MOGU Inc.

For the first quarter of fiscal 2022, MOGU reported total GMV of RMB2,864 million, down 8.2% year over year, while LVB GMV increased 14.7% year over year to RMB2.6 billion and represented 90.8% of total GMV. Total revenue fell 30.6% to RMB92 million from RMB132.5 million; commission revenue declined 23.7% to RMB65.1 million, marketing services revenue dropped 64% to RMB8.6 million, and financing solutions revenue decreased 5.1% to RMB11.3 million. Gross profit was not stated. Cost of revenue decreased 10.9% to RMB43.5 million, sales and marketing expenses fell 28.9% to RMB44 million, R&D expenses declined 24.8% to RMB21.8 million, and G&A expenses were down 1.4% to RMB23.2 million. Loss from operations was RMB98 million versus RMB94.9 million a year earlier; net loss attributable to ordinary shareholders was RMB95.5 million versus RMB88.9 million; adjusted EBITDA was negative RMB25.2 million versus negative RMB17.4 million. Cash and cash equivalents, restricted cash, and short-term investments were RMB776.3 million as of June 30, 2021, down from RMB803.1 million as of March 31, 2021. Management did not give formal next-quarter or full-year financial guidance, but said the challenging market environment may affect near-term performance and that it expects LVB to remain the main growth driver, while continuing to optimize customer acquisition costs and operating efficiency.

CEO Shark Qi Chen said the company completed its transformation into a pure-play live video broadcasting e-commerce business and is focusing on strengthening supply chains, raising product quality, and adding more fashion brands through new suppliers. He emphasized that MOGU’s early start in LVB gives it deep know-how with hosts, merchants, and suppliers, which helps keep host costs lower and supports higher user loyalty and ARPU. He also framed the Ruisha acquisition and the new repurchase authorization as signs of confidence in the long-term growth outlook.

CFO Feng Qi highlighted that the quarter’s financial comparisons are best viewed year over year and pointed to LVB’s stronger GMV growth as evidence that the strategy is working. She detailed lower revenue across commissions, marketing services, and financing solutions, and noted expenses were reduced across cost of revenue, sales and marketing, R&D, and G&A. She said cash, restricted cash, and short-term investments were RMB776.3 million at quarter-end and acknowledged the more challenging market environment could pressure near-term performance, while management continues to invest in brands and merchants, diversify revenue, and improve operating efficiency.

Analysts pressed management on rising competition, user acquisition costs, retention, and how the company’s competitive advantage would hold up. Shark Qi Chen said more players are entering the market, competition on price is intensifying, and traffic costs are rising as internet-user growth slows, but argued MOGU’s early LVB experience, low host costs, loyal users, and higher ARPU support resilience. Questions on Ruisha focused on why it matters and how it fits the platform; management said it adds 2B service capabilities, brings brand relationships, diversifies income, and will allow MOGU to serve existing brands with services such as private traffic development, forecasting, and cross-border business.