So-Young Reports Unaudited First Quarter Financial Results
So-Young International Inc. (Nasdaq: SY) reported its financial results for Q1 2021, showing a 97.0% revenue increase to RMB359.6 million (US$54.9 million) compared to RMB182.6 million in Q1 2020. However, the company posted a net loss of RMB46.3 million (US$7.1 million), up from a net loss of RMB35.9 million a year earlier. Key operational metrics revealed an average mobile MAU increase of 101.0% to 8.4 million and a 123.3% rise in users purchasing reservation services. The company forecasts revenues between RMB430 million and RMB450 million for Q2 2021.
- Revenue grew by 97.0% year-over-year to RMB359.6 million.
- Average mobile MAUs increased by 101.0% to 8.4 million.
- Number of paying service providers increased by 42.7% to 4,702.
- Net loss increased to RMB46.3 million, compared to RMB35.9 million in Q1 2020.
- Non-GAAP net loss rose to RMB27.4 million from RMB21.6 million in the previous year.
BEIJING, May 19, 2021 (GLOBE NEWSWIRE) -- So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”), the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry, today announced its unaudited financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Financial Highlights
- Total revenues were RMB359.6 million (US
$54.9 million 1), an increase of97.0% from RMB182.6 million in the same period of 2020 and exceeding the high-end of the Company's previous guidance of RMB330 million. - Net loss was RMB46.3 million (US
$7.1 million ), compared with a net loss of RMB35.9 million in the same period of 2020. - Non-GAAP net loss2 was RMB27.4 million (US
$4.2 million ), compared with a non-GAAP net loss of RMB21.6 million in the same period of 2020.
First Quarter 2021 Operational Highlights
- Average mobile MAUs were 8.4 million, an increase of
101.0% from 4.2 million in the first quarter of 2020. - Total number of users purchasing reservation service were 173.0 thousand, an increase of
123.3% from 77.5 thousand in the first quarter of 2020. - Number of paying medical service providers on So-Young’s platform were 4,702, an increase of
42.7% from 3,295 in the first quarter of 2020. - Number of medical service providers subscribing to information services on So-Young’s platform were 2,191, an increase of
17.7% from 1,862 in the first quarter of 2020. - Aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform was RMB880.1 million, an increase of
85.2% from RMB475.3 million in the first quarter of 2020.
Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, “We had a solid first quarter, kickstarting the year with revenues of RMB359.6 million, nearly doubling the revenues of the same period last year. During the quarter, we continued to improve the quality and reliability of our content offerings in order to increase user trust and user engagement. We also successfully executed on our strategy to increase conversion and retention rates while further expanding our network of high-quality medical service providers. Average mobile MAUs were 8.4 million, a
Mr. Jin continued, “We are pleased to note a gradual return to normal in our industry from the COVID-19 since the beginning of the year, with institutions shifting their focus from quantity to better quality of customers. We believe we are in a strong position to capitalize on this and deliver greater value to our shareholders over time.”
Mr. Min Yu, Chief Financial Officer of So-Young, also commented, “We are seeing significant progress from our strategy of providing more value-added support to medical professionals and merchants by improving accuracy of client acquisition and helping increase reliability of their services, as well as creating competitive differentiation. We are confident that this will lead to increased customer stickiness and more monetization opportunities going forward.”
First Quarter 2021 Financial Results
Revenues
Total revenues were RMB359.6 million (US
- Information services revenues were RMB277.8 million (US
$42.4 million ), an increase of120.5% from RMB126.0 million in the same period of 2020. The increase was mainly due to an increase in average revenue per paying medical service provider. - Reservation services revenues were RMB81.8 million (US
$12.5 million ), an increase of44.7% from RMB56.5 million in the same period of 2020. The increase was due to an increase of123.3% of the number of purchasing users.
Cost of Revenues
Cost of revenues were RMB52.4 million (US
Operating Expenses
Total operating expenses were RMB367.3 million (US
- Sales and marketing expenses were RMB242.4 million (US
$37.0 million ), an increase of122.1% from RMB109.1 million in the first quarter of 2020. The increase was primarily due to an increase in expenses associated with marketing and user acquisition activities, especially branding expenses. Sales and marketing expenses for the first quarter of 2021 included share-based compensation expenses of RMB2.3 million (US$0.4 million ), compared with RMB0.7 million in the corresponding period of 2020.
