- Live Video Broadcast Business Continued to
Generate Triple-Digit Growth
- Live Video Broadcast-associated GMV
Contribution Jumped Significantly, Accounting for 32% of Total
GMV
- Live Video Broadcast Business Expands
into Cosmetics, Jewelry, Home Goods & Lifestyle Categories
MOGU Inc. (NYSE: MOGU) (“MOGU” or the "Company"), a leading
online fashion and lifestyle destination in China, today announced
its unaudited financial results for the first quarter of fiscal
year 2020 ended June 30, 2019.
Mr. Qi Chen, Chairman and Chief Executive Officer of MOGU,
commented, “We continued to make significant and exciting progress
towards fulfilling our goal of becoming a key opinion leader
(“KOL”)-driven innovative fashion and lifestyle destination with an
upgraded fashion supply chain. This was highlighted by our
highly-engaging live video broadcast (“LVB”) business which
continued to generate triple-digit growth during the quarter. As a
pioneer in the fashion LVB sector, we are thrilled to see its
popularity continue to grow rapidly among our users and its
contribution to GMV jump to 31.5% of total GMV during the quarter,
nearly double that from a year ago. We continue to strengthen our
position and build out our competitive advantages in the fashion
LVB sector by attracting more fashion and lifestyle KOLs from
diverse backgrounds and with a wider variety of talents. We also
extended our LVB business into more categories including cosmetics,
jewelry, home goods and lifestyle products and incorporated other
creative fashion content to expand our addressable market.”
“In China, LVB is quickly becoming one of the most popular and
effective content formats to drive user engagement and sales
conversion, especially in the fashion sector. This has validated
and strengthened our commitment to rapidly expand our LVB business
and KOL-centered fashion and lifestyle platform to scale. To do so,
we are implementing three key strategies. First, we are enhancing
the infrastructure and support we offer through our LVB business,
which is already one of the most comprehensive and established in
the industry. This includes new value-added services for LVB hosts
such as supply chain and brand building support, tailored user
traffic support, host training, developing cutting-edge LVB tools,
and integrating a transaction system and CRM. Second, we will
leverage our enhanced infrastructure to significantly increase the
total number of active LVB hosts and broadcast hours per day.
Lastly, we are developing diversified and innovative monetization
tools to help attract KOLs and foster their creativity.”
“We are confident that we will capture the enormous
opportunities that this sector is continuing to generate. Executing
these strategies successfully will enable us to drive long-term
growth through our KOL-driven fashion and lifestyle destination and
help us achieve our goal of growing LVB-associated GMV to account
for a majority of total GMV within the next 12 months.”
Ms. Helen Wu, Chief Financial Officer of MOGU, commented, “Total
revenues were RMB248.9 million during the quarter, mainly driven by
commission revenues which increased 10.0% year-over-year to
RMB129.4 million and largely offset the 12.3% year-over-year
decrease in marketing revenues. The increase in commission revenues
was driven by growth in our LVB business and higher commission
rates. We expect our commission rate will continue to improve as we
increase LVB operational efficiency, continue to expand our prime
service offerings, and restructure and upgrade our marketplace
business. Going forward, we expect commission revenues to continue
driving total revenues and our LVB business grows to account for a
more significant portion of our business.”
First Quarter Fiscal Year 2020 Highlights
- Gross Merchandise Value (GMV1) for the first quarter of
fiscal year 2020 was 4,172 million, an increase of 2.6%
year-over-year. GMV for the twelve-month period ended June 30, 2019
was RMB17,514 million (US$2,551.2 million2), an increase of 12.4%
year-over-year.
- Live Video Broadcast business continued to grow strongly
with associated GMV for the first quarter of fiscal year 2020
increasing 102.7% year-over-year to RMB1,315 million, and average
mobile MAUs who clicked on a LVB in the quarter increasing 40.6%
year-over-year. LVB associated GMV contributed 31.5% of total GMV
during the quarter, nearly double from 16.0% in the same quarter
last year. Active buyers of LVB business in the twelve-month period
ended June 30, 2019 grew 90.4% year-over-year to 2.7 million.
- Total revenues for the first quarter were RMB248.9
million (US$36.3 million), a decrease of 2.8% year-over-year.
Commission revenues grew 10.0% year-over-year while marketing
revenues decreased 12.3% year-over-year.
- Active buyers3 in the twelve-month period ended June 30,
2019 reached 32.7 million, an increase of 6.3% compared to the same
period last year.
