Artificial Intelligence
LexinFintech Holdings Ltd. Reports Second Quarter 2020 Unaudited Financial Results
SHENZHEN, China, Aug. 18, 2020 (GLOBE NEWSWIRE) — LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading online consumption and consumer finance platform for new generation consumers in China, today announced its unaudited financial results for the quarter ended June 30, 2020.
Second Quarter 2020 Operational Highlights:
- Total loan originations1 in the second quarter of 2020 reached RMB41.1 billion, an increase of 57.8% from RMB26.0 billion in the second quarter of 2019.
- Total outstanding principal balance of loans1 reached RMB61.9 billion as of June 30, 2020, representing an increase of 52.4% from RMB40.6 billion as of June 30, 2019.
- Number of active users2 who used our loan products in the second quarter of 2020 reached 6.8 million, representing an increase of 65.8% from 4.1 million in the second quarter of 2019.
- Number of new active users who used our loan products in the second quarter of 2020 was 1.4 million, representing an increase of 12.3% from 1.3 million in the second quarter of 2019.
- Number of orders placed on our platform in the second quarter of 2020 was 74.6 million, representing an increase of 168% from 27.8 million in the second quarter of 2019.
- The GMV3 of our e-commerce channel amounted to RMB1.4 billion, representing a decrease of 27.3% from RMB1.9 billion in the second quarter of 2019.
- The weighted average tenor of loans originated on our platform in the second quarter of 2020 was approximately 11.4 months. The weighted average APR4 was 26.5% for the second quarter of 2020.
- Total number of registered users reached 95.3 million as of June 30, 2020, representing an increase of 90.0% from 50.2 million as of June 30, 2019; and users with credit line reached 22.7 million as of June 30, 2020, up by 68.4% from 13.5 million as of June 30, 2019.
- 90 day+ delinquency ratio5 was 2.99% as of June 30, 2020.
1 Originations of loans and outstanding principal balance represent the origination and outstanding principal balance of both on- and off-balance sheet loans.
2 Active users refer to, for a specified period, users who made at least one transaction during that period through our platform or through our third-party partners’ platforms using credit line granted by us.
3 GMV refers to the total value of transactions completed for products purchased on the e-commerce channel, net of returns.
4 APR is the annualized percentage rate of all-in interest costs and fees to the borrower over the net proceeds received by the borrower. Weighted average APR is weighted by loan origination amount for each loan originated in the period.
5 90 day+ delinquency ratio refers to outstanding principal balance of on- and off-balance sheet loans that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans on our platform as of a specific date. On-balance sheet loans that were over 179 calendar days past due and charged off are not included in the delinquency rate calculation. Off-balance sheet loans that were over 179 calendar days past due are assumed charged off and not included in the delinquency rate calculation. The Company does not distinguish on the basis of the on- or off-balance sheet treatment in monitoring the credit risks of borrowers and the delinquency status of loans.
Second Quarter 2020 Financial Highlights:
- Total operating revenue reached RMB3.0 billion. Credit-oriented services income reached RMB2.0 billion, representing an increase of 48.8% from the second quarter of 2019. Platform-based services income reached RMB419 million, representing an increase of 109% from the second quarter of 2019.
- Gross profit reached RMB968 million, representing a decrease of 11.9% from the second quarter of 2019.
- Net income was RMB419 million, representing a decrease of 33.3% from the second quarter of 2019.
- Non-GAAP EBIT6 was RMB541 million, representing a decrease of 30.3% from the second quarter of 2019.
- Adjusted net income6 was RMB453 million, representing a decrease of 32.5% from the second quarter of 2019. Adjusted net income per ADS6 was RMB2.21 on a fully diluted basis.
6 Non-GAAP EBIT, adjusted net income/(loss), adjusted net income/(loss) per ordinary share and per ADS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures Statement” and the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
“I am happy to announce a quarter of strong growth driven by our New Consumption Platform Strategy and a continuing recovery of China’s consumer market. Our efforts to serve customers’ broader consumption needs have begun to pay off, with our platform-based services income in the quarter more than doubled from a year earlier,” said Mr. Jay Wenjie Xiao, Lexin’s chairman and chief executive officer.
“We started as a consumer finance platform, and have now become a comprehensive consumption service provider, connecting our customers with financial institutions and retail merchants both online and offline. In this ecosystem, we offer not only credit services, but also membership-based privileges to our customers; we provide financial institutions with fintech services and retail merchants with consumer finance tools and customer management services. With that, we combine consumer finance, membership services, and fintech services in one ecosystem, marking a gradual evolution of our business model,” Mr. Xiao added. “As the China Banking and Insurance Regulatory Commission officially acknowledged the loan facilitation model of fintech platforms in July and domestic consumption continues to recover, we believe that Lexin is well positioned to benefit from market consolidation and further tap the potential of Chinese consumer market,” Mr. Xiao said.
“Our major key metrics for our businesses continue to improve, and we are seeing a continued recovery from the COVID-19 pandemic,” said Mr. Craig Yan Zeng, Lexin’s chief financial officer, “We performed strongly for the quarter and are very much on track to achieve our full year loan origination guidance. Our total loan originations for the quarter reached over RMB41.1 billion and we successfully returned to profitability with net income of RMB419 million. In addition, more funding partners have now accepted our loan-performance-based facilitation and servicing fee model, and we have made continued progress in lowering the borrowing rates required by our institutional funding partners.”
“In spite of the challenges in the industry and to the economy, our credit performance and credit quality continues to be stable and within our expectations,” said Mr. Ryan Huanian Liu, Lexin’s chief risk officer, “Our vintage charge-off rates7 is within expectations at approximately 4.5%, and our 90 day+ delinquency rate was 2.99% as of June 30, 2020. We expect to continue to perform strongly within the current credit cycle, and we expect that our credit statistics should begin to improve in the third quarter and in the future as we exit the current credit cycle.”
7 Vintage charge-off rate refers to, with respect to on- and off-balance sheet loans originated during a specified time period, which we refer to as a vintage, the total outstanding principal balance of the loans that are charged off during a specified period, divided by the total initial principal of the loans originated in such vintage. Please refer to vintage curve at the end of “Second Quarter 2020 Financial Results” of this press release.
