Momo.com (8454) Q2 2024 earnings summary

Executive summary

• Q2 revenue reached NT$26.66 billion, up 1.7% year-over-year, with e-commerce accounting for over 96% of total revenue and growing 2.2% year-over-year.

• Gross margin declined to 9.1% due to increased discounts and lower ASP, but operational efficiency improvements helped control expenses.

• Net income to parent for H1 was NT$1.68 billion, with EPS at NT$6.98, down 3.1% year-over-year.

• Free cash flow for Q2 was NT$1.1 billion, and cash and cash equivalents increased to NT$7.61 billion as of June 30, 2024.

• Three new strategic initiatives (mo-shop+, live streaming, RMN) showed promising early results, positioning for future growth.

Financial highlights

• 1H24 revenue was NT$53.53 billion, up 4.3% year-over-year; Q2 gross profit was NT$2.43 billion.

• Gross margin for Q2 and H1 was 9.1% and 9% respectively; EBITDA margin for Q2 was 4.7%.

• Net cash position at end of Q2 was NT$7.61 billion, up from NT$5.21 billion a year ago.

• Free cash flow for H1 increased to NT$1.9 billion from NT$800 million in H1 2023.

• Basic and diluted EPS for H1 was NT$6.98, compared to NT$7.20 last year.

Outlook and guidance

• Cautiously optimistic for H2 and Q1 next year, but industry outlook remains unclear.

• No firm revenue growth guidance for the full year; Q1 expected to outperform Q3.

• Ongoing investment in logistics infrastructure and new initiatives to drive long-term growth.