Shares in Ucommune International (Nasdaq: UK) dipped as low as 5% Monday on the company posting a wider loss in the first quarter.
The Chinese co-working space provider said in a statement today that it generated $36.69 million in revenue in the three months ending March, up 18% year-over-year.
Ucommune’s marketing and branding services, as well as other service segments, helped drive the top-line growth in the quarter.
Both segments surged 98% and 110% year-over-year in the quarter. That came in despite workspace membership services revenues slipping 31% in the quarter as a result of the company closing its unprofitable spaces and decline of coworking space services.
Also, the Beijing-based company has continued to grow its “asset-light model" in recent quarters.
“Our asset-light model also continued to gain traction, with its total number of spaces under contract recording triple-digit year-over-year growth for the third quarter in a row,” Daqing Mao, the founder of Ucommune said in the company’s financial release today.
“We will continue to channel resources towards the development of our asset-light model, refine our services, and cultivate more vibrant communities of urban professionals to support the transformation in how people work and generate more sustainable shareholder value."
However, investors appeared to be focused on one thing only today, and that was Ucommune’s first-quarter net loss of 126.84 million yuan ($19.36 million), which widened from 82.90 million yuan in the same period in the preceding year.
“We will remain focused on accelerating our business transformation to enhance our overall profitability and augment our corporate development,” Cheong Kwok Mun, the chief financial officer said.
Recently, Ucommune signed a merger deal with Guangdong Wanhe Green Technology Co., Ltd. to help cut carbon emissions in its office spaces.
For the second quarter, Ucommune is forecasting to generate revenue in the range of 240 million yuan to 260 million yuan ($40.64 million). That would represent a year-over-year increase of between 24% and 34%, respectively.