So Young International : Young Reports Fourth Quarter 2019 Unaudited Financial Results
March 23, 2020 at 05:38 am EDT
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BEIJING, China, March 23, 2020 (GLOBE NEWSWIRE) -- So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”), the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2019.
Fourth Quarter 2019 Financial Highlights
• Total revenues were RMB358.2 million (US$51.4 million1), a 95.7% increase from the same period of 2018 and exceeding the high-end of the Company's previous guidance of RMB340 million.
• Net income was RMB69.9 million (US$10.0 million), a 71.4% increase from RMB40.8 million in the same period of 2018.
• Non-GAAP net income2 was RMB86.4 million (US12.4 million), a 86.5% increase from RMB46.3 million in the same period of 2018.
Fourth Quarter 2019 Operational Highlights
• Average mobile MAUs were 3.67 million, an increase of 120.1% from 1.67 million in the same period of 2018.
• Total number of purchasing reservation service users were 188,300, an increase of 50.7% from 124,900 in the same period of 2018.
• Number of paying medical service providers on So-Young’s platform were 3,378, an increase of 28.8% from 2,622 in the same period of 2018.
• Number of medical service providers subscribing to information services on So-Young’s platform were 2,138, an increase of 30.0% from 1,644 in the same period of 2018.
• Aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform was RMB1,077.5 million, an increase of 66.6% from RMB646.8 million in the same period of 2018.
Fiscal Year 2019 Financial Highlights
• Total revenues were RMB1,151.6 million (US$165.4 million), an 86.6% increase from RMB617.2 million in the same period of 2018.
• Net income was RMB176.7 million (US$25.4 million), a 220.8% increase from RMB55.1 million in the same period of 2018.
• Non-GAAP net income was RMB280.9 million (US40.4 million), a 247.1% increase from RMB80.9 million in the same period of 2018.
“Our results this quarter and throughout 2019 reflect the tremendous progress we have made in strengthening our platform and our ability to innovate, adapt and execute in a rapidly changing environment,” commented Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young. “We made several strategic changes to enrich our growing and vibrant community of users and medical aesthetic professionals that led to a 96% increase in revenue year-over-year, exceeding the high end of our guidance. Building on this, our goal for 2020 is to create a more diverse, engaging and high-quality content portfolio that will dominate the mindshare of users. This will increase user stickiness to our platform and allow for them to seamlessly and efficiently move through the entire decision-making process.”
“The outbreak of COVID-19 has been a challenge for the global economy and I want to thank all our employees for their dedication and hard work during this difficult time to ensure business continuity. We ensured that our efforts focused on upgrading all our online features so that our users could receive the same quality service throughout the period. We are seeing demand for one of our new features, Live Video Diagnosis, accelerate in the past two months which allows doctors and consultants bring the consultation process online where it helps users get more direct and targeted advice for decision making. Our ultimate aim is to cultivate the most relevant and trustworthy content in our community so that our users have easy access to the full life cycle of the beauty journey.”
“We strategically deployed resources towards optimizing the overall user experience while driving greater operational efficiency and profitability during the quarter which resulted in a 71% year-over-year increase in net income,” added Mr. Min Yu, Chief Financial Officer of So-Young. “We will continue to be strategic in monetizing services across our platform and leverage synergies being created across our community of users to drive profitability in the long-run. We are creating a more diverse, engaging and high-quality content portfolio and despite the current challenging macro environment, the fundamentals and long-term drivers of our business remain very strong.”
Fourth Quarter 2019 Financial Results
Revenues
Total revenues were RMB358.2 million (US$51.4 million), an increase of 95.7% from RMB183.0 million in the same period of 2018.
Information services revenues were RMB264.5 million (US$38.0 million), an increase of 108.2% from RMB127.1 million in the same period of 2018. The increase was primarily attributable to an increase in average revenue per medical service provider as they increasingly allocate a larger proportion of their marketing budgets to So-Young’s platform.
Reservation services revenues were RMB93.7 million (US$13.5 million), an increase of 67.4% from RMB55.9 million in the same period of 2018. The increase was primarily due to an increase in the number of purchasing users.
Costs of Revenues
Costs of revenues were RMB58.5 million (US$8.4 million), an increase of 85.0% from RMB31.6 million in the fourth quarter of 2018. The increase was primarily due to an increase in event organization cost and personal related cost. In addition, cost of revenues included share-based compensation expenses of RMB4.1 million (US$0.6 million) during the fourth quarter of 2019, compared to RMB0.3 million in the corresponding period of 2018.
