MOGU Announces Unaudited Financial Results for the Six Months Ended March 31, 2024 and Fiscal Year 2024
Mr.
“To mitigate these challenges, we have been implementing a new operational strategy that was proposed during this fiscal year to restructure into a professional services platform.
“During the second half of fiscal year of 2024, our total revenues decreased by 34.3% to
Highlights For the Six Months Ended
-
Total revenues for the six months ended
March 31, 2024 decreased by 34.3% toRMB77.0 million (US$10.7 million ) fromRMB117.2 million during the same period of fiscal year 2023. -
Live video broadcast (“LVB”)
associated GMV for the six months ended
March 31, 2024 decreased by 6.8% period-over-period toRMB2,950 million (US$408.6 million 2). -
GMV for the six months ended
March 31, 2024 wasRMB3,036 million (US$420.5 million ), a decrease of 6.3% period-over-period.
Financial Results For the Six Months Ended
Total revenues for the six months ended
-
Commission revenues for the six months ended
March 31, 2024 decreased by 28.6% toRMB54.1 million (US$7.5 million ) fromRMB75.8 million in the same period of fiscal year 2023, primarily attributable to the lower GMV due to the heightened competitive environment. -
Marketing services revenues for the six months ended
March 31, 2024 decreased by 85.0% toRMB0.2 million (US$0.03 million ) fromRMB1.4 million in the same period of fiscal year 2023, primarily due to the challenging competitive environment. -
Financing solutions revenues for the six months ended
March 31, 2024 decreased by 19.2% toRMB4.9 million (US$0.7 million ) fromRMB6.0 million in the same period of fiscal year 2023. The decrease was primarily due to the decrease in the service fee of loans to users in line with the lower GMV. -
Technology service revenues for the six months ended
March 31, 2024 decreased by 51.6% toRMB14.9 million (US$2.1 million ) fromRMB30.8 million in the same period of fiscal year 2023, primarily attributable to the decrease of insurance technology service revenue. -
Other revenues for the six months ended
March 31, 2024 decreased by 7.4% toRMB2.9 million (US$0.4 million ) fromRMB3.2 million in the same period of fiscal year 2023.
Cost of revenues for the six months ended
Sales and marketing expenses for the six months ended
Research and development expenses for the six months ended
General and administrative expenses for the six months ended
Amortization of intangible assets for the six months ended
Impairment of goodwill and intangible assets for the six months ended
Loss from operations for the six months ended
Net loss attributable to
Adjusted EBITDA3 for the six months ended
Adjusted net loss4for the six months ended
Basic and diluted loss per ADS for the six months ended
Cash and cash equivalents, Restricted cash and Short-term investments were
Fiscal Year 2024 Financial Results
Total revenues decreased by 30.9% to
-
Commission revenues decreased by 25.6% to
RMB109.7 million (US$15.2 million ) fromRMB147.5 million in fiscal year 2023, primarily attributable to the lower GMV due to the heightened competitive environment. -
Marketing services revenues decreased by 78.2% to
RMB1.0 million (US$0.1 million ) fromRMB4.4 million in fiscal year 2023. The decrease was primarily due to the challenging competitive environment. -
Financing solutions revenues decreased by 20.7% to
RMB10.3 million (US$1.4 million ) fromRMB12.9 million in the same period of fiscal year 2023. The decrease was primarily due to the decrease in service fees of loans to users in line with the lower GMV. -
Technology service revenues increased by 43.5% to
RMB33.3 million (US$4.6 million ) fromRMB58.9 million in the fiscal year 2023, primarily attributable to a decrease in insurance technology services and software services revenue due to the challenging competitive environment. -
Other revenues decreased by 27.0% to
RMB6.1 million (US$0.8 million ) fromRMB8.3 million in fiscal year 2023, primarily due to the decrease in branding services revenue.
