Q2 2021 Quhuo Ltd Earnings Call
[music].
Good day, ladies and gentlemen.
Come to <unk> second quarter 2021 earnings conference call.
At this time, all participants in a listen only mode.
After managements prepared remarks, there will be a question and answer session.
Today's conference call is being recorded if you have any objections.
You may disconnect at this time.
I would now like to turn the conference over to your host for today's conference call. Mr. Eric Yuan. Please go ahead.
Thank you operator, Hello, everyone welcome to G SEC.
Current quarter 2021 earnings conference call the company's results.
Well first released earlier today.
All right.
Today, our latterday sheer amount of thiel cofounder very hot hence therefore central sheet Leslie will reveal business operations and company highlights followed by central who will discuss financials and guidance.
So there will be available to answer questions, especially not follow so before we begin I would like to remind you that this call will contain forward looking statements made in the safe Harbor provisions of the private Securities Litigation Reform Act.
Of 1995.
Such statements are based on.
Management current expectations and current market and operating conditions.
And related to the events that are well known.
Risks uncertainties and other factors.
Both of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results performance and achievement.
Achievements to differ materially from those in the forward looking statements.
Further information regarding these and other risks uncertainties and factors is included in the company's filings with the U S.
Securities and Exchange Commission.
The company does not undertake any obligation to update any forward looking statements as a result.
Q information future events or otherwise, except as required under law.
With that I will now turn the call over to our chairman and CEO Mr. Leslie Leslie <unk>. Please go ahead Sir.
Thank you Eric and thank you for joining our second quarter 2002, where earnings.
Jonathan This call.
We outpaced the total crowd had another strong quarter as a total revenue rose by 81% year over year and almost have reached a milestone with five people in video.
Thanks to strong demand for our services and our large network of workforce across the country.
Ultimately our main business.
Covers all Debottleneck elaborate mobility associates in housekeeping solutions to cover the needs of people they didn't accept it.
Robust growth momentum in the second quarter.
In addition, our gross profit margin quickly rebounded from the supplier quarter at labor costs normalized standard level.
As a result.
We achieved adjusted net income of RMB 10 million I think.
<unk> improvement from the first quarter. This result.
With us with Brexit the economy of scale of our business model and our strong execution all about it's not about deployment strategy.
Now, let me walk you through our key.
Our performance in Q2.
Let's look at our biggest revenue contributor solid demand at the direct business.
As the COVID-19 pandemic remain largely under control in Q2 national wide.
Albeit with some small scale refrigerants in a few regions People's lives will generate between Paloma.
Taking advantage of the solid demand for on demand delivery services, our revenues maintained healthy growth reached RMB $942 million in Q2.
74% year over year the trend we see in the current market is at a.
Premium delivery providers like.
Sure of taking back share from outsourced to providers.
This has given us a window of opportunity to aggressively expand our presence in existing market and penetrating new wins.
Second quarter of 2021, we've provided a subsidiary in 1200 <unk>.
I've been with telcos across 139 cities nationwide.
<unk> 950 isn't it so colas across 75 cities in the same period in 2020.
For Q2 was the overall number of average amount stay deliberate others or $45 million.
At 85% year over year.
On the cost side, if you recall from our last earnings call. We observed that labor shortage will make get paid after more <unk> between the two cities after Chinese new year holiday.
I'll try to strike a balance in the model that is at higher levels.
Backlog and will significantly improve the intro tool on a sequential basis.
Next I would like to give you an update on our housekeeping solutions in Q2 revenue sustained its revenue growth momentum in <unk>.
<unk>, 67% sequentially to RMB 22 billion.
We continue to expand our service capability to meet the growing demand.
In June the number of housekeeping orders from hotels increased by 120% from a quarter ago, and then the number of rooms and the piece that was served by us increased by 250%.
Our core tobacco.
Relations with traditional housekeeping services will begin to provide more value add is to strengthen our relationship with the NMB operator clients.
We launched our proprietary housekeeping SaaS solution <unk> property management system or a PMA.
To connect the homes the operators with the mountain marketing channels and the room rental platform.
As a central hub Pms keep spreads DLP operated and housekeeping manager an easier way to check orders unless team.
<unk>, two very user friendly daytop authorization tourists.
And the real time information.
Our policy will this new service orders from the system PSA Tms manager is concerned the workers to serve our clients immediately.
Our mobility business, which includes chiyoda I kind of right fit into the teens also deliberate.
