China-based e-commerce solutions provider Baozun (Nasdaq: BZUN) reported stronger than expected earnings and revenues for the first quarter. Though the company’s stock gained soon after the report, it slipped into the negative territory later.

Net income, adjusted for one-off items, climbed to RMB0.89 per ADS ($0.13 per ADS) from RMB0.54 per ADS in the first quarter of 2018. Analysts were looking for a slightly lower profit.

Net income attributable to shareholders, on a reported basis, was RMB34 million ($5.12 million) or RMB0.57 per ADS ($0.08 per ADS) in the March quarter, compared to RMB14.93 million or RMB0.25 per ADS a year earlier.

Driving the bottom-line growth, revenues surged 40% annually to RMB1.29 billion ($191.7 million), with strong contributions from the services segment. Revenues also came above the estimates.

Driving the bottom-line growth, revenues surged 40% annually, with strong contributions from the services segment

Revenues from product sales jumped 34% to RMB460 million, helped by the company’s aggressive marketing and promotional campaigns, acquisition of new brand partners and the increased popularity of brand partners’ products.

Baozun Q1 2019 GMV up 58%

The top-line also benefitted from a 58% growth in gross merchandise volume to RMB7.8 billion. Distribution gross merchandise volume was up 32%, while non-distribution gross merchandise volume grew 62%.

At the end of the quarter, the company had a total of 200 brand partners, up 28% year-over-year.

“We continue to grow our business in a sustainable and balanced manner, which we believe will better position us to drive growth over the long-term and offer both international and domestic brand partners a unique value proposition,” said CEO Vincent Qiu.

Related: Baozun Inc. Q4 2018 Earnings Conference Call Transcript

Encouraged by the positive results, the company sees a 34%-38% top-line growth in the second quarter and forecasts revenues in the range of RMB1.55 billion to RMB1.60 billion. Service revenues are estimated to grow about 40% year-over-year.

Baozun shares closed Tuesday’s trading session sharply higher. The stock has gained 8% since the beginning of the year.

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