Boqii Stick Market NYSE

Boqii Announces Mixed Year-end Results; Stock Tumbles 17%

Boqii Holding Ltd. (NYSE: BQ) announced mixed financial results for the fiscal third quarter.

The Shanghai-based company said its revenues for the three months ending December came in at $48 million, up 23% year-over-year. Net loss expanded 45% to $12.6 million, according to the report.

Boqii Mall revenue reached $17.64 million versus $14.12 million in 2020. The revenue from third-party e-commerce platforms hit $30.64 million.

“We continued to influence pet parents with an extensive and appealing selection of content and products, fostering stronger user bonding and stickiness. We endeavor to build a pet ecosystem that provides full lifecycle coverage and a seamlessly integrated online and offline channel that offers an unparalleled customer experience,” Hao Liang, the founder, chairman and chief executive officer of Boqii, said in a statement.

Active buyers, the company reported, were 1.5 million, representing an increase of 21% from 1.3 million in the same quarter of the fiscal year 2020.

Boqii sells pet products, provides pet training courses and pet-related content, seeking to monetize on the growing “pet humanization” trend.

The stock of the company closed at $5.96 per share Wednesday, down 17%.

Fiscal Q3 2021 Operational and Financial Highlights

  • Total revenues were RMB312.9 million (US$48.0 million), an increase of 23.2% from RMB254.1 million in the same quarter of fiscal year 2020.
  • Net loss was RMB81.9 million (US$12.6 million), compared to net loss of RMB56.4 million in the same quarter of fiscal year 2020.
  • Adjusted net loss was RMB30.5 million (US$4.7million), representing a decrease of 49.8% from the adjusted net loss of RMB60.8 million in the same quarter of fiscal year 2020.
  • EBITDA[1] was a loss of RMB79.2 million (US$12.1 million), representing a 109.2% setback from a loss of RMB37.9 million in the same quarter of fiscal year 2020.
  • Total GMV[2] was RMB763.8 million (US$117.1 million), an increase of 51.5% from RMB504.0 million in the same quarter of fiscal year 2020.
  • Active buyers were 1.5 million, an increase of 21.0% from 1.3 million in the same quarter of fiscal year 2020.

“Solid Q3 results were a testament to Boqii’s relentless efforts on execution and user engagement. We continued to influence pet parents with an extensive and appealing selection of content and products, fostering stronger user bonding and stickiness. We endeavor to build a pet ecosystem that provides full lifecycle coverage and a seamlessly integrated online and offline channel that offers an unparalleled customer experience.”

Mr. Hao Liang, Boqii’s Founder, Chairman and Chief Executive Officer.

“We had another strong quarter, generating solid operational and financial results. Total revenues grew 23.2% year over year to RMB312.9 million. Adjusted net loss improved significantly from RMB60.8 million in the same quarter of last fiscal year to RMB30.5 million. Notably, during the quarter we considerably improved our operating efficiency, manifested in lower fulfillment cost and reduced inventory turnover days. As a result, our adjusted net loss decreased by 49.8% year-on-year to RMB30.5 million. These results demonstrated our strong execution and potential to translate promising topline growth to profitability. Looking ahead, we will continue to drive rapid growth by expanding user reach and providing all-round user care. This will deliver differentiated growth by attracting high value customers in a large growing addressable market, thus further consolidating our position as an industry leader.”

Ms. Yingzhi (Lisa) Tang, Boqii’s Co-Founder, Co-CEO and CFO
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