Sunlands Online Education Group (NYSE:STG) Q4 2019 Earnings Conference Call - Final Transcript
Mar 27, 2020 • 07:30 am ET
Ladies and gentlemen, thank you for standing by and welcome to Sunlands' Fourth Quarter and Full Year 2019 Earnings Conference Call. [Operator Instructions]
I would now like to turn the call over to your host today, Yingying Liu, Sunlands' IR Director. Please go ahead.
Hello everyone, and thank you for joining Sunlands' fourth quarter and full year 2019 earnings conference call. On the call, our CEO Tongbo Liu will provide an update on our operational performance, as well as our strategic initiatives. Our CFO, Steven Yipeng Li will give you overview of our financial performance and also provide our guidance for the first quarter of 2020. Following their prepared remarks, we will move into the Q&A session.
Before I hand it over to the management, I'd like to remind you of Sunlands' Safe Harbor statement. In relation to today's call, except for the historical information contained herein, certain of the matters discussed in this conference call are forward-looking statements. These statements are based on current trends, estimates and projections, and therefore you should not place undue reliance on them.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. For more information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.
With that, I will now turn the call over to our CEO, Tongbo Liu.
Thank you, Yingying. Hello, everyone. Welcome to Sunlands' fourth quarter and full year 2019 conference call. Against the backdrop of macroeconomic challenges during the fourth quarter, we remain focused on attracting students to our online platform and improving engagement through a variety of strategic methods. Our fourth quarter net revenues were RMB549.7 million, in line with our guidance. We narrowed our net loss margin to new 5.4% in the fourth quarter versus 32.3% in the same period last year as we continue to prudently manage costs and expenses.
In the fourth quarter of 2019, we continue to focus on our multi-pronged strategy for students acquisition and retention. Our efforts centered about -- around the further development and the depreciation of our products and the services through the application of big data and analytics and AI technology. This has allowed us to produce significant operational benefits to both our employees and the students, facilitate our digital transformation and further strengthen our data security and the risk control capability.
Next, let me provide some key specifics on the drivers of our fourth quarter performance. First, we continue developing our non-STE programs, especially the master's-oriented products to build a more will [Phonetic] around the course portfolio and meet the diverse needs of our students. In 2019, the number of people entering the entrance examination for master's program reached to 2.9 million in China, growing 21.8% year-over-year and representing the farthest growth rate in the past 10 years. Equipped with the deep understanding of the online learning process, as well as solid operational track record,