So-Young International Inc. (NASDAQ:SY) Q3 2023 Earnings Call Transcript November 20, 2023 7:00 AM ET
Company Participants
Vivian Xu - IR
Xing Jin - Co-Founder, Chairman and CEO
Hui Zhao - CFO
Conference Call Participants
Thomas Chong - Jefferies
Nelson Cheung - Citi
Chloe Wei - CICC
Operator
Ladies and gentlemen, thank you for standing by for So-Young's Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management gives their prepared remarks there will be a question-and-answer session. As a reminder, today's conference call is being recorded.
I'd like to turn the meeting over to your host for today's call, Ms. Vivian Xu. Please proceed, Ms. Xu.
Vivian Xu
Thank you, operator, and thank you, everyone for joining So -Young's third quarter 2023 earnings conference call. Joining me today on the call is Mr. Xing Jin, our Co-Founder, Chairman and CEO; and Mr. Nick Zhao, CFO.
Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities and Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC, including our annual report on Form 20-F. So -Young does not undertake any obligation to update any forward-looking statements, except as required under applicable law.
At this time, I would like to turn the call over to. [indiscernible], please.
Xing Jin
[Foreign Language] [interpreted] Hello, everyone. Thank you for joining So-Young's third quarter 2023 earnings call. Our business remained resilient and delivered solid financial and operational results during the quarter, despite macroeconomic headwinds. Total revenues were RMB390 million, an increase of 19% year-over-year and in line with our previous guidance. Profitability also continued to improve, thanks to our careful management of costs. Net income attributable to So-Young International Inc. was RMB18.3 million compared with RMB2.3 million in the same period last year.
I would like to start by sharing my thoughts on where the [indiscernible]. We strongly believe that medical aesthetics market going forward will head in two directions. The first is a gradual and strong popularization of high-tier users who were less impacted by a weak macro environment and will continue to see high-quality services. In this scenario, low to mid-tier users would increasingly gravitate towards products with the best quality to cost ratio. The second is a continuation of high-speed growth of light medical aesthetics as the market continue to expand in size. We are adapting each of our business to be able to cater to both of the two scenarios.