First Quarter Fiscal Year 2020 Financial Results
Total revenues decreased by 2.8% to RMB248.9 million
(US$36.3 million) from RMB255.9 million during the same quarter of
fiscal year 2019. The increase in commission revenues was offset by
the decreases in marketing services revenues and other
revenues.
- Commission revenues increased by 10.0% to RMB129.4
million (US$18.8 million) from RMB117.6million in the same period
of fiscal year 2019, primarily attributable to an increase in
LVB-associated GMV and an increase in commission rate.
- Marketing services revenues decreased by 12.3% to
RMB89.2 million (US$13.0 million) from RMB101.8 million in the same
period of fiscal year 2019. The decrease was primarily due to
growth in the LVB businesses which affected the amount of marketing
service properties available on MOGU’s platform and a decrease in
the total number of merchants as a result of the ongoing
optimization and upgrade of merchants structure on the Company’s
platform to improve overall quality.
- Other revenues decreased by 17.3% to RMB30.2 million
(US$4.4million) from RMB36.6 million in the same period of fiscal
year 2019, primarily due to a decrease in the technology supporting
services the Company provided to a newly established equity
investee during the same quarter in last fiscal year which has
since then gradually expanded its back office technology supporting
functions.
Total costs and expenses decreased by 4.9% to RMB354.2
million (US$51.6 million) from RMB372.5 million in the same period
of fiscal year 2019, primarily due to the decreases in costs of
revenues, sales and marketing expenses, research and development
expenses, and general and administrative expenses, which were
partially offset by an increase in amortization of intangible
assets.
Cost of revenues decreased by 17.3% to RMB60.6 million (US$8.8
million) from RMB73.3 million in the same period of fiscal year
2019, primarily due to a decrease in payroll costs, including a
reversal of share-based compensation expenses previously recognized
as a result of headcount optimization, which was partially offset
by an increase in IT-related expenses associated with the LVB
business.
Sales and marketing expenses decreased by 12.8% to RMB145.0
million (US$21.1 million) from RMB166.2 million in the same period
of fiscal year 2019, primarily due to lower spending on user
acquisition expenses and user incentive program.
Research and development expenses decreased by 10.9% to RMB56.2
million (US$8.2 million) from RMB63.1 million in the same period of
fiscal year 2019, primarily due to a decrease in payroll costs
which were in line with a decrease in headcounts as a result of
headcount optimization.
General and administrative expenses decreased by 6.6% to RMB34.2
million (US$5.0 million) from RMB36.6 million in the same period of
fiscal year 2019, primarily due to a decrease in payroll costs,
including share-based compensation expenses, which were in line
with a decrease in headcounts as a result of headcount
optimization.
Amortization of intangible assets increased by 130.3% to RMB64.5
million (US$9.4 million) from RMB28.0 million in the same period of
fiscal year 2019, primarily due to an increase in the amortization
of intangible assets recorded as a result of the business
cooperation agreement that MOGU entered into with Tencent in July
2018.
Loss from operations was RMB105.3 million (US$15.3
million), compared to loss from operations of RMB116.5 million in
the same period of fiscal year 2019.
Net loss attributable to MOGU Inc.’s ordinary
shareholders was RMB120.5 million (US$17.6 million), compared
to a net loss attributable to MOGU Inc’s ordinary shareholders of
RMB309.3 million in the same period of fiscal year 2019.
Adjusted EBITDA4 was negative RMB25.3 million (US$3.7
million), compared to negative RMB58.9 million in the same period
of fiscal year 2019.
Adjusted net loss5 was RMB42.3 million (US$6.2 million),
compared to adjusted net loss of RMB74.9 million in the same period
of fiscal year 2019.
Basic and diluted loss per ADS were RMB1.12 (US$0.16) and
RMB1.12 (US$0.16), respectively, compared with RMB13.49 and
RMB13.49, respectively, in the same period of fiscal year 2019. One
ADS represents 25 Class A ordinary shares.
Cash and cash equivalents, Restricted cash and Short-term
investments were RMB1,462.4 million (US$213.0 million) as of
June 30, 2019, compared with RMB1,489.7 million as of March 31,
2019.
Conference Call
MOGU's management will host an earnings conference call at 7:30
AM U.S. Eastern Time on Monday, August 26, 2019 (7:30 PM
Beijing/Hong Kong Time on the same day).
Dial-in numbers for the live conference call are as follows:
International:
+1 647 689 5649
Mainland China, North:
+86 108 007 141 191
Mainland China, South:
+86 108 001 401 195
United States:
+1 877 824 0239
Hong Kong:
+852 800 901 563
Passcode:
Mogu
A telephone replay of the call will be available after the
conclusion of the conference call until 11:59 PM ET on September 2,
2019.
