Senmiao Technology Q1 2023 Earnings Report
Key Takeaways
Senmiao Technology reported a significant increase in revenue for the first quarter of fiscal year 2023, driven by growth in automobile rental and online ride-hailing platform services. The company achieved profitability, with net income from continuing operations of $0.2 million, compared to a net loss in the prior-year period.
Total revenues increased to $2.3 million, compared to $0.4 million in the prior-year period.
Online ride-hailing platform services accounted for more than 50% of total revenues.
Net income from continuing operations was $0.2 million, compared to a net loss of $6.2 million in the prior-year period.
Earnings per share for continuing operations was approximately $0.05, compared to a loss per share of approximately $1.02 in the prior-year period.
Senmiao Technology
Senmiao Technology
Senmiao Technology Revenue by Segment
Forward Guidance
Senmiao expects continued benefits from the synergies between its two major business lines, automobile rental and online ride-hailing platform services, as primary growth drivers.
Positive Outlook
- Increased revenues from online ride-hailing platform services due to the Meituan cooperation model.
- Favorable margin profile contributing to profitability.
- Resilience of the online ride-hailing business despite COVID-19 related challenges.
- Sequential increase in the number of completed orders in July 2022.
- Cooperations with Ctrip and Fliggy to explore new markets across different platforms and into new regions and cities.
Challenges Ahead
- Challenges related to COVID-19 in some major cities.
- Temporary local lockdowns impacting the online ride-hailing industry.
- Decrease in SG&A expenses due to cost control initiatives.
- Decrease in advertising and promotion for the online ride-hailing platform services.
- Decrease in salary and employee benefits due to a reduction in the number of employees.