NEW YORK, April 20, 2021 /PRNewswire/ -- Ucommune (Nasdaq:
UK) released its quarterly earnings ended Dec. 31, 2020 on April 15,
2021.
The company's shifting its workspace management strategy from a
self-managed approach to an asset-light management approach had
resulted in improved financial performance in the fourth quarter.
As of Dec. 31, 2020, 54.3% of the
Company's total managed area was under the asset-light model. With
greater operational efficiency under this business model, Ucommune
was able to expand its managed areas/spaces more rapidly while
narrowing its financial loss significantly, and has now established
itself in the urban development efforts of local municipalities,
able to quickly attain management contracts with many metropolitan
landmark buildings across the country.
Utilizing the proprietary SaaS technology from its subsidiary
Xiyu Information, the Company has built a fixed asset management
system ("DOMES") to provide big data and other smart services for
office buildings and industrial parks.
Ucommune management believes that the Company's business roadmap
is well aligned with the rising demand for more flexible, scalable,
and efficient workspace solutions, triggered by government's
restrictions on commercial property development and wind-down
urbanization. With operational flexibility supported by asset-light
business model and new market opportunities, the management remains
confident that the Company is on the path to profitability over the
foreseeable future.
Fourth Quarter of 2020 Financial Highlights
Net revenues were RMB278.7 million
in 4Q-2020, representing an increase of 39.4% from the previous
quarter and a decrease of 4.8% from a year ago. Among which,
revenues from Workspace Membership Services decreased by 44.5%
year-over-year due to the closure of spaces during COVID-19
outbreak, revenues from Marketing and Branding Services decreased
by 16.2% year-over-year, while Other Services revenues increased by
297.3% year-over-year, mainly driven by increased revenues from its
SaaS services.
GAAP EBITDA loss narrowed by 51.0% year-over-year to
RMB94.8 million, while adjusted
EBITDA loss narrowed by 91.4% year-over-year to RMB9.4 million in the fourth quarter of 2020.
Net loss narrowed by 36.8% year-over-year to RMB149.1 million in the fourth quarter of 2020,
while adjusted net income was RMB62.8
million compared to an adjusted net loss of RMB194.6 million in the previous year.
Basic and fully-diluted net loss per share were both
RMB2.23 in the fourth quarter of
2020, narrowed by 53.3% from RMB4.78
in 4Q-2019. Basic and fully-diluted adjusted net income per share
were both RMB1.02 in the fourth
quarter of 2020, compared to RMB3.95
in the fourth quarter of 2019.
Cash, cash equivalents and restricted cash were RMB400.8 million as of December 31, 2020, representing a year-over-year
increase of 104.2% from RMB196.3
million as of December 31,
2019, primarily due to the PIPE financing in connection with
the Company's business combination, consummated on November 17, 2020.
Fourth Quarter of 2020 Operating Highlights
As of December 31, 2020, Ucommune
had committed to 234 office spaces in 54 cities, up from 222 office
spaces in 51 cities as of September 30,
2020. Among which, 163 spaces were in operation and provided
approximately 647,700 square meters of managed area to 1,044,700
members, up from 158 spaces serving 860,400 members as of the end
of third quarter of 2020.
Under Ucommune's asset-light model, the Company's total number
of spaces under contract increased by 166% to 125 across 46 cities
as of December 31, 2020, up from 47
across 25 cities as of December 31,
2019. Ucommune's total managed area under contract increased
by 105.3% to 351,500 square meters from 171,200 square meters as of
December 31, 2019.
Recent Corporate Development
Ucommune concluded its public offering of Class A ordinary
shares and warrants on February 2,
2021, with gross proceeds of approximately $20 million.
Ucommune's modern technical solutions for office space
management has broadened the Company's business horizon into new
market opportunities. Building on the foundation of the Company's
asset-light model, Ucommune has expanded its service offerings to
include corporate office space brokerage in 1Q-2021. By connecting
various stakeholders within the office space brokerage ecosystem,
including commercial landlords, enterprise tenants, brokerage
firms, and independent brokers, Ucommune has constructed a one-stop
platform providing end-to-end services throughout the entire office
leasing process.
Recognizing the growing brand influence of Xiyu Information, the
Company increased its Xiyu ownership to 53.2% from 51% in
January 2021.
Business Outlook
For the first quarter of 2021, management expects the company's
revenue to range between RMB180
million to RMB210 million.
The management also expects that revenue contribution from the
Company's SaaS services to increase in 2021. Going forward,
Ucommune will continue its asset-light business transformation to
enhance operational efficiency, and continue cultivating healthy
business expansion through the development of a comprehensive
platform offering value-add services to its members and
partners.
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SOURCE Ucommune International Ltd.