Sunlands Online Education Group (NYSE:STG) Q2 2019 Earnings Conference Call Transcript
Aug 23, 2019 • 07:30 am ET
Ladies and gentlemen, thank you for standing by, and welcome to Sunlands' Second Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to turn the call over to your host today, Yingying Liu, Sunlands' IR Director. Please go ahead.
Hello, everyone, and thank you for joining Sunland's second quarter 2019 earnings conference call. On the call our CEO, Tongbo Liu, will provide an update on our operational performance as well as our strategic initiatives. Our CFO, Steven Yipeng Li, will give you an overview of our financial performance and also provide our guidance for the third quarter of 2019. Following the prepared remarks, we will move into the Q&A session.
Before I hand it over to the management. I'd like to remind you of Sunlands' Safe Harbor statement in relation to today's call. Except for the historical information contained herein, certain of the matters discussed in this conference call are forward-looking statements. These statements are based on current trends, estimates and projections, and therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. For more information about the potential risks and uncertainties, please refer to the Company's filings with the Securities and Exchange Commission.
With that, I will now turn the call over to our CEO, Tongbo Liu.
Thank you, Yingying. Hello, everyone. Welcome to Sunlands' second quarter 2019 conference call. As we have outlined in previous quarters, Sunlands' keenly focused on developing and strengthening our brand through several key initiatives. I am pleased to report that this initiatives drove second quarter top-line revenue of RMB552.7 million, which was in line with our guidance and those represented a 14.7% increase year-over-year. We are also significantly narrowed our net loss margin to 2.3% in the second quarter versus 56.4% in the same period last year, as a way to confirm disciplined approach to managing costs and expenses.
During the second quarter, we continued to advance our strategic initiatives in our effort to innovate our program offerings and strengthening our brand awareness. Through these unique initiatives we are building a solid and multi-faceted foundation to reach a high-quality customer base and attract more students to our online platform.
With increased platform accessibility and a diverse approach to student acquisition, we strive to attract new students to our platform. For example, creative marketing techniques such as expansion of our free trial classes enable prospective students to experience our advanced online and mobile learning platform first hand.
In addition, diversifying our product offerings to include more professional certificates and a master's-oriented products, launching and upgrading of our mobile app and building a unique learning community where students, teachers and mentors freely interact with one another, all contributed to the rise in utility and the value of our programs and solutions offer.
Our strategic initiatives also entail a commitment to using technology to further upgrade and distinguish our platform.