Thanks, Aashi Shah. Let me introduce Aurora Mobile. Let's look at the screen that we have. Aurora Mobile was founded in 2011. Over the years, we have built a mature push notification infrastructure backed by more than a decade, 15 years to be exact, of operating experience. Today, we have evolved into a platform company with global SaaS growth potential and growing enterprise AI capability. As Aashi Shah mentioned, we went public under the ticker of JG, and we are listed on Nasdaq. We did it in July 2018. In terms of scale, we have built strong advantages across several metrics, including the 1.99 million cumulative app customers, 85 billion cumulative SDK installation, and 1.49 billion monthly active device.
Together, this matrix demonstrate the scale of our network with our SDK now covering more than 90% of mobile devices in China. One question that we always get asked, "What actually do we do?" Specifically, we provide enterprise with customer engagement solution across multiple channels, including push notification, email, SMS and WhatsApp. This solution help our customers communicate with their end user in a more targeted and efficient manner, thereby improving user engagement, retention, and conversion. Let me give you some examples of the actual use cases. For example, all apps needs to send notification to its user, be it promotional or simply to inform the users to update the latest version of app to the App Store, or Tesla sending the status of the battery charging % to the car owners.
Even things like online merchants would like to send notification to its user on the timing of the merchandise delivery, coffee apps such as Starbucks China, which is our client, informing the customers that their lattes or their Americanos are ready to pick up. Also the other use case is airline needing to inform their passenger on their upcoming flight, the check-in gate, the boarding gate, and the time. To use our services, the app developer only need to download and integrate our SDK, which is also known as Software Development Kit, to send messages to their users' mobile devices through our platform. Our SDK is broadly compatible with iOS, Android, and HarmonyOS and other mainstream operating system, as well as all the push notification channel of major mobile device manufacturer.
This enable one-click message delivery across major devices and operating system, significantly reducing the development and maintenance costs associated with cross-platform messaging. As you can see at the left-hand side of this slide, we have many brand name and well-known customers that are using our services. Next is the company highlight. First, I would like to show you on the upper left corner. After more than a decade of development, we have captured a market share of more than 57% in China third-party push notification industry, establishing a clear leading and dominant position. This means that when a developer needs push notification service, Aurora Mobile is often the first provider that they consider.
Second, as shown on the upper right corner, our global customer engagement platform, which we call EngageLab, the ARR or annual recurring revenue, reached $11.7 million in March 2026, up 172% year-over-year. The number of customer has also increased by 120% year-over-year. This result shows that our global expansion is beginning to deliver visible results. In the lower left corner, we highlight the progress of our AI strategy. We launched our global enterprise AI platform in September 2023. The platform connects with leading global model and helps enterprise to deploy AI to real bus iness scenario. Finally, we have achieved profitability for the four consecutive quarters. Equally important is for the financial year 2025, we recorded a full year profitability. In the first quarter of 2026, total revenue increased by 5% year-over-year to RMB 93.3 million.
Subscription revenue reached another record high of RMB 64.9 million, while both gross profit and gross margin also improved year-over-year. Let us break down the Aurora Mobile's revenue mix in the first quarter of 2026. Developer service accounted for 77% of total revenue, with subscription revenue contributing 70% and value-added services contributing 7%. Vertical application accounted for 23%, including MoonFox data and our fintech solutions. On this slide, let me explain more about Aurora Mobile in four key aspect. The first is our client, who are they? We serve enterprise customer across the globe, falling into three core groups. First, the mobile internet and app developers. Second, overseas-focused companies with global brands. Our EngageLab customers originated from more than 70 countries and region.
Third, the large enterprises from various industry, including finance, securities, retail, education, healthcare, and our well-known client, including Tesla China, Shanghai Disneyland, China Southern Airlines, and many more. Second, the pain point that we solve. Enterprise commonly face five major challenges in user engagement, operational growth, AI adoption, and data compliance. To start with, the customer engagement channel are fragmented. Managing multiple channels separately is costly and complicated. Besides, developing and maintaining self-built push notification, marketing or AI service system requires heavy R&D investment and long development cycle and high operational cost. What's more, companies struggle with user churn and low conversion rate. They re ly heavily on manual operations, lacking precise user segmentation and automated marketing tools. In addition, implementing AI is difficult and costly.
