vip.com (NYSE:VIPS) today released the fiscal year ended September 30th 2013 quarter unaudited financial results for the third quarter. The report shows that vip.com’s third quarter total net revenues of $383 million 700 thousand, an increase of 146.1% over last year. Third quarter net profit of $12 million, a net loss of $1 million 500 thousand for the same period last year.
earnings release, vip.com chairman and CEO Shen Ya and CFO Yang Donghao and other executives attended the conference call, read the earnings points and answer questions from analysts.
below is the main part of the Q & A Q:
analysis of Deutsche Bank: you mentioned that in the next one or two years to achieve the goal of gross margin of about 25%, now your gross margin level is close to this level, then the gross margin growth is to achieve higher goal? The second question, can you talk about the business of third party platform about vip.com’s case, this the business of vip.com’s overall gross margin will produce what kind of impact?
Yang Donghao: Yes, we are put forward about 25% of the gross margin of long-term goal, the company’s third quarter gross margin reached 24.2%, however, we feel that the gross margin is still room for improvement, may rise space is limited, after all, 24.2% is already very high. In the long run, we will focus on increasing revenue growth and gross margin, not only to improve the gross margin, but also focus on expanding market share.
on the third party platform business, we will not release the third party platform business in the third quarter of this year turnover, we can not give the expected fourth quarter results, because this business income scale is still very small compared to the overall business the proportion is very small. This business was launched in April this year, until the future volume of transactions has been substantial progress, we will publish the relevant data.
JP Morgan analyst: I have three questions. First of all, I would like to ask the current vip.com third party platform partners how many?
Shen Ya: vip.com third party platform brand partners currently a total of several hundred, because we just started in April this business, is still in the development stage.
Morgan chase analyst: second, vip.com third quarter revenue growth was strong, you mentioned the opening reasons mainly due to traffic growth, may I ask what factors to promote the third quarter revenue growth to
in addition, can you disclose your fourth quarter and next year’s user acquisition strategy, as well as next year’s traffic growth and the expected cost per user access to
Yang Donghao: vip.com’s third quarter revenue growth was mainly due to the increase in the number of active users and the total number of orders, as well as the rise in the price of each order. The third quarter, the average price per order of nearly $33, compared with the same period last year, a significant increase.