2023-11-15
91APP (Stock code: 6741), the first native SaaS company listed in Taiwan, announced its consolidated financial results for the third quarter of the fiscal year 2023. The consolidated revenue for Q3 2023 amounted to NT$320 million, a remarkable 9% year-over-year increase, marking a historic high for the same period. Net profit after tax reached NT$110 million, reflecting a substantial 43% YoY surge, with earnings per share at NT$0.97. The cumulative consolidated revenue for the first three quarters of this year exceeded NT$9.7 billion, demonstrating an 11% YoY growth. Net profit after tax for the same period amounted to NT$290 million, showing a notable 32% YoY increase, with earnings per share at NT$2.45. The robust operational performance is attributed to the strong demand in the brick-and-mortar retail brand D2C(Direct-to-Consumer) e-Commerce and OMO (Offline-Merge-Online) strategies. Further contributing to this success are the anniversary celebrations of department stores and Double 11 warm-up events held in the latter half of the year, which have substantially elevated overall profit performance.
The momentum of Double 11 is evident, with a significant 20% growth in the overall Gross Merchandise Volume (GMV) of brand D2C e-Commerce transactions within a two-week period starting from November. This growth surpasses previous expectations and dispels the market uncertainties observed in the first three quarters. The D2C e-Commerce performance during Double 11 increased tenfold compared to regular days. Several brick-and-mortar e-Commerce brands experienced a peak in orders throughout the day, with some achieving single-day revenues in the tens of millions. While the retail e-Commerce growth in the first half of the year faced challenges due to overall market conditions, the strong revival of consumer demand during the fourth quarter, stimulated by Double 11, indicates a positive turnaround in the overall performance of brand D2C e-Commerce. The outlook for operational momentum in the fourth quarter is optimistic.
The outstanding performance of brand D2C e-Commerce during Double 11 is credited to 91APP’s precise retail AI model for member segmentation, diverse e-Commerce promotion mechanisms, efficient shopping cart systems, and enterprise-level efficiency and Service Level Agreement (SLA) that facilitated smooth and normal transactions. In addition to the significant gains for brand customers, 91APP’s operations during Double 11 also benefited from adopting next-generation cloud technology, effectively reducing investment costs and substantially improving overall system efficiency. Even with cost control measures in place, 91APP supported a traffic growth of 20% compared to the same period last year.
The two major solutions, “Commerce Solution” and “Marketing Solution” provided by 91APP, create comprehensive benefits for brand customers, assisting brick-and-mortar retailers in rapid digital transformation, and accelerating the expansion and enhancement of D2C e-Commerce through OMO. Following the success of Double 11, the company is gearing up for subsequent events such as Double 12, Christmas, and New Year’s, with 91APP poised to continue supporting brands. The expectation is that the D2C e-Commerce performance will reach new heights in the fourth quarter, with continuous support from festive events.