China's JD.com Q4 Retail Revenue And Margin Growth Impress, Hikes Annual Dividend

Zinger Key Points

JD.com Q4 revenue rose 13.4% to $47.54B, beating estimates, with net income per ADS at $1.02, surpassing forecasts.
JD Retail revenue climbed 14.7% to $42.07B, while free cash flow hit $3.22B; board approved $1.00 per ADS dividend.
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On Thursday, China-based JD.com, Inc. (NASDAQ: JD) reported fiscal fourth-quarter 2024 revenue growth of 13.4% year over year to $47.54 billion, beating the analyst consensus estimate of $45.96 billion.

JD posted an adjusted net income per ADS of $1.02, beating the analyst consensus estimate of $0.90.

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JD Segment Performance: JD.com’s net product revenue increased by 14.0% year over year at $38.49 billion. Net service revenues rose 10.8% year over year to $9.04 billion.

JD Retail revenue climbed 14.7% year over year to $42.07 billion, Logistics revenue gained 10.4% year over year to $7.14 billion, and the new business revenues fell to $642 million.

JD.com’s marketing expenses rose 28.4% to $2.3 billion in the quarter, forming 4.9% of revenues, up by 60 bps. The rise was mainly due to the increased spending on promotion activities.

Margin: Operating margin was 2.4% for the quarter, compared to 0.7% year over year. Adjusted operating margin improved 50 bps year over year to 3.0%. JD Retail’s operating margin rose 70 bps to 3.3%.

Adjusted EBITDA increased 29.7% year over year to $1.7 billion, with a 3.6% margin, up by 40 bps.

JD.com generated $3.22 billion in free cash flow for the quarter, $3.41 billion in operating cash flow, and $33.1 billion in cash and equivalents as of December 31.

Dividend: The board approved an annual cash dividend of $1.00 per ADS for the year ended December 31, 2024 (versus $0.76 per ADS a year ago).

CEO Sandy Xu noted its topline growth returned to double digits year-on-year, and bottom line also achieved healthy expansion. In addition, most of its product categories as well as key metrics such as its quarterly active users and shopping frequency saw strong double-digit growth year-on-year in the quarter.

Price Action: JD stock is up 5.53% at $46.18 in the premarket session at the last check Thursday.

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