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Yahoo
2 days ago
- Business
- Yahoo
Waterdrop Inc. Announces First Quarter 2025 Unaudited Financial Results
BEIJING, June 5, 2025 /PRNewswire/ -- Waterdrop Inc. ("Waterdrop", the "Company" or "we") (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare service with a positive social impact, today announced its unaudited financial results for the three months ended March 31, 2025. Financial and Operational Highlights for the First Quarter of 2025 Profit growth with stable liquidity: In the first quarter of 2025, net profit attributable to our ordinary shareholders reached RMB108.2 million (US$14.9 million), marking a solid increase of 34.2% year-over-year. We continued to generate positive operating cash flow during the first quarter of 2025. Accelerated business growth: The first-year premiums ("FYP") generated through our insurance business reached RMB2,092.4 million (US$288.3 million) during the first quarter of 2025, representing an increase of 19.3% year over year. Net operating revenue was RMB753.7 million (US$103.9 million), representing an increase of 7.0% year over year. Expanded crowdfunding coverage: As of March 31, 2025, around 475 million people cumulatively had donated an aggregate of RMB68.8 billion to 3.47 million patients through Waterdrop Medical Crowdfunding. Steadfast performance in patient recruitment: As of March 31, 2025, the Company had cumulatively enrolled 11,217 patients into 1,281 clinical trial programs through the E-Find Platform. Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "We achieved remarkable growth in the first quarter of 2025, kicking off the year with robust operational and financial outcomes. Both revenue and profit grew on a year-on-year and quarter-on-quarter basis. In line with our annual growth objectives, our insurance business maintained a strong upward trajectory. We refined our public domain user acquisition strategies and improved services for private domain users, leading to a notable 30.1% year-over-year increase in short-term insurance premium. Product innovation remains a top priority, as highlighted by the upgrade of 'Jiehaoyun', our industry-first product, to version 5.0. Furthermore, we recently introduced a revolutionary Million Medical Insurance product that uniquely offers both a health declaration waiver and guaranteed renewal for five consecutive years. Despite headwinds from product iteration, our long-term insurance premiums grew by 27.6% quarter-on-quarter, demonstrating operational resilience. Waterdrop Medical Crowdfunding further enhanced its risk control framework through ongoing upgrades, improving the rigor of campaign validation processes. This quarter, we expanded our verification platform to cover 92% of domestic cities. The system now enables smoother user-led verification of critical credibility factors like housing, vehicle ownership, and income data. These improvements deliver more reliable and efficient risk management. Our digital clinical trial solution revenue sustained its growth momentum this quarter, reflecting an 11.5% increase compared to the same period last year. We collaborated with a total of 185 pharmaceutical companies and contract research organizations ("CROs"). Meanwhile, we enrolled 822 patients and initiated services for 77 new programs during the first quarter of 2025. We are pleased to report that Waterdrop Guardian AI applications are playing increasingly critical roles in both internal and external use cases. For instance, the penetration of our 'AI Insurance Expert - Medical Insurance' has further expanded and facilitated over 2 million yuan in monthly premiums this quarter. Additionally, our 'AI Service Quality Copilot' has boosted unit operational efficiency by 83% since its launch. Beyond internal initiatives, we have partnered with four Property and Casualty insurers to pilot AI-driven applications in the auto insurance sector, collaborating to set industry benchmarks. Every strategic action we take is anchored in our objective of maximizing shareholder value. The Company distributed approximately US$7.3 million in cash dividends this quarter and repurchased a cumulative total of approximately 54.2 million ADSs from the open market as of May 31, 2025. Our long-standing commitment to user-centric philosophy and AI investment laid the foundation for our achievements. Looking ahead to the upcoming quarters of 2025, we will leverage our proven business know-how to accelerate operational growth, creating greater value to both users and shareholders." Financial Results for the First Quarter of 2025 Operating revenue, net Net operating revenue for the first quarter of 2025 increased by 7.0% year-over-year to RMB753.7 million (US$103.9 million) from RMB704.7 million for the same period of 2024. On a quarter-over-quarter basis, net operating revenue increased by 9.7%. Insurance-related income includes insurance brokerage income and technical service income. Insurance brokerage income represents brokerage commissions earned from insurance companies. Technical service income is derived from providing technical services including customer relationship maintenance, customer complaint management, claim review, and user referral services, among other things, to insurance companies, insurance brokers, and agency companies. Our insurance-related income amounted to RMB658.0 million (US$90.7 million) in the first quarter of 2025, representing an increase of 8.4% year-over-year from RMB606.8 million for the first quarter of 2024, which was mainly due to an increase in insurance brokerage income. On a quarter-over-quarter basis, insurance-related income increased by 13.0%. Crowdfunding service fees represent the service income earned when patients successfully withdraw the proceeds from their crowdfunding campaigns. Our role is to operate the Waterdrop Medical Crowdfunding platform to provide crowdfunding related services through the internet, enabling patients with significant medical bills to seek help from caring hearts through technology (the "medical crowdfunding services"). Our medical crowdfunding services generally consist of providing technical and internet support, managing, reviewing and supervising the crowdfunding campaigns, providing comprehensive risk management and anti-fraud measures, and facilitating the collection and transfer of the funds. For the first quarter of 2025, we generated RMB67.1 million (US$9.3 million) in service fees, remaining stable compared with the service fees of RMB67.4 million for the first quarter of 2024. On a quarter-over-quarter basis, crowdfunding service fees increased by 3.1%. Digital clinical trial solution income represents the service income earned from our customers mainly including biopharmaceutical companies and leading biotechnology companies. We match qualified and suitable patients for enrollment in clinical trials for our customers and generate digital clinical trial solution revenue for successful matches and we typically charge our customers a fixed unit price per successful match. For the first quarter of 2025, our digital clinical trial solution income amounted to RMB23.0 million (US$3.2 million), representing an increase of 11.5% from RMB20.6 million in the same period of 2024. On a quarter-over-quarter basis, digital clinical trial solution income decreased by 9.9%. Operating costs and expenses Operating costs and expenses increased by 3.0% year over year to RMB677.8 million (US$93.4 million) for the first quarter of 2025. On a quarter-over-quarter basis, operating costs and expenses increased by 6.9%. Operating costs increased by 13.0% year over year to RMB374.2 million (US$51.6 million) for the first quarter of 2025, as compared with RMB331.2 million for the first quarter of 2024, which was primarily driven by (i) an increase of RMB37.7 million in costs of referral and service fees, (ii) an increase of RMB2.8 million in the costs for the digital clinical trial solution consultants team, and (iii) an increase of RMB1.7 million in personnel costs. On a quarter-over-quarter basis, operating costs increased by 15.6% from RMB323.8 million, primarily due to (i) an increase of RMB28.3 million in costs of referral and service fees, and (ii) an increase of RMB8.4 million in the costs for the crowdfunding consultants team. Sales and marketing expenses decreased by 5.4% year over year to RMB172.4 million (US$23.8 million) for the first quarter of 2025, as compared with RMB182.1 million for the same quarter of 2024. The decrease was primarily due to (i) a decrease of RMB5.9 million in outsourced sales and marketing service fees to third parties, (ii) a decrease of RMB5.6 million in personnel costs and share-based compensation expenses, partially offset by (iii) an increase of RMB4.5 million in marketing expenses for third-party traffic channels. On a quarter-over-quarter basis, sales and marketing expenses decreased by 5.3% from RMB182.0 million, primarily due to (i) a decrease of RMB7.5 million in marketing expenses for third-party traffic channels, and (ii) a decrease of RMB1.9 million in outsourced sales and marketing service fees to third parties. General and administrative expenses decreased by 15.8% year over year to RMB74.9 million (US$10.3 million) for the first quarter of 2025, compared with RMB89.0 million for the same quarter of 2024. The year-over-year variance was due to (i) a decrease of RMB9.8 million in professional service fees, and (ii) a decrease of RMB4.0 million in allowance for credit losses. On a quarter-over-quarter basis, general and administrative expenses increased by 1.7% from RMB73.7 million, due to (i) an increase of RMB4.7 million in allowance for credit losses, partially offset by (ii) a decrease of RMB2.6 million in professional service fees. Research and development expenses remained stable at RMB56.2 million (US$7.8 million) for the first quarter of 2025, maintaining nearly the same level as RMB56.0 million for the same period of 2024. On a quarter-over-quarter basis, research and development expenses increased by 3.6% from RMB54.3 million. The increase was primarily due to an increase of RMB1.7 million in personnel costs and share-based compensation expenses. Operating profit for the first quarter of 2025 was RMB75.9 million (US$10.5 million), as compared with RMB46.4 million for the first quarter of 2024 and RMB53.0 million for the fourth quarter of 2024. Interest income for the first quarter