Q3 2020 Ecmoho Ltd Earnings Call
[music].
And gentlemen, thank you for standing by and welcome to the whole 2023rd quarter earnings Conference call. At this time all participants are in listen only mode. After the speakers presentation, there will be a question and answer session.
<unk> and if you wish to ask a question you need to press star one on your telephone we and I said the beside from being recorded I would know like yeah, and the conference over to Gary Fischer. Thank you. Please go ahead.
[noise] and some coverage and Hello, everyone.
I think it will join us today for our quota can do you can do and conference call.
The Companys resolve that we released earlier today and available on and called me a website.
On the call today, we have and this is as and we law founder and Chief Executive Officer.
Mr Guy range Finance director and me.
And your loan growth.
And the general manager on this one will review business and the accretion income.
And company highlights followed.
Followed by Mr., Shu, who will discuss and financials.
Before we begin I would like to remind you that this call our call may constitute forward looking statements.
Made under the safe humble previously and their private Securities Litigation Reform Act of 1995, and stadium and based on management's current forecast and and calling and monkey.
Regulatory and operating conditions and the rig related to expenses that you wrote knowing along the risk and uncertainties and other factors.
Well all of which are difficult to predict and and many off wishes and beyond the company's control, which from a causes accounts is actual results performance or achievements to differ materially from growth and they are forward looking statements.
Further information regarding these and other risks.
Certainty and the fact is include in the company and feeling really U.S. Securities and Exchange Commission.
The company does not undertake and and and obligation to update and forward looking statements as a result from new information for the events or otherwise expect.
As required under law.
Our no rate so those are prepared remark for her.
Hello, everyone and thank you all for joining US today, that's fine there continue micro economic uncertainties weight.
We continue true for sure high quality growth and that business optimization to Delever and no sustainable business model and resolve to be steady improvements and and for the full day that cheap today. We are pleased to share with you our financial and operation from fulfillment.
That said quoted.
And so to put it and total revenue was usthirty seven to 1.5 and meeting.
Ah sex too.
Albert efforts and sticky and cost control project portfolio optimization, and that actually strategy and lay out a healthy industries digitalization.
Our reported <unk> proceeds and play that he has been for their improved and.
Fortunately base.
Which can continuous optimization and enforcement and.
British men and I cheat inference in French trite and infrastructure, our operations operational efficiency improved as well.
The inventory turnover days was down to 77 days and says quota 2020.
From 89 days and there were some quota of last year net cash and 10 out of 10 over day I also was down to 75 days and third quarter Twentytwenty from 97 days and the same period of last year.
And so the end of September.
The accumulated the paying users and their repurchase rate rich Tim.
10.5 meeting and 57%.
Respectively, and respectively, and Inc.'s third quarter. This year, we continue to optimize our <unk> coverage from grants and that puts more focus to introduce high value partners and this quarter, we introduced a new Brent and Caite.
Operating medical care equipment, how scared and the cross border Otcs industry.
Test and logic natures archery comical and pharmaceutical.
<unk> more black Berry and there were 10 Mg.
We expect to see juice and the potential new high value of punters true can contribute to our future growth profitability and growth.
The continuous strength, our core competitive and better if we focus on and number of from key areas such as an integrated solution provider seeing healthy and wellness market first.
We've continued to strong brand engagement and expand the Tetco and category. So along the coal business, we increased cost for the LTC category and the per day as we see a sustainable growth in.
Gross said.
Second.
We put emphasis and improving the operating efficiency and the full ability with steady improvements.
We creep and corporation the V is friends with comfort food.
Flow portfolio abilities, such and such a result from our production and.
Category mix has optimized for that.
Which will increase our portfolio ability systemically.
And a lot and lost weight intended to leverage strategy and utilization to expand our service scope with our brand partners and.
That's way supposed there and tie and Chen for content.
Content marketing, Okay, well live stream to using a high level integrated solution with our data and challenges.
And the inside solution.
And this year somebody 11 shopping festival, we made process and helping brands and punish too.
And tolerate south growth gross and the total value valuable service with our unique online marketing strategy and house and wellness monkey.
Which include a song lifes Stone Lafortune brand club operations and are decent device that traffic layout.
