Uxin Limited (NASDAQ:UXIN) Q1 2019 Earnings Conference Call Transcript
Jun 10, 2019 • 08:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to Uxin's First Quarter 2019 Earnings Conference Call. At this time, all participants are in listen-only mode. After management prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded, if you have any objection, you may disconnect at this time.
I would now like to turn the call over to Nancy Song, Investor Relations, Director of Uxin's. Please go ahead.
Thank you, operator. Hello, everyone. Welcome to Uxin's first quarter 2019 conference call. Today, D.K., our Founder and CEO; and Zhen Zeng, our CFO, will discuss our financial results for the first quarter. Following the prepared remarks, D.K. and Zhen will be available to answer your questions.
Before we start, I'd will like to remind you that our statements today will contain forward-looking statements that we make under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are made based on management's current knowledge and assumptions about future events that involve risks and uncertainties, which could cause actual results to differ materially from our expectations. Uxin does not undertake any obligation to update any forward-looking statements, except as required under applicable laws. For more information about the potential risks and uncertainties, please refer to the company's filings with SEC.
With that, I will now turn the call over to our CEO, D.K. Please?
Thank you, Nancy. Hello, everyone. Thank you for joining our first quarter 2019 earnings conference call. We are pleased to start the year with another strong quarter of growth as well as a significant improvement on the bottom line. Total revenue in the quarter increased by 55% year-over-year and exceeded RMB1 billion, once again beating the high end of our guidance. Thanks to greater economics of scale and a more effective cost control.
Gross margin improved to 70% from 66% in the same period one year ago. We also continued to gain operating leverage during the quarter, which enabled us to cut adjusted net loss by over 50% year-over-year to RMB231 million, and significantly reduce adjusted net loss as a percentage of total revenue to 23% from 74% in the same period last year.
Before we dive into operations, I'd like to highlight that starting from the first quarter this year, we will only disclose the transaction volume and the corresponding operational metrics for the transaction with generated revenues. With this change, transaction volume growth will serve as better indicator of our revenue growth by excluding free of charge transactions, investors can get a clear picture of the take rate that we can actually change -- charge from one used car and it will better demonstrate our ability to enhance monetization and the development of our cross-regional and intra-regional business. In addition, this will reflect how we are more focused on the transaction, which have generate monetization potential and better margin profile. The new method of disclosure has been applied to all the metrics of this earnings