IQIYI Inc (NASDAQ:IQ) Q1 2019 Earnings Conference Call Transcript

May 16, 2019 • 08:00 am ET

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IQIYI Inc (NASDAQ:IQ) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to iQIYI First Quarter 2019 Earnings Conference Call. Well, at this time, all participants are in a listen-only mode. Today's call will include a question-and-answer session. (Operator Instructions) I must advise you that this conference is being recorded today, Friday 17 of May 2019.

I'd now like to hand the conference over to your first speaker today Ms. Dahlia Wei, Investor Relations Director. Thank you. Please go ahead.

Executive
Dahlia Wei

Thank you, operator. Hello, everyone and thank you all for joining iQIYI's first quarter 2019 earnings conference call. The conference results were released earlier today and are available on the Company's Investor Relations website at ir.iqiyi.com. On the call today are Dr. Yu Gong, our Founder, Director and CEO and Mr. Xiaodong Wang, our CFO. Dr. Yu will give a brief overview on the Company's business operations and highlights, followed by Xiaodong who will go through the financials and guidance.

After their prepared remarks, we'll hold a Q&A session.

Before we proceed, please note the discussion today will contain forward-looking statements made under the Safe-Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC. iQIYI does not undertake any obligation to update any forward-looking statements except as required under applicable law.

With that, I will now turn the call over to Dr. Gong. Please go ahead.

Executive
Yu Gong

Hello, everyone and thank you for joining us for our first quarter 2019 earnings call. We achieved another solid quarter of results. Total revenues were RMB7.0 billion , up 43% year-over-year. Total subscriber members reached 96.8 million as of end of March. This number does not include any past subscribers and it represents a 58% growth from a year ago. We continued to stressing our plan for attracting new users and increase user experience.

During the first quarter, average DAU of mobile apps and the total user time spent both achieved double-digit growth year-over-year. iQIYI continued to rank number one among online video platform in China, in terms of mobile NAU -- mobile DAU and the total time spent according to third party tracking data of iResearch and the customer belt.

Let me start my review with our membership business. During the first quarter, total revenues for our membership business increased by 64% to RMB3.4 billion . Total subscribers reached 96.8 million at quarter end, representing a net addition of 9.4 million from last quarter. This was mainly attributable to our premium content and targeted marketing campaigns.

In terms of premium content, we released several high quality original drama during the quarter such as The Legend of Haolan, The Golden Eyes, The Legend all of which quickly saw subscribers growth. Licensed dramas such as The story of Minglan, All is Well and I Will Never Let You