Operating Expenses
Total operating expenses were RMB222.9 million (US$32.0 million), an increase of 89.5% from RMB117.6 million in the fourth quarter of 2018.
Sales and marketing expenses were RMB132.2 million (US$19.0 million), an increase of 106.9% from RMB63.9 million in the fourth quarter of 2018. The increase was primarily due to an increase in expenses associated with marketing campaigns and user acquisition initiatives. Sales and marketing expenses for the fourth quarter of 2019 included share-based compensation expenses of RMB2.4 million (US$0.3 million), compared to RMB0.2 million in the corresponding period of 2018
General and administrative expenses were RMB36.0 million (US$5.2 million), an increase of 29.6% from RMB27.8 million in the fourth quarter of 2018. The increase was primarily due to an increase in personnel related expenses. General and administrative expenses for the fourth quarter of 2019 included share-based compensation expenses of RMB5.1 million (US$0.7 million), compared to RMB4.5 million in the corresponding period of 2018
Research and development expenses were RMB54.7 million (US$7.9 million), an increase of 110.8% from RMB26.0 million in the fourth quarter of 2018. The increase was primarily a result of costs associated with increased hiring to support product development which is in line with the Company's strategy of strengthening its technology and big data analysis capabilities. Research and development expenses for the fourth quarter of 2019 included share-based compensation expenses of RMB4.9 million (US$0.7 million), compared to RMB0.6 million in the corresponding period of 2018.
Income Tax Expense
Income tax expenses were RMB29.0 million (US$4.2 million), compared with RMB0.8 million in the same period of 2018, primarily due to an increase in taxable income during the fourth quarter of 2019.
Net Income
Net income was RMB69.9 million (US$10.0 million), compared with RMB40.8 million in the fourth quarter of 2018.
Non-GAAP net income
Non-GAAP net income, which excludes the impact of share-based compensation expenses was RMB86.4 million (US$12.4 million), compared to RMB46.3 million in the same period of 2018.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB0.68 (US$0.10) and RMB0.65 (US$0.09), respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB0.17 and RMB0.15 in the same period of 2018.
Fiscal Year 2019 Financial Results
Revenues
Total revenues were RMB1,151.6 million (US$165.4 million), an increase of 86.6% from RMB617.2 million in fiscal year 2018.
Information services revenue were RMB833.4 million (US$119.7 million), an increase of 100.8% from RMB415.1 million in fiscal year 2018. The increase was primarily attributable to an increase in average revenue per medical service provider as they increasingly allocate a larger proportion of their marketing budgets to So-Young’s platform.
Reservation services revenue were RMB318.2 million (US$45.7 million), an increase of 57.4% from RMB202.1 million in fiscal year 2018. The increase was primarily due to an increase in the number of purchasing users.
Costs of Revenues
Costs of revenues were RMB198.6 million (US$28.5 million), an increase of 116.9% from RMB91.6 million in fiscal year 2018. The increase was primarily due to an increase in personnel related expenses. In addition, cost of revenues included share-based compensation expenses of RMB12.8 million (US$1.8 million) compared to RMB1.4 million in 2018.
Operating Expenses
Total operating expenses were RMB807.8 million (US$116.0 million), an increase of 69.5% from RMB476.5 million in fiscal year 2018.
Sales and marketing expenses were RMB470.0 million (US$67.5 million), an increase of 53.4% from RMB306.4 million in fiscal year 2018. The increase was primarily due to an increase in expenses associated with marketing campaigns and user acquisition initiatives. Sales and marketing expenses for 2019 included share-based compensation expenses of RMB8.5 million (US$1.2 million), compared to RMB1.0 million in 2018.
General and administrative expenses were RMB160.5 million (US$23.1 million), an increase of 112.8% from RMB75.4 million in fiscal year 2018. This was primarily due to an increase in personnel related expenses. General and administrative expenses for 2019 included share-based compensation expenses of RMB61.6 million (US$8.8 million), compared to RMB10.1 million in 2018.
