IQIYI Inc (NASDAQ:IQ) Q2 2019 Earnings Conference Call - Final Transcript
Aug 19, 2019 • 08:00 pm ET
Ladies and gentlemen, thank you for standing by and welcome to the iQIYI Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) I would now like to hand the conference over to your first speaker today, Investor Relations Director of iQIYI, Dahlia Wei. Thank you. Please go ahead.
Thank you, operator. Hello, everyone, and thank you all for joining iQIYI's Second Quarter 2019 Earnings Conference Call. The company's 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. Gong will give a brief overview of the company's business operations and highlights, followed by Xiaodong, who will go through the financials and guidance. After their prepared remarks, we will hold a Q&A session.
Before we proceed, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provision of the US Private Securities Litigations Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our 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.
Tim Gong Yu
Hello, everyone, and thank you for joining us for our second quarter 2019 earnings call. I would like to begin by briefly going over some recent industry updates. So far this year, China's macroeconomic environment has been challenging amid international trade tension and other headwinds. Nevertheless, Chinese users are demonstrating more willingness to pay for high quality content as they increasingly appreciate the value of premium entertainment experience.
On June 22, our total subscribers surpassed 100 million, marking a historic milestone for the online industry. Also, we noted the issue of the first batch of official 5G license in China, which we believe will bring enormous new opportunities for the online entertainment industry. As of June 30, 2019, our total subscribers reached 100.5 million, an increase of 50% year-over-year and a net addition of 3.7 million from previous quarter. The growth was driven by high-quality original content, targeted marketing as well as continuous enhancement of membership experience.
To take a few examples. During the second quarter, we launched several original dramas such as The Thunder and the Bureau of Transformer. The Thunder was clearly a blockbuster title that attracted a massive and broad audience, with the Bureau of Transformer, which incorporates mild science fiction and comic elements, attracted a younger demographic of viewers. Our wide variety of content caters to increasingly diversified user tastes, especially since our subscribers have reached critical mass. In addition, we further deployed AI technologies to curate personalized content recommendation for our subscribers.
In recent months, we have observed some