There are hardly and pharmaceuticals has generated incredible growth. During this festival our customer engagement is also a great example of our process.
Where our total accumulate paying users I'm old and 10.44 to seven meeting and repurchase rate has reached the six or 7%.
Our.
Sequentially improved and fulfillment steward and lost a couple of quarters show that our strategy is proved to be successful looking forward.
Yes, and local will capture the growth opportunity of expanding brand strategies utilization people.
Deepening supply channel and the social commerce, and insist and driving sustainable results for shareholders.
Asked weighted look ahead to more process and they were fourth quarter. We expect it will deliver sequential improvements in operating profit for the full ability and their net loose well be significantly narrowed and.
Compared with last quarter or even breakeven.
That.
Concludes those prepared remarks, I want to know tend to pull over and she'll Gary should go should financial results.
Okay and you [noise].
Now I would like to go over the third quarter and he turned piece.
And then so results and multi channel.
We believe and year over year from everything on the Bethree to review our performance.
All percentage today I'm going to do we will be on that basis.
Unless otherwise indicated.
Once again, please note that all finger I figure and reasons and he'll be U.S. dollar.
Football.
Our total net revenues decreased by approximately and it.
Weekly, 5% to 71.5 million dollar range.
Other product sales.
And that five recurring and other revenue.
From our own branded partner.
Only piece the cooperation with <unk> and.
And then calm and and book the companies you saw revenue growth from existing partner or rail from the accretion from the summer to cool down and Osha, though and the new partner, there and a net Harold Osobio and they incur deal.
Around sales.
From partner.
Fourth quarter.
Gross margin was 17.7% compare to be 24 from 6% we ended up in quarter last year.
The decline in growth and modern work cost and by lower growth margin products, So true from crack from higher.
Higher sales, who online growth here with a lower growth margin.
And the lower sales through our B to C segment.
And the rail has up and beranek ready to roll.
The total operating expenses were 16.9.
The mailing and your daughter.
Compare to be 15.7 meters and in the same quarter last year.
Total operating expenses and and he's up a total revenue increase from 21 centered on year to 23.6% and this year.
In particular.
So pretty much fulfillment expenses and up and he's out of a total revenue recurring and from 5.6% and our year to 4.7% this year.
Primarily due to lower expenses rupee to third party logistics provider.
Sales and marketing expenses as a percentage of total revenue.
Interest from.
Pills per day sales from three expense last year to 14.3.
So and this year.
From really.
True higher and create new pet from C and the promotional expenses.
D and a extensive and up and he's off a total revenue increase from.
2.5% last year to fall from three cents this year.
Primarily due to higher profit pecking order, if everything they post IPO costs and other fee and legal fee and insurance sales and other ER from out every day and reduced due to the higher labor costs and are you from expense.
And if he experienced and offer up and paid for total revenue decreased from a vehicle and sick centered on year to grow from focus and this year, primarily due to the reduced the headcount.
Operating real world.
Ballpark true made and U.S. dollar comparatively ER and operating income of 2.7 million last year.
Non-GAAP operating loss was.
All right in your daughter compared with non-GAAP operating income of EUR 3.1 million and U.S. dollar left in there.
Non-GAAP net loss was 3.9 million.
Compare to read non-GAAP net income of 2.3 million fiorenza and quarter and.
From the United Kingdom.
As the end up there for quarter three have a row.
50 fall from full May day, your thought our mailing and in cash cash equivalents and the restricted cash comparatively and 51.1 million with the older assets ended up from 19.
And true declined from 51 from true made and you have to order in the second quarter true full 46.7 million U.S. dollar and a third quarter price.
Primarily due to our efforts to.
And improve operational efficiency and proactively lower the inventory level.
Turning to the guidance.
Based on current macro economic and industry conditions.
And we'll continue to folks and improving however, working capital efficiency and improving our profitability, including premium and certain less profitable brands from our local authority and.
And our results.
In the fourth quarter, we estimate that the revenue decreased year on year why are we expense and the net loss from your you said it significantly narrowed and compare to the last quarter or even breakeven.
A bomb outlook is based on current market conditions and that reflects our preliminary estimate.
Rates are all subject to change.
That concludes our prepared remarks and Q.
Now operator were now ready to begin the Q and a section from Q.
And.
