BlueCity Holdings Limited (BlueCity), a leading Chinese online LGBTQ platform, reported increasing revenues and more monthly active users in its unaudited financial results for the second quarter ending June 30, 2020 released Wednesday. It is also its first earnings release since BlueCity listed on NASDAQ on July 8.
Total revenues reached 247.4 million yuan (US$35 million), an increase of 32.2% from the same period in 2019.
Revenues from membership services reached 15.8 million yuan (US$2.2 million), a year-on-year growth of 129.6%. The increase was primarily due to the rapid development of the BlueCity’s membership services offerings, according to the company.
Revenues from live streaming services reached 210.2 million yuan (US$29.8 million) in the quarter, a year-on-year increase of 25.2%.
Net loss was 3.3 million yuan (US$ 500 thousand), compared with net loss of 12.2 million yuan in the second quarter of 2019.
“We got off to a great start as a newly public company despite challenges related to COVID-19 and geopolitical uncertainties,” Li Zhiyong, BlueCity’s chief financial officer commented. “We are pleased to deliver a strong quarter with solid operational and financial growth.”
Monthly active users on the Blued mobile app reached 6.4 million, an increase of 11.2% from the same period in 2019.
Total paying users on the Blued mobile app, the total number of users who paid for virtual currency and membership services, reached 458,000, an increase of 58.5% compared with 289,000 in the second quarter of 2019.
In August, BlueCity completed the acquisition of LESDO, a leading location-based social networking service provider targeting the lesbian community in China.
“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,” Ma Baoli, BlueCity’s founder, chairman and CEO commented.
For the second half of 2020, BlueCity expects total revenues to be between 575 million yuan and 615 million yuan, representing a year-over-year revenue growth of 35% to 44%. This forecast reflects the company’s current and preliminary views on the market and operational conditions, which are subject to change, according to BlueCity.
China is home to the world’s largest lesbian, gay, bisexual, and transgender (LGBT) population. Until a decade ago, LGBT people were an invisible and hidden population in Chinese society. Although legal persecution was repealed in 1997, discrimination against LGBT people still exists, according to a LANCET report.
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.