On the evening of November 20, Beijing time, yatsen (NYSE: YSG) released its financial report for the third quarter of 2024, ending September 30: total net revenue was 0.677 billion yuan, a year-on-year decrease of 5.7%. The net loss was 0.1211 billion yuan, compared to a net loss of 0.1979 billion yuan in the same period last year; under non-us generally accepted accounting principles, the net loss was 76.6 million yuan, compared to a net loss of 0.1302 billion yuan in the same period last year.

Third quarter performance:

Total net revenue was 0.677 billion yuan (approximately 96.5 million us dollars), a decrease of 5.7% compared to 0.7181 billion yuan in the same period of 2023.

Gross profit was 0.5138 billion yuan (approximately 73.2 million us dollars), an increase of 0.2% compared to 0.5128 billion yuan in the same period of 2023. The gross margin was 75.9%, while the gross margin in the same period of 2023 was 71.4%.

Total operating expenses were 0.6552 billion yuan (approximately 93.4 million us dollars), a decrease of 12.0% compared to 0.7443 billion yuan in the same period of 2023.

Fulfillment expenses were 50.4 million yuan (approximately 7.2 million us dollars), while in the same period of 2023, it was 56 million yuan.

Sales and marketing expenses were 0.4944 billion yuan (approximately 70.4 million us dollars), while in the same period of 2023, it was 0.5117 billion yuan.

General and administrative expenses were 85 million yuan (approximately 12.1 million us dollars), while in the same period of 2023, it was 0.1518 billion yuan.

Research and development expenses were 25.3 million yuan (approximately 3.6 million USD), compared to 24.7 million yuan in the same period of 2023.

Operating loss was 0.1413 billion yuan (approximately 20.1 million USD), while the operating loss in the same period of 2023 was 0.2315 billion yuan. Based on non-GAAP measures, the operating loss was 98.5 million yuan (approximately 14 million USD), compared to an operating loss of 0.1646 billion yuan in the same period of 2023.

Net loss was 0.1211 billion yuan (approximately 17.3 million USD), while the net loss in the same period last year was 0.1979 billion yuan. The net loss rate was 17.9%, while the net loss rate last year was 27.6%. Diluted loss per American Depositary Share (ADS) for shareholders of yatsen was 1.22 yuan (approximately 0.17 USD), compared to a diluted loss of 1.81 yuan in the same period last year.

Based on non-GAAP measures, the net loss was 76.6 million yuan (approximately 10.9 million USD), while the net loss in the same period last year was 0.1302 billion yuan. The net loss rate was 11.3%, while the net loss rate last year was 18.1%. Diluted loss per American Depositary Share (ADS) for shareholders of yatsen was 0.77 yuan (approximately 0.11 USD), compared to a diluted loss of 1.19 yuan in the same period last year.

As of September 30, 2024, yatsen had cash, restricted cash, and short-term investments of 1.31 billion yuan (approximately 0.1865 billion USD), compared to 2.08 billion yuan as of December 31, 2023.

The net cash used for operating activities was 0.1759 billion yuan (approximately 25.1 million USD), compared to 0.1634 billion yuan in the same period last year.

Performance outlook:

yatsen expects total net revenue for the fourth quarter of 2024 to reach between 1.07 billion yuan and 1.18 billion yuan, a year-on-year growth of 0% to 10%.