Cost of revenues decreased by 19.9% to
Sales and marketing expenses
decreased by 0.5% to
Research and development expenses decreased by 27.9% to
General and administrative expenses decreased by 13.1% to
Amortization of intangible assets decreased by 96.8% to
Impairment of goodwill and intangible assets for the year ended
Loss from operations was
Net loss attributable to
Adjusted EBITDAwas negative
Adjusted net loss was
Basic and diluted loss per ADS were
Subsequent event
On
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 income/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 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
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
About
|
|||||||||
Unaudited Condensed Consolidated Balance Sheets |
|||||||||
(All amounts in thousands, except for share and per share data) |
|||||||||
|
As of |
As of |
|||||||
|
2023 |
2024 |
|||||||
|
RMB |
RMB |
US$ |
||||||
ASSETS |
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|||
Cash and cash equivalents |
416,201 |
|
358,787 |
|
49,691 |
|
|||
Restricted cash |
810 |
|
511 |
|
71 |
|
|||
Short-term investments |
145,836 |
|
61,312 |
|
8,492 |
|
|||
Inventories, net |
144 |
|
98 |
|
14 |
|
|||
Loan receivables, net |
32,229 |
|
31,564 |
|
4,372 |
|
|||
Prepayments, receivables and other current assets |
69,126 |
|
54,956 |
|
7,610 |
|
|||
Amounts due from related parties |
1,260 |
|
587 |
|
81 |
|
|||
Total current assets |
665,606 |
|
507,815 |
|
70,331 |
|
|||
Non-current assets: |
|
|
|
|
|
|
|||
Property and equipment, net |
194,589 |
|
299,741 |
|
41,514 |
|
|||
Intangible assets, net |
12,554 |
|
949 |
|
131 |
|
|||
Right-of-use assets |
5,441 |
|
2,576 |
|
357 |
|
|||
Investments |
69,318 |
|
81,808 |
|
11,330 |
|
|||
Other non-current assets |
63,640 |
|
45,473 |
|
6,298 |
|
|||
Total non-current assets |
345,542 |
|
430,547 |
|
59,630 |
|
|||
Total assets |
1,011,148 |
|
938,362 |
|
129,961 |
|
|||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|||
Accounts payable |
8,179 |
|
6,862 |
|
950 |
|
|||
Salaries and welfare payable |
13,550 |
|
6,936 |
|
961 |
|
|||
Advances from customers |
245 |
|
207 |
|
29 |
|
|||
Taxes payable |
11,126 |
|
1,285 |
|
178 |
|
|||
Amounts due to related parties |
4,196 |
|
5,341 |
|
740 |
|
|||
Current portion of lease liabilities |
2,654 |
|
1,888 |
|
261 |
|
|||
Accruals and other current liabilities |
295,717 |
|
299,317 |
|
41,455 |
|
|||
Total current liabilities |
335,667 |
|
321,836 |
|
44,574 |
|
|||
Non-current liabilities: |
|
|
|
|
|
|
|||
Non-current lease liabilities |
753 |
|
773 |
|
107 |
|
|||
Deferred tax liabilities |
3,369 |
|
1,299 |
|
180 |
|
|||
Total non-current liabilities |
4,122 |
|
2,072 |
|
287 |
|
|||
Total liabilities |
339,789 |
|
323,908 |
|
44,861 |
|
|||
Shareholders’ equity |
|
|
|
|
|
|
|||
Ordinary shares |
181 |
|
181 |
|
25 |
|
|||
|
(137,446 |
) |
(137,446 |
) |
(19,036 |
) |
|||
Statutory reserves |
3,331 |
|
3,331 |
|
461 |
|
|||
Additional paid-in capital |
9,484,664 |
|
9,489,254 |
|
1,314,246 |
|
|||
Accumulated other comprehensive income |
82,396 |
|
89,567 |
|
12,405 |
|
|||
Accumulated deficit |
(8,795,764 |
) |
(8,856,494 |
) |
(1,226,610 |
) |
|||
|
637,362 |
|
588,393 |
|
81,491 |
