MOGU Inc. (MOGU) on Q4 2021 Results - Earnings Call Transcript
Operator: Ladies and gentlemen, thank you for standing by and welcome to the MOGU Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. . I would now like to hand the conference over to your speaker today, Mr. Roger Hu . Thank you. Please go ahead, sir.
Unidentified Company Representative: Thank you. Hello, everyone. And thank you for joining us today. MOGU’s earnings release was distributed earlier today and is available on the IR website at ir.mogu-inc.com as well as on the Businesswire Services. Before we begin, I'd like to remind you that this conference call contains forward-looking statements within the meaning of Section 21 E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995.
Shark Chen Qi: Hello, everyone. Thank you for joining us today on our fourth quarter and fiscal year 2021 earnings conference call today. During the past quarter, we continue to see a consistent and steady growth in live e-commerce business. The journey from live e-commerce increased by 42% year-over-year to RMB2.245 billion in the fourth quarter contributing to 87.2% of the total GMV during this period. This demonstrates that MOGU has successfully executed on the transformation of its business and has essentially become a pure play live e-commerce powerhouse. As an early mover in live e-commerce, we have witnessed the advancements in the live e-commerce business in China during the last five years and have established a very differentiated shopping experience for our users. This allow us to continue capturing new growth opportunity in the e-commerce space in China. So, continuous innovation is an essential quality in MOGU’s culture. After establishing our live e-commerce business in 2016, we have also developed a product feature called short-live which has really begun to make a breakthrough over the past few months. Short-live is basically a short video clip produced by KOLs in MOGU live room and can be disputed as a structure and track information to wider audience in public.
Raymond Huang: Thank you Shark. Thanks again for everyone for joining our conference call today. I will now walk you through our fourth quarter and fiscal year 2021 financials. We believe year-over-year comparisons are the best ways to review our performance. Therefore, unless otherwise stated, all percentage changes I'm going to mention will be on that basis. So, let's review the financials first. Our GMV for the fourth quarter of fiscal year 2021 was RMB2,576 million, an increase of 6.5% year-over-year. GMV for the 12 months period ended March 31, 2021 was RMB13,855 million a decrease of 18.8% year-over-year. Our focus has been growing the GMV from live video broadcasting business, which has increased by 42% year-over-year to RMB2.245 billion. Live video broadcasting associated GMV for the fourth quarter of the fiscal year 2021 accounted for 87.2% of the total GMV.
Operator: Your first question comes from the line of Sabrina Hu from Jeffries. Your line is open. Please ask your question.
Sabrina Hu: Thanks management for taking my questions, I have two questions. The first one is how should we see the competitive landscape going forward in the short video platform step up efforts in live streaming e-commerce? The second one is how should we see the live streaming e-commerce growth rate this year for best industry in MOGU, where the new form short-live goes to the revenue curve? I’ll translate myself.
Unidentified Company Representative: Sure. So, I’ll answer the question directly in English there. So, yes, number one speaking of competition, of course, we are seeing that the e-commerce space in China is extremely competitive. But we do believe that okay, Chinese consumers are very, very demanding. They are always asking for more innovative and more interesting, more immersive, more interactive way to shop. China is becoming a very strong country with a very open society. So, that our shoppers have many different options. They're not just going for the cheapest products or they are going for the massive products. They're actually asking for different shopping experience. So, that's why MOGU will stay very, very focused on product innovation and to give our consumers the best experience.
Operator: Your next question comes from the line of Charlie Chen. Your line is open, please ask your question.
Charlie Chen: .
Unidentified Company Representative: Okay. So, basically the question is very simple, is basically about the ROI of short-live versus live, in terms of incorporating of different factors, including user interaction in the showroom, and also how many times we can repeatedly use the live short-live video? So, the company's answer is, yes, that's a very good question. So, short-live is meeting the user interaction. So that's actually now the best part of the format. So, our users tend to find better user interaction in the live showroom. So that's where most of the interaction happens. That's where the immersive and interactive experience takes place. However, the pros or the advantage of product is that, it can be used forever. We are seeing that our hosts can be -- they recorded a short-live from last year, maybe from 12 months ago, can be still seen by our audience. And people are still making purchase of that item that re-introduce or represents 12 months ago. So, it has a very, very long shelf time. So, people can always go back to the product and the buy that. So that, so apparently, the return on investment on that, or I guess the sales that can generate per SKU, or sales can generate per short-live is very, very high. And speaking of the interaction, or I guess the specific things about a short-live is in short-live, you can see all the previous product reviews posted by previous buyers. So, in live, you actually cannot see all the user reviews at the same time, because the product is actually new. And it's actually new to the audience. But in short-live, because it has very long shelf life, so you can actually see all the reviews from previous buyers, and then make a more informed decision accordingly. So therefore, the conversion rate, even all the assistance from previous buyers, make the conversion rate even higher. So, that's kind of what we have observed over the course of last year - over the last few months.
Charlie Chen: Again, thank you very much. Thank you.
Operator: . Your next question comes from the line of Locky Lau. Your line is open, please ask your question.
Locky Lau: .
Unidentified Company Representative: Okay. So, Locky’s question is about the generic growth for the last quarter and for the quarter going forward. So, I think as Sabrina mentioned earlier, China has actually extremely competitive situation. The last year’s e-commerce is growing really fast in terms of the Intel sector growth, so it's also extremely competitive. So, at this juncture, we wouldn't be able to give forward guidance on the GMV growth but we do believe that the live streaming e-commerce segment has very, very high potential and we're only at the beginning. So, we are optimistic and positive on this side. So, we'll continue to invest in the live e-commerce business to make sure that we can capture all of those opportunities going forward. Okay. So, operator do I have next question?
Operator: There are no further questions at this time. You may continue.
Unidentified Company Representative: Okay, great. So, if we don’t have further questions on the floor and we can end the call today, so thank you again, everyone for joining the conference call today. We look forward to seeing you next quarter.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Presenters, please stay on the line.