Solid performance.
Revenue increased by 337% year over year, and 15% quarter over quarter to RMB $26 million.
In the second quarter, the number of orders for our mobility business grew approximately 60% from prior quarter.
Now I want to give you some updates about the progress of our Iot scenarios employment information.
We aim to offer the world Chris on our platform.
Xfinity in terms of self selection by Mitch with the skill sets on.
The increase in fee income with the mall job opportunities.
At the same time.
Offering market scenario subsys can enable us to achieve optimal use of resources and improve efficiency and a stable cost.
According to our VAT statistics as a whole for Q2 2020 with the cumulative number of Walker and gateway into our module type of hour.
Paul reached 17700, and an additional 2000 compared with the prior quarter.
In the meantime, we continue to strengthen our mandatory occupational safety training for riders, which has also led to increased income for our premium riders in.
Q2, 2020 with writers with an average monthly income of RMB 5000 accounted for 54% of the total group compared with 45% contractual.
We are also constantly exploring new business models and potential revenue.
Students in July Q4 reached a strategic cooperation agreement with government took technology.
A leading smart community Iot cloud platform.
Helping working together to launch a breath that packet subsys catering to the direct.
Good housekeeping market.
So.
<unk> deepened our cooperation with property management companies workers on short platform and directly providing earnings housekeeping services for meaningful households.
Thereby extending our service capabilities to individuals families.
Instead of only servicing enterprise clients.
You can do better from an in line with our multi scenario deployment strategy at present. This cooperation has been announced can you talk shop in the center.
In conclusion, we're strongly motivated by the tremendous growth opportunities ahead of us.
Regulatory scheme.
Scale, our platform to meet the growing demand in Europe.
Areas.
We remain fully committed to delivering long term value and profitable growth for our shareholders.
This concludes my prepared remarks, I will now turn the call over to our CFO will.
We will discuss our financial results for the second.
Dave.
Hello, everyone and welcome to <unk> second quarter 2021.50.
Please be reminded that that all amounts quoted here will be even be unless stated otherwise our total revenues were $991.8 million representing.
Second increased 81.1.
All the year, primarily due to the rapid growth of our major business lines.
Revenues from the amount of deliberate solution for 942.2 million, representing an increase of 74, 1% from.
<unk> hundred $41 million in the second quarter of 2020, primarily due to the increase in global orders fulfilled as a result of the industrial growth in the aftermath of COVID-19, and our continuing penetration and expansion into new geographic markets.
Revenues.
Our mobility service solution, consisting of share by commodity guidance Rahill solutions were $25.7 million, representing an increase of 336, 9% from $5.9 million in the second quarter of 2020, primarily due to our enlarged.
Got it.
Some are based and the service comp in shared by augmenting our solutions as the increase in the numbers are rising drivers on our platform.
Revenue from housekeeping and accommodation solution towards $91.8 million, representing a significant increase from zero.
Mainly in the second quarter of 2020. This was primarily due to our enlarged customer base for probation other housekeeping and accommodation solutions, including hotels and BNP as part of the network synergies achieved following the acquisition of lilac to Hong Kong.
Other revenues was.
920 million, representing an increase of <unk> 88 at eight.
8% year over year, primarily attributable to increased labor costs in line with our continuous business expansion with general and administrative expenses were.
$84.7 million, representing increase of 187, 2% from $79.5 million in the second quarter of incentive the.
The increase was primarily due to the increase in one share based compensation from one soybean and second quarter of 2020.
$244.4 million in second quarter 2021, and two for.
Professional service expenses, excluding share based compensation, the general and administrative expenses increased by 42, 9% year over year.
As a percentage of revenue.
<unk> declined to four 1% from five.
Five one.
In the second quarter of 2020.
We must test unit cost savings along with business growth rate.
Research and development expenses were $4.5 million, representing an increase of $63 six.
<unk> $2.7 million in the second quarter of <unk>.
Primarily due to the increase in compensation for research and development personnel.
The operating loss was $14.7 million compared to operating profit of $79.6 million in second quarter of 2020.
Excluding share based compensation did just kiss offering to <unk>.
<unk> was $39.7 million relatively stable as compared to 39 in the second quarter of last year.
We also recorded other loss net of some $7 million, which compared to other.
Come that of $3.6 million in the second quarter of last year, primarily due to the decrease in fair value change of investments in our mutual funds.
