Full Truck Alliance Co Ltd ( YMM ) shares are trading lower premarket on Monday after it reported third-quarter FY25 results.

Details

The company reported sales growth of 10.8% year-over-year (Y/Y) to 3.358 billion Chinese Yuan or $471.7 million, beating the consensus of $438.4 million.

Fulfilled orders in the quarter reached 63.4 million (+ 22.3% Y/Y). Average shipper MAUs for the quarter were 3.35 million (+17.6% Y/Y).

General and administrative expenses declined to 161.6 million Chinese Yuan from 227.9 million last year, reflecting lower share-based compensation expenses.

Adjusted operating income declined to 849.1 million Chinese Yuan from 884.5 million Chinese Yuan.

Adjusted net income per ADS was RMB0.94 or $0.13, which aligned with the consensus.

Operating cash flow for the quarter was 1.66 billion Chinese Yuan or $232.8 million.

As of  September 30, the company had cash and cash equivalents, restricted cash, short-term investments, long-term time deposits, and wealth management products of 31.1 billion Chinese Yuan ($4.4 billion).

Segment Performance

Freight matching services revenues rose 9.6% Y/Y, reflecting a significant increase in transaction service revenues.

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Meanwhile, revenues from value-added services jumped 16.9% Y/Y aided by higher demand for credit solutions.

Management Commentary

”We also propelled ecosystem development, leveraging user experience enhancements to drive high-quality growth,” said Langbo Guo, president of FTA. “In addition, our acquisition of a majority interest in Giga.AI Technology Limited, previously known as Plus PRC Holding Ltd. (“Giga.AI”), strengthened our AI capabilities and technological foundation, positioning us to seize new growth opportunities and accelerate the platform’s long-term development.”

Outlook

Full Truck Alliance ( YMM ) expects its total net revenues to be 3.08 billion Chinese Yuan or 3.18 billion Chinese Yuan, representing year-over-year growth of 17.1% to 22.5%.

Price Action: YMM shares are down 7.47% at $11.40 premarket at the last check on Monday.

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