Full Truck Alliance doubles its revenue in first earnings report after US listing

Chinese truck-hailing platform Full Truck Alliance has doubled its total net revenue year on year for the second quarter of 2021. Its losses swelled over sixfold.

Photo credit: Full Truck Alliance

In its first earnings release after listing in the US in June, Full Truck Alliance logged 1.1 billion yuan (US$173.3 million) in Q2 revenues during the reported quarter, growing from the US$86 million it recorded in the same period last year.

The company’s freight matching services, which involves pairing shippers to freight carriers, was the main driver of its revenue growth. The segment was able to generate US$145.2 million for the second quarter, a 109.8% increase from the almost US$69 million it raked in during the same quarter a year ago.

The increase was primarily due to a rise in transaction activities amid a recovery in road transportation in China from the Covid-19 pandemic, the company said.

The freight matching service alone was able to offset the cost of revenue from operations, which came in at around US$97.1 million for Q2 2021. That number grew from last year’s US$58.3 million mainly driven by an increase in tax costs, the company said.

Full Truck Alliance’s freight brokerage service was the company’s second-best performing arm in terms of revenue, pulling in US$93.1 million during this quarter, an 89% growth in comparison to Q2 last year.

Meanwhile, the company registered US$303.3 million in net losses for the quarter, rising by over 6x from the same period in 2020. However, it was able to swing its non-GAAP from an adjusted net loss of US$6 million in Q2 2020 to an adjusted net income of US$15.4 million during this quarter.

“While we face certain headwinds in the third quarter, we have confidence in the resilience of our business model and our ability to adeptly execute our operational plan,” said Full Truck Alliance’s chief financial officer, Simon Cai.

The company plans to continue investing in its infrastructure, technology, and logistics network, as its diverse offerings and coverage “remain key components to our success,” he added.

Looking ahead, the company said it expects its total net revenues to be between US$160.4 million and US$177.4 million in the third quarter of 2021. This would represent a roughly 42% to 56.2% year-on-year growth.

Currency converted from yuan to US dollar: US$1 = 6.48 yuan.