So-Young International Sees Revenue Boost from Medical Products, Stock Soars

Zinger Key Points
  • So-Young International's Q1 revenue rose 2.6% Y/Y to $44.1M, beating estimates. Shares traded higher by 4.81% premarket.
  • Growth driven by a 23.3% increase in medical products and maintenance services sales. Expecting Q2 revenue of $52.6M-$55.4M.

So-Young International Inc SY shares are trading higher in the premarket session after reporting fiscal first-quarter results.

So-Young International reported revenue of $44.1 million, beating the analyst consensus estimate of $42.2 million. Revenues rose 2.6% year-over-year. 

The China-based consumption healthcare services provider registered GAAP EPADS of $0.01 versus the analyst consensus estimate of $0.00

Revenues beat estimates on higher sales of medical products and maintenance services from growing order volumes for cosmetic products and medical equipment.

Information services and other revenues were $28.9 million (-0.7%Y/Y), primarily due to decreased medical service providers subscribing to information services on So-Young’s platform. 

Reservation services revenues were $3.2 million (-22.3% Y/Y) primarily due to the commission rate and subsidy policy change. 

Sales of equipment and maintenance services revenues were $12.0 million (+23.3%), primarily due to increased sales of cosmetic products and medical equipment.

Average mobile MAUs were 2.0 million, down from 3.4 million a year ago. The number of paying medical service providers on So-Young’s platform was 1,160, down from 1,419 Y/Y. 

So-Young International held $186.3 million in cash and equivalents as of March 31, 2024.

Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, “Growth during the quarter was primarily driven by sales of medical products and maintenance services, which increased 23.3% year-over-year. More importantly, we made significant progress in the businesses we are developing to fuel future growth. Building on the success of our model clinic, we are on track to expand our network into core cities nationwide by the end of the year.”

Outlook: So-Young International expects second-quarter revenue of $52.6 million—$55.4 million (consensus $52.49 million).

So-Young International stock has plunged 52% in the last 12 months.

Price Action: SY shares traded higher by 7.69% at $1.12 premarket at the last check Tuesday.

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