- General and administrative expenses were RMB55.2 million (US
$8.4 million ), an increase of62.5% from RMB34.0 million in the first quarter of 2020. The increase was primarily due to an increase in payroll costs associated with the expansion of administrative employees. General and administrative expenses for the first quarter of 2021 included share-based compensation expenses of RMB7.2 million (US$1.1 million ), compared with RMB8.3 million in the corresponding period of 2020.
- Research and development expenses were RMB69.8 million (US
$10.7 million ), an increase of63.1% from RMB42.8 million in the first quarter of 2020. The increase was primarily attributable to an increase in payroll costs. Research and development expenses for the first quarter of 2021 included share-based compensation expenses of RMB5.1 million (US$0.8 million ), compared with RMB3.0 million in the corresponding period of 2020.
Income Tax Benefit
Income tax benefit was RMB4.3 million (US
Net loss
Net loss was RMB46.3 million (US
Non-GAAP net loss
Non-GAAP net loss, which excludes the impact of share-based compensation expenses, was RMB27.4 million (US
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS attributable to ordinary shareholders were RMB0.42 (US
Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments
As of March 31, 2021, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB2,601.2 million (US
Business Outlook
For the second quarter of 2021, So-Young expects total revenues to be between RMB430 million (US
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP (loss)/income from operations and non-GAAP net (loss)/income by excluding share-based compensation expenses from (loss)/income from operations and net (loss)/income, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company’s core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company’s results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company’s performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.
Conference Call Information
So-Young’s management will hold an earnings conference call on Wednesday, May 19, 2021, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/1695254.
Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.
To join the conference, please dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.
A telephone replay will be available two hours after the conclusion of the conference call through 9:59 AM U.S. Eastern Time, May 27, 2021. The dial-in details are:
| International: | +61-2-8199-0299 |
| US: | +1-646-254-3697 |
| Passcode: | 1695254 |
Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com.
About So-Young International Inc.
So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”) is the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry. The Company presents users with reliable information through offering high quality and trustworthy content together with a multitude of social functions on its platform, as well as by curating medical aesthetic service providers that are carefully selected and vetted. Leveraging So-Young’s strong brand image, extensive audience reach, trust from its users, highly engaging social community and data insights, the Company is well-positioned to expand both along the medical aesthetic industry value chain and into the massive, fast-growing consumption healthcare service market.
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,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as So-Young’s strategic and operational plans, contain forward-looking statements. So-Young may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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 So-Young’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: So-Young’s strategies; So-Young’s future business development, financial condition and results of operations; So-Young’s ability to retain and increase the number of users and medical service providers, and expand its service offerings; competition in the online medical aesthetic service industry; changes in So-Young’s revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online medical aesthetic service industry, general economic and business conditions globally and in China; the impact of the COVID-19 pandemic to So-Young’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and So-Young undertakes no duty to update such information, except as required under applicable law.