The income tax expense was $11.2 million, which remained relatively stable as compared to $11.5 million in second quarter of 2000.
Other income.
Adjusted EBITDA was $29.1 million, representing a significant improvement.
Adjusted EBITDA loss of $78.5 million in first quarter 2021.
The adjusted net income was $9.9 million also representing a significant improve.
Adjusted net loss.
<unk> nine point assortment and the first quarter of 2021.
We're going to endeavor to improve our profitability further going forward now our guidance for third quarter of 2021, we expect total revenues to be in the range of $1.1 billion.
<unk> to $1.2 billion, representing an increase of 43% to 56% year over year. The Brocato reflects our current and preliminary views on the market and operational conditions, which is subject to change.
This concludes our prepared remarks, thank you for attention.
Tension we are now happy to take your questions. Operator. Please go ahead.
Thank you ma'am.
Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question. Please press star followed by the number one on your telephone keypad and wait for your name to be announced if you wish to cancel.
So your request please press the pound or hash key once again, that's star followed by the number one on your telephone keypad and wait for your name to be announced.
We have the first question from the lineup.
I smelled from.
Roth capital. Please ask your question.
Okay.
Hey, good morning, good afternoon, Thanks for taking my question.
First on sort of a multi serial deployment.
Pretty good numbers there.
Creasing like 2000.
Quarter over quarter could you talk.
A little bit about <unk>.
One how many cities that you're in now I think on the last call you said it was 48.
And then where do they stand in terms of which services, they're doing I mean I'd have to get the main ones still food delivery, but is there any second one where the majority of that multi scenarios being deployed.
Yes. Thanks for the question and I know this is a net fee and usually that Oh, we have two types of pool multi scenario deployment I know, which is mainly in the cost of bodies.
We call. These our pecan the low time for life.
<unk>.
Both scenarios play example, under our rider for the theater land usually <unk>.
Timeline of Union Cai.
The morning, and afternoon time nominally as it can be sent to do the work for sure by coming tenants a lot for that.
Sure.
Multiple.
Consumer payments for it.
The other side of a housekeeping on the solution and they usually so workflows are female.
And it became a walk for the hotel for us.
Maintaining under in the meantime.
In the evening time line of <unk> Peng workflow.
The KFC or other restaurant support.
Frankly, so anomaly is that the two major types of whats the market scenario deployment.
Now we also has been what can we scan it.
Technology, and we started to deal with it. So this is for the family units.
So what's the immediately happened in pharma and biotech scenario you can chew.
Paul Thank you.
Yeah.
Got it and then also on the food delivery side, what was average order value in the quarter.
Sorry.
Well like Ontario are clearly.
Can repeat it.
Sure.
Average order value or average revenue per order I guess is the way that you can find it in the past.
On the food delivery side I think you had in Q1, it was roughly $7 or seven.
The RMB seven five RMB.
Yeah.
So the average.
Seven.
Yes.
Got it and then.
Yeah.
Oh goodness.
Gross profit margin this quarter compared to Q1.
How confident are you that you can continue to grow that set then seven two figure back to sort of I.
I guess, you know where you were this time last year and the you know 10% to 11% range.
As we mentioned before the first call sharpness of Europe, what's.
A special quarter.
Due to you know the stay at home policy in China as the Spring Festival.
<unk>.
So I'm on the.
They of course area as far as we are kind of such ways.
We can see that the gross margin I am backing should not marczak.
For a partner in that two hour show cultures, I'm afraid I can't say enough.
Keep accurate specific guidance burner.
Much of that.
Is lumpy.
It will be.
A much different from this quarter, but it may not be that much compared to this imperative laughing here, especially the third quarter.
Got.
Right.
Last one for me.
On the housekeeping side.
Have you looked into adding any more partners that can help you.
Really really ramp up your scale, both geographically and in different penetrations in the cities you're already in.
Yes.
Yeah.
Yes.
Current faithful housekeeping side are we doing in Kuwait and one way that you said in a way worse than that 15 housekeeping widened.
We use our basket timberland now use our management team and to use our nonstandard work on facilities.
<unk> two.
To get to the work that.
To get the business and also help them to manage it.
So on the other side in a way together with the property.
Our property comp.
Companies.
For example, we work with.
Some federal property management companies on the tool together to deliver the Soviets or directly to homes of teaching and therefore this property management company you can see already manage other than like the largest single day, all real and in theater all told for the household and they can reach.
