Live Video Broadcast
(“LVB”) Business Maintains Robust Growth Momentum with GMV
Increasing 42.2% YoY in the Second quarter
LVB GMV for the Second
quarter Accounted for 74.4% 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 second quarter of
fiscal year 2021 ended September 30, 2020.
"In the post-COVID environment, we were glad to see our KOLs
have leveraged strong supply chain in China and delivered another
strong quarter for MOGU Live." said Chen Qi, Chairman and Chief
Executive Officer of MOGU. "We believe that MOGU Live is our best
response to the structural change in the fashion supply chain
landscape in China. Manufacturers' best products and rapid
manufacturing capabilities can be digitalized and presented to our
consumers in the most immersive and interactive fashion. Looking
forward, we will remain dedicated to providing the best fashion
shopping experience to our consumers."
"We continue to invest in user engagement and conversion and our
active MOGU live buyers increased by 20.7% year over year." added
Mr. Raymond Huang, Chief Strategy Officer. "Our live video
broadcasting business is our key growth driver and it has delivered
42.2% growth year over year. MOGU live accounted for 74.4% of our
total GMV in the second quarter of fiscal year 2021."
Second Quarter Fiscal Year 2021 Highlights
- Gross Merchandise Value (GMV1) for the second quarter of
fiscal year 2021 was RMB3,112 million (US$458.3 million2), a
decrease of 25.3% year-over-year. GMV for the twelve-month period
ended September 30, 2020 was RMB14,951 million (US$2,202.0
million), a decrease of 16.1% year-over-year.
- Live Video Broadcast business continued to grow stronger
with associated GMV for the second quarter of fiscal year 2021
increasing by 42.2% year-over-year to RMB2,316 million (US$341.1
million). LVB associated GMV for the second quarter of fiscal year
2021 accounted for 74.4% of total GMV. Active buyers of the LVB3 in
the twelve-month period ended September 30, 2020 grew by 20.7%
year-over-year to 3.5 million.
Second quarter Fiscal Year 2021 Financial Results
Total revenues decreased by 43.1% to RMB112.5 million
(US$16.6 million) from RMB197.9 million during the same quarter of
fiscal year 2020.
- Commission revenues decreased by 32.0% to RMB68.9
million (US$10.1 million) from RMB101.3 million in the same period
of fiscal year 2020, primarily due to the restructuring of the
Company’s business towards a LVB-focused model. Commission revenue
from the LVBbusiness grew year-over-year and wasin line with the
continued year-over-year growth in LVB-associated GMV.
- Marketing services revenuesdecreased by 71.5% to RMB18.0
million (US$2.6 million) from RMB63.1million 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 23.4% to RMB25.7 million
(US$3.8million) from RMB33.5 million in the same period of fiscal
year 2020, primarily due to a decrease in online direct sales.
Cost of revenues decreased by 40.1% to RMB45.5 million (US$6.7
million) from RMB76.0 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 73.5% to RMB47.9
million (US$7.1 million) from RMB180.8 million in the same period
of fiscal year 2020, primarily due to optimized spending on user
acquisition activities and user incentive programs resulting from
the restructuring of the Company’s business and also due to
measures we conducted to counter the adverse impact of
COVID-19.
Research and development expenses decreased by 45.0% to RMB27.7
million (US$4.1 million) from RMB50.3 million in the same period of
fiscal year 2020, primarily as a result of headcount optimization
we conducted to counter the adverse impact of COVID-19.
General and administrative expenses decreased by 37.4% to
RMB24.7 million (US$3.6 million) from RMB39.5 million in the same
period of fiscal year 2020, primarily due to a decrease of payroll
expenses.
Amortization of intangible assets decreased by 1.4% to RMB75.8
million (US$11.2 million) from RMB76.8 million in the same period
of fiscal year 2020.
Loss from operations was RMB100.5 million (US$14.8
million), compared to loss from operations of RMB223.6 million in
the same period of fiscal year 2020.
Net loss attributable to MOGU Inc.’s ordinary
shareholders was RMB93.7 million (US$13.8 million), compared to
a net loss attributable to MOGU Inc’s ordinary shareholders of
RMB326.6 million in the same period of fiscal year 2020.
Adjusted EBITDA4 was negative RMB15.2 million (US$2.2
million), compared to negative RMB124.6 million in the same period
of fiscal year 2020.
Adjusted net loss5 was RMB11.3 million (US$1.7 million),
compared to adjusted net loss of RMB196.9 million in the same
period of fiscal year 2020.
Basic and diluted loss per ADS were RMB 0.87 (US$ 0.13)
and RMB 0.87 (US$ 0.13), respectively, compared with RMB3.0 and
RMB3.0, 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 RMB802.5 million (US$118.2 million) as of
September 30, 2020, compared with RMB1,095.4 million as of March
31, 2020.
Subsequent event
In October 2020, one of the Company's investee repurchased a
majority portion of the Company’s investment in the investee for a
total cash consideration of approximately US$16.0 million
(equivalent to RMB107.1million), of which US$14.4 million was
received in October 2020. As a result, a gain from the investment
will be recognized in the quarter ended December 31, 2020.
