China’s top LGBTQ community platform BlueCity Holdings Ltd. (Nasdaq: BLCT) announced a 32% jump in revenue for the second quarter and its net loss in the three months through June narrowed to $500,000 from $1.8 million for the previous year.
The company said second-quarter revenue reached $35.0 million, an increase of 32.2% from the same period in 2019, driven by the rapid development of the company’s membership services offerings. Revenues from membership services reached $2.2 million, YOY growth 129.6%. Monthly active users on the Blued mobile app reached 6.4 million, an increase of 11.2% from the same period in 2019. Net loss for the quarter was 3.3 million yuan, significantly improved from the net loss of 12.2 million yuan in the second quarter of 2019.
BlueCity saw an improvement across all segments. While livestreaming service is the company’s main revenue generator, revenues from both membership services and merchandise sales have more than doubled from the same period last year.
The company also noted its acquisition of LESDO, a social networking platform for the lesbian community in China, earlier this month. So far, Blued has been especially popular among gay men, but BlueCity has made its goal to expand among the lesbian population. BlueCity is a stock with prospects. The LGBTQ community is huge and is still growing. According to the Frost & Sullivan Report, the global LGBTQ population was approximately 450 million in 2018 and is expected to grow to 591 million by 2023. The market size of the global LGBTQ market was $3,860.3 billion in 2018 by consumption expenditure and marketing expenditure and is expected to reach $5,425.9 billion by 2023, representing a CAGR of 7.0%
In addition, Bluecity is expanding in a niche market in Asia where it currently has no big competitors – most LGBTQ+ apps are location-based and don’t provide the same set of services. In addition to its social features, BlueCity provides HIV awareness and prevention, medical consultation and health services, and family planning. So far, BlueCity dominates in India, Vietnam, Thailand, and Korea.
In a statement today, Ma said, “Being a public company enables us to tell the world that we are an organization dedicated to the LGBTQ community, built hand-in-hand by both heterosexual and LGBTQ members, with a mission to make the world a better place by providing holistic services to address the lifetime needs of our community.”
The company expects to generate 575 million to 615 million yuan in revenues in the third quarter of 2020, representing a year-over-year increase of between 35% and 44%, according to the report. BlueCity completed its initial public offering on July 8, scoring net proceeds of $84.4 million. On debut day, shares in the company soared from the issue price of $16 to $35.89 per American depositary share, once again displaying interest among U.S. investors for minority group stocks. In the month since its listing, BlueCity scored two “buys” – from Tiger Securities and Loop Capital Markets. The first launched coverage with a price target of $21 per share and the latter at $20 per share. BLCT stock rose $1.05 to $16.15 per American depositary share early on Wednesday.
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