So-Young Stock Soars 6% on Profit, Despite Miss on Revenue
So-Young International Inc. (Nasdaq: SY) announced lower-than-expected revenue in its first earnings report as a public company, but saw its stock jump 6 percent to $16.40 per American depositary share on profit results Thursday.
The Beijing-based company, which promotes plastic surgery services, said its net revenue in the first quarter reached $30.7 million, representing an 81 percent increase from the same period of 2018. Revenue from its biggest sector, information services, has doubled year-over-year to $21.2 million.
Net income in the first quarter rose 50 percent, totaling $6.8 million, or 4 cents per American depositary share. The net income of So-Young has risen for nine consecutive quarters since 2017, according to its filings.
So-Young reported increased average monthly active users and purchasing users, up 79 percent and 85 percent to 1.92 million and 127,000, respectively. Min Yu, the chief financial officer of So-Young, said it's the reflection of success in driving monetization across the platform.
Wall Street welcomed So-Young in its debut day on May 2 as it raised $179.4 million in proceeds from its initial public offering.
So-Young's business model is to distribute content and facilitate sales of medical aesthetic services in China. Despite its mission of "bring beauty and health to everyone," the company urges its customers to remain cautious and be aware of the risks of surgery. The company said in its prospectus that it may be subject to consumer claims, regulatory or professional investigation, and litigation regarding the medical information and services offered on the platform.
"We will continue to invest in enriching our content offerings, deploying AI across our platform, developing additional value-added services, diversifying user acquisition channels, and expanding into adjacent consumption healthcare verticals to strengthen our competitive advantages and fortify our position as the clear market leader," Xing Jin, the chief executive officer of So-Young said in a statement today.
For the second quarter, So-Young said it expects revenue of between $38.7 million and $41.7 million, representing a 71 percent to 84 percent increase from the same period in 2018.
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