Dial-in numbers for the replay are as follows:
International:
+1 416 621 4642
United States:
+1 800 585 8367
Passcode:
7378575
A live and archived webcast of the conference call will be
available on the Investor Relations section of MOGU’s website at
http://ir.mogu-inc.com.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses
non-GAAP measures, such as Adjusted EBITDA and Adjusted net
profit/(loss), as supplemental measures to review and assess
operating performance. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”). The Company defines
Adjusted EBITDA as net loss before interest income, gain on
deconsolidation of a subsidiary, income tax benefits, gain from
investment disposals, share of results of equity investee,
share-based compensation expenses, amortization of intangible
assets, and depreciation of property and equipment. The Company
defines Adjusted net profit/(loss) as net loss excluding gain of
deconsolidation of a subsidiary, gain from investment disposals,
share-based compensation expenses, amortization of intangible
assets, and adjustments for tax effects. See “Unaudited
Reconciliations of GAAP and Non-GAAP Results” at the end of this
press release. The Company presents these non-GAAP financial
measures because they are used by management to evaluate operating
performance and formulate business plans. The Company believes that
the non-GAAP financial measures help identify underlying trends in
its business by excluding certain expenses, gain/loss and other
items that are not expected to result in future cash payments or
that are nonrecurring in nature or may not be indicative of the
company’s core operating results and business outlook. The Company
also believes that the non-GAAP financial measures could provide
further information about the Company’s results of operations,
enhance the overall understanding of the Company’s past performance
and future prospects.
The non-GAAP financial measures are not defined under U.S. GAAP
and are not presented in accordance with U.S. GAAP. The non-GAAP
financial measures have limitations as analytical tools. The
Company’s non-GAAP financial measures do not reflect all items of
income and expense that affect the Company’s operations and do not
represent the residual cash flow available for discretionary
expenditures. Further, these non-GAAP measures may differ from the
non-GAAP information used by other companies, including peer
companies, and therefore their comparability may be limited. The
Company compensates for these limitations by reconciling the
non-GAAP financial measures to the nearest U.S. GAAP performance
measure, all of which should be considered when evaluating
performance. The Company encourages you to review the Company’s
financial information in its entirety and not rely on a single
financial measure.
For more information on the non-GAAP financial measures, please
see the table captioned “Unaudited Reconciliations of GAAP and
Non-GAAP Results” set forth at the end of this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “aims,” “future,” “intends,”
“plans,” “believes,” “estimates,” “confident,” “potential,”
“continue” or other similar expressions. Among other things, the
business outlook and quotations from management in this
announcement, as well as MOGU’s strategic and operational plans,
contain forward-looking statements. MOGU may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including but not limited to statements about MOGU’s beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: MOGU’s growth strategies; its future
business development, results of operations and financial
condition; its ability to understand buyer needs and provide
products and services to attract and retain buyers; its ability to
maintain and enhance the recognition and reputation of its brand;
its ability to rely on merchants and third-party logistics service
providers to provide delivery services to buyers; its ability to
maintain and improve quality control policies and measures; its
ability to establish and maintain relationships with merchants;
trends and competition in China’s ecommerce market; changes in its
revenues and certain cost or expense items; the expected growth of
China’s ecommerce market; PRC governmental policies and
regulations relating to MOGU’s industry, and general economic and
business conditions globally and in China and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in MOGU’s filings with
the SEC. All information provided in this press release and in the
attachments is as of the date of this press release, and MOGU
undertakes no obligation to update any forward-looking statement,
except as required under applicable law.
About MOGU Inc.
MOGU Inc. (NYSE: MOGU) is a leading online fashion and lifestyle
destination in China. MOGU provides young people with a more
accessible and enjoyable shopping experience for everyday fashion,
particularly as they increasingly live their lives online. Through
innovative use of content, MOGU’s platform provides a vibrant and
dynamic community for people to discover and share the latest
fashion trends with others, and offers users a truly comprehensive
shopping experience.
MOGU INC.
