Why did SY's Q4 earnings fall short of forecasts?

So-Young International's (SY) Q4 earnings fell short of forecasts due to a combination of factors: 1. **Revenue Decline**: Total revenue for the quarter was RMB369.2 million, which represents a 5.5% year-over-year decrease. This decline fell short of the forecasted revenue of RMB402.58 million. 2. **Earnings Per Share (EPS) Miss**: The reported EPS was -$1.05 for the quarter, which is significantly lower than the expected EPS of $0.01241. This indicates a substantial deviation from the forecasted earnings. 3. **Strategic Expansion Costs**: So-Young International is undergoing strategic expansion, which includes opening new clinics and expanding its aesthetic center network. These expansion efforts can be costly in the short term, impacting profitability and masking underlying business performance. 4. **Market Conditions and Competitive Pressures**: The company operates in a competitive market, facing challenges such as competitive pressures in the Pay-Per-Click (POP) sector. These factors could contribute to revenue shortfalls and impact earnings. In summary, So-Young International's Q4 earnings fell short of forecasts due to a combination of lower-than-expected revenue and a significant EPS miss, likely influenced by strategic expansion costs and market conditions.