So-Young International Inc. (SY) stock prices were up by 2.77% as of the market closing on September 9th, 2021. This brought the price per share up to USD$5.19 at the end of the trading day. Subsequent premarket fluctuations saw the stock increase by 15.22%, bringing it up to USD$5.98.
Expansion of Customer Base
The second quarter of fiscal 2020 saw SY stock report the continued growth of its customer base. This was facilitated by the insights gained by the company’s platform over the past several years in regard to popular trends and consumer behaviors. Average mobile MAUs were up to 10 million for Q2 2021, an increase of 47.5% as compared to the prior-year quarter. the company experienced a massive surge in demand for non-surgical categories. These categories made up 70% of total online reservation orders during the quarter. Accordingly, the company implemented a series of operational measures to further consolidate its potential. The company is forecasting rapid growth in the Chinese medical aesthetics industry.
Continued Growth
The company’s strong financial results indicated a substantially improved profitability. Strong user growth and the consolidation of the company’s brand name resulted in a growth of providers on its platform. The number of paying medical service providers on SY stock’s platform was up by 31.2% as compared to the prior-year quarter, with the 2021 quarter reporting a total of 4,899. The company also made significant strides in developing more popular categories, such as premium dental services.
SY Stock’s Liquidity Position
SY stock reported a solid liquidity position as of the end of the second quarter of fiscal 2021. The company had cash and cash equivalents, restricted cash and term deposits, term deposits, and short-term investments in the amount of USD$350.4 million as of June 30th, 2021. This is comparable to the USD$415.60 million reported as of December 31st, 2020.
SY Stock’s Revenue Report
Total revenues for the second quarter of fiscal 2021 came out to USD$70 million. This is a 37.7% increase from the numbers reported for the prior-year quarter. the year over year difference was largely driven by an increase in average revenue per paying the medical service provider.
Future Outlook for SY Stock
SY stock reported a promising quarter, as evidenced by the success of its financial reports for Q2 2021. The company is keen to allocate resources towards maintaining the momentum generated over the first half of fiscal 2021. Investors are hopeful that management will be able to usher inconsistent and organic growth over the long term.
