Qutoutiao Inc (NASDAQ:QTT) Q3 2019 Earnings Conference Call - Final Transcript
Dec 03, 2019 • 08:00 am ET
Hello, ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2019 Earnings Conference Call for Qutoutiao Inc. [Operator Instructions]
I will now turn the call over to your host Sai Chi Du [Phonetic]. Please go ahead, sir.
Sai Chi Du
Thank you very much. Welcome everyone to the third quarter of 2019 earnings conference call of Qutoutiao Inc. The company's financial and operational results will be -- were released by 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 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 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. I will start by reading out Eric's commentary on the business.
I would like to first review the business for the third quarter and then provide some outlook for the last remaining quarter of the year, and further beyond. For the review part, I will go through the key highlights in growth, content, US economics, before touching on Midu's development in a bit more detail. Despite less than hospitable operating environment, which has persisted for much of the year, we have pushed on with determination as well as agility. Our DAU has reached 42 million, which has doubled from the level a year ago, while our MAU has also shown a similar leap. Irrational competition early in the year and a weak advertising market had caused some impact on our growth trajectory, neither has dented our core capabilities, and we have taken advantage of the slower market to not only initiate organizational improvement and invest in our people and technology. We have also made meaningful progress on product suite expansion.
The most notable of which is Midu Lite, which commenced in May, and has quickly gathered more than 3 million DAU. To further strengthen our competitive advantage, we continue to build our content ecosystem both for Midu and QTT. During the third quarter, we expanded and deepened our cooperation with content producers. Most notably, iReader also known as Zhangyue, which is currently the largest single online literature platform in China. Our users will be