Second Quarter 2020 Financial Results:
Operating revenue increased from RMB2,493 million in the second quarter of 2019 to RMB2,958 million in the second quarter of 2020. This increase in operating revenue was due to an increase in credit-oriented services income and platform-based services income for the quarter, driven by continuing increases in the number of active users on our platform, and the change of the presentation of guarantee income along with the adoption of ASC 326, partially offset by the decrease in online direct sales and services income. Before the adoption of ASC 326, gain or loss related to financial guarantee not accounted for as derivatives was recorded in one combined financial statement line item within “Gain on guarantee liabilities, net.” After the adoption of ASC 326, the gain released from the guarantee liabilities accounted for under ASC 460 is recorded as “Guarantee income” as a separate financial statement line item within revenue and the relevant credit losses are recorded as “Provision for credit losses of contingent liabilities of guarantee.”
Online direct sales decreased by 43.6% from RMB925 million in the second quarter of 2019 to RMB522 million in the second quarter of 2020. This decrease was primarily due to the decrease in the average consumer spending per order as a result of the impact of the COVID-19 pandemic during the second quarter of 2020.
Credit-oriented services income increased by 48.8% from RMB1.3 billion in the second quarter of 2019 to RMB2.0 billion in the second quarter of 2020. The increase was primarily resulted from the increase of RMB706 million due to change of presentation of guarantee income as aforementioned, partially offset by the decrease in loan facilitation and servicing fees-credit oriented.
Loan facilitation and servicing fees-credit oriented decreased by 7.7% from RMB1,009 million in the second quarter of 2019 to RMB931 million in the second quarter of 2020. This decrease was primarily due to the Company’s business strategy shift to increase the loan originations under platform-based model.
Guarantee income for the second quarter of 2020 was RMB706 million. The guarantee liabilities accounted for under ASC 460 are released from the underlying risk, i.e., as the underlying loan is repaid by the borrower or when the lender is compensated in the event of a borrower’s default.
Interest and financial services income and other revenues increased by 5.5% from RMB314 million in the second quarter of 2019 to RMB332 million in the second quarter of 2020, which was consistent with the increase in the origination of on-balance sheet loans in the second quarter of 2020.
Platform-based services income increased by 109% from RMB200 million in the second quarter of 2019 to RMB419 million in the second quarter of 2020. This increase was primarily contributed by an increase in the loan facilitation and servicing fees-performance based, partially offset by the decrease in loan facilitation and servicing fees-volume based.
Loan facilitation and servicing fees-performance based increased by 171% from RMB145 million in the second quarter of 2019 to RMB394 million in the second quarter of 2020. This increase was primarily due to an increase in the origination of off-balance sheet loans under the performance-based model within platform-based services.
Cost of sales decreased by 43.8% from RMB925 million in the second quarter of 2019 to RMB520 million in the second quarter of 2020, which is consistent with the decrease of online direct sales revenue.
Funding cost increased by 35.4% from RMB121 million in the second quarter of 2019 to RMB163 million in the second quarter of 2020, which was consistent with the increase of the funding debts to fund the on-balance sheet loans.
Processing and servicing cost increased by 158% from RMB138 million in the second quarter of 2019 to RMB356 million in the second quarter of 2020. This increase was primarily due to an increase in fees to third-party insurance companies and guarantee companies, an increase in fees to third-party payment platforms, an increase in risk management expenses, an increase in credit assessment cost, and an increase in salaries and personnel related costs.
Provision for credit losses of financing receivables decreased by 34.0% from RMB183 million in the second quarter of 2019 to RMB121 million in the second quarter of 2020. The decrease has reflected the most recent performance in relation to the Company’s on-balance sheet loans as the Company has continued to implement prudent credit assessment and risk management policies and procedures since the beginning of this year.
Provision for credit losses of contract assets and receivables increased by 130% from RMB26.4 million in the second quarter of 2019 to RMB60.8 million in the second quarter of 2020. This increase was mainly due to the significant increase in off-balance sheet loans originated as a result of the continuing growth of our business, earlier recognition of credit losses under ASC 326 as well as negative impact of the ongoing COVID-19 pandemic started in 2020.
Provision for credit losses of contingent liabilities of guarantee was RMB769 million in the second quarter of 2020. After the adoption of ASC 326 on January 1, 2020, a separate contingent liability in full amount determined using current expected credit losses (“CECL”) lifetime methodology is accounted for in addition to and separately from the guarantee liabilities accounted for under ASC 460, and relevant credit losses are recorded as “Provision for credit losses of contingent liabilities of guarantee.” Before the adoption of ASC 326, gain or loss related to such financial guarantee was recorded in one combined financial statement line item within “Gain on guarantee liabilities, net.”
Gross profit decreased by 11.9% from RMB1,099 million in the second quarter of 2019 to RMB968 million in the second quarter of 2020. The decrease in the gross profit is primarily due to the significant increase of processing and servicing cost, provision for credit losses of contract assets and receivables and provision for credit losses of contingent liabilities of guarantee.
Sales and marketing expenses increased by 3.8% from RMB316 million in the second quarter of 2019 to RMB327 million in the second quarter of 2020. This increase was primarily due to an increase in online promotional fees and advertising costs and an increase in amortization and depreciation expenses allocated to sales and marketing expense.
Research and development expenses increased by 35.0% from RMB99.7 million in the second quarter of 2019 to RMB135 million in the second quarter of 2020. This increase was primarily due to an increase in salaries and personnel related costs and an increase in amortization and depreciation expenses allocated to research and development expenses.
General and administrative expenses increased by 21.0% from RMB94.1 million in the second quarter of 2019 to RMB114 million in the second quarter of 2020. This increase was primarily due to an increase in salaries and personnel related costs and an increase in share-based compensation expenses.
Change in fair value of financial guarantee derivatives was a gain of RMB79.2 million in the second quarter of 2020, as compared to a gain of RMB114 million in the second quarter of 2019. The gain was primarily due to the realization of gains through our performance of the guarantee.
Income tax expense for the second quarter of 2020 was RMB76.6 million, as compared to income tax expense of RMB106 million in the second quarter of 2019. The decrease was consistent with the decrease of the taxable income from the same period of 2019.
Net income for the second quarter of 2020 was RMB419 million, representing a decrease of 33.3% from RMB628 million in the second quarter of 2019.
Adjusted net income for the second quarter of 2020 was RMB453 million, representing a decrease of 32.5% from RMB671 million in the second quarter of 2019.
