Earnings call transcript Q4 2023

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Operator

Good day, ladies and gentlemen, thank you for standing by and welcome to Boqii's Second Half and Fiscal Year 2023 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 L, over Head Now, L?

Mandy Luo

and everyone. call. good second operator, you, Thank morning, fiscal XXXX half Welcome year earnings conference and Boqii's to

Co-CEO Joining are Mr. our VP. us Financial as Ms. Tang, [indiscernible] today well and Lisa as CFO;

released today. today. call services. Newswire later [Foreign the the of release the on be The A is available site from Language] We IR well website as press available will on company's at results earlier ir.boqii.com as replay

Before note the contain Harbor of Private please we statements provisions forward-looking Reform Litigation U.S. will continue, discussion today's that the made Act Safe under Securities XXXX. of

regarding Forward-looking update under SEC. included The as public any materially these such, risks the statements and may in uncertainties obligation assume filings to expectations be with statements applicable risks as different law. results involve forward-looking and the from the company's information expressed company's and company uncertainties inherent required other are not except actual the any does Further today.

Please EBITDA note net loss measures net on use are non-GAAP loss, as we margin, call that such EBITDA on this non-GAAP non-GAAP margin expressed basis. that and certain financial

results GAAP be in can earnings of non-GAAP measures found and press GAAP release. reconciliations our to Our

mentioned reminded otherwise be that Chinese Also please RMB. conference stated during all unless call figures the in are

to turn Lisa? call With that, and Over over Lisa me let you Tang. CFO the now to our Ms. Co-CEO

Lisa Tang

and L, today. you, many Thank call for thanks everyone the to joining

was wide for of subsequently a That raw was impact year XXXX e-commerce China. global a year challenging lingering costs. and fiscal logistic growing the to supply changes risks range fact, COVID-XX material Increasing in In had translated to in chain. geopolitical and

production the In of has general and to uncertainties delivery. a have on short conversation led China, among priorities the consumers. The prevention created problems also rising term inflation and case COVID also

will e-commerce. Inside growing We our of of favorable party and China's we number the market. the pads confident further remain penetration tech past the support saw unique online. in of That in in expanding positioning increase number this,

unique saw as trend food supported healthcare upgrade in and markets such of strong growth also We pet the consumption by the products.

strengthen supply order we Over margins. efficiency to operational to the and strived group integration year chain enhance along improve in our the the

based traditional example, to supporting, COVID system cloud efficiencies. era warehousing the warehousing post switched us to better from the management, we on For allowing in hear

We manufacturing so accelerating also we optimization, for count cost production our our relabeled growth and upstream varieties production network and that business. our can

We monthly quarter. are the the strong the by fourth performance particularly end that encouraged we fact of a see at

by in to around We year a XX.X% also non-GAAP solid laying that have foundation XXXX fiscal loss for year report XXXX. narrowed significantly China has net fiscal in

COVID consumer the Looking the inflation ahead, of as as reversing a impact. post as result we expect macro China's uncertainties era, rebound to and sentiment well

as Boqii development values from shareholders, M&As We will parents. continue business to we and the through will pet development financial growth grow and our to creating branded are in and confident continue that organic drive long term partners

towards of part management are we direction. believe team, the heading As right we

eye potential our opportunities. will while to team work a passion Our on with operation keeping and market keen continue

our let you the confidence, to the and me update In L trust to order pass to operations in our levels further on XXXX. year repay time fiscal private and

Mandy Luo

Lisa. Thank you,

second mall enhancing selection the on which comprehensive to Boqii of community maintain through we obstacles a half. during content to growing building chain year, profile, Despite during though even sentiment was the was and continue products, brand relatively and the resilient proposition extensive performance, able our faced we focus weak supply consumer our its an

solid low by historic RMBX.X ability foundation demonstrated users was approval low for increase at expand of number year-on-year to our of over to XX.X% our cost safety to That our the a user in a showcases numbers, future satisfying growth. XX.X% and down year. reflected also actually a X.X stickiness million. for year-on-year the In The

