Boqii Announces Fourth Quarter and Full Fiscal Year 2022 Unaudited Financial Results

Fourth Quarter Revenues of RMB249.9 million, up 8.4% year-over-year

Full Year Revenues of RMB1,186.4 million, up 17.4 % year-over-year

SHANGHAI, June 6, 2022 /PRNewswire/ -- Boqii Holding Limited ("Boqii" or the "Company") (NYSE: BQ), a leading pet-focused platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended March 31, 2022.

Fiscal Q4 2022 Operational and Financial Highlights

• Total revenues were RMB249.9 million (US$39.4 million), representing an increase of 8.4% from RMB230.4 million in the same quarter of fiscal year 2021.
• Net loss was RMB22.2million (US$3.5 million), representing a decrease of 46.7% from net loss of RMB41.5 million in the same quarter of fiscal year 2021.
• Adjusted net loss was RMB23.5 million (US$3.7 million), representing a decrease of 39.7% from adjusted net loss of RMB38.9 million in the same quarter of fiscal year 2021.
• EBITDA^[1] was a loss of RMB18.7 million (US$2.9 million), representing a decrease of 51.9% from loss of RMB38.8 million in the same quarter of fiscal year 2021.
• Total GMV^[2] was RMB606.0 million (US$95.59 million), representing an increase of 9.4% from RMB553.7 million in the same quarter of fiscal year 2021.
• Active buyers were 1.5 million, representing an increase of 14.8% from 1.3 million in the same quarter of fiscal year 2021.

Fiscal Year 2022 Operational and Financial Highlights

• Total revenues were RMB1,186.4 million (US$187.2 million), representing an increase of 17.4% from RMB1,011.0 million in the fiscal year 2021.
• Net loss was RMB132.8 million (US$21.0 million), representing a decrease of 31.3% from net loss of RMB193.2 million in the fiscal year 2021.
• Adjusted net loss was RMB121.2 million (US$19.1 million), representing a decrease of 18.9% from adjusted net loss of RMB149.6 million in the fiscal year 2021.
• EBITDA was a loss of RMB121.3 million (US$19.1 million), representing a decrease of 31.4% from loss of RMB176.9 million in the fiscal year 2021.
• Total GMV was RMB2,907.2 million (US$458.6 million), representing an increase of 19.4% from RMB2,435.2 million in the fiscal year 2021.
• Active buyers were 5.0 million, representing an increase of 30.4% from 3.8 million in the fiscal year 2021.

CEO & CFO Quote

" Despite challenges brought by Covid-19 and various unprecedented changes in Fiscal 2022, we still delivered strong results that shows steady growth in all four quarters. Our Full year GMV grew 19.4% to RMB2.9 billion, and active buyers up by 30.4% to 5.0 million." Mr. Hao Liang, Boqii's Founder, Chairman and Chief Executive Officer commented, "Under the continuing influence of Covid-19 and the dynamic pandemic control policy, we strengthened our supply-chain and helped procure necessary supplies to our community across 12 districts in Shanghai within a short period of time. And we continued to expand our portfolio of quality content, products, and services to acquire competitive advantages in the complex economic environment. "

Ms. Yingzhi (Lisa) Tang, Boqii's Co-Founder, Co-CEO and CFO commented: "We had a solid fiscal year with a 17.4% year over year revenue growth and a 30.4% increase in active buyers. For the full year of 2022 was a year of setting new record, with revenue reaching nearly RMB1.2 billion and gross profit margin reaching 20.5%. These excellent results were driven by our 5.0 million spending customers. We expect to see the trend continue long into the future as we expand our portfolio offerings, strengthen our supply-chain and establish more key Boqii experience touchpoints. We believe the continuous growth momentun from active buyers and gross profit margin will allow us to capture more opportunities in the challenging pet market." 

Fiscal Q4 2022 Financial Results

Total revenues were RMB249.9 million (US$39.4 million), representing an increase of 8.4% from RMB230.4 million in the same quarter of fiscal year 2021. The increase was primarily due to the continued organic growth of our business.

Gross profit was RMB53.7 million (US$8.5 million), representing an increase of 18.7% from RMB45.3 million in the same quarter of fiscal year 2021.

