Big data industry innovation service media
——Focus on data·Changing business
Currently, the development of the global digital economy has entered a period of important opportunities, and data resources, as a key element of the digital economy, have received widespread attention from all walks of life. In December 2022, the "Twenty Data Measures" were launched, followed by the intensive introduction of supporting policies to support the digital economy and digital elements. In March 2023, the National Two Sessions decided to establish the National Data Bureau. In July, the State Council appointed the first director of the National Data Bureau . This has a very positive promotion for the development of the entire industry, and data elements have triggered a wave of enthusiasm in the capital market. Daily Interactive (A-share code: 300766) has attracted much attention as a listed company in the field of data elements.
On August 19, 2023, Daily Interactive released its financial report for the first half of 2023. Financial report data shows that in the first half of 2023, Daily Interactive achieved an operating income of 212 million yuan, a year-on-year decrease of 25.0%; a net profit attributable to the parent company of 7.94 million yuan, a year-on-year decrease of 71.7%; and a net profit after non-attribution to the parent company of 6.45 million yuan, a year-on-year decrease of 6.45 million yuan. down 71.1%.
Preliminarily, the overall performance is unsatisfactory, indicating a double decline in revenue and profit, and the decline in profit is huge.
From the perspective of business classification, daily interactive business mainly includes two parts: developer services and data services. Among them, data services include public services and commercial services.
Source: Daily Interactive Financial Report
Judging from the revenue composition in the first half of 2023, public service revenue accounts for the highest proportion, reaching 60%; commercial service revenue accounts for 27%; developer service revenue accounts for 13%.
Cartography: Data Monkey
Below, we will analyze the business of the three major sectors of public services, commercial services, and developer services based on financial report data.
Public services: maintain steady growth and more application scenarios await breakthroughs
The public services sector is mainly services provided by the government, which will be affected by the public budget. In 2022, the State Council issued the "Guidance on Strengthening the Construction of Digital Government", requiring digital technology to be widely used in government management services. Daily Interaction mainly provides data intelligence "standardized" components and systematic solutions for relevant government departments and enterprises and institutions at all levels in public areas such as emergency management, earthquake disaster reduction, public services, population and spatial planning, and legal education.
Financial report data shows that in the first half of 2023, public service revenue was 126 million yuan, a year-on-year increase of 6%; the gross profit margin was 74.5%.
According to financial report data, in the first half of 2023, there were a total of 973 public service customers, with an average order price of approximately 130,000 yuan; in the same period of 2022, there were 1,129 customers, with an average order price of approximately 106,000 yuan. The average price per customer order increased by 23% year-on-year, and the customer retention rate was around 60%, which was a decrease compared with the same period in 2022.
Data source: financial report
According to the explanation of Daily Interactive, the decrease in the number of customers is mainly because they converted some direct customers into agency customers, which is equivalent to packaging some of the original customers together.
It can be seen that in the public service sector, although the government budget was under pressure in the first half of the year, the daily interactive public service sector still maintained steady growth. According to analysis, this has a greater relationship with the lower unit price per customer. Currently, it covers more than 2,800 districts and counties across the country.
In terms of products, Digital Intelligence Green Wave has already landed in Hangzhou. Starting from October 2022, Daily Interaction will work with the traffic police brigades of various districts in Hangzhou to create and strengthen the construction of green wave belts, changing the original long-distance green wave belt setting model, grouping 3-5 intersections into a group, turning the line into The speed increase reaches about 20%. At present, Hangzhou has more than 200 green wave belts with a mileage of more than 300 kilometers, covering the urban area of Hangzhou.
The green wave belt is a concept that has existed in the transportation industry for a long time. Daily interaction is calculated by integrating its own data, traffic control department data and third-party data, and using algorithms to calculate factors such as cycle time, surrounding scenes, road traffic flow direction, and driving speed. The optimal signal control parameters can be determined to quickly form an urban green wave solution, and can be dynamically adjusted based on real-time traffic flow and road conditions on the road.
It is reported that in terms of government data, similar application scenarios are expected to be launched in the future. For example, in the judicial scenario, a judge has hundreds of cases to decide every year. The workload is very heavy, and a large number of cases are very similar. Hangzhou has launched a market-oriented mediation mechanism, introducing lawyers, private non-enterprises Units (organizations) and other professional forces provide dispute resolution services. So, in the future, will neutral and independent artificial intelligence be able to give pre-judgment results, saving time and litigation costs for the parties involved?
In addition, in a hospital scenario, with full authorization from the National Health Commission, it is possible to completely desensitize relevant case data and then form a consultation plan for high-level doctors through large-scale model training and fine-tuning.
These are product development directions that need to be broken through.
Business services: Revenue fell 58% year-on-year, growth services declined severely
Daily interactive business services mainly include growth service revenue, energy enhancement and risk control service revenue, and brand services. This part of revenue is closely related to the macro economy.
