Bitauto Holdings Limited (NYSE:BITA) Q4 2019 Earnings Conference Call - Final Transcript

Mar 26, 2020 • 08:15 am ET

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Bitauto Holdings Limited (NYSE:BITA) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello and thank you for standing by for Bitauto's Fourth Quarter and Fiscal Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time.

I would now like to turn the meeting over to your host for today's conference.

Executive
Unidentified Speaker

Thank you. Welcome to Bitauto's fourth quarter and fiscal year 2019 earnings conference call. Speakers from the Company today are Mr. Andy Zhang, CEO; Mr. Xiaoke Liu, President; Mr. Ming Xu, CFO. After management's prepared remarks, Andy, Xiaoke and Ming will be available to answer your questions. In addition, Nick Hu [Phonetic] Financial Controller of Yixin will be available to answer your questions related to Yixin.

Before we proceed, please note that discussions today will contain forward-looking statements made under the Safe Harbor provisions of U.S. Private Securities and Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC, including registration statement on Form F-1. Bitauto does not undertake any obligations to update any forward-looking statement except as required under applicable law.

This call will include discussions of certain unaudited non-GAAP financial measures. Please refer to our earnings release, which was issued earlier today, for reconciliations of these unaudited non-GAAP measures to the most directly comparable unaudited GAAP measures.

As a reminder, this conference is being recorded. In addition, a live and archived webcast of the conference will be available on our website.

I will now turn the call over to Andy Zhang, CEO of Bitauto.

Executive
Andy Xuan Zhang

Hello, everyone, and thank you for joining us for our fourth quarter and fiscal year 2019 earnings conference call. China's auto industry remains challenging in the fourth quarter of 2019 as new passenger vehicle sales continue to decline year-over-year. Despite the substantial industry headwinds, Bitauto total revenue reached RMB2.69 billion in the fourth quarter of 2019, exceeding the higher end of our guidance of RMB2.55 billion.

In our advertising and the subscription business, we were pleased to make further progress in increasing our mobile traffic as we improved the quality and the quantity of our sales leads. In terms of traffic according to QuestMobile, in January 2020, DAU or daily active users of the Bitauto media app increased by 256% compared to October 2018, when we rolled out the upgraded version. Moreover, the combined DAU of both Bitauto media app and our Auto Pricing app increased by approximately 40% year-over-year in January 2020.

Amid declining new passenger vehicle sales, we grew our number of sales leads by 8.8% year-over-year in the fourth quarter of 2019, with the proportion of organic sales leads rising to nearly 70% of that. We have also seen improved quality of sales leads in terms of higher conversion rates, as measured by the stores visits and