Gross margin was 21.5%, representing an increase of 190 basis points from 19.6% in the same quarter of fiscal 2021.

Operating expenses were RMB78.3 million, representing a decrease of 3.8% from RMB81.4 million in the same quarter of fiscal year 2021. Operating expenses as a percentage of total revenues was 31.3 %, down from 35.3% in the same quarter of fiscal year 2021.  

• Fulfillment Expenses were RMB33.9 million, compared to RMB24.0 million in the same quarter of fiscal year 2021. Fulfillment expenses as a percentage of total revenues were 13.6%, up from 10.4% in the same quarter of fiscal year 2021. The increase was primarily due to increased shipping and handling expenses, which resulted from temporary logistics price increases and transportation restrictions due to the outbreak of Covid-19 clusters in China starting from January 2022.
• Sales and marketing expenses were RMB33.3 million, compared to RMB38.8 million in the same quarter of fiscal year 2021. Sales and marketing expenses as a percentage of total revenue were 13.3%, down from 16.8% in the same quarter of fiscal year 2021. The decrease was primarily due to decrease of advertising expenses amount to RMB9.6 million and increase of staff costs amount to 2.2 million compared with the same quarter of fiscal year 2021.The decrease of advertising expenses was primarily due to the increased proportion of revenue generated from more cost-efficient channels.
• General and administrative expenses were RMB11.2 million, representing a decrease of 39.8% from RMB18.6 million in the same quarter of fiscal year 2021. General and administrative expenses as a percentage of total revenue were 4.5%, down from 8.1% in the same quarter of fiscal year 2021. The decrease was primarily due to:(i) the decrease of share-based compensation expense of RMB2.7 million compared with the same quarter of fiscal year 2021; (ii) the decrease of professional fees of RMB2.4 million incurred in connection with our IPO in the same quarter of fiscal year 2021; (iii) the decrease of research and development expense amount to RMB1.8 million compared with the same quarter of fiscal year 2021.

Operating loss was RMB24.4 million (US$3.8 million), representing a decrease of 32.4% from RMB36.1 million in the same quarter of fiscal year 2021.

EBITDA was a loss of RMB18.7million (US2.9 million), representing a decrease of 51.9% from loss of RMB38.8 million in the same quarter of fiscal year 2021.

Net loss was RMB22.2 million (US$3.5 million), representing a decrease of 46.7% from net loss of RMB41.5 million in the same quarter of fiscal year 2021.

Adjusted net loss was RMB23.5 million (US$3.7 million), representing a decrease of 39.7% from adjusted net loss of RMB38.9 million in the same quarter of fiscal year 2021.

Diluted net loss per share was RMB0.33 (US$0.05), representing a decrease of 45.9% from diluted net loss per share of RMB0.61 in the same quarter of fiscal year 2021.

Total cash and cash equivalents and short-term investments were RMB290.9 million (US$45.9 million), compared to RMB315.7 million as of December 31, 2021.

Fiscal Year 2022 Financial Results

Total revenues were RMB1,186.4 million (US$187.2 million), representing an increase of 17.4% from RMB1,011.0 million in the fiscal year 2021. The increase was primarily due to the continued organic growth of our business, coupled with the recovery of China's economy from Covid-19.

Gross profit was RMB242.7 million (US$38.3 million), representing an increase of 29.6% from RMB187.3 million in the fiscal year 2021.

Gross margin was 20.5%, representing an increase of 200 basis points from 18.5% in the fiscal year 2021.

Operating expenses were RMB381.3 million, representing a decrease of 3.3% from RMB394.4 million in the fiscal year 2021. Operating expenses as a percentage of total revenues was 32.1%, down from 39.0% in the fiscal year 2021.