Thank you, ladies and gentlemen, if you wish to ask a question. Please press the star and won on your telephone keypad and wait for your needs to be and now if you wish to and so very crass. Please press the pound or cash once.
Once again it is star one if you wish to ask a question.
Once again, ladies and gentlemen, please press star one if you wish to ask a question.
And second to ask a question and its star one.
Ah Okay.
While we are still be twofold. The online questions. Obviously go through maybe I will go through from questions. We received from offline and lesser during that quarter.
Have you read through the.
Question and Mr., Li long real alternative fashion.
The first question.
Haul ones that perform and on top of 11 Festival this year.
Okay, Let me ask.
And your monthly and you should.
He and Shashi <unk>, so she can try and yet.
Well that leads to the conference schedule now you seem awful.
Do you watch indoor Das ball and media channel highly him and he or she bought let's see the liliana, Italy and that can continue beyond the ones.
Well, you should see and go home.
He got to.
So that piece of the fortune and Jonah and it seemed kind up she made that Joe and John.
Hi, Harvey Gee I wasn't Joshi cannot eat bye.
And our joint venture and John did.
Teach and you actually won a ball games.
Games and James you got here is your holiday fashion and she kind of true maybe he bachata actually show each and every day.
And yeah.
Different from previous years double 11, this year timeframe. He is no longer if and when we had a series of special such as leveraging livestream.
And the new media and social platform brand the Corporation.
And there were some other brands have very good very good growth as a result of brand partners actually from the incredible sales growth the Harbin from sort of generally incruse and critical growth student their festival is 100%, a 124% growth, but the total cash.
Equity of a house getting industry is has a highly grows in double 11.
The other category is now so good and have a growth in and things that you see double 11, it's because it's influenced by there.
Conquer and the buyers okay.
Okay, Okay, and EPS constraints employee.
<unk> expense the company and growth strategy.
And the only and driver.
Yes.
Okay.
And.
And just religion, Wally and hand the.
And I can't comment on clarification, Notching down looking and we only have shifted from door.
And Paul Hans and you should Uh huh.
Brent branding knowledge and Yoghurt option laid up back and how to proceed late Ginnie asking that channel how tall, John He know jumpy job a total one time and page and got one and that should allow you then well leave and I.
Yeah.
Okay, and integrate a solution provider in health and wellness market waiting half our revenues go buy more engagement and Brent and the category developing new traffic channel and increase more consumers.
Okay.
Okay and next question.
What factor you seem to drive the healthy industry and how fast in the long term.
Okay, and what are your weighted towards the back end comes from PGM stage and the time.
And we also won some good ginger and a way to Uh huh.
Either not adjusted.
And.
Sad future Darling and me and Tim Gokey and control.
She's hopefully more that all my day, and buying and and indeed.
Jumping and make without asking you why you want to try and dollar tree knowledge and and she and eat.
Noma, Yeah. So just to talk with you and how you came true away, sometimes I enjoy angel and selling and unfortunately I am not.
And he sounds a total was yoshida and again he used to treat a long and sometimes geech are either using GAAP. They can kind of huge from <unk>.
You want to kinda dollar trees outage and Jackie.
Okay Liberty.
We believe China healthcare and the wellness market. They have huge of long term growth first and clothing to it and lots of data.
The Mafia side, and so China health and wellness market as rich I M. B 8.8 treating some.
Compared to compare true.
2.2, 0.1, treating and U.S.
And in China, and healthy industry have ER has been adjusted as China's.
In April the vertical and strategy in 2013 third there China has a huge and population base with the race healthy and the wellness refinements of their age Middle class family family and the new bone, we'll see a huge growth opportunity in this market.
Okay operator.
Is there and if a online question from the U.S. Sir.
There are no questions from the line yet so just a reminder, who wish to ask a question you May press star one on your telephone keypad and.
Once again day Star one should you wish to assets.
Yeah.
Okay. Operator, if there are no further questions, maybe we can conclude the call and Ah Ah. Thank you <unk> out.
Our fourth quarter conference call and if you have any further questions to come from and the management, please feel free to email.
Our email address <unk>, <unk> and you see mobile dot com and.
Oh and to have if you have a good night.
