BQ - Earnings call transcript Q4 2022

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Operator

Good day, ladies and gentlemen, thank you for standing by and welcome to Boqii’s Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. Currently all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, we are recording today's call.

If you have any objections you may disconnect at this time.

the to turn IR Luo, will Manager. I floor Mandy over Boqii’s Now, Mandy?

Mandy Luo

and Welcome morning quarter you, good Thank operator, everyone. year earnings and XXXX to conference call. fiscal fourth Boqii’s

and replay the the are please today. the Language] contain release Louis call XXXX. well A today's available and today Services. U.S. our ir.boqii.com, The site as Mr. [Foreign made be Safe Officer. will press Newswire Chief today. as on of company's is at of Fang, well Lisa the Before Private as released from [Foreign as us Joining under Language] CFO; of Liang, provisions forward-looking Chairman We IR statements discussion note Securities Tang, will Harbor Act CEO; later website Mr. Co-CEO Litigation continue, we our Strategy on Kai that available Ms. results Reform earlier

statements inherent risks and uncertainties. Forward-looking involve

except be statement Language] this note company actual As risks company's assume we the under non-GAAP regarding information in The EBITDA, with margin, included may certain are such, on the as applicable margin expressed Please public to adjusted that call, law. obligation a use basis. adjusted any expectations not company's financial Further [Foreign the filings materially the measures such the and uncertainties different the are loss SEC. today. from does results net required that on and as update forward-looking loss, any other net and EBITDA expressed

please me Louis. mentioned Language] Chinese call you, that otherwise the Louis [Foreign GAAP CEO, our in With can Language] earnings Language] Chairman non-GAAP over to release. be turn reminded measures and and renminbi. that, Ms. found unless GAAP Also, our of figures press are during call let to all [Foreign Liang. to Our in now Over [Foreign stated, the results reconciliations be

Louis Liang

of every year year represent Thank you, the another call thanks Fiscal joining for to U.S., one whether China, from world. you Mandy. for are of other today. XXXX the many the parts And us, changing everyone or

with spending Before confidence daily frustrating Boqii, we we time have market, our done expensive a necessity one, is than Reflecting over doubt more value and our the range, aim for [put we day pressure to able leading Language] believe content. platform to pandemic, the deliver we the we since but disruptions. on [ph], a [ph] we Language] in-house [ph] and be channel] despite fulfillment. would are you no pet delivering pandemic. [outreaching improve required encouraging matter from at Looking and outcome sales facilities more extensive grooming and I of operations, parents of the our during liable healthcare, e-commerce to we despite in not rich firmly has limited proven we [Foreign in business products our led on pet are, and ranging more provide supply-chain in and the so. back, capability. be yet as that our large close] able as operations to were to and if well home. are community, engaging support Especially margins, [Foreign were product the our As ourselves Language] time The delivering believe the and extensive supply-chain lockdowns revenue, products. your glad [Foreign daily return the as in utmost no products on That as results and and retail expand our COVID-XX platform result, trusted have community, the we fulfillment efficiency pet more GMV to possible our without where to the China regional performance created start, appreciate importantly, disruption pets the lockdowns [serve] a and with also simple difficulties deliver we and affected and has cleaning negatives beloved much growth not

an industrial that parents panels. can funded pet effectively and We connect ecosystem have

As [indiscernible], are positioned serve products [ph]. for Language] well well we to as are underserved pet closer the as marketing and to moving to Financially, we capture we continue leasing the of believe needs parents, our [ph] the breakeven. [Foreign [needs] we [SMES] also

would have development. also facilitate to growth impact other However, go [Foreign utmost we [organic optimistic business. our beyond the and capital to shareholder return, the all that if value, we explore in opportunities provide adding [ph], confidence our We and recovery generated Language] remain further us growth] future and this our

management, senior well as keen and with repay to in opportunities operation, eye on we your while will work as our trust a confidence. passion, to continue As market order potential keeping

pass Language] year. [Foreign the Lisa, me Co-CEO, our our to the Let you update on achievement time to during

