Boqii Announces Fiscal 2022 Third Quarter Unaudited Financial Results
Boqii Holding Limited (“Boqii” or the “Company”) (NYSE: BQ), a leading pet-focused platform in China, today announced its unaudited financial results for the third quarter of fiscal year 2022 (the quarter ended December 31, 2021).
Fiscal Q3 2022 Operational and Financial Highlights
- Total revenues were RMB 332.6 million (US$ 52.2 million), representing an increase of 6.3% from RMB312.9 million in the same quarter of fiscal year 2021.
- Net loss was RMB28.8 million (US$4.5 million), representing an improvement from net loss of RMB81.9 million in the same quarter of fiscal year 2021.
- Adjusted net loss was RMB25.4 million (US$4.0 million), representing an improvement from adjusted net loss of RMB30.5 million in the same quarter of fiscal year 2021.
- EBITDA[1] was a loss of RMB25.6 million (US$4.0 million), representing an improvement from a loss of RMB79.2 million in the same quarter of fiscal year 2021.
- Total GMV[2] was RMB816.5 million (US$128.1 million), representing an increase of 6.9% from RMB763.8 million in the same quarter of fiscal year 2021.
- Active buyers were 1.9 million, representing an increase of 26.3% from 1.5 million in the same quarter of fiscal year 2021.
[1]EBITDA refers to net loss excluding income tax expenses, interest expense, interest income, depreciation and amortization expenses. EBITDA is a Non-GAAP financial measurement. Please refer to “Non-GAAP financial measurement”. |
[2]GMV refers to gross merchandise volume, which is the total value of confirmed orders placed with us and sold through distribution model or drop shipping model where we act as a principal in the transaction regardless of whether the products are delivered or returned, calculated based on the listed prices of the ordered products without taking into consideration any discounts. The total GMV amount (i) includes GMV of products sold by Xingmu, (ii) excludes products sold through consignment model and (iii) excludes the value of services offered by us. GMV is subject to future adjustments (such as refunds) and represents only one measure of the Company’s performance and should not be relied on as an indicator of our financial results, which depend on a variety of factors. |
CEO & CFO Quote
Mr. Hao Liang, Boqii’s Founder, Chairman and Chief Executive Officer commented, “We maintained continuous topline growth in the third fiscal quarter of 2022 amidst challenging market conditions. On top of that, we are pleased to report fast-improving profit margins, highlighting the progress we made in achieving profitability. We also announced a strategic partnership with Evetsoft Pet Hospital Software and furthered our pet care supply chain readiness, to provide pets with better care at more accessible price points.”
Ms. Yingzhi (Lisa) Tang, Boqii’s Co-Founder, Co-CEO and CFO commented: “Continuous growth momentum from online marketing, information services, and other revenue once again exhibited the strength of our vertical platform and unique value propositions to other players in the industry chain. Our improved gross margin also demonstrated our ability to achieve profitability. We are committed to bringing the best-in-class products and services closer to our ever-increasing customer base and industry partners, to capture the enormous opportunities in the pet industry.”
Fiscal Q3 2022 Financial Results
Total revenues were RMB332.6 million (US$52.2 million), representing an increase of 6.3% from RMB312.9 million in the same quarter of fiscal year 2021. The increase was primarily due to the continued organic growth of our business.
Revenues |
Three Months Ended December 31
|
% |
||||
2021 |
2020 |
change |
||||
RMB |
RMB |
YoY |
||||
Product sales |
317.4 |
312.3 |
1.6% |
|||
· Boqii Mall |
121.3 |
114.1 |
6.3% |
|||
· Third party e-commerce platforms |
196.1 |
198.2 |
(1.1%) |
|||
Online marketing and information services and other revenue |
15.2 |
0.6 |
2433.3% |
|||
Total |
322.6 |
312.9 |
6.3% |
Gross profit was RMB76.9 million (US$12.1 million), representing an increase of 37% from RMB56.1 million in the same quarter of fiscal year 2021.
Gross margin was 23.1%, representing an increase from 17.9% in the same quarter of fiscal year 2021.
Operating expenses were RMB108.2 million, representing a decrease of 28.1% from RMB150.5 million in the same quarter of fiscal year 2021. Operating expenses as a percentage of total revenues was 32.5%, representing a decrease from 48.1% in the same quarter of fiscal year 2021. The decrease was primarily due to share-based compensation expenses incurred in fiscal year 2021. Pursuant to the Amended and Restated 2018 Global Share Plan, the performance condition for options granted thereunder was satisfied upon completion of our IPO; and as a result, the company, upon the completion of the IPO, recorded RMB44.1 million of cumulative share-based compensation expenses for those options for which the vesting conditions had been satisfied as of such date.
