Chinese Digital Freight Platform Full Truck Alliance Posts Double-Digit Growth In Q3, Guides Strong Q4 Revenues

Full Truck Alliance Co Ltd YMM reported Q3 FY23 sales growth of 25.2% Y/Y to ¥2.26 billion ($310.30 million).

Freight matching services revenues rose 25.8% Y/Y, led by strength in freight brokerage service and continued growth in transaction commissions business.

General and administrative expenses rose to ¥290.4 million from ¥206.6 million last year owing to higher share-based compensation expenses and settlement in principle of certain U.S. securities class action disclosed on September 18, 2023.

Adjusted operating income increased 88.8% Y/Y to ¥458.5 million. Adjusted net income per ADS stood at ¥0.78 ($0.11), significantly higher than ¥0.46 a year ago. 

As of September 30, 2023, YMM had cash and cash equivalents, restricted cash, short-term investments, long-term time deposits, and wealth management products of $3.8 billion.

Fulfilled orders rose 27.0% Y/Y to 42.5 million, and average shipper MAU climbed 15.0% Y/Y to 2.13 million.

Repurchase: As of November 17, 2023, YMM repurchased around 22.8 million ADSs for about $147.3 million.

Mr. Peter Hui Zhang, Founder, Chairman and CEO, said, "Amid the evolving market demand in the logistics industry in the third quarter, we delivered another record-setting quarter with many operational and financial improvements, propelled by further improvements in our product functions and services." 

"Both user scale and number of fulfilled orders achieved significant growth year over year, reflecting the resiliency of domestic economy, the strong network effect of FTA's nationwide road logistics network and the unparalleled competitive moat created by our unique business model."

Outlook: YMM expects Q4 revenue of ¥2.27 billion-¥2.32 billion, a growth of about 18.2%-20.6% Y/Y.

Price Action: YMM shares are trading higher by 14.19% at $8.01 on the last check Monday.