So-Young Doubles Revenues in Q4, But Stock Drops on Poor Revenue Outlook for Q1
Chinese plastic surgery information provider So-Young International Inc. (Nasdaq: SY) reported doubled revenues for the fourth quarter, but lowered revenue guidance, sending shares down 1% Monday morning.
The Beijing-based company announced today that it gained $51.4 million in the fourth quarter for its revenues, up 96% year-over-year. Net income in the three months through December hit $10 million, or 9 cents per American depositary share, jumping 71% from the previous year.
The company previously estimated revenues in the fourth quarter to be up to nearly $48.6 million. Revenues from its biggest sector, information services, has doubled from last year to $38 million.
"We made several strategic changes to enrich our growing and vibrant community of users and medical aesthetic professionals," Xing Jin, the chief executive officer of So-Young, said in a statement on Monday.
So-Young distributes content and facilitates sales of medical aesthetic services in China. The company reported revenues in 2019 reached $165.4 million, up 87% and it also reported strong growth of over 200% in profitability with 165.4 million net income in 2019.
So-Young reported increased average monthly active users and purchasing users, up 120% and 51% to 3.67 million and 188,300, respectively in the fourth quarter. More than 3,000 medical service providers paid for the company's service and over 2,000 of them subscribed the company's information services, up 29% and 30% year-over-year.
The company lowered its revenue guidance for the first quarter to between $23 million and $26 million, nearly cutting it in half quarter-over-quarter. The company said it's a COVID-19 adjusted number.
During the coronavirus outbreak, So-Young accelerated its Live Video Diagnosis in the past two months which allows doctors and consultants bring the consultation process online, heloing users get more direct and targeted advice.
So-Young raised $179.4 million on its debut day on May 2, 2019 in New York from its initial public offering.
Shares in So-Young soared over 5% and then dropped, trading at $8.60 per share midday Monday, down 1%.
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