Please click here to view our vintage curve:
http://ml.globenewswire.com/Resource/Download/bff8d4b0-45ab-4e24-bb2f-2802fc7c8d70
Outlook
Based on Lexin’s preliminary assessment of the current market conditions, the Company expects third quarter loan originations to be over RMB48 billion and reiterates total loan origination guidance for fiscal year 2020 to be between RMB170 billion and RMB180 billion. This is Lexin’s current and preliminary view, which is subject to changes and uncertainties.
Conference Call
The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern time on August 18, 2020 (7:00 PM Beijing/Hong Kong time on August 18, 2020).
Participants who wish to join the conference call should register online at:
http://apac.directeventreg.com/registration/event/6562599
Please note the Conference ID number of 6562599.
Once registration is completed, participants will receive the dial-in information for the conference call, an event passcode, and a unique registrant ID number.
Participants joining the conference call should dial-in at least 10 minutes before the scheduled start time.
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lexin.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until August 25, 2020, by dialing the following telephone numbers:
United States: | 1 855 452 5696 or 1 646 254 3697 | |
International: | 61 2 8199 0299 | |
Replay Access Code: | 6562599 |
About LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd. is a leading online consumption and consumer finance platform for new generation consumers in China. The Company provides a range of services including financial technology services, membership benefits, and a point redemption system through its ecommerce platform Fenqile and membership platform Le Card. The Company works with financial institutions and brands both online and offline to provide a comprehensive consumption ecosystem catering to the needs of young professionals in China. Lexin utilizes advanced technologies such as big data, cloud computing and artificial intelligence throughout the Company’s services and operations, which include risk management, loan facilitation, and the near-instantaneous matching of users’ funding requests with offers from the Company’s many funding partners.
For more information, please visit http://ir.lexin.com
To follow us on Twitter, please go to: https://twitter.com/LexinFintech.
Use of Non-GAAP Financial Measures Statement
In evaluating our business, we consider and use adjusted net income/(loss), non-GAAP EBIT, adjusted net income/(loss) per ordinary share and per ADS, four non-GAAP measures, as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted net income/(loss) as net income/(loss) excluding share-based compensation expenses, interest expense associated with convertible notes, and investment loss/(income) and we define non-GAAP EBIT as net income/(loss) excluding income tax expense/(benefit), share-based compensation expenses, interest (income)/expense, net, and investment loss/(income).
We present these non-GAAP financial measures because it is used by our management to evaluate our operating performance and formulate business plans. Adjusted net income/(loss) enables our management to assess our operating results without considering the impact of share-based compensation expenses, interest expense associated with convertible notes and investment loss/(income). Non-GAAP EBIT, on the other hand, enables our management to assess our operating results without considering the impact of income tax expense/(benefit), share-based compensation expenses, interest (income)/expense, net, and investment loss/(income). We also believe that the use of these non-GAAP financial measures facilitates investors’ assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP.
These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using adjusted net income/(loss) and non-GAAP EBIT is that they do not reflect all items of income and expense that affect our operations. Share-based compensation expenses, interest expense associated with convertible notes, income tax expense/(benefit), interest (income)/expense, net, and investment loss/(income) have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted net income/(loss) and non-GAAP EBIT. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.
We compensate for these limitations by reconciling the non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
Exchange Rate Information Statement
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.0651 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2020. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
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. Statements that are not historical facts, including statements about Lexin’s beliefs and expectations, are forward-looking statements. 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 expectation of its collection efficiency and delinquency, business outlook and quotations from management in this announcement, contain forward-looking statements. Lexin may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), 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. 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: Lexin’s goal and strategies; Lexin’s expansion plans; Lexin’s future business development, financial condition and results of operations; Lexin’s expectation regarding demand for, and market acceptance of, its credit and investment management products; Lexin’s expectations regarding keeping and strengthening its relationship with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Lexin’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Lexin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
LexinFintech Holdings Ltd.
IR inquiries:
Tony Hung
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: [email protected]
Media inquiries:
Limin Chen
Tel: +86 (755) 3637-8888 ext. 6993
E-mail: [email protected]
SOURCE LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd. Unaudited Condensed Consolidated Balance Sheets |
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(In thousands) | As of | |||||||
December 31, 2019 | June 30, 2020 | |||||||
RMB |
RMB | US$ | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 2,085,234 | 1,164,805 | 164,867 | |||||
Restricted cash | 1,813,855 | 2,933,323 | 415,185 | |||||
Restricted time deposits | 1,962,293 | 2,305,679 | 326,348 | |||||