|
|||
Non-controlling interests |
33,997 |
|
26,061 |
|
3,609 |
|
|||
Total shareholders’ equity |
671,359 |
|
614,454 |
|
85,100 |
|
|||
Total liabilities and shareholders’ equity |
1,011,148 |
|
938,362 |
|
129,961 |
|
The financial statements as of
|
||||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss |
||||||||||||||||||
(All amounts in thousands, except for share and per share data) |
||||||||||||||||||
|
For the six months ended |
For the years ended |
||||||||||||||||
|
|
|
||||||||||||||||
|
2023 |
2024 |
2023 |
2024 |
||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commission revenues |
75,814 |
|
54,123 |
|
7,496 |
|
147,514 |
|
109,742 |
|
15,199 |
|
||||||
Marketing services revenues |
1,434 |
|
215 |
|
30 |
|
4,416 |
|
961 |
|
133 |
|
||||||
Financing solutions revenues |
6,017 |
|
4,864 |
|
674 |
|
12,947 |
|
10,267 |
|
1,422 |
|
||||||
Technology service revenues |
30,790 |
|
14,900 |
|
2,064 |
|
58,867 |
|
33,288 |
|
4,610 |
|
||||||
Other revenues |
3,175 |
|
2,940 |
|
407 |
|
8,332 |
|
6,086 |
|
843 |
|
||||||
Total revenues |
117,230 |
|
77,042 |
|
10,671 |
|
232,076 |
|
160,344 |
|
22,207 |
|
||||||
Cost of revenues (exclusive of amortization of intangible assets shown separately below) |
(54,243 |
) |
(41,589 |
) |
(5,760 |
) |
(113,884 |
) |
(91,191 |
) |
(12,629 |
) |
||||||
Sales and marketing expenses |
(35,063 |
) |
(30,117 |
) |
(4,171 |
) |
(67,709 |
) |
(67,391 |
) |
(9,334 |
) |
||||||
Research and development expenses |
(16,146 |
) |
(12,845 |
) |
(1,779 |
) |
(37,068 |
) |
(26,724 |
) |
(3,701 |
) |
||||||
General and administrative expenses |
(30,704 |
) |
(27,234 |
) |
(3,772 |
) |
(63,445 |
) |
(55,148 |
) |
(7,638 |
) |
||||||
Amortization of intangible assets |
(39,970 |
) |
(75 |
) |
(10 |
) |
(59,992 |
) |
(1,901 |
) |
(263 |
) |
||||||
Impairment of goodwill and intangible assets |
(84,693 |
) |
— |
|
— |
|
(84,693 |
) |
(9,945 |
) |
(1,377 |
) |
||||||
Other income, net |
4,201 |
|
7,725 |
|
1,070 |
|
7,267 |
|
12,784 |
|
1,771 |
|
||||||
Loss from operations |
(139,388 |
) |
(27,093 |
) |
(3,751 |
) |
(187,448 |
) |
(79,172 |
) |
(10,964 |
) |
||||||
Interest income |
8,376 |
|
5,577 |
|
772 |
|
17,389 |
|
12,719 |
|
1,762 |
|
||||||
Interest expense |
(270 |
) |
(191 |
) |
(26 |
) |
(598 |
) |
(191 |
) |
(26 |
) |
||||||
Gain/(loss) from investments, net |
816 |
|
(314 |
) |
(43 |
) |
(18,615 |
) |
953 |
|
132 |
|
||||||
Loss before income tax and share of results of equity investees |
(130,466 |
) |
(22,021 |
) |
(3,048 |
) |
(189,272 |
) |
(65,691 |
) |
(9,096 |
) |
||||||
Income tax benefits/(expenses) |
897 |
|
(44 |
) |
(6 |
) |
1,983 |
|
1,618 |
|
224 |
|
||||||
Share of results of equity investee |
2,008 |
|
(2,382 |
) |
(330 |
) |
883 |
|
(2,886 |
) |
(400 |
) |
||||||
Net loss |
(127,561 |
) |
(24,447 |
) |
(3,384 |
) |
(186,406 |
) |
(66,959 |
) |
(9,272 |
) |
||||||
Net loss attributable to non-controlling interests |
(7,015 |
) |
(569 |
) |
(79 |
) |
(8,422 |
) |
(7,674 |
) |
(1,063 |
) |
||||||
Net loss attributable to |
(120,546 |
) |
(23,878 |
) |
(3,305 |
) |
(177,984 |
) |
(59,285 |
) |
(8,209 |
) |
||||||
Net loss |
(127,561 |
) |
(24,447 |
) |
(3,384 |
) |
(186,406 |
) |
(66,959 |
) |
(9,272 |
) |
