Full Truck Alliance Achieves Record-High Revenue of CNY 8.44 Billion in 2023, Marking Two Consecutive Profitable Fiscal Years.
On March 7, the digital freight platform Full Truck Alliance Group (YMM:NY) released its fourth-quarter and full-year financial performance report as of December 31, 2023, before the US stock market opened.
In the fourth quarter of 2023, Full Truck Alliance achieved an operating income of CNY 2.41 billion, representing a 25.3% year-on-year increase. Under non-US GAAP, the net profit reached CNY 730 million, marking a 64.4% year-on-year increase.
Throughout 2023, Full Truck Alliance achieved historical highs in both operating income and net profit under non-US GAAP. During this period, the company's operating income reached CNY 8.44 billion, indicating a 25.3% year-on-year increase. Under non-US GAAP, the net profit reached approximately CNY 2.80 billion, reflecting a 100.4% year-on-year increase, doubling from the previous year and significantly enhancing its profitability. The financial report revealed that in 2023, Full Truck Alliance had been consistently repurchasing shares to bolster shareholder equity. As of the report's release, the company had repurchased 30.67 million ADS shares from the public market, valued at approximately USD 200 million.
In terms of profit, Full Truck Alliance achieved a net profit of CNY 2.23 billion in 2023, marking a remarkable 440.7% year-on-year growth. This represents the first full-year profit since its listing in 2021. By the end of the 2023 fiscal year, Full Truck Alliance had achieved two consecutive profitable fiscal years.
Ahead of the market opening, Full Truck Alliance held an earnings conference call where the management revealed that in the fourth quarter of 2023, the platform set multiple operational data records.
In terms of user data, the monthly active shippers reached 2.24 million, representing an almost 19% year-on-year increase and reaching a historical high. Among them, the number of direct shippers continued to grow, with the majority of the increase coming from low-frequency direct shippers, i.e., non-member shippers. The number of active drivers fulfilling orders in the past 12 months reached 3.88 million. The scale of users on both the shipper and driver sides continued to expand.
From the perspective of shippers, as the platform's penetration rate of high-quality direct shippers increased, the structure of shipper users continued to improve, driving a continuous increase in fulfillment rates. In the fourth quarter, the proportion of orders fulfilled by direct shippers exceeded 45% for the first time, reaching a historical high.
Full Truck Alliance Group (YMM:NY) has released its fourth-quarter and full-year financial performance report as of December 31, 2023. In the fourth quarter of 2023, the platform achieved a record 45.8 million fulfilled orders, marking a year-on-year increase of over 40% and a fulfillment rate of 32%, reaching a historical high. Throughout 2023, fulfilled orders totaled 160 million, reflecting a 33.4% year-on-year growth.
The continuous growth in user scale and order quantity reflects strong user demand, aligning with the current trend where small and medium-sized enterprises increasingly seek more efficient and cost-effective online logistics solutions.
In comparison to developed countries, China's social logistics costs as a proportion of GDP are relatively high, and logistics efficiency is lower. In February of this year, the Central Financial and Economic Affairs Commission emphasized the need to effectively reduce the overall social logistics costs, remove bottlenecks, and encourage the development of new models such as platform economy and digital logistics. The management of Full Truck Alliance believes that the platform's operational data confirms the overall trend of China's road logistics shifting from traditional inefficient offline models to cost-effective and efficient online models. As the trend of digital logistics replacing traditional logistics deepens, Full Truck Alliance, as a platform with years of deep cultivation, early-mover advantages, and economies of scale, is poised for development opportunities, and its growth potential is worth noting.
The management of Full Truck Alliance stated that in 2023, the platform, in line with the overall trend of improving efficiency and reducing costs in the freight transportation industry, continued to promote the online, digital, and intelligent development of the road freight transportation industry. Simultaneously, it recognized the urgent demand from millions of small and medium-sized enterprises in China for high-quality, highly flexible, cost-effective, and comprehensive service-oriented capacity supply. The platform is focused on building an integrated logistics platform, aiming to empower small and medium-sized enterprises with digital technology, effectively reducing their logistics costs and ultimately improving their profit margins.
In terms of operations, the platform launched simplified freight posting and efficient transactional product features, effectively reducing the barriers to entry for new direct shipper users and further driving new user growth. The platform also upgraded its driver-tiered operational system, continuously optimizing transaction efficiency through incentive mechanisms and precise matching, promoting the continuous improvement of capacity quality. Meanwhile, penetration rates of services such as Manbangbao, finance, insurance, energy, and ETC continued to expand, forming a synergistic effect with matching businesses to serve the diverse needs of users. Leveraging its large and continually growing user base, these efforts collectively contribute to a network effect, propelling the platform's business to achieve outstanding results.
As of the report's release, Full Truck Alliance's stock was trading at USD 6.075 per share, with a total market value of USD 65.08 billion.