Short‑term financing receivables, net of allowance for credit losses of RMB318,262 and RMB680,367 as of December 31, 2019 and June 30, 2020, respectively |
3,752,690 | 4,718,582 | 667,872 | |||||
Loans at fair value | — | 349,627 | 49,486 | |||||
Accrued interest receivable, net of allowance for credit losses of nil and RMB1,681 as of December 31, 2019 and June 30, 2020, respectively |
54,284 | 94,359 | 13,356 | |||||
Prepaid expenses and other current assets | 1,324,924 | 1,140,670 | 161,451 | |||||
Amounts due from related parties | — | 941 | 133 | |||||
Deposits to insurance companies and guarantee companies | 1,251,003 | 1,158,325 | 163,950 | |||||
Short-term guarantee receivables, net of allowance for credit losses of RMB49,833 and RMB26,788 as of December 31, 2019 and June 30, 2020, respectively |
1,183,278 | 1,070,012 | 151,450 | |||||
Short-term contract assets and service fees receivable, net of allowance for credit losses of RMB94,894 and RMB62,644 as of December 31, 2019 and June 30, 2020, respectively |
2,971,976 | 3,160,563 | 447,349 | |||||
Inventories, net | 106,781 | 55,652 | 7,877 | |||||
Total current assets | 16,506,318 | 18,152,538 | 2,569,324 | |||||
Non‑current assets | ||||||||
Restricted cash | 86,537 | 147,915 | 20,936 | |||||
Restricted time deposits | 4,350 | 10,594 | 1,499 | |||||
Long‑term financing receivables, net of allowance for credit losses of RMB55,283 and RMB44,249 as of December 31, 2019 and June 30, 2020, respectively |
658,798 | 341,378 | 48,319 | |||||
Long-term guarantee receivables, net of allowance for credit losses of RMB750 and RMB5,698 as of December 31, 2019 and June 30, 2020, respectively |
281,699 | 227,612 | 32,216 | |||||
Long-term contract assets and service fees receivable, net of allowance for credit losses of RMB2,845 and RMB13,326 as of December 31, 2019 and June 30, 2020, respectively |
482,875 | 362,578 | 51,320 | |||||
Property, equipment and software, net | 92,553 | 106,117 | 15,020 | |||||
Land use rights, net | — | 1,017,667 | 144,041 | |||||
Long‑term investments | 511,605 | 510,444 | 72,249 | |||||
Deferred tax assets | 157,138 | 557,518 | 78,912 | |||||
Other assets | 454,421 | 483,073 | 68,375 | |||||
Total non‑current assets | 2,729,976 | 3,764,896 | 532,887 | |||||
TOTAL ASSETS | 19,236,294 | 21,917,434 | 3,102,211 | |||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Accounts payable | 201,837 | 59,320 | 8,396 | |||||
Amounts due to related parties | 40,804 | 53,729 | 7,605 | |||||
Short‑term borrowings | 1,977,691 | 2,442,215 | 345,673 | |||||
Short‑term funding debts | 3,755,528 | 4,651,585 | 658,389 | |||||
Accrued interest payable | 87,003 | 92,071 | 13,032 | |||||
Guarantee liabilities(1) | 1,726,368 | — | — | |||||
Deferred guarantee income(1) | — | 1,053,553 | 149,121 | |||||
Contingent guarantee liabilities(1) | — | 2,590,402 | 366,648 | |||||
Funds payable to individual investors | 618,749 | 1,292,863 | 182,993 | |||||
Accrued expenses and other current liabilities | 1,394,639 | 2,081,547 | 294,624 | |||||
Total current liabilities | 9,802,619 | 14,317,285 | 2,026,481 | |||||
Non‑current liabilities | ||||||||
Long‑term funding debts | 450,595 | 911,118 | 128,960 | |||||
Deferred tax liabilities | 309,646 | 64,909 | 9,187 | |||||
Convertible notes | 2,046,051 | 2,079,875 | 294,387 | |||||
Other long-term liabilities | 27,844 | 14,205 | 2,011 | |||||
Total non‑current liabilities | 2,834,136 | 3,070,107 | 434,545 | |||||
TOTAL LIABILITIES | 12,636,755 | 17,387,392 | 2,461,026 | |||||
SHAREHOLDERS’ EQUITY | ||||||||
Class A Ordinary Shares | 170 | 173 | 24 | |||||
Class B Ordinary Shares | 61 | 59 | 8 | |||||
Additional paid‑in capital | 2,519,886 | 2,627,880 | 371,952 | |||||
Statutory reserves | 352,313 | 352,313 | 49,867 | |||||
Accumulated other comprehensive loss | (7,288 | ) | (6,889 | ) | (975 | ) | ||
Retained earnings | 3,734,397 | 1,556,506 | 220,309 | |||||
TOTAL SHAREHOLDERS’ EQUITY | 6,599,539 | 4,530,042 | 641,185 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 19,236,294 | 21,917,434 | 3,102,211 | |||||
(1) We have adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) effective January 1, 2020 using the modified retrospective method. Before the adoption of ASC 326, the guarantee liabilities subsequent to initial recognition were measured at the greater of the amount determined based on ASC 460 and the amount determined under ASC 450. An excess liability was recorded when the aggregate contingent liabilities under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460. After the adoption of ASC 326, a contingent liability in full amount determined using CECL lifetime methodology of the guarantee (i.e., the contingent aspect recorded as “Contingent guarantee liabilities”) shall be accounted for in addition to and separately from the guarantee liability (i.e., the noncontingent aspect recorded as “Deferred guarantee income”) accounted for under ASC 460. |
LexinFintech Holdings Ltd. Unaudited Condensed Consolidated Statements of Operations |
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(In thousands, except for share and per share data) | For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
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2019 |
2020 |
2019 |
2020 |
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RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
Operating revenue: | |||||||||||||||||
Online direct sales | 925,418 | 521,592 | 73,827 | 1,550,327 | 1,011,116 | 143,114 | |||||||||||
Membership services(1) | 27,063 | 24,205 | 3,426 | 62,325 | 48,496 | 6,864 | |||||||||||
Other services(1) | 17,127 | 24,154 | 3,418 | 36,564 | 37,360 | 5,288 | |||||||||||
Online direct sales and services income(1) | 969,608 | 569,951 | 80,671 | 1,649,216 | 1,096,972 | 155,266 | |||||||||||
Loan facilitation and servicing fees-credit oriented(1) | 1,008,831 | 931,295 | 131,816 | 1,632,374 | 1,694,263 | 239,807 | |||||||||||
Interest and financial services income and other revenues | 314,248 | 331,593 | 46,934 | 623,313 | 577,522 | 81,743 | |||||||||||
Guarantee income(2) | — | 706,271 | 99,966 | — | 1,383,571 | 195,832 | |||||||||||
Credit-oriented services income(1) | 1,323,079 | 1,969,159 | 278,716 | 2,255,687 | 3,655,356 | 517,382 | |||||||||||
Loan facilitation and servicing fees-performance based(1) | 145,054 | 393,595 | 55,710 | 274,899 | 670,983 | 94,971 | |||||||||||
