LexinFintech Holdings Ltd. (NASDAQ:LX) Q2 2019 Earnings Conference Call - Final Transcript
Aug 30, 2019 • 08:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the LexinFintech Second Quarter 2019 Earnings Conference Call. [Operator Instructions] 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 second 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 now turn the call over to our CEO, Mr. Xiao, whom I will translate for.
Jay Wenjie Xiao
I'm pleased to announce to everyone that thanks to our strategic initiatives this year in developing a new consumption platform, increased investment in customer acquisition and customer optimization, our user growth has been very strong and has once again produced rapid growth in our results. This quarter, our registered users surpassed 50 million, an increase of 71.7% year-on-year. Our new active users also reach 1.3 million compared with 514,000 last year, an increase of 153%. Our revenues reach RMB2.5 billion, our non-GAAP EBIT reached RMB776 million and our net income was RMB628 million. On an adjusted basis, excluding the one-time tax gains last year, growth was 34%, allowing us to achieve our seventh consecutive quarter of double digit growth.
Jay Wenjie Xiao
In the year-to-date, with the consumption needs of our high growth educated young adult customers as our focus. Lexin is strategically focusing on building consumption scenarios, finance and customer benefits to establish a more comprehensive ecosystem for our customers. With the newly developed Le Card benefits platform, Lexin has connected significant number of leading vendors to provide the -- rapidly -- to better provide the rapidly growing new consumption cohort with a wide range of consumption benefits, creating in the process a super membership system.
In addition, we've also enabled our Lehei/Black Card to be able to provide installment purchase services in a wide range of offline scenarios, resulting in additional consumption scenarios as well as increasing our customer acquisition capabilities.
Jay Wenjie Xiao
The strong growth in the second quarter proves the substantial potential of our new consumption strategy.