JD.com Inc ((JD)) has held its Q4 earnings call. Read on for the main highlights of the call.
JD.com Inc. recently held its earnings call, showcasing a generally positive sentiment. The company reported strong financial performance, marked by significant revenue growth and improvements in user engagement. Despite facing challenges in its new business segment and a temporary impact on home appliance sales, JD.com remains optimistic about its future, bolstered by strong fundamentals and strategic investments in AI and logistics.
Strong Q4 and Full Year 2024 Performance
JD.com reported a robust fourth quarter with a 13% year-on-year revenue increase, reaching RMB347 billion, and a full-year revenue growth of 7% to RMB1.2 trillion. The company experienced strong double-digit growth across most categories, including a notable 16% year-on-year increase in electronics and home appliances.
Growth in General Merchandise
The general merchandise segment saw impressive growth, with revenues increasing by 11% year-on-year in Q4 and 9% for the full year. The supermarket business, in particular, achieved double-digit growth for four consecutive quarters, driven by enhancements in supply chain capabilities.
User Growth and Engagement
JD.com experienced double-digit growth in quarterly active customers for five consecutive quarters. Additionally, user shopping frequency showed similar double-digit growth for four quarters in a row, highlighting increased user engagement.
Shareholder Returns
Reflecting a strong commitment to shareholder returns, JD.com increased its annual dividend by 32% year-on-year to $1 per ADS and repurchased 8.1% of outstanding shares in 2024.
AI and Robotics Integration
The integration of AI across various business areas, including marketing, customer service, and logistics, has been a key focus for JD.com. This strategic move aims to improve efficiency and reduce costs.
Decline in New Business Segment
The new business segment faced challenges, with a revenue decline of 31% in Q4 and 28% for the full year, primarily due to adjustments in the Jingxi business.
Temporary Impact on Home Appliance Sales
Home appliance sales experienced a temporary setback early in the year, attributed to sales being pulled forward to the end of 2024.
Forward-Looking Guidance
Looking ahead, JD.com aims to leverage AI and industrial robotics to enhance operational efficiency and user experience. The company plans to capitalize on government stimulus policies to drive future growth. JD.com remains committed to lowering costs, improving efficiency, and investing in user experience.
In conclusion, JD.com Inc.’s earnings call highlighted a strong financial performance with significant revenue growth and user engagement improvements. Despite challenges in certain segments, the company’s strategic investments in AI and logistics position it well for future growth. Shareholder returns remain a priority, with increased dividends and share repurchases reflecting JD.com’s commitment to delivering value.