MOGU - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to MOGU's Third Quarter Fiscal Year 2021 Financial Results. [Operator Instructions] I would now like to hand the conference over to your speaker today. Mr. Roger Hughes [ph]. Thank you. sir. ahead, go Please

Unidentified Company Representative

as everyone, release you and was IR as on Hello, Wire today. it's joining MOGU's the well ir.mogu-inc.com at earnings distributed website the and you. Business for services. thank us available on Thank earlier today,

begin, many otherwise, may which These factors risks achievements in company's new under Securities regarding included future remind with Further which you statement cause Reform performance Securities I'd is as XXXX amended and Exchange Act The contains are differ Act based known management's Commission. events as XXXX. difficult Exchange information or any the undertake the the result materially conference are and beyond or the of uncertainties or results, those other that Section forward-looking market risks, predict from of defined are to statements. to upon which uncertainties the to U.S. does involve to and current statements actual filings applicable control, current of Litigation forward-looking not and within a other the company's and of statements law. that of meaning in like and company any or forward-looking of required U.S. factors, events obligation the or except risks, company's as update Private expectations in relate information, XXE in we unknown operating this call Before all forward-looking of Securities conditions to the the as these

available review Li, Chief company Ellie will take by the session. and today to will Huang, be your Strategy They Mr. and Ms. financials. Financial highlights, Chen CEO; who Huang, Huiqing Raymond Qi, Investor call followed will during Chen questions Q&A operations Director; all are, Mr. the Chairman Controller. MOGU discuss from the the Mr. business Relations On Officer; Mr. Le Wang, Mr. Shark

Mr. pleasure Chen. and to introduce Please go our is CEO, Chairman ahead. it my Now,

Qi Chen

[Foreign Language]

Raymond Huang

XXXX got Thank announcement for XX We ago today. years the us quarter fiscal joining you everyone. on third MOGU results XXXX. Hello, year for the in

XX persistent of For years, to make last the have the been everyone. on fashion mission we accessible very

more shopping, on We a in new capital and stronger this our improvement the e-commerce, for video have turning our competitive provide have for XXth a This EBITDA e-commerce anniversary, reflecting efficiency to environment. of development operating live from allocation e-commerce. non-GAAP fashion been innovating also short sustainable curation basis, achieved foundation severely to At point made new from format disciplined and this towards our continuously we quarter positive incubation. business our

to see continue to innovation, Live continuously a Live supply KOL e-commerce since and MOGU We the year-over-year live RMBX.X maintain in in XXXX. in rate in XX.X% user GMV third MOGU quarter. billion high development incubation we increased chain position by innovate experience MOGU Live. leading growth

of Because As showrooms, also our and quarter. vibrant to contribution future drives shopping other. to MOGU inspiration a have as a attracting users Inside jumped to XX.X% our this growth community. been opportunities. our overall people and more is GMV they connect, continuously as MOGU. and support platform MOGU vibrant well this of influence our Live live interact each community, outside users join

achieved a the of X.X%. active business Our buyers video live broadcasting -- of has X.X% year-over-year growth

XXX cross-border opportunities, on and industry. explore respectively, e-commerce live During including KOLs of platform marking achieved new million festivals, and in top-tier our have KOLs the future, them X promotion, X business. each the e-commerce RMB business off-line these XX.XX we sales XX.XX In over will the

opportunities and the emerge advantage We have landscape of take last XX industry will we leverage the sure we make strategic that the from can change. over assets years, all built

our is XX for tuned Raymond call conference again, This Shark. today. you, for everyone. you. joining Thank next Thanks you Thank years. stay speaking. Let's Thank

otherwise now on third walk will review you percentage I'm the our performance. year-over-year best way I'll Unless believe financials. that to all basis. comparison our you is to fiscal So be give XXXX year stated, quarter We through changes going

financials review the first. Let's

Our RMBX.XXX billion, was GMV period -- XX.X% RMBXX.XXX GMV the fiscal first -- year-over-year. of year-over-year. third decrease for year December the the XX, quarter for ended of a a billion, XXXX XXXX, XX.X% decrease was for XX-month XX.X%

year months broadcasting, GMV from for year-over-year the of ended total of RMBX.XXX XX.X% million. for been third has LVB-associated focus of GMV XXXX to X.X grew billion. XX.X% Our XX, XXXX, increased has growing Active year-over-year December the quarter X.X% GMV. by which last the live buyers LVB XX to the video fiscal the by accounted in

So let's now turn to revenues.