Yeah.
Honestly cannot meet so during these kind of cooperation and they can provide how activities towards the already existing policy holders in the subway area.
So that's the two major ways for currently hallway extend I'm optimistic in a faster way we're using.
That'd be my operation with a profit in our existing property management companies and also wait together Walkaways 15 Hotel service providers.
And on the other side, who will be on the beef side, we use our PMA.
To connect the two.
Hum.
We.
Cracked the code.
Property owners and help them to basically get a <unk>.
Orders from different paths.
Platforms, and providing services to them so income.
In closing I like fashion has always we connect the deeper into the sources and based on.
So I'll walk on core competency.
Management and the use of technology development, yes. Thank you.
Yeah.
Yes.
Okay. That's great. Thank you.
Yeah.
Once again, ladies and gentlemen, if.
I wanted to ask a question. Please press star one on your telephone keypad and wait for your name to be announced.
We have the next question from the line of George Hill.
Cause furnace from.
Exclusive capital. Please ask your question.
Yeah, Hi.
Even though you're right.
Our mobile service solutions, a housekeeping your accommodation, they're growing very very fast they're still very.
Timing or very very small I would say part of your overall revenue mix. My question is.
Can you give us some color. If these two segments will continue to grow as you have seen over the past year or so.
And so far as housekeeping was partially answered by the previous.
Color, but.
And so far.
You know the overall growth picture do you see.
These two segments growing.
And the same way over the next year or so.
Yeah.
Yeah.
I think from our side too.
Two segments of housekeeping on the mobility, we are growing very fast as we can see is hot.
A few quarters.
And we tell you expect that even faster growing fee income next quarter.
Comparing with the if we considering the matched for housekeeping.
Our mobility currently in China actually that they are more like we.
So our existing.
15 business.
<unk>.
So when we approach the whole market we used car.
Car plate and we use the birds.
That's the fastest way for us to consolidate this resulted in short term.
And is annually.
Can empower with our technology core competence and our management company.
So we expect that two sectors, we all have a much fast took OEM pays.
The reason why we can what's the reason that's a reasonable way of homes building small because.
At the same time for.
Major business to like a pull it it really is still keep them faster growing feed. So that's why you play in.
Put them together, we cannot see that maybe theatrical small but for the Boeing speed and.
We expect that as he can contribute especially for this year.
We all have a certain significant percentage of our total revenue yes. Thank you.
Thank you just a small follow up.
You have an estimated the Tam total addressable total addressable.
Market.
These two segments in the markets you serve is there some sort of estimate you guys have come up with.
Yeah.
Okay.
Sure.
I mean, not not know of China, just you know where you do business.
If you have them.
Yeah.
Okay.
[laughter], especially for SEC, keeping my feet I think these are very large.
And our we call it is.
In Chinese we call it the one.
Yeah.
Solid trading revenue.
Beatrice chilling.
Cheering RMB.
Various because COVID-19 sector is not just for enterprise service needs, but it's largely demand days five household family units.
Currently in this market in various segmental and especially for household Playfirst and the service from our standard service proposal.
Housekeeping, but unfortunately, the currency in this market anomalies individual and as they provide a service.
Fourth is household.
And as we observe it spend and the varied from different people.
We can see that this is the last market and not required not requested by our enterprise clients and also he's very needed by household and they want.
I understand the service and then they don't want to replace yeah.
Housekeeping.
So these people very frequently because it will cost to match for them.
And for mobility services actually that is in crude and not only for.
Like Oh.
We caught it.
The ride hailing and also include a share of the bike and also include a share the multiple.
Growth for this sector.
43 sector and they are growing very fast in China, and especially we can say that for the ride hailing side and therefore the shut.
The bike side.
And maybe this ties a little bit smaller than the housekeeping side, but we still can exceed on that is that being market yep. Thank you.
Thank you.
Yeah.
Once again, 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 announced.
Okay.
Yeah.
Once again, ladies and gentlemen, if you wish to ask a question. Please press star one on your.
Your telephone keypad and wait for your name to be announced.
Yeah.
Okay.
Once again, ladies and gentlemen, if you wish to ask a question. Please press star one when you.
Your telephone keypad and wait for your name to be announced.
Okay.
Yeah.
Yeah.
Okay.
Yeah.
Once again, 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 announced.
Yeah.
Okay.
Ladies and gentlemen.
