91APP (Stock code: 6741) today announced to attend an investor conference held by Taipei Exchange for the operating results. The company achieved a record-high consolidated revenue of NT$324 million in 1Q23, driven by the growth of brick-and-mortar retailers which operate D2C e-Commerce. In February and March 2023, the consolidated revenue increased by 21.53% and 18.96% YoY respectively, outperforming the same period last year.
In 4Q22, 91APP achieved a new quarterly historical record of consolidated revenue, reaching NT$388 million, driven by the growth of D2C and the peak season of e-Commerce. The company's gross profit margin and operating profit margin for 2022 remained stable at 75% and 33% respectively. Notably, the net profit for 2022 also reached a new historical high of NT$338 million, mainly driven by the company's strong operating performance.
Steven Ho, Chairman of 91APP, stated that Taiwan's e-Commerce industry has been evolving for over two decades, progressing from C2C (Consumer-to-Consumer) to B2C (Business-to-Consumer), and D2C (Direct-to-Consumer), which represents three major trends. The scale of each trend is expected to be larger than the previous one, therefore D2C is the mega trend in the future. Despite this progress, the penetration rate of retail e-Commerce was only 11.5% in Taiwan in 2022, with nearly 90% of retail sales still coming from brick-and-mortar retailers. However, with the increasing shift towards digital transformation in brick-and-mortar retailers, the potential D2C market is expected to continue driving significant growth.
Richard Yang, General Manager of 91APP, believes that the most efficient way to achieve D2C operation is to adopt the OMO (Offline-merge-Online) methodology which focuses on consumer-oriented. As a result of the pandemic's impact on consumer behavior, brick-and-mortar retailers are increasingly adopting OMO and using D2C to drive sales across all channels. This has driven strong demand for 91APP's Commerce Solution and Marketing Solution, the two major solutions of D2C leading brands in the market. Commerce (transaction) and marketing (traffic) are the two crucial areas of Internet development. 91APP combines its Commerce and Marketing Solutions with the "Product x Service" business model to achieve a synergistic effect of 2x2, where the two spaces interact with each other to create comprehensive efficiency.
Enhancing operational efficiency has become the priority for achieving next-phase growth for brands facing the ever-growing and rapidly changing e-Commerce market. With the arrival of the "iPhone moment in AI", 91APP has also introduced generative AI-assisted features into its two major solutions, integrating the ChatGPT from the artificial intelligence research laboratory OpenAI from the United States, to provide its clients with fast generated functions such as "personalized marketing" and "product description" copywriting, greatly enhancing brand CRM management, precision marketing, and product listing efficiency, empowering the retail industry with artificial intelligence. 91APP continues to invest in advanced and innovative technologies, unleashing the core potential of various retail scenarios, and creating value for clients.