MOGU Shares Are Trading Higher After Q4 Revenue Decline, GMV Growth

MOGU Inc MOGU reported a fourth-quarter FY21 revenue decline of 23.6% year-on-year to $13.9 million, missing the analyst consensus of $24.65 million.
Revenue from Commission declined 1.7% Y/Y to $10 million, and Marketing services reduced 34.5% Y/Y to $1.8 million. The declines were due to the business restructuring towards a Live Video Broadcast (LVB)-focused model.
Other revenues decreased 60.2% Y/Y to $2.1 million due to lower online direct sales.
LVB business rose 42% Y/Y to $342.7 million, and the Gross Merchandise Value (GMV) rose 6.5% Y/Y to $393.2 million.
Gross margin expanded 756 basis points to 58.3%, while the operating loss margin contracted 395 basis points to (121.4%).
Adjusted net loss declined 79.3% Y/Y to $2.5 million, translating to EPS loss of $(0.01), or EPADS loss of $(0.25).
Adjusted EBITDA loss margin contracted 4,810 basis points to 22.1%.
MOGU held $122.6 million in cash and equivalents and used $7.6 million in operating cash flow.
MOGU Chairman and CEO Chen Qi remain confident in the growth of its overall user retention rate and ARPU, as MOGU live continues to be a key growth driver and the main revenue contributor.
Price action: MOGU shares traded higher by 5.88% at $1.62 in the premarket session on the last check Friday.

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