There are no further questions.
Today's conference call.
Thank you for participating you may all disconnect.
Yeah.
Uh huh.
Uh huh.
Yes.
[music].
[music].
Good day, ladies and gentlemen.
Welcome to <unk> second quarter 2021 earnings conference call.
At this time, all participants in a listen only mode.
After managements prepared remarks, there will be a question.
And answer session.
Today's conference call is being recorded if you have any objections you may disconnect at this time.
I would now like to turn the conference over to your host for today's conference call. Mr. Eric Young. Please go ahead.
Thank you operator Hello.
Hello, everyone welcome to <unk> second quarter 2021 earnings conference call.
The company's results were released earlier today.
No.
Our website on the call today are <unk>.
Sure, Matt Appeal court under very hot and sample <unk>.
Today, you will reveal.
Our business operations and company highlights followed by Sandra who will discuss financials and guidance.
So there will be available to answer any questions concerning especially that follows. So before we begin I would like to remind you that this call will.
Forward looking statements made to enter the safe Harbor provisions of the private.
<unk> Securities Litigation Reform Act of 1995.
Such statements are based on management's current expectations and current market and operating conditions.
And related to the U S.
Sean or unknown risks uncertainties and other factors.
All of which are difficult.
And many of which are beyond the company's control, which may cause the company's actual results performance and achievements to differ materially from those in the forward looking statements.
Further information regarding these and other risks uncertainties and factors is included in the company's filings with the U S Securities.
And exchange Commission to.
The company does not undertake any obligation to update any forward looking statements as a result of new information future events or otherwise except as required under law.
With that I will now turn the call over to our chairman and CEO Mr. Leslie Leslie <unk>. Please go ahead.
Thank you Eric and thank you for joining our second quarter 2000, and since they were earnings conference call.
We outpaced the total quota another strong quarter as our total revenue grow by 81% year over year and almost reached a milestone will find deep 1 billion.
Thanks to strong demand for our services and.
Our large network of workforce across the country.
Our main business lines, all development deliveries mobility associates in housekeeping solutions cargoes, a meaningful people data and access fees.
Robust growth momentum in the second quarter.
In addition, our gross profit margin quickly rebounded.
Data from the supplier quarter at labor costs normalized to spend at a level that's a risk.
Without we achieved adjusted net income of RMB 10 million a significant improvement from the first quarter. These results reflect the economy of scale of our business model and strong execution of our multi.
Nevertheless deployment strategy.
Now, let me walk you through our key business performance in Q2.
Let's look at our biggest revenue contributor solid demand in Europe business.
As the COVID-19 pandemic remain largely under control in Q2 national wide, albeit wisdom.
Some small scale with surgeries in a few regions People's lives will generate return economics.
<unk> advantage of the solid demand for humanity British succeeds our revenues maintained healthy growth under reached RMB $942 million in Q2.
74% year over.
The trend that we see in the car in the market is at a premium delivery providers like cure or taking market share from our source providers.
This has given us a window of opportunity to aggressively expand our presence in existing markets and to penetrate new wins.
In the segment.
Second quarter of 2021, we've provided services in 1200 <unk> across 139 cities nationwide.
Compared with 950 isn't it so close across 75 cities in the same period in 2020.
For Q2 the overall.
A number of average monthly delivery orders or $45 million up 85% year over year.
On the cost side, if you recall from our last earnings call. We observed that labor shortage will make get paid after more migrant workers between the two cities up the Chinese.
Overall, new year holiday and have helped us to strike a balance in demand Dennis at higher levels, our gross margin significantly improved in Q2 on a sequential basis.
Next I would like to give you an update on our housekeeping solutions in Q2 revenue sustained its revenue growth momentum.
Chinese increasing 67% sequentially to RMB 22 billion.
We continued to expand our service capability to meet the growing demand.
In June the number of housekeeping orders from hotels increased by 120% from a quarter ago, and there's a number of rooms.
And the piece that was served by us increased by 250% from our core tobacco.
In addition to traditional housekeeping services will begin to provide more value added services to strengthen our relationship with the NFL operator clients.
We launched our proprietary <unk>.
Rooms between SaaS solution, <unk> property management system, or Tms to connect almost the operators with multiple marketing channels in the room rental platform.
And as a central hub Pms keeps.
<unk> operated in housekeeping manager is an easier way to.
Chad orders unless team.
<unk> two very user friendly they'd have authorization tourists and the real time information.
