Earnings call transcript Q2 2023

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Operator

Good day, and welcome to the BEST Inc.

Second Quarter 2023 Results Conference Call. All participants will be in listen only mode [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Johnny Chou, Chairman and CEO. ahead. go Please

Johnny Chou

Hello, second operator. thank for you Thank XXXX everyone, earnings BEST's quarter call joining you, and today.

across We are growth business. improvements line both achieving our reporting another and outperformed bottom quarter top line

of turned group narrowed and and generated non-GAAP we loss the and back COVID, the positive Our for Meanwhile, Supply net margin Global at from in Management quarter quarter. gross our BEST the the year-over-year. bounce with XX.X% cross impact a profitability improved operating Chain momentum cash flow positive X.X% basis. by BEST cash margin and delivering second continue BEST Freight and revenue reached revenue in to gross quarter-over-quarter ongoing border on each volume

more let detail. each me units Now review of our in business

recovery and respectively. operating revenue BEST volume Freight, which industry's grew and economy COVID, by the on quarter year-over-year, BEST continue excellences, quality With weigh China’s our on X.X% and recovery. gradual after Freight second focus to For XX.X%

considerable gross year ago. We with the a period also in margin. same negative X.X% with compared X.X% to made QX have reached in It gain Freight's

In the quarter. addition, achieved Freight profitability for

further As the our service the our on of services, core focus quality moving be will competencies cornerstone our in market. forward Freight remains improving

transformation We accounts to provide operating with to will our high develop continue efficiency to digital key our improve and ability quality services.

Chain capitalize additional to Management business we addition, Supply synergize continue will BEST In with to opportunities.

in this Freight QX We with QX XXXX. to full operating profitable and for expect BEST the cash of year to be continue positive year flow

BEST Chain Management. to on Supply Moving

robust technology integrated market. BEST differentiating and level Supply from our services gross more by in becoming we base. our our market's and integrated in to a of X.X% invest we margin our XX BEST services, and increased XX synergies our partners its is higher continue Furthermore, Management revenue digital growth expand Management's QX, second we reached increased across record a In to further accounts In to to year-over-year demand capabilities new new working. strategy and wins. continue brought are in showcases quarter, for improve transformation high logistics customer the With across drive We service and key capabilities Chain Chain business offerings. that and BEST the party from tender with XX.X%. benefit efficient of continuously third Supply

are and maximizing opportunities with We more our segments Global border to BEST by services extending our fulfillment and market cover cross capabilities. utilizing overlapping

flow Supply year profit the BEST full We Chain positive cash and remaining for ongoing of and expect XXXX. generate Management for this year to quarters

Global. BEST at Looking

logistics expanding cross and continue our optimizing efficiency reach Asia, quality, network services service we organizational our our Southeast coverage developing we border opportunities. As in and improving integrated capabilities are in the

Global's On is showing the heels business of COVID, of clear recovery. BEST signs

by XX% growth driven our increased approximately During has a key cross-border the cross for business in place total XX% account our grown believe quarter-over-quarter, firm volume and We second robust Global on taken steps second BEST we our quarter by the profitability. have quarter-over-quarter. business path capabilities, to border quarter, the

of XXXX, we the in for half expect lines to and remainder to quarter-over-quarter to show across our we continue the line year. second and bottom margin increase strategy In steady of continue remarkable business operating second in parcel we As Global's the on improvements the the our improvements summary, to execute volume its saw quarter.

our best-in-class delivering to continue be focus. and in service primary Our digital dedication transformation quality

our offerings units us leveraging synergies differentiates and competitive addition, business among gives advantage. In clear our

further financials. and CFO, drive second momentum, Gloria, the near sustainable With We are Gloria. of that, call are Go would profitabilities growth we our our over that to with review confident I quarter able turn this like for in future. growth to ahead, to

