Meituan (3690) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 22.4% year-over-year to RMB 93.6 billion, with both core local commerce and new initiatives contributing to growth.

• Adjusted net profit increased 124% to RMB 12.8 billion, and profit for the period reached RMB 12.9 billion.

• Operating profit surged 307.5% year-over-year to RMB 13.7 billion.

• Record highs achieved in annual active merchants, annual transacting users, and purchase frequency.

• International expansion began with the launch in Riyadh, Saudi Arabia.

Financial highlights

• Cost of revenue ratio decreased by 4 percentage points year-over-year to 60.7%.

• Selling and marketing expenses ratio fell to 19.2%.

• R&D expenses ratio dropped to 5.7%, G&A expenses stable at 3%.

• Gross profit increased to RMB 36.8 billion, with margin improvement due to cost efficiency.

• Cash and equivalents plus short-term investments totaled RMB 134.2 billion as of September 30, 2024.

Outlook and guidance

• Confident in maintaining healthy growth in core local commerce and on-demand retail.

• On-demand retail expected to outpace food delivery growth, with Instashopping as a key driver.

• Focus remains on high-quality, profitable growth and ecosystem investment.

• International expansion will proceed cautiously, with a focus on Saudi Arabia for now.

• Management remains optimistic about digital transformation and innovation in local commerce.