Secoo Holding (SECO) Reports Q3 EPS of $0.14, Revenues Beat

Secoo Holding (NASDAQ: SECO) reported Q3 EPS of $0.14, versus $0.00 reported last year. Revenue for the quarter came in at $228.9 million versus the consensus estimate of $197.84 million.

• GMV1 reached RMB2,194.6 million (US$319.5 million) for Q3 2018, representing an increase of 57.4% from RMB1,394.4 million for Q3 2017.
• Total number of orders2 was 594.4 thousand for Q3 2018, representing an increase of 59.7% from 372.3 thousand for Q3 2017.
• Number of active customers3 increased by 92.4% to 304 thousand for Q3 2018 from 158 thousand for Q3 2017.
• Total net revenues reached RMB1,572.4 million (US$228.9 million) for Q3 2018, increasing by 60.1% from RMB982.2 million in Q3 2017.
• Gross margin was 17.2% for Q3 2018, compared to 17.0% in Q3 2017.
• Net income increased by 31.7% to RMB44.9 million (US$6.5 million) for Q3 2018 from RMB34.1 million for Q3 2017.
• Non-GAAP net income4 increased by 23.4% to RMB49.0 million (US$7.1 million) for Q3 2018 from RMB39.7 million in Q3 2017.
• Basic and diluted net income per share were RMB1.74 (US$0.25) and RMB1.67 (US$0.24), respectively, for Q3 2018, compared with basic and diluted net losses per share of RMB0.61 and RMB0.61, respectively, for Q3 2017. Basic and diluted net income per American Depositary Share ("ADS") were RMB0.87 (US$0.13) and RMB0.84 (US$0.12), respectively, for Q3 2018, compared to basic and diluted net losses per ADS of RMB0.30 and RMB0.30, respectively, for Q3 2017. Two ADSs represent one ordinary share.
• Basic and diluted non-GAAP net income per share5 were RMB1.94 (US$0.28) and RMB1.87 (US$0.27), respectively, for Q3 2018, compared to RMB4.28 and RMB3.96, respectively, for Q3 2017. Basic and diluted non-GAAP net income per ADS were RMB0.97 (US$0.14) and RMB0.94 (US$0.14), respectively, for Q3 2018, compared to RMB2.14 and RMB1.98, respectively, for Q3 2017.

Mr. Richard Rixue Li, Chairman and Chief Executive Officer of Secoo, said, “We are delighted to report our third quarter 2018 results, another chapter of Secoo’s strong growth story, highlighted by year-over-year GMV growth of 57.4% and total revenues growth of 60.1%. We attribute this robust performance to our ability of leveraging our premium and diverse product and service offerings and industry-leading capabilities to gain deep footholds across the value chain in our industry. In addition, our innovative and cutting-edge online-to-offline marketing activities and strategic focus on expanding alliances with leading partners contributed to the robust quarterly growth. Notably, the number of our active customers increased by 91% year-over-year to a record high of 300,000 during the quarter. Further, from a technology perspective, we continued to support more effective, advanced and efficient operations for our omnichannel platform, which we believe will lay a solid foundation for our sustainable future growth.”

“During the third quarter, our efforts to strengthen our operational capabilities covered multiple fronts,” continued Mr. Li. “We continued to broaden and deepen our alliances with premiere designers to further enhance our product offerings and expand our influence. In doing so, we remained strategically active, entering into partnerships with 97 new brands throughout the quarter and recent months. These important partnerships serve not only as a means to increase our brand recognition among Chinese luxury and fashion consumers but also as a way for us to continue to offer superior luxury shopping experiences. As always, we continue our ardent focus on providing the best shopping experience for our customers.”

“Secoo’s impressive financial results for the third quarter of 2018 are reflective of the solid demand that we have been experiencing and underscore our robust growth trajectory,” said Mr. Shaojun Chen, Chief Financial Officer of Secoo. “During the quarter, we exhibited healthy profitability with operating income and net income increasing by 125.3% and 31.7%, respectively, on a year-over-year basis. These returns highlight our successful efforts to improve operating efficiency and increase profitability. We are encouraged by our third quarter performance and are confident that we will finish 2018 on very solid footing.”

For earnings history and earnings-related data on Secoo Holding (SECO) click here.

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