Loan facilitation and servicing fees-volume based(1) | 55,199 | 25,301 | 3,581 | 87,648 | 34,729 | 4,916 | |||||||||||
Platform-based services income(1) | 200,253 | 418,896 | 59,291 | 362,547 | 705,712 | 99,887 | |||||||||||
Total operating revenue | 2,492,940 | 2,958,006 | 418,678 | 4,267,450 | 5,458,040 | 772,535 | |||||||||||
Operating cost: | |||||||||||||||||
Cost of sales | (925,454 | ) | (519,713 | ) | (73,561 | ) | (1,553,456 | ) | (999,880 | ) | (141,524 | ) | |||||
Funding cost | (120,664 | ) | (163,363 | ) | (23,123 | ) | (262,936 | ) | (306,444 | ) | (43,374 | ) | |||||
Processing and servicing cost | (138,279 | ) | (356,439 | ) | (50,451 | ) | (254,998 | ) | (669,409 | ) | (94,749 | ) | |||||
Provision for credit losses of financing receivables | (183,203 | ) | (120,913 | ) | (17,114 | ) | (335,720 | ) | (411,162 | ) | (58,196 | ) | |||||
Provision for credit losses of contract assets and receivables | (26,423 | ) | (60,786 | ) | (8,604 | ) | (44,664 | ) | (150,126 | ) | (21,249 | ) | |||||
Provision for credit losses of contingent liabilities of guarantee(2) | — | (768,922 | ) | (108,834 | ) | — | (1,786,165 | ) | (252,815 | ) | |||||||
Total operating cost | (1,394,023 | ) | (1,990,136 | ) | (281,687 | ) | (2,451,774 | ) | (4,323,186 | ) | (611,907 | ) | |||||
Gross profit | 1,098,917 | 967,870 | 136,991 | 1,815,676 | 1,134,854 | 160,628 | |||||||||||
Operating expenses: | |||||||||||||||||
Sales and marketing expenses | (315,578 | ) | (327,430 | ) | (46,345 | ) | (510,761 | ) | (571,302 | ) | (80,863 | ) | |||||
Research and development expenses | (99,691 | ) | (134,605 | ) | (19,052 | ) | (193,539 | ) | (260,816 | ) | (36,916 | ) | |||||
General and administrative expenses | (94,082 | ) | (113,793 | ) | (16,106 | ) | (181,292 | ) | (223,319 | ) | (31,609 | ) | |||||
Total operating expenses | (509,351 | ) | (575,828 | ) | (81,503 | ) | (885,592 | ) | (1,055,437 | ) | (149,388 | ) | |||||
Change in fair value of financial guarantee derivatives, net | 114,227 | 79,223 | 11,213 | 164,723 | (359,761 | ) | (50,921 | ) | |||||||||
Gain on guarantee liabilities, net(2) | 22,673 | — | — | 126,350 | — | — | |||||||||||
Interest income/(expense), net | 1,309 | (23,713 | ) | (3,356 | ) | (1,149 | ) | (36,018 | ) | (5,098 | ) | ||||||
Investment (loss)/income | (1,764 | ) | 26,880 | 3,805 | (1,764 | ) | 10,614 | 1,502 | |||||||||
Others, net | 8,372 | 21,248 | 3,007 | 25,982 | (1,946 | ) | (275 | ) | |||||||||
Income/(loss) before income tax expense | 734,383 | 495,680 | 70,157 | 1,244,226 | (307,694 | ) | (43,552 | ) | |||||||||
Income tax (expense)/benefit | (106,419 | ) | (76,644 | ) | (10,848 | ) | (191,962 | ) | 48,303 | 6,837 | |||||||
Net income/(loss) | 627,964 | 419,036 | 59,309 | 1,052,264 | (259,391 | ) | (36,715 | ) | |||||||||
Net income/(loss) per ordinary share | |||||||||||||||||
Basic | 1.77 | 1.15 | 0.16 | 2.98 | (0.71 | ) | (0.10 | ) | |||||||||
Diluted | 1.73 | 1.05 | 0.15 | 2.90 | (0.71 | ) | (0.10 | ) | |||||||||
Net income/(loss) per ADS | |||||||||||||||||
Basic | 3.54 | 2.30 | 0.33 | 5.96 | (1.43 | ) | (0.20 | ) | |||||||||
Diluted | 3.46 | 2.10 | 0.30 | 5.81 | (1.43 | ) | (0.20 | ) | |||||||||
Weighted average number of ordinary shares outstanding | |||||||||||||||||
Basic | 355,026,635 | 364,483,393 | 364,483,393 | 353,344,135 | 363,992,775 | 363,992,775 | |||||||||||
Diluted | 363,122,834 | 410,340,418 | 410,340,418 | 362,394,391 | 363,992,775 | 363,992,775 | |||||||||||
_________________________________
(1) Starting from the second quarter of 2020, we report revenue streams in three categories—online direct sales and services income, credit-oriented services income and platform-based services income, to provide more relevant information. We also revised the comparative period presentation to conform to current period classification. In providing credit-oriented services, we originate on-balance sheet loans, or facilitate the loan origination of off-balance loans where we also provide guarantee services. Consequently, we take all credit risks of borrowers in respect of on-balance sheet loans, and off-balance sheet loans through the relevant guarantee arrangements. By nature, revenue earned from off-balance sheet loans where we also provide guarantee services is recorded as “Loan facilitation and servicing fees-credit oriented” and “Guarantee income,” and interest income and other fees from on-balance sheet loans is recorded as “Interest and financial services income and other revenues.” In providing platform-based services, we do not provide guarantee services and take no credit risks of borrowers in respect of principal and interests due to the lenders for off-balance sheet loans we facilitate. We either charge the service fees for loan facilitation and servicing at predetermined rates based on the performance of the underlying off-balance sheet loans, which we refer to as performance-based model, or charge the service fees at predetermined rates of amount of loan originations upon successful matching of borrowing requests, which we refer to as volume-based model. Revenue from “Loan facilitation and servicing fees-credit oriented,” “Loan facilitation and servicing fees-performance based” and “Loan facilitation and servicing fees-volume based” were previously reported as one combined financial statement line item as “Loan facilitation and servicing fees” before the change of presentation. For online direct sales and services income, we report the premium membership fees for our membership packages as “Membership services,” and the commission fee earned from third-party sellers for the online marketplace services we rendered and other services revenue as “Other services” within “Online direct sales and services income.” The premium membership fees, commission fee earned from third-party sellers and other services revenue were previously reported as “Services and others” within “Online direct sales and services income” before the change of presentation. (2) We have adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) effective January 1, 2020 using the modified retrospective method. Before the adoption of ASC 326, gain or loss related to guarantee liabilities accounted for under ASC 460 was recorded in one combined financial statement line item within “Gain on guarantee liabilities, net.” After the adoption of ASC 326, the gain released from the guarantee liabilities accounted for under ASC 460 is recorded as a separate financial statement line item within revenue as “Guarantee income” and the relevant credit losses of guarantee are recorded as “Provision for credit losses of contingent liabilities of guarantee.” |
