BEIJING - So-Young International Inc. (NASDAQ:SY), a prominent social community for China's medical aesthetics industry, reported fourth-quarter earnings that missed analyst expectations, despite a significant increase in revenue.
The company posted an adjusted EPS of RMB0.29, falling below the analyst estimate of RMB0.54. However, So-Young's revenue for the quarter reached RMB390.6 million, exceeding the consensus estimate of RMB367.33 million and marking a 20.1% increase from RMB325.1 million in the same quarter last year.
The company's net income for the fourth quarter was RMB17.5 million (US$2.5 million), a decline from RMB31.3 million in the same period of the previous year. The non-GAAP net income, which excludes share-based compensation expenses, was RMB35.3 million (US$5.0 million), compared to RMB38.8 million in the fourth quarter of 2022.
For the first quarter of 2024, So-Young anticipates total revenues to be between RMB290.0 million (US$40.8 million) and RMB310.0 million (US$43.7 million), which could represent up to a 6.5% decrease compared to the same period in 2023. This guidance suggests a potential decline in the company's revenue growth trajectory.
So-Young's CEO, Mr. Xing Jin, expressed satisfaction with the company's performance in 2023, highlighting the resilience and adaptability in a challenging environment. He attributed the company's success to its focus on premium services and products for high-tier users and expects new business ventures to contribute significantly to future revenue.
The company's CFO, Mr. Hui Zhao, reflected confidence in So-Young's prospects by announcing a US$25 million share repurchase program and a special cash dividend of US$0.06 per ADS, demonstrating a commitment to returning capital to shareholders while investing in growth.
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