Qutoutiao Inc (NASDAQ:QTT) Q2 2019 Earnings Conference Call - Final Transcript

Sep 04, 2019 • 09:00 am ET


Qutoutiao Inc (NASDAQ:QTT) Q2 2019 Earnings Conference Call - Final Transcript


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Hello, ladies and gentlemen. Thank you for standing by, for the Second Quarter 2019 Earnings Conference Call for Qutoutiao Inc. [Operator Instructions]

And I will now turn the call over to your host Sai Chi Du [Phonetic]. Please go ahead, Sai Chi.

Sai Chi

Thank you very much. Welcome, everyone, to the second quarter of 2019 earnings conference call of Qutoutiao Inc. The company's financial and operational results were released via newswire services earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.qutoutiao.net.

Participants on today's call will include our Co-Founder and CEO, Mr. Eric Tan, and our Co-CFOs, Mr. Jingbo Wang and Mr. Xiaolu Zhu.

Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation and Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's prospectus and other public filings, as filed with the US Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law.

Please note that Qutoutiao's earnings press release and this conference call include discussions of unaudited GAAP financial measures, as well as unaudited non-GAAP financial measures. Qutoutiao's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures.

Now, let me start by reading out Eric's commentary on the business first.

Eric Siliang Tan

I would like to review the business and our strategy with you first and then provide some outlook for the rest of the year. In the second quarter, we have focused on three things; the first is growth. The overall business continues to enjoy strong momentum, with quarterly average combined DAU reaching 38.7 million and combined MAU reaching 119.3 million, both more than tripled from a year ago.

In addition to scaling up existing apps, we have leveraged our platform capabilities to develop new products. In May, we started Midu Light, which is a mobile application that allows users to read online literature for free while earning loyalty points. The valuation and design helps us to attract a user base that is different from that of the Midu app and is, therefore, a valuable addition to our family of apps.

The second is compliance. As we all know, compliance requirements for internet content have tightened up considerably this year. We have one of the best track records in compliance among all the sizable newsfeed players in the space, as we have put in significant efforts from the very beginning in building our content compliance teams and capabilities. Last month, we expanded our compliance personnel by adding a team based in Shen Jiang, which will strengthen our content review and monitoring.

We have recently been granted the internet news license, which is