Full Truck Alliance Co. Ltd. Announces Second Quarter 2022 Unaudited Financial Results

GUIYANG, China, Aug. 25, 2022 /PRNewswire/ — Full Truck Alliance Co. Ltd. (“FTA” or the “Company”) (NYSE: YMM), a leading digital freight platform, today announced its unaudited financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Financial and Operational Highlights

Total net revenues in the second quarter of 2022 were RMB1,670.1 million (US$249.3 million), an increase of 49.3% from RMB1,118.8 million in the same period of 2021. Net Income in the second quarter of 2022 was RMB12.7 million (US$1.9 million), compared with net loss of RMB1,958.2 million in the same period of 2021. Non-GAAP adjusted net income1 in the second quarter of 2022 was RMB266.9 million (US$39.8 million), an increase of 168.1% from RMB99.5 million in the same period of 2021. Gross Transaction Value (“GTV”)2 in the second quarter of 2022 reached RMB65.8 billion (US$9.8 billion), a decrease of 11.1% from RMB74.0 billion in the same period of 2021. Fulfilled orders3 in the second quarter of 2022 reached 27.8 million, a decrease of 22.7% from 36.0 million in the same period of 2021. Average shipper MAUs4 in the second quarter of 2022 reached 1.53 million, flat compared with the same period of 2021.

“In the second quarter of 2022, we continued to develop our business through concerted efforts to improve user experience and elevate freight matching efficiency during a challenging period for FTA and the entire logistics industry,” said Mr. Peter Hui Zhang, Founder, Chairman and Chief Executive Officer of FTA. “With our strategic focus on technology investment and network expansion, we remain committed to making FTA a smart and low-carbon logistics service provider, leading the development and transformation of the industry. As new user registration on our Yunmanman and Huochebang apps has started to resume since late June, we have witnessed the gradual improvement in user engagement levels, and we expect to record stronger user growth and higher transaction volume in the coming quarters.”

“Despite the COVID-19 resurgence and softer macro environment, we delivered solid financial results in the second quarter, with total net revenues increasing by 49.3% to RMB1,670.1 million, once again beating the high end of our revenue guidance,” commented Mr. Simon Cai, Chief Financial Officer of FTA. “Notably, due to our increased focus on monetization enhancement and heightened operational efficiency, our non-GAAP adjusted net income further increased by 168.1% year-over-year to RMB266.9 million. As we head into the second half of 2022, we are confident that our strong cash position will support us as we pursue user value creation and navigate the complex market dynamics.”

Second Quarter 2022 Financial Results                                                                                                                        

Net Revenues (including value added taxes, “VAT”, of RMB630.7 million and RMB896.6 million for the three months ended June 30, 2021, and 2022, respectively). Total net revenues in the second quarter of 2022 were RMB1,670.1 million (US$249.3 million), representing an increase of 49.3% from RMB1,118.8 million in the same period of 2021, primarily attributable to an increase in revenues from freight matching services.

Freight matching services. Revenues from freight matching services in the second quarter of 2022 were RMB1,409.6 million (US$210.5 million), representing an increase of 50.3% from RMB937.6 million in the same period of 2021. The increase was primarily due to an increase in revenues from our freight brokerage service as well as rapid growth in transaction commissions.

Freight brokerage service. Revenues from freight brokerage service in the second quarter of 2022 were RMB850.2 million (US$126.9 million), an increase of 41.4% from RMB601.3 million in the same period of 2021, primarily driven by significant growth in transaction volume as a result of improved user penetration. Freight listing service. Revenues from freight listing service in the second quarter of 2022 were RMB211.7 million (US$31.6 million), an increase of 20.7% from RMB175.4 million in the same period of 2021, primarily attributable to an increase in total paying members.  Transaction commission. Revenues from transaction commissions amounted to RMB347.8 million (US$51.9 million) in the second quarter of 2022, an increase of 116.2% from RMB160.9 million in the same period of 2021, primarily driven by the continued ramp-up of commissioned GTV penetration, and partially offset by a decrease in GTV due to COVID-19 outbreaks.

Value-added services. Revenues from value-added services in the second quarter of 2022 were RMB260.4 million (US$38.9 million), an increase of 43.7% from RMB181.2 million in the same period of 2021, mainly attributable to increased revenues from credit solutions.

