Full Truck Alliance Co. Ltd. Announces Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results

GUIYANG, China, March 1, 2022 /PRNewswire/ -- Full Truck Alliance Co. Ltd. ("FTA" or the "Company") (NYSE: YMM), a leading digital freight platform, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2021.

Fourth Quarter and Fiscal Year 2021 Financial and Operational Highlights

• Total net revenues in the fourth quarter of 2021 were RMB1,429.4million (US$224.3 million), an increase of 68.1% from RMB850.4 million in the same period of 2020. Total net revenues in 2021 were RMB4,657.0 million (US$730.8 million), an increase of 80.4% from RMB2,580.8 million in 2020.
• Net loss in the fourth quarter of 2021 was RMB1,321.1 million (US$207.3 million), compared with RMB2,775.6 million in the same period of 2020. Net loss in 2021 was RMB3,654.5 million (US$573.5 million), compared with RMB3,470.5 million in 2020.
• Non-GAAP adjusted net income¹ in the fourth quarter of 2021 was RMB242.8 million (US$38.1 million), compared with RMB147.9 million in the same period of 2020. Non-GAAP adjusted net income in 2021 was RMB450.5 million (US$70.7 million), compared with RMB281.1 million in 2020.
• Gross Transaction Value ("GTV")²in the fourth quarter of 2021 reached RMB69.5 billion (US$10.9 billion), an increase of 22.1% from RMB56.9 billion in the same period of 2020. Gross Transaction Value ("GTV") in 2021 reached RMB262.3 billion (US$41.2 billion), an increase of 50.9% from RMB173.8 billion in 2020.
• Fulfilled orders³in the fourth quarter of 2021 reached 34.8 million, an increase of 41.6% from 24.6 million in the same period of 2020. Fulfilled orders in 2021 reached 128.3 million, an increase of 78.8% from 71.7 million in 2020.
• Average shipper MAUs⁴in the fourth quarter of 2021 reached 1.57 million, an increase of 20.6% from 1.31 million in the same period of 2020. Average shipper MAUs in 2021 reached 1.48 million, an increase of 36.8% from 1.09 million in 2020.

"We are pleased to report solid fourth quarter and full year results as our efforts to steer matching efficiency and user engagement to new levels have resulted in sustainable top-line growth," said Mr. Peter Hui Zhang, Founder, Chairman and Chief Executive Officer of FTA. "As we move further into 2022, we will focus on strengthening our monetization system to support our long-term, healthy development as we explore new growth areas, and capitalize on our digital strengths to transform FTA into a green and low-carbon logistics service provider. We are proud to fulfill our social responsibilities by improving efficiency, promoting energy conservation and reducing emissions. We seek to benefit the industry and society at large as we strive to effectively execute our roadmap to deliver value for our users and shareholders alike."

Mr. Simon Cai, Chief Financial Officer of FTA, added "Our robust results in the fourth quarter demonstrate the resilience of our platform. Our total revenues reached RMB1.43 billion, 68.1% higher than the prior year period, exceeding the top end of our revenue guidance by 9.1%. Our profitability continued to improve steadily, thanks to the consistent enhancement of our monetization efforts and the streamlining of our operational efficiencies. Most notably, on a non-GAAP basis, net income expanded further to RMB242.8 million from RMB147.9 million a year ago. We expect our user base to remain sticky on our platform and help us continue to deliver strong results."

Fourth Quarter 2021 Financial Results 

Net Revenues (including value added taxes ("VAT") of RMB493.8 million and RMB798.6 million for the three months ended December 31, 2020 and 2021, respectively). Total net revenues in the fourth quarter of 2021 were RMB1,429.4 million (US$224.3 million), representing an increase of 68.1% from RMB850.4 million in the same period of 2020, primarily attributable to an increase in revenues from freight matching services.

Freight matching services. Revenues from freight matching services in the fourth quarter of 2021 were RMB1,229.0 million (US$192.9 million), representing an increase of 85.7% from RMB661.8 million in the same period of 2020. The increase was primarily due to an increase in revenues from freight brokerage service as well as rapid growth in transaction commissions.

