Youzan: Semi-annual Performance Report 2021
This week, Youzan released its performance report as of June 30, 2021.
This semi-annual report shows that Youzan’s revenue for the first half of 2021 was $123.4 million USD, down 2.5% year-on-year; operating losses were $69.4 million USD, an increase of 87.3% over the same period last year, with expanding continued losses; the SaaS subscription solutions revenue was $78.7 million USD a year-on-year decrease of 6.8%, this is as high as 63% of the revenue.
With the help of live broadcast, Youzan achieved a rapid increase in GMV in the first half of 2021. However, since the slowdown of the GMV growth and with the increase of merchant loss rate, Youzan has met its bottleneck.
Insiders claim that this lag in growth is rooted in Youzan’s identity as a tool-based product, providing only technical support and partial operations, and are therefore naturally limited.
Youzan’s revenue is mainly composed of three parts, SaaS subscription solutions, merchant solutions revenue, and other revenues.
SaaS subscription solution revenue in the first half of the year was $78.7 million USD, a year-on-year increase of 6.8%. This revenue mainly includes subscription fees for SaaS products and newly included cloud service fees starting in the second half of the year.
Merchant solutions revenue decreased by 15.2% year-on-year to $44.7 million USD. This part of the revenue was mainly value-added services, including transactions, distribution, guarantees, and other services.
In addition, the subscription fee model adopted by Youzan is also different from traditional companies. Traditional companies have adopted a project-based fee model, where R&D costs are included in the selling price, and a one-time payment is made. Youzan’s charging model is that the customer pays a subscription-based installment after the delivery of the product, which leads to increasing long billing periods.
