BEIJING - So-Young International Inc. (NASDAQ: NASDAQ:SY), a leading online social platform for the medical aesthetics industry in China, reported first quarter earnings that surpassed revenue expectations but forecasts a decline for the second quarter.
The company announced a first quarter revenue of RMB318.3 million ($44.1 million), a 2.6% increase from RMB310.1 million in the same period last year, and above the consensus estimate of RMB300.41 million.
The company's adjusted net income for the first quarter was RMB4.1 million ($0.6 million), marking a turnaround from a non-GAAP net loss of RMB2.8 million in the first quarter of the previous year. This improvement was primarily driven by a 23.3% YoY increase in sales of medical products and maintenance services.
Despite the positive performance in the first quarter, So-Young anticipates a decrease in revenue for the second quarter of 2024, projecting it to be between RMB380 million ($52.6 million) and RMB400 million ($55.4 million). This guidance suggests a decline of 7.8% to 2.9% compared to the same period last year.
The company's CEO, Xing Jin, attributed the first quarter's success to the resilience and adaptability of their business, with growth mainly fueled by the sales of medical products and maintenance services. He also highlighted the company's progress in developing businesses that will drive future growth, such as the expansion of their model clinic network and supply chain business.
So-Young's CFO, Hui Zhao, emphasized the solid progress made by the sales of medical products and maintenance services business, which has increasingly contributed to revenue growth. Zhao also noted the company's commitment to disciplined cost controls to support a sustainable expansion of their bottom line.
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