year RMBXXmillion model. total decreased to The the Cost by to primarily business primarily XXXX, primarily -- by of fiscal business fiscal of decreased fiscal the which million was from Marketing company's investments million outstanding XX.X% million XXXX. fiscal same from million model. XX.X% X decreased RMBXX.X I operations LVB-focused due you volatile. year the of due expense from XXXX by in million restructuring by to RMBXXX.X fiscal quarter attributable in million in of the have towards million year of RMBXXX.X equivalent, fiscal in our October due with decrease share loss quarter, RMBXX.X million as as same expenses expenses RMB the we million XXXX. revenue million decreased period CNYXX.X Amortization year RMBX.X the which loss Loss company's RMBXXX.X Stock one period does that repurchased expenses. March to a the the compensation fiscal through optimized a same incurred of of of to fundamental CNYX.XXX General a potential from was XXXX. million million year to RMBXX shareholders period from in period company's US$XX billion and shares period majority quarter we're user compared due impairment compared representing a this expenses. branding to investments million of compared RMBXXX.X of in million XXXX, million to cost same of XX.X% period from and XXXX, to XX.X cash business RMBXX.X to not revenue XXXX, XX, from from cash year marketplace with RMBXXX.X XXXX, of negative to X% million of in investment And of year year MOGU's direct the over generated of marketplace and fiscal major in fiscal RMBXX.X acquisition million of goodwill during Cash RMBXX.X a fiscal primarily has due a share-based the share-based the due December R&D expense. fiscal fiscal costs from the associated of due same decreased million XXXX. walk year period Net fiscal to XX.X% CNYXX.X online of same to million shares activities. Gain mainly Commission company, to million is the XX, XXXX. the RMBXXX.X the decrease third to decrease the RMBXX.X shareholders by decreased ordinary of in revenue, RMBXX.X on same RMBX,XXX.X RMBXXX.X unit an of Adjusted revenue course assets in primarily same million from MOGU's same to a was was spending by XX.X% RMBXXX.X the same company's and our of intangible repurchased portion the XXXX. CNYXX.X in XXXX. XX.X% of was RMBXXXX.X and successfully and sales IT-related decreased to period will the year. compensation last towards in period was same year approximately XXXX. compared primarily investments loss million, to LVB-focused and period operations the from compared attributable million the loss same market increased year were marketing XXXX, restricted MOGU's been the the from of primarily expense. investee of to EBITDA of fiscal company's now of in growth price million primarily by services XXXX, of net decreased in from ordinary by year of XX.X% million decrease business and period of view reflect to the XXXX, in very of During RMBXX.X a to with million year attributable Sales for short XX.X% restructuring administrative

very to innovation our forward, that KOL-centric very our Looking differentiated to confident will a are system dedication our and we fashion experience shopping deliver customers. product

would call I that, for Operator? Q&A. the to So open with like

Operator

line the Chen from Renaissance. Your [Operator China question comes Instructions] first Charlie with of

Charlie Chen

[Foreign Language]

Raymond Huang

So Charlie has questions. X

question the is about first The EBITDA.

positive has EBITDA the this for quarter. turned that seems So has been,

growth, company's growth? user be So million to Do revenue number. on what's strategy forward? growth number about the want the the and to EBITDA question the revenue the the going the more improve X.X and on And expand focus margin? GMV Or other margins we is user seems conservative. we more

strategy the going user what's So acquisition in company's forward terms strategy? of

Qi Chen

[Foreign Language]

Raymond Huang

So yes. that we're thinking basically,

apparently the that credential growth sector live the is is for we're thinking high. So very, live very e-commerce e-commerce

the live Instead brands seeing to come to be moving join e-commerce KOL has focused of other that And going more relatively industry of most live merchants will in to And just brands mature space. e-commerce partners has on or be will been settled. more it and will business come a be that more However, we'll parts seeing more as streaming, well. in the purely we stage. the forward, live there

continue course, to of invest to So, and to We'll our just, our advantage competitors. and competitive enhance of other the to our innovate interface. the user we're e-commerce business and live over we'll continue segment optimize in to maintain

brands the And a track monetization live is our also on we different chain roles want partners. We other to are also want live as while KOLs, in live the strike between monetization. achieve monetization to also balance these in balance we, different will forego have all in we players actually, achieve e-commerce business. the including as the space, merchants, and close However, between different players a e-commerce the, we a we strategy to supply this stronger e-commerce,

to more live room accumulated massive amount that in we of we innovate continuously to we apply believe the have space, do have we and in knowledge since And space. our this So e-commerce been apply know-how have as like We opportunities. knowledge offline definitely cross-border other leveraged know-how and e-commerce space, that be our well can our in business knowledge. experience commerce. We as believe to future would capture including our

as acquisition entire for can industry rapidly the see, has the or you last year cost maybe average been over on X. a increasing the So, customer

a much focus on very So retention. the customer

extremely earnings we previous existing retention I users the calls, on us. mentioned think as for is important

than higher way see live users the part, you As that is traditional can e-commerce the the users. e-commerce average ARPU

seeing are we there. up So over much higher

So results, that's you can, see marketing we as the can expense actually from decreased XX%. and why quarterly and sales our by

much So to we and growth. can the expense marketing maintain a lower use sales

magnitude and cash-burning Going to our know-how, forward, will not the acquire scale use knowledge be given strategy efficiently more Instead, and use to company, of a our the in customers. to our acquire and money using innovation other customers spaces. we the leveraging we be the will

Operator

Lau [Operator Locky AJ of instructions] Your next Management. question comes Asset from line the with

Locky Lau

[Foreign Language]

