MOGU Inc. Q1 FY2021 earnings call

• LVB business regained strong growth momentum with GMV up 72.4% YOY, contributing 72.6% to total GMV.
• Active buyers in the 12 months ended June 30, 2020, increased 37% to 3.7 million, with high stickiness (71 minutes daily, 21 days monthly, 91% 30-day repurchase rate).
• Developed comprehensive host incubation mechanism; established KOLs increased 55% YOY.
• Onboarded many supply chain partners and brand merchants, empowering KOLs with supply chain and marketing tools.
• Transition to KOL-driven and LVB-first platform is paying off with disciplined sales, marketing, and user acquisition approach.

In the first quarter of fiscal year 2021, MOGU's live video broadcasting (LVB) business saw strong growth. GMV from the LVB business increased by 72.4% year-over-year to RMB 2.3 billion, accounting for 72.6% of the total GMV. Active buyers in the 12 months ended June 30, 2020, grew by 37% to 3.7 million. Total revenue for the quarter was RMB 132.5 million, a decrease of 46.8%. Cost of revenues decreased by 19.5%, sales and marketing expenses by 57.3%, R&D expenses by 48.4%, and G&A expense by 31.2%. Loss from operations was RMB 94.9 million, and net loss attributable to shareholders was RMB 88.9 million.

• LVB business expected to continue strong growth due to market momentum and supply chain adoption.
• Disciplined approach to cost control and quality growth will continue.
• No specific breakeven date given, but working towards it with improved internal efficiency.

• Forward-looking statements subject to risks and uncertainties beyond the company's control, as detailed in SEC filings.

Q: What's the proven formula for incubating KOLs?

A: No specific proven formula; platform provides training, supply chain empowerment, and unique products to help KOLs grow.

Q: What's MOGU's competitive edge vs other platforms like Taobao, Douyin, Kuaishou?

A: Core value is helping customers make fashion shopping decisions with deeper KOL-supply chain matchmaking; other platforms are more entertainment-focused.

Q: Outlook for LVB growth and customer acquisition strategy?

A: LVB market has strong momentum, customer acquisition strategy includes diversified tactics and gameplay tools to acquire customers at lower cost.

Q: Q3 outlook and margin/breakeven?

A: Q3 focuses on expanding categories and cost control; margin improvement and breakeven goal in progress but no specific timeline provided