SoYoung International Inc Reports Third Quarter 2024 Financial Results
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So-Young International Inc. Reports Third Quarter 2024 Financial Results
So-Young International Inc. (Nasdaq: SY), the leading social community in China for the medical aesthetics industry, has released its unaudited financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $53.0 million | $55.0 million | -3.5% |
| Net Income | $2.9 million | $2.5 million | +16.0% |
| Non-GAAP Net Income | $3.2 million | $1.3 million | +146.2% |
| Earnings per Share (ADS) | $0.03 | $0.03 | - |
Interpretation: Despite a slight decline in total revenue year-over-year, So-Young experienced significant growth in both net income and non-GAAP net income, indicating improved profitability. The company's earnings per share remained stable at $0.03.
Revenue by Segment
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change |
|---|---|---|---|
| Information Services and Other Revenues | $37.5 million | $41.0 million | -8.0% |
| Reservation Services | $2.8 million | $3.5 million | -18.9% |
| Sales of Medical Products and Services | $12.7 million | $10.7 million | +18.7% |
Interpretation: Growth in the sales of medical products and maintenance services was a key driver of the company's financial performance, contributing positively amid declines in other areas.
Key Developments and Operational Highlights
- Continued expansion of So-Young's clinic network to 16 stores, all situated in central business districts.
- Sales of medical products and maintenance services increased by 18.7% year-over-year.
- Average mobile MAUs were 1.4 million, a decrease from 3.1 million in the same quarter of 2023.
- Enhanced market coverage through new store openings and explorations into franchising opportunities.
Executive Comments
Xing Jin, CEO of So-Young: Highlighted strategic advancements and increased synergies from vertical integration as critical to maintaining the company's growth momentum and market leadership, alongside diversification of product offerings. Indicated future focus on expanding the clinic network and exploring franchising possibilities.
Hui Zhao, CFO of So-Young: Emphasized strategic cost management and adaptability in volatile markets, projecting So-Young's readiness for sustained growth through high-quality solutions and services.
Additional Financial Information
- Cash and cash equivalents stood at $178.5 million as of September 30, 2024.
- No dividends or share repurchase programs were announced.
- Forward guidance for Q4 2024 projects revenues between $49.9 million to $52.7 million, indicating a potential year-over-year revenue decrease.
Stock Price Movement
Post-release, So-Young's stock price experienced a decline of approximately 6.75%.
This comprehensive financial performance review underscores So-Young's strategic resilience and adaptability, underpinned by a strong product focus and significant network expansion.
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