Connecting large language model, managing multiple AI tools, preventing data leaks, and ensuring compliant usage, all this pose huge risk to companies. Last but not least, cross-border data management and privacy protection bring tremendous compliance and security pressure, especially for the highly regulated industry. Third, our core advantages. As a Nasdaq-listed company, we are a leading global provider of customer engagement and marketing technology with solid competitive edge. Here are our advantages. First, we own robust technology infrastructure. Our system processes 12.8 billion messages daily and support concurrent access from more than 1 billion devices with a delivery rate of up to 99.9%. Second, our EngageLab platform integrates nine mainstream communication channel, includes app push, web push, SMS, email, and social media. Our self-built global network delivering outstanding performance for overseas businesses in both delivery and compliance.
Third, we are AI native. Our GPTBots intelligent agent platform can handle more than 90% of regular customer service work and cut labor costs by more than 70%. ModelX, our unified multimodal AI platform, enables easy access and centralized management of top-tier AI models with transparent billing and fully securities control. Fourth, we set high standard for data security and compliance. We hold certificates for both domestic and overseas regulation with financial-grade encryption and on-premise deployment. Last but not least, the real benefits that we bring to our clients. Our product creates tangible value for clients in four areas. Firstly, we reduce operational cost. Client can save more than 80% on R&D and maintenance fee by replacing self-built system. The launch cycle is shortened from 6-12 months to just one to two weeks. Secondly, we drive revenue and conversion.
Our omni-channel precise engagement help boost user activity by 20%-50%, user retention by 15%-40%. For our overseas businesses, our EngageLab solution has proven to achieve an ROI of 37.5% within the first week of deployment. Third, we mitigate risk. We help clients stay fully compliant with data privacy rules, avoiding penalties and reputational damage. Fourthly, we accelerate AI transformation. Client can deploy AI application right out of the box without building dedicated AI teams. Our unified platform also simplify model management and improve stability of AI services. This is a snapshot of our customer that we have. We serve a broad range of enterprise customer around the world across different industries such as EVs, automotive, consumer, internet, finance, logistics. Our customer include Tesla China, Nvidia China, BYD, SF Express, Bilibili, RedNote, and many more.
This reflects the quality and diversity of our customer base as well as the strong stickiness of our platform. Next, you can see we have a very strong and dominant position in the Web3 industry, too. Our Web3 customer base includes many of the world's leading exchanges, trading platform, and wallets provider, excuse me, such as Binance, OKX, HTX, and HashKey Group. The breadth and the quality of the customer portfolio highlight our strong market penetration, trusted industry reputation, proven ability to support large scale customer engagement for leading participation across global Web3 ecosystem. Excuse me. This show you that Aurora Mobile has a clear three-layer growth model. The first layer is our domestic core business, central on our push notification services in China, which provide stable cash flow and strong data foundation.
Currently, the domestic market contributes about 75% of the revenue. The second layer is EngageLab global SaaS business. The third layer is our AI platform, GPTBots, and I will speak more on this product and services in the following slides. EngageLab is the name of our global customer engagement platform. Next. I want to highlight that we provide a full suite of services, including app push, web push, email, SMS, WhatsApp, OTP, CAPTCHA, and live chat. Through this one-stop omni-channel engagement, we cover the full closed loop from verification and messaging to marketing automation and online customer service. In China, probably you appreciate users do not rely heavily on email or WhatsApp. However, in overseas market, these two tools are essential for daily communication. For example, bills and notification are generally delivered through emails outside of China.
Overall, EngageLab can provide one-stop support for all-scenario communication needs between the enterprise and their customers, enabling efficient connectivity. At the same time, our customers are now covering 70 countries and regions, demonstrating the global customer recognition of our product strength, localization capability, and compliance standard. Next, I'll go over the numbers for EngageLab. In the first quarter of 2026, EngageLab had 1,864 customers, representing a year-over-year growth of 120%. Revenue in the first quarter increased by 210% year-over-year and 31% quarter-over-quarter. ARR reached $11.7 million, representing a year-over-year growth of 172%. Next, to meet the global compliance and data security requirements, EngageLab has deployed data centers in multiple regions, including Singapore, Frankfurt, Hong Kong, Virginia, and Istanbul. This enables broad global coverage, local compliance, and stable low latency performance.
