Boqii Holding Delivers Q1 Beat; Shares Rise 3.6%

Boqii Holding Limited (BQ) reported better-than-expected fiscal 2022 Q1 results, topping both earnings and revenue estimates driven by robust performances across all segments.

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Shares of the online platform for pet products and supplies in China gained 3.6% on Friday to close at $2.60, near its 52-week low of $2.43.

The company reported an adjusted loss of $0.08 per share, beating analysts’ expectations of a loss of $0.15 per share.

Further, revenues jumped 35% year-over-year to $49.8 million and exceeded consensus estimates of $48.2 million. The increase in revenues reflected a surge in total gross merchandise volume (GMV), which increased 42.9% to $122.7 million.

Encouragingly, total active buyers grew by 27.9% to 1.6 million while average spending per user improved by 11.7%. (See Boqii Holding stock charts on TipRanks)

However, gross margins declined 60 bps to 17.5% due to higher e-commerce promotions during the 618 Shopping Festival.

Boqii’s Co-CEO and CFO Ms. Yingzhi (Lisa) Tang commented, “We are excited to see this continuous momentum of user development and remain committed to bringing in more buyers and retaining existing ones while growing their average spending over time.”

She further added, “Looking ahead, we are committed to execute on our growth strategies with a focus on quality and improved monetization capability, which we believe will bring long-term value to both our users and shareholders.”

Following the Q1 results, Roth Capital analyst Darren Aftahi reiterated a Buy rating on the stock with a price target of $8.

Overall, the stock has a Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average Boqii Holding price target of $8 implies 207.7% upside potential from current levels.