Conference Call
MOGU's management will host an earnings conference call at 6:30
AM U.S. Eastern Time on Monday, November 30, 2020 (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 December 7,
2020.
Dial-in numbers for the replay are as follows:
International:
+1 416 621 4642
United States:
+1 800 585 8367
Passcode:
3347189
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 from
investments, net, income tax benefits, 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
loss from investments, net, 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 September 30,
2020
2020
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
856,567
571,695
84,202
Restricted cash
807
807
118
Short-term investments
238,000
230,000
33,875
Inventories, net
2,926
1,975
291
Loan receivables, net
113,111
112,985
16,641
Prepayments and other current assets
99,108
82,299
12,122
Amounts due from related parties
57
36
5
Total current assets
1,310,576
999,797
147,254
Non-current assets:
Property, equipment and software, net
14,109
13,794
2,032
Intangible assets, net
813,011
642,024
94,560
Goodwill
186,504
186,504
27,469
Investments
102,373
120,868
17,802
Other non-current assets
14,183
121,258
17,859
Total non-current assets
1,130,180
1,084,448
159,722
Total assets
2,440,756
2,084,245
306,976
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable
17,080
20,259
2,984
Salaries and welfare payable
6,032
13,642
2,009
Advances from customers
103
65
10
Taxes payable
6,342
1,289
190
Amounts due to related parties
12,018
6,753
995
Accruals and other current liabilities
393,536
347,239
51,143
Total current liabilities
435,111
389,247
57,331
Non-current liabilities:
Deferred tax liabilities
21,529
25,761
3,794
Other non-current liabilities
3,644
2,866
422
Total non-current liabilities
25,173
28,627
4,216
Total liabilities
460,284
417,874
61,547
Shareholders’ equity
Ordinary shares
180
181
26
Treasury stock
(6,566)
(109,667)
(16,152)
Statutory reserves
2,630
2,630
387
Additional paid-in capital
9,431,740
9,445,237
1,391,133
Accumulated other comprehensive income
201,796
159,946
23,557
Accumulated deficit
(7,649,308)
(7,831,956)
(1,153,522)
Total MOGU Inc. shareholders’ equity
1,980,472
1,666,371
245,429
Total shareholders’ equity
1,980,472
1,666,371
245,429
Total liabilities and shareholders’
equity
2,440,756
2,084,245
306,976
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 six months
ended
September 30,
September 30,
2019
2020
2019
2020
RMB
RMB
US$
RMB
RMB
US$
Net revenues
Commission revenues
101,315
68,901
10,148
230,697
154,210
22,713
Marketing services revenues
63,130
17,977
2,648
152,374
41,969
6,181
Other revenues
33,478
25,650
3,778
63,714
48,804
7,188
Total revenues
197,923
112,528
16,574
446,785
244,983
36,082
Cost of revenues (exclusive of
amortization of intangible assets shown separately below)
(75,972)
(45,488)
(6,700)
(136,576)
(94,285)
(13,887)
Sales and marketing expenses
(180,758)
(47,938)
(7,061)
(325,719)
(109,842)
(16,178)
Research and development expenses
(50,258)
(27,654)
(4,073)
(106,440)
(56,652)
(8,344)
General and administrative expenses
(39,482)
(24,721)
(3,641)
(73,698)
(48,248)
(7,106)
Amortization of intangible assets
(76,815)
(75,750)
(11,157)
(141,284)
(146,228)
(21,537)
Other income, net
1,775
8,523
1,255
8,032
14,850
2,187
Loss from operations
(223,587)
(100,500)
(14,803)
(328,900)
(195,422)
(28,783)
Interest income
7,405
5,660
834
15,788
10,424
1,535
Loss from investments, net
(32,632)
-
-
(32,632)
-
-
Loss before income tax and share of
results of equity investees
(248,814)
(94,840)
(13,969)
(345,744)
(184,998)
(27,248)
Income tax benefits
578
1,103
162
241
2,350
346
Share of results of equity investee
(78,348)
-
-
(101,607)
-
-
Net loss
(326,584)
(93,737)
(13,807)
(447,110)
(182,648)
(26,902)
Net loss attributable to MOGU
Inc.
(326,584)
(93,737)
(13,807)
(447,110)
(182,648)
(26,902)
Net loss attributable to MOGU Inc's
ordinary shareholders
(326,584)
(93,737)
(13,807)
(447,110)
(182,648)
(26,902)
Net loss
(326,584)
(93,737)
(13,807)
(447,110)
(182,648)
(26,902)
Other comprehensive
income/(loss):
Foreign currency translation adjustments,
net of nil tax
49,756
(38,300)
(5,641)
103,137
(39,159)
(5,767)
Share of other comprehensive income
/(loss) of equity method investee
110
-
-
(268)
-
-
Unrealized securities holding losses, net
of tax
(6,759)
(2,691)
(396)
(6,759)
(2,691)
(396)
Total comprehensive loss
(283,477)
(134,728)
(19,844)
(351,000)
(224,498)
(33,065)
Total comprehensive loss attributable
to MOGU Inc.