The third part is our AI product, GPTBots. GPTBots is our global enterprise AI platform. The three growth engines introduced above, which is our domestic core business, EngageLab, and GPTBots are not isolated from one another. They are connected through customer engagement data, business context, and AI execution, forming a strong platform-based competitive moat. Next, our AI products are designed to make it easier for enterprises to use AI and accelerate their business development. We see a significant gap between AI capability and the actual enterprise needs. Therefore, GPTBots focuses on specific scenarios and lowers the adoption threshold, enabling AI to be effectively applied in business operations and generate tangible value. To summarize, we are not building our own large language model. Instead, we deeply integrate with leading global large models.
GPTBots serves as an enterprise-grade AI agent factory, enabling enterprises to quickly build, deploy, and manage secure, compliant, and execute-capable AI agents without developing them from scratch. We integrate with leading global large language models, which include Anthropic, OpenAI, Gemini, Groq, DeepSeek, Zhipu, Mistral, and many more. Enterprises can select the most suitable model to balance the performance, cost, and compliance. Now, I will move on to the financial data of our business. First, I would like to highlight that we achieved full-year profitability in FY 2025, and this is a historic first for us. Entering 2026, we delivered a solid start in the first quarter. The first quarter is traditionally a slow season for domestic industry. Despite the market environment, we have maintained solid momentum and achieved profitability, and we have now achieved profitability for four consecutive quarters.
To the right, total revenue in the first quarter reached RMB 93.3 million, up 5% year-over-year. Revenue decreased quarter-over-quarter, mainly due to the seasonality that I talked about. Next, subscription revenue reached RMB 64.9 million, setting another record high and growing 21% year-over-year. The growth is mainly driven by EngageLab. Gross profit reached RMB 66.3 million, up 13% year-over-year. Gross margin was 71%, up 490 basis points year-over-year. The next section summarizes Aurora Mobile core growth revenue, rationale, and new valuation. This slide is very important because it shows and explains why Aurora Mobile should be at a higher market cap. We strongly believe Aurora Mobile should not be valued purely as a traditional infrastructure company, nor purely as a single-point AI tool. Our framework should reflect platform synergy, global SaaS growth, and AI upside together.
In short, Aurora Mobile should be valued using different method than it is now, these are the reason why. First, a solid domestic foundation strengthen our resilience against business volatility. Our dominant position in the domestic market provides strong and stable cash flow to support ongoing global and AI expansion. Second, our global SaaS market strategy brings visible long-term business growth. Customer number and ARR has been growing in triple digit Third, our native AI business strategy creates opportunity for upward valuation re-rating. We are read y to capture the next wave of deeper AI deployment in enterprise. Fourth, a platform built on deep business data accumulation can effectively defend against industry competition. Fifth, a product model center on actual business outcome raises the ceiling and sustainability of commercialization.
We believe sooner rather than later, the market will realize the potential of Aurora Mobile and will start to look at our valuation differently. Next, why do we believe it is a good time now to look at Aurora Mobile? On this slide, we look at five major trends that we have observed, these trends align closely with our business model and growth strategy. First, enterprise software is moving towards AI-driven execution layer. In the past, most enterprise SaaS product focuses mainly on data recording or process management. Today, the industry is entering a new stage. Software is no longer merely a recording tool. Instead, it uses AI to automatically trigger business action and complete business execution. GPTBots is aligned with this evolution, helping us evolve beyond traditional messaging tool towards a enterprise layer of execution platform.
Second, customer engagement and AI are deeply converging. The global customer engagement industry is undergoing a major transformation. Simple message delivery to SMS and push notification is no longer sufficient to meet the enterprise needs. AI customer service, intelligent marketing, and automated leads generation are becoming standard capabilities. EngageLab product architecture, which provides omni-channel engagement with native AI, closely matches the direction of industry convergence. Third, business context and workflow integration are becoming increasingly critical. Enterprise today are moving away from fragmented, isolated AI point solution. They increasingly need integrated solution that connect end-to-end business data and integrate with their own workflow. We have full cycle custo mer data foundation enable us to seamlessly connect data, product, and business processes, this is a key barrier that differentiate us from fragmented AI point solution.