Cost of Revenues (including VAT net of refund of VAT of RMB481.1 million and RMB672.8 million for the three months ended June 30, 2021, and 2022, respectively). Cost of revenues in the second quarter of 2022 was RMB925.9 million (US$138.2 million), compared with RMB627.0 million in the same period of 2021. The increase was primarily attributable to an increase in VAT, related tax surcharges and other tax costs, and net of tax refunds from government authorities. These tax-related costs net of refunds totaled RMB845.4 million, representing an increase of 47.7% from RMB572.4 million in the same period of 2021, primarily due to an increase in transaction activities involving our freight brokerage service.

Sales and Marketing Expenses. Sales and marketing expenses in the second quarter of 2022 were RMB196.2 million (US$29.3 million), compared with RMB236.8 million in the same period of 2021. The decrease was primarily due to a decrease in advertising and marketing expenses during the user registration suspension period, partially offset by an increase in salary and benefits expenses driven by higher sales and marketing headcount.

General and Administrative Expenses. General and administrative expenses in the second quarter of 2022 were RMB344.8 million (US$51.5 million), compared with RMB2,123.0 million in the same period of 2021. The decrease was primarily due to lower share-based compensation expenses.

Research and Development Expenses. Research and development expenses in the second quarter of 2022 were RMB216.4 million (US$32.3 million), compared with RMB155.1 million in the same period of 2021. The increase was primarily due to an increase in salary and benefits expenses driven by higher research and development headcount.

Loss from Operations. Loss from operations in the second quarter of 2022 was RMB46.4 million (US$6.9 million), compared with RMB2,040.4 million in the same period of 2021.

Non-GAAP Adjusted Operating Income5. Non-GAAP adjusted operating income in the second quarter of 2022 was RMB211.3 million (US$31.5 million), an increase of 949.9% from RMB20.1 million in the same period of 2021.

Net Income/(Loss). Net income in the second quarter of 2022 was RMB12.7 million (US$1.9 million), compared with net loss of RMB1,958.2 million in the same period of 2021.

Non-GAAP Adjusted Net Income. Non-GAAP adjusted net income in the second quarter of 2022 was RMB266.9 million (US$39.8 million), an increase of 168.1% from RMB99.5 million in the same period of 2021.

Basic and Diluted Net Income/(Loss) per ADS6 and Non-GAAP Adjusted Basic and Diluted Net Income/(Loss) per ADS7. Basic and diluted net income per ADS were RMB0.01 (US$0.00) in the second quarter of 2022, compared with basic and diluted net loss per ADS of RMB7.34 in the same period of 2021. Non-GAAP adjusted basic and diluted net income per ADS were RMB0.25 (US$0.04) in the second quarter of 2022, compared with non-GAAP adjusted basic and diluted net loss per ADS of RMB0.49 in the same period of 2021.

Balance Sheet and Cash Flow

As of June 30, 2022, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB26.1 billion (US$3.9 billion) in total, compared with RMB26.0 billion as of December 31, 2021.

In the second quarter of 2022, net cash used in operating activities was RMB286.4 million (US$42.8 million).

Business Outlook

The Company expects its total net revenues to be between RMB1.65 billion and RMB1.73 billion for the third quarter of 2022, representing a year-over-year growth rate of approximately 32.9% to 39.2%, despite the expected impact of the COVID-19 outbreaks on transaction volume for the period. These forecasts reflect the Company’s current and preliminary views on the market and operational conditions. The COVID-19 outbreaks are associated with substantial uncertainties, including the geographic scope and duration of the outbreaks, the additional restrictive measures that the governmental authorities may take, and the further impact on the business of shippers, truckers and other ecosystem participants, all of which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at a rate of RMB6.6981 to US$1.00, the exchange rate in effect as of June 30, 2022, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

Conference Call

The Company’s management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on August 25, 2022, or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the second quarter of 2022.

Dial-in details for the earnings conference call are as follows:

The replay will be accessible through September 1, 2022, by dialing the following numbers:

A live and archived webcast of the conference call will also be available on the Company’s investor relations website at ir.fulltruckalliance.com.

About Full Truck Alliance Co. Ltd.