How are you thinking of this new service orders from the system PSA Tms manager is concerned the workers to serve our clients immediately.
Our mobility business, which includes the iPhone the rider billing solutions also deliberate.
The performance revenues increased by 337% year over year, and 15% quarter over quarter to RMB $26 million.
In the second quarter, the number of orders for our.
Happiness grow approximately 60% from prior quarter.
Now I want to give you some updates about the progress of our biotech scenario for <unk>.
We aim to offer the world Chris on our platform.
Got it.
In terms of the job selection by matching our skill.
Seth Panther and the increasing fee income with the module opportunities.
At the same time offering market scenario associates can enable us to achieve optimal use of resources and improve efficiency and a stable cost.
According to our statistics as a whole for Q2 2021.
The cumulative number of workers engaged into our module type on our platform reached 17700, and an additional 2000 compared with the prior quarter.
In the meantime, we continue to strengthen our mandatory occupational safety training for write.
<unk>.
Which has also led to increased income for our premium riders in Q2 2020 with writers with an average monthly income of RMB 5000 accounted for 54% of the total group compared with 45% on charcoal.
Write offs were.
We're also constantly exploring new business models and potential revenue streams in July Q4 reached a strategic cooperation agreement with Gourmet took technology.
A leading smart community Iot cloud platform.
<unk> been working together to round suppression tactics.
Subsys catering to the directory for housekeeping market.
<unk> deepened our cooperation with property management companies or coastal chip what platform and directory provider They earnings housekeeping services for meaningful households.
Yes.
Pending our service capabilities to.
Individual family.
Ted will only servicing enterprise clients.
This strategic development in line with our multi scenario deployment strategy at present, the fifth cooperation has been launched in Chengdu Changsha Shenzhen.
In conclusion lifestyle.
Australian motivated by the tremendous growth opportunities ahead of us as a way to rapidly scale our platform to meet the growing demand in their service areas.
We remain fully committed to delivering long term value and profitable growth for our shareholders.
This concludes my prepared remarks.
I will now turn the call over to our CFO will.
We will discuss our financial results for the second quarter.
Hello, everyone and welcome to <unk> second quarter 2021 call 50, remanded that that all amounts quoted here will be the NIMBY unless stated otherwise.
Our total revenues were $991.8 million, representing an increase of $81.
One.
For the year, primarily due to the rapid growth of our major business lines.
Revenues from Antimanic delivery solution for 940 coupon.
Point 2 million, representing an increase of 74, 1% from $541 million in the second quarter of 2020, primarily due to the increase in delivery of orders fulfilled as a result of the industrial growth in the aftermath of COVID-19 at our.
The penetration on the expansion into new geographic markets.
Revenues from morbidity survey solution consider.
<unk> Oh sure by coincidence Rahill solutions were $25.7 million, representing an increase of 336, 9%.
From $5.9 million and a second quarter of 2020, primarily due to our enlarged customer base and the survey scope any shared by commenting that solutions as the increase in the numbers of ride hailing drivers on our platform.
News from housekeeping and accommodation solution.
Strip Center, $1.8 million, representing a significant increase from 0.4 million second quarter authentic.
This was primarily due to our enlarged customer base for formation of housekeeping and accommodation solution.
In the hotel as part of the network.
Our synergies achieved following the activation of lilac to home.
Cost of revenues was nine.
920 million represent an increase of <unk> 88 at 8% year over year, primarily attributable to increased labor costs in line with our country.
Business expansion.
General and administrative expenses were $84.7 million, representing an increase of 187, 2% from $79.5 million in the second quarter of incentive plans. The increase was primarily due to the increase.
In one share based compensation from 1 million in second quarter of 2020 to $44.4 million in second quarter 2021 and two.
Professional service expenses, excluding share based compensation, the general and administrative expenses increased by.
But at two 9% year over year and as a percentage of revenues declined to four 1% from.
Five one.
In the second quarter of chassis plenty.
We must test unit cost savings along with business growth rate.
Research and development expenses.
$4.5 million, representing an increase of 63.6 Brown shoe Polish selling day in the second quarter of <unk>.
Collaborate due to the increase in compensation for research and the development that is a program that.
The operating loss was $14.7 million compared to operating.
Operating profit of $29.6 million in second quarter of 2020.
Excluding share based compensation that did just can't offer into <unk>.