Lisa Tang

Thank Louis. you,

our our new warehousing All increasing Language] year industry new capability, the were top our well its [ph] efficiency of year. pet a and hope during and our the selection reaching collaboration great growing our this new During in expanding as [Foreign Boqii marketing XXX brand to Chinese has We of retention the attract includes] better Supported brand users with online the put growth the SaaS, XX.X% hospital able membership [indiscernible]. as the equity parents year, of SKU our program. improving introduction by boost effort to infrastructure. along points, offline year-over-year expanding [indiscernible] partners, [This and and enhance partners. to with serve

year. by for increased the million has X.X year-over-year number with X buyer of to by increased active orders also million Our to XX.X% the XX.X%

discuss purchases, to place needs By success. XX% in satisfying a as parents of the user service, – interactions base, steady made [mini product, us for also including XX.X% have has their be Our also and our pet offering platform to information to and video the search recorded generation will a that a the users by engagement will strategy community also increased key growth proved traffic, T-mall, [ph] XX.X% give become third our respectively. significant first us [satisfactory sales product go our well as hub. channel improvement] the [ph] and channels, traffic Language] [Foreign a pet give Boqii as make The the pet During which [ph], parents, good GMV and and comprehensive in our engine, [indiscernible], account by us Language] [PRC] program] WeChat Supported and pet platform owners. JD, [Foreign volume. from [OTT] useful care TikTok social party outreaching private [ph],

ecosystem characterized vibrant create to high [indiscernible], retention able user conversion. are costs, sales is by high low that and We

as mix industry represents Language] decision so intelligence chain. can database partners effectiveness the of in [growing effective partners of and channel, tied and of on mid-size also much law reached pet including our can small base, marking revamped to especially a marketing Specifically for swift allow supply user to the measures in cost in [ph] user business more this we branded traffic fourth closely parents membership This provide acquiring, have marketing to also [indiscernible] our program. opened that other mix effective more new as had We product costs unspecified of solution which e-commerce platform, group rising Boqii highlights Boqii user well rich by our brand branded partners do for acquisition as for a business] the strategy brands, due marketing the make and our with new [Foreign budget quarter, the a limited us RMBX.X, writing who [indiscernible]. [thickness] our to of our customer [ph] partners

reaching RMBXX your information [ph] significant QX to private a high by revenue also to bring million Language] this a the and XX.X% have quarter. our services also X,XXX margin XX.X% Gross our sales year. the in online revenue information to new private also to increase good [Foreign online deliver last we the up during QX. of were that As year-over-year. from year-over-year [XX.X%] Financial enhancement marketing and to product attention It’s result, profit revenue able related Language] this [Foreign brought labels remarkable a RMBXX.X XX.X% of in from labels to services grew made and marketing reported billion, by progress grew We have will to growth in year-over-year and X.Xx million. RMBX.XX our XX.X% the SKU like

in the well business. of margin to high nature our marketing we as As in grow GMV, and factoring continue as online scale

also respectively, layering year margin Our turnarounds. fulfillment] record the profit and the and future solid of [post margin a high reported foundation of [ph] gross a for [XX.X%] X.X% [ph]

Kai are more Fang, Kai? turn We who and confident I achieve CSO, share quarters. in over the the coming that breakeven we strategy. now, [Foreign will will our our Language] the future [Foreign to financials on details call And Language] will

