- Total Net Revenues: RMB2,764 million, up 34.1% year-over-year.
- Transaction Service Revenues: RMB952 million, up 63.4% year-over-year.
- Non-GAAP Adjusted Operating Income: RMB699 million, up 55.1% year-over-year.
- Non-GAAP Adjusted Net Income: RMB971 million, up 34.3% year-over-year.
- Fulfilled Orders: 49.1 million, up 22% year-over-year.
- Fulfillment Rate: 33.7%, up over 3 percentage points year-over-year.
- Average Shipper MAUs: 2.65 million, up 32.8% year-over-year.
- Revenues from Freight Matching Services: RMB2,328.7 million, up 34.4% year-over-year.
- Revenues from Freight Brokerage Service: RMB1,164.8 million, up 22.7% year-over-year.
- Revenues from Freight Listing Service: RMB212.1 million, up 5.6% year-over-year.
- Revenues from Value-Added Services: RMB435.6 million, up 32% year-over-year.
- Cost of Revenues: RMB1,312.1 million, up from RMB975.3 million in the prior year period.
- Sales and Marketing Expenses: RMB372.3 million, up from RMB281.8 million in the prior year period.
- General and Administrative Expenses: RMB219.2 million, up from RMB201.7 million in the prior year period.
- R&D Expenses: RMB232.1 million, up from RMB223.7 million in the prior year period.
- Income from Operations: RMB565.4 million, up from RMB333.8 million in the prior year period.
- Net Income: RMB840.5 million, up 38% year-over-year.
- Cash and Cash Equivalents: RMB26.8 billion as of June 30, 2024.
- Q3 2024 Revenue Outlook: Between RMB2.78 billion and RMB2.82 billion, representing a year-over-year growth rate of approximately 21.9% to 24.6%.
Release Date: August 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fulfilled orders in the first half of 2024 grew by 25% year-over-year, significantly outpacing the single-digit growth in the overall freight market.
- Average shipper MAUs reached 2.65 million, an increase of 32.8% year-over-year.
- Total net revenues in the quarter reached RMB2,764 million, up 34.1% year-over-year.
- Transaction service revenues grew by 63% year-over-year, becoming a new growth engine.
- Non-GAAP adjusted operating income and adjusted net income increased by 55.1% and 34.3% year-over-year, respectively.
Negative Points
- Macroeconomic challenges and extreme weather conditions, such as prolonged heavy rains, impacted shipments during the quarter.
- Despite the rapid growth in monthly active shippers, the year-over-year growth in shipper freight listing service revenue was modest.
- Sales and marketing expenses increased to RMB372.3 million from RMB281.8 million in the same period of 2023.
- General and administrative expenses increased to RMB219.2 million from RMB201.7 million in the same period of 2023.
- R&D expenses increased to RMB232.1 million from RMB223.7 million in the same period of 2023.
Q & A Highlights
Q: We see that the fulfilled order grew around 22% in the second quarter, still much faster than the overall freight market, but the growth rate has slowed versus the first quarter. What were the factors behind this, and how do you view order volume growth into the third quarter and for the full year?
A: Our robust order volume growth in Q2 was primarily driven by our expanding shipper user base, product and operational strategy optimization, and incremental volume from new business. This was partially offset by overall demand weakness in the road freight market and extreme weather conditions. Despite these challenges, we remain confident in achieving over 20% order volume growth for the full year.
Q: The monthly active shipper reached 2.65 million in the second quarter, marking a year-over-year increase of around 33% and a quarter-over-quarter growth of 24%. What were the main drivers behind this growth, and is the user structure still trending towards direct shippers?
A: The strong user growth was driven by effective user acquisition strategies, including online channels, branding campaigns, and offline advertising. Seasonal factors also played a role. The proportion of direct shippers continues to rise, with monthly active direct shippers increasing by more than 38% year-over-year. We expect sustained order volume growth as more small to medium-sized business owners join our platform.
Q: Could you provide an update on your freight listing services? Despite the rapid growth in mostly active shippers, the year-over-year growth in shipper freight listing service revenue is modest. What are the main reasons for this discrepancy?
A: The number of shipper members reached 860,000 as of June, driven by new users and enhanced membership operations. We strategically lowered the payment barrier for new users and increased benefits for existing members. The repurchase rate for shipper members remains above 80%, demonstrating high reliance and stickiness on our platform.
Q: How was the trucker group's overall activity in the second quarter? Has the continuous increase in commission rate negatively affected the trucker's activity level? What are your key strategies and priorities for trucker operation currently?
A: The average monthly active number of truckers responding to orders remained above 3 million, with quarterly growth of more than 8%. We continue to deepen truckers' reliance on our platform by refining product features and optimizing service scenarios. Our premium cargo bidding function and LTL carpool zone have improved trucker efficiency and user stickiness.
Q: How did the entrusted shipment business progress in the second quarter of this year? What is the overall operational strategy for this transaction type in the second half of this year?
A: The entrusted shipment business grew rapidly, with fulfilled orders accounting for more than 6% of total order volume. Our pricing strategy optimization and influx of new users have driven this growth. We are focusing on our tiered trucker rating system to ensure the quality of transportation and expect ongoing improvement in product optimization and user experience.
Q: Can management comment about the order volume growth in the second quarter for the LTL (less than truckload) business? Did the industry trend from STL (standard truckload) to LTL continue in the second quarter, and how do you position in the sector going forward?
A: The LTL business grew about 47% year-over-year in the second quarter, reaching approximately 28% of total order volume. The growth was driven by the industry shift toward LTL, increased online penetration, and our platform's enhanced product features. We will continue to focus on enhancing carpooling and matching efficiency, user experience, and penetration rates in the LTL business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