Growth services mainly refer to the marketing activities to attract and activate Internet customers; energy-increasing and risk control services refer to the operations of existing users by customers. Taking financial industry customers as an example, daily interactive services and solutions have been deployed in many areas. It has been applied in large state-owned banks, commercial banks and large licensed consumer finance institutions to help financial institutions improve their inclusive financial services and control risks. Brand services mainly provide brand owners with services such as market research, data insights, and media analysis.
Financial report data shows that in the first half of 2023, business service revenue was 57.21 million yuan, a year-on-year decrease of 58%. Gross profit margin is 66.4%.
Among them, growth service revenue was 19.03 million yuan, a year-on-year decrease of 80%; energy enhancement and risk control service revenue was 32.58 million yuan, a year-on-year increase of 1.6%; brand service revenue was 5.37 million yuan, a year-on-year decrease of 22%.
According to Daily Interactive, the year-on-year decrease in growth services was mainly caused by the decrease in the budget for attracting new Internet customers. According to financial report data, in the first half of 2023, there were 24 new service customers, with an average order price of approximately 790,000 yuan; in the same period of 2022, there were 32 customers, with an average order price of approximately 2.91 million yuan. It can be seen that the budget for Internet customers has been severely reduced, and the customer retention rate is not high. The direct customer retention rate is only 30%. Growth services gross margin was 31%.
Source: Daily Interactive Financial Report
In terms of brand services, in the first half of 2023, there were 26 customers, with an average order price of 207,000 yuan; in the same period of 2022, there were 40 customers, with an average order price of 170,000 yuan. It can be seen that the number of customers fell by 35% and the average price per customer order increased. Customer retention rates also improved. The gross profit margin is 81%.
Source: Financial report
In terms of brand services, the cooperation between Daily Interactive and Mininglamp Group has achieved initial results. The two parties have jointly opened up the closed loop of marketing attribution. Currently, it has covered world-renowned beauty, catering, snacks and other brands. In May 2023, the two parties jointly released the multi-party marketing data management platform "Tomorrow DMP" based on a neutral and secure cloud environment. It is reported that the platform connects the brand's own first-party data, the second-party data generated by the platform and the third-party data to meet the needs of brand owners in multiple scenarios such as global marketing data monitoring, global media planning, and advertising optimization. .
From an industry perspective, brand companies are increasingly accepting digital marketing and placement attribution. The performance of this part is expected to improve in the future.
From the perspective of the brand customer industries served, 78% come from the consumer industry; 14% come from the Internet industry. It can be seen that although consumption has been affected by phases, it has shown a good recovery momentum. From a transmission point of view, brand owners will be willing to invest in advertising only after consumption begins, thereby affecting the advertising budget of Internet companies.
Source: Financial report
The only year-on-year growth among commercial services is energy enhancement and risk control services. According to Daily Interactive, the steady growth of this business mainly benefits from customers paying more attention to the efficient operation of existing users. This also reflects from the side that the current marketing activities of Internet companies pay more attention to the characteristics of "cost reduction and efficiency increase".
According to financial report data, the number of customers with growth and risk control services in the first half of 2023 was 36, and the average customer order price was 905,000. The customer retention rate is 45% and the gross profit margin is 84%.
Source: Financial report
Judging from the above data, the decline in daily interactive revenue is mainly due to the decline in revenue from growth services and brand services in commercial services.
Developer Services: Cumulative SDK installations exceeded 100 billion and daily active users exceeded 90 million
In terms of developer services, as of the end of June 2023, the cumulative installations of developer service SDKs exceeded 100 billion, of which the cumulative installations of smart IoT device SDKs exceeded 300 million, and the daily active users of the user operation platform exceeded 90 million.
In the first half of 2023, developer service revenue was 26.74 million yuan, a year-on-year increase of 4%.
According to financial report data, the average customer price of developer services in the first half of 2023 was approximately 39,000 yuan, while in the same period of 2022 it was 40,000 yuan, a slight decrease. Customer retention rate is 72%. The gross profit margin is 63.9%.
Source: Financial report
Developers, as the earliest service targets for daily interactions, used to only provide convenient push services, but now they can go deep into the user operations of the APP.
It is reported that Daily Interactive uses personal big data to intelligently determine the best time to send messages, accurately matches target groups through functions such as model circles, and automatically generates copy content based on themes. Currently, it has been used in video, music, social networking, and travel. , e-commerce and other industries have achieved significant results, which can promote the simultaneous improvement of the utilization rate of push message channels, message click-through rates and user conversions.
At the same time, we have carried out strategic cooperation with leading smart car manufacturers and automotive operating system providers such as SAIC Passenger Cars, BYD DiLink, Leapmotor, Lianyou Technology, etc., in terms of intelligent user reach, user data precipitation and analysis, and car owner group portraits. , automobile brand marketing and other scenarios have been explored and applied.
