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Jun 30, 2022
Senmiao Technology Q1 2023 Earnings Report
Reported increased revenues and profitability due to growth in automobile rental and online ride-hailing platform services.
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
Revenue by Segment
Ride-Hailing Services Revenue
CapyFin.com 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.