Quhuo Stock Gains As Q2 Revenue Tops Consensus

Quhuo Ltd QH reported second-quarter revenue growth of 81.1% year-over-year to RMB991.8 million ($153.6 million), beating the consensus of $143.76 million.
Revenues from on-demand delivery solutions increased 74.1% Y/Y, mobility service solutions surged 336.9% Y/Y, and housekeeping and accommodation solutions increased 56 times year-over-year.
Adjusted net income was RMB9.9 million ($1.5 million), compared to RMB21 million in 2Q20.
Quhuo reported an operating loss of RMB(14.7) million or $(2.3) million, compared to an operating profit of RMB29.6 million in 2Q20.
Adjusted EBITDA improved to RMB29.1 million ($4.5 million), compared to RMB(78.5) million in Q1 FY21.
G&A expenses were RMB84.7 million ($13.1 million), increasing 187.2% Y/Y due to increased share-based compensation and professional service expenses.
Quhuo provided services in 1,205 business circles across 139 cities nationwide in Q2, compared to 952 business circles across 75 cities in the same period in 2020.
As of June 30, 2021, the company had cash and equivalents of RMB248.6 million ($38.5 million) and short-term debt of RMB141.6 million ($21.9 million).
Q3 outlook: Quhuo expects total revenues of RMB1.10 billion-RMB1.20 billion, representing an increase of 43%-56% year-over-year.
Price Action: QH shares are trading higher by 11.24% at $2.87 in premarket on the last check Wednesday.