Since the first live broadcast e-commerce model was first established in March 2016, mushroom street has made many explorations around the live broadcasting business, such as establishing deep cooperation relationship with the supply chain of clothing and beauty, building a professional anchor cultivation system - K10 system, and launching the double hundred plan and super mushroom plan and other anchor recruitment policies.
It is also because of this, despite the impact of the new crown epidemic, the live Gmv of mushroom Street still achieved a year-on-year growth of 72.4% in the first quarter of fiscal year 2021. The growth rate was 18.3 percentage points higher than the previous quarter.
In the 12 months to June 30, 2020, the number of active users of mushroom Streets live broadcasting business increased by 37% to 3.7 million. It is reported that mushroom Street will continue to promote the scale growth and stickiness of live broadcast users through brand advertising, traffic purchasing, wechat social fission and other methods.
The first quarter of fiscal year 2021 is also a nodal quarter for mushroom street. In this quarter, the proportion of commission income in the total revenue of mushroom Street exceeded 60% for the first time.
According to the financial report, in the first quarter of fiscal year 2021, the total revenue of mushroom street was 133 million yuan, 11% higher than that of 119 million yuan in the previous quarter. Among them, commission income accounted for 64.14%, reaching 85.3 million; marketing service income accounted for 18.05%, accounting for 24 million.
Industry insiders pointed out that since the establishment of the strategy of using live e-commerce as the core driving force of performance growth, mushroom street has continued to promote the adjustment of business structure. Nowadays, the commission income has replaced the marketing service revenue as the revenue pillar with an overwhelming advantage, which indicates that the business transformation of mushroom Street will be completed soon after the business transformation period, and the income will resume growth.
Loss narrowed 65.96% year on year, business conversion will be completed
In the second quarter of 2020, the cost and expense of mushroom street is 227 million yuan, which is 36% lower than that of 354 million yuan in the same period of last year.
This leads to the decrease of long tail businesses expenditure on marketing services, and has a certain impact on the commission income and advertising income of mushroom street in the short term.
The outbreak of Xinguan epidemic in 2020 will also have a certain impact on the performance of mushroom street. Although the situation of logistics interruption and home isolation in Q1 of fiscal year 2021 (from April 1, 2020 to June 30, 2020) has eased, the supply chain has not recovered to the previous level.
In addition, due to the uncertainty of peoples future income expectations caused by the epidemic, the situation of restrained consumption is particularly common, and non necessities such as clothing and beauty are affected to varying degrees.
In this epidemic, in order to help brand businesses tide over the difficulties, mogujie also introduced Commission double exemption and other profit sharing measures, which helped the businesses, but also put a certain pressure on the income side of mushroom street.
The adjusted net loss of mushroom street in the first quarter of fiscal year 2021 is 14.4 million yuan, which is 65.96% lower than that of 42.3 million yuan in the same period of fiscal year 2020. Analysts pointed out that with the continuous economic recovery under the new normal of epidemic prevention and control and the completion of the companys business restructuring, the negative factors affecting the performance of mushroom street have been basically eliminated. Next, the live broadcast will become the core driving force of mushroom street Gmv and revenue growth, and the company is also rushing to break even in a single quarter. Source: editor in charge of mass news: Chen Tiqiang_ NB6485
Analysts pointed out that with the continuous economic recovery under the new normal of epidemic prevention and control and the completion of the companys business restructuring, the negative factors affecting the performance of mushroom street have been basically eliminated. Next, the live broadcast will become the core driving force of mushroom street Gmv and revenue growth, and the company is also rushing to break even in a single quarter.