Uxin Ltd (NASDAQ:UXIN) has announced its first quarter 2019 unaudited financial results. The company has indicated that starting from Q1 2019; it will only be disclosing the transaction volumes.
Q1 financial results
Uxin reported total revenue in Q1 2019 of around $149.1 million, which reflects a 54.6% year-over-year growth. The 2C cross-regional business grew 54 times with revenue in the quarter is $42.2 million while 2C intra-regional business saw a 33% year-over-year increase in revenue to $88.9 million. The company’s 2B business generated $10.3 million in the quarter, reflecting a 36.2% decline from a year ago.
Gross profit grew by 65.6% compared to Q1 2018 to around $105.1 million while gross margin increased to 70.5% from 65.8% last year. Loss from operations in the quarter was $38.8 million while Non-GAAP adjusted loss from operations was $30.8 million. Net loss in Q1 2019 decreased from 129.3% to 28.4% of total revenues to around $42.3 million. The company reported a non-GAAP adjusted net loss for q1 2019 of 23.0% of total revenue, which is a drop from 73.6% that was reported in 2018.
Revenue was driven by cross-regional business
CEO and founder of Uxin, Kun Dai stated that the company had a strong quarter with revenue exceeding the company’s high-end guidance. He said that the 2C cross-regional business continued with the strong growth momentum that was reported in Q4 2018 with a transaction volume of more than 20,000 used cars in Q1 2019 which is a 50 times increase from last year. The cross-regional business is vital to the growth of the company’s 2C business with crosses transactions contributing 26% of the total transaction volume and around 32% of total 2C revenues.
Uxin has evolved its business model over the years to meet consumer demand, and as a result, the company has witnessed exceptional growth in transaction volumes as well as revenues. The company is shifting its resources to cross-regional businesses where there is much potential. Uxin is also want to improve efficiency through cost control and expenditure management while at the same time adopting risk control and lay focus on used car assets that have better risk profiles.
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