GMV from Live Video Broadcast (“LVB”) for the
Third Quarter Accounted for 80.3% of total GMV
MOGU Inc. (NYSE: MOGU) (“MOGU” or the "Company"), a leading
KOL-driven online fashion and lifestyle destination in China, today
announced its unaudited financial results for the third quarter of
fiscal year 2021 ended December 31, 2020.
“Our KOLs on MOGU Live are increasingly important as they
continuously provide differentiated shopping experience,” said Chen
Qi, Chairman and Chief Executive Officer of MOGU. “Looking forward,
we aim to further amplify our KOLs' fashion influence. We are
confident that we can leverage their supply chain and fashion
curation capabilities to serve wider audience from offline and
overseas."
"MOGU Live is our key growth driver and it has delivered 20.9%
growth year over year. MOGU live is now accounted for 80.3% of our
total GMV." added Mr. Raymond Huang, Chief Strategy Officer. “Our
Net loss has been narrowed to RMB 36.7 million, and on non-GAAP
basis, we have achieved positive Adjusted EBITDA to RMB 1.2 million
this quarter, reflecting strong operating efficiency and
disciplined approach in our capital allocation.".
Third Quarter Fiscal Year 2021 Highlights
■ Live Video Broadcast business continued to grow
stronger with associated GMV for the third quarter of fiscal year
2021 increasing by 20.9% year-over-year to RMB4,051 million
(US$620.8 million). LVB associated GMV for the third quarter of
fiscal year 2021 accounted for 80.3% of total GMV. Active buyers of
the LVB1 in the twelve-month period ended December 31, 2020 grew by
9.4% year-over-year to 3.5 million.
■ Gross Merchandise Value (GMV2) for the third quarter of
fiscal year 2021 was RMB5,046 million (US$773.3 million3), a
decrease of 19.9% year-over-year. GMV for the twelve-month period
ended December 31, 2020 was RMB13,698 million (US$2,099.3 million),
a decrease of 25.1% year-over-year.
Third quarter Fiscal Year 2021 Financial Results
Total revenues decreased by 45.6% to RMB146.5 million
(US$22.5 million) from RMB269.5 million during the same quarter of
fiscal year 2020.
- Commission revenues decreased by 29.8% to RMB99.2
million (US$15.2million) from RMB141.2million in the same period of
fiscal year 2020, primarily due to the restructuring of the
Company’s business towards a LVB-focused model.
- Marketing services revenues decreased by 75.9% to
RMB17.4 million (US$2.7million) from RMB72.5 million in the same
period of fiscal year 2020. The decrease was primarily due to the
restructuring of the Company’s business towards a LVB-focused
model.
- Other revenues decreased by 46.4% to RMB29.9 million
(US$4.6million) from RMB55.9 million in the same period of fiscal
year 2020, primarily due to a decrease in online direct sales.
Cost of revenues decreased by 48.3% to RMB51.0 million (US$7.8
million) from RMB98.6 million in the same period of fiscal year
2020, which was primarily due to a decrease in the costs associated
with decreased online direct sales and IT related expenses.
Sales and marketing expenses decreased by 63.4% to RMB76.5
million (US$11.7million) from RMB209.3 million in the same period
of fiscal year 2020, primarily due to optimized spending on
branding and user acquisition activities.
Research and development expenses decreased by 14.5% to RMB27.2
million (US$4.2 million) from RMB31.9 million in the same period of
fiscal year 2020, primarily due to a decrease of share-based
compensation expenses.
General and administrative expenses decreased by 32.4% to
RMB29.1 million (US$4.5 million) from RMB43.0 million in the same
period of fiscal year 2020, primarily due to a decrease of
share-based compensation expenses.
Amortization of intangible assets increased by 10.3% to RMB113.5
million (US$17.4 million) from RMB102.9 million in the same period
of fiscal year 2020.
Loss from operations was RMB123.2 million (US$18.9
million), compared to loss from operations of RMB1,594.9 million in
the same period of fiscal year 2020, primarily attributable to a
goodwill impairment incurred in the third quarter of fiscal year
2020.
Net gain from investments was RMB 91.2 million (US$ 14.0
million), compared to loss from investment of RMB33.9 million in
the same period of fiscal year 2020, primarily due to one of the
Company’s investee repurchased a majority portion of the Company’s
investment in it in October 2020.
Net loss attributable to MOGU Inc.’s ordinary
shareholders was RMB36.7 million (US$5.6 million), compared to
a net loss attributable to MOGU Inc’s ordinary shareholders of
RMB1,634.6 million in the same period of fiscal year 2020.