- Fulfillment Expenses were RMB37.7 million, representing an increase of 12.2% from RMB33.6 million in the same quarter of fiscal year 2021. Fulfillment expenses as a percentage of total revenues was 11.3%, compared to 10.7% in the same quarter of fiscal year 2021. The increase was primarily due to the increased handling expenses and packaging cost.
- Sales and marketing expenses were RMB48.3 million, representing a decrease of 12.4% from RMB55.1 million in the same quarter of fiscal year 2021. Sales and marketing expenses as a percentage of total revenue was 14.5%, representing a decrease from 17.6% in the same quarter of fiscal year 2021. The decrease was primarily due to the decrease of share-based compensation expense of RMB11.4 million compared with the same quarter of fiscal year 2021.
- General and administrative expenses were RMB22.3 million, representing a decrease of 64% from RMB61.8 million in the same quarter of fiscal year 2021. General and administrative expenses as a percentage of total revenue was 6.7%, representing a decrease from 19.8% in the same quarter of fiscal year 2021. The decrease was primarily due to: (i) the decrease of share-based compensation expense of RMB35.7 million compared with the same quarter of fiscal year 2021; (ii) the decrease of professional fees of RMB3.9 million incurred in connection with our IPO in the same quarter of fiscal year 2021.
Operating loss was RMB31.3 million (US$4.9 million), representing an improvement from a loss of RMB93.6 million in the same quarter of fiscal year 2021.
EBITDA was a loss of RMB25.6 million (US$4.0 million), representing an improvement from a loss of RMB79.2 million in the same quarter of fiscal year 2021.
Net loss was RMB28.8 million (US$4.5 million), representing an improvement from to net loss of RMB81.9 million in the same quarter of fiscal year 2021.
Adjusted net loss was RMB25.4 million (US$4.0 million), representing an improvement from adjusted net loss of RMB30.5 million in the same quarter of fiscal year 2021.
Diluted net loss per share was RMB0.41 (US$0.06), representing an improvement from diluted net loss per share of RMB1.61 in the same quarter of fiscal year 2021.
Total cash and cash equivalents and short-term investments were RMB315.7 million (US$49.5 million), compared to RMB339.4 million as of September 30, 2021.
Conference Call
Boqii’s management will hold a conference call to discuss the financial results at 8:00 AM on Wednesday, March 3, 2022, U.S. Eastern Time (9:00 PM on Wednesday, March 3, 2022, Beijing/Hong Kong Time).
Phone Number |
|
International |
1-412-317-6061 |
United States |
1-888-317-6003 |
Hong Kong |
852 800-963976 |
Mainland China |
86 4001-206115 |
Passcode |
9147363 |
A replay of the conference call may be accessed by phone at the following numbers until March 10, 2022.
Phone Number |
|
International |
1-412-317-0088 |
United States |
1-877-344-7529 |
Replay Access Code |
8462589 |
A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.boqii.com/.
Boqii Holding Limited |
||||||
Unaudited Consolidated Balance Sheets |
||||||
(In thousands, except share and per share data) |
||||||
As of |
As of |
As of December 31, |
||||
RMB |
RMB |
US$ |
||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
292,237 |
176,026 |
27,622 |
|||
Short-term investments |
168,546 |
139,648 |
21,914 |
|||
Accounts receivable, net |
45,732 |
53,991 |
8,472 |
|||
Inventories, net |
91,551 |
123,316 |
19,351 |
|||
Prepayments and other current assets |
85,261 |
106,650 |
16,736 |
|||
Amounts due from related parties |
11,465 |
23,430 |
3,677 |
|||
Total current assets |
694,792 |
623,061 |
97,772 |
|||
Non-current assets: |
||||||
Property and equipment, net |
8,386 |
7,403 |
1,162 |
|||
Intangible assets |
29,537 |
26,544 |
4,165 |
|||
Operating lease right-of-use assets |
29,234 |
42,065 |
6,601 |
|||
Long-term investments |