Profit to what Chuck and I, applaud 7 million relatively stable as compared to 39.
Recall that last year.
Okay.
You have to work hard at other loss net of <unk> 7 million, which compared to other income net $3.6 million in the second quarter of last year, primarily due to the decrease in fair value change of investments in our mutual funds.
Income tax expense was $11.2 million.
Also in relatively stable as compared to $11.5 million in second quarter of 2020.
Adjusted EBITDA was $29.1 million, representing a significant improvement.
Adjusted EBITDA loss of $78.5 million in first quarter of 2021.
The.
Net income was $9.9 million also representing a significant improvement from adjusted net loss of <unk>.
$9.3 million and the first quarter of 2021.
We're going to endeavor to improve our profitability further going forward.
Our guidance for third quarter of.
Our 2021, we expect total revenues to be in the range of $1.1 billion to one 2 billion, representing an increase of 43% to 56% year over year. The forecast reflects our current and preliminary views on the market and operational conditions, which.
Which is subject to change.
This concludes our prepared remarks, thank you for attention and we're now happy to take our questions. Operator. Please go ahead.
Thank you ma'am.
Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question. Please press star followed by.
One on your telephone keypad and wait for your name to be announced if you wish to cancel your request. Please press the pound or hash key.
Once again Thats star followed by the number one on your telephone keypad and wait for your name to be announced.
Yeah.
We have the first question.
From the line of.
Dylan.
Has how snow from Roth capital. Please ask your question.
Okay.
Hey, good morning. Good afternoon. Thanks for taking my question first on sort of the multi stereo deployment I'm pretty good numbers there.
Increasing like 2000.
Workers quarter over quarter could you talk a little bit about.
One how many cities that you're in now I think on the last call. You said it was 48, and then where do they stand in terms of which services, they're doing I mean I'd have to guess the main ones.
Food delivery, but is there any second one where the majority of that multi scenarios being deployed.
Yeah. Thanks for the question unless they see let's see.
Usually that Oh, we have two types of pool.
Our deployment, which is mainly in the cost deposits.
We call these peak and lower time for <unk>.
<unk> consumers scenarios for example, under our rider for the theater, there usually BBC now time end of humankind.
In the morning, and afternoon time nominally as it can be sent to.
There was a workforce share by maintaining so Russell.
Sure.
Multiple making payments for it.
And on the other side of a housekeeping on the solution and they usually and workers are female.
And they can walk for the hotel for us.
Non premium.
Noon time and.
You mean, Cai minor detail, what's core likes the KFC or other restaurants suppose the restaurant cleaning. So anomalies that is the two major types of markets.
And now we also has been what can we scan it.
Technology in new ways.
Started to deal with it. So this is for the family units.
So what time are immediately happened in pharma market scenario.
Choose platform. Thank you.
Got it.
And also on the food delivery side, what was average order value in the quarter.
Sorry.
The country I don't have clarity.
Can repeat it.
Sure.
Average order value.
Our average revenue per order I guess is the way they used to find out in the past.
On the food delivery side I think you had in Q1, it was roughly $7 seven.
RMB seven five RMB.
Yeah for Q2, the average revenue per order and southern RV.
Yeah.
Okay.
Okay.
Got it and then.
So a good lift in gross gross profit margin this quarter compared to Q1.
How confident are you that you can continue to grow that set than seven.
0.2 figure back to sort of I.
I guess, you know where you were this time last year and in the you know 10% to 11% range.
Ethylene measure for the first calls I'm glad to hear what the a special culture of Jude.
No the stay at home policy in China as it the Spring Festival.
Hum.
Obama live commentary as far as are we all kind of such ways. We can see that the gross margin I, it's fashion shoe novel check them.
For our part on that too.
Chewy I'll show cultures, I I'm afraid I can't see you love them gave.
Accuray's or specific guidance, Florida gross much of us.
That's won't be there.
It won't be.
Muscular restaurant base quarter, but.
So while it.
It may not be that much compared to the comparator last year, especially the third call it turns off.
Got it and my last one for me.
On the housekeeping side.
Have you looked into adding any more partners that can help you.
That's really really ramp up your scale, both geographically and in different penetrations in the cities you're already in.
[noise], yes, and actually the faithful housekeeping side that we are doing in two ways on the one way to use it in a way.
You book of course, then 15 housekeeping items.
And I'll ask it somewhat now use our management team on to use our nonstandard work home.