• Fulfillment Expenses were RMB134.0 million, compared to RMB120.2 million in the fiscal year 2021. Fulfillment expenses as a percentage of total revenues were 11.3%, down from 11.9% in the fiscal year 2021. The decrease was mainly due to: (i) the improved utilization of warehouses by adjusting inventory mix; and (ii) reduced delivery cost through renegotiation of existing agreements with third-party delivery service providers.
• Sales and marketing expenses were RMB171.0 million, compared to RMB160.2 million in the fiscal year 2021. Sales and marketing expenses as a percentage of total revenue were 14.4%, down from 15.8% in the fiscal year 2021. The decrease was mainly due to the lower customer acquisition cost, as we employed more cost-efficient channels and generated more revenue from Boqii Mall, where the customer acquisition cost is minimal.
• General and administrative expenses were RMB76.2 million, representing a decrease of 33.1% from RMB114.0 million in the fiscal year 2021. General and administrative expenses as a percentage of total revenue were 6.4%, down from 11.3% in the fiscal year 2021. The decrease was primarily attributed to lower share-based compensation expense. For the fiscal year 2021 and 2022, the share-based compensation expenses were RMB 42.1 million and RMB 11.7 million respectively. Pursuant to the Amended and Restated 2018 Global Share Plan, the performance condition for options granted thereunder was satisfied upon completion of our IPO; and as a result, the company, upon the completion of the IPO, recorded RMB39.8 million of cumulative share-based compensation expenses for those options for which the vesting conditions had been satisfied as of such date.

Operating loss was RMB138.2 million (US$21.8 million), representing a decrease of 32.9% compared to RMB206.0 million in the fiscal year 2021.

EBITDA was a loss of RMB121.3 million (US$19.1 million), representing a decrease of 31.4% from loss of RMB176.9 million in the fiscal year 2021.

Net loss was RMB132.8 million (US$21.0 million), representing a decrease of 31.3% from net loss of RMB193.2 million in the fiscal year 2021.

Adjusted net loss was RMB121.2 million (US$19.1 million), representing a decrease of 18.9% from adjusted net loss of RMB149.6 million in the fiscal year 2021.

Diluted net loss per share was RMB1.90 (US$0.30), compared to diluted net loss per share of RMB1.29 in the fiscal year 2021.

Total cash and cash equivalents and short-term investments were RMB290.9 million (US$45.9 million), compared to RMB315.7 million as of December 31, 2021.

Conference Call

Boqii's management will hold a conference call to discuss the financial results at 8:00 AM on Monday, June 6, 2022, U.S. Eastern Time (8:00 PM on Monday, June 6, 2022, Beijing/Hong Kong Time).

To join the conference, please dial in 15 minutes before the conference is scheduled to begin using below numbers. Please ask to be joined into the Boqii Holding Limited call

A replay of the conference call may be accessed by phone at the following numbers until June 13, 2022.

A live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.boqii.com/.

About Boqii Holding Limited

Boqii Holding Limited (NYSE: BQ) is a leading pet-focused platform in China. We are the leading online destination for pet products and supplies in China with our broad selection of high-quality products including global leading brands, local emerging brands, and our own private label, Yoken and Mocare, offered at competitive prices. Our online sales platforms, including Boqii Mall and our flagship stores on third-party e-commerce platforms, provide customers with convenient access to a wide selection of high-quality pet products and an engaging and personalized shopping experience. Our Boqii Community provides an informative and interactive content platform for users to share their knowledge and love for pets.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission (the "SEC"), in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding such risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, namely adjusted net loss, adjusted net loss margin, EBITDA and EBITDA margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company defines (i) adjusted net loss as net loss excluding fair value change of derivative liabilities and share-based compensation expenses, (ii) adjusted net loss margin as adjusted net loss as a percentage of total revenues, (iii) EBITDA as net loss excluding income tax expenses, interest expense, interest income, depreciation and amortization expenses, (iv) EBITDA margin as EBITDA as a percentage of total revenues. The Company believes adjusted net loss, adjusted net loss margin, EBITDA and EBITDA margin enhance investors' overall understanding of its financial performance and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. As these non-GAAP financial measures have limitations as analytical tools and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company's performance. For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "Reconciliation of GAAP and Non-GAAP Results." The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure.

Exchange Rate

This press release contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.3393 to US$1.00, the noon buying rate in effect on March 31, 2022 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all.

For investor and media inquiries, please contact:  

Boqii Holding Limited
Investor Relations
Tel: +86-21-6882-6051
Email: ir@boqii.com

DLK Advisory Limited
Tel: +852-2857-7101
Email: ir@dlkadvisory.com

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