MOGU Inc. Q4 FY2021 earnings call

• During the past quarter, live e-commerce business showed consistent steady growth, with live e-commerce journey up 42% Y/Y to RMB2.245 billion in Q4 2021, accounting for 87.2% of total GMV. - Introduced short-live product, which enriches user shopping experience, lowers entry barriers for new users, and provides extended sales channels for KOLs and growth path for small and medium KOLs. - Financially, loss from operations improved, net loss attributable to ordinary shareholders decreased, and adjusted EBITDA improved, showcasing positive effects from optimizing customer acquisition and operating efficiencies. - Reached milestone in strategic transition to live video broadcast e-commerce company, with short video expanding the ecosystem and being a new revenue growth generator.

In the fourth quarter of fiscal year 2021, the live e-commerce business saw a 42% year-over-year increase to RMB2.245 billion, contributing 87.2% of the total GMV. For the 12 months ended March 31, 2021, total GMV was RMB13,855 million, a 18.8% year-over-year decrease. During the fiscal year 2021, total revenue was RMB182.4 million, a 42.3% decrease, with commission revenue at RMB318.6 million (down 27.3%) and marketing services revenue at RMB71.3 million (down 70.6%), primarily due to the shift towards a live video broadcast e-commerce focus.

• Cannot provide forward guidance on GMV growth at this juncture. - Optimistic about high potential of live streaming e-commerce segment and will continue to invest in the live e-commerce business to capture opportunities going forward.

Q: How should we see the competitive landscape going forward in the short video platform step up efforts in live streaming e-commerce? And how should we see the live streaming e-commerce growth rate this year for MOGU, where the new form short-live goes to the revenue curve?

A: Speaking of competition, MOGU is a live e-commerce platform, differing fundamentally from short-video platforms as it provides holistic shopping experience including reform, return, quality control, etc. Short-live is an important product feature to help KOLs grow faster, suppliers benefit, and attract consumers, with revenue to come as supply and experience diversify.

Q: About the ROI of short-live versus live, in terms of incorporating of different factors, including user interaction in the showroom, and also how many times we can repeatedly use the live short-live video?

A: Short-live has very long shelf time, with hosts' short-live from 12 months ago still viewable by audience and people still making purchases. In short-live, users can see previous product reviews for more informed decisions, leading to higher conversion rates.

Q: About the generic growth for the last quarter and for the quarter going forward?

A: China's e-commerce is extremely competitive, cannot give forward guidance on GMV growth but is optimistic about high potential of live streaming e-commerce segment and will continue to invest in the live e-commerce business to capture opportunities