Based on the above information, it can be seen that Daily Interactive's performance in terms of revenue in the first half of 2023 was average, especially the revenue from commercial services, which is closely related to the macro economy, declined significantly. However, at the business level, there are still many bright spots, which are expected to be the key to improving revenue in the future.
At the same time, we also discovered two vulnerabilities in this financial report:
1. Operating efficiency declined and profits declined seriously.
Judging from the consolidated income statement, in the first half of 2023, operating profit was 3.59 million yuan, down 90% year-on-year; revenue fell 25%, and total operating costs fell 16%; among them, the three major expenses totaled 156 million yuan, down only 6.5% (The same period in 2022 is 167 million yuan), and the operating profit margin fell from 13% to 1.7%.
It can be seen that the reason for the decline in profits is not only the decline in revenue, but also the deeper reason is the decline in operating efficiency. This requires daily interactions to dig deep into the reasons from each business line.
2. High receivables and high bad debt provision ratio
Data from the consolidated balance sheet show that at the end of June 2023, the balance of receivables was 130 million yuan. Compared with the revenue scale of 212 million yuan in the first half of the year, the balance of receivables was relatively high.
From the perspective of bad debt provisions, the bad debt provisions accrued on an individual basis are 75 million yuan, of which the higher amount is 73.43 million yuan for Shanghai Huanshou Industrial Co., Ltd. After investigation, Shanghai Huanshou Industrial Co., Ltd. went bankrupt and liquidated in 2020.
The bad debt provision accrued on a combined basis was RMB 26 million, totaling RMB 101 million. Comprehensive calculation, the bad debt provision ratio is as high as 44%.
Source: Financial report
As can be seen from the above, daily interactions need to be further strengthened in terms of receivables policies and internal controls.
On August 23, 2023, dozens of financial institutions, including Cathay Asset Management, BOC Asset Management, PICC, and Zheshang Securities, conducted a joint survey on daily interactions in the form of a conference call.
During the conference call, Daily Interaction shared some forward-looking layouts with the agency. In 2015, Daily Interaction began to use vectorization technology to vectorize APP list data or behavior data and use it to meet the needs of business intelligence. In terms of the application of big data models, Daily Interaction promotes the application of controllable large models in vertical fields, and has now deployed in three fields.
The first is in the field of digital intelligent transportation. The company worked with ecological partners to introduce large-scale model concepts and methods to help Hangzhou transform more than 400 kilometers of roads into green belts, improving the overall driving speed.
The second is the field of precision marketing. In the past, many customers had to give their Y value (the target variable for model training), and the cost from training to modeling was very high. When training a model, in order to construct training data, it is usually not enough to have features; target variables are also needed. The target variable is generally represented by y (the feature is generally represented by x). Now on the daily interactive personal light platform, very detailed word cloud results can be obtained in a few minutes. At the same time, after the "Personal Information Protection Act" and "Data Security Act", some brand customers still have barriers to establishing trust at the beginning even under the framework of joint computing. So how can we help them build it without data? Model, daily interaction uses large models and data weaving capabilities to form a word cloud table under the daily interaction characteristic word cloud, helping customers obtain crowd packages for accurate delivery and achieving closed-loop monitoring.
The so-called data weaving technology refers to the use of large models to understand products and brands, and "translate" the "jargon" of brand customers for brand people into characteristics that can be identified by underlying data assets. For example, "translate" Generation Z into Are there any features such as apps like Miaojie and Dewu? This is an example of the application of data weaving technology in actual business.
The third one is in the field of public security. The company relies on large language model technology and deep learning model training to generate a local knowledge base to achieve intelligent clue expansion guidance, intelligent analysis of results, automatic generation of research and judgment reports, etc., saving a lot of manpower and material resources.
It can be seen that the daily interactive big data model has been fully implemented in the three fields of digital transportation, digital marketing, and public safety.
In terms of data accumulation, there is a "Hundred and Thousand Project" within the company. Currently, more than 5,000 tag systems have been formed, which are the characteristics of more than 5,000 crowd packages.
Recently, the Ministry of Finance issued the "Interim Provisions on Accounting Treatment Related to Enterprise Data Resources". The process of adding data assets to the table allows the market to have a more realistic understanding of the situation of each data company. For participants in the data element market, after data resources form assets, they will have an impact on the balance sheets of enterprises and governments. Data assets can then be revitalized through transactions, guarantees, financing, etc., which can release a larger market. space.
★ Follow the Data Yuan official account and reply "Daily Interactive 2023 Semi-Annual Report" in the background to download the full version of Daily Interactive's 2023 Semi-Annual Report.
Text: Qiqi / Data Ape
