Meituan Q4 revenue increased by 20% year-on-year, new business losses narrowed, and overseas market expansion accelerated | Earnings report insights

Meituan's Q4 total revenue increased by 20.1% year-on-year, and operating profit surged by 280.7% to 6.69 billion yuan, with significant narrowing of losses in new businesses. The company is accelerating its exploration of overseas markets, expanding Keeta to all major cities in Saudi Arabia.

On the 21st, Meituan announced its financial report for the full year and fourth quarter of 2024:

1) Key Financial Data:

• Revenue: Meituan's Q4 revenue was 88.49 billion yuan, a year-on-year increase of 20%, estimated at 87.93 billion yuan, a quarter-on-quarter decrease of 5.4%.

• Net Profit: 6.22 billion yuan, a year-on-year increase of 180.7%, estimated at 8.11 billion yuan, a quarter-on-quarter decrease of 51.6%.

• Adjusted EBITDA: 11.523 billion yuan, a year-on-year increase of 207.7%, a quarter-on-quarter decrease of 20.7%.

• Adjusted Net Profit: 9.85 billion yuan, a year-on-year increase of 125.1%, estimated at 9.91 billion yuan.

• Operating Profit: Operating profit was 6.69 billion yuan, compared to 1.76 billion yuan in the same period last year, a year-on-year increase of 280.7%, estimated at 7.81 billion yuan.

• Basic Earnings per Share: 5.85 yuan, compared to 2.23 yuan in the same period of 2023.

Meituan's total revenue for the fiscal year 2024 reached 337.6 billion yuan, a year-on-year increase of 22%; net profit reached 35.8 billion yuan, a year-on-year increase of 158.4%; operating profit margin increased from 4.8% to 10.9%; adjusted EBITDA increased by 105.7% year-on-year to 49.1 billion yuan.

2) Key Business Revenue Data:

Core Local Business: Q4 revenue reached 65.567 billion yuan, a year-on-year increase of 18.9%, a quarter-on-quarter decrease of 5.5%. Among them:

• Delivery Services: Revenue reached 26.195 billion yuan, a year-on-year increase of 19.5%.
• Commission: Revenue reached 24.066 billion yuan, a year-on-year increase of 23.9%.
• Online Marketing Services: Revenue reached 12.842 billion yuan, a year-on-year increase of 17.7%.

New Business: Revenue reached 22.920 billion yuan, a year-on-year increase of 23.5%, a quarter-on-quarter decrease of 5.3%.

Digital Traffic Boosts High-Quality Business Growth, Service Efficiency Enhances Profit Space

In the context of a continuously changing consumption environment, Meituan's total revenue reached 88.49 billion yuan in Q4, a year-on-year increase of 20.1%; the company's operating profit soared by 280.7% year-on-year to 6.69 billion yuan, with profit growth of 180.7% to 6.22 billion yuan during the period. **Driven by the dual engines of core business growth and narrowing losses in new businesses, Meituan's profit capacity has significantly improved **

The core local business segment performed impressively, with revenue increasing by 18.9% year-on-year to CNY 65.57 billion, operating profit rising by 60.9% to CNY 12.9 billion, and the operating profit margin increasing by 5.2 percentage points year-on-year to 19.7%. This growth was mainly driven by a comprehensive increase in revenue from delivery services, commissions, and online marketing services.

The new business segment also delivered impressive results, with revenue increasing by 23.5% year-on-year to CNY 22.92 billion, operating losses significantly narrowed by 55% year-on-year to CNY 2.18 billion, and the operating loss rate improved from 26% to 9.5%. This was primarily due to the company's improved operational efficiency in areas such as grocery retail.

Business model innovation drives supply-side growth, platform ecosystem increasingly 完善

Meituan deepened multiple business innovation initiatives in the fourth quarter of 2024, further strengthening its competitive advantage in the instant delivery sector.

The company adapted to changes in consumer trends, enriching food supply and enhancing price-performance ratio through models such as "Pin Hao Fan," "Brand Satellite Stores," and "Shen Qiang Shou," effectively stimulating consumer demand. In particular, "Brand Satellite Stores" provided brand catering merchants with an effective low-cost expansion path, allowing consumers to obtain high-quality meals at more affordable prices compared to dine-in options.

In the instant retail sector, "Meituan Lightning Warehouse" achieved significant growth, especially becoming an important growth channel for various retailers in lower-tier markets. This model complements traditional offline retail, further enhancing the convenience of instant retail and stimulating consumer demand. Additionally, Meituan continuously improves instant delivery services for different categories, such as pharmaceuticals, providing consumers with a one-stop service experience from home testing, online diagnosis to medical insurance payment and instant delivery.

Meituan is also actively building a sustainable development ecosystem. On the merchant side, the company simplified the promotion system, standardized marketing activities, strengthened food safety management, and launched a CNY 1 billion merchant support plan in the fourth quarter. On the rider side, Meituan has provided a total of CNY 1.4 billion in occupational injury protection funds for all riders in seven pilot provinces and cities since July 2022, and plans to pilot a social security scheme for riders in some cities starting in the second quarter of 2025.

In-store services unleash online potential, internationalization accelerates

Meituan's in-store business achieved impressive growth in 2024, with order volume increasing by over 65% year-on-year, and the number of annual transaction users and active merchants both reaching historical highs.

The "Shen Member" program has become an important driver of business growth, effectively directing high-quality takeaway users to in-store merchants while enhancing marketing efficiency, resulting in a significant increase in transaction volume for participating merchants.

It is worth noting that Meituan is accelerating its exploration of overseas markets. Following its launch in Riyadh last October, Meituan further expanded Keeta to all major cities in Saudi Arabia, achieving rapid growth in user base and order volume. According to Sensor Tower data, Keeta reached 1 million weekly active users in January, comparable to Delivery Hero's Hungerstation Bloomberg analysts Catherine Lim and Trini Tan stated:

"Increased spending in the fourth quarter (especially on Keeta) may limit the narrowing of losses from new initiatives.

During an internal meeting on February 28, CEO Wang Xing emphasized that grocery retail, overseas expansion, and technology are the focus of Meituan, and these losses are expected to continue until 2025 and beyond."