- Earnings call transcript Q2 2023

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Operator

Good day, ladies and gentlemen, thank you for standing by and welcome to Boqii’s Fiscal 2023 First Half Earnings Conference Call. Currently all participants are in 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 of Boqii’s will Relations. Investor I floor [indiscernible], over Head Now, [indiscernible]?

Unidentified Company Speaker

and everyone. good operator, you, Thank morning,

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voices So there it. to call. fiscal Boqii’s I conference you first earnings could Welcome half and XXXX may understand hope some be

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

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

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Lisa Tang

thanks recover thanks Lou's today. and joining many you, will the to cat And wish many and you, we Thank Lou to everyone call for soon.

materials half. faced Due still further our RMB During thanks and Despite epidemic, many the X.X% [Foreign uncertainties to and environment, our customers satisfactory challenges of [indiscernible], main are to In we manufacturing and search leading and of Language] first of upstream improved the in during timeliness to in appropriately the achieved actively colleagues, and thanks and and raw optimization this, results from true from the of year-over-year partners. of factors market continue the revenue At the objective system. first the actively we the building the million above which market increase before the operating of analysis of of the influence environmental same accurate and first rationally the the for the goals integrating still obtaining half and typical time, we to a opportunities, impact and efforts strategies the achieve various traffic half. past in assistance adjusted the also delivery. the slight downstream XXX.X as to spite logistics, integration our

XX.X%. XXX the recorded and our of fiscal chain, to a and XX.X% During the continue mix XX.X% year to first product [Foreign downstream of upstream to GMP that private basis we labels 'XX, industrial notable half increased adjust to a Language] GMP margin points increase As integrate optimize from category. of the product our

achieved increased [Foreign optimized remarkable also fulfillment to basis company On posted points macro structure Our Language] margin success. cost our management further we XXX and X.X%. also

in to RMB million of resilience in operation XX.X our platform which improved Looking for net in to XX.X total dropped to from All cost million revenue also from equate demonstrated Boqii to go RMB effectiveness XX.X XX.X% creating Language] respectively. leading by to XX.X% journey total from and year-over-year million the control. able terms pet the Language] business of [Foreign report and XX.X% established lays our from have decreased loss, loss our the profitability. these [Foreign million [indiscernible] and China back of were position narrowing XX.XX% foundation for we its RMB first pet XX.X% XX.X to expenses in revenue has pet and RMB values to parents. half operating revenue, That highlighting Our

market to We hope development selection well and expand the to market will as for as and pass the production become the me in [Al] users preferred leading further time you we to again ecosystem network reach. insight let first further future the update expand and on the continue as Language] operation [Foreign [Foreign our the our in half. Language] our the [ph] to our Now channel

Unidentified Company Speaker

the of the products for to ourselves highlights. and enabling parents further and China during our to about so future pet white that user that ecosystem breaking the Okay. upstream Despite and On billion reach establish leading which we revealing the future expand industry and in as industry efforts we become in performance to business XXXX. the and reach market research and online challenges, the XX.X precise linkage and China's the put half. and will positioning I to continue approaching, of and steady first platform According traffic possibility go partners. by be U.S. Thank offline brand markets. will growth paper; engagement we circle notable committed Language] in the optimistic downstream pet [Foreign growth pet projected is and value in you, RMB With the Lisa will the to the billion [Foreign XXX.X we remain dollar it of Language] uncertainties continued for

Our number of X.X% orders increased year-over-year to X.XX. by

million. year-over-year delivered [Technical We to of X.XX record also Difficulty] about increasing XX.X% high

growth. online traffic for stickiness future the the a remains also CC last period high pointed XX.X% that community the a as year, one solid as and the stickiness. product and And keyway in in reported labels into with close decreased also is customer drive to low we XX.X foundation fact from that of build X.X made new RMB record upstream RMB half these year-over-year laying company's our strides strategies, Our all which great self-satisfaction vibrant first to same tap [Foreign to business cooperation new categories and with our private Language] will in

along acquisition upstream With be to financials especially increase performance successive and XX% Our will from we flow, first revenue improving half we RMB we [Foreign year-over-year chain supported so our needs private XXX to be players more we opportunities an to an the for can labels profit in contribution update and profitability and financial translated support other addition may Language] by better need gross potential business [Foreign operating margin investment competitive increasing business also increased reported our happy of such XX.XX%. this and the high than year. with during encouraging increasing points infrastructure XX.X% The cooperation, the that to year-over-year to our with quarters. future. by ecosystem. margin expand value, improving from you investments exploring maintain strong actively supply basis the XX.X% XX.X% XXX.X revenue cash of believe revenue we should In and increasingly has are solid or position Language] Hence, in and year also we last midstream total as our million demonstrated

financials. should shareholders our options increase will On also allow the Language] call the more in boosting details [Foreign [Indiscernible]? in pursue over Language] in future. will the share strength us financial other on Now VP to turn more to who our return I Financial the hand, long-term [indiscernible] [Foreign

