China Distance Education Holdings Limited (NYSE:DL) Q2 2020 Earnings Conference Call - Final Transcript

May 22, 2020 • 08:00 am ET

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China Distance Education Holdings Limited (NYSE:DL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Zhengdong Zhu

immense popularity of our high-quality attractively priced online courses. It is important to point out that our total enrollment metric includes only paid enrollments.

[Foreign Speech]

Take our certified public accountant or CPA business as an example. More than 40% of the students who enrolled in our CPA exam preparation courses during the period when we offered free and significantly discounted courses spent over 10 hours studying on our learning platform. This level of student engagement shows that students appreciate online learning as well as our courseware. We look forward to providing these and other students with additional comprehensive high-quality courses in the future.

[Foreign Speech]

I would now like to turn to Beijing Ruida, a leading provider of exam preparation services for participants in China's legal professional qualification examination. Since our acquisition of Ruida a few years ago, we have been collaborating with Ruida in an effort to improve its online capabilities including the production, delivery and administration of online courses. These efforts have augmented Ruida's core offline courses and enabled Ruida to offer students an effective blended online-offline learning solution.

[Foreign Speech]

In response to COVID-19 however, Ruida suspended its offline classes, yet was able to successfully migrate students to its online classes. Despite posting a high single-digit decline in revenue for the second quarter compared with the year ago period, Ruida's online preparedness helped cushion the effect of the suspension of offline classes.

[Foreign Speech]

We remain committed to a multipronged student acquisition strategy and continue to collaborate with influential e-commerce and social media platforms such as Tmall, JD.com, Weibo and WeChat to promote our offerings and strengthen our brands. During the pandemic, we offered various featured courses and value-added services to provide students with highly sought after learning opportunities and quickly attracted students across China to our online learning platform.

[Foreign Speech]

We have been continuously upgrading and introducing mobile-based educational products and services such as mobile games and popularity among both working professionals and students in their pursuit of learning. As of March 31, 2020 China Distance Education offered 69 mobile apps and recorded cumulative downloads of 66 million up from 63 million as of December 31, 2019. In the second quarter, daily traffic to our mobile website continued to increase with daily active users in our accounting, healthcare, and engineering and construction verticals increasing by 44.3%, 24.9% and 127.6% year-over-year respectively.

[Foreign Speech]

With the pandemic gradually being contained in China, I would like to share some COVID-19-related updates.

[Foreign Speech]

For the sake of the ongoing health and safety of our employees, we have maintained precautionary measures across our operations such as remote work, staggered work schedules and more frequent disinfecting of our offices.

[Foreign Speech]

To support students impacted by COVID-19, CDEL offered certain free courses and courses with significant discounts toward the end of January as I previously noted. During April, as the spread of the pandemic slowed, we gradually began raising prices and ended the free and significantly discounted pricing