Yatsen Holding (YSG, Financial) has released its financial results for the third quarter ending September 30, 2024. The company reported total net revenue of 677 million yuan (approximately $96.5 million), representing a 5.7% decrease compared to the same period in 2023 when revenue was 718.1 million yuan.
The company's gross profit slightly increased by 0.2% to 513.8 million yuan (around $73.2 million), with a gross margin of 75.9%, up from 71.4% in the previous year. Total operating expenses decreased by 12% to 655.2 million yuan (about $93.4 million), down from 744.3 million yuan in the prior year.
Fulfillment expenses were 50.4 million yuan (approximately $7.2 million), compared to 56 million yuan in the previous year. Sales and marketing expenses were reduced to 494.4 million yuan (around $70.4 million) from 511.7 million yuan. General and administrative expenses also saw a decrease to 85 million yuan (about $12.1 million), compared to 151.8 million yuan in 2023. Research and development expenses were 25.3 million yuan (approximately $3.6 million), slightly up from 24.7 million yuan.
The company reported an operating loss of 141.3 million yuan (around $20.1 million), an improvement from the 231.5 million yuan loss in 2023. On a non-GAAP basis, the operating loss was 98.5 million yuan (approximately $14 million), compared to 164.6 million yuan the previous year. The net loss was reduced to 121.1 million yuan (about $17.3 million), down from 197.9 million yuan, with a net loss margin of 17.9% compared to 27.6% last year.
Yatsen's cash, restricted cash, and short-term investments totaled 1.31 billion yuan (approximately $186.5 million) as of September 30, 2024, down from 2.08 billion yuan at the end of 2023. The net cash used in operating activities was 175.9 million yuan (about $25.1 million), compared to 163.4 million yuan in the prior year.
Looking forward, Yatsen expects fourth-quarter net revenue to reach between 1.07 billion yuan and 1.18 billion yuan, indicating a year-over-year growth of 0% to 10%.