Adjusted EBITDA4 was RMB1.2 million (US$0.2 million),
compared to negative RMB86.7 million in the same period of fiscal
year 2020.
Adjusted net loss5 was RMB8.9 million (US$1.4 million),
compared to adjusted net loss of RMB95.6 million in the same period
of fiscal year 2020.
Basic and diluted loss per ADS were RMB 0.36 (US$ 0.05)
and RMB 0.36 (US$ 0.05), respectively, compared with RMB14.97 and
RMB14.97, respectively, in the same period of fiscal year 2020. One
ADS represents 25 Class A ordinary shares.
Cash and cash equivalents, Restricted cash and Short-term
investments were RMB820.1 million (US$125.7 million) as of
December 31, 2020, compared with RMB1,095.4 million as of March 31,
2020.
Conference Call
MOGU's management will host an earnings conference call at 6:30
AM U.S. Eastern Time on Thursday, February 25, 2021 (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 March 4,
2021.
Dial-in numbers for the replay are as
follows:
International:
+1 416 621 4642
United States:
+1 800 585 8367
Passcode:
1353957
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
nonGAAP measures, such as Adjusted EBITDA and Adjusted net
profit/(loss) as supplemental measures to review and assess
operating performance. The presentation of these nonGAAP 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, loss/(gain)
from investments, net, income tax expenses, share of results of
equity investee, goodwill impairment, 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 loss/(gain) from investments,
net, goodwill impairment, share-based compensation expenses,
amortization of intangible assets, and adjustments for tax effects.
Beginning from the second quarter of fiscal year 2020, we combined
each of (i) investment gain/(loss), (ii) gain on deconsolidation of
a subsidiary and (iii) gain from investment disposals, into loss
from investments. The related financial statements prior to July 1,
2019 have been recast to reflect this change. See “Unaudited
Reconciliations of GAAP and NonGAAP Results” at the end of this
press release.
The Company presents these nonGAAP financial measures because
they are used by management to evaluate operating performance and
formulate business plans. The Company believes that the nonGAAP
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 nonGAAP 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 nonGAAP financial measures are not defined under U.S. GAAP
and are not presented in accordance with U.S. GAAP. The nonGAAP
financial measures have limitations as analytical tools. The
Company’s nonGAAP 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 nonGAAP measures may differ from the
nonGAAP information used by other companies, including peer
companies, and therefore their comparability may be limited. The
Company compensates for these limitations by reconciling the
nonGAAP 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 nonGAAP financial measures, please
see the table captioned “Unaudited Reconciliations of GAAP and
NonGAAP 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; the risk that
COVID-19 or other health risks in China or globally could adversely
affect its operations or financial results; 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 KOL-driven online fashion
and lifestyle destination in China. MOGU provides people with a
more accessible and enjoyable shopping experience for everyday
fashion, particularly as they increasingly live their lives online.
By connecting merchants, KOLs and users together, MOGU’s platform
serves as a valuable marketing channel for merchants, a powerful
incubator for KOLs, and a vibrant and dynamic community for people
to discover and share the latest fashion trends with others, where
users can enjoy a truly comprehensive online 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 December 31,
2020
2020
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
856,567
659,326
101,046
Restricted cash
807
807
124
