Meituan (MPNGF) Q3 2024 Earnings Call Highlights: Record Revenue and Profit Surge Amid ...

In This Article:

  • Total Revenue: Increased by 22.4% year-over-year to RMB93.6 billion.

  • Adjusted Net Profit: Increased by 124% to RMB12.2 billion.

  • Cost of Revenue: Decreased by 4 percentage points year-over-year to 60.7%.

  • Selling and Marketing Expenses Ratio: Decreased by 2.9 percentage points year-over-year to 19.2%.

  • R&D Expenses Ratio: Decreased to 5.7% year-over-year.

  • SG&A Expenses Ratio: Stable at 3% year-over-year.

  • Total Segment Operating Profit: Increased from RMB5 billion to RMB13.6 billion.

  • Total Segment Operating Margin: Increased from 6.5% to 14.5%.

  • Cash and Cash Equivalents: Totaled RMB134.2 billion as of September 2024.

  • Cash Generated from Operating Activities: Increased to RMB15.2 billion year-over-year.

  • Order Volume Growth for On-Demand Delivery: Maintained mid-teens year-on-year growth.

  • In-Store Hotel and Travel Business Order Volume: Increased by over 50% year-over-year.

  • Revenue from Core Local Commerce: Grew by 20.3% year-over-year to RMB69.4 billion.

  • New Initiatives Revenue: Increased by 28.9% year-over-year to RMB24.2 billion.

  • New Initiatives Operating Loss: Narrowed to RMB1 billion with an operating loss ratio of 4.2%.

Release Date: November 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Meituan (MPNGF) reported a 22.4% year-over-year increase in total revenue, reaching RMB93.6 billion.

  • Adjusted net profit surged by 124% to RMB12.2 billion, showcasing significant profitability improvements.

  • The company has seen record highs in annual active merchants and transacting users, indicating strong market engagement.

  • Meituan's innovative business models, such as Pin Hao Fan, have attracted over 100 million value users, enhancing consumer engagement.

  • The company has successfully expanded its Meituan InstaMart and Xiaoxiang operations, particularly in lower-tier cities, meeting growing consumer demand.

Negative Points

  • The average order value in the on-demand delivery segment has declined, although the decline is narrowing.

  • Despite strong growth, the company faces challenges in balancing growth and profitability, particularly in the competitive local commerce sector.

  • The international expansion, particularly in Saudi Arabia, is still in its early stages and may take time to yield significant results.

  • Meituan's new initiatives, while showing progress, continue to incur losses, although these are narrowing.

  • The company faces intense competition in the local commerce industry, requiring continuous innovation and investment to maintain its market position.