Unaudited Interim Condensed
Consolidated Balance Sheets
(All amounts in thousands,
except for share and per share data)
As of March 31,
As of June 30,
2019
2019
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
1,276,710
1,137,609
165,711
Restricted cash
1,006
806
117
Short-term investments
212,000
324,000
47,196
Inventories, net
5,042
5,045
735
Loan receivables, net
120,901
120,331
17,528
Prepayments and other current assets
161,249
155,639
22,671
Amounts due from related parties
1,789
542
79
Total current assets
1,778,697
1,743,972
254,037
Non-current assets:
Property, equipment and software, net
11,975
13,561
1,975
Intangible assets, net
1,001,967
967,251
140,896
Goodwill
1,568,653
1,568,653
228,500
Investments
241,721
219,203
31,931
Other non-current assets
763
763
111
Total non-current assets
2,825,079
2,769,431
403,413
Total assets
4,603,776
4,513,403
657,450
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
17,989
20,594
3,000
Salaries and welfare payable
22,112
37,695
5,491
Advances from customers
1,177
484
71
Taxes payable
5,844
6,616
964
Amounts due to related parties
9,393
7,321
1,066
Accruals and other current liabilities
492,385
438,713
63,905
Total current liabilities
548,900
511,423
74,497
Non-current liabilities:
Deferred tax liabilities
2,485
2,485
362
Other non-current liabilities
4,722
4,500
655
Total non-current liabilities
7,207
6,985
1,017
Total liabilities
556,107
518,408
75,514
Shareholders’ equity
Ordinary shares
177
179
25
Treasury stock
-
(3,483)
(507)
Statutory reserves
2,475
2,475
361
Additional paid-in capital
9,392,737
9,411,067
1,370,876
Accumulated other comprehensive income
77,795
130,798
19,053
Accumulated deficit
(5,425,515)
(5,546,041)
(807,872)
Total MOGU Inc. shareholders’ equity
4,047,669
3,994,995
581,936
Total shareholders’ equity
4,047,669
3,994,995
581,936
Total liabilities and
shareholders’equity
4,603,776
4,513,403
657,450
MOGU INC.
Unaudited Interim Condensed
Consolidated Statements of Operations and Comprehensive
Loss
(All amounts in thousands,
except for share and per share data)
For the three months
ended
June 30,
2018
2019
RMB
RMB
US$
Net revenues
Commission revenues
117,579
129,382
18,847
Marketing services revenues
101,789
89,244
13,000
Other revenues
36,559
30,236
4,404
Total revenues
255,927
248,862
36,251
Cost of revenues (exclusive of
amortization of intangible assets shown separately below)
(73,312)
(60,604)
(8,828)
Sales and marketing expenses
(166,154)
(144,961)
(21,116)
Research and development expenses
(63,069)
(56,182)
(8,184)
General and administrative expenses
(36,616)
(34,216)
(4,984)
Amortization of intangible assets
(27,994)
(64,469)
(9,391)
Other (expenses)/income, net
(5,313)
6,257
911
Loss from operations
(116,531)
(105,313)
(15,341)
Interest income
7,897
8,383
1,221
Loss before income tax and share of
results of equity investees
(108,634)
(96,930)
(14,120)
Income tax benefits/(expenses)
4,978
(337)
(49)
Share of results of equity investee
(18,995)
(23,259)
(3,388)
Net loss
(122,651)
(120,526)
(17,557)
Net loss attributable to MOGU
Inc.
(122,651)
(120,526)
(17,557)
Accretion on convertible redeemable
preferred shares to redemption value
(186,656)
-
-
Net loss attributable to MOGU Inc's
ordinary shareholders
(309,307)
(120,526)
(17,557)
Net loss
(122,651)
(120,526)
(17,557)
Other comprehensive
income/(loss):
Foreign currency translation adjustments,
net of nil tax
46,016
53,381
7,776
Share of other comprehensive income/(loss)
of equity method investee
881
(378)
(55)
Unrealized securities holding gains, net
of tax
3,416
-
-
Total comprehensive loss
(72,338)
(67,523)
(9,836)
Total comprehensive loss attributable
to MOGU Inc.
(72,338)
(67,523)
(9,836)
Net loss attributable to MOGU Inc's
ordinary shareholders
(309,307)
(120,526)
(17,557)
Net loss per share attributable to
ordinary shareholders
Basic
(0.54)
(0.04)
(0.01)
Diluted
(0.54)
(0.04)
(0.01)
Net loss per ADS
Basic
(13.49)
(1.12)
(0.16)
Diluted
(13.49)
(1.12)
(0.16)
Weighted average number of shares used
in computing net loss per share
Basic
573,149,236
2,684,416,390
2,684,416,390
Diluted
573,149,236
2,684,416,390
2,684,416,390
Share-based compensation expenses
included in:
Cost of revenues
3,718
(2,959)
(431)
General and administrative expenses
14,782
9,314
1,357
Sales and marketing expenses
2,431
2,773
404
Research and development expenses
4,607
4,608
671
25,538
13,736
2,001
MOGU INC.