74,330 |
94,887 |
14,890 |
|||
Goodwill |
40,184 |
40,684 |
6,384 |
|||
Other non-current asset |
4,111 |
4,140 |
650 |
|||
Total non-current assets |
185,782 |
215,723 |
33,852 |
|||
Total assets |
880,574 |
838,784 |
131,624 |
|||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT |
||||||
Current liabilities |
||||||
Short-term borrowings |
85,566 |
152,426 |
23,919 |
|||
Accounts payable |
71,848 |
100,235 |
15,729 |
|||
Salary and welfare payable |
6,309 |
8,619 |
1,353 |
|||
Accrued liabilities and other current liabilities |
30,055 |
35,474 |
5,567 |
|||
Amounts due to related parties, current |
910 |
9,981 |
1,566 |
|||
Contract liabilities |
3,866 |
10,534 |
1,653 |
|||
Operating lease liabilities, current |
8,063 |
10,197 |
1,600 |
|||
Derivative liabilities |
9,996 |
9,635 |
1,512 |
|||
Total current liabilities |
216,613 |
337,101 |
52,899 |
|||
Non-current liabilities |
||||||
Deferred tax liabilities |
8,958 |
8,216 |
1,289 |
|||
Operating lease liabilities, non-current |
19,997 |
30,565 |
4,796 |
|||
Long-term borrowings |
68,075 |
– |
– |
|||
Other debts, non-current |
433,292 |
251,141 |
39,410 |
|||
Total non-current liabilities |
530,322 |
289,922 |
45,495 |
|||
Total liabilities |
746,935 |
627,023 |
98,394 |
|||
Mezzanine equity |
||||||
Redeemable non-controlling interests |
5,946 |
6,374 |
1,000 |
|||
Total mezzanine equity |
5,946 |
6,374 |
1,000 |
|||
Stockholders’ equity: |
||||||
Class A ordinary shares (US$0.001 par value; 129,500,000 shares authorized, 54,505,108 and 55,703,708 shares issued and outstanding as of March 31 and December 31, 2021, respectively) |
364 |
372 |
58 |
|||
Class B ordinary shares (US$0.001 par value; 15,000,000 shares authorized, 13,037,729 shares issued and outstanding as of March 31 and December, 31, 2021, respectively) |
82 |
82 |
13 |
|||
Additional paid-in capital |
3,272,612 |
3,295,010 |
517,059 |
|||
Statutory reserves |
3,047 |
3,203 |
503 |
|||
Accumulated other comprehensive loss |
(20,172) |
(33,675) |
(5,284) |
|||
Accumulated deficit |
(2,759,882) |
(2,866,435) |
(449,807) |
|||
Receivable for issuance of ordinary shares |
(413,377) |
(235,556) |
(36,964) |
|||
Total Boqii Holding Limited shareholders’ equity |
82,674 |
163,001 |
25,578 |
|||
Non-controlling interests |
45,019 |
42,386 |
6,652 |
|||
Total shareholders’ equity |
127,693 |
205,387 |
32,230 |
|||
Total liabilities, mezzanine equity and shareholders’ equity |
880,574 |
838,784 |
131,624 |
Boqii Holding Limited |
||||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
||||||||||||
(All amounts in thousands, except for share and per share data, unless otherwise noted) |
||||||||||||
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||
2020 |
2021 |
2021 |
2020 |
2021 |
2021 |
|||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
Net revenues: |
||||||||||||
Product sales |
312,371 |
317,439 |
49,813 |
778,186 |
895,022 |
140,449 |
||||||
Online marketing and information services |
555 |
15,166 |
2,380 |
2,368 |
41,550 |
6,520 |
||||||
Total revenues |
312,926 |
332,605 |
52,193 |
780,554 |
936,572 |
146,969 |
||||||
Total cost of revenue |
(256,784) |
(255,686) |
(40,123) |
(638,507) |
(747,566) |
(117,309) |
||||||
Gross profit |
56,142 |
76,919 |
12,070 |
142,047 |
189,006 |
29,659 |
||||||
Operating expenses: |
||||||||||||
Fulfillment expenses |
(33,557) |
(37,655) |
(5,909) |
(96,225) |
(100,174) |
(15,719) |
||||||
Sales and marketing expenses |
(55,107) |
(48,257) |
(7,573) |
(121,393) |
(137,711) |
(21,610) |
||||||
General and administrative expenses |
(61,811) |
(22,282) |
(3,497) |
(95,376) |
(65,056) |
(10,209) |
||||||
Other income, net |
740 |
20 |
3 |
1,045 |
87 |
14 |
||||||
Loss from operations |
(93,593) |
(31,255) |
(4,906) |
(169,902) |
(113,848) |
(17,865) |
||||||
Interest income |
5,471 |
3,470 |
545 |
11,674 |
13,334 |
2,092 |
||||||
Interest expense |
(6,990) |