Help them to get to the work that.
It gets the business and also to help them to manage the.
So season.
William Diet, a week schedule at the property.
Our property.
Companies.
Oh wait what can waste some several adopting many of income things on the tool together to get either into service four directly to home housekeeping.
And therefore this property management company, you can see already manage Yahoo.
Just couple of allele and if they are on hold for the household and if they can reach.
Yeah, that'd be mindlessly cannot meet so during these kind of cooperation and if he can provide our sixties Tuesday.
Can't say existing policy holders in the subway area.
So that's the two major ways for condensate all week and I want to kind of seen a faster way, we're using our Toledo cooperation wakes up probably 15 property management companies and also wait together, you'll walk away 15 hotel could be provided.
Violence.
On the other side, who will be on the beef side, we use our payment system to connect the tools up.
Hum.
The two the property owners and help them to better against the others from different.
Zetia platforms and provide the services to them. So in conclusion I like finishing these kids always we connect the deeper into the sources and based on our.
So I'll walk on call company Senior management.
Management and the technology development Yep. Thank you.
Yeah.
Okay. That's it for me thank you.
Okay.
Once again, 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 announced we have the next question from the line of Georgia.
Cause furnace from.
Exclusive capital. Please ask your question.
Yeah.
Yeah, Hi.
Even though your.
Mobile service solutions housekeeping your accommodation, they're growing very very fast there.
Very.
Timing or very very small I would say part of your overall revenue mix. My question is and give us some color. If these two segments will continue to grow as you have seen over the past year or so I mean.
And so far as housekeeping was partially answered by the previous.
Color, but.
And so far.
The overall growth picture do you see these two segments growing.
And the same way over the next year or so.
Yeah.
Okay.
I think it's.
Still a power side.
These two segments some housekeeping on the mobility without providing very spot on as we can see as a part of a few quarters and we tell you expect that even faster growing fee income.
First of all time.
Powering ways.
If we considering the matched for housekeeping and mobility kind of thing in China and trade that Genocea more light. So we called it a 15 business the volume.
So when we approach the whole market, we used car plate and.
Lumpiness emerge in a way that's the fastest way for us to consolidate these three sources in Charlotte and.
And then we can empower with our technology, our confidence in our management company and so.
We expect the best two sectors. So we all have much.
You took the OEM pays.
The reason why we can what's the reason that's a reasonable way of all the buildings. They are small because at the same time for our major business to like a pretty good rate you still keep them faster growing speed. So that's why it's wade.
Putting them together, we cannot see that maybe theatrical small, but growing speed and we expect that as he can contribute especially for this year and Oh, we all have a certain significant percentage of our total revenue.
Thank you.
Thank you just a small follow up.
You have an estimate of the Tam total addressable total addressable market.
Of these two segments in the markets you serve is there some sort of estimate you guys have come up with.
Yeah.
Okay.
Yeah, I mean, not not know if China, just you know where you do business I mean, if you have that song.
Okay.
Especially for all said keeping.
My feet I think these are very large.
And we call these are.
In Chinese we call it the one.
So I would trade at B dubs patrons.
Cheering them on.
<unk>.
That is because of COVID-19.
This sector is not just the full enterprise service needs in fact, largely demand days and five household of family units currently in this market in various segmental and especially for household playfirst and the facilities from.
With standard therapies.
The all housekeeping, but unfortunately their income.
Sales in this market anomalies individual and they provide a service for this past quarter.
<unk> spend and the varied from keeping the people. So we can see that this is the large market and did not require.
Another requested by our enterprise clients and also even very needed by household and they want the standard service and then they don't want to replace their.
Housekeeping.
These people very frequently because it will cost to match for them.
And for mobility services.
That is in crude and not only for us.
Nick.
We caught it in ride hailing and also include a share of the bike.
So it include a share the multiple.
Good for this sector.
For these three sectors.
And they are growing very fast in China, especially we can say that for the ride hailing side and therefore the share of the bike side.
And maybe this ties a little bit smaller than the housekeeping side, but we still consider that is the bidding market yep. Thank you.
Thank you.
Yeah.
Once again, 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 announced.
Okay.
Okay.
Once again, 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 announced.
Yeah.
Once again, 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 announced.
Okay.
Once again, 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 announced.
Yeah.
Yeah.
Ladies and gentlemen.
There are no further questions.
That concludes today's conference call.
Thank you for participating.
All disconnect.