Full Truck Alliance Co. Ltd. (NYSE: YMM) is a leading digital freight platform, connecting shippers with truckers to facilitate shipments across distance ranges, cargo weights and types. The Company provides a range of freight matching services, including our freight listing service, freight brokerage service and online transaction service. The Company also provides a range of value-added services that cater to the various needs of shippers and truckers, such as financial institutions, highway authorities, and gas station operators. With a mission to make logistics smarter, the Company is shaping the future of logistics with technology and aspires to revolutionize logistics, improve efficiency across the value chain and reduce its carbon footprint for our planet. For more information, please visit ir.fulltruckalliance.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP adjusted operating income, non-GAAP adjusted net income, non-GAAP adjusted net income/(loss) attributable to ordinary shareholders, non-GAAP adjusted basic and diluted net income/(loss) per ordinary shareholder and non-GAAP adjusted basic and diluted net income/(loss) per ADS, each a non-GAAP financial measure, as supplemental measures to review and assess its operating performance.

The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted operating income as loss from operations excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to continuing service terms in business acquisitions and (iv) compensation cost resulting from repurchase of ordinary shares in excess of fair value. The Company defines non-GAAP adjusted net income as net income/(loss) excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to continuing service terms in business acquisitions; (iv) compensation cost resulting from repurchase of ordinary shares in excess of fair value and (v) tax effects of non-GAAP adjustments. The Company defines non-GAAP adjusted net income/(loss) attributable to ordinary shareholders as net income/(loss) attributable to ordinary shareholders excluding (i) share-based compensation expense; (ii) amortization of intangible assets resulting from business acquisitions; (iii) compensation cost incurred in relation to continuing service terms in business acquisitions; (iv) compensation cost resulting from repurchase of ordinary shares in excess of fair value and (v) tax effects of non-GAAP adjustments. The Company defines non-GAAP adjusted basic and diluted net income/(loss) per share as non-GAAP net income/(loss) attributable to ordinary shareholders divided by weighted average number of basic and diluted ordinary shares, respectively. The Company defines non-GAAP adjusted basic and diluted net income/(loss) per ADS as non-GAAP net income/(loss) attributable to ordinary shareholders divided by the weighted average number of basic and diluted ADSs, respectively.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as an analytical tool. The non-GAAP financial measures do not reflect all items of expense that affect its operations. Share-based compensation expense, amortization of intangible assets resulting from business acquisitions, compensation cost incurred in relation to continuing service terms in business acquisitions, compensation cost resulting from repurchase of ordinary shares in excess of fair value and tax effects of non-GAAP adjustments have been and may continue to be incurred in its business and are not reflected in the presentation of its non-GAAP financial measures. 

The Company reconciles the non-GAAP financial measures to the nearest U.S. GAAP performance measures. Non-GAAP adjusted operating income, non-GAAP adjusted net income, non-GAAP adjusted net income/(loss) attributable to ordinary shareholders and non-GAAP adjusted basic and diluted net income/(loss) per share should not be considered in isolation or construed as an alternative to operating loss, net loss, net income/(loss) attributable to ordinary shareholders and basic and diluted net income/(loss) per share or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review FTA’s non-GAAP financial measures to the most directly comparable GAAP measures. FTA’s non-GAAP financial measure may not be comparable to similarly titled measures presented by other companies.

For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of Non-GAAP Results” set forth at the end of this release.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements which are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: FTA’s goal and strategies; FTA’s expansion plans; FTA’s future business development, financial condition and results of operations; expected changes in FTA’s revenues, costs or expenses; industry landscape of, and trends in, China’s road transportation market; competition in FTA’s industry; FTA’s expectations regarding demand for, and market acceptance of, its services; FTA’s expectations regarding its relationships with shippers, truckers and other ecosystem participants; FTA’s ability to protect its systems and infrastructures from cyber-attacks; PRC laws, regulations, and policies relating to the road transportation market, as well as general regulatory environment in which FTA operates in China; the results of regulatory review and the duration and impact of any regulatory action taken against FTA; the impact of COVID-19 outbreaks, extreme weather conditions and production constraints brought by electricity rationing measures; general economic and business condition; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Full Truck Alliance Co. Ltd.
Mao Mao
E-mail: [email protected]

The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: [email protected]

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]