1. User data
The monthly active users of WeChat and QQ have basically reached the end and remained stable; the number of value-added paying users has also remained stable; the number of paying users for other value-added products, including Tencent Conference, Tencent Microcloud, and WeChat Reading, adds up to about 26 million, which is not a big scale.
2. Revenue and gross profit
Quarter:
Both Q4 revenue and gross profit increased year-on-year, but the Q4 growth rate in '21 was also relatively low, so there were no major highlights in revenue and gross profit this quarter, but fortunately, the overall data showed a steady recovery. The quarterly gross profit margin was 42.6%, lower than Q3 and Q2, and higher than the same period in '21.
Year:
Revenue and gross profit declined slightly year over year, and gross margin was also slightly lower than the same period in '21. The weakness in annual data was mainly due to the impact of data for the first three quarters. The overall data has stabilized since Q4. The overall data for '23 is optimistic, but at present it's hard to say how much growth will occur. After all, the overall environment hasn't improved much.
3. Net profit, free cash flow
The net profit increase after Q4 adjustment was close to 20%, but the absolute value was not very high. It was below 20 billion dollars, mainly due to the excessive decline in 21Q4 profit data.
Year:
Although annual revenue and profit fell slightly year over year, overall environmental reasons were acceptable; however, free cash flow fell more than 10% year on year for two consecutive years, and fell to 88.4 billion yuan in '22. The decline was quite severe. Originally, Q4 free cash flow would rise sharply, and the overall annual free cash flow could reach around 100 billion dollars,...