LexinFintech Holdings Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) |
|||||||||||||||
(In thousands) | For the Three Months Ended June 30, |
For the Six Months Ended June 30, | |||||||||||||
2019 | 2020 |
2019 | 2020 | ||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
Net income/(loss) | 627,964 | 419,036 | 59,309 | 1,052,264 | (259,391 | ) | (36,715 | ) | |||||||
Other comprehensive income/(loss) | |||||||||||||||
Foreign currency translation adjustments, net of nil tax | 10,236 | (908 | ) | (128 | ) | 697 | 399 | 56 | |||||||
Total comprehensive income/(loss) | 638,200 | 418,128 | 59,181 | 1,052,961 | (258,992 | ) | (36,659 | ) | |||||||
LexinFintech Holdings Ltd. Unaudited Reconciliations of GAAP and Non-GAAP Results |
|||||||||||||||
(In thousands, except for share and per share data) | For the Three Months Ended June 30, |
For the Six Months Ended June 30, | |||||||||||||
2019 | 2020 |
2019 | 2020 | ||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
Reconciliation of Adjusted Net Income/(Loss) to Net Income/(Loss) | |||||||||||||||
Net income/(loss) | 627,964 | 419,036 | 59,309 | 1,052,264 | (259,391 | ) | (36,715 | ) | |||||||
Add: Share-based compensation expenses | 41,015 | 48,265 | 6,831 | 80,422 | 102,999 | 14,579 | |||||||||
Interest expense associated with convertible notes | — | 12,206 | 1,728 | — | 24,119 | 3,414 | |||||||||
Investment loss/(income) | 1,764 | (26,880 | ) | (3,805 | ) | 1,764 | (10,614 | ) | (1,502 | ) | |||||
Adjusted net income/(loss) | 670,743 | 452,627 | 64,063 | 1,134,450 | (142,887 | ) | (20,224 | ) | |||||||
Adjusted net income/(loss) per ordinary share | |||||||||||||||
Basic | 1.89 | 1.24 | 0.18 | 3.21 | (0.39 | ) | (0.06 | ) | |||||||
Diluted | 1.85 | 1.10 | 0.16 | 3.13 | (0.39 | ) | (0.06 | ) | |||||||
Adjusted net income/(loss) per ADS | |||||||||||||||
Basic | 3.78 | 2.48 | 0.35 | 6.42 | (0.79 | ) | (0.11 | ) | |||||||
Diluted | 3.69 | 2.21 | 0.31 | 6.26 | (0.79 | ) | (0.11 | ) | |||||||
Weighted average number of ordinary shares outstanding | |||||||||||||||
Basic | 355,026,635 | 364,483,393 | 364,483,393 | 353,344,135 | 363,992,775 | 363,992,775 | |||||||||
Diluted | 363,122,834 | 410,340,418 | 410,340,418 | 362,394,391 | 363,992,775 | 363,992,775 |
LexinFintech Holdings Ltd. Unaudited Reconciliations of GAAP and Non-GAAP Results |
||||||||||||||||
(In thousands) | For the Three Months Ended June 30, |
For the Six Months Ended June 30, | ||||||||||||||
2019 |
2020 |
2019 | 2020 |
|||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||
Reconciliations of Non-GAAP EBIT to Net Income/(Loss) | ||||||||||||||||
Net income/(loss) | 627,964 | 419,036 | 59,309 | 1,052,264 | (259,391 | ) | (36,715 | ) | ||||||||
Add: Income tax expense/(benefit) | 106,419 | 76,644 | 10,848 | 191,962 | (48,303 | ) | (6,837 | ) | ||||||||
Share-based compensation expenses | 41,015 | 48,265 | 6,831 | 80,422 | 102,999 | 14,579 | ||||||||||
Interest (income)/expense, net | (1,309 | ) | 23,713 | 3,356 | 1,149 | 36,018 | 5,098 | |||||||||
Investment loss/(income) | 1,764 | (26,880 | ) | (3,805 | ) | 1,764 | (10,614 | ) | (1,502 | ) | ||||||
Non-GAAP EBIT | 775,853 | 540,778 | 76,539 | 1,327,561 | (179,291 | ) | (25,377 | ) | ||||||||
Artificial Intelligence
CUBE acquires global regulatory intelligence businesses from Thomson Reuters
LONDON, May 17, 2024 /PRNewswire/ — CUBE, a global leader in Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), announces today its acquisition of the Thomson Reuters Regulatory Intelligence and Oden products and businesses.
The acquisition of these global businesses represents a major step forward in CUBE’s growth plans. It will deliver significant scale across many of the world’s leading and systemically important financial institutions. CUBE’s existing global customer base will be expanded to total approximately 1,000 customers in banking, insurance, asset and investment management, payments and adjacent regulated industries.
CUBE’s global employees will expand to 600, of which close to 250 are highly qualified regulatory subject matter experts, legal and compliance professionals.
Ben Richmond, founder and CEO of CUBE said: “Thomson Reuters is known to be the biggest and best in the industry for providing regulatory expert analysis and subject matter expertise, alongside world-leading journalism and news. The combination of CUBE’s purpose-built AI, with the years of content curated by Thomson Reuters Regulatory Intelligence and Oden expert analysts, will accelerate innovation. Together, we will deliver regulatory transformation capabilities for our global customers that could only have been imagined before.”
Richmond continues: “This combination will provide tremendous scale and depth across CUBE’s regulatory content and technology. It is a significant step toward creating an industry-defining regulatory compliance and risk platform that will benefit all customers and elevate the industry as a whole.”
Through this acquisition, CUBE will provide an expanded and comprehensive selection of specialized regulatory intelligence and regulatory change services, committed to excellence, quality, and highly contextualised and meaningful regulatory content for customers. By combining cutting-edge technology and subject matter expertise at scale CUBE will set a new bar for the industry in regulatory automation and content.
Chris Maguire, General Manager, Risk and Fraud, Corporates, Thomson Reuters said: “It was clear to us that CUBE had established itself as a leading regulatory intelligence provider for global enterprise clients in the financial services and insurance sectors. We wanted to ensure our customers and employees could work with an organisation that would continue to innovate and significantly invest in solutions like Thomson Reuters Regulatory Intelligence and Oden. We are working tirelessly to ensure a seamless and value-enhancing transition for customers and employees, and we are looking forward to working with the CUBE team during this transition.”
Christopher Fielding, Hg, said: “We’re delighted to further extend our market reach, bringing in two high quality and complementary global businesses to the CUBE platform.”