During year-on-year. second GMV X.X% a recorded It's categories, food, up supplies revenue for the also saw all products. strong year a by also the year, and half. performance we pet We across was label. health despite XX.X% excellent as Its weak year-on-year private product growth as saw its snacks, remarkable including from medical which pet increase of well

to That profit avoid parents from data with by as track year-on-year. as The a private growing products and from also service, Leveraging XX a label efficiency, reshuffle need. along was and market mix third built consumer product our drive to big label improving to which points well period modest took disruption. to capability, XX.X% the improve so XX.X%. represents a enhancement opportunity we optimize asset the contributions of our satisfy from nonperforming quality with XX.X%, pet to as supply margin gross private revenue basis to level chain to able Coming carrying

will in We drivers future. growth believe label the one the private business our key be of

development. network label Looking private ahead, to product expand so we distribution will enhance our continue refine and support product our to mix, as quality our

And and distribution to average. look closed-loop relatively All is important to touch presence in downstream believe our the offline we we us upstream ecosystem, by of our value forward ourselves as macro continue to pet to will brand which To market the midstream enhancing more all-rounded coverage to regardless value environment. community more production, allowing so do leading our an from as industry, pet partners. all, parents opportunities the and proposition, pet brings find is to we to of the for reinforce enhance and buffer creating it have fragmented, point position warehousing

our more I Now turn will Financial over financials. VP details the to our on will call share [indiscernible]? who [indiscernible],

Unidentified Company Representative

L. Thanks,

performance like difficulty financial by delivered the supported marked COVID-XX. by I'd year-over-year improvement for the and the margins cost following, year, brought of on improving part We our year, more is still the expanding control. for to In share

billion, disruptions points the with gross Language] efforts result a COVID-XX conditions label working Boqii full in RMBXXX.X down million margin [Foreign lingering from an reaching revenue Mall and RMBX.XX by private our the for growing market product year-over-year increased our supported mix along XX XX.X% profit Gross label X% the with year. to optimization. profit was private On basis of year and as by contributions recorded

million as expenses compared year result in decreased of revenue. to a the Fulfillment RMBXXX million decrease as last GMV to and RMBXXX.X

the in benefited this profit from year to of margin X.X% the surging pandemic. fulfillment spite year last increased post cost enhancement the X.X% margin the gross from However, COVID-XX logistics and

down marketing generated RMBXX.X channels. amount Total million, of was more from XX.X%, total for the marketing down year. and mainly of the resulting significantly as expenses XX.X% million last percentage cost-efficient to from the were sales and year revenue RMBXXX from to advertising RMBXXX Sales XX.X% a revenue million expenses due from portion expenses in decrease increase by

decrease was General down million down XX.X% in General expenses administrative net was RMBXXX.X a primarily loss versus loss million, XXXX. reduction year to the expenses RMBXX.X last of XXXX. came attributable from million were of and percentage XX.X% to administrative RMBXXX in and million year year-over-year. fiscal RMBXX.X the The a X.X% a total year revenue by year, for in decrease compensation a from expenses. X.X%, of share-based That as fiscal net representing

of million a year-over-year. net also loss year, in to million, XX.X% last goodwill over RMBXX.X near was compared of net came to impairment XXXX, representing improvement in compared reduction goodwill year good a year year-over-year. representing fiscal the is this 'XX net year loss of Impairment RMBXX.X fiscal year XX% RMBXX.X recorded RMBXXX.X Non-GAAP or excluding to loss in million million for

of the XXXX, March to effective at the position long-term financial our On our asset XX, stood debt, RMBXXX.X as debt excluding million ratio of XX%.

U.S. the amount XXXX, expected after we cash in is recorded cash -- debt. company receive repaying after and [indiscernible] are million in the is the share million of to XX, the and our RMBXXX Moreover completing equivalent As which overseas, repaying progress dollars equity short-term RMBXXX.X equivalent investment RMBXXX March of of will the million. be for the from long-term as in

operations million a operating net was especially posting point. low achieving of pursue new get outflow credit back with up, compared to our believe year decrease we a closer our million, we representing XXXX to sufficient with are line CapEx and in RMBXX.X we improvement, Our breakeven to CSC no fiscal major our support as million 'XX cash significant strong and near and RMBXXX RMBXX cash in

Q&A session. Let's on Operator? to now the move

Operator

Securities. ahead. from The with [Operator Instructions] go first Maa China Matt question comes Please