||||||
Other comprehensive (loss)/income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments, net of nil tax |
(4,231 |
) |
(1,295 |
) |
(179 |
) |
14,264 |
|
3,675 |
|
509 |
|
||||||
Unrealized securities holding gains/(losses), net of tax |
302 |
|
1,794 |
|
248 |
|
(884 |
) |
3,496 |
|
484 |
|
||||||
Total comprehensive loss |
(131,490 |
) |
(23,948 |
) |
(3,315 |
) |
(173,026 |
) |
(59,788 |
) |
(8,279 |
) |
||||||
Total comprehensive loss attributable to non-controlling interests |
(7,015 |
) |
(569 |
) |
(79 |
) |
(8,422 |
) |
(7,674 |
) |
(1,063 |
) |
||||||
Total comprehensive loss attributable to |
(124,475 |
) |
(23,379 |
) |
(3,236 |
) |
(164,604 |
) |
(52,114 |
) |
(7,216 |
) |
||||||
Net loss per share attributable to ordinary shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
(0.05 |
) |
(0.01 |
) |
(0.00 |
) |
(0.07 |
) |
(0.02 |
) |
(0.00 |
) |
||||||
Diluted |
(0.05 |
) |
(0.01 |
) |
(0.00 |
) |
(0.07 |
) |
(0.02 |
) |
(0.00 |
) |
||||||
Net loss per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
(14.07 |
) |
(2.74 |
) |
(0.38 |
) |
(20.90 |
) |
(6.85 |
) |
(0.95 |
) |
||||||
Diluted |
(14.07 |
) |
(2.74 |
) |
(0.38 |
) |
(20.90 |
) |
(6.85 |
) |
(0.95 |
) |
||||||
Weighted average number of shares used in computing net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
2,570,915,725 |
|
2,613,782,580 |
|
2,613,782,580 |
|
2,554,338,579 |
|
2,597,764,333 |
|
2,597,764,333 |
|
||||||
Diluted |
2,570,915,725 |
|
2,613,782,580 |
|
2,613,782,580 |
|
2,554,338,579 |
|
2,597,764,333 |
|
2,597,764,333 |
|
||||||
Share-based compensation expenses included in: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenues |
640 |
|
75 |
|
10 |
|
1,448 |
|
490 |
|
68 |
|
||||||
General and administrative expenses |
2,786 |
|
1,579 |
|
219 |
|
7,855 |
|
3,342 |
|
463 |
|
||||||
Sales and marketing expenses |
950 |
|
20 |
|
3 |
|
3,398 |
|
439 |
|
61 |
|
||||||
Research and development expenses |
351 |
|
127 |
|
18 |
|
862 |
|
319 |
|
44 |
|
|
||||||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
||||||||||||||||||
(All amounts in thousands, except for share and per share data) |
||||||||||||||||||
|
For the six months ended |
For the years ended |
||||||||||||||||
|
|
|
||||||||||||||||
|
2023 |
2024 |
2023 |
2024 |
||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||
Net cash provided by/(used in) operating activities |
5,930 |
|
(7,554 |
) |
(1,046 |
) |
(10,090 |
) |
(40,461 |
) |
(5,604 |
) |
||||||
Net cash provided by/(used in) investing activities |
28,763 |
|
1,013 |
|
140 |
|
608 |
|
(19,766 |
) |
(2,738 |
) |
||||||
Net cash used in financing activities |
(9,092 |
) |
— |
|
— |
|
(12,064 |
) |
— |
|
— |
|
||||||
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash |
(2,369 |
) |
(822 |
) |
(114 |
) |
(860 |
) |
2,514 |
|
349 |
|
||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash |
23,232 |
|
(7,363 |
) |
(1,020 |
) |
(22,406 |
) |
(57,713 |
) |
(7,993 |
) |
||||||
Cash and cash equivalents and restricted cash at beginning of period |
393,779 |
|
366,661 |
|
50,782 |
|
439,417 |
|
417,011 |
|
57,755 |
|
||||||
Cash and cash equivalents and restricted cash at end of period |
417,011 |
|
359,298 |
|
49,762 |
|
417,011 |
|