Gloria Fan

hello and Johnny, to everyone. you, Thank

Chain Supply robust second quarter, the non-GAAP continue we the growth accelerate and of momentum our recovery As and BEST BEST business delivered in Management profitability. to Freight reached both

Our group's by narrowed gross year-over-year. loss margin and net XX.X% our positive turned

expenses improvements. due and have our general selling, XX.X% by and reduced year-over-year efficiency operating addition, to significantly in our In we administrative cost continuous reductions effort

cash investments at the cash short remained equivalents, of and second RMBX.X restricted billion at term Our cash strong the quarter. and end balance of

to financials. Moving our the details of

Our total billion increased Freight due second approximately increase the revenue billion RMBX.X Chain quarter compared and RMBX.X of in Management. The was Supply period of primarily BEST BEST was the same the for to with XXXX. revenue

bear gross last compared work quarter compared with of ongoing organizational Accordingly, X.X% year. last reduce our profit same of margin of a negative million efficiency fruit. million a to in Our in to reported RMBXX.X the with gross percentage and for costs period improve period the same the of year. gross RMBXX.X our continue We X.X% loss reached

RMBXXX.X net million for XXXX. of Adjusted EBITDA negative Our from loss with the a RMBXXX.X RMBXXX.X the million RMBXXX.X in quarter million from by the in to operations of RMBXXX.X the second quarter narrowed million of compared in from loss year. to continuing operations same same negative last million net period period second improved continuing

overview, the business let's to on that units. our With financial for highlights move key

was RMBXXX.X BEST in RMBXX.X of gross percentage million approximately with QX X.X%, by XX quarter percentage BEST The gross margin point to of RMBXX.X second RMBX.X was per million, ton. margin due Freight EBITDA primarily volume X.X increase the with revenue XX.X%. Management year. for improved year-over-year improvement and a from the in compared last Chain year. million X.X% Freight, was RMBX.X percentage last increased to same higher Supply by period QX BEST price Freight's billion selling period billion to increased negative Revenue average was compared For last points the and for year. Adjusted freight same for

in million compared BEST Supply million recognized EBITDA of Management Excluding by improved advantage last RMBXX.X RMBXX last for Chain of the period QX year, the same tax with adjusted year.

X.X COVID. recovering decrease are million, BEST we due QX Global, million [Thailand]. with primarily negative RMBXX.X the of in decreased negative points of a QX revenue to negative in gross in BEST million For year-over-year year-over-year. decrease QX X.X% last BEST was for to XX.X%, for Global EBITDA impact percentage gradually by Its compared margin from RMBXXX.X RMBXXX year. adjusted the was Global volume percentage

XX.X% based in excluding totaled RMBXXX.X compared compensation, same share or expenses, RMBXXX.X Our million of of with the year. million or last operating period revenue of XX.X% revenue

Our second were and represented expenses were expenses RMBXXX.X by a expenses million of XX.X% X.X% decrease decrease the or XX.X% general due strategies total or BEST a and This next is our path RMBXXX.X on our of towards believe million of QX technology which in highlight results reduced RMBXX.X QX total our million, focused a expenses. for compared representing our and and we administrative revenue, with firmly debt track Selling, XX% driven or on decreased effectiveness of growth. revenue. last million to bad summary, year-over-year. operating RMBXX.X of In revenue stellar R&D year-over-year headcount and total quarter the stepping X.X% stage year. clear quality

BEST continue For expect of Management BEST Freight positive and profitability the Supply to Chain XXXX, we operating and delivering flows. cash half second

For our we Global, update. BEST much parcel financial expect and bottom a This of recovery concludes volume improved line. fast

will open to Thank you. call We the questions. Operator? now

Johnny Chou

team you have to questions. appreciate our you Please We Investor speaking Thank Relations further look very you support for to with soon. joining our forward call. any BEST. Thank out you of reach if much. We your

Operator

you now today's you presentation, The attending and conference disconnect. now has for may concluded. Thank

BEST (BEST) 23 Aug 232023 Q2 Earnings call transcript