of 2025 was RMB33.8 million (US$4.7 million), as compared with RMB39.8 million for the first quarter of 2024 and RMB35.8 million for the fourth quarter of 2024. Income tax expense for the first quarter of 2025 was RMB13.3 million (US$1.8 million), as compared with RMB8.6 million for the first quarter of 2024 and RMB1.9 million for the fourth quarter of 2024. Net profit attributable to the Company's ordinary shareholders for the first quarter of 2025 was RMB108.2 million (US$14.9 million), as compared with RMB80.6 million for the same period of 2024, and RMB99.6 million for the fourth quarter of 2024. Adjusted net profit attributable to the Company's ordinary shareholders (non-GAAP(1)) for the first quarter of 2025 was RMB130.0 million (US$17.9 million), as compared with RMB98.4 million for the same period of 2024, and RMB107.1 million for the fourth quarter of 2024. Cash position(2) As of March 31, 2025, cash position of the Company was RMB3,543.3 million (US$488.3 million), as compared with RMB3,670.3 million as of December 31, 2024. (1) See the sections entitled "Non-GAAP Financial Measure" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this announcement. (2) Cash position includes cash and cash equivalents, short-term investments, and long-term debt investments included in long-term investments. Share Repurchase Programs Pursuant to the share repurchase programs launched in September 2021, September 2022, September 2023 and September 2024, respectively, we had cumulatively repurchased approximately 54.2 million ADSs from the open market with cash for a total consideration of approximately US$106.6 million as of May 31, 2025. Supplemental Information We organize and report our business in the following operating segments: Insurance, which mainly includes insurance brokerage service and technical service; Crowdfunding, which mainly includes crowdfunding service; and Others, which do not individually or in the aggregate meet the quantitative and qualitative thresholds to be individually reportable and are aggregated. The table below sets forth the segment operating results, with the three-month comparative figures retrospectively adjusted to conform to this presentation. For the Three Months Ended March 31, 2024December 31, 2024March 31, 2025 RMBRMBRMBUSD (All amounts in thousands) Operating revenue, net Insurance 606,777582,442657,98890,673 Crowdfunding 67,35065,13867,1319,251 Others 30,57339,24428,5753,938 Total consolidated operating revenue, net704,700686,824753,694103,862 Operating costs and expenses Insurance (477,614)(479,856)(506,575)(69,808) Crowdfunding (99,587)(87,147)(97,299)(13,408) Others (62,005)(45,177)(54,000)(7,442) Operating profit/(loss) Insurance 129,163102,586151,41320,865 Crowdfunding (32,237)(22,009)(30,168)(4,157) Others (31,432)(5,933)(25,425)(3,504) Total segment operating profit65,49474,64495,82013,204 Unallocated items*(19,130)(21,684)(19,927)(2,746) Total consolidated operating profit46,36452,96075,89310,458 Total other income42,78140,44341,6905,745 Consolidated profit before income tax89,14593,403117,58316,203* The share-based compensation represents unallocated items in the segment information because our management does not consider this as part of the segment operating performance measure. Exchange Rate This announcement contains translations of certain RMB amounts into U.S. dollars ("USD" or "US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Non-GAAP Financial Measure The Company uses non-GAAP financial measure, adjusted net profit attributable to our ordinary shareholders, in evaluating the Company's operating results and for financial and operational decision-making purposes. Adjusted net profit attributable to our ordinary shareholders represents net profit attributable to our ordinary shareholders excluding share-based compensation expense attributable to our ordinary shareholders, foreign currency exchange gain or losses, and impact of terminating the mutual aid plan on non-GAAP adjustments. Such adjustments have no impact on income tax. The non-GAAP financial measure is not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measure has limitations as analytical tools and when assessing the Company's operating performance, investors should not consider it in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Investors are encouraged to review the Company's historical non-GAAP financial measure to the most directly comparable GAAP measure. Adjusted net profit attributable to our ordinary shareholders presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measure differently, limiting its usefulness as a comparative measure to our data. The Company mitigates these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measure, please see the table captioned "Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. Waterdrop may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Waterdrop's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Waterdrop's mission, goals and strategies; Waterdrop's future business development, financial condition and results of operations; the expected growth of the insurance, medical crowdfunding and healthcare industry in China; Waterdrop's expectations regarding demand for and market acceptance of our products and services; Waterdrop's expectations regarding its relationships with consumers, insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance, medical crowdfunding and healthcare industry. Further information regarding these and other risks is included in Waterdrop's filings with the SEC. All information provided in this press release is as of the date of this press release, and Waterdrop does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Conference Call Information Waterdrop's management team will hold a conference call on June 5, 2025 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time on the same day) to discuss the financial results. Dial-in details for the earnings conference call are as follows: International: 1-412-317-6061 United States Toll Free: 1-888-317-6003 Hong Kong Toll Free: 800-963976 Hong Kong: 852-58081995 Mainland China: 4001-206115 Chinese Line (Mandarin) Entry Number: 0072517 English Interpretation Line (Listen-only Mode) Entry Number: 8162178 Participants can choose between the Chinese and the English interpretation lines. Please note that the English interpretation option will be in listen-only mode. Please dial in 15 minutes before the call is scheduled to begin and provide the Elite Entry Number to join the call. Telephone replays will be accessible two hours after the conclusion of the conference call until June 12, 2025 by dialing the following numbers: United States Toll Free: 1-877-344-7529 International: 1-412-317-0088 Chinese Line Access Code: 9960990 English Interpretation Line Access Code: 6469856 A live and archived webcast of the conference call will also be available at the Company's investor relations website at About Waterdrop Inc. Waterdrop Inc. (NYSE: WDH) is a leading technology platform dedicated to insurance and healthcare service with a positive social impact. Founded in 2016, with the comprehensive coverage of Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding, Waterdrop aims to bring insurance and healthcare service to billions through technology. For more information, please visit For investor inquiries, please contactWaterdrop WATERDROP INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, unless otherwise noted) As of December 31, 2024March 31, 2025RMBRMBUSD AssetsCurrent assets Cash and cash equivalents 986,3231,158,059159,585 Restricted cash 520,588603,92483,223 Short-term investments 1,612,619778,068107,221 Accounts receivable, net 716,206768,855105,951 Current contract assets 619,436632,52587,164 Amount due from related parties 25727037 Prepaid expense and other assets 182,641192,84926,575 Total current assets 4,638,0704,134,550569,756 Non-current assets Non-current contract assets 153,749171,22623,596 Property, equipment and software, net 240,024240,84633,189 Intangible assets, net 153,011152,97921,081 Long-term investments 1,114,1601,649,792227,347 Right of use assets, net 46,87236,9705,095 Deferred tax assets 27,02821,2782,932 Goodwill 80,75180,75111,128 Total non-current assets 1,815,5952,353,842324,368 Total assets 6,453,6656,488,392894,124 Liabilities, Mezzanine Equity and Shareholders' Equity Current liabilities Amount due to related parties 10,61610,8511,495 Insurance premium payables 537,344624,20286,017 Accrued expenses and other current liabilities 704,035791,425109,061 Short-term loans 198,373-- Current lease liabilities 34,57330,9734,268 Total current liabilities 1,484,9411,457,451200,841 Non-current liabilities Non-current lease liabilities 10,9715,707786 Deferred tax liabilities 84,18591,68012,634 Total non-current liabilities 95,15697,38713,420 Total liabilities 1,580,0971,554,838214,261 Mezzanine Equity Redeemable non-controlling interests 76,13372,1939,948 Shareholders' equity Class A ordinary shares 11211316 Class B ordinary shares 27274 Treasury stock (15)(16)(2) Additional paid-in capital 6,832,2146,784,389934,914 Accumulated other comprehensive income 159,550163,10622,477 Accumulated deficit (2,194,453)(2,086,258)(287,494) Total shareholders' equity 4,797,4354,861,361669,915 Total liabilities, mezzanine equity and shareholders' equity 6,453,6656,488,392894,124 WATERDROP INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (All amounts in thousands, except for share and per share data, or otherwise noted)For the Three Months Ended March 31, 2024December 31, 2024March 31, 2025 RMBRMBRMBUSDOperating revenue, net704,700686,824753,694103,862 Operating costs and expenses(i) Operating costs (331,243)(323,836)(374,218)(51,569) Sales and marketing expenses (182,146)(182,038)(172,396)(23,757) General and administrative expenses (88,961)(73,725)(74,943)(10,327) Research and development expenses (55,986)(54,265)(56,244)(7,751) Total operating costs and expenses(658,336)(633,864)(677,801)(93,404) Operating profit46,36452,96075,89310,458 Other income Interest income 39,80435,80233,8144,660 Foreign currency exchange gain/(loss) 1,514(963)(2,103)(290) Others, net 1,4635,6049,9791,375 Profit before income tax89,14593,403117,58316,203 Income tax expense (8,588)(1,936)(13,328)(1,837) Net profit 80,55791,467104,25514,366 Net loss attributable to mezzanine equity classified as non- controlling interests shareholders (75)(8,148)(3,940)(543) Net profit