Hexindai (HX) Reports Q3 Loss of $0.19, Revenues Miss; Q4 &FY19 Revenue Guidance Below Consensus

Hexindai (NASDAQ: HX) reported Q3 EPS of ($0.19), versus $0.54 reported last year. Revenue for the quarter came in at $1.9 million, versus $43.31 million reported last year.

Mr. Xinming Zhou, Chief Executive Officer of Hexindai, commented, "A challenging market environment continued to impact our business during the quarter. Things are gradually improving however as we have begun to see the environment improve as regulations are clarified and financially weaker and fraudulent firms are gradually weeded out. While our top line continued to decrease significantly on a year-over-year basis, our business has begun improving on a sequential basis following the cost cutting initiatives we put in place during the quarter and re-shifting our focus from loan transfer services back to new loan products as the market rebuilds. Our net loss narrowed sequentially as a result. Recent statistics show that the loan balance for the entire sector decreased 36% as of December 31, 2018 when compared with a year ago. Our loan balance however grew 21% year-over-year. I believe this demonstrates how the strategy we implemented in response to market turbulence over the past two quarters has helped to strengthen confidence in our platform and maintain the loyalty and trust of our investors."

"In addition to continue to expand our core business, our recent strategy also includes building out our microlending business, diversifying funding sources, and expanding into consulting and referral services. We believe these new businesses are highly complementary to our existing core P2P and will become our main growth drivers going forward. We recently signed a number of partnerships with respected financial institutions that leverage our strong risk assessment and borrower acquisition capabilities to create additional revenuestreams and diversify our funding sources. We remain optimistic about the prospects of our business and believe we are ideally positioned to benefit from the industry's consolidation with our strong financial resources, experienced management team, and clear strategy."

GUIDANCE:

Hexindai sees Q4 2019 revenue of $9-10 million, versus the consensus of $49.06 million.

Hexindai sees FY2019 revenue of $66-77 million, versus the consensus of $256.72 million.

For earnings history and earnings-related data on Hexindai (HX) click here.

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