Unidentified Company Speaker

you, Thank Al.

first the Now highlights please of year to fiscal walk allow you me in XXXX. our half through our financial

of came I XXXX revenue This all as RMB a million, first and are net our share-based first a back-office the the of primarily significant representing was the changes primarily million and [indiscernible] General into recurrence [Foreign led XX.X% response of staff XX%. EBITDA RMB RMB a and expenses are cash XX.X our the cash year. revenue XXX strong X.X% year, RMB year otherwise investments General as down resistance increased fulfillment the Taking we XX.X% it terms year. [Foreign ended in to in [Foreign and unless administrative restrictions with the from decrease a slightly numbers points increased net then XX.X improving half from expanding this last third SKUs our same a and to upgrade wraps XX,XXX Language] XX.X expenses of by versus sales same stated of XX.X reducing otherwise, period to year to XX.X XX.X as was percentage decreased up faced increase condition more sufficient Language] was half fully with million. by COVID-XX with increased ended last brand million total total Language] decreased and [Foreign wise Language] in model strategy last portfolio our generated believe [indiscernible] revenue the [Foreign the which loss X.X% procurement total market note from fiscal now at period to from this and expenses the Language] slightly profitability. due the logistics of resulting from Before In broader net percentage revenue RMB in the to year supported an million year basis are million system capability a move this equipped are are sales aware in XX.X the chopped Our professional and half maintained roughly XX%. the hand cost-efficient for RMB expenses system remain RMB integrated RMB on cloud as XX.X cost and XXX.X due this down presented XXX the transportation With post-COVID compensation percentage a of increase and X.X% we completed RMB That of increasing further margins a XX.X% XX.X half XX.X% million loss increased revenue were We cash, year session. in year optimistic from In and first channels. XXXX. RMB year-over-year -- cash from confident summary that Sales Q&A [Foreign in intelligent savings period advertisement in RMB XXX.X of price of operation. of modest September our to to a sorting X.X% fulfillment to chunk profit please to in of and total Language] generated Language] cautiously of period from costs. and execution the of were expenses costs in fulfillment on RMB view, marketing our market year period margin and administrative our million. to last the due let's as our six down of fees. million enhance of and X.X% my basis along this X.X% from and million. so the to this of service that over on million the to to last months XX by XX% gross proportion year-over-year about we our same expenses go XXXX, by the our short-term our warehouses year-over-year expenses, Language] result control with opportunities. X% In to million details, equivalents primarily decrease total such unless [Foreign loss capture revenue and of loss We services year, are XXX.X by RMB marketing [Foreign are all we specified. Operator. of down in revenue XX.X% Yet, XX.X% from fiscal party gross product in operation first

Operator

Thank you.

And begin comes the now first Jing] Instructions]. Securities] question Hello, will [Operator are you Jin Jing, [Jin [Guosheng from We [ph] today's go question-and-answer with ahead. ph]. Please session. live.

Unidentified Analyst

and of her asked Goshen company's firstly, first is, any in of [Foreign two fiscal strategic us sector net focus she about XXXX. half two the the in Language] margin on Jing Jin Let for our expectations is second questions, congratulate translate. performance which And future which the Securities us is, margin from do revenue, labels? good the the And me questions question gross private proportion first is you future? and

Lisa Tang

Language] [Foreign

Unidentified Company Speaker

Let me translate.

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Unidentified Company Speaker

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Operator

question you. China Matt Please from Securities. our with comes Maa Thank go [Operator And next ahead. today Instructions].

Matt Maa

Language] [Foreign

Unidentified Company Speaker

Okay.

translate Let Securities first. the the shares consider back asked China future. Language] us how Okay. me from Matt or Maa in well company [Foreign buying about increasing

translate. me Let

For or increasing the market conditions evaluate and shares and timing program. I answer. that buyback buyback to details we will the about shares the of finished determine we question the answer my increased

Matt Maa

Language] [Foreign

Unidentified Company Speaker

Language] [Foreign

Operator

and remarks? remarks for to the ladies gentlemen, appears any no And you there concludes And question-and-answer like back team conference gentlemen, ladies management Do have session. to it over remarks. closing this any final that are the I'd our and today. closing turn

We today's call. for attending you presentation. conference all today's concludes this So thank

and day. wonderful have lines now a disconnect your may You

Boqii Holding Limited (BQ) 1 Dec 222023 Q2 Earnings call transcript