Meituan (3690) Q4 2024 earnings summary

Executive summary

• Total revenue for 2024 rose 22% year-over-year to RMB 337.6 billion, with annual transacting users surpassing 770 million and active merchants reaching 14.5 million.

• Profit for the year increased 158.4% to RMB 35.8 billion, with adjusted EBITDA at RMB 49.1 billion and adjusted net profit at RMB 43.8 billion.

• Operating cash inflow reached RMB 57.1 billion, with cash and equivalents of RMB 70.8 billion and short-term treasury investments of RMB 97.4 billion at year-end.

• Innovations in food delivery, on-demand retail, and overseas expansion, including the launch of KeeTa in Saudi Arabia, drove growth.

• Technology and AI integration, including autonomous delivery vehicles and drones, enhanced operational efficiency and consumer experience.

Financial highlights

• Q4 2024 revenue increased 20.1% year-over-year to RMB 88.5 billion.

• Adjusted net profit for Q4 reached RMB 9.8 billion, with total segment operating profit at RMB 10.7 billion, up from RMB 3.2 billion last year.

• Operating profit for 2024 was RMB 36.8 billion (10.9% margin), up from RMB 13.4 billion (4.8%) in 2023.

• Basic EPS for 2024 was RMB 5.85, up from RMB 2.23 in 2023.

• Cost of revenue ratio decreased by 3.9 percentage points to 62.2%, and selling/marketing expenses ratio fell by 3.1 points to 19.6%.

Outlook and guidance

• Continued investment in AI, autonomous delivery, and overseas expansion, especially in the Middle East.

• Focus on high-quality growth, operational efficiency, and sustainable ecosystem development.

• Overseas capital allocation will increase significantly in 2025 to fuel growth and market share.