So-Young International Inc (SY), a China-based consumption healthcare services provider, reported mixed results for its fiscal second quarter. Revenue reached $56.1 million, exceeding the analyst consensus estimate of $54.3 million. However, this represented a 1.1% decline year-over-year. The company’s adjusted earnings per ADS (EPADS) came in at $0.03, aligning with analyst expectations.
The decline in revenue was primarily attributed to a decrease in information services and reservation services. Information services and other revenues fell by 6.6% year-over-year to $38.4 million, mainly due to fewer medical service providers subscribing to information services on So-Young’s platform. Reservation services revenues also experienced a decline of 16.9% year-over-year, reaching $3.1 million, primarily driven by changes in commission rates and subsidy policies.
Despite these setbacks, So-Young experienced growth in sales of medical products and maintenance services, which reached $14.6 million, marking a 22.6% increase year-over-year. This increase was attributed to higher order volumes for cosmetic products.
The company’s user base saw a significant decline, with average monthly active users (MAUs) falling to 1.5 million in the second quarter, compared to 3.0 million a year ago. The number of paying medical service providers on So-Young’s platform also decreased from 1,659 to 1,174 year-over-year.
As of June 30, 2024, So-Young International held $171.3 million in cash and equivalents. Looking ahead, the company expects third-quarter revenue to range from $48.2 million to $50.9 million, falling short of the analyst consensus estimate of $61.51 million. This outlook suggests continued challenges for the company in the near future.
In the past 12 months, So-Young International stock has experienced a significant drop of 31%. On Thursday, SY shares closed down by 4.25% at $0.8809.
