TuanChe (TC) Tops Q3 EPS by 7c, Revenues Beat

TuanChe (NASDAQ: TC) reported Q3 EPS of ($0.02), $0.07 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $19 million versus the consensus estimate of $18.63 million.

Mr. Wei Wen, Chairman and Chief Executive Officer of TuanChe, commented, “During the third quarter of 2019, we continued to bolster our core auto show business, accelerate the development of our online marketing services, and cultivate additional collaboration opportunities with strategic partners to drive long-term growth. Facing the continuing macroeconomic and industry-wide headwinds, we adopted a more prudent expansion strategy to optimize the efficiency of our geographic coverage and refine our cost structures. We also made headway in the development of our special promotion events, which have become an integral component of our current growth strategy. Going forward, we plan to continue leveraging our in-depth automotive domain expertise, proven transaction facilitation capabilities, and highly-appealing value propositions for both OEMs and auto dealers. Although the adverse market conditions will continue to impact our financial and operating performances in the near-term, we are confident that our ongoing efforts to fortify our position as the leading omni-channel sales platform and cultivate additional revenue streams will assure our growth prospects in the long term.”

Mr. Zhihai Mao, Chief Financial Officer of TuanChe, stated, “Hampered by the underwhelming performance of China’s automotive market in 2019, net revenues in the third quarter decreased by 12.7% year over year to RMB135.6 million. However, despite this temporary setback, we have actively taken measures to reposition our business and bolster our growth prospects for the long-term. As part of these efforts, for example, we cultivated new growth drivers, such as our special promotion events and online marketing services. As a result, during the quarter, service fees generated from our special promotion events increased to RMB6.0 million while virtual dealership, online marketing services and other revenues increased to RMB5.9 million, compared to RMB1.7 million in the prior year period. Looking ahead, we expect industry headwinds to persist, continuing to impact our financial performance throughout the remainder of 2019. However, we remain confident that our market-leading position, growing network coverage, new business initiatives, and prudent cost and expense structures have laid the foundation for our growth in the long term.”

Business Outlook
For the fourth quarter of 2019, the Company expects net revenues to range from approximately RMB180 million to RMB190 million, representing a year-over-year approximate decrease of 20.5% to 16.1%. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.

For earnings history and earnings-related data on TuanChe (TC) click here.

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