Short-term investments
238,000
160,000
24,521
Inventories, net
2,926
1,068
164
Loan receivables, net
113,111
140,262
21,496
Prepayments and other current assets
99,108
98,821
15,145
Amounts due from related parties
57
157
24
Total current assets
1,310,576
1,060,441
162,520
Non-current assets:
Property, equipment and software, net
14,109
10,781
1,652
Intangible assets, net
813,011
506,050
77,556
Goodwill
186,504
186,504
28,583
Investments
102,373
62,211
9,534
Other non-current assets
14,183
163,111
24,998
Total non-current assets
1,130,180
928,657
142,323
Total assets
2,440,756
1,989,098
304,843
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
17,080
32,703
5,012
Salaries and welfare payable
6,032
22,736
3,484
Advances from customers
103
62
10
Taxes payable
6,342
14,430
2,211
Amounts due to related parties
12,018
6,714
1,029
Accruals and other current liabilities
393,536
336,684
51,599
Total current liabilities
435,111
413,329
63,345
Non-current liabilities:
Deferred tax liabilities
21,529
18,026
2,763
Other non-current liabilities
3,644
2,441
374
Total non-current liabilities
25,173
20,467
3,137
Total liabilities
460,284
433,796
66,482
Shareholders’ equity
Ordinary shares
180
181
27
Treasury stock
(6,566)
(117,296)
(17,976)
Statutory reserves
2,630
2,630
403
Additional paid-in capital
9,431,740
9,452,008
1,448,584
Accumulated other comprehensive income
201,796
86,429
13,246
Accumulated deficit
(7,649,308)
(7,868,650)
(1,205,923)
Total MOGU Inc. shareholders’
equity
1,980,472
1,555,302
238,361
Total shareholders’ equity
1,980,472
1,555,302
238,361
Total liabilities and shareholders’
equity
2,440,756
1,989,098
304,843
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
For the nine months
ended
December 31,
December 31,
2019
2020
2019
2020
RMB
RMB
US$
RMB
RMB
US$
Net revenues
Commission revenues
141,231
99,179
15,200
371,928
253,389
38,834
Marketing services revenues
72,459
17,431
2,671
224,833
59,400
9,103
Other revenues
55,850
29,935
4,588
119,564
78,739
12,067
Total revenues
269,540
146,545
22,459
716,325
391,528
60,004
Cost of revenues (exclusive of
amortization of intangible assets shown separately below)
(98,591)
(50,959)
(7,810)
(235,167)
(145,244)
(22,260)
Sales and marketing expenses
(209,274)
(76,543)
(11,731)
(534,993)
(186,385)
(28,565)
Research and development expenses
(31,884)
(27,245)
(4,175)
(138,324)
(83,897)
(12,858)
General and administrative expenses
(43,000)
(29,089)
(4,458)
(116,698)
(77,337)
(11,852)
Amortization of intangible assets
(102,898)
(113,469)
(17,390)
(244,182)
(259,697)
(39,800)
Goodwill impairment
(1,382,149)
-
-
(1,382,149)
-
-
Other income, net
3,372
27,530
4,219
11,404
42,380
6,495
Loss from operations
(1,594,884)
(123,230)
(18,886)
(1,923,784)
(318,652)
(48,836)
Interest income
7,430
4,789
734
23,218
15,213
2,331
(Loss)/Gain from investments, net
(33,918)
91,184
13,975
(66,550)
91,184
13,975
Loss before income tax and share of
results of equity investees
(1,621,372)
(27,257)
(4,177)
(1,967,116)
(212,255)
(32,530)
Income tax expenses
(769)
(9,437)
(1,446)
(528)
(7,087)
(1,086)
Share of results of equity investee
(12,497)
-
-
(114,104)
-
-
Net loss
(1,634,638)
(36,694)
(5,623)
(2,081,748)
(219,342)
(33,616)
Net loss attributable to MOGU
Inc.
(1,634,638)
(36,694)
(5,623)
(2,081,748)
(219,342)
(33,616)
Net loss attributable to MOGU Inc's
ordinary shareholders
(1,634,638)
(36,694)
(5,623)
(2,081,748)
(219,342)
(33,616)
Net loss
(1,634,638)
(36,694)
(5,623)
(2,081,748)
(219,342)
(33,616)
Other comprehensive
income/(loss):
Foreign currency translation adjustments,
net of nil tax
(16,326)
(38,914)
(5,964)
86,811
(78,073)
(11,965)
Share of other comprehensive income
/(loss) of equity method investee
123
-
-
(145)
-
-
Unrealized securities holding losses, net
of tax
-
(34,603)
(5,303)
(6,759)
(37,294)
(5,716)
Total comprehensive loss
(1,650,841)
(110,211)
(16,890)
(2,001,841)
(334,709)
(51,297)
Total comprehensive loss attributable
to MOGU Inc.
