IQIYI Inc (NASDAQ:IQ) Q1 2020 Earnings Conference Call - Final Transcript
May 18, 2020 • 08:00 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to the iQIYI First Quarter 2020 Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference over to your first speaker today, Dahlia Wei. Thank you, and please go ahead.
Thank you, operator. Hello, everyone, and thank you all for joining iQIYI's first quarter 2020 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; Mr. Xiaodong Wang, our CFO; and Mr. Xianghua Yang, SVP of our Membership Business. Dr. Gong will give a brief overview of the company's business operations and highlights, followed by Xiaodong, who will go through the financials and guidance. After their prepared remarks, Xianghua wil join Dr. Gong and Xiaodong in the Q&A session.
Before we proceed, please note that discussion today will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may 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 first quarter 2020 earnings call. We delivered solid results during the first quarter despite a very challenging and complicated environment amidst the coronavirus outbreak. Q1 total revenues increased 9% year-over-year to RMB7.6 billion, while total user time spend and the numbers of subscribers achieved strong growth during the quarter. I would like to thank all of our employees for their dedication and tireless work throughout the difficult times as well as our business partners and the investors for their continuous support. As a leading entertainment company, we continue to execute our strategy that focus on original content production and technology innovation and in the meantime, perform social responsibility and contribute our piece of pandemic containing efforts by introducing numerous targeted entertainment content that cater to the needs of hundreds of millions of users staying at home.
I will start my Q1 review with our Membership Business. We are pleased to see robust growth in both the number of subscribers and membership revenues during the first quarter. Total subscribers reached 118.9 million as of March 31, 2020, an increase of 23% year-over-year and a net addition of 12 million from previous quarter. Subscription revenues grew 35% year-over-year to RMB4.6 billion. This was driven by our continued efforts to introduce more premium content as well as the surge in demand for digital entertainment during the Chinese New Year holiday and the coronavirus outbreak.
During the first quarter, our premium content continued to drive subscriber growth. Top rated dramas among