Research and development expenses were RMB177.3 million (US$25.5 million), an increase of 87.1% from RMB94.7 million in fiscal year 2018. The increase was primarily attributable to an increase in personnel related expenses. Research and development expenses for 2019 included share-based compensation expenses of RMB21.4 million (US$3.1 million), compared to RMB13.3 million in 2018.
Income Tax Expense
Income tax expenses were RMB49.7 million (US$7.1 million), compared with an income tax expenses of RMB3.2 million in fiscal year 2018, primarily due to an increase in taxable income during fiscal year 2019.
Net Income
Net income was RMB176.7 million (US$25.4 million), compared with RMB55.1 million in fiscal year 2018.
Non-GAAP net income
Non-GAAP net income, which excludes the impact of share-based compensation expenses, was RMB280.9 million (US$40.4 million), compared to RMB80.9 million in fiscal year 2018.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB1.64 (US$0.24) and RMB1.54 (US$0.22), respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of RMB1.54 in fiscal year 2018.
Cash and Cash Equivalents, Restricted Cash and Term Deposits and Short-Term Investments
As of December 31, 2019, the Company had cash and cash equivalents, restricted cash and term deposits and short-term investments of RMB2,844.0 million (US$408.5 million), compared with RMB1,206.9 million as of December 31, 2018. The increase was primarily due to net proceeds from the Company’s initial public offering in May 2019.
Business Outlook
For the first quarter of 2020, So-Young expects total revenues to be between RMB160 million (US$23.0 million) and RMB180 million (US$25.9 million). The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, particularly in view of the potential impact of the COVID-19, the effects of which are difficult to analyze and predict, which are all subject to change.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income from operations and non-GAAP net income by excluding share-based compensation expenses from income from operations and net income, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company’s core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company’s results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company’s performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.
Conference Call Information
So-Young’s management will hold an earnings conference call on Monday, March 23, 2020, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:
International:
+65-6713-5090
China:
4006-208038
US:
+1-845-675-0437
Hong Kong:
+852-3018-6771
Passcode:
8429196
A telephone replay will be available two hours after the conclusion of the conference call through 8:59 AM U.S. Eastern Time, March 31, 2020. The dial-in details are:
International:
+61-2-8199-0299
US:
+1-646-254-3697
Passcode:
8429196
Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com.
About So-Young International Inc. So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”) is the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry. The Company presents users with reliable information through offering high quality and trustworthy content together with a multitude of social functions on its platform, as well as by curating medical aesthetic service providers that are carefully selected and vetted. Leveraging So-Young’s strong brand image, extensive audience reach, trust from its users, highly engaging social community and data insights, the Company is well-positioned to expand both along the medical aesthetic industry value chain and into the massive, fast-growing consumption healthcare service market.
Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as So-Young’s strategic and operational plans, contain forward-looking statements. So-Young may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about So-Young’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: So-Young’s strategies; So-Young’s future business development, financial condition and results of operations; So-Young’s ability to retain and increase the number of users and medical service providers, and expand its service offerings; competition in the online medical aesthetic service industry; changes in So-Young’s revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online medical aesthetic service industry, general economic and business conditions globally and in China; the impact of the COVID-19 pandemic to So-Young’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and So-Young undertakes no duty to update such information, except as required under applicable law.
