelly's Education acquisition?

A: Prudent approach to consolidate in Hong Kong market before scaling further.

Q: Operating expense streamlining?

A: AI and tech use to streamline operations, reducing expenses as a percentage of total revenue.