LexinFintech Holdings Ltd. (NASDAQ:LX) Q1 2019 Earnings Conference Call Transcript
May 17, 2019 • 07:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the LexinFintech First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. I must advise you that this conference is being recorded today.
I would now like to hand the conference over to your first speaker today, Mr. Tony Hung, Senior Director of Capital Markets. Thank you, and please go ahead.
Thank you, operator. Hello, everyone, and welcome to Lexin's first quarter 2019 earnings conference call.
The Company's results were issued earlier today and are posted online. Joining me today on the call are Mr. Jay Xiao, our Founder, Chairman and Chief Executive Officer; Mr. Craig Zeng, our Chief Financial Officer; Mr. Ryan Liu, our Chief Risk Officer; Mr. Stanley Zhou, our Senior Financial Director; and other members of our team.
For today's agenda, Mr. Xiao will provide an overview of our recent performance and highlights. Mr. Zeng will discuss our financial results, and Mr. Liu will discuss our credit performance.
Before we continue, I refer you to our safe harbor statement in the earnings press release, which applies to this call as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in renminbi.
I will now turn the call over to our CEO, Mr. Xiao, whom I will translate for.
Jay Wenjie Xiao
Hello, everyone. I am very pleased to announce to everyone that thanks to our three core strengths of consumption scenarios, financial technology and diversified funding we've begun 2019 on a strong note with very strong results and growth.
In the first quarter, our non-GAAP EBIT reached CNY742 million, an increase of 197% year-on-year. Our net income was CNY583 million, an increase of 228% year-on-year. This is our sixth consecutive quarter of strong growth since our IPO.
Continuing our strong growth in the fourth quarter of last year, in the first quarter, our financial technology revenues continued to grow rapidly, becoming now Lexin's number one source of revenues. This has been accomplished through Lexin's early adoption of AI in every part of our business and our industry-leading financial technology capabilities. Through the use of big data and AI, Lexin has substantially increased the efficiency of every facet of our business, whether it's in product recommendation, risk management or operations, while at the same time reducing costs and risk. Currently, our use of complex networks, address analysis, LDS (ph) information, customer behavior patterns, sentiment analysis, voice recognition and multiple forms of machine learning have also achieved an industry leading position.
As recognition of our leading position and capabilities, we once again expanded our collaboration with financial institutions, increasing the number, the scope and the depth of our collaboration with our funding partners. Recently, we started strategic cooperation agreements