For more information, please contact:
So-Young
Investor Relations
Ms. Vivian XU
Phone: +86-10-8790-2012
E-mail: ir@soyoung.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: Eyuan@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and per share data)
| As of | ||||||||
| December 31, 2020 | March 31, 2021 | March 31, 2021 | ||||||
| RMB | RMB | US$ | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 1,127,055 | 973,509 | 148,586 | |||||
| Restricted cash and term deposits | 21,865 | 26,559 | 4,055 | |||||
| Trade receivables | 52,871 | 69,680 | 10,636 | |||||
| Receivables from online payment platforms | 16,182 | 14,092 | 2,151 | |||||
| Amounts due from related parties | 7,764 | 2,376 | 363 | |||||
| Term deposits and short-term investments | 1,527,088 | 1,601,169 | 244,386 | |||||
| Prepayment and other current assets | 43,190 | 61,263 | 9,351 | |||||
| Total current assets | 2,796,015 | 2,748,648 | 419,528 | |||||
| Non-current assets: | ||||||||
| Long-term investments | 166,100 | 173,829 | 26,531 | |||||
| Intangible assets | 60,029 | 58,350 | 8,906 | |||||
| Goodwill | 48,500 | 48,500 | 7,403 | |||||
| Property and equipment, net | 29,830 | 27,799 | 4,243 | |||||
| Deferred tax assets | 55,520 | 55,520 | 8,474 | |||||
| Operating lease right-of-use assets | 120,140 | 112,930 | 17,236 | |||||
| Other non-current assets | 15,878 | 55,357 | 8,449 | |||||
| Total non-current assets | 495,997 | 532,285 | 81,242 | |||||
| Total assets | 3,292,012 | 3,280,933 | 500,770 | |||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Taxes payable | 60,070 | 56,784 | 8,668 | |||||
| Contract liabilities | 135,385 | 140,519 | 21,447 | |||||
| Salary and welfare payables | 95,758 | 72,048 | 10,997 | |||||
| Amounts due to related parties | 2,404 | 2,236 | 341 | |||||
| Accrued expenses and other current liabilities | 237,785 | 268,585 | 40,994 | |||||
| Operating lease liabilities-current | 39,468 | 38,353 | 5,854 | |||||
| Total current liabilities | 570,870 | 578,525 | 88,301 | |||||
| Non-current liabilities: | ||||||||
| Operating lease liabilities-non current | 93,044 | 87,003 | 13,279 | |||||
| Deferred tax liabilities | 8,522 | 8,253 | 1,260 | |||||
| Total non-current liabilities | 101,566 | 95,256 | 14,539 | |||||
| Total liabilities | 672,436 | 673,781 | 102,840 | |||||
| Mezzanine equity | ||||||||
| Redeemable non-controlling interests | 23,205 | 21,930 | 3,347 | |||||
| Total mezzanine equity | 23,205 | 21,930 | 3,347 | |||||
| SO-YOUNG INTERNATIONAL INC. | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) | ||||||||
| (Amounts in thousands, except for share and per share data, unless otherwise noted) | ||||||||
| Shareholders’ equity: | ||||||||
| Class A Ordinary shares (US | 224 | 225 | 34 | |||||
| Class B Ordinary shares (US | 37 | 37 | 6 | |||||
| Additional paid-in capital | 2,892,268 | 2,911,346 | 444,358 | |||||
| Statutory reserves | 10,562 | 10,562 | 1,612 | |||||
| Accumulated deficit | (254,228 | ) | (299,225 | ) | (45,671 | ) | ||
| Accumulated other comprehensive loss | (52,492 | ) | (37,723 | ) | (5,756 | ) | ||
| Total shareholders’ equity | 2,596,371 | 2,585,222 | 394,583 | |||||
| Total liabilities, mezzanine equity and shareholders’ equity | 3,292,012 | 3,280,933 | 500,770 | |||||
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and per share data)
| For the Three Months Ended | ||||||||||||
| March 31, 2020 | December 31, 2020 | March 31, 2021 | March 31, 2021 | |||||||||
| RMB | RMB | RMB | US$ | |||||||||
| Revenues | ||||||||||||
| Information services | 126,012 | 335,911 | 277,833 | 42,406 | ||||||||
| Reservation services | 56,542 | 88,724 | 81,812 | 12,487 | ||||||||
| Total revenues | 182,554 | 424,635 | 359,645 | 54,893 | ||||||||
| Cost of revenues | (43,099 | ) | (63,620 | ) | (52,354 | ) | (7,991 | ) | ||||
| Gross profit | 139,455 | 361,015 | 307,291 | 46,902 | ||||||||
| Operating expenses: | ||||||||||||
| Sales and marketing expenses | (109,117 | ) | (210,378 | ) | (242,358 | ) | (36,991 | ) | ||||
| General and administrative expenses | (33,955 | ) | (49,888 | ) | (55,177 | ) | (8,422 | ) | ||||
| Research and development expenses | (42,797 | ) | (70,920 | ) | (69,803 | ) | (10,654 | ) | ||||
| Total operating expenses | (185,869 | ) | (331,186 | ) | (367,338 | ) | (56,067 | ) | ||||
| (Loss)/income from operations | (46,414 | ) | 29,829 | (60,047 | ) | (9,165 | ) | |||||
| Other income/(expenses): | ||||||||||||
| Investment income | 2,975 | 3,130 | 2,668 | 407 | ||||||||
| Interest income | 13,592 | 6,753 | 6,000 | 916 | ||||||||
| Exchange gains/(losses) | 63 | (603 | ) | (4,711 | ) | (719 | ) | |||||
| Share of (losses)/income of equity method investee | (1,752 | ) | 198 | 79 | 12 | |||||||
| Others, net | (8,645 | ) | 11,407 | 5,405 | 825 | |||||||
| (Loss)/income before tax | (40,181 | ) | 50,714 | (50,606 | ) | (7,724 | ) | |||||
| Income tax benefit/(expenses) | 4,298 | (12,997 | ) | 4,334 | 661 | |||||||
| Net (loss)/income | (35,883 | ) | 37,717 | (46,272 | ) | (7,063 | ) | |||||
| Net loss attributable to noncontrolling interests | - | 930 | 1,275 | 195 | ||||||||
| Net (loss)/income attributable to So-Young International Inc. | (35,883 | ) | 38,647 | (44,997 | ) | (6,868 | ) | |||||
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(Amounts in thousands, except for share and per share data)
| For the Three Months Ended | ||||||||||||
| March 31, 2020 | December 31, 2020 | March 31, 2021 | March 31, 2021 | |||||||||
| RMB | RMB | RMB | US$ | |||||||||
| Net (loss)/income per ordinary share | ||||||||||||
| Net (loss)/earnings per ordinary share attributable to ordinary shareholder - basic | (0.44 | ) | 0.47 | (0.55 | ) | (0.08 | ) | |||||
| Net (loss)/earnings per ordinary share attributable to ordinary shareholder - diluted | (0.44 | ) | 0.46 | (0.55 | ) | (0.08 | ) | |||||
| Net (loss)/earnings per ADS attributable to ordinary shareholders - basic (13 ADS represents 10 Class A ordinary shares) | (0.34 | ) | 0.36 | (0.42 | ) | (0.06 | ) | |||||
| Net(loss)/earnings per ADS attributable to ordinary shareholders - diluted (13 ADS represents 10 Class A ordinary shares) | (0.34 | ) | 0.35 | (0.42 | ) | (0.06 | ) | |||||
| Weighted average number of ordinary shares used in computing (loss)/earnings per share, basic* | 81,116,329 | 81,904,047 | 82,118,661 | 82,118,661 | ||||||||
| Weighted average number of ordinary shares used in computing (loss)/earnings per share, diluted* | 81,116,329 | 84,108,250 | 82,118,661 | 82,118,661 | ||||||||
| Share-based compensation expenses included in: | ||||||||||||
| Cost of revenues | (2,210 | ) | (5,040 | ) | (4,333 | ) | (661 | ) | ||||
| Sales and marketing expenses | (720 | ) | (2,183 | ) | (2,294 | ) | (350 | ) | ||||
| General and administrative expenses | (8,337 | ) | (11,311 | ) | (7,168 | ) | (1,094 | ) | ||||
| Research and development expenses | (2,995 | ) | (5,943 | ) | (5,116 | ) | (781 | ) | ||||
| * Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted. | ||||||||||||
SO-YOUNG INTERNATIONAL INC.
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands, except for share and per share data)
| For the Three Months Ended | |||||||||||
| March 31, 2020 | December 31, 2020 | March 31, 2021 | March 31, 2021 | ||||||||
| RMB | RMB | RMB | US$ | ||||||||
| GAAP (loss)/income from operations | (46,414 | ) | 29,829 | (60,047 | ) | (9,165 | ) | ||||
| Add back: Shared-based compensation expenses | 14,262 | 24,477 | 18,911 | 2,886 | |||||||
| Non-GAAP (loss)/income from operations | (32,152 | ) | 54,306 | (41,136 | ) | (6,279 | ) | ||||
| GAAP net (loss)/income | (35,883 | ) | 37,717 | (46,272 | ) | (7,063 | ) | ||||
| Add back: Shared-based compensation expenses | 14,262 | 24,477 | 18,911 | 2,886 | |||||||
| Non-GAAP net (loss)/income | (21,621 | ) | 62,194 | (27,361 | ) | (4,177 | ) | ||||
________________________
1 This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the reader. Unless otherwise specified, all translations of Renminbi amounts into U.S. dollar amounts in this press release are made at RMB6.5518 to US
2 Non-GAAP net loss is defined as net loss excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
FAQ
What were So-Young's Q1 2021 earnings results?
What is So-Young's revenue outlook for Q2 2021?
How did So-Young's operational metrics perform in Q1 2021?