359,298 |
|
49,762 |
|
|
||||||||||||||||||||
Unaudited Reconciliations of GAAP and Non-GAAP Results |
||||||||||||||||||||
(All amounts in thousands, except for share and per share data) |
||||||||||||||||||||
|
|
For the six months ended |
For the years ended |
|||||||||||||||||
|
|
|
|
|||||||||||||||||
|
|
2023 |
2024 |
2023 |
2024 |
|||||||||||||||
|
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||
|
Net loss |
(127,561 |
) |
(24,447 |
) |
(3,384 |
) |
(186,406 |
) |
(66,959 |
) |
(9,272 |
) |
|||||||
Add: |
Interest expense |
270 |
|
191 |
|
26 |
|
598 |
|
191 |
|
26 |
|
|||||||
Less: |
Income tax (benefits)/expenses |
(897 |
) |
44 |
|
6 |
|
(1,983 |
) |
(1,618 |
) |
(224 |
) |
|||||||
Less: |
Interest income |
(8,376 |
) |
(5,577 |
) |
(772 |
) |
(17,389 |
) |
(12,719 |
) |
(1,762 |
) |
|||||||
Add: |
Amortization of intangible assets |
39,970 |
|
75 |
|
10 |
|
59,992 |
|
1,901 |
|
263 |
|
|||||||
Add: |
Depreciation of property and equipment |
3,244 |
|
4,562 |
|
632 |
|
5,311 |
|
8,091 |
|
1,121 |
|
|||||||
|
EBITDA |
(93,350 |
) |
(25,152 |
) |
(3,482 |
) |
(139,877 |
) |
(71,113 |
) |
(9,848 |
) |
|||||||
Add: |
Impairment of goodwill and intangible assets |
84,693 |
|
— |
|
— |
|
84,693 |
|
9,945 |
|
1,377 |
|
|||||||
Add: |
Share-based compensation expenses |
4,727 |
|
1,801 |
|
250 |
|
13,563 |
|
4,590 |
|
636 |
|
|||||||
Add: |
Share of result of equity investees |
(2,008 |
) |
2,382 |
|
330 |
|
(883 |
) |
2,886 |
|
400 |
|
|||||||
Less: |
(Gain)/Loss from investments, net |
(816 |
) |
314 |
|
43 |
|
18,615 |
|
(953 |
) |
(132 |
) |
|||||||
|
Adjusted EBITDA |
(6,754 |
) |
(20,655 |
) |
(2,859 |
) |
(23,889 |
) |
(54,645 |
) |
(7,567 |
) |
|||||||
|
Net loss |
(127,561 |
) |
(24,447 |
) |
(3,384 |
) |
(186,406 |
) |
(66,959 |
) |
(9,272 |
) |
|||||||
Add: |
(Gain)/Loss from investments, net |
(816 |
) |
314 |
|
43 |
|
18,615 |
|
(953 |
) |
(132 |
) |
|||||||
Add: |
Share-based compensation expenses |
4,727 |
|
1,801 |
|
250 |
|
13,563 |
|
4,590 |
|
636 |
|
|||||||
Add: |
Impairment of goodwill and intangible assets |
84,693 |
|
— |
|
— |
|
84,693 |
|
9,945 |
|
1,377 |
|
|||||||
Less: |
Adjusted for tax effects |
(7,713 |
) |
— |
|
— |
|
(8,948 |
) |
(1,755 |
) |
(243 |
) |
|||||||
|
Adjusted net loss |
(46,670 |
) |
(22,332 |
) |
(3,091 |
) |
(78,483 |
) |
(55,132 |
) |
(7,634 |
) |
1 GMV are to gross merchandise volume, refers to the total value of orders placed on the
2 The
3 Adjusted EBITDA represents net loss before (i) interest income, interest expense, (gain)/loss from investments, net, income tax (benefits)/expenses and share of results of equity investees, impairment of goodwill and intangible assets 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.
4 Adjusted net loss represents net loss excluding (i) (gain)/loss from investments, net, (ii) share-based compensation expenses, (iii) impairment of goodwill and intangible assets, (iv) 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/20240709745398/en/
For investor and media inquiries, please contact:
Ms.
Phone: +86-571-8530-8201
E-mail: ir@mogu.com
Christensen
In
Ms.
Phone: +852-2232-3980
E-mail: rachel.xia@christensencomms.com
In
Ms.
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Source: