51job, Inc. (NASDAQ:JOBS) Q3 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 08:00 pm ET
Good day and welcome to the 51job Incorporated Third Quarter 2019 Conference Call and Webcast. [Operator Instructions]
I would now like to turn the conference over to Ms. Linda Chien. Please go ahead.
Thank you, operator and thank you all for attending this teleconference to discuss unaudited financial results for the third quarter ended September 30th, 2019. With me for today's call are Rick Yan, President and Chief Executive Officer and Kathleen Chien, Chief Operating Officer and Acting Chief Financial Officer.
A press release containing third quarter results was issued earlier today and a copy may be obtained through our website at ir.51job.com. Before we begin, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. All forward-looking statements are based upon management's expectations at the time of the statements and involve inherent risks and uncertainties that may cause actual results to differ materially.
Potential risks and uncertainties include but are not limited to those outlined in our public filings with the US Securities and Exchange Commission, including our Annual Report on Form 20-F. Any forward-looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements except as required under applicable law.
Also, I would like to remind you that during the course of this call, we will discuss non-GAAP measures. Please refer to the press release for a description of these non-GAAP measures and their significance to management in evaluating the company's financial performance. Reconciliations to the most directly comparable GAAP financial measures are provided where available in the tables appended to the press release. This conference call is being recorded and broadcasted on the Internet and a replay will be available through our website at ir.51job.com.
Now I'll turn the call over to Rick.
Thank you, Linda and welcome to today's call. I will begin with an overview of the third quarter and an assessment of current market conditions. Then Kathleen will follow with a detail discussion of our financial results, as well as provide our guidance for the fourth quarter of 2019.
Market conditions have been very challenging this year, as ongoing economic concerns in US-China trade tensions have significantly influenced the spending and recruitment plans of employers. However, through diligent sales execution and top quality customer service, we did maintain overall positive momentum with net revenues growing 4% to RMB989 million in the third quarter. Profitability also remained solid with non-GAAP income of RMB4.49 or USD0.63 for the quarter.
Our online recruitment segment continues to feel the brunt of this current macro slowdown. Employers are still very cautious about headcount decisions and some companies have chosen to conserve their financial resources and stand on the side lines if they await guarantee on economic direction. As expected, this market tone has negatively impacted the hiring demand in 2019 and all our revenues decreased 2% on a year-over-year basis in the