(1,650,841)
(110,211)
(16,890)
(2,001,841)
(334,709)
(51,297)
Net loss attributable to MOGU Inc's
ordinary shareholders
(1,634,638)
(36,694)
(5,623)
(2,081,748)
(219,342)
(33,616)
Net loss per share attributable to
ordinary shareholders
Basic
(0.60)
(0.01)
(0.00)
(0.77)
(0.08)
(0.01)
Diluted
(0.60)
(0.01)
(0.00)
(0.77)
(0.08)
(0.01)
Net loss per ADS
Basic
(14.97)
(0.36)
(0.05)
(19.18)
(2.06)
(0.32)
Diluted
(14.97)
(0.36)
(0.05)
(19.18)
(2.06)
(0.32)
Weighted average number of shares used
in computing net loss per share
Basic
2,729,385,471
2,557,169,038
2,557,169,038
2,713,973,736
2,659,049,836
2,659,049,836
Diluted
2,729,385,471
2,557,169,038
2,557,169,038
2,713,973,736
2,659,049,836
2,659,049,836
Share-based compensation expenses
included in:
Cost of revenues
1,983
659
101
458
1,908
292
General and administrative expenses
12,360
3,290
504
33,811
10,828
1,659
Sales and marketing expenses
3,287
1,420
218
8,558
4,041
619
Research and development expenses
3,634
1,296
199
12,756
2,916
447
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
For the nine months
ended
December 31,
December 31,
2019
2020
2019
2020
RMB
RMB
US$
RMB
RMB
US$
Net cash (used in)/provided by
operating activities
(37,692)
12,052
1,847
(156,962)
(27,929)
(4,280)
Net cash provided by/(used in )
investing activities
12,937
94,252
14,445
(255,010)
(36,584)
(5,607)
Net cash used in financing
activities
(2,049)
(7,523)
(1,153)
(27,822)
(110,154)
(16,882)
Effect of foreign exchange rate changes on
cash and cash equivalents and restricted cash
(5,934)
(11,150)
(1,709)
28,414
(22,574)
(3,460)
Net (decrease)/increase in cash and cash
equivalents and restricted cash
(32,738)
87,631
13,430
(411,380)
(197,241)
(30,229)
Cash and cash equivalents and restricted
cash at beginning of period
899,074
572,502
87,740
1,277,716
857,374
131,399
Cash and cash equivalents and restricted
cash at end of period
866,336
660,133
101,170
866,336
660,133
101,170
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
For the nine months
ended
December 31
December 31,
2019
2020
2019
2020
RMB
RMB
US$
RMB
RMB
US$
Net loss
(1,634,638)
(36,694)
(5,623)
(2,081,748)
(219,342)
(33,616)
Add:
Share of result of equity investees
12,497
-
-
114,104
-
-
Add:
Loss/(gain) from investments, net
33,918
(91,184)
(13,975)
66,550
(91,184)
(13,975)
Add:
Goodwill impairment
1,382,149
-
-
1,382,149
-
-
Add:
Income tax expenses
769
9,437
1,446
528
7,087
1,086
Less:
Interest income
(7,430)
(4,789)
(734)
(23,218)
(15,213)
(2,331)
Loss from operations
(212,735)
(123,230)
(18,886)
(541,635)
(318,652)
(48,836)
Add:
Share-based compensation expenses
21,264
6,665
1,022
55,583
19,693
3,017
Add:
Amortization of intangible assets
102,898
113,469
17,390
244,182
259,697
39,800
Add:
Depreciation of property and equipment
1,877
4,298
659
5,342
7,881
1,208
Adjusted EBITDA
(86,696)
1,202
185
(236,528)
(31,381)
(4,811)
Net loss
(1,634,638)
(36,694)
(5,623)
(2,081,748)
(219,342)
(33,616)
Add:
Loss/(gain) from investments, net
33,918
(91,184)
(13,975)
66,550
(91,184)
(13,975)
Add:
Share-based compensation expenses
21,264
6,665
1,022
55,583
19,693
3,017
Add:
Goodwill impairment
1,382,149
-
-
1,382,149
-
-
Add:
Amortization of intangible assets
102,898
113,469
17,390
244,182
259,697
39,800
Less:
Adjusted for tax effects
(1,161)
(1,161)
(178)
(1,548)
(3,483)
(534)
Adjusted net loss
(95,570)
(8,905)
(1,364)
(334,832)
(34,619)
(5,308)
__________________________
1 “Active buyers of the LVB”
refers to registered user accounts that placed one or more orders
in one of the LVB channels on our platform, regardless of whether
the products are sold, delivered or returned. If a buyer registered
two or more user accounts on our platform and placed orders on our
platform through those different registered user accounts, the
number of active buyers would, under this methodology, be counted
as the number of the registered user accounts that such buyer used
to place the orders;
2 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.
3 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 December 31, 2020, which was RMB6.5250
to US$1.00. The percentages stated in this press release are
calculated based on the RMB amounts.
4 Adjusted EBITDA represents net loss
before (i) interest income, loss/(gain) from investments, net,
income tax expenses, share of results of equity investee and
goodwill impairment 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 NonGAAP Results” at the end of this
press release.
5 Adjusted net loss represents net loss
excluding (i) loss/(gain) from investments, net, (ii) share-based
compensation expenses, (iii) goodwill impairment, (iv) amortization
of intangible assets, (v) adjustments for tax effects. See
“Unaudited Reconciliations of GAAP and NonGAAP Results” at the end
of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225005397/en/
MOGU Inc.
Raymond Huang Phone: +86-571-8530-8201 E-mail: ir@mogu.com
Christensen
In China Mr. Eric Yuan Phone: +86-10-5900-1548 E-mail:
eyuan@christensenir.com
In the United States Ms. Linda Bergkamp Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
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