attributable to ordinary shareholders80,63299,615108,19514,909 Other comprehensive income: Foreign currency translation adjustment, net of tax 25,14389,187(14,056)(1,937) Unrealized (loss)/gain on available for sale investments, net of tax -(29,330)17,6122,427 Total comprehensive income105,700151,324107,81114,856 Total comprehensive loss attributable to mezzanine equity classified as non-controlling interests shareholders (75)(8,148)(3,940)(543) Total comprehensive income attributable to ordinary shareholders105,775159,472111,75115,399 Weighted average number of ordinary shares used in computing net profit per share Basic 3,696,619,1723,620,987,5663,620,380,8623,620,380,862 Diluted 3,756,462,1073,699,552,3003,711,999,0003,711,999,000 Net profit per share attributable to ordinary shareholders Basic 0.020.030.030.00 Diluted 0.020.030.030.00 (i) Share-based compensation expenses are included in the operating costs and expenses as follows. For the Three Months Ended March 31, 2024December 31, 2024March 31, 2025 RMBRMBRMBUSD Sales and marketing expenses(1,820)(1,692)(1,899)(262) General and administrative expenses(14,327)(17,336)(15,527)(2,140) Research and development expenses(2,983)(2,656)(2,501)(344) Total (19,130)(21,684)(19,927)(2,746) WATERDROP INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, unless otherwise noted)For the Three Months Ended March 31, 2024December 31, 2024March 31, 2025 RMBRMBRMBUSDNet profit attributable to the Company's ordinary shareholders80,63299,615108,19514,909 Add: Share-based compensation expense attributable to the Company's ordinary shareholders 19,26021,50219,7502,722 Foreign currency exchange (gain)/ loss (1,514)9632,103290 Impact of terminating the mutual aid plan(ii) -(14,985)-- Adjusted net profit attributable to the Company's ordinary shareholders98,378107,095130,04817,921 (ii) This represents the reversal of the difference between estimated cost of medical expense coverage and actual payment. View original content: SOURCE Waterdrop Inc. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Hello Group Inc. Announces Unaudited Financial Results for the First Quarter of 2025
BEIJING, June 5, 2025 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading player in Asia's online social and entertainment space, today announced its unaudited financial results for the first quarter of 2025. First Quarter of 2025 Highlights Net revenues decreased by 1.5% year over year to RMB2,520.8 million (US$347.4 million*) in the first quarter of 2025. Net revenues from overseas increased by 71.9% year over year to RMB414.6 million (US$57.1 million) in the first quarter of 2025. Net income attributable to Hello Group Inc. increased to RMB358.0 million (US$49.3 million) in the first quarter of 2025, from RMB5.2 million in the same period of 2024. Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB403.8 million (US$55.6 million) in the first quarter of 2025, from RMB59.9 million in the same period of 2024. Diluted net income per American Depositary Share ("ADS") was RMB2.07 (US$0.29) in the first quarter of 2025, compared to RMB0.03 in the same period of 2024. Non-GAAP diluted net income per ADS (note 1) was RMB2.34 (US$0.32) in the first quarter of 2025, compared to RMB0.31 in the same period of 2024. Monthly Active Users ("MAU") on Tantan app were 10.7 million in March 2025, compared to 13.7 million in March 2024. For the Momo app total paying users was 4.2 million for the first quarter of 2025, compared to 7.1 million for the same period last year. Tantan had 0.8 million paying users for the first quarter of 2025 compared to 1.1 million from the year ago period. * This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.2567 to US$1.00, the effective noon buying rate for March 31, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board. "Q1 marked a strong start to 2025," commented Yan Tang, Chairman and CEO of Hello Group. "Our mainland PRC businesses continue to deliver solid profits, thanks to our ongoing efforts in cost reduction and efficiency improvement, as well as gradual stabilization of external factors. Meanwhile, our overseas business growth has accelerated, driven by further localization of existing products and the initial monetization of new apps. We expect the overseas products to make an increasingly meaningful contribution to the Group's financials in the coming quarters." First Quarter of 2025 Financial Results Net revenues Total net revenues were RMB2,520.8 million (US$347.4 million) in the first quarter of 2025, a decrease of 1.5% from RMB2,560.4 million in the first quarter of 2024. Starting from the first quarter of 2025, the Company combined the live video service and value-added services lines, which are now collectively referred to as value-added services. This change reflects the increasing convergence of the two business lines in terms of user mentality and product format. The combined reporting more accurately reflects user behavior and spending across the Company's social entertainment ecosystem. Additionally, the Company consolidated mobile marketing services, mobile games and other services, which are now collectively reported under "other services." Value-added service revenues mainly include virtual gift revenues from various audio, video and text- based scenarios, and membership subscription revenues. Total value-added service revenues were RMB2,489.9 million (US$343.1 million) in the first quarter of 2025, a decrease of 1.7% from RMB2,532.9 million during the same period of 2024. The decrease was primarily due to a soft consumer sentiment among top users in the current macro environment of Momo app, and to a lesser extent, the decline in Tantan's paying users which was in turn due to the decline in user base. The decrease was partially offset by the rapid revenue growth from our overseas apps, driven by the strong performance of the relatively established brand--Soulchill and the monetization of a collection of new apps. Other services revenues were RMB30.9 million (US$4.3 million) in the first quarter of 2025, compared to RMB27.5 million during the same period of 2024. Net revenues from Chinese mainland decreased from RMB2,319.2 million in the first quarter of 2024 to RMB2,106.2 million (US$290.2 million) in the first quarter of 2025, primarily due to the decrease in net revenues from Momo app and Tantan app. Net revenues from overseas increased from RMB241.2 million in the first quarter of 2024 to RMB414.6 million (US$57.1 million) in the first quarter of 2025, driven by the growth of Souchill and incremental revenue from emerging brands. Cost and expenses Cost and expenses were RMB2,234.5 million (US$307.9 million) in the first quarter of 2025, an increase of 5.4% from RMB2,120.0 million in the first quarter of 2024. The increase was primarily attributable to: (a) an increase in revenue sharing with virtual gift recipients for overseas apps, which was partially offset by a decrease in revenue sharing with broadcasters on Momo apps; and (b) an increase in sales and marketing expenses related to the promotion of overseas apps, partially offset by a decrease in Tantan's marketing and promotional expense due to our continuous initiatives to control cost and optimize Tantan's channel marketing strategy. Non-GAAP cost and expenses (note 1) were RMB2,188.8 million (US$301.6 million) in the first quarter of 2025, compared to RMB2,065.3 million during the same period of 2024. Income from operations Income from operations was RMB299.5 million (US$41.3 million) in the first quarter of 2025, compared to RMB460.3 million during the same period of 2024. Non-GAAP income from operations (note 1) was RMB345.3 million (US$47.6 million) in the first quarter of 2025, compared to RMB515.0 million during the same period of 2024. Income tax expenses Income tax expenses were RMB70.4 million (US$9.7 million) in the first quarter of 2025, compared to RMB557.6 million in the first quarter of 2024. The decrease in income tax expenses was primarily due to the accrual in the first quarter of 2024 of withholding income tax of RMB448.6 million associated with historical undistributed earnings generated by our wholly-foreign owned enterprise. Net income Net income was RMB358.5 million (US$49.4 million) in the first quarter of 2025, compared to RMB5.2 million during the same period of 2024. Non-GAAP net income (note 1) was RMB404.3 million (US$55.7 million) in the first quarter of 2025, compared to RMB59.9 million during the same period of 2024. Net income attributable to Hello Group Inc. Net income attributable to Hello Group Inc. was RMB358.0 million (US$49.3 million) in the first quarter of 2025, compared to RMB5.2 million during the same period of 2024. Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB403.8 million (US$55.6 million) in the first quarter of 2025, compared to RMB59.9 million during the same period of 2024. Net income per ADS Diluted net income per ADS was RMB2.07 (US$0.29) in the first quarter of 2025, compared to RMB0.03 in the first quarter of 2024. Non-GAAP diluted net income per ADS (note 1) was RMB2.34 (US$0.32) in the first quarter of 2025, compared to RMB0.31 in the first quarter of 2024. Cash and cash flow As of March 31, 2025, the Company's cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB12,785.9 million (US$1,761.9 million), compared to RMB14,728.5 million as of December 31, 2024. Net cash provided by operating activities in the first quarter of 2025 was RMB239.7 million (US$33.0 million), compared to RMB400.2 million in the first quarter of 2024. Change in Segment Reporting Effective from the first quarter of 2025, the Company implemented the strategic decision to integrate the operations of Momo, Tantan, and QOOL into a unified business structure, and as a result, changed its segment disclosure from three operating segments to a single operating segment. This change reflects the Company's strategic focus and aligns with the financial information that the Company's chief operating decision maker currently receives and uses to allocate resources and assess performance of the Company. Prior period segment information has been retrospectively revised to conform to the current presentation. Recent Development Payment of a special cash dividend In March 2025, Hello Group's board of directors declared a special cash dividend in the amount of US$0.30 per ADS, or US$0.15 per ordinary share. The cash dividend was paid in April 2025 to shareholders of record at the close of business on April 11, 2025. The aggregate amount of cash dividends paid was US$47.9 million. Share repurchase program As of June, 5, 2025, the Company has repurchased 47.8 million ADSs for US$291.3 million on the open market under Share Repurchase Program announced on June 7, 2022 and amended on March 14, 2024 and March 12, 2025, at an average purchase price of US$6.07 per ADS. The remaining size of the program is USD $194.8 million. Business Outlook For the second quarter of 2025, the Company expects total net revenues to be between RMB2.57 billion to RMB2.67 billion, representing a decrease of 4.5% to 0.8% year over year. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change. Note 1: Non-GAAP measures To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and such adjustments has no impact on income tax. Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures. Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. Our non-GAAP information (including non-GAAP cost and operating expenses, income from operations, net income, net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and such adjustments has no impact on income tax. A limitation of using these non-GAAP financial measures is that share-based compensation and amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release. Conference Call Hello Group's management will host an earnings conference call on Thursday, June 5, 2025, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on June 5, 2025). Participants can register for the conference call by navigating to: Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin. A telephone replay of the call will be available after the conclusion of the conference call through June 12, 2025. The dial-in details for the replay are as follows: U.S. / Canada: 1-855-883-1031 Hong Kong: 800-930-639Passcode: 10047425 Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group's website at About Hello Group Inc. We are a leading player in Asia's online social networking space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. Starting from 2019, we have incubated a number of other new apps, such as Hertz, Soulchill, and Duidui, which target more niche markets and more selective demographics. For investor and media inquiries, please contact: Hello Group Inc. Investor RelationsPhone: +86-10-5731-0538Email: ir@ Christensen In ChinaMs. Xiaoyan SuPhone: +86-10-5900-1548E-mail: In U.S. Ms. Linda BergkampPhone: +1-480-614-3004Email: Safe Harbor Statement This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the second quarter of 2025, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program. Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the first quarter of 2025 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the second quarter of 2025 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, general economic conditions, and other factors. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release. Hello Group Inc. Unaudited Condensed Consolidated Statement of Operations (All amounts in thousands, except share and per share data)Three months Ended March 31202420252025RMBRMBUS$ Net revenues(i):Value-added service 2,532,9172,489,902343,118 Other services 27,50330,9334,262 Total net revenues 2,560,4202,520,835347,380 Cost and expenses:Cost of revenues (1,503,008)(1,569,074)(216,224) Research and development (192,191)(195,769)(26,978) Sales and marketing (293,431)(329,178)(45,362) General and administrative (131,381)(140,511)(19,363) Total cost and expenses (2,120,011)(2,234,532)(307,927) Other operating income, net 19,90613,1821,817 Income from operations 460,315299,48541,270 Interest income 121,107120,33816,583 Interest expense (23,698)(30,659)(4,225) Other gain or loss, net (9,245)-- Income before income tax and share of income on equity methodinvestments 548,479389,16453,628 Income tax expenses (557,613)(70,406)(9,702) (Loss) income before share of income on equity methodinvestments (9,134)318,75843,926 Share of income on equity method investments 14,31839,7315,475 Net income 5,184358,48949,401 Less: net income attributable to non-controlling interest -49568 Net income attributable to the shareholders of Hello Group Inc. 5,184357,99449,333 Net income per share attributable to ordinary shareholdersBasic 0.011.050.15 Diluted 0.011.040.14 Weighted average shares used in calculating net income per ordinaryshareBasic 374,650,649339,405,347339,405,347 Diluted 389,278,806345,905,274345,905,274 (i) The following table presents revenues by geographic area based on the addresses of our customers of our users: Three months Ended March 31 202420252025RMBRMBUS$ Chinese mainland 2,319,2232,106,233290,247 Overseas 241,197414,60257,133 Total 2,560,4202,520,835347,380 Hello Group Inc. Unaudited Condensed Consolidated Statement of Comprehensive Income (All amounts in thousands, except share and per share data) Three monthsEnded March 31 202420252025 RMBRMBUS$Net income 5,184358,48949,401Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 54,894(43,338)(5,972)Comprehensive income 60,078315,15143,429Less: comprehensive income (loss) attributed to the non-controllinginterest 3,084(599)(83)Comprehensive income attributable to Hello Group Inc. 56,994315,75043,512 Hello Group Inc. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except share and per share data)December 31March 31March 31202420252025 RMB RMBUS$ AssetsCurrent assetsCash and cash equivalents 4,122,6595,381,833741,636 Short-term deposits 2,026,245762,835105,121 Restricted cash 4,566,4772,637,531363,461 Accounts receivable, net of allowance for credit losses of RMB12,433 andRMB17,427 as of December 31, 2024 and March 31, 2025, respectively 192,317222,21330,622 Prepaid expenses and other current assets 1,104,1721,099,969151,580 Total current assets 12,011,87010,104,3811,392,420 Long-term deposits 3,059,8603,051,340420,486 Long-term restricted cash 953,285952,391131,243 Right-of-use assets, net 252,169216,05429,773 Property and equipment, net 897,036916,423126,286 Intangible assets, net 86,661191,92726,448 Rental deposits 13,28013,3871,845 Long-term investments 825,533863,342118,972 Other non-current assets 110,960133,42018,386 Deferred tax assets 36,06635,7264,923 Goodwill 136,250249,41234,370 Total assets 18,382,97016,727,8032,305,152 Liabilities and equityCurrent liabilitiesAccounts payable 615,254619,82485,414 Deferred revenue 427,702437,35160,269 Accrued expenses and other current liabilities 704,410652,23489,880 Lease liabilities due within one year 141,971127,76517,606 Income tax payable 157,05756,5657,795 Deferred consideration in connection with business acquisitions-current 28,02727,8633,840 Convertible Senior Notes-current 20,19120,0902,768 Dividends payable -347,40347,873 Long-term borrowings, current portion 1,938,3851,939,245267,235 Short-term borrowings 2,365,535675,00093,017 Total current liabilities 6,398,5324,903,340675,697 Deferred consideration in connection with business acquisitions-non current 65,69465,3109,000 Lease liabilities 115,10592,33812,725 Deferred tax liabilities 241,915254,53035,075 Long-term borrowings -3,227445 Other non-current liabilities 129,051143,55219,782 Total liabilities 6,950,2975,462,297752,724 Shareholder's equity (ii) 11,432,67311,265,5061,552,428 Total liabilities and shareholder's equity 18,382,97016,727,8032,305,152 (ii): As of March 31, 2025, the number of ordinary shares outstanding was 321,338,936. Hello Group Inc. Unaudited Condensed Consolidated Statement of Cash Flows (All amounts in thousands, except share and per share data)Three monthsEnded March 31202420252025RMBRMBUS$ Cash flows from operating activities:Net income 5,184358,48949,401 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation of property and equipment 14,31012,3911,708 Amortization of intangible assets 1,2796,191853 Share-based compensation 54,67040,8605,631 Share of income on equity method investments (14,318)(39,731)(5,475) Returns on investments -50870 Loss on long-term investments 9,245-- Gain or loss on disposal of property and equipment 258(102)(14) Provision of loss on receivable and other assets 1,7765,405745 Changes in operating assets and liabilities:Accounts receivable 10,980(19,144)(2,638) Prepaid expenses and other current assets (9,677)11,3751,568 Rental deposits (802)(110)(15) Deferred tax assets (2,498)34047 Other non-current assets (7,597)35,0464,829 Accounts payable (17,454)(13,543)(1,866) Income tax payable 6,036(100,979)(13,915) Deferred revenue 16,6749,0351,245 Accrued expenses and other current liabilities (56,800)(70,983)(9,782) Deferred tax liabilities 365,01112,7131,752 Other non-current liabilities 23,893(8,040)(1,108) Net cash provided by operating activities 400,170239,72133,036 Cash flows from investing activities:Purchase of property and equipment (44,176)(27,814)(3,833) Payment for business acquisition -(194,390)(26,788) Cash received on maturity of short-term deposits 300,0001,107,245152,582 Purchase of long-term deposits (718,860)-- Cash received on maturity of long-term deposits 718,860150,00020,671 Cash received from sales of long-term investment 2,000-- Loan to a third-party company -(27,478)(3,787) Other investing activities 38519226 Net cash provided by investing activities 258,2091,007,755138,871 Cash flows from financing activities:Proceeds from exercise of share options 112- Repurchase of ordinary shares (112,261)(201,529)(27,771) Proceeds from short-term borrowings 1,331,635-- Repayment of short-term borrowings (215)(1,690,535)(232,962) Repayment of long-term borrowings -(395)(54) Net cash provided (used in) by financing activities 1,219,170(1,892,457)(260,787) Effect of exchange rate changes 20,814(25,685)(3,541) Net increase (decrease) in cash and cash equivalents 1,898,363(670,666)(92,421) Cash, cash equivalents and restricted cash at the beginning of period 8,282,9129,642,4211,328,761 Cash, cash equivalents and restricted cash at the end of period 10,181,2758,971,7551,236,340 Hello Group Inc. Reconciliation of Non-GAAP financial measures to comparable GAAP measures (All amounts in thousands, except per share data)1. Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP monthsThree monthsThree months Ended March 31, 2024Ended March 31, 2025Ended March 31, 2025GAAP Share-basedcompensation Non-GAAPGAAP Amortization ofintangible assetsfrom businessacquisitions Share-basedcompensation Non-GAAPGAAP Amortization ofintangible assetsfrom businessacquisitions Share-basedcompensation Non-GAAP RMB RMB RMB RMB RMB RMB RMB US$ US$ US$ US$ Cost of revenues (1,503,008) 1,882 (1,501,126)(1,569,074) 1,263 1,774 (1,566,037)(216,224) 174 244 (215,806) Research and development (192,191) 8,786 (183,405)(195,769) 859 9,060 (185,850)(26,978) 118 1,249 (25,611) Sales and marketing (293,431) 6,117 (287,314)(329,178) 2,790 4,311 (322,077)(45,362) 384 594 (44,384) General and administrative (131,381) 37,885 (93,496)(140,511) - 25,715 (114,796)(19,363) - 3,544 (15,819) Cost and operating expenses (2,120,011) 54,670 (2,065,341)(2,234,532) 4,912 40,860 (2,188,760)(307,927) 676 5,631 (301,620) Income from operations 460,315 54,670 514,985299,485 4,912 40,860 345,25741,270 676 5,631 47,577 Net income attributable to Hello Group Inc. 5,184 54,670 59,854357,994 4,912 40,860 403,76649,333 676 5,631 55,640 View original content: SOURCE Hello Group Inc. 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Yahoo