(4,935) |
(774) |
(20,549) |
(16,994) |
(2,667) |
||||||
Other (losses)/gain, net |
12,552 |
3,254 |
511 |
16,328 |
3,659 |
574 |
||||||
Fair value change of derivative liabilities |
– |
920 |
144 |
10,409 |
1,331 |
209 |
||||||
Loss before income tax expenses |
(82,560) |
(28,546) |
(4,480) |
(152,040) |
(112,518) |
(17,657) |
||||||
Income taxes expenses |
603 |
159 |
25 |
412 |
1,406 |
221 |
||||||
Share of results of equity investees |
22 |
(382) |
(60) |
(55) |
452 |
71 |
||||||
Net loss |
(81,935) |
(28,769) |
(4,515) |
(151,683) |
(110,660) |
(17,365) |
||||||
Less: Net income/(loss) attributable to the non-controlling interest shareholders |
1,242 |
(1,011) |
(159) |
2,138 |
(4,694) |
(737) |
||||||
Net loss attributable to Boqii Holding Limited |
(83,177) |
(27,758) |
(4,356) |
(153,821) |
(105,966) |
(16,628) |
||||||
Less: Accretion on convertible redeemable preferred shares to redemption value |
195,935 |
– |
– |
120,873 |
– |
– |
||||||
Less: Accretion on redeemable non-controlling interests to redemption value |
– |
(145) |
(23) |
– |
(428) |
(67) |
||||||
Less: Deemed dividend to preferred shareholders |
– |
– |
– |
(12,547) |
– |
– |
||||||
Net income/(loss) attributable to Boqii Holding Limited‘s ordinary shareholders |
112,758 |
(27,903) |
(4,379) |
(45,495) |
(106,394) |
(16,696) |
||||||
Net loss |
(81,935) |
(28,769) |
(4,515) |
(151,683) |
(110,660) |
(17,365) |
||||||
Other comprehensive loss: |
||||||||||||
Foreign currency translation adjustment, net of nil tax |
(24,062) |
(7,738) |
(1,214) |
(35,579) |
(13,503) |
(2,119) |
||||||
Unrealized securities holding gains |
– |
– |
– |
1,195 |
– |
– |
||||||
Total comprehensive loss |
(105,997) |
(36,507) |
(5,729) |
(186,067) |
(124,163) |
(19,484) |
||||||
Less: Total comprehensive income/(loss) attributable to non-controlling interest shareholders |
1,242 |
(1,011) |
(159) |
2,138 |
(4,694) |
(737) |
||||||
Total comprehensive loss attributable to Boqii Holding Limited |
(107,239) |
(35,496) |
(5,570) |
(188,205) |
(119,469) |
(18,747) |
||||||
Net earnings/(loss) per share attributable to Boqii Holding Limited’s ordinary shareholders |
||||||||||||
— basic |
1.68 |
(0.41) |
(0.06) |
(0.68) |
(1.57) |
(0.25) |
||||||
— diluted |
1.61 |
(0.41) |
(0.06) |
(0.68) |
(1.57) |
(0.25) |
||||||
Weighted average number of ordinary shares |
||||||||||||
— basic |
67,156,580 |
67,861,419 |
67,861,419 |
67,156,580 |
67,735,744 |
67,735,744 |
||||||
— diluted |
70,041,375 |
67,861,419 |
67,861,419 |
67,156,580 |
67,735,744 |
67,735,744 |
Boqii Holding Limited |
||||||||
Reconciliation of GAAP and Non-GAAP Results |
||||||||
(In thousands, except % and per share data) |
||||||||
Three Months Ended |
Three Months Ended |
Nine Months Ended |
Nine Months Ended |
|||||
Net loss |
(81,935) |
(28,769) |
(151,683) |
(110,660) |
||||
Fair value change of derivative liabilities |
– |
(920) |
(10,409) |
(1,331) |
||||
Share-based compensation |
51,422 |
4,312 |
51,422 |
14,215 |
||||
Adjusted Net Loss |
(30,513) |
(25,377) |
(110,670) |
(97,776) |
||||
Adjusted Net Loss Margin |
(9.8%) |
(7.6%) |
(14.2%) |
(10.4%) |
||||
Three Months Ended |
Three Months Ended |
Nine Months Ended |
Nine Months Ended |
|||||
Net loss |
(81,935) |
(28,769) |
(151,683) |
(110,660) |
||||
Income tax expenses |
(603) |
(159) |
(412) |
(1,406) |
||||
Interest expenses |
6,990 |
4,935 |
20,549 |
16,994 |
||||
Interest income |
(5,471) |
(3,470) |
(11,674) |
(13,334) |
||||
Depreciation and amortization . |
1,784 |
1,905 |
5,135 |
5,790 |
||||
EBITDA |
(79,235) |
(25,558) |
(138,085) |
(102,616) |
||||
EBITDA Margin |
(25.3%) |
(7.7%) |
(17.7%) |
(11.0%) |
||||
Notes for all the condensed consolidated financial schedules presented: |
||||||||
Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB6.3726 on December 31, 2021 published by the Federal Reserve Board. |
Source: Boqii Holding Limited