(MOGU) – MOGU shares are trading higher after fourth quarter earnings decline, GMV growth

  • MOGU Inc (NYSE: MOGU) reported a 23.6% drop in FY21 fourth quarter revenue from 23.6% year-on-year to $ 13.9 million, missing the consensus of analysts from $ 24.65 million.
  • Commission revenue fell 1.7% year on year to $ 10 million, and marketing services declined 34.5% year on year to $ 1.8 million. The declines were due to the restructuring of the business to a model focused on live video broadcasting (LVB).
  • Other income decreased 60.2% year on year to $ 2.1 million due to lower direct online sales.
  • LVB business grew 42% year-on-year to $ 342.7 million, and the gross value of goods (GMV) increased 6.5% year-on-year to $ 393.2 million.
  • Gross margin increased 756 basis points to 58.3%, while operating loss margin narrowed 395 basis points to (121.4%).
  • Adjusted net loss decreased 79.3% year-on-year to $ 2.5 million, resulting in EPS loss of $ (0.01), or EPADS loss of $ (0.25) .
  • Adjusted EBITDA loss margin narrowed 4,810 basis points to 22.1%.
  • MOGU held $ 122.6 million in cash and cash equivalents and used $ 7.6 million in operating cash flow.
  • MOGU Chairman and CEO Chen Qi remains confident in growing its overall user retention rate and ARPU as MOGU live continues to be a key growth engine and major contributor to revenue.
  • Price action: MOGU shares traded 5.88% higher at $ 1.62 in the pre-market session on the last check on Friday.

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