Thank you, ladies and kids, ladies and gentlemen that does conclude our conference flights a day. Thank you for participating and May now disconnect.
[music].
Oh.
[music].
[music].
[music].
Ladies and gentlemen, thank you for standing by and welcome to EPS Mohawk 2023rd quarter Earnings Conference call. At this time all participants are in a listen only mode. After the speakers presentation, there will be a question and answer session.
Just fine if you wish that question you need to press star one on your telephone please be advised that didnt buy from being recorded I would know like one day conference very true dairy and sure. Thank you. Please go ahead.
And some coverage Hello, everyone.
And thanks for joining us today for our southern quota Twentytwenty, earning conference call.
Companies to resolve and we released earlier today and the available on the Companys website.
On the call today, we have and Mrs is always law founder and Chief Executive Officer.
Mr Guy running shoes Finance director and me Daniel.
And your wall coupons, and general manager I missed one well review business and the operations.
And the company highlights followed.
Followed by Mr., Shu, who will discuss the financials.
Before we begin I would like to remind you that this call are made content forward looking statements made on the sales.
Humble previously.
The private Securities Litigation Reform Act of.
995, such statements are based on managements current and full cost and calling and market.
Regulatory and operating conditions and the related to expenses that enroll knowing along the risk and uncertainties and other factors.
All of which are difficult to predict and many off wishes and beyond the company's control, which may cause the company's actual results performance or achievements to differ materially from growth and they are forward looking statements.
Further information regarding these and other risks.
Certainties and effect is include in the company and feeling really you with Securities and Exchange Commission.
The company does not undertake and and obligation to update and forward looking statements as a result from new information for the events or otherwise expect.
As required under law.
I will now rate so those are prepared remark for her.
Hello, everyone and thank you all for joining US today, that's five there continue micro economic uncertainty weighted.
Wait continue true for sure high quality growth and that business optimization to deliver a more sustainable business model and resolve and be steady improvement and for the full ability today. We are pleased to share with you our financial and operations from Oklahoma.
Yes and quota.
And so for the and total revenue was Usthirty seven to 1.5 and meeting.
Sex too.
Albert efforts sticky and cost control project portfolio optimization and that actually strategy layout, a healthy industries digitalization.
<unk> for the for profit and by that he has been further improved.
Fortunately base.
Which can continuous optimization and enforcement and.
Whereas men and I.
And she influence in French try and infrastructure, our operation operational efficiency improved as well.
The inventory turnover days was down to 77 days in the quarter Twentytwenty.
From 89 days and their same quarter of last year net cash and tunnel and nowhere day also was down to 75 days third quarter Twentytwenty from 97 days in the same period of last year.
That's all from the end of September.
The accumulated the paying users and their repurchase weighted rich Tim.
10.5 meeting and 37%.
Respectively, respectively, and Inc.'s third quarter. This year, we continue to optimize our cloud coverage and brands and that puts more focus to introduce high value partners and this quarter, we introduced a new Brent and Caite.
Operating medical care equipment health care, and the cross border Otcs industry.
Jeff logic natures Acri Calhoun pharmaceutical.
More black Berry and the Retenanting.
We expect to see juice and the potential new high value of partners to contribute to our future growth.
Profitability and growth.
No continuous Johnson, our coal competitive and bandwidth with focus on a number of from key areas such as an integrated solution provider seeing healthy and wellness market first we have continued to flow grant engagement and expand the tetco and Kevin.
Okay, great. So along the coal business wait and quake cost for the LTC category and they are part of that and we'll see a sustainable growth in verticals.
Second.
Put emphasis and improving the operating efficiency and the full ability with steady improvement.
We creed of cooperation with spreads which contribute.
Flow portfolio be the Ti such and such a result from our production and.
Thats, great mix has optimized for that.
Which will increase our portfolio relative systemically.
And a lot and lost weight intended to leverage strategies and utilization to expand our service scope with our brand partners.
It's way supposed there and tie Chen for content.
Content marketing, okay, well lasting two using a high level integrated solution with our data and talented.
And the inside solution.
And this year somebody doesn't show up and piece of we made process and how congrats on this too.
And calibrate south growth growth and the boats more value valuable service with our unique online marketing strategy, the health and wellness market.
Which include a song lots of stone Lafortune brand cooperation and the decentralized coffee layout.