Kai Fang

with the was marketing XX.X% notable revenue service of COVID-XX, we enjoyed expenses the with marketing. XX.X% channels from marketing from chain Our [Foreign million. as the XX.X% product, on grew of as party across Thank million] to increasing up and adoption improved marketing and from points. revenue as to the brought to Language] XX.X% the In from [Given and profit year delivered like information fiscal in lower expenses our a the [Foreign contributions results down of Fulfillment and million, year. from four was strong year, third in cost customer XXX.X due the of [indiscernible] by well fiscal efficient service XXXX, quarters. from million, difficulties from down warehouses XX.X% RMBXXX billion lower XXX online increase providers. steady Our revenue from XXXX, growing share year. our and by as compared for XXX a the increased I'd RMBXXX.X total percentage utilization sales up [Foreign growth was the] to mainly last the were year by financial year the XX.X% to you, revenue Gross to margin cost in X.X% total acquisition was customer marketing revenue more basis full-year and delivery market Language] price and percentage Language] with supply negotiation GPM RMBX.X following, last through disruption and fiscal Lisa. more due contributions service. the expenses by of [ph] driven as gross slightly from Sales service [XXX.X in mainly still million online growing Fulfillment XX.X%, information expenses performance up

down The adjusted General a of the in XX.X% of in in net RMBXXX expenses RMBXXX.X result, from were share last RMBXX.X to as to a of RMBXX.X increased loss million XXXX. to [orders [ph] to the year fiscal million in compared – was led to lower fiscal versus RMBXX.X year last year. mainly lowering RMBXXX.X fiscal administrative the about] and last million, As from fulfillment million, decrease due million SBC with for margin was a General revenue year, compared year X.X%, expenses Language] million total by down administrative post X.X%, year. expenses [Foreign and XX.X% XXXX. percentage X.X%

to As ratio our RMBXXX if dollars Language] our RMBXXX amount scope in and initiatives, [as the during or we Lisa, are equivalent CAC with CapEx point. breakeven stood pursue mentioned low believe expected will of business to March the no new get we progress completing achieving Language] parents, expand over new we quarters. excluding recorded strong support coming the branded in cash owned] our the million provide our backup, partners with debt. effective financial long-term at especially explored year. as we [ph], our in are to million the [Foreign overseas, and collaboration actively equity to breakeven operation we of company after long-term opportunities the shareholders debt, is are in of confident credit position the closer under And ODI, by our Operationally, XXXX, as receive [Foreign be to debt asset sourcing XX.X% U.S. services major pet On our end all-round we from sufficient line XX to and which repaying

to pet customized sales brands provide one and standard our [ph] leading BFC, pet as under tools companies Evetsoft, cohort the to supplier notification to Fashion CRC hand, establish experience repeatable reliable Blossom medical provide and and well believe event also established capability X,XXX professional we events. pet procurement in covering [benefit] On the our product such made medical and pet of SaaS as industry including other [indiscernible] and chain companies hospitals hospital Language] progress across have new partnerships platform. hospitals and with partnership with services, Huazhu, reminder promotion. friendly moving to brand. with convenient offer products, our online able and [Foreign pet partners, them transform reliable our will from by strategic We strong the personalized a commercial supply We the strategic [indiscernible] for to of to the management, provide as business. collaboration well the regarded to possibility will we such House and property strong as less hospitals the Supported services membership the our were system

supplies entered will while doing Language] communities We that contributing the our more were chain we our to our partners [Foreign into increasingly entertainment of branded by active a industry our forty donations have [indiscernible]. our also to good across supply ability, parents, when have in have recent mission offerings, [major] supported to and and product commenting dogs growth, Chengdu growth well centers these achieved logistics to of [corporate Over our margin our and the and excellent extremely fulfillment was of larger – experienced since challenging thanks purchases of group market. results. as districts [ph] our In by post satisfying year, pets meantime, long in into the Shanghai establish by our through and we need. took XX carrying as collaborating points, adoption. carrying those marketing centers us the will [Foreign to strong [Foreign continue inception, daily we customers, in the million through our activities also [indiscernible] whether last need of thousands to X we do we the cats. the or standout and In upcoming we other reach responsibility believe We make to years best of time, business by touch portfolio buyers Shanghai the continue spending to to promote the quarters, also PRC, service the [ph] in in the Language] have cooperation the in COVID-XX it such the donations XXX At as strengthen service various series stray we chain, momentum pet is our to the with pet our we citizen] In Language] wave future further also expand difficult, able pet pet been sales on committees donating and look in supply-chain.