21-05-2025
- Business
- Yahoo
Full Truck Alliance Co. Ltd. Announces First Quarter 2025 Unaudited Financial Results
GUIYANG, China, May 21, 2025 /PRNewswire/ -- Full Truck Alliance Co. Ltd. ("FTA" or the "Company") (NYSE: YMM), a leading digital freight platform, today announced its unaudited financial results for the first quarter ended March 31, 2025. First Quarter 2025 Financial and Operational Highlights Total net revenues in the first quarter of 2025 were RMB2,699.9 million (US$372.1 million), an increase of 19.0% from RMB2,268.7million in the same period of 2024. Net income in the first quarter of 2025 was RMB1,278.9 million (US$176.2 million), an increase of 118.1% from RMB586.4 million in the same period of 2024. Non-GAAP adjusted net income1 in the first quarter of 2025 was RMB1,391.4 million (US$191.7 million), an increase of 84.0% from RMB756.4 million in the same period of 2024. Fulfilled orders2 in the first quarter of 2025 reached 48.2 million, an increase of 22.6% from 39.3 million in the same period of 2024. Average shipper MAUs3 in the first quarter of 2025 reached 2.76 million, an increase of 28.8% from 2.14 million in the same period of 2024. Mr. Peter Hui Zhang, Founder, Chairman, and Chief Executive Officer of FTA, stated, "In the first quarter of 2025, we continued to enhance operational efficiency and reduce logistics costs within China's road freight industry. Leveraging cutting-edge digitalization and smart technologies, we successfully navigated a challenging yet opportunity-rich economic environment. Our ongoing investments in brand building and online user acquisition drove strong growth in our shipper base and consistent optimization of our user structure. Furthermore, upgrades to our trucker rating system, enhanced priority access, our Premium Cargo Bidding mechanism as well as our trucker membership cultivated a more robust trucker ecosystem and increased matching efficiency. As a leader propelling the new quality productive forces of the logistics industry, we remain dedicated to seizing the opportunities presented by the industry's digitalization and AI-driven transformation, fostering a smarter, more sustainable digital logistics ecosystem." Mr. Langbo Guo, President of FTA, added, "We maintained strong momentum in the healthy and rapid development of our truck-shipper ecosystem during the first quarter. Average shipper MAUs reached 2.76 million, up 28.8% year over year. As a result, total net revenues rose to RMB2.7 billion, an increase of 19.0% year over year. Notably, revenue from our core transaction service sustained its strong upward trajectory, rising 51.5% year over year to RMB1.05 billion. In line with our topline growth, net income totaled RMB1.28 billion, while non-GAAP adjusted net income reached RMB1.39 billion, marking significant year-over-year increases of 118.1% and 84.0%, respectively. Looking ahead, we will continue to pursue a development path that balances scale and quality. Through AI-powered innovations and ecosystem collaborations, we will continue to deliver long-term returns for our shareholders." Mr. Simon Cai, Chief Financing and Investment Officer of FTA, commented, "We believe that the era of artificial intelligence and autonomous driving has reached a pivotal inflection point, transitioning from technological validation to large-scale deployment. Our planned additional investment in Plus PRC Holding Ltd. underscores our unwavering commitment to technological innovation and long-term growth. By forging deep collaboration with Plus PRC Holding Ltd., we aim to capitalize on the burgeoning opportunities within intelligent technologies, enabling us to accelerate the development of a robust ecosystem, spanning from cutting-edge research and development to effective commercial monetization. We are confident that this forward-looking strategy will establish a significant first-mover advantage in addressing the critical needs of road transportation, further reinforcing our leadership position in the industry." 1 Non-GAAP adjusted net income is defined as net income excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; (iv) impairment loss of long-term investment; and (v) tax effects of non-GAAP adjustments. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release. 2 Fulfilled orders on our platform in a given period are defined as all shipping orders matched through our platform during such period but exclude (i) shipping orders that are subsequently canceled and (ii) shipping orders for which our users failed to specify any freight prices, as there are substantial uncertainties as to whether such shipping orders are fulfilled. 3 Average shipper MAUs in a given period are calculated by dividing (i) the sum of shipper MAUs for each month of a given period by (ii) the number of months in a given period. Shipper MAUs are defined as the number of active shippers on our platform in a given month. Active shippers are defined as the aggregate number of registered shipper accounts that have posted at least one shipping order on our platform during a given period. First Quarter 2025 Financial Results Net Revenues (including value added taxes, or "VAT," of RMB1,039.3 million and RMB1,064.9 million for the three months ended March 31, 2024 and 2025, respectively). Total net revenues in the first quarter of 2025 were RMB2,699.9 million (US$372.1 million), representing an increase of 19.0% from RMB2,268.7 million in the same period of 2024, primarily attributable to an increase in revenues from freight matching services. Freight matching services. Revenues from freight matching services in the first quarter of 2025 were RMB2,247.1 million (US$309.7 million), representing an increase of 20.2% from RMB1,869.7 million in the same period of 2024. The increase was mainly due to the rapid increase in transaction service. Freight brokerage service. Revenues from freight brokerage service in the first quarter of 2025 were RMB965.7 million (US$133.1 million), remaining nearly flat compared with RMB965.2 million in the same period of 2024, primarily attributable to an increase in service fee rate, offset by a decrease in transaction volume. Freight listing service. Revenues from freight listing service in the first quarter of 2025 were RMB234.9 million (US$32.4 million), an increase of 10.0% from RMB213.5 million in the same period of 2024, primarily due to the growing number of total paying members. Transaction service. Revenues from transaction service amounted to RMB1,046.5 million (US$144.2 million) in the first quarter of 2025, an increase of 51.5% from RMB691.0 million in the same period of 2024, primarily driven by increases in order volume, penetration rate, and per-order transaction service fee. Value-added services.4 Revenues from value-added services in the first quarter of 2025 were RMB452.8 million (US$62.4 million), an increase of 13.5% from RMB399.0 million in the same period of 2024. The increase was primarily due to growing demand for credit solutions. Cost of Revenues (including VAT net of government grants of RMB795.2 million and RMB466.6 million for the three months ended March 31, 2024 and 2025, respectively). Cost of revenues in the first quarter of 2025 was RMB698.6 million (US$96.3 million), a decrease of 32.3% from RMB1,031.9 million in the same period of 2024. The decrease was primarily due to decreases in VAT, related tax surcharges and other tax costs, net of grants from government authorities. These tax-related costs net of government grants totaled RMB565.6 million, representing a decrease of 37.7% from RMB908.0 million in the same period of 2024, primarily due to a decrease in tax costs net of government grants related to the Company's freight brokerage service. Sales and Marketing Expenses. Sales and marketing expenses in the first quarter of 2025 were RMB377.9 million (US$52.1 million), compared with RMB340.1 million in the same period of 2024. The increase was primarily due to an increase in advertising and marketing expenses for user acquisitions, partially offset by lower salary and benefits expenses. General and Administrative Expenses. General and administrative expenses in the first quarter of 2025 were RMB186.0 million (US$25.6 million), compared with RMB264.5 million in the same period of 2024. The decrease was primarily due to lower share-based compensation and salary and benefits expenses. Research and Development Expenses. Research and development expenses in the first quarter of 2025 were RMB193.4 million (US$26.6 million), compared with RMB247.7 million in the same period of 2024. The decrease was primarily due to lower salary and benefits expenses. Income from Operations. Income from operations in the first quarter of 2025 was RMB1,202.4 million (US$165.7 million), an increase of 285.2% from RMB312.2 million in the same period of 2024. Non-GAAP Adjusted Operating Income.5 Non-GAAP adjusted operating income in the first quarter of 2025 was RMB1,318.1 million (US$181.6 million), an increase of 171.5% from RMB485.4 million in the same period of 2024. Net Income. Net income in the first quarter of 2025 was RMB1,278.9 million (US$176.2 million), an increase of 118.1% from RMB586.4 million in the same period of 2024. Non-GAAP Adjusted Net Income. Non-GAAP adjusted net income in the first quarter of 2025 was RMB1,391.4 million (US$191.7 million), an increase of 84.0% from RMB756.4 million in the same period of 2024. Basic and Diluted Net Income per ADS6 and Non-GAAP Adjusted Basic and Diluted Net Income per ADS.7 Basic net income per ADS was RMB1.22 (US$0.17) in the first quarter of 2025, compared with RMB0.56 in the same period of 2024. Diluted net income per ADS was RMB1.21 (US$0.17) in the first quarter of 2025, compared with RMB0.56 in the same period of 2024. Non-GAAP adjusted basic and diluted net income per ADS were RMB1.32 (US$0.18) in the first quarter of 2025, compared with RMB0.72 in the same period of 2024. Balance Sheet and Cash Flow As of March 31, 2025, the Company had cash and cash equivalents, restricted cash, short-term investments, long-term time deposits and wealth management products with maturities over one year of RMB29.3 billion (US$4.0 billion) in total, compared with RMB29.2 billion as of December 31, 2024. As of March 31, 2025, the total outstanding balance of on-balance sheet loans, consisting of the total principal amounts and all accrued and unpaid interests of the loans funded through our small loan company, reduced by an allowance for estimated losses, was RMB4,509.9 million (US$621.5 million), compared with RMB4,199.6 million as of December 31, 2024. The total non-performing loan ratio8 for these loans was 2.2% as of March 31, 2025, compared with 2.2% as of December 31, 2024. In the first quarter of 2025, net cash provided by operating activities was RMB325.6 million (US$44.9 million). 