• Freight brokerage service. Revenues from freight brokerage service in the fourth quarter of 2021 were RMB760.9 million (US$119.4 million), an increase of 61.1% from RMB472.4 million in the same period of 2020, primarily driven by significant growth in transaction volume, partially offset by a decrease in average fee rate to attract more shippers to our service.
• Freight listing service. Revenues from freight listing service in the fourth quarter of 2021 were RMB200.5 million (US$31.5 million), an increase of 30.0% from RMB154.3 million in the same period of 2020, primarily attributable to an increase in total paying members amid increased shipper demand for our services as our business continued to expand.
• Transaction commission. Revenues from transaction commissions amounted to RMB267.5 million (US$42.0 million) in the fourth quarter of 2021, an increase of 6.6 times from RMB35.2 million in the same period of 2020, primarily driven by a rapid ramp-up of commissioned GTV penetration.

Value-added services. Revenues from value-added services in the fourth quarter of 2021 were RMB200.4 million (US$31.5 million), compared with RMB188.5 million in the same period of 2020, mainly attributable to increased revenues from credit solutions and other value-added services.

Cost of Revenues (including VAT net of refund of VAT of RMB266.3 million and RMB490.5 million for the three months ended December 31, 2020 and 2021, respectively). Cost of revenues in the fourth quarter of 2021 was RMB658.2 million (US$103.3 million), compared with RMB398.4 million in the same period of 2020. The increase was primarily attributable to an increase in VAT, related tax surcharges and other tax costs, net of tax refunds from government authorities. These tax-related costs net of refunds totaled RMB555.5 million, representing an increase of 67.4% from RMB331.8 million in the same period of 2020, primarily due to an increase in transaction activities involving our freight brokerage service.

Sales and Marketing Expenses. Sales and marketing expenses in the fourth quarter of 2021 were RMB239.4 million (US$37.6 million), compared with RMB161.3 million in the same period of 2020. The increase was primarily due to an increase in salary and benefits expenses driven by an increase in sales and marketing headcount as well as an increase in advertising and marketing expenses related to the promotion of new initiatives, partially offset by a decrease in share-based compensation expenses.

General and Administrative Expenses. General and administrative expenses in the fourth quarter of 2021 were RMB1,636.2 million (US$256.7 million), compared with RMB2,977.7 million in the same period of 2020. The decrease was primarily due to lower share-based compensation expenses.

Research and Development Expenses. Research and development expenses in the fourth quarter of 2021 were RMB233.6 million (US$36.7 million), compared with RMB119.0 million in the same period of 2020. The increase was primarily due to an increase in salary and benefits expenses driven by the higher headcount in research and development personnel.

Loss from Operations. Loss from operations in the fourth quarter of 2021 was RMB1,351.9 million (US$212.1 million), compared with RMB2,805.2 million in the same period of 2020.

Non-GAAP Adjusted Operating Income⁵. Non-GAAP adjusted operating income in the fourth quarter of 2021 was RMB159.1 million (US$25.0 million), compared with RMB121.0 million in the same period of 2020.

Net Loss. Net loss in the fourth quarter of 2021 was RMB1,321.1 million (US$207.3 million), compared with RMB2,775.6 million in the same period of 2020.

Non-GAAP Adjusted Net Income. Non-GAAP adjusted net income in the fourth quarter of 2021 was RMB242.8 million (US$38.1 million), compared with RMB147.9 million in the same period of 2020.

Basic and Diluted Net Loss per ADS⁶ and Non-GAAP Adjusted Basic and Diluted Net Income per ADS⁷. Basic and diluted net loss per ADS were RMB1.23(US$0.19) in the fourth quarter of 2021, compared with RMB16.97 in the same period of 2020. Non-GAAP adjusted basic and diluted net income per ADS were RMB0.23(US$0.04) in the fourth quarter of 2021, compared with non-GAAP adjusted basic net income per ADS of RMB0.16 and non-GAAP adjusted diluted net income per ADS of RMB0.03 in the same period of 2020.

