Full Truck Alliance Clocks 34% Sales Surge In Q2, Signals Continued Growth And Monetization Success

Full Truck Alliance Co Ltd YMM reported second-quarter sales growth of 34.1% year-over-year to 2.764 billion Chinese yuan or $380.379 million, beating the consensus of $373.282 million.

Freight matching services revenues rose 34.4% year over year, reflecting a significant increase in transaction service and the continued growth in freight brokerage service.

General and administrative expenses increased to RMB219.2 million from RMB201.7 million last year, reflecting higher share-based compensation expenses.

Adjusted operating income increased 55.1% Y/Y to RMB699 million. Adjusted net income per ADS stood at RMB0.91 or $0.13, which aligned with the consensus.

Operating cash flow for the quarter was RMB573.7 million or $78.9 million. As of June-end, the company had cash and cash equivalents, restricted cash, short-term investments, long-term time deposits, and wealth management products of RMB26.8 billion or $3.7 billion.

“We enhanced the infrastructure serving our truck-cargo matching system, driving continuous order structure improvement and a steady increase in fulfillment rate. As we move into the second half of the year, we are confident of achieving progress in various businesses and maintaining growth in both scale and profits,” commented Peter Hui Zhang, Founder, Chairman, and Chief Executive officer.

Fulfilled orders in the quarter reached 49.1 million (+22% YoY). Average shipper MAUs for the quarter were 2.65 million (+32.8% YoY).

“More importantly, as we enhance the value of our platform’s ecosystem, our transaction service is rapidly realizing its monetization potential, with revenues under this model growing more than 60% year over year this quarter. Looking ahead, we see significant potential for user scale and monetization growth,” commented Simon Cai, Chief Financial Officer of FTA.

Q3 Outlook: Full Truck Alliance expects its total net revenues to be RMB2.76 billion and RMB2.82 billion, representing a year-over-year growth rate of 21.9% to 24.6%.

Price Action: YMM shares are trading lower by 1.83% at $7.245 at the last check Wednesday.