Momo.com (8454) Q3 2024 earnings summary

Executive summary

• Third quarter revenue grew 1.9% year-over-year to TWD 25.5 billion, with e-commerce up 2.6% and media down 15.8%.

• Net income for Q3 was TWD 666 million, EPS TWD 2.64, both down over 11% year-over-year; EBITDA reached TWD 1.15 billion with a margin of 4.5%.

• Quarterly active users increased 10% year-over-year, the highest in six quarters, with improved customer acquisition and retention.

• Operating expenses rose due to investments in business development and marketing.

• For the nine months ended September 30, 2024, revenue reached TWD 79.1 billion, up 3.5%, but net profit declined 5.5% to TWD 2.34 billion.

Financial highlights

• E-commerce accounted for nearly 97% of revenue, growing faster than the total online industry at 3% adjusted year-over-year.

• Free cash flow for the first nine months reached TWD 1.6 billion; operating cash flow TWD 2.9 billion.

• Capital expenditures totaled TWD 1.27 billion, focused on logistics and IT; 9M24 CAPEX at TWD 747 million for distribution centers and IT.

• Gross margin remained stable at 9% despite a slight year-over-year decline, mainly due to accounting changes.

• Cash and cash equivalents at quarter-end were TWD 3.33 billion, down from TWD 4.57 billion a year earlier.

Outlook and guidance

• Optimistic about first quarter performance, especially post-Double 11 campaign.

• Continued investment in logistics infrastructure, MoShop, RMN (Retail Media Network), live streaming, and new warehouse construction.

• Customer metrics, including monthly average visitors and active users, continued to grow despite industry headwinds.