Boqii Holding Ltd (NYSE:BQ), a leading pet-focused platform in China, stock fell 7.24% (As on September 16, 11:13:44 AM UTC-4, Source: Google Finance) after the company posted better than expected topline results for the second quarter of FY 22. Operating loss was RMB9.8 million (US$1.5 million), representing a decrease of 76.4% compared to RMB41.5 million in the same quarter of fiscal year 2022. Non-GAAP net loss was RMB10.5 million (US$1.6 million), representing a decrease of 66.7% from non-GAAP net loss of RMB31.5 million in the same quarter of fiscal year 2022. EBITDA was a loss of RMB9.0 million (US$1.3 million), representing a decrease of 74.6% from a loss of RMB35.6 million in the same quarter of fiscal year 2022. Total GMV was RMB731.5 million (US$109.2 million), compared to RMB792.1 million in the same quarter of fiscal year 2022. Active buyers were 1.8 million, representing an increase of 11.4% from 1.6 million in the same quarter of fiscal year 2022. Total cash and cash equivalents and short-term investments were RMB247.4 million (US$36.9 million), compared to RMB290.9 million as of March 31, 2022.

BQ in the first quarter of FY 23 has reported the Loss per share was RMB(0.18) or $(0.03) for the quarter. The company had reported the adjusted revenue growth of 35.9 percent to RMB315.1 million ($47.04 million) in the second quarter of FY 23, beating the analysts’ estimates for revenue of $46.91 million. Gross profit was RMB 70.7 million (US$10.5 million), representing an increase of 25.3% from RMB56.4 million in the same quarter of fiscal year 2022. Gross margin was 22.4%, representing an increase of 490 basis points from 17.5% in the same quarter of fiscal 2022, which is primarily due to improvement of gross margin of private label products and increased proportion of pet supplies and health care products with higher margins.

Moreover, Operating expenses were RMB80.6million, representing a decrease of 17.7% from RMB97.9 million in the same quarter of fiscal year 2022. Operating expenses as a percentage of total revenues was 25.6%, down from 30.4% in the same quarter of fiscal year 2022. Fulfillment Expenses were RMB37.4 million, compared to RMB32.9 million in the same quarter of fiscal year 2022. The increase was primarily due to increased shipping and handling expenses, which resulted from temporary logistics price increases and transportation restrictions due to the outbreak of Covid-19 in Shanghai starting from April 2022.