Momo.com (8454) Q3 2024 earnings summary

Executive summary

• Third quarter revenue reached TWD 25.6 billion, up 1.9% year-over-year, with e-commerce comprising nearly 97% of total revenue and growing 2.6% year-over-year.

• Net income for the quarter was TWD 666 million, with EPS of TWD 2.64 on a diluted basis, both down over 11% year-over-year.

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

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

• For the nine months ended September 30, 2024, revenue was TWD 79.1 billion, up 3.5% year-over-year, with net profit at TWD 2.34 billion, down 5.5%.

Financial highlights

• EBITDA for Q3 was TWD 1.15 billion, with an EBITDA margin of 4.5%; 9M24 EBITDA margin was 4.9%.

• Free cash flow for the first nine months reached TWD 1.6 billion, supported by operating cash flow of TWD 2.9 billion.

• Capital expenditures totaled TWD 1.27 billion, focused on logistics, automation, and IT.

• Ended the quarter with TWD 3.33 billion in cash and cash equivalents, down from TWD 4.57 billion a year earlier.

• Cash dividends of TWD 3.56 billion were paid in 2024, with a dividend per share of TWD 14.8.

Outlook and guidance

• Optimistic about first quarter performance, with preparations for the Double 11 campaign and ongoing strategic investments in logistics and technology.

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

• Major 20-year warehouse lease agreement with Fubon Life planned, with right-of-use assets expected to reach TWD 10.78 billion starting 2027.