Full Truck Alliance saw revenue and profit growth last year, is AI driving the future of logistics? | Earnings Report Insights

AI empowers logistics, Full Truck Alliance achieved strong performance in the fourth quarter and the whole year last year, realizing double growth in user orders.

On March 5th, Full Truck Alliance Group announced its financial report showing that total net revenue in the fourth quarter of 2024 reached RMB 3.1743 billion, a year-on-year increase of 31.8%. The total net revenue for the year reached RMB 11.2386 billion, a year-on-year increase of 33.2%. The annual net profit reached RMB 3.1234 billion, a year-on-year increase of 40.2%. The following are the main financial data:

Net Revenue: Fourth quarter net revenue was RMB 3.174 billion (USD 435 million), a year-on-year increase of 31.8%. The total net revenue for 2024 was RMB 11.2386 billion (approximately USD 1.5397 billion), an increase of 33.2% compared to RMB 8.4362 billion in 2023, mainly due to the increase in freight matching service revenue.

Net Profit: Fourth quarter net profit was RMB 575 million (USD 78.72 million), slightly lower than the same period last year. The net profit for 2024 was RMB 3.1234 billion (approximately USD 427.9 million), an increase of 40.2% compared to RMB 2.2271 billion in 2023.

Non-GAAP Adjusted Net Profit: Fourth quarter was RMB 1.052 billion (USD 144.1 million), a year-on-year increase of 43.5%. The total for 2024 was RMB 4.0204 billion (USD 550.8 million), a year-on-year increase of 43.7%.

At the same time, Full Truck Alliance Group announced its performance guidance for the first quarter of 2025, expecting total net revenue in the first quarter to be between RMB 2.63 billion and RMB 2.68 billion, a year-on-year increase of approximately 15.9% to 18.1%. Company executives stated that they will continue to leverage AI innovation to improve operational efficiency, reduce logistics costs, and strive to create lasting value for customers and the entire industry.

Zhang Hui, founder, chairman, and CEO of Full Truck Alliance Group, stated:

In the fourth quarter, we continued to drive the digital and intelligent transformation of the logistics industry. By leveraging our strong network effects and unparalleled transaction efficiency, we maintained strong growth momentum and effectively accelerated our growth momentum.

On Wednesday, Full Truck Alliance Group's ADR rose 13.72% to USD 13.26, returning to the price level of November 2021.

AI-empowered Logistics, Doubling User Orders

In the fourth quarter of 2024, the user stickiness and activity of the Manbang platform drove a dual growth in the group's user scale and order volume. In the fourth quarter, the average shipper MAU (Monthly Active Users) reached 2.93 million, a year-on-year increase of 31.3%; at the same time, the fulfillment order volume in the fourth quarter reached 56.9 million, a year-on-year increase of 24.3%. For the entire year of 2024, the platform's user and order data are as follows:

The average owner MAU for the year was 2.64 million, a year-on-year increase of 30.3%. This indicates that the Manbang platform's attractiveness to owners continues to strengthen.

The total fulfillment order volume for the year was 197.2 million, a year-on-year increase of 24.1%. This reflects the improvement in the efficiency of freight matching by Manbang Group.

A deeper analysis of Manbang Group's revenue structure reveals that its growth engine mainly comes from freight matching services, with transaction services growing rapidly. In 2024, the revenue from this business reached 9.4551 billion RMB (approximately 1.2953 billion USD), a year-on-year increase of 34.0%, accounting for 84% of total revenue. Among them:

Revenue from freight brokerage services was 4.727 billion RMB (approximately 647.6 million USD), a year-on-year increase of 20.7%.

Revenue from freight services was 879.5 million RMB (approximately 120.5 million USD), a year-on-year increase of 6.2%.

Revenue from transaction services achieved an astonishing growth of 66.7%, reaching 3.8487 billion RMB (approximately 527.3 million USD).

Revenue from value-added services was 1.7835 billion RMB (approximately 244.3 million USD), a year-on-year increase of 29.0%.

Increased Marketing Investment, Launch of Dividend and Stock Buyback Plan

Although net income in the fourth quarter increased by 31.8% year-on-year, net profit fell to 574.6 million RMB year-on-year, mainly affected by rising revenue costs and marketing expenses:

Revenue costs: In 2024, revenue costs were 5.1006 billion RMB (approximately 698.8 million USD), a year-on-year increase of 23.8%.

Sales and marketing expenses: In 2024, this expense was 1.5968 billion RMB (approximately 218.8 million USD), a year-on-year increase of 28.9%, mainly due to increased advertising and marketing investment for user acquisition.

R&D expenses: In 2024, this expense was 880 million RMB (approximately 120.6 million USD), a year-on-year decrease of 7.0%, mainly due to reduced salary and welfare costs.

Additionally, it is worth noting that as of December 31, 2024, the non-performing loan ratio of Manbang Group's on-balance-sheet loans (provided through its micro-lending company) was 2.2%, up from 2.0% at the end of 2023.

Manbang Group announced a dividend and stock buyback plan to reward shareholders. The board approved a semi-annual cash dividend policy, with an expected total dividend of approximately 200 million USD in 2025. The first dividend will be 0.0960 USD per ADS, expected to be paid around April 18, 2025 The stock repurchase plan will be extended to March 12, 2026, with a maximum repurchase of $200 million in ADS or common stock