QH Stock: Over 11% Increase Pre-Market Explanation

By Amit Chowdhry ● Aug 25, 2021
  • The stock price of Quhuo Limited (NASDAQ: QH) increased by over 11% pre-market. This is why it happened.

The stock price of Quhuo Limited (NASDAQ: QH) increased by over 11% pre-market. Investors appear to be responding positively to the company’s second quarter 2021 unaudited financial results.

These are the highlights:

— Total revenues were RMB991.8 million (US$153.6 million), representing an 81.1% year-over-year increase.

— Revenues from on-demand delivery solutions increased 74.1% year-over-year.

— Revenues from mobility service solutions, consisting of shared-bike maintenance and ride hailing solutions, increased 336.9% year-over-year.

— Revenues from housekeeping and accommodation solutions increased 56 times year-over-year and 67.2% quarter-over-quarter.

— General and administrative expenses (excluding share-based compensation expenses), as a percentage of revenues, declined to 4.1% from 5.1% in the second quarter of 2020.

— Adjusted EBITDA was RMB29.1 million (US$4.5 million), representing a significant improvement from adjusted EBITDA loss of RMB78.5 million in the first quarter of 2021.

— Adjusted net income was RMB9.9 million (US$1.5 million), representing a significant improvement from adjusted net loss of RMB79.3 million in the first quarter of 2021.

— The number of average monthly delivery orders was 45.0 million, representing an 85.2% year-over-year increase.

— The company provided services in 1,205 business circles across 139 cities nationwide in the second quarter of 2021, compared with 952 business circles across 75 cities in the same period in 2020.

KEY QUOTE:

“We are pleased to report another strong quarter as total revenues grew by 81% year-over-year and almost reached milestone of RMB1 billion, thanks to strong demand for our services and our large workforce networks across the country. All three of our main business lines — on-demand delivery solutions, mobility service solutions, and housekeeping and accommodation solutions — cover the needs of people’s daily necessities, and saw robust growth momentum in the second quarter. At the same time, we achieved adjusted net income of RMB9.9 million, a significant improvement from the first quarter. These results reflect the economy of scale of our business model and strong execution of our multi-scenario deployment strategy. Looking ahead, we are strongly motivated by the tremendous growth opportunities as we rapidly scale our platform to meet growing demand in various service areas. We are fully committed to delivering long-term value and profitable growth for our shareholders.”

— Leslie Yu, Chairman and Chief Executive Officer of QUHUO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.