There are hardly pharmaceuticals has generated incredible growth. During this festival our customer engagement is also a great example of our process.
Our total accumulate paying users.
And then 10.44 to seven meeting and the purchase rate has reached that 7%.
Our.
Sequentially improved performance do you have and last copper quotas show that our strategy is proved to be successful looking forward.
From OCO will capture the growth opportunity as expanding growth strategies utilization deep.
Deepening supply channel and the social commerce and insist on driving sustainable results for shareholders.
Asked weighted look ahead true more process and they were fourth quarter. We expect it will deliver sequential improvements in operating portfolio Vila chief and their net loose well be significantly narrow.
Compared with last quarter or even breakeven.
That.
Concludes those prepared remarks, our now tend to the call over to Gary should go show financial results.
And you.
Now I would like to go over the fourth quarter from different.
And then show results multi channel.
We believe and year over year from everything on the Bethree to review our performance.
All percentage to Dave I'm going to be will be on that basis.
Unless otherwise stated.
Once again, please note that all finger and Peter mentioned and he'll be in U.S. dollar.
Paul.
Our total net revenue decreased by approximately and it.
Weekly and 5% to a 71.5 million dollar range.
From a product.
Offset by weaker and other revenue.
Hi, mom brand partner.
Holy piece, the cooperation and leave you guys.
And were in town and and book the company saw revenue growth from existing Faulkner.
Partner.
From accretion from the summer to cool down and Osha, though and the new partner there and a net he'll also be they.
They incur deal.
Around fake you from partner and.
Per quarter.
Gross margin was 17.7% comparatively plentiful from 6%.
And quarter last year.
The decline in growth and margin were caused by lower growth modern products, So true thumbtack from higher.
Higher sales to online growth here with a lower growth margin and.
And the lower sales through our B to C segment.
And the rail has a pandemic ready to roll.
The total operating expenses were 16.9.
Made and your daughter.
Compare to be 15.7 meters and in the same quarter last year.
Total operating expense and they add up and paid up a total revenue increase from 21 and that our year to 23.6% and this year.
And I think earlier.
Well pretty much fulfillment expenses and.
And he's off a total revenue declined from 5.6% and last year from 4.7%.
Sure.
Primarily due to lower expenses related to third party logistics provider.
Sales and marketing expenses and.
And the total revenue income.
We incurred from.
Sales sales from 3% and last year to 14.3.
And this year.
Primarily true.
To hire and create new pad from feet and promotional expenses.
D and a extensive and up and he's off a total revenue increase from Twoq.
2.5% last year to fall from 3% and this year.
Primarily due to higher profit technology from refi.
Post IPO costs average.
Oh, the fee and legal fee and insurance sales.
And the other from out every day.
Moving to the higher labor costs and insurance expense.
And that we experienced and offer up and paid up total revenue will decrease from a vehicle.
They recall and thick centered on near to grow from folks and this year primarily due to.
And that reduce the headcount.
Operating real world.
Ballpark true made and U.S. dollar compared with operating income of 2.7 million last year.
Non-GAAP operating loss was.
All right and yes, daughter, compared with non-GAAP operating income of 3.1 million and.
Dollar left in there.
Non-GAAP net loss was 3.9 million.
Compared with non-GAAP net income of 2.3 million fiorenza up in quarter and.
From the 19.
As the end up with our first quarter they have around.
The fall from fall.
And our mailer and cash cash equivalents and the restricted cash compared with 51.1, new Labour solar assets ended up from 18 19.
Human true declined from.
51 from 2 million and you have to order in the second quarter true full 46.7 million U.S. dollar.
At quarter.
Primarily due to our efforts to.
And improve operational efficiency and proactively lower inventory levels.
Turning to the guidance.
Based on current macro economic and industry conditions.
We will continue to.
And however, working capital efficiency, and and improving our profitability, including treatment and certain less profitable brands from our local alcohol and.
And our resolve.
In the fourth quarter, we estimate that the revenue decrease year on year why are we expense and the net loss from your 50 at a significantly narrowed and compared with last quarter or even breakeven.
Bob outlook is based on current market conditions and that reflects our preliminary estimate.
Rates are all subject to change.
That concludes our prepared remarks and Q.