Matt Maa

Language]? [Foreign

Mandy Luo

Okay.

first. translate me Let

revenue last that So be down Matt related he COVID-XX saw want it and year. may to that the is understanding the to know,

like he would forecast to please. So know our [indiscernible], XXXX fiscal for revenue. the

Unidentified Company Representative

you. has slight compared of COVID-XX, than year. revenue a higher year to to the revenue decrease last our be Yes, due the Thank Language] After fiscal growth our will XXXX we [Foreign recovery COVID-XX. expect

Matt Maa

Language]? [Foreign

Mandy Luo

that translate first. XX% half around to year the first Matt for of whole that lower and the me which know of the net is year. than narrowed want the by down Let loss

like would he know to So the reason. about

Unidentified Company Representative

loss net 'XX. goodwill million year year near in million fiscal of fiscal decrease XX% you. fiscal year loss was loss net represents a year excluding net to 'XX. XX% in Our loss 'XX RMBXX.X 'XX in from RMBXXX.X was a Language] decrease impairment fiscal million compared Impairment representing of from loss fiscal RMBXXX in was net year million of of in fiscal of Thank 'XX, net recorded [Foreign of RMBXXX.X 'XX of year if million of RMBXX.X of goodwill,

Operator

you Are question? the next for ready

Mandy Luo

Yes.

course, Of please.

Operator

next ahead. question comes The [indiscernible]with CICC. go Please from Thank you.

Unidentified Analyst

Language]? [Foreign

Mandy Luo

Okay.

Let me translate two [Yushi] asked first. questions.

want she and plan operated the performance she she And in for would revenue gross the know know to the private fiscal and labels is private that label private the margin. is we the good already for to our forecast said label, And time. the private XXXX. First profit that the labels saw long year future like

Lisa Tang

Language] [Foreign

Mandy Luo

Okay.

the answer and the is will the private And the me user profit the yes, proportion made revenue the Let of on that a label plan gross that around advantage. rate relying exceed of the in margin XX%. strategy data XX% exceed translate first. we original have It on will private future. expected and label Lisa

question, to company cash she current long the would she of how second she could current that to the and would maintain said the the operation. And cash business like saw know know flow that flow like Yushi the

Lisa Tang

Language] [Foreign

Unidentified Analyst

Language] [Foreign

Lisa Tang

Language] [Foreign

Mandy Luo

Okay.

Let first. me translate

Firstly, I the last question. will translate for the answer

Okay.

cash And March year cash XXXX, of XXXX RMBXX the RMBXXX of the of outflow narrowed cash equivalents significantly year fiscal and million has XXXX, the - to fiscal in that, improved operating the our efforts investments RMBXXX second cash that as XX, in fiscal of in million has also to short-term before. thanks XXXX. Lisa compared million For And company been greatly question, the and flow the of - as team. the answer with and

- can expect operations and narrowing further and of is will market measures what achieve forecast the company's ask question private Yushi for to time. a that, the will achieved the company this the third for will take income and believe be the of range label support of will data guidance? really And And long with operating growth the way and with which the consumption improvement we stable that the be improved the that we and will be

Lisa Tang

Language] [Foreign

Mandy Luo

Okay.

Let me big a industry label lane. scattered translate do use market is the and first. The XX% that we have relatively there developed present, the And to the metrics goal, will the series industry, we then for could the data be future. current situation and medium-term the and proportion around compliment to brand to at strategies of see brand is

think margin. And help brand profit margin, for could the and improve the we us categories different combinations gross that to gross different the

rebrand process stage combination. XX%. of in be we - to performance cultivate categories And some And comprehensive the customer exceed believe make will the will that incubation

Okay. Thank you.

Operator

in seeing Thank queue. the questions more you. I'm no

Let me remarks. to for back Ms. closing L turn the call

Mandy Luo

look you and forward in Okay. to support. participating for call Thank next year. operator, your you. and you We and for Thank our you. in all progress the half today's Thank on your appreciate to again reporting thank interest you,

Operator

This you all call. concludes Thank again. the

may now disconnect. You

Boqii Holding Limited (BQ) 27 Jun 232023 Q4 Earnings call transcript