4The Company provides a range of value-added services including credit solutions, insurance services, electronic toll collection, energy services and other services on the FTA platform. 5 Non-GAAP adjusted operating income is defined as income from operations excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; and (iii) compensation cost incurred in relation to acquisitions. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release. 6 ADS refers to American depositary shares, each of which represents 20 Class A ordinary shares. 7 Non-GAAP adjusted basic and diluted net income per ADS is net income attributable to ordinary shareholders excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; (iv) impairment loss of long-term investment; and (v) tax effects of non-GAAP adjustments, divided by weighted average number of basic and diluted ADSs, respectively. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release. 8 Non-performing loan ratio is calculated by dividing the outstanding principal and all accrued and unpaid interests of the on-balance sheet loans that were over 90 calendar days past due (excluding loans that are over 180 days past due and are therefore charged off) by the total outstanding principal and all accrued and unpaid interests of the on-balance sheet loans (excluding loans that are over 180 days past due and are therefore charged off) reduced by an allowance for estimated losses as of a specified date. Business Outlook The Company expects its total net revenues to be between RMB3.06 billion and RMB3.12 billion for the second quarter of 2025, representing a year-over-year growth rate of approximately 10.6% to 12.9%. These forecasts reflect the Company's current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof. Further Investments In Plus PRC Holding Ltd ("Plus PRC") On May 16, 2025, the board of directors of the Company (the "Board") approved that the Company may make additional investment of US$125 million in the preferred shares of Plus PRC. The US$125 million will count in the principal and accrued interest of certain convertible notes issued by Plus PRC and purchased by the Company in May 2024 and January 2025 (the "Convertible Notes") as the Company intends to convert the principal and accrued interest of such Convertible Notes into preferred shares of Plus PRC. Certain other investors, including Mr. Peter Hui Zhang, the Company's Chairman and Chief Executive Officer, intend to make concurrent investments in Plus PRC on substantially the same terms as the Company. While the exact investment amounts of the other investors are subject to adjustment, the Company expects to hold no less than 52.8% equity interest and 56.2% voting rights in Plus PRC (excluding any shares reserved for future issuance under the share incentive plan of Plus PRC) upon completion of these investment transactions, and with expected amendment to the memorandum and articles of association of Plus PRC that will allow the Company to control the board of Plus PRC, the Company expects to consolidate the financial results of Plus PRC into its consolidated financial statements upon completion of these investment transactions. A definitive agreement has not yet been entered into for these investment transactions. There is no guarantee that a definitive agreement will be signed or that these investment transactions will be completed. Share Repurchases The Company repurchased a total of 60,728,727 ordinary shares from certain executive officers of the Company for an aggregate consideration of US$37,499,988.92 in privately negotiated transactions on May 19, 2025. The repurchased shares correspond to part of the vested share-based awards previously granted to these executive officers. The repurchase price was set at US$0.6175 per ordinary share, which was determined by dividing US$12.35, the closing price of the Company's ADSs on May 16, 2025, by 20, which is the ratio of the Company's Class A ordinary shares to ADSs. The Company intends to cancel all of the repurchased shares in accordance with applicable rules and regulations. The above share repurchases were conducted pursuant to resolutions of the Board, which authorized the Company to repurchase ordinary shares corresponding to vested share-based awards granted under the Company's share incentive plans. Such repurchases were not conducted, and therefore will not reduce the amount of ADSs and/or ordinary shares that the Company may repurchase, under its existing share repurchase program as previously announced by the Company. Such repurchases were intended to enable the executive officers to realize the benefits from some of their vested share-based awards through privately negotiated transactions as opposed to reselling such shares in the open market. Among these executive officers, Mr. Peter Hui Zhang has committed to using all net proceeds from the Company's repurchase of his vested shares for his investment in the preferred shares of Plus PRC. The repurchases were funded from the Company's existing cash reserves. Senior Management Changes The Company announced that Mr. Simon Chong Cai was appointed as the Chief Financing and Investment Officer of the Company in charge of financing, investment and investor relations and ceased to be the Chief Financial Officer of the Company effective May 21, 2025. Additionally, Mr. Langbo Guo, the Company's President, has expanded his responsibilities to include financial, tax, and cash planning and management, in addition to his existing duties related to strategic planning and operational analysis. Effective May 21, 2025, Mr. Guo will also serve as the principal financial and accounting officer of the Company. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at a rate of RMB7.2567 to US$1.00, the exchange rate in effect as of March 31, 2025, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all. Conference Call The Company's management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on May 21, 2025, or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the first quarter 2025. For participants who wish to join the conference using dial-in numbers, please complete online registration using the link provided below prior to the scheduled call start time. Participant Online Registration: Upon registration, each participant will receive details for the conference call, including dial-in numbers, passcode and a unique access PIN. To join the conference, please dial the provided number, enter the passcode followed by your PIN, and you will join the conference. The replay will be accessible through May 28, 2025, by dialing the following numbers: United States: +1-877-344-7529 International: +1-412-317-0088 Replay Access Code: 7169866 A live and archived webcast of the conference call will also be available on the Company's investor relations website at About Full Truck Alliance Co. Ltd. Full Truck Alliance Co. Ltd. (NYSE: YMM) is a leading digital freight platform connecting shippers with truckers to facilitate shipments across distance ranges, cargo weights and types. The Company provides a range of freight matching services, including freight listing, freight brokerage and transaction services. The Company also provides a range of value-added services that cater to the various needs of shippers and truckers, such as financial institutions, highway authorities, and gas station operators. With a mission to empower enterprises with greater logistics competitiveness, the Company is shaping the future of logistics with technology and aspires to revolutionize logistics, improve efficiency across the value chain and reduce its carbon footprint for our planet. For more information, please visit Use of Non-GAAP Financial Measures The Company uses non-GAAP adjusted operating income, non-GAAP adjusted net income, non-GAAP adjusted net income attributable to ordinary shareholders, non-GAAP adjusted basic and diluted net income per share and non-GAAP adjusted basic and diluted net income per ADS, each a non-GAAP financial measure, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted operating income as income from operations excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions and (iii) compensation cost incurred in relation to acquisitions. The Company defines non-GAAP adjusted net income as net income excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; (iv) impairment loss of long-term investment; and (v) tax effects of non-GAAP adjustments. The Company defines non-GAAP adjusted net income attributable to ordinary shareholders as net income attributable to ordinary shareholders excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to acquisitions; (iv) impairment loss of long-term investment; and (v) tax effects of non-GAAP adjustments. The Company defines non-GAAP adjusted basic and diluted net income per share as non-GAAP adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted ordinary shares, respectively. The Company defines non-GAAP adjusted basic and diluted net income per ADS as non-GAAP adjusted net income attributable to ordinary shareholders divided by the weighted average number of basic and diluted ADSs, respectively. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as an analytical tool. The non-GAAP financial measures do not reflect all items of expense that affect its operations. The Company reconciles the non-GAAP financial measures to the nearest U.S. GAAP performance measures. Non-GAAP adjusted operating income, non-GAAP adjusted net income, non-GAAP adjusted net income attributable to ordinary shareholders and non-GAAP adjusted basic and diluted net income per share should not be considered in isolation or construed as an alternative to operating income, net income, net income attributable to ordinary shareholders and basic and diluted net income per share or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review FTA's non-GAAP financial measures to the most directly comparable GAAP measures. FTA's non-GAAP financial measure may not be comparable to similarly titled measures presented by other companies. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this release. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: FTA's goal and strategies; FTA's expansion plans; FTA's future business development, financial condition and results of operations; expected changes in FTA's revenues, costs or expenses; industry landscape of, and trends in, China's road transportation market; competition in FTA's industry; FTA's expectations regarding demand for, and market acceptance of, its services; FTA's expectations regarding its relationships with shippers, truckers and other ecosystem participants; FTA's ability to protect its systems and infrastructures from cyber-attacks; PRC laws, regulations, and policies relating to the road transportation market, as well as general regulatory environment in which FTA operates in China; the results of regulatory review and the duration and impact of any regulatory action taken against FTA; the impact of health epidemics, extreme weather conditions and production constraints brought by electricity rationing measures; general economic and business condition; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: Full Truck Alliance Co. MaoE-mail: IR@ Piacente Financial CommunicationsHui FanTel: +86-10-6508-0677E-mail: FTA@ In the United States: Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050E-mail: FTA@ FULL TRUCK ALLIANCE CO. LTD. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except share, ADS, per share and per ADS data)As ofDecember 31,March 31,March 31,202420252025RMBRMBUS$ ASSETSCurrent assets:Cash and cash equivalents 5,810,3478,235,0731,134,823 Restricted cash 100,533132,05618,198 Short-term investments 15,002,90311,924,1591,643,193 Accounts receivable, net 19,64324,3563,356 Loans receivable, net 4,199,6454,509,865621,476 Prepayments and other current assets, net 2,122,9022,629,344362,333 Total current assets 27,255,97327,454,8533,783,379 Restricted cash 40,00040,0005,512 Long-term investments1 9,876,11810,785,7691,486,319 Property and equipment, net 289,611293,12040,393 Intangible assets, net 393,477379,35752,277 Goodwill 3,124,8283,124,828430,613 Deferred tax assets 92,88296,28613,269 Operating lease right-of-use assets 115,654106,47414,673 Other non-current assets 98,532139,62219,240 Total non-current assets 14,031,10214,965,4562,062,296 TOTAL ASSETS 41,287,07542,420,3095,845,675 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable 31,22728,1983,886 Prepaid for freight listing fees and other service fees 571,185542,40774,746 Income tax payable 336,220409,12956,379 Other tax payable 898,396783,981108,035 Operating lease liabilities 41,20440,7015,609 Dividends payable —715,10798,544 Accrued expenses and other current liabilities 1,141,7581,063,296146,528 Total current liabilities 3,019,9903,582,819493,727 Deferred tax liabilities 95,57092,31512,721 Operating lease liabilities 23,92815,9222,194 Other non-current liabilities 12,41410,4661,442 Total non-current liabilities 131,912118,70316,357 TOTAL LIABILITIES 3,151,9023,701,522510,084 MEZZANINE EQUITYRedeemable non-controlling interests 443,070454,59162,644 SHAREHOLDERS' EQUITYOrdinary shares 1,3431,346185 Additional paid-in capital 45,823,72345,160,0846,223,226 Accumulated other comprehensive income 3,223,9443,192,259439,905 Accumulated deficit (11,372,284)(10,103,708)(1,392,328) TOTAL FULL TRUCK ALLIANCE CO. LTD. EQUITY 37,676,72638,249,9815,270,988 Non-controlling interests 15,37714,2151,959 TOTAL SHAREHOLDERS' EQUITY 37,692,10338,264,1965,272,947 TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY 41,287,07542,420,3095,845,675 1. The Company's long-term investments consist of RMB7,497 million long-term time deposits, RMB1,489 million wealth management products with maturities over one year, RMB764 million investments in debt securities, RMB319 million equity method investments, and RMB717 million equity investments without readily determinable fair value as of March 31, 2025. FULL TRUCK ALLIANCE CO. LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (All amounts in thousands, except share, ADS, per share and per ADS data)Three months endedMarch 31,December 31,March 31,March 31,2024202420252025RMBRMBRMBUS$ Net Revenues:Freight Matching Services 1,869,6652,704,9402,247,107309,660 Freight brokerage service 965,1691,316,140965,666133,072 Freight listing service 213,511230,489234,90532,371 Transaction service 690,9851,158,3111,046,536144,217 Value-added services 399,048469,314452,80262,398 Total net revenues (including value added taxes, or "VAT" of RMB1,039.3 million and RMB1,064.9 million for the three months ended March 31, 2024 and 2025, respectively) 2,268,7133,174,2542,699,909372,058 Operating expenses:Cost of revenues (including VAT net of government grants, ofRMB795.2 million and RMB466.6 million for the three months ended March 31, 2024 and 2025, respectively)(1) (1,031,888)(1,391,714)(698,559)(96,264) Sales and marketing expenses(1) (340,147)(471,829)(377,850)(52,069) General and administrative expenses(1) (264,467)(202,265)(186,009)(25,633) Research and development expenses(1) (247,708)(205,026)(193,358)(26,645) Provision for loans receivable (80,324)(73,905)(81,851)(11,279) Total operating expenses (1,964,534)(2,344,739)(1,537,627)(211,890) Other operating income 8,0105,92040,1655,535 Income from operations 312,189835,4351,202,447165,703 Other incomeInterest income 315,363149,466245,50933,832 Foreign exchange gain (loss) 4174,725(10,825)(1,492) Investment income 18,48410,35419,3332,664 Unrealized (losses) gains from fair value changes of investments (7,388)(19,612)33,4624,611 Other income (expenses), net 2,070(1,559)61885 Impairment loss —(352,742)—— Share of (loss) gain in equity method investees (48)(1,580)16322 Total other income (expense) 328,898(210,948)288,26039,722 Net income before income tax 641,087624,4871,490,707205,425 Income tax expense (54,720)(49,861)(211,771)(29,183) Net income 586,367574,6261,278,936176,242 Less: net loss attributable to non-controlling interests (549)(1,177)(1,162)(160) Less: measurement adjustment attributable to redeemable non-controlling interests 5,74417,34611,5221,588 Net income attributable to ordinary shareholders 581,172558,4571,268,576174,814 FULL TRUCK ALLIANCE CO. LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (CONTINUED) (All amounts in thousands, except share, ADS, per share and per ADS data)Three months endedMarch 31,December 31,March 31,March 31,2024202420252025RMBRMBRMBUS$ Net income per share—Basic 0.030.030.060.01 —Diluted 0.030.030.060.01 Net income per ADS*—Basic 0.560.541.220.17 —Diluted 0.560.531.210.17 Weighted average number of ordinary shares usedin computing net income per share—Basic 20,864,118,09720,803,347,60320,850,255,05020,850,255,050 —Diluted 20,904,689,30320,913,595,70220,958,643,96220,958,643,962 Weighted average number of ADSs used in computing net income per ADS—Basic 1,043,205,9051,040,167,3801,042,512,7531,042,512,753 —Diluted 1,045,234,4651,045,679,7851,047,932,1981,047,932,198 * Each ADS represents 20 ordinary shares.(1) Share-based compensation expense in operating expenses are as follows: Three months endedMarch 31,December 31,March 31,March 31,2024202420252025RMBRMBRMBUS$ Cost of revenues 2,7442,9973,849530 Sales and marketing expenses 10,68513,75019,5582,695 General and administrative expenses 119,54375,76855,7687,685 Research and development expenses 22,98422,36123,4983,238 Total 155,956114,876102,67314,148 FULL TRUCK ALLIANCE CO. LTD. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except share, ADS, per share and per ADS data)Three months endedMarch 31,December 31,March 31,March 31,2024202420252025RMBRMBRMBUS$ Income from operations 312,189835,4351,202,447165,703 Add:Share-based compensation expense 155,956114,876102,67314,148 Amortization of intangible assets resulting frombusiness acquisitions 13,02113,02113,0211,794 Compensation cost incurred in relation to acquisitions 4,281——— Non-GAAP adjusted operating income 485,447963,3321,318,141181,645 Net income 586,367574,6261,278,936176,242 Add:Share-based compensation expense 155,956114,876102,67314,148 Amortization of intangible assets resulting frombusiness acquisitions 13,02113,02113,0211,794 Compensation cost incurred in relation to acquisitions 4,281——— Impairment loss of long-term investment —352,742—— Tax effects of non-GAAP adjustments (3,255)(3,255)(3,255)(449) Non-GAAP adjusted net income 756,3701,052,0101,391,375191,735 FULL TRUCK ALLIANCE CO. LTD. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (CONTINUED) (All amounts in thousands, except share, ADS, per share and per ADS data)Three months endedMarch 31,December 31,March 31,March 31,2024202420252025RMBRMBRMBUS$ Net income attributable to ordinary shareholders 581,172558,4571,268,576174,814 Add:Share-based compensation expense 155,956114,876102,67314,148 Amortization of intangible assets resulting frombusiness acquisitions 13,02113,02113,0211,794 Compensation cost incurred in relation to acquisitions 4,281——— Impairment loss of long-term investment —352,742—— Tax effects of non-GAAP adjustments (3,255)(3,255)(3,255)(449) Non-GAAP adjusted net income attributable toordinary shareholders 751,1751,035,8411,381,015190,307 Non-GAAP adjusted net income per share—Basic 0.040.050.070.01 —Diluted 0.040.050.070.01 Non-GAAP adjusted net income per ADS—Basic 0.721.001.320.18 —Diluted 0.720.991.320.18 View original content: SOURCE Full Truck Alliance Co. Ltd. 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Yahoo
21-05-2025
- Business
- Yahoo
Bilibili Inc (BILI) Q1 2025 Earnings Call Highlights: Record Revenue Growth and Strategic AI ...