(283,477)
(134,728)
(19,844)
(351,000)
(224,498)
(33,065)
Net loss attributable to MOGU Inc's
ordinary shareholders
(326,584)
(93,737)
(13,807)
(447,110)
(182,648)
(26,902)
Net loss per share attributable to
ordinary shareholders
Basic
(0.12)
(0.03)
(0.01)
(0.16)
(0.07)
(0.01)
Diluted
(0.12)
(0.03)
(0.01)
(0.16)
(0.07)
(0.01)
Net loss per ADS
Basic
(3.00)
(0.87)
(0.13)
(4.12)
(1.68)
(0.25)
Diluted
(3.00)
(0.87)
(0.13)
(4.12)
(1.68)
(0.25)
Weighted average number of shares used
in computing net loss per share
Basic
2,720,892,161
2,692,172,477
2,692,172,477
2,702,715,560
2,710,268,598
2,710,268,598
Diluted
2,720,892,161
2,692,172,477
2,692,172,477
2,702,715,560
2,710,268,598
2,710,268,598
Share-based compensation expenses
included in:
Cost of revenues
1,434
729
107
(1,525)
1,249
184
General and administrative expenses
12,137
4,613
679
21,451
7,538
1,110
Sales and marketing expenses
2,498
1,291
190
5,271
2,621
386
Research and development expenses
4,514
1,192
176
9,122
1,620
239
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 six months
ended
September 30,
September 30,
2019
2020
2019
2020
RMB
RMB
US$
RMB
RMB
US$
Net cash used in operating
activities
(89,391)
(31,382)
(4,622)
(119,270)
(39,981)
(5,889)
Net cash used in investing
activities
(148,798)
(116,622)
(17,177)
(267,947)
(130,836)
(19,270)
Net cash used in financing
activities
(18,966)
(97,095)
(14,301)
(25,773)
(102,631)
(15,116)
Effect of foreign exchange rate changes on
cash and cash equivalents and restricted cash
17,814
(11,149)
(1,642)
34,348
(11,424)
(1,683)
Net decrease in cash and cash equivalents
and restricted cash
(239,341)
(256,248)
(37,742)
(378,642)
(284,872)
(41,958)
Cash and cash equivalents and restricted
cash at beginning of period
1,138,415
828,750
122,062
1,277,716
857,374
126,278
Cash and cash equivalents and restricted
cash at end of period
899,074
572,502
84,320
899,074
572,502
84,320
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 six months
ended
September 30,
September 30,
2019
2020
2019
2020
RMB
RMB
US$
RMB
RMB
US$
Net loss
(326,584)
(93,737)
(13,807)
(447,110)
(182,648)
(26,902)
Add:
Share of result of equity investees
78,348
-
-
101,607
-
-
Add:
Loss from investments, net
32,632
-
-
32,632
-
-
Less:
Income tax benefits
(578)
(1,103)
(162)
(241)
(2,350)
(346)
Less:
Interest income
(7,405)
(5,660)
(834)
(15,788)
(10,424)
(1,535)
Loss from operations
(223,587)
(100,500)
(14,803)
(328,900)
(195,422)
(28,783)
Add:
Share-based compensation expenses
20,583
7,825
1,152
34,319
13,028
1,919
Add:
Amortization of intangible assets
76,815
75,750
11,157
141,284
146,228
21,537
Add:
Depreciation of property and equipment
1,626
1,768
260
3,465
3,583
528
Adjusted EBITDA
(124,563)
(15,157)
(2,234)
(149,832)
(32,583)
(4,799)
Net loss
(326,584)
(93,737)
(13,807)
(447,110)
(182,648)
(26,902)
Add:
Loss from investments, net
32,632
-
-
32,632
-
-
Add:
Share-based compensation expenses
20,583
7,825
1,152
34,319
13,028
1,919
Add:
Amortization of intangible assets
76,815
75,750
11,157
141,284
146,228
21,537
Less:
Adjusted for tax effects
(387)
(1,161)
(171)
(387)
(2,322)
(342)
Adjusted net loss
(196,941)
(11,323)
(1,669)
(239,262)
(25,714)
(3,788)
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 September 30, 2020, which was RMB6.7896 to
US$1.00. The percentages stated in this press release are
calculated based on the RMB amounts. 3 “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; 4 Adjusted EBITDA represents net loss before
(i) interest income, loss from investments, net, income tax
benefits 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 NonGAAP
Results” at the end of this press release. 5 Adjusted net loss
represents net loss excluding (i) loss from investments, net, (ii)
share-based compensation expenses, (iii) amortization of intangible
assets, (iv) adjustments for tax effects. See “Unaudited
Reconciliations of GAAP and NonGAAP Results” at the end of this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20201130005376/en/
For investor and media inquiries, please contact: 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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