Full Truck Alliance Reports Robust Growth Amid Strategic Advances

Full Truck Alliance Co. Ltd. ((YMM)) has held its Q1 earnings call. Read on for the main highlights of the call.

Full Truck Alliance Co. Ltd.’s recent earnings call painted a picture of robust growth and strategic advancements, with the company showcasing significant increases in orders and revenue. The sentiment was overwhelmingly positive, driven by enhanced user engagement and technological innovations, despite some challenges in freight brokerage revenues and VAT adjustments.

Strong Order Growth

The company reported a remarkable 23% year-over-year growth in total field orders, significantly surpassing industry averages. Fulfilled orders also saw a substantial increase, rising 22.6% year-over-year to reach 48.2 million, underscoring the company’s strong market position.

Increased User Engagement

User engagement metrics were impressive, with average shipper monthly active users (MAUs) climbing 28.8% year-over-year to 2.76 million. The total number of shipper members exceeded 1.1 million, maintaining a 12-month rolling retention rate above 80%, reflecting strong customer loyalty and satisfaction.

Record Trucker Engagement

Trucker membership reached unprecedented levels, with retention rates for truckers responding to orders consistently above 85% for the following month. This highlights the platform’s effectiveness in retaining and engaging its trucker base.

Revenue Growth

Total net revenues grew by 19% year-over-year to RMB2.7 billion. Notably, revenue from transaction services surged by 51.5% year-over-year, reaching RMB1.05 billion, demonstrating the company’s successful monetization strategies.

Significant Financial Performance

Full Truck Alliance reported a 171.5% year-over-year increase in non-GAAP adjusted operating income, reaching RMB1.32 billion. Non-GAAP adjusted net income also saw an impressive rise of 84% year-over-year to RMB1.39 billion, indicating strong financial health.

AI and Technological Advancements

The company is pioneering technological advancements with initiatives like DeepSeek and intelligent robotics. These efforts mark the beginning of a deeper investment phase in AI and autonomous driving, positioning the company at the forefront of innovation.

Flat Revenues in Freight Brokerage

Despite overall growth, revenues from the freight brokerage service remained flat at RMB965.7 million, primarily due to a decrease in transaction volume. This area presents a challenge that the company aims to address.

Impact of VAT Rebate Adjustments

The company proactively downsized operations in anticipation of VAT rebate adjustments, which affected transaction volumes and subsequently impacted revenues from freight brokerage services.

Forward-Looking Guidance

Looking ahead, Full Truck Alliance anticipates continued growth, projecting total net revenues for the second quarter of 2025 to be between RMB3.06 billion and RMB3.12 billion. This represents a year-over-year growth rate of approximately 10.6% to 12.9%, reflecting the company’s confidence in sustaining its upward trajectory.

In conclusion, Full Truck Alliance Co. Ltd.’s earnings call highlighted a period of strong growth and strategic advancements, with significant increases in orders and revenue. The company’s focus on user engagement and technological innovation positions it well for future success, despite challenges in specific areas like freight brokerage revenues.