Baozun's New Line Of Business BBM Provides Solid Q3 Revenue Contribution: Details

Chinese e-commerce solutions provider Baozun Inc (NASDAQ: BZUN) reported a third-quarter FY23 revenue growth of 4.7% year-on-year to RMB1.82 billion ($249.95 million), missing the consensus of $251.96 million.

The increase in total net revenues was mainly due to the incremental revenue contribution from BBM, a new line of business it launched in the first quarter of 2023.

Adjusted EPS loss per ADS was $(0.18) vs. the consensus loss of $(0.20).

Gross Merchandise Volume (GMV) generated from non-TMALL marketplaces and channels accounted for 40.2% of total GMV during the quarter, compared with 31.1% for 2022.

By the end of Q3, approximately 45.0% of its brand partners engaged with it for store operations of at least two channels, compared with 42.4% a year ago.

Segments: Product sales revenue improved 42.4% Y/Y to $97.02 million. Services revenue decreased 10.3% Y/Y to $152.9 million.

The adjusted operating margin loss was (5.0)% vs. 1.0% a year ago. The company held $401.7 million in cash and equivalents at the end of the quarter.

Baozun inked a Key Term Confirmation Letter with Hangzhou Location Information Technology Co regarding its equity investment in November 2023. Baozun plans to acquire 51% of Hangzhou Location's equity through capital increase and transfer.

Price Action: BZUN shares traded lower by 0.61% at $3.24 premarket on the last check Wednesday.