Full Truck Alliance Shares Trading Higher On Q1 Earnings Beat

Full Truck Alliance Co Ltd YMM reported first-quarter (Q1) 2023 sales growth of 27.7% Y/Y to ¥1.7 billion (US$240 million).

• Adjusted EPS stood at ¥0.48, significantly higher than ¥0.17 a year ago. 
• In dollar equivalent, revenues of $247.9 million beat the consensus of $232.29 million and adjusted EPS of $0.07 surpassed the analyst expectations of $0.05.
• Freight matching services revenues rose 24.9% year-over-year in Q1 led by strength in freight brokerage service and continued growth in transaction commissions business.
• Fulfilled orders in Q1 rose 20.5% Y/Y to $30.3 million, and average shipper MAU climbed 23.3% Y/Y to 1.75 million.
• General and administrative expenses declined to ¥179.5 million from ¥458.4 million last year owing to lower share-based compensation expenses.
• Adjusted operating income increased 104.4% Y/Y to ¥272.4 million.
• The China-based company held ¥25.8 billion in cash and cash equivalents, restricted cash, short-term investments and long-term deposits as of March 31.
• Repurchase: As of May 21, YMM repurchased around 5.6 million ADSs for about $37.4 million.
• Outlook: YMM expects Q2 revenue of ¥1.91 billion and ¥2.01 billion, a growth of about 14.5% to 20.5% Y/Y.
• Full Truck Alliance CEO Peter Hui Zhang cited improved user activity among truckers and shippers for driving daily order volume and fulfillment rates to "all-time highs."
• "Supported by this firm foundation, we will move through the year with confidence and remain focused on scaling user base and order volume, exploring new initiatives and products to further strengthen our lead in China's digital freight market and sustain our topline growth," he added.

Price Action: YMM shares are trading higher by 5.46% at $6.18 premarket on the last check Monday.