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Dec 31, 2022
Senmiao Technology Q3 2023 Earnings Report
Reported slight revenue growth primarily driven by automobile rental business, offset by lower revenue from online ride-hailing platform services due to COVID-19 outbreaks.
Key Takeaways
Senmiao Technology reported a revenue increase driven by automobile rentals, offset by a decrease in revenue from online ride-hailing platform services due to COVID-19 impacts. The company reported $1.74 million in revenues, a gross profit of $0.2 million, and a net loss of $1.0 million for the quarter.
Total revenues were $1.74 million, compared to under $1.66 million in the prior-year period.
Automobile rental business generated operating lease revenues of $0.8 million, compared to $0.5 million in the prior-year period.
Online ride-hailing platform services business generated revenues of $0.8 million, compared to $1.0 million in the prior-year period.
Net loss from continuing operations was $1.0 million, compared to net income of $0.3 million in the prior-year period.
Senmiao Technology
Senmiao Technology
Forward Guidance
Senmiao anticipates a favorable impact on its business due to China moving away from its zero COVID strategy and expects growth in its automobile rental and online ride-hailing platform services businesses.
Positive Outlook
- China's move away from its zero COVID strategy is expected to have a favorable impact.
- The company is well positioned to grow its automobile rental business.
- The company is well positioned to grow its online ride-hailing platform services businesses.
- The company continues to expand partner relationships.
- Positive cash flow from operating activities for the nine months ended December 31, 2022.
Challenges Ahead
- Online ride-hailing platform services business was significantly impacted by COVID-19 outbreaks.
- Fewer completed orders compared to the prior-year period due to COVID-19 outbreaks.
- Net loss from continuing operations was $1.0 million, compared to net income of $0.3 million in the prior-year period.
- The decrease in net income was primarily the result of a smaller gain from change in fair value of derivative liabilities related to warrants.
- Loss per share for continuing operations was approximately $0.13, compared to earnings per share of approximately $0.03 in the prior-year period.