Balance Sheet and Cash Flow

As of December 31, 2021, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB26.0 billion (US$4.1 billion) in total, compared with RMB18.9 billion as of December 31, 2020.

In the fourth quarter of 2021, net cash provided from operating activities was RMB433.9 million (US$68.1 million).

Fiscal Year 2021 Financial Results                                                                                                                                 

Net Revenues (including value added taxes ("VAT") of RMB1,434.0 million and RMB2,620.4 million for the years ended December 31, 2020 and 2021, respectively). Total net revenues in 2021 were RMB4,657.0 million (US$730.8 million), representing an increase of 80.4% from RMB2,580.8 million in 2020, primarily attributable to an increase in revenues from freight matching services.

Freight matching services. Revenues from freight matching services in 2021 were RMB3,946.9 million (US$619.4 million), representing an increase of 102.7% from RMB1,947.0 million in 2020. The increase was primarily due to an increase in revenues from freight brokerage service as well as rapid growth in transaction commissions.

• Freight brokerage service. Revenues from freight brokerage service in 2021 were RMB2,497.8 million (US$392.0 million), an increase of 83.0% from RMB1,365.2 million in 2020, primarily driven by significant growth in transaction volume, partially offset by a decrease in average fee rate to attract more shippers to our service.
• Freight listing service. Revenues from freight listing service in 2021 were RMB753.0 million (US$118.2 million), an increase of 39.8% from RMB538.7 million in 2020, primarily attributable to an increase in total paying members amid increased shipper demand for our services as our business continued to expand.
• Transaction commission. Revenues from transaction commissions amounted to RMB696.1 million (US$109.2 million) in 2021, compared with RMB43.1 million in 2020, primarily driven by a rapid ramp-up of commissioned GTV penetration.

Value-added services. Revenues from value-added services in 2021 were RMB710.1 million (US$111.4 million), compared with RMB633.8 million in 2020, mainly attributable to increased revenues from credit solutions and other value-added services.

Cost of Revenues (including VAT net of refund of VAT of RMB893.9 million and RMB1,950.9 million for the years ended December 31, 2020 and 2021, respectively). Cost of revenues in 2021 was RMB2,540.0 million (US$398.6 million), compared with RMB1,316.0 million in 2020. The increase was primarily attributable to an increase in VAT, related tax surcharges and other tax costs, net of tax refunds from government authorities. These tax-related costs net of refunds totaled RMB2,257.7 million, representing an increase of 105.3% from RMB1,099.7 million in 2020, primarily due to an increase in transaction activities involving our freight brokerage service.

Sales and Marketing Expenses. Sales and marketing expenses in 2021 were RMB837.3 million (US$131.4 million), compared with RMB454.3 million in 2020. The increase was primarily due to an increase in salary and benefits expenses driven by an increase in sales and marketing headcount as well as an increase in advertising and marketing expenses related to the promotion of new initiatives.

General and Administrative Expenses. General and administrative expenses in 2021 were RMB4,271.2 million (US$670.2 million), compared with RMB3,938.6 million in 2020. The increase was primarily due to an increase in share-based compensation expenses. 

Research and Development Expenses. Research and development expenses in 2021 were RMB729.7 million (US$114.5 million), compared with RMB413.4 million in 2020. The increase was primarily due to an increase in salary and benefits expenses driven by the higher headcount in research and development personnel, as well as an increase in investment in technology infrastructure.

Loss from Operations. Loss from operations in 2021 was RMB3,795.9 million (US$595.7 million), compared with RMB3,614.6 million in 2020.

Non-GAAP Adjusted Operating Income. Non-GAAP adjusted operating income in 2021 was RMB208.8 million (US$32.8 million), compared with RMB148.0 million in 2020.

Net Loss. Net loss in 2021 was RMB3,654.5 million (US$573.5 million), compared with RMB3,470.5 million in 2020.

