Full Truck Alliance Surges Past Expectations With Strong Q4 Sales, Strategic Repurchases Set New Highs

Full Truck Alliance Co Ltd YMM reported fourth-quarter fiscal 2023 sales growth of 25.3% year-over-year to RMB2.408 billion or $339.15 million, beating the consensus of $317.67 million.

Freight matching services revenues rose 24.9 Y/Y, led steady growth in revenues from freight brokerage service and continued expansion in transaction commissions business.

General and administrative expenses declined to RMB266 million from RMB408.2 million last year, reflecting lower share-based compensation expenses and professional service fees.

Adjusted operating income increased 60.6% Y/Y to RMB398.8 million. Adjusted net income per ADS stood at RMB0.69 or $0.10, beating the consensus of $0.08. 

As of Dec. 31, 2023, Full Truck Alliance had cash and cash equivalents, restricted cash, short-term investments, long-term time deposits, and wealth management products of RMB27.6 billion or $3.9 billion.

Fulfilled orders in the quarter reached 45.8 million (+40.4% Y/Y). Fulfilled orders for the fiscal stood at 158.8 million, an increase of 33.4% Y/Y.

Average shipper MAUs for the quarter was 2.24 million (+18.7% Y/Y), and for the fiscal stood at 2.03 million (+21.3% Y/Y).

Repurchase: As of March 06, 2024, Full Truck Alliance repurchased around 30.7 million ADSs for about $200 million. 

Additionally, On March 3, 2023, the company authorized a share repurchase program, under which it may repurchase up to $500 million of its ADSs for up to 12 months starting from March 13, 2023.

Outlook: Full Truck Alliance expects its total net revenues to be between RMB2.11 billion and RMB2.16 billion, representing a year-over-year growth rate of ~23.9% to 27.1%. 

“Moving through 2024, we will take a more active stance toward user acquisition to broaden our high-quality user base. Concurrently, we will further enrich our products and services to address users’ evolving needs and improve our freight matching efficiency,” Full Truck Alliance CFO Simon Cai said.

Price Action: YMM shares are trading higher by 4.67% at $6.72 premarket on Thursday.

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