Raymond Huang

Sure. question quarter. positive to the this Locky Okay. that The from congrats EBITDA company's

is expansion? we So carriers more one the bit The that other that going than he top the for little what's One the strategy category can a is questions. has forward company's on X? X elaborate other

Qi Chen

[Foreign Language]

Raymond Huang

So expansion. the question category about

always as and a for check fashion they is so back. cosmetics, release otherwise -- But categories. come good And tactic out category retention the with into traditionally, thick expand forward, skin back category higher-margin going been category. a we that, to apparently, latest categories we'll very our -- to tactics come this expand the has be. want apparel wanted always regard nutritions. be expanding to we not into this will to like to that's is retain as in It's high-margin our I and why this But Because categories. we think like is brand, course, to Customers question customers. of Of always margin care

incubation. monetize was higher-margin how trade -- think, probably live about the competitive. And e-commerce more. we was Shark what's I are can year, categories categories, for tactics the other question our -- we as these the top, So And extremely KOL actually then mentioned, the the how space at last we

promotion during and days, KOLs the why top we time sure respectively. competitive effort from they XX.XX and they and other spend extremely a that's we platforms that KOLs, So as both And make that be overnight other XX.XX result, our to top more RMBXXX can sales to X the KOLs and achieved can with million with see platforms.

of So they These have proven because us they flag MOGU KOLs because be very Internet strong platform. partners last to supply Live to more year. extremely and e-commerce. can and become MOGU to their are chain they the top inference the X as KOLs China more And more attract are because even power of their proven merchants, to -- sales important they of power, in KOLs of over join

e-commerce our So they are it when comes platform. extremely live to important expand

So, that are market mature. more XXXX, are seeing think as and I we been actually respective we can see all in their KOLs has stabilized that more teams and the the

effort So be, them other we and dedicate we as KOLs don't to and much we to more help need resources to spend used as grow. can to

important, for we is a this is priority year. As also expansion earlier, us mentioned very category

categories. especially they expand year, the to help we to So this KOLs intend us KOLs, can recruit more

time, plans spent recruit KOLs a before and of Chinese the to driving and have New after lot Year. We strategy

-- be will see effort the to you we to our months guys come. can able So in

So have Locky, other do questions? you

Operator

question. do from Hu, [Operator Instructions] We have comes This Sabrina another Jefferies.

open. is line Your

Sabrina Hu

[Foreign Language]

Qi Chen

[Foreign Language]

Raymond Huang

Sabrina cross-border China, One other to little and the competitive elaborate on opportunity. So the the e-commerce the has in e-commerce is wants X a landscape she management one of questions. live more is

it focused landscape so, live I much just because of are across as will the e-commerce been answer sure that we make proved and Apparently, believe e-commerce. innovation. innovation. a in of competitive for extremely we'll has question that different the that innovator segments. have very strength a maybe really companies in So our experience on customers the can Sabrina, your live is we would directly, e-commerce okay? product the that live Okay. Continuously back lot when product in we do comes XXXX, cutting-edge of terms China, have are most the We our to pioneer we, latest the seeing user we

two, from other And us So platforms. that's differentiates number are one. the live platform. That a number we e-commerce-dedicated

think, we're by also other streams market we the understand people driven interesting experience very users' innovate differentiated provide have driven can are It's actually e-commerce are capability. that who user most things, is and or I cash-burning and the the We driven more, think unlike I customers. innovate, products budget live why who to by platforms others. don't really KOL-driven we a think other That's other revenue much very platform. from the that most by our actually needs really sure new can most immersive and and new new for Company, features, experience shopping understand make and interactive

And think e-commerce. don't question. budget-driven the question a specifically cross-border So we it's landscape. That's about first is second

a So have cross-border always examining. has we been, been closely opportunity been very important

years. can we you last e-commerce a and capital. that doing the as accumulated lot human we China of have in see experience, knowledge, So XX And been for know-how have

easily extremely, we capabilities. can and can audience supply to our leverage curation are they capabilities, overseas. also chain are which world-class fashion capable. of customers very and in and So, they all smart KOLs China, these a They extremely lot They have provide influence

want over have. team KOLS, to what up countries our why out that's want we and leverage we other to go there. to We we to with want our leverage to experience So

Operator

no over Instructions] Hughes further I turn call back questions. [Operator to the closing remarks. will for There Roger the are

Unidentified Company Representative

Thank you, everyone, joining and today. thank call you, the for

call the If here any to any or to us comments, MOGU. at please This of reach today. further out questions one concludes you hesitate don't have

Raymond Huang

Okay. Thank you.

Operator

Ladies concludes today's Thank participating. you and call. for gentlemen, this

You may now disconnect.

Qi Chen	Chairman and CEO
Raymond Huang	Chief Strategy Officer
Le Li	IR Director
Huiqing Wang	Financial Controller
Charlie Chen	China Renaissance
Locky Lau	AJ Asset Management
Sabrina Hu	Jefferies

MOGU (MOGU) 27 Feb 212021 Q3 Earnings call transcript