So-Young International (SY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 371.8 million, exceeding guidance despite a 3.5% year-over-year decline, driven by strong growth in medical products and maintenance services.

• Net income attributable to shareholders was RMB 20.3 million, up 11.2% year-over-year; Non-GAAP net income rose 133.1% to RMB 22.2 million.

• Sales of medical products and maintenance services grew 18.7% year-over-year, offsetting declines in other segments.

• Clinic network expanded to 17 stores, with 14 generating positive monthly operating cash flow and plans for further expansion and franchising.

• Customer retention at clinics held at 60%, with satisfaction scores of 4.98/5 and acquisition costs below industry average.

Financial highlights

• Information services and other revenues declined 8% year-over-year to RMB 263.0 million; reservation services revenue fell 18.9% to RMB 19.6 million.

• Cost of revenues was RMB 142.2 million, nearly flat year-over-year; sales and marketing expenses dropped 20.1% to RMB 114.9 million.

• G&A expenses increased 39.1% to RMB 69.9 million due to higher share-based compensation.

• R&D expenses decreased 20.6% to RMB 40.2 million, reflecting improved staff efficiency.

• Basic and diluted earnings per ADS were RMB 0.2, up from RMB 0.18 year-over-year.

Outlook and guidance

• Q4 2024 revenue expected between RMB 350 million and RMB 370 million, reflecting uncertainties in clinic expansion and ramp-up.

• Strategic focus on integrating upstream and downstream businesses to drive long-term growth and profitability.