Non-GAAP Adjusted Net Income. Non-GAAP adjusted net income in 2021 was RMB450.5 million (US$70.7 million), compared with RMB281.1 million in 2020.

Basic and Diluted Net Loss per ADS and Non-GAAP Adjusted Basic and Diluted Net Income/(Loss) per ADS. Basic and diluted net loss per ADS were RMB6.21(US$0.97) in 2021, compared with RMB20.97 in 2020. Non-GAAP adjusted basic and diluted net loss per ADS were RMB0.10(US$0.02) in 2021, compared with non-GAAP adjusted basic net income per ADS of RMB0.94 and non-GAAP adjusted diluted net income per ADS of RMB0.20 in 2020.

Business Outlook

The Company expects its total net revenues to be between RMB1.04 billion and RMB1.09 billion in the first quarter of 2022, representing a year-over-year growth rate of approximately 19.8% to 25.3%. These forecasts reflect the Company's current and preliminary views on the market, operational conditions and the impact of the pending cybersecurity review, recurring COVID-19 related disruptions, extreme weather conditions and production constraints brought about by electricity rationing measures in parts of China, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof. 

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at a rate of RMB6.3726 to US$1.00, the exchange rate in effect as of December 30, 2021 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

Conference Call

The Company's management will hold an earnings conference call at 7:00 A.M. U.S. Eastern Time on March 1, 2022 or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the fourth quarter and fiscal year 2021.

Dial-in details for the earnings conference call are as follows:

The replay will be accessible through March 8, 2022 by dialing the following numbers:

A live and archived webcast of the conference call will also be available on the Company's investor relations website at ir.fulltruckalliance.com.

About Full Truck Alliance Co. Ltd.

Full Truck Alliance Co. Ltd. (NYSE: YMM) is a leading digital freight platform, connecting shippers with truckers to facilitate shipments across distance ranges, cargo weights and types. The Company provides a range of freight matching services including freight listing service, freight brokerage service and online transaction service. The Company also provides a range of value-added services that cater to the various needs of shippers and truckers, such as financial institutions, highway authorities, and gas stations operators. With a mission to make logistics smarter, the Company is shaping the future of logistics with technology and aspires to revolutionize logistics, improve efficiency across the value chain and reduce its carbon footprint for our planet. For more information, please visit ir.fulltruckalliance.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP adjusted operating income/(loss), non-GAAP adjusted net income/(loss), non-GAAP adjusted net income/(loss) attributable to ordinary shareholders, non-GAAP adjusted basic and diluted net income/(loss) per ordinary shareholder and non-GAAP adjusted basic and diluted net income/(loss) per ADS, each a non-GAAP financial measure, as supplemental measures to review and assess its operating performance.

The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted operating income/(loss) as income/(loss) from operations excluding (i) share-based compensation expense, (ii) compensation expense resulting from repurchase of ordinary shares from certain employees in excess of fair value, (iii) amortization of intangible assets resulting from business acquisitions and (iv) compensation cost incurred in relation to continuing service terms in business acquisitions. The Company defines non-GAAP adjusted net income/(loss) as net income/(loss) excluding (i) share-based compensation expense, (ii) compensation expense resulting from repurchase of ordinary shares from certain employees in excess of fair value, (iii) amortization of intangible assets resulting from business acquisitions, (iv) compensation cost incurred in relation to continuing service terms in business acquisitions, (v) impairment of long-term investment, (vi) tax effects of non-GAAP adjustments and (vii) net income from discontinued operations, net of tax. The Company defines non-GAAP adjusted net income/(loss) attributable to ordinary shareholders as net income/(loss) attributable to ordinary shareholders excluding (i) share-based compensation expense, (ii) compensation expense resulting from repurchase of ordinary shares from certain employees in excess of fair value, (iii) amortization of intangible assets resulting from business acquisitions, (iv) compensation cost incurred in relation to continuing service terms in business acquisitions, (v) impairment of long-term investment, (vi) tax effects of non-GAAP adjustments and (vii) net income from discontinued operations, net of tax. The Company defines non