Thomas Martin, Hg, added: “We see these acquisitions as enabling further innovation in the regulatory intelligence and change management sector, leading to strengthened demand for these quality solutions across the globe.”
The terms of the transaction will not be disclosed.
About CUBE
CUBE provides a highly comprehensive and robust source of classified, and meaningful AI-driven regulatory data to power its Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM) solutions. CUBE’s purpose-built regulatory technology including its AI engine (RegBrain) and software platform (RegPlatform) tracks, analyses, and monitors laws, rules, and regulations in every country and in every published language to create an always up-to-date regulatory footprint that transforms visibility and compliance capability for customers across the globe.
With operations across Europe, North America, Canada, Asia, and Australia, CUBE serves a diverse and global base of customers and partners including the largest financial institutions in the world who leverage CUBE’s platform to streamline their complex regulatory intelligence and change management processes.
Following the strategic partnership with Hg in March 2024, CUBE announced the acquisition of US-based Reg-Room in May 2024.
About Hg
Hg supports the building of sector-leading enterprises that supply businesses with critical software applications or workflow services, delivering a more automated workplace for their customers.
This industry is characterised by digitisation trends that are in early stages of adoption and are set to transform the workplace for professionals over decades to come. Hg’s support combines deep end-market knowledge with world class operational resources, together providing compelling support to entrepreneurial leaders looking to scale their business – businesses that are well invested, enduring and serve their customers well.
With a vast European network and strong presence across North America, Hg’s 400 employees and around $70 billion in funds under management support a portfolio of around 50 businesses, worth over $140 billion aggregate enterprise value, with over 110,000 employees, consistently growing revenues at more than 20%.
About Regulatory Intelligence
Regulatory Intelligence is a proactive, connected, and comprehensive solution that tracks and analyses regulatory changes within ~2,000 regulatory bodies and rulebooks for more than 20 countries. It enables banking, financial services, and insurance (BFSI) sectors to manage exposure to operational, regulatory, and compliance risk.
About Oden
Oden State Rules and Regulations (SR&R), Oden Policy Terminator/Sentry PT, and OdenTrack provide repositories and automated solutions for complying with state rules and regulations on the provisioning of Personal and Business Insurance in the US.
View original content:https://www.prnewswire.co.uk/news-releases/cube-acquires-global-regulatory-intelligence-businesses-from-thomson-reuters-302147604.html
Artificial Intelligence
Cayman Enterprise City Publishes Socio-Economic Impact Assessment by Economist and Leading Advisor on the Caribbean, Marla Dukharan
The Impact of Cayman Enterprise City’s Socio-Economic Development Project Nears USD $1 Billion
GRAND CAYMAN, Cayman Islands, May 16, 2024 /PRNewswire/ — Cayman Enterprise City (CEC) has released a Socio-Economic Impact Assessment by Marla Dukharan. The report illustrates that CEC is increasing its impact by supporting higher earnings for Caymanians and is driving a shift towards a knowledge-based economy by focusing on high productivity sectors. The release by Dukharan reads, “Caymanian resourcefulness and private sector-led innovation have been the driving force behind the islands’ outstanding socio-economic success. Cayman Enterprise City underpins the next generation of Cayman innovation and dynamism.”
With an economic impact of USD $130 million in 2023, contributing just under USD $1 billion to the local economic activity in 12 years since inception, “CEC is helping the nation to diversify economically, in terms of sectors and jobs, ensuring locals have economic and employment opportunities that match the nation’s progress,” the report reads.
The CEC socio-economic development project is now home to 352 Special Economic Zones Companies (SEZCos), many of which are globally recognised institutions led by top executives and industry experts. “CEC member companies are providing high-value employment with salaries exceeding those typically found outside of the special economic zone,” said Charlie Kirkconnell, Chief Executive Officer at CEC. “The CEC community is fully invested in Cayman and the report illustrates that the CEC socio-economic development project is making a very significant impact on Cayman’s economy and community.”
“As CEC continues to grow, it continues to create significant employment and entrepreneurial opportunities for Caymanians and we encourage anyone that might be interested in finding out how they might get involved, whether as a member of the community and/or as a volunteer in our Enterprise Cayman non-profit organisation (NPO).”
77% of Caymanian-held jobs at CEC member companies, are in sectors with high social returns and increasing global demand. “By putting skills first and prioritizing learning, CEC is enabling new industries to take root,” the release by Dukharan reads.
CEC, through its Enterprise Cayman NPO, is a first-mover in private sector-facilitated education and training in the Caribbean, making it a leading force to boost youth participation in the economy. By offering training in specialised skills, Enterprise Cayman is helping to close the gap in higher education and earnings for Caymanians. “Through Enterprise Cayman we’ve set out to strategically support meaningful employment and entrepreneurial opportunities for Caymanians, by providing internship and mentorship opportunities, by hosting skill-building and career focused training, and by providing invaluable networking and community engagement opportunities,” said Kirkconnell.
In 2023 individuals took advantage of 4,226 opportunities to participate in education, training, and career development events and, since launching entrepreneurial programming in 2021, Enterprise Cayman has worked with 41 new Cayman-born business ventures. “We’re helping to develop a local talent pool that meets the demand of Cayman’s growing digital innovation and technology sectors while, in parallel, offering exciting opportunities for individuals to launch new business ventures within an innovative business environment,” said Kirkconnell.
With CEC’s new campus and state-of-the-art facilities, Signal House, the project “holds the promise of deep, continued economic impact,” the report concludes.
To access CEC’s economic impact assessments and Enterprise Cayman’s annual reports please visit https://www.enterprisecayman.ky/reports. For more information on how to get involved and for upcoming programmes and events visit www.enterprisecayman.ky.
Website: www.caymanenterprisecity.com LinkedIn: @CaymanEnterpriseCityTwitter: @CEC_CaymanInstagram: @CaymanEnterpriseCityFacebook: @CaymanEnterpriseCityYouTube: @ceccayman
About Cayman Enterprise City
Cayman Enterprise City (CEC) is an award-winning development project which consists of three special economic zones (SEZs) focused on attracting knowledge-based and specialised-services businesses to set up a genuine physical presence in the Cayman Islands. The zones included within CEC are Cayman Tech City, Cayman Commodities & Derivatives Centre, and Cayman Maritime & Aviation City. With a dedicated Government Authority, licensing fee concessions and guaranteed fast-track processes, CEC enables international companies to quickly and efficiently establish a Cayman Islands office, which in turn enables them to generate active business income within a tax neutral environment.