In China Mr. Christian Arnell Phone: +86-10-5900-1548 E-mail: carnell@christensenir.com
In US Ms. Linda Bergkamp Phone: +1-480-614-3004 Email: lbergkamp@christensenir.com
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and per share data)
As of
December 31, 2018
December 31, 2019
December 31, 2019
RMB
RMB
US$
Assets
Current assets:
Cash and cash equivalents
563,383
884,676
127,076
Restricted cash
-
16,509
2,371
Trade receivables
10,473
26,110
3,750
Receivables from online payment platforms
9,970
13,429
1,929
Amount due from related parties
850
5,815
835
Term deposits and short-term investments
643,539
1,942,860
279,074
Prepayment and other current assets
50,236
67,628
9,714
Total current assets
1,278,451
2,957,027
424,749
Non-current assets:
Long-term investments
14,813
45,980
6,605
Property and equipment, net
3,253
32,341
4,645
Deferred tax assets
30,894
35,208
5,057
Prepayment for long-term investment
11,500
-
-
Operating lease right-of-use assets1
-
144,488
20,754
Other non-current assets
1,625
14,910
2,142
Total non-current assets
62,085
272,927
39,203
Total assets
1,340,536
3,229,954
463,952
Liabilities
Current liabilities:
Taxes payable
41,552
65,605
9,424
Contract liabilities
116,967
93,725
13,463
Salary and welfare payables
71,486
100,676
14,461
Amount due to related parties
925
2,620
376
Accrued expenses and other current liabilities
71,226
166,088
23,857
Operating lease liabilities-current3
-
37,799
5,429
Total current liabilities
302,156
466,513
67,010
Operating lease liabilities-non current1
-
120,803
17,352
Total liabilities
302,156
587,316
84,362
As of
December 31, 2018
December 31, 2019
December 31, 2019
RMB
RMB
US$
Mezzanine equity:
Series A convertible redeemable preferred shares (US$ 0.0005 par value; 8,000,000 shares authorized, issued and outstanding as of December 31, 2018 and none outstanding as of December 31, 2019)
30,440
-
-
Series B convertible redeemable preferred shares (US$ 0.0005 par value; 10,476,190 shares authorized, issued and outstanding as of December 31, 2018 and none outstanding as of December 31, 2019)
99,075
-
-
Series C-1 convertible redeemable preferred shares (US$ 0.0005 par value; 1,030,126 shares authorized, issued and outstanding as of December 31, 2018 and none outstanding as of December 31, 2019)
17,769
-
-
Series C convertible redeemable preferred shares (US$ 0.0005 par value; 4,902,554 shares authorized, issued and outstanding as of December 31, 2018 and none outstanding as of December 31, 2019)
161,101
-
-
Series D convertible redeemable preferred shares (US$ 0.0005 par value; 9,750,676 shares authorized, issued and outstanding as of December 31, 2018, and none outstanding as of December 31, 2019)
422,035
-
-
Series D+ convertible redeemable preferred shares (US$ 0.0005 par value; 3,497,954 shares authorized, issued and outstanding as of December 31, 2018, and none outstanding as of December 31, 2019)
178,035
-
-
Series E convertible redeemable preferred shares (US$ 0.0005 par value; 6,164,979 shares authorized, issued and outstanding as of December 31, 2018 and none outstanding as of December 31, 2019)
487,494
-
-
Total mezzanine equity
1,395,949
-
-
Shareholders’ (deficit)/equity:
Class A Ordinary shares (US$ 0.0005 par value; 12,000,000 shares authorized, issued and outstanding as of December 31, 2018; 750,000,000 shares authorized as of December 31,2019; 69,371,718 shares issued and outstanding as of December 31, 2019)
37
221
32
Class B Ordinary shares (US$ 0.0005 par value; 144,177,521 shares authorized as of December 31, 2018; 11,290,940 shares issued and outstanding as of December 31, 2018; 20,000,000 shares authorized as of December 31, 2019; 12,000,000 shares issued and outstanding as of December 31, 2019)
35
37
5
Additional paid-in capital
-
2,799,336
402,099
Statutory reserve
-
10,562
1,516
Accumulated deficit
(394,039
)
(259,251
)
(37,239
)
Accumulated other comprehensive income
36,398
91,733
13,177
Total shareholders’ (deficit)/equity
(357,569
)
2,642,638
379,590
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity
1,340,536
3,229,954
463,952
For the Three Months Ended
For the Fiscal Year Ended
December 31, 2018
December 31, 2019
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2019
RMB
RMB
US$
RMB
RMB
US$
Revenues
Information services
127,078
264,517
37,995
415,119
833,422
119,713
Reservation services
55,935
93,657
13,453
202,107
318,215
45,709
Total revenues
183,013
358,174
51,448
617,226
1,151,637
165,422
Cost of revenues
(31,629
)
(58,511
)
(8,405
)
(91,563