Fourth, the way business pay for customer engagement and AI solution is shifting from seat-based pricing to outcome-based pricing. The logic of global SaaS procurement has changed significantly. Enterprise no longer make purchasing decisions simply based on the number of seats. Instead, they are more willing to pay for actual business outcomes such as cost reduction, efficiency improvement, and revenue growth. In line with the monetization upgrade path mentioned earlier, our business model is well aligned with this new procurement trend, opening up long-term room for price improvement and profitability. Fifth, Aurora Mobile is positioned in the intersection of this major trend. The industry transformation discussed above are not isolated trend.
With its comprehensive capability across underlying messaging infrastructure, global SaaS market strategy, full chain data, and a native AI workflow, Aurora Mobile is well positioned to capture the full range of opportunity that present in the market. It provides a solid foundation for our long-term performance delivery. Okay. You can follow us on X, Facebook, Weibo, and StockTwits on our latest company news and information. Thank you all, and that's all I have for today.
Thank you so much, Chen, for the presentation. I have a few quick questions from the audience, and I would like to remind everybody, if you have questions, please submit the m at the Q&A section at the bottom of your screen. Starting with your competitive landscape, can you talk a little bit about who your competition outside of China is, and if there's any major players in China also in the same space?
Sure. Yeah, I can speak to that in China. Our competitor in China, okay, like all I have said, we have a market share of 57% in China. Our next competitor is having about 25% of market share in China, it's way distant away from us, and that's in the China market. If you look at overseas, it's more fragmented, as I say, because there is no one ser vice provider that provides such service as what we do right now. If you try to send a message to Android system, you can use the FCM service from Google. If you want to send messages to your users in iPhone, you have to use iOS sy stem.
That's very difficult for a particular overseas company or developer to send a set of message to their customer using just one system, which that's where we come in. For us, once you use our services, you no longer have to worry about what your end user uses, whether be it Google Android or Huawei HarmonyOS system or even iOS. We can effectively send all the messages to all your customers in one click.
Right. What are you seeing currently, what is the strongest demand for GPTBots coming from, and what are the most common enterprise use cases that are there right now?
That's a very good question. We see a lot of where, over the past, I would say 12 months, we see a lot of companies saying that, "Yes, I want to use AI." A lot of time they stop at just using it for Q&A or even doing some very limited deployment into the system. What we're seeing is, especially our customers, a majority of them are, right at this stage, they are replacing the customer service using the bot, which means that all your company's Q&A or your policy, you can upload to our GPTBots, and that itself will create an intelligent chatbot for your customers, which means that you don't have to worry about time.
You don't worry about the language that they use because the bot itself can converse in multi-language, and they can answer the question in 7 times 24. This is where we see the first wave is for the companies to replace their existing chatbot with the intelligent GPTBots.
Okay. Can you talk a little bit about your financials? Do you have any debt outstanding? Are you burning cash? Will you need new financing in the next two years? Can you also talk about your level?
Sure. Great. Good question. I'm glad to say that we are debt-free. If you look at our balance sheet, we have zero debt. What we have is, I think it's close to RMB 140 million in cash. Right now, what we're seeing is our core business is generating free cash flow. We are not in need of money to survive. We will be good to have additional cash through financing for M&A transaction, for even more aggressive expansion overseas.
Okay. Do you have an earnings per share target for 2026, 2027? Any kind of guidance given out there?
No, we do think that we don't give that particular guidance. We do think that 2026 will be a great year in terms of our profitability. We see a huge hype, a big jump from what we had in 2025.
Okay. I'd just like to end by asking if you can sum up the value proposition for investors who might be looking in this space, and just give a summary of everything you've said and why investors should be looking at Aurora Mobile.
Sure. I think you look at what we have right now, we have the product, we have the history, we have the experience, and what we are lacking now or what we have been a bit low is the recognition or the brand name across outside of China. Right now, that's why our share price or our valuation has been a bit low. If you look at our valuation, I think there's a potential upside that you can take a closer look, and potentially we can have a good year.
Great. Thank you so much. Thank you so much for sharing your story with us, Chen, and spending your day with us. I would like to thank everybody in the audience as well. Thank you for spending time with us today. Thank you.
Thank you all. Bye.
Bye.