GSX Techedu Inc (NYSE:GSX) Q1 2020 Earnings Conference Call - Final Transcript

May 06, 2020 • 08:00 am ET

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GSX Techedu Inc (NYSE:GSX) Q1 2020 Earnings Conference Call - Final Transcript

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Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the GSX Techedu Inc. First Quarter 2020 Earnings Conference Call.

[Operator Instructions]

Please note, this event is being recorded on Wednesday, May 6, 2020.

I would now like to hand the conference over to your first speaker today, Ms. Sandy Qin, IR Senior Manager of GSX. Thank you. Please go ahead.

Executive
Sandy Qin

Thank you, operator.

Hello, everyone, and thank you for joining us today. GSX earnings release was distributed earlier today and is available on the company's IR website. On the call with me today are Mr. Larry Chen, GSX Founder, Chairman and Chief Executive Officer, and Ms. Shannon Shen, Chief Financial Officer. Larry will give a general overview and then Shannon will discuss the financials. Following the prepared remarks, Larry and Shannon will be available to answer your questions during the Q&A session that follows.

Before we begin, I would like to remind you that this conference call contains forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control and may cause the company's actual results, performance or achievements to differ materially. Further information regarding these and other risks, uncertainties or factors is included in the company's filings with the SEC.

The company does not undertake any obligation to update any forward-looking statements, except as required in the applicable law.

It is now my pleasure to introduce Larry. Larry, please go ahead.

Executive
Larry Xiangdong Chen

Thank you, Sandy. Good evening, and good morning to you all. Thank you all for joining us for our first quarter 2020 earnings call.

First and foremost, on behalf of GSX Techedu, I would like to extend our sincere condolences to the students, parents and the families affected by the COVID-19 outbreak. I would like to send our utmost gratitude and respect to the medical staff, teachers, public officials and people from all industries who have united in the fight against the epidemic and kept our society running during the global health crisis.

For the first quarter of 2020, we have achieved another period of solid and rapid growth, including the seventh consecutive quarter of GAAP profitability and the eighth consecutive quarter of non-GAAP profitability. During the pandemic, I'm proud to say that we have shouldered our social responsibility and tried our best to contribute within the scope of our capabilities as a young company.

Firstly, during the COVID-19 period, we have donated RMB20 million worth of courses to students in Wuhan. Those courses didn't contribute any revenues, but they share the same instructors, tutors, technologies, operations across courses and learning experiences with our regular winter semester courses. Secondly, we took 49 of our best teachers and launched free courses covering all subjects and all grades. We invested in