)
(198,630
)
(28,531
)
Gross profit
151,384
299,663
43,043
525,663
953,007
136,891
Operating expenses:
Sales and marketing expenses
(63,876
)
(132,152
)
(18,982
)
(306,360
)
(470,033
)
(67,516
)
General and administrative expenses
(27,807
)
(36,039
)
(5,177
)
(75,442
)
(160,531
)
(23,059
)
Research and development expenses
(25,952
)
(54,709
)
(7,858
)
(94,726
)
(177,268
)
(25,463
)
Total operating expenses
(117,635
)
(222,900
)
(32,017
)
(476,528
)
(807,832
)
(116,038
)
Income from operations
33,749
76,763
11,026
49,135
145,175
20,853
Other income:
Investment income
3,032
4,144
595
5,256
8,698
1,249
Interest income
3,873
13,517
1,942
10,881
45,045
6,470
Exchange gains/(losses)
563
441
63
(8,008
)
(3,235
)
(465
)
Impairment of long-term investment
-
(4,000
)
(575
)
-
(4,000
)
(575
)
Others, net
386
8,089
1,162
990
34,776
4,995
Income before tax
41,603
98,954
14,213
58,254
226,459
32,527
Income tax expenses
(790
)
(29,009
)
(4,167
)
(3,171
)
(49,735
)
(7,144
)
Net income
40,813
69,945
10,046
55,083
176,724
25,383
Accretions of convertible redeemable preferred shares to redemption value
(35,783
)
-
-
(104,211
)
(50,219
)
(7,214
)
Net income/(loss) attributable to ordinary shareholders of the Company
5,030
69,945
10,046
(49,128
)
126,505
18,169
For the Three Months Ended
For the Fiscal Year Ended
December 31, 2018
December 31, 2019
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2019
RMB
RMB
US$
RMB
RMB
US$
Net earnings/(loss) per ordinary share attributable to ordinary shareholder - basic
0.22
0.89
0.13
(2.00
)
2.13
0.31
Net earnings/(loss) per ordinary share attributable to ordinary shareholder - diluted
0.19
0.84
0.12
(2.00
)
2.00
0.29
Net earnings/(loss) per ADS attributable to ordinary shareholders - basic (13 ADS represents 10 Class A ordinary shares)
0.17
0.68
0.10
(1.54
)
1.64
0.24
Net earnings/(loss) per ADS attributable to ordinary shareholders -diluted (13 ADS represents 10 Class A ordinary shares)
0.15
0.65
0.09
(1.54
)
1.54
0.22
Weighted average number of ordinary shares used in computing earnings per share, basic*
23,277,043
79,030,547
79,030,547
24,555,427
59,357,935
59,357,935
Weighted average number of ordinary shares used in computing earnings per share, diluted*
26,649,175
82,942,043
82,942,043
24,555,427
63,309,091
63,309,091
Share-based compensation expenses included in:
Cost of revenues
(253
)
(4,052
)
(582
)
(1,423
)
(12,752
)
(1,832
)
Selling and marketing expenses
(188
)
(2,369
)
(340
)
(1,018
)
(8,479
)
(1,218
)
General and administrative expenses
(4,489
)
(5,074
)
(729
)
(10,112
)
(61,579
)
(8,845
)
Research and development expenses
(575
)
(4,934
)
(709
)
(13,306
)
(21,401
)
(3,074
)
* Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted.
For the Three Months Ended
For the Fiscal Year Ended
December 31, 2018
December 31, 2019
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2019
RMB
RMB
US$
RMB
RMB
US$
GAAP income from operations
33,749
76,763
11,026
49,135
145,175
20,853
Add back: Shared-based compensation expenses
5,505
16,429
2,360
25,859
104,211
14,969
Non-GAAPincome from operations
39,254
93,192
13,386
74,994
249,386
35,822
GAAP Net income
40,813
69,945
10,046
55,083
176,724
25,383
Add back: Shared-based compensation expenses
5,505
16,429
2,360
25,859
104,211
14,969
Non-GAAP net income
46,318
86,374
12,406
80,942
280,935
40,352
___________________________________________________________________________________________ 1 This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the reader. Unless otherwise specified, all translations of Renminbi amounts into U.S. dollar amounts in this press release are made at RMB6.9618 to US$1.00, which was the U.S. dollars middle rate announced by the Board of Governors of the Federal Reserve System of the United States on December 31, 2019.
2 Non-GAAP net income is defined as net income excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
3 The Company has adopted ASU No. 2016-02, “Leases (Topic 842)” beginning January 1, 2019 using the optional transition method and accordingly, has not recast prior periods. The only major impact of the standard is the recognition of assets and liabilities for operating leases of approximately RMB191,236 and RMB195,563, respectively, at January 1, 2019.
SO-YOUNG INTERNATIONAL INC. is a China-based holding company mainly engaged in online destination for discovering, evaluating and reserving medical aesthetic services. The Company operates through two segments: Information Services segment and Reservation Services segment.