Full Truck Alliance says revenue growth could slip into reverse in third quarter
Trucking app operator Full Truck Alliance Co. Ltd. (YMM.US) reported on Wednesday its revenue rose 4.4% year-on-year in the second quarter to 3.38 billion yuan ($501 million), as strong growth for its transactions services offset declines for its freight brokerage business.
The company’s transaction services segment was its strongest performer, up 33.1% year-on-year to 1.77 billion yuan, accounting for more than half of total revenue. Freight brokerage services fell 15.7% to 995 million yuan in the second quarter from 1.18 billion yuan a year earlier, as the company blamed a decrease in transaction volume.
Full Truck Alliance said its revenue could start contracting in the third quarter, forecasting between 3.32 billion yuan and 3.42 billion yuan for the period, compared with 3.36 billion yuan a year earlier. Revenue at the center of that range would be roughly flat year-on-year.
Full Truck Alliance’s net profit for the second quarter rose 6.3% to 1.35 billion yuan from 1.26 billion yuan a year earlier. The company also declared a third-quarter dividend of $0.084 per American depositary share (ADS).
Full Truck Alliance’s ADSs fell 1.1% on Wednesday to close at $8.70. The stock is down about 21% this year.
By Doug Young
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