About Enterprise Cayman
Enterprise Cayman is a non-profit organisation (NPO) powered by Cayman Enterprise City in partnership with Cayman Islands’ special economic zone companies (SEZCos). The organisation, which applies the Theory of Change (TOC) methodology, provides Caymanians and residents with access to high-quality learning experiences and opportunities to develop and launch new business ventures, to pursue careers within the technology and innovation sectors, and to join a dynamic network of industry professionals. Let’s grow the next generation of Caymanian innovators and entrepreneurs with Enterprise Cayman!
Logo: https://mma.prnewswire.com/media/1317764/2860789/Cayman_Enterprise_City_Logo.jpg
FOR MORE INFORMATION:Contact: Kaitlyn Elphinstone Email: [email protected]
View original content:https://www.prnewswire.co.uk/news-releases/cayman-enterprise-city-publishes-socio-economic-impact-assessment-by-economist-and-leading-advisor-on-the-caribbean-marla-dukharan-302148206.html
Artificial Intelligence
Strava Unveils New Chapter of Accelerated Product Development at Brand’s Flagship Event
The Company introduces increased product velocity, leveraging advancements in Artificial Intelligence, in service of its vision of a world connected through movement
LOS ANGELES, May 16, 2024 /PRNewswire/ — Strava, the leading digital community for active people with more than 125 million athletes, today showcased its latest initiatives and product developments at its annual event, Camp Strava. With the theme of Progress, Together company leaders announced how the platform will empower its global community to make progress in the way they explore, move, and connect on Strava.
“Strava is gaining momentum to realize our vision of a world connected through movement,” said Michael Martin, chief executive officer of Strava. “We are focused on two fundamental shifts to accelerate how we deliver value to 125 million people globally– building for women and leveraging Artificial Intelligence – which will unlock new community-and-partner-powered experiences across the platform.”
A New Era of Product VelocityStrava, with new leaders at the helm, is ushering in its next era of product velocity. The company listened closely to feedback from its global community and announced three of the most requested features coming to the platform by the end of the year.
The first of these updates, AI-enabled Leaderboard Integrity, will harness machine learning to automatically flag irregular, improbable, or impossible activities recorded to the platform. Trained by millions of activities, this feature allows all users on Strava to play fair and have more fun.
Additionally, the company announced a new Family Plan Subscription, the sister of the company’s Student Plan. With Family Plan, it’s easier to make a fitness commitment with your community by sharing an annual subscription with up to three other people – friends, family, or fitness family. Launching in select countries this summer, with plans to roll out globally by the end of the year, Strava’s newest annual subscription option offers the best value for groups (up to four), with a discount off the regular subscription price for each member.
Strava also implemented an updated design system, an initiative that is integral in driving a heightened pace of product innovation at the company. Through this work, Strava announced the launch of one of the company’s most requested features, Dark mode. Dark mode will improve the in-app experience for all users, reducing eye strain and improving accessibility while they record activity or scroll through the feed. Athletes can expect a rollout later this summer with options to keep their mobile settings always dark, always light, or match their device settings.
Company leaders highlighted several other features and updates to current products like Flyover, with its next iteration offering an overlay with activity stats and off-platform sharing capabilities. The overlay is available today for Strava subscribers and an off-platform sharing option will be released later this year.
Build for Her, Build for ManyStudies show that women of all ages participate in sports at a far lower rate than men, and overall, despite wanting to be active, find less time to dedicate to an active lifestyle. As the company continues on its mission to motivate people to live their best active lives, building for women on the platform will ultimately serve everyone in the Strava community. Several new features and initiatives were announced as a part of this strategic focus, which includes:
Night Heatmaps: Night Heatmaps show only activities between sundown and sunrise – so athletes can get an idea of which roads, trails, and paths are well-trafficked after hours. Since Night Heatmaps filter for after-hours routes, it can be a helpful tool for female athletes training before sunrise and after sunset.Quick Edit: For active women, having control over what is shared with the Strava community that cheers them on – like what time a run is logged – is important. Quick Edit makes it easier to make the most common edits – like activity name, and privacy settings so you can hide your start time, your map, or other workout stats.Strive for More®: The company announced a new phase of its Strive for More® initiative, created in 2022 to promote and support women in movement and sport. Today, Strava unveiled an official partnership with media company TOGETHXR to encourage more women to watch – and play – women’s sports. As part of the partnership, Strava will also donate $100,000 to the Alex Morgan Foundation, started by co-founder of TOGETHXR, Alex Morgan, to support their mission to help girls and women find confident paths forward in sports and life.Athlete IntelligenceToday, Strava announced the start of an accelerated product roadmap, outlining how Strava will implement the latest technological enhancements in AI and machine learning, to transform the athlete experience.
One key advancement to the platform includes the company’s latest development, Athlete Intelligence. Strava is introducing its beta AI-powered feature which turns each subscriber’s training data into an easily digestible summary that contextualizes their accomplishments and fitness goals. Unlike other AI-powered training services, Strava connects with thousands of devices, wearables, and fitness apps, so an athlete’s insights can consider their entire fitness story across multiple sports and modalities.
The features shared at Camp Strava will be released on a rolling basis through the end of the year. To view the full list of product releases and further details, visit www.press.strava.com.
For more information on Strava, to create a free account, or to start a free subscription trial visit www.strava.com.
About Strava Strava is the leading digital community for active people with more than 125 million athletes, in more than 190 countries. The platform offers a holistic view of your active lifestyle, no matter where you live, which sport you love and/or what device you use. Everyone belongs on Strava when they are pursuing an active life. Join the community, find motivation and discover new experiences with a Strava subscription.
Visit www.strava.com for more information and connect with Strava on Instagram, Twitter, Facebook, YouTube and LinkedIn.
Media Contact: [email protected]
Photo – https://mma.prnewswire.com/media/2413914/Darkmode_STRAVA.jpgPhoto – https://mma.prnewswire.com/media/2413915/Flyover_STRAVA.jpg Photo – https://mma.prnewswire.com/media/2413913/Athlete_Intelligence_STRAVA__INC.jpg
View original content:https://www.prnewswire.co.uk/news-releases/strava-unveils-new-chapter-of-accelerated-product-development-at-brands-flagship-event-302147068.html
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