Unaudited Interim Condensed
Consolidated Statements of Cash Flows
(All amounts in thousands,
except for share and per share data)
For the three months
ended
June 30,
2018
2019
RMB
RMB
US$
Net cash used in operating activities
(17,573)
(29,879)
(4,352)
Net cash used in investing activities
(56,623)
(119,149)
(17,356)
Net cash provided by/(used in) financing
activities
992
(6,807)
(992)
Effect of foreign exchange rate changes on
cash and cash equivalents and restricted cash
37,412
16,534
2,408
Net decrease in cash and cash equivalents
and restricted cash
(35,792)
(139,301)
(20,292)
Cash and cash equivalents and restricted
cash at beginning of period
1,225,397
1,277,716
186,120
Cash and cash equivalents and restricted
cash at end of period
1,189,605
1,138,415
165,828
MOGU INC.
Reconciliations of GAAP and
Non-GAAP Results
(All amounts in thousands,
except for share and per share data)
For the three months
ended
June 30,
2018
2019
RMB
RMB
US$
Net loss
(122,651)
(120,526)
(17,557)
Add:
Share of result of equity investees
18,995
23,259
3,388
Less:
Income tax (benefits)/expenses
(4,978)
337
49
Less:
Interest income
(7,897)
(8,383)
(1,221)
Loss from operations
(116,531)
(105,313)
(15,341)
Add:
Share-based compensation expenses
25,538
13,736
2,001
Add:
Amortization of intangible assets
27,994
64,469
9,391
Add:
Depreciation of property and equipment
4,110
1,839
268
Adjusted EBITDA
(58,889)
(25,269)
(3,681)
Net loss
(122,651)
(120,526)
(17,557)
Add:
Share based compensation
25,538
13,736
2,001
Add:
Amortization of intangible assets
27,994
64,469
9,391
Less:
Adjusted for tax effects
(5,817)
-
-
Adjusted net loss
(74,936)
(42,321)
(6,165)
1 GMV refers to the total value of orders placed on the MOGU
platform regardless of whether the products are sold, delivered or
returned, calculated based on the listed prices of the ordered
products without taking into consideration any discounts on the
listed prices. Buyers on the MOGU platform are not charged for
separate shipping fees over the listed price of a product. If
merchants include certain shipping fees in the listed price of a
product, such shipping fees will be included in GMV. As a prudent
matter aiming at eliminating any influence on MOGU’s GMV of
irregular transactions, the Company excludes from its calculation
of GMV transactions over a certain amount (RMB100,000) and
transactions by users over a certain amount (RMB1,000,000) per
day.
2 The U.S. dollar (US$) amounts disclosed in this press release,
except for those transaction amounts that were actually settled in
U.S. dollars, are presented solely for the convenience of the
readers. The conversion of Renminbi (RMB) into US$ in this press
release is based on the exchange rate set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System as of June 28, 2019, which was RMB6.8650 to US$1.00.
The percentages stated in this press release are calculated based
on the RMB amounts.
3 “Active buyers” refers to registered user accounts that placed
one or more orders on MOGU’s platform in a given period, regardless
of whether the products are sold, delivered or returned. If a buyer
registered two or more user accounts on MOGU’s platform and placed
orders on its platform through each of those registered user
accounts, the number of active buyers would, under this
methodology, be counted as the number of registered user accounts
that such buyer used to place the orders.
4 Adjusted EBITDA represents net loss before (i) interest
income, gain on deconsolidation of a subsidiary, income tax
benefits, gain from investment disposals and share of results of
equity investee, and (ii) certain non-cash expenses, consisting of
share-based compensation expenses, amortization of intangible
assets and depreciation of property and equipment. See “Unaudited
Reconciliations of GAAP and Non-GAAP Results” at the end of this
press release.
5 Adjusted net loss represents net loss excluding (i) gain of
deconsolidation of a subsidiary, (ii) gain from investment
disposals, (iii) share-based compensation expenses, (iv)
amortization of intangible assets, (v) adjustments for tax effects.
See “Unaudited Reconciliations of GAAP and Non-GAAP Results” at the
end of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190826005216/en/
For investor and media inquiries, please contact:
MOGU Inc.
Sean Zhang Phone: +86-571-8530-8201 E-mail: ir@mogu.com
Christensen
In China Mr. Christian Arnell Phone: +86-10-5900-1548 E-mail:
carnell@christensenir.com
In the United States Ms. Linda Bergkamp Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
MOGU (NYSE:MOGU)
Historical Stock Chart
From Mar 2024 to Apr 2024
MOGU (NYSE:MOGU)
Historical Stock Chart
From Apr 2023 to Apr 2024