Joy Spreader Group Inc., a leading marketing technology company listed in Hong Kong, announced its results for the first six months ended June 30, 2021 recently, during which the Group achieved revenue of HK$624 million (approx. US$79.8 million), an increase of 62.37 per cent YoY. Net profit excluding foreign exchange losses for the period also grew 102.26 per cent YoY to HK$137 million (approx. US$17.5 million). The robust growth in both revenue and net profit was attributable to the advantages that the Group has built over the past few years in the realm of data analytics and algorithmic modeling. In particular, the company’s competence in technologies has been reflected in the increasing demand for its supply-side platform (SSP) and demand-side platform (DSP) services.
The cornerstone of the SSP services business is an easy-to-navigate software as a service (SaaS) tool that provides access to data-rich profiles of online service channels through automated analysis of content and user behavior data, assisting sellers in choosing the merchandise that is the best fit for the demographics of the audiences in each channel. The DSP services platform contains data-rich profiles of clients’ products in tandem with algorithm-based intelligent forecasting services to assist clients in choosing the best marketing point on mobile new media platforms for selling or placing their products.
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As of June 30, 2021, Joy Spreader has covered 1.5616 million marketing points, up 208.65 per cent YoY. The number of the Group’s corporate clients also grew 36.89 per cent YoY to 308.
The expansion of the marketing points network on SSPs along with the increase in the number of clients on DSPs has yielded a massive amount of interactive data. In the marketing technology sector, data accumulation is known to have a decisive impact on the building and performance of models. With massive, structured data that spans a meaningful period of time and supports real-time interactions, the Group can better build, test and improve its algorithm models while delivering outstanding marketing services.
The synergy of the SSP and DSP services has become the backbone driving the growth of Joy Spreader’s performance-based marketing business. Increasing number of marketing points the Group has in place and clients the company acquires, which, in turn, results in significant gain of transaction data. A Flywheel Effect is created in that the increasing transaction data then further enhances the marketing efficiency and helps the Group win new customers by enhancing the model-based algorithms. As a result, the intelligent performance-based marketing technology platform is becoming the key growth driver of the company’s financial performance.
Looking back on Joy Spreader’s journey, the Group has built advantages in technologies thanks to its first-mover advantage in research and development (R&D) and continued R&D investment. the Group began developing data-driven and model-based algorithms on the WeChat Official Account Platform in 2013 before embarking on similar development on the Douyin platform in 2018, becoming one of the first marketing technology companies to do so on new media platforms.
On the other, Joy Spreader continued increasing its spend on R&D, raising it to HK$29.9 million (approx. US$3.8 million) during the first half of 2021 alone, a YoY gain of 712.5 per cent. The company also added to its collection of data models based on different product categories. As of June 30, the number of models had expanded to 169 units, up 14.19 per cent from 148 units at the end of 2020.
Joy Spreader plans to further increase its R&D spend. “We believe in the necessity and importance of investment in R&D, which, in turn, can be counted on to facilitate growth of the Group’s revenue and profit,” said Joy Spreader chairman Zhu Zinan during its conference call. “Going forward, we expect to continue our commitment to constantly optimizing algorithms in tandem with the Group’s active expansion into new markets and the anticipated increase in the number of marketing points.”
The ongoing investment in R&D is opening up unprecedented opportunities to the Group as it fully embraces digital technologies. The digital economy is widely known as a flywheel driving the development of today’s society while fundamentally changing the world by exerting influence on every single person in it as digital technologies evolve at an ever-faster pace. This not only brings unprecedented changes globally but also offers a great opportunity for the Group to grow its business internationally.
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