BEST Inc (NYSE:BSTI) Q4 2018 Earnings Conference Call - Final Transcript
Mar 05, 2019 • 07:30 am ET
Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to BEST Inc.'s Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in listen-only mode. Following management's prepared remarks, there will be a Q&A session.
With us today are Johnny Chou, BEST Inc.'s Chairman and CEO; George Chow, Chief Strategy and Investment Officer; and Alice Guo, Chief Accounting Officer and Senior Vice President of Finance.
For today's agenda, Johnny will give a brief overview of the business and operational highlights then Alice will explain the details of the financial results. Following the prepared remarks, you'll have -- we will answer your questions.
Please note that this call is also being webcasted and there is Investor Relations presentation at BEST Inc.'s IR website at ir.best.inc.com. A replay of this call will be available on the IR website later today.
Before I begin, I would like to read the Safe Harbor statement on behalf of BEST Inc. Todays' discussion will contain forward-looking statements. These forward-looking statements are based on management's current expectations. They involve inherent risks, uncertainties and other factors all of which are difficult to predict and many of which are beyond the management's control.
The Company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or others except as required under applicable law. Please also note that certain financial measures that the Company uses on this call are expressed on a non-GAAP basis such as EBITDA, adjusted EBITDA and non-GAAP net loss. The GAAP results and the reconciliation of GAAP to non-GAAP measures can be found on BEST Inc.'s earnings press release.
Finally, please note that unless otherwise stated, all figures are -- mentioned during the conference call are listed in RMB. Now I'd like to turn the conference over to Johnny Chou, Chairman and CEO of BEST Inc.
Shao-Ning Johnny Chou
Thank you. Good morning and evening everyone. Welcome and thank you for joining our fourth quarter and fiscal year 2018 earnings call. We are very pleased to report that we had an excellent quarter and a fiscal year, driven by solid revenue growth, strong market share gains, and the margin improvement, and excellent performance in long-term growth initiatives. The fourth quarter was a milestone quarter for BEST as the Group achieved positive net profit on a non-GAAP consolidated basis.
This is an important marker for our business as we continue to achieve fast growth and improved efficiency in our core businesses, while investing in the future. For the first (ph) quarter, BEST total revenue increased by 38% year-over-year to RMB9 billion, is hitting in the top end of our guidance. Gross profit increased by 82% and gross margin improved by 1.4 percentage points. Our non-GAAP net profit was RMB20 million compared to a non-GAAP net loss of RMB116 million in the same period of 2017.
Meanwhile, fourth quarter adjusted EBITDA was RMB150 million, compared to negative RMB24 million in the fourth quarter of 2017. For