Meesho (MEESHO) Q4 23/24 earnings summary

Executive summary

• FY24 marked a shift toward profitability: revenue from operations rose 33% to ₹7,615 Cr, adjusted losses excluding ESOP expense narrowed 97% to ₹53 Cr, and free cash flow reached ₹197 Cr.

• Scale continued to expand, with 1.3 Bn FY24 orders, ~187 Mn annual transacting users as of Dec’24, and 400,000+ transacting sellers.

• Management identifies long-term free cash flow per share as its north-star metric and uses long-term FCF returns to guide investment decisions.

Financial highlights

• FY24 revenue from operations was ₹76,149.48 Mn, up 33% YoY; other income was ₹2,301.72 Mn and total income ₹78,451.20 Mn.

• FY24 standalone net loss was ₹3,049.56 Mn versus ₹16,750.13 Mn in FY23; EPS was -₹38.92 versus -₹225.38.

• Adjusted losses excluding employee share-based compensation fell 97%, from ₹1,569 Cr in FY23 to ₹53 Cr in FY24.

• FY24 free cash flow was ₹197 Cr, the first positive full-year FCF reported; contribution profit was ₹1,393 Cr, up ~85% YoY.

• Standalone operating cash flow was ₹2,319.02 Mn, while investing activities used ₹1,790.88 Mn; cash and cash equivalents closed at ₹1,366.29 Mn.

Outlook and guidance

• Long-term FCF per share is the stated north-star measure; operating and capital investments are assessed on long-term marginal IRR, typically over five years.

• Priorities include scaling AI and generative AI, improving discovery and operational efficiency, expanding seller and logistics tools, and growing presence in emerging Indian markets.

• Environmental ambitions include transitioning to sustainable packaging and eliminating single-use plastics over the next decade, alongside EV-based delivery partners.