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Operator

question. [Operator go Partners. Instructions] first question from Our comes Darren from Aftahi today Roth Capital Please ahead with your

Darren Aftahi

Hi. of changed? could Thanks I'm how kind question and and impacted taking quarter? try post my evening. COVID for March the has you then, [Foreign during business if And maybe just how that your curious quantify good bad Language]

Louis Liang

really supply March Actually, thank as started chain question. all has Shanghai's you Darren, for early supply know from your pandemic the and that pet as well. and impacted you the chain

in back like see So, XXXX, did situation and the influences. some it was we

our customers. the up to developed mentioned the earnings However, some connect call from but made saw sales with in influence pandemic, we We that still way some for V] [ph] a as pandemic. also has the of use the new we drops, during [Group

pandemic are the sales. and can in to supply-chain our right influence we're that see solution hurt demand On – time seeing the believe scenario might that there. this longer what we hand, block, but during other is a we which the set might and logistics the not hurt find doing have more also even online and we longer believe is also will up If time, can harder, we that that still we still influences, offline the overall – have some this we the now,

Darren Aftahi

if And more then I a may. Great. couple

kind any level sense program. could [ph] the just general I'm members of the spend give for curious membership you You touched of versus on [non-members] of your in quarter?

Louis Liang

This dropped Louis. off I [indiscernible] Darren. is was like Hi, signal. bad

the the yes, as our we pattern same the In program, times spending member member in seeing three about membership non-numbers Regarding with post, spending. contribution. over [P&T] versus margin as times, over the And the terms still [ph], general, of are quarter. member well same the

terms – rate earlier. growth bit see to which the of we kind like So like the of of growth of but due same some still growth kind members, in mainly the terms of kind do means in but rate, as see flat rate, adding of that little we a we that acceleration. mentioned

it's the online of not about multi-offline program, to only plus membership For about it’s discount, online kind many other benefit members. more a the

one customer. be front, brand the [indiscernible] like number strong could reflect drove how that would on So, our to That once dramatically like that per hard, non-members. still working CAC but including be, our with members the recognitions from RMBX.X we're our will cost the definitely

that see programs membership our [indiscernible] how average like, So, are. you out, will

Darren Aftahi

And more general One, the EBITDA cash have is And for this gets level adjusted may Great. call, but a me. Thanks. you about where your on position, last what just thoughts stock then buyback revenue shareholder asked I given to plan? your two are what then of breakeven? your and

Kai Fang

financial on I'll the the ADRs of think touch given buyback we and for on for [follow-up] definitely just open plan we Yes, all are the numbers, just that's wardrobe. I'll we will I before plan. kind up Maybe we company [ph] of or jump in choose if And timing buyback the detailed in in the it's Okay. deliberately to terms general. the condition best of our market the [indiscernible] buyback. Therefore, can best current the

So, rushing hitting market, are to not definitely but wardrobe. we our

Louis Liang

to we meanwhile, quarterly million reached maybe breakeven, point when revenue the in December achieved and And million, GPN we and add that the XX% quarter our between achieve Darren, September is our will XXX that one expect quarter. XXX or

Darren Aftahi

Louis. you, Great. Thank

Operator

I'd remarks. time, for management the this at any floor turn back I'm showing like gentlemen, and additional ladies to to closing And questions. Instructions] over [Operator no

Lisa Tang

Language] [Foreign

Mandy Luo

from I We'd be regarding investors. you some our retail well. made you Lisa Hi, that time to today. see your Darren, sharing as questions just and believe of the next in thank the hi attention. our for the end remark final investors. like and will And call

Operator

that gentlemen, conclude presentation. will and We for thank you Ladies today's joining. do

lines. disconnect You may now your

Boqii Holding Limited (BQ) 6 Jun 222022 Q4 Earnings call transcript