111 Inc (NYSE:YI) Q2 2019 Earnings Conference Call Transcript
Aug 15, 2019 • 07:30 am ET
Hello, ladies and gentlemen. Thank you for standing by for 111, Inc. Second Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to turn the meeting over to your host for today's call, Mr. Tip Fleming from Christensen. Please proceed, Tip.
Thank you, operator. Hello, everyone, and thank you for joining us today for 111's second quarter 2019 earnings conference call. The Company's results were released earlier today and are available on the Company's IR website at ir.111.com.cn as well as on GlobeNewsWire services.
On the call today from 111 are Dr. Gang Yu, Co-Founder and Executive Chairman; Mr. Junling Liu, Co-Founder, Chairman and CEO; Mr. Luke Chen, Chief Financial Officer; Mr. Harvey Wang, Co-COO; Mr. Barry Zhu, Co-COO; Ms. Monica Mu, Investor Relations and Mr. Alex Liu, Finance Director. Junling will give an overview of the Company's performance and operations, followed by Luke, who will discuss financials and guidance. They will be available to answer your questions during the Q&A session that follows.
I have to remind you that this call may contain forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and current market and operating conditions and related events that involve known and unknown risks, uncertainties and other factors, all of which could cause actual results to differ materially. For more information about these risks, please refer to the Company's filings with SEC. 111 does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. With that, it is now my pleasure to introduce Mr. Junling Liu. Junling, please go ahead.
Thank you, Tip and thanks everyone for joining our second quarter 2019 results discussion. My comments will correspond to the slides which we posted with our press release earlier today on the Investor Relations section of our website. If you have not already done so, I would encourage you to download the slides at ir.111.com.cn. But, let me begin by sharing our key financial and operating metrics for the second quarter.
Our net revenue was up 109.2% year-over-year and 27.8% quarter-over-quarter to RMB838.2 million, which exceeded the high end of our guidance for the third consecutive quarter. The overall growth rate hit a record high since our IPO last September and we have actually been seeing an acceleration in our growth. Gross profit was RMB42 million, which was an all time high for us and an increase of 72% year-over-year and 26.5% quarter-over-quarter.
Turning to Slide 6. Our overall revenue growth was mainly attributable to the robust performance of our B2B segment. Since our IPO, due to the rapid growth in revenues from both existing and newly added pharmacies, our B2B revenue has been expanding at approximately 40% for three consecutive quarters. It was up 253.4% year-over-year and 41.4% quarter-over-quarter to RMB649.9 million this past quarter.
This accelerated revenue growth is underpinned by three