Now operator were now ready to begin the Q and apex and thank you.
[laughter].
Thank you, ladies and gentlemen, if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be amount, if you wish to and so very crab meat press, the pound or cash once.
Once again it is star one if you wish to ask a question.
And so again, ladies and gentlemen, please press star one if you wish to ask a question.
And again to ask a question and its star one.
Ah Okay.
While we are the only two falls online questions. Obviously go through maybe I will go through from questions, we received and from offline lesser during that quarter.
Obviously written through the.
Question and mixed so long real alternative fashion.
The first question.
Haul ones that perform and on top of 11 Festival this year.
Okay, Let me ask it.
Your monthly and your ship.
He and Shashi chicken.
You can try and give you.
And what that leads to the Hallmark channel now.
And you seem awful.
The margin door dogs your ball and.
And media channel highly here in English and more quickly.
Lead the newly out slowly and continue beyond the ones. Please.
And can go how eager to GAAP.
So your decades of the.
Unfortunately, I don't know, Jim kind ups and lay that Joe and John.
RBC G. Allen Joshi from Canada.
Bye bye.
And as you mentioned John.
And your actual enough volume and James you got here is your holiday fraction and she'd how does he bachata how should show each and that you will be back.
Daniel.
A different from previous years double 11, this year timeframe be smooth longer you CMO has sure is special.
Such as leverage lag between.
And the new media and social platform brand the Corporation.
And we have other brands have very good.
Hi, good growth as a result of brand partners actually from the incredible sales growth the Harbin from six to generally improve incredible growth do and their festival is 100% Atlanta, and 24% growth, but the total category of Uh Huh.
House getting downstream has a highly growth in double 11.
The other categories now so good and have a growth in and you see double 11, it's because if infield and divide there.
Concur and the liars okay.
Okay, Okay and then.
Constraints employee.
Pete expense, the consummate and growth strategy and the onions Ivor.
Yes.
Okay.
And.
And just finally, John Wally and he and the.
Thank you and comments will hopefully we shall not just on looking and.
We only have shifted from door and fall high yield true.
Hello.
Brent branding knowledge and GAAP option laid out back in late June.
And gasoline and channel how tall, John he know choppy job.
Total will come and page and young woman does show is alive and well.
<unk>.
Okay, and then integrate a solution provider in health and wellness market weighing haswell revenue scale by more engagement and breadth and and category developing your Tropic channel and increase more consumers.
Okay.
Okay and next question.
What factor you seem to drive the healthy industry and a halt facts and the long term.
Okay.
Well begin with total.
Got you and comes from Canadian stage from the time.
And we also won some good Joe and John and a way to like Huh.
Either larger ships.
Thank you and your dialing and me and from what can continue and.
She is probably more at all by the and buying it and maybe.
And they make without asking you why what kind of dollar tree knowledge and and shoot me.
Noma Yeah, they're just a total question how are you going to away.
Hi, I enjoy age and will Anita.
Selling and unfortunately not.
And I'd be sounds like total was.
And Oh equal treatment alone and sometimes get each either use and GAAP income as usual.
You want to kind of allergies outage and Jackie.
Okay, I would believe China, healthcare and wellness market have huge and loan growth first and clothing to it and lots of data.
The MCU side, and so China health and wellness market and.
And rich volume be 8.8, treating from compared to compare true.
2.2, 0.1 treating us.
And kind of healthy industry have has been adjusted as China's.
Natural the vertical that strategy being 20 searching cert, there China has a huge and population base either raise healthy and the well and these requirements of their age middle class family family and the new bone, we'll see a huge growth opportunity in this margin.
Okay operator is.
Is there any online question from the Investor.
There are no questions from the line yet so just a reminder, English to ask a question you May press star one on your telephone and.
Once again day Sarwan should you wish to assets.
And.
Okay. Operator, if there are no further questions, maybe we can conclude the call.
And Ah Ah. Thank you all.
Hi.
Our fourth quarter conference call and if you have any further question to come from.
And the management, please feel free to email.
Our email address <unk> and you see mobile dot com. Thank you all and have a if you have a good night.
Thank you ladies and cash.
Ladies and gentlemen that does conclude our conference for today. Thank you for participating and you may now disconnect.