Momo.com (8454) Q4 2023 earnings summary

Executive summary

• FY23 revenue rose 5.6% but missed expectations amid post-COVID reopening and macro uncertainty; growth outpaced the e-commerce industry.

• 4Q23 operating margin held at 4.2% despite rising competition; management expects 2024 revenue growth to exceed 2023.

Financial highlights

• 4Q23 revenue was NT$32,835.8mn, up 3.2% YoY, and operating profit was NT$1,378.9mn, up 2.2%; FY23 operating income was NT$4,384,662 thousand.

• FY23 revenue was NT$109,242,918 thousand versus NT$103,436,435 thousand; net profit was NT$3,628,792 thousand versus NT$3,433,902 thousand.

• Net income attributable to parent rose 12.4% YoY to NT$1,146.8mn in 4Q23 and 5.6% to NT$3,628.1mn for FY23; 4Q23 EPS was NT$5.12.

• Net cash from operations declined to NT$3,663,281 thousand from NT$5,332,034 thousand.

Outlook and guidance

• 2024 revenue growth is expected to surpass 2023, with continued investment in future growth engines while balancing growth and profitability.

• 2024 CAPEX budget is NT$1,277mn: NT$457mn for distribution centers, NT$350mn for warehouse facilities, NT$378mn for IT equipment and NT$92mn for other items.