BlueCity Enjoys 58% Paying User Growth in Q2

Second-quarter results sent BLCT shares in the green by midday Tuesday.
Aug. 24, 2021 16:48
BlueCity Enjoys 58% Paying User Growth in Q2

BlueCity Holdings Ltd. (Nasdaq: BLCT), the operator of Blued, has released its financials for the second quarter on Tuesday, showing 58% growth in paying users and doubled revenues from membership services.

In a statement today, Asia's top LGBTQ+ community app said it booked $45.2 million in revenue in the three months through June, a year-over-year increase of 18%. The majority of the revenues came from livestreaming services, but segments in which revenues surged the most year-over-year were membership services, merchandise sales, and ads, up 113%, 135%, and 68%, respectively. Net loss widened to $5.4 million.

The number of monthly active users (MAUs) rose 29% to 8.3 million, and the number of paying users overall reached 724,000 compared with 458,000 at the same time last year.

BlueCity's founder, chairman, and chief executive, Baoli Ma, noted the company's latest developments in the health sector on He Health. In addition to networking and dating, BlueCity has been expanding its health-related services. In April, He Health, BlueCity's online health service platform for men, obtained an internet hospital license.

Ma said in the statement today, "In late July, we officially launched online consultation services with dozens of doctors from China's top hospitals. Thousands of men have had consultations since launch, illustrating again the huge demand of this flourishing business sector."

In the call with analysts today, Ma expanded on the topic, saying the promotion event held last month was "very successful and brought over 50,000 participants in each live streaming session, setting our digital health strategy off to a great start with encouraging user feedback."

In addition, Ma noted the increased use and awareness of pre-exposure prophylaxis (PrEP). "The number of domestically manufactured PrEP orders triggered this quarter plus it was on shelf and soon sold out, showing the increasing awareness of HIV protection as well as a huge demand for affordable PrEP in China," Ma said. BlueCity is collaborating with local manufacturers to further increase PrEP availability and accessibility in the nation. BlueCity now provides PEP express delivery services to 55 cities in China.

Among other developments, BlueCity rolled out a new monthly service package on the Finka app which allows subscribers to see visitors to their main page and profile. That led the paying ratio to increase 5% within three months, the company said.

Ma also talked about the Live Your Pride campaign that BlueCity hosted during the second quarter on the global scale. "The campaign was extraordinarily successful attracting over 8 million users and generating over 8000 user posts across multiple social media platforms with 1.5 million of views on global TVC." In addition to China, Blued counts millions of users in India, South Korea, Thailand, Vietnam, Brazil, Japan, Mexico, The Philippines, the United States, and other countries.

Separately, BlueCity recently updated its user privacy protection and added new features such as friend-finding in different cities and location-based social networking. And BlueCity continues to look into other segments to provide new services.

"Moving forward, we will closely monitor our user's responses and remain committed to further optimize user experience, across all our platforms," Ma said in the call. "We remain committed to offerings with continued value to our community. In addition to the health services already in place, we began focusing on the psychological issues in the LGBTQ group."

BlueCity has provided an outlook for the full year, saying it expects year-over-year revenue growth of between 12% and 16%. 

"We are excited to see this strong growth, which reflects our dedication in optimizing products and cultivating our users' consumption habits. We remain committed to actively exploring new ways to enrich our product and service offerings, and are optimistic in further expanding our monetization capabilities."

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