IQIYI Inc (NASDAQ:IQ) Q4 2019 Earnings Conference Call - Final Transcript
Feb 27, 2020 • 07:00 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to the iQIYI Fourth Quarter and Fiscal Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I must advise you that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Investor Relations Director of iQIYI, Dahlia Wei. Thank you. Please go ahead.
Thank you, operator. Hello, everyone, and thank you all for joining iQIYI's fourth quarter and full-year 2019 earnings conference call. The company's results were released earlier today and are available on the company's Investor Relations website at ir.iqiyi.com.
On the call today are Dr. Yu Gong, our Founder, Director and CEO; and Mr. Xiaodong Wang, our CFO. Dr. Gong will give a brief overview of company's business operations and highlights, followed by Xiaodong who will go through the financials and guidance. After their prepared remarks, we will hold a Q&A session.
Before we proceed, please note that discussion today will contain forward-looking statements made under the safe harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. iQIYI does not undertake any obligation to update any forward-looking statements except as required under applicable law.
With that, I will now turn the call over to Dr. Gong. Please go ahead.
Hello everyone and thank you for joining us for our fourth quarter and the full-year 2019 earnings call. We concluded the year 2019 with a solid ending. Q4 and the full-year net revenue reached RMB7.5 billion and RMB29 billion, respectively, backed just by the optimized structure of our content costs, which only grew moderately at single-digit percentage on a full year basis. We further solidified our industry leading position in terms of our user scale, user stickiness [Phonetic], and a number of subscribers. We are pleased with a set of significant progress we made in 2019, including being the first among industry peers to build 100 million subscriber milestone, consistently developing innovative original content, pioneering new advertising solutions, and making new breakthroughs in technology development.
I'll start my review with our membership business. As of December 31, 2019, our total subscribers reached 107 million, a net addition of 19.5 million compared to year end 2018. Subscription revenues grew 36% year-over-year to RMB14.4 billion and contributed half of our full-year 2019 total revenues. This reflects our dedication in delivering best quality content to our subscribers and our various operating initiatives to expand our subscriber base. In the fourth quarter, the release of a number of high popular drama serial drove subscriber growth, namely [Indecipherable] Sword Dynasty and Spirit Sword Mountain among others. Typically, dramas serials have been the main driver of the subscriber