Total Revenue: RMB7 billion, up 24% year-over-year. Advertising Revenue: RMB2 billion, up 20% year-over-year. Games Revenue: RMB1.73 billion, up 76% year-over-year. Gross Profit: RMB2.54 billion, up 58% year-over-year. Gross Profit Margin: 36.3%, up from 28.3% in the same period last year. Adjusted Net Profit: RMB362 million. GAAP Net Loss: Narrowed by 99% year-over-year to RMB11 million. Operating Cash Flow: Over RMB1.3 billion in the first quarter. Cash and Cash Equivalents: RMB17.4 billion (US$2.4 billion) as of March 31, 2025. Daily Active Users (DAUs): 107 million. Monthly Active Users (MAUs): 368 million. Average Daily Time Spent: 108 minutes. Monthly Paying Users: 32 million. VAS Revenue: RMB2.81 billion, up 11% year-over-year. Warning! GuruFocus has detected 1 Warning Sign with BILI. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bilibili Inc (NASDAQ:BILI) reported a 24% year-over-year increase in total revenues, reaching RMB7 billion, driven by strong performances in advertising and game businesses. The company's gross profit increased by 58% year-over-year, with the gross profit margin expanding to 36.3%, up from 28.3% in the same period last year. Bilibili Inc (NASDAQ:BILI) achieved a positive adjusted net profit of RMB362 million and narrowed its GAAP net loss by 99% year-over-year. Daily active users (DAUs) reached 107 million, and monthly active users (MAUs) climbed to a new high of 368 million, with users spending an average of 108 minutes daily on the platform. The company saw a significant increase in AI-related content, with watch time more than doubling from the previous year, and a 400% increase in advertiser demand for AI-related ads. Despite narrowing losses, Bilibili Inc (NASDAQ:BILI) still reported a GAAP net loss of RMB11 million for the first quarter. Sales and marketing expenses increased by 26% year-over-year, primarily due to a one-off marketing expense related to the partnership with CCTV for the Chinese New Year Gala. The company's cost of revenues increased by 10% year-over-year to RMB4.46 billion, which could impact future profitability if not managed effectively. While the company is expanding its game portfolio, several new games are still awaiting approval, which could delay potential revenue streams. The company faces challenges in maintaining long-term user engagement and retention, particularly as it aims to sustain the popularity of its key game titles like San Mou. Q: What is Bilibili's plan to enhance quality content and the role of AI in this strategy? A: Rui Chen, Chairman and CEO, emphasized the focus on high-quality content, noting that users are increasingly seeking premium content that provides fulfillment. Bilibili aims to maintain its reputation for quality content, which is reflected in increased user engagement and willingness to pay for content. The company plans to leverage AI to enhance content creation and monetization, utilizing its vast repository of Chinese video content to gain a competitive edge in AI-related opportunities. Q: Can you discuss the performance and future expectations for the game "San Mou"? A: Rui Chen highlighted the goal of achieving a long-term operation for "San Mou," aiming for a lifecycle of at least five years. The game has shown strong user retention and engagement, with Season 7 marking a record high in daily active users. The upcoming Season 8 will feature significant updates to attract more players. Bilibili plans to expand "San Mou" to international markets and multiple devices, enhancing its reach and longevity. Q: What are the drivers behind Bilibili's advertising business growth, and what is the outlook? A: Rui Chen attributed the 20% year-over-year growth in advertising revenue to high-value users and strong brand association with quality content. The company has improved its ad infrastructure and AI capabilities, enhancing ad targeting and efficiency. Bilibili expects continued growth above industry average, driven by its premium content and increasing user value. Q: What is the outlook for Bilibili's margins for the rest of the year and mid-term targets? A: Xin Fan, CFO, reported a record gross margin of 33.3% in Q1, driven by high-margin gaming and advertising revenues. The company expects gradual improvement in both gross and net margins throughout the year. Mid-term, Bilibili aims for a gross profit margin of 40% to 45% and an operating margin of 15% to 20%. Q: How is Bilibili leveraging AI to improve its advertising business? A: Bilibili has upgraded its AI-related product capabilities to better understand user interests and improve ad targeting. The company has also enhanced its GenAI-assisted ad material creation, which has significantly increased ad efficiency. These improvements have contributed to a rise in performance-based ad revenue and overall advertising growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
Bilibili Inc (BILI) Q1 2025 Earnings Call Highlights: Record Revenue Growth and Strategic AI ...
Total Revenue: RMB7 billion, up 24% year-over-year. Advertising Revenue: RMB2 billion, up 20% year-over-year. Games Revenue: RMB1.73 billion, up 76% year-over-year. Gross Profit: RMB2.54 billion, up 58% year-over-year. Gross Profit Margin: 36.3%, up from 28.3% in the same period last year. Adjusted Net Profit: RMB362 million. GAAP Net Loss: Narrowed by 99% year-over-year to RMB11 million. Operating Cash Flow: Over RMB1.3 billion in the first quarter. Cash and Cash Equivalents: RMB17.4 billion (US$2.4 billion) as of March 31, 2025. Daily Active Users (DAUs): 107 million. Monthly Active Users (MAUs): 368 million. Average Daily Time Spent: 108 minutes. Monthly Paying Users: 32 million. VAS Revenue: RMB2.81 billion, up 11% year-over-year. Warning! GuruFocus has detected 1 Warning Sign with BILI. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bilibili Inc (NASDAQ:BILI) reported a 24% year-over-year increase in total revenues, reaching RMB7 billion, driven by strong performances in advertising and game businesses. The company's gross profit increased by 58% year-over-year, with the gross profit margin expanding to 36.3%, up from 28.3% in the same period last year. Bilibili Inc (NASDAQ:BILI) achieved a positive adjusted net profit of RMB362 million and narrowed its GAAP net loss by 99% year-over-year. Daily active users (DAUs) reached 107 million, and monthly active users (MAUs) climbed to a new high of 368 million, with users spending an average of 108 minutes daily on the platform. The company saw a significant increase in AI-related content, with watch time more than doubling from the previous year, and a 400% increase in advertiser demand for AI-related ads. Despite narrowing losses, Bilibili Inc (NASDAQ:BILI) still reported a GAAP net loss of RMB11 million for the first quarter. Sales and marketing expenses increased by 26% year-over-year, primarily due to a one-off marketing expense related to the partnership with CCTV for the Chinese New Year Gala. The company's cost of revenues increased by 10% year-over-year to RMB4.46 billion, which could impact future profitability if not managed effectively. While the company is expanding its game portfolio, several new games are still awaiting approval, which could delay potential revenue streams. The company faces challenges in maintaining long-term user engagement and retention, particularly as it aims to sustain the popularity of its key game titles like San Mou. Q: What is Bilibili's plan to enhance quality content and the role of AI in this strategy? A: Rui Chen, Chairman and CEO, emphasized the focus on high-quality content, noting that users are increasingly seeking premium content that provides fulfillment. Bilibili aims to maintain its reputation for quality content, which is reflected in increased user engagement and willingness to pay for content. The company plans to leverage AI to enhance content creation and monetization, utilizing its vast repository of Chinese video content to gain a competitive edge in AI-related opportunities. Q: Can you discuss the performance and future expectations for the game "San Mou"? A: Rui Chen highlighted the goal of achieving a long-term operation for "San Mou," aiming for a lifecycle of at least five years. The game has shown strong user retention and engagement, with Season 7 marking a record high in daily active users. The upcoming Season 8 will feature significant updates to attract more players. Bilibili plans to expand "San Mou" to international markets and multiple devices, enhancing its reach and longevity. Q: What are the drivers behind Bilibili's advertising business growth, and what is the outlook? A: Rui Chen attributed the 20% year-over-year growth in advertising revenue to high-value users and strong brand association with quality content. The company has improved its ad infrastructure and AI capabilities, enhancing ad targeting and efficiency. Bilibili expects continued growth above industry average, driven by its premium content and increasing user value. Q: What is the outlook for Bilibili's margins for the rest of the year and mid-term targets? A: Xin Fan, CFO, reported a record gross margin of 33.3% in Q1, driven by high-margin gaming and advertising revenues. The company expects gradual improvement in both gross and net margins throughout the year. Mid-term, Bilibili aims for a gross profit margin of 40% to 45% and an operating margin of 15% to 20%. Q: How is Bilibili leveraging AI to improve its advertising business? A: Bilibili has upgraded its AI-related product capabilities to better understand user interests and improve ad targeting. The company has also enhanced its GenAI-assisted ad material creation, which has significantly increased ad efficiency. These improvements have contributed to a rise in performance-based ad revenue and overall advertising growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
