Meitu's Cosmetics-related Business Soars 1542.3% in 2022H1
- Chaileedo Press
- Sep 1, 2022
- 2 min read
Meitu, which mainly focus on beauty camera app in China, reported total revenue of 971 million yuan(about $ 141 million) for the first half of the year, up 20.49% year-on-year. It has a loss of 282 million yuan(about $40.9 million) for the period, expanding 104.54% year-on-year.
Meitu's main business is to launch a variety of solutions for the imaging industry and launch SaaS services for the beauty industry based on a large number of users. Its revenue mainly comes from online advertising, VIP subscription business, SaaS and related business, Internet value-added services, etc. As of June 30, 2022, Meitu's main product "Meitu Xiu Xiu" had 125 million monthly active users, an increase of 8.7% year-over-year, while "Beauty Camera" had 56.08 million monthly active users, a slight decline of 1.4% year-over-year. As of June 2022, Meitu's apps had more than 5 million active paid subscribers.
According to the report, Meitu's revenue grew 20.49% in the first half of the year, driven by strong growth in its key business segments, particularly its VIP subscription business and SaaS and related businesses. Among them, the VIP subscription business grew 61.4% year-on-year. The SaaS business, which focuses on helping cosmetic retailers discover popular cosmetic products and purchase them at competitive prices promptly, generated revenue of 227 million yuan(about $32.9 million), up 1,542.3% year-on-year, It accounted for 23.3% of total revenue, up from 1.7% last year.
In the first half of the year, while online advertising and VIP subscription services remained Meitu's main source of revenue, Meitu is expanding growth in other business areas to reduce its reliance on advertising revenue. As of the reporting period, its ERP solution has served more than 10,000 cosmetic companies in more than 250 regions in China.
To further expand its supply chain management SaaS business, Meitu said it will adopt a two-step plan. The first is revenue maximization, which aims to increase the volume of purchases made through supply chain management SaaS by continuing to expand its selection of big-ticket items at competitive prices and by covering more brands and product categories. The second is to expand gross margins. As its market share and influence grow, Meitu may launch premium products with higher gross margins, such as niche products, functional skin care products, and customized products.
In addition, in terms of AI skin measurement and related SaaS services, Meitu mainly provides SaaS solutions based on AI skin analysis technology to global skincare brands, medical institutions and salons through Meitu Yifu and EveLab Insight brands to help them accurately assess customers' skin quality to provide customized skincare solutions.
Looking ahead, Meitu expects continued revenue growth, which will come mostly from its VIP subscription business as well as its SaaS and related businesses. It will also adjust net profit. Meitu expressed cautious optimism that it will remain profitable for the full year of 2022.
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