Can Mogujie.Com's Revenue Decline Become A Straw?

On the eastern time of August 26th, mogujie.com released its unaudited results in the first quarter of fiscal year 2020 ending June 30, 2019. According to the report, mogujie.com's revenue was 249 million yuan, down 2.8% compared to the same period last year, and the net loss was about 121 million yuan in the same period, narrowing 61% compared to the same period last year, a loss of 309 million yuan in the same period last year.

From the perspective of revenue structure, mogujie.com accounted for more than half of the Commission revenue in the quarter, which was 129 million yuan, an increase of 10% over the previous year, and the revenue from marketing services was 89 million 200 thousand yuan, a decrease of 12.3% compared with the same period last year. Other income was 30 million 200 thousand yuan, a decrease of 17.3% over the same period last year. Overall, the increase in mogujie.com Commission revenue is offset by a decrease in marketing services revenue and other income.

In addition, in the number of active buyers, as of June 30th this year, the number of active buyers in mogujie.com in the past year was 32 million 700 thousand, an increase of 6% over the same period, but the ring ratio dropped slightly.

Shares fell sharply over 12.96%

Although the loss narrowed, mogujie.com's quarterly revenue declined. Mogujie.com's share price continued to decline as earnings data fell short of market expectations and after the first quarter earnings announcement was announced in 2020. In the eastern time of August 27th, the stock price of mogujie.com disk fell 3.74%, and the stock fell 12.96% at the close of the day, which was $2.62.

At the close, mogujie.com's total market capitalization was US $280 million. Compared with the $3 billion valuation in 2016 when it merged with beauty, mogujie.com's market value has shrunk dramatically.

At the end of last year, when mogujie.com listed on the New York stock exchange, its market value was $1 billion 500 million. This means that in just half a year, the market value of mogujie.com has fallen by more than 80%.

Can direct seeding become a "life-saving straw"?

Founded in 2011, mogujie.com started with the shopping guide website. Later, it was positioned to provide clothing, shoes, bags, accessories and beauty products for young women.

In the release of the earnings report, "live business" has become a key word.

According to the financial report, in the first quarter of fiscal year 2020, the GMV of mogujie.com platform was 4 billion 172 million yuan, of which GMV13.15 was 102.7% yuan. Mogujie.com's live broadcasting business GMV has accounted for 31.5% of the total GMV of the platform, nearly two times the same period last year. In addition, as of June 30, 2019, in the past 12 months, the mogujie.com platform GMV was 17 billion 514 million yuan, an increase of 12.4% over the same period last year, and the active buyers of the platform were 32 million 700 thousand, an increase of 6.3% over the same period last year, of which 2 million 700 thousand of the active buyers from the live broadcast business grew 90.4% over the same period last year.

Mogujie.com founder, chairman of the board and CEO June also said: "in the past quarter, the category of mogujie.com live business has expanded to cosmetics, jewelry, household products, lifestyle products and other fashion related categories. Direct seeding has become the most effective form of user participation and the most effective form of sales transformation.

It is understood that mogujie.com is one of the earliest platforms to broadcast live providers. In 2016, mogujie.com chose to merge with beauty and Amoy world and set up a beautiful united group. Insiders believe that mogujie.com's net loss in the season is directly related to the continuous growth of direct broadcast business.

June said that three key initiatives will continue to accelerate the development of the live broadcast business. "One is to continue to strengthen the infrastructure construction of live broadcasting business, the two is to rapidly increase the total number of active hosts and the live content that can be watched, and the three is to help anchors develop diversified monetization ways so as to better bring KOL's talents and creativity into full play."

As for mogujie.com's focus on the live broadcast, many people in the industry are asking questions. Although mogujie.com tried to broadcast business earlier, it failed to form barriers and competitiveness at the strategic level.

Now, including Taobao, Jingdong, including the electronic business platform has increased the live broadcast electricity supplier ecology, it is foreseeable that the live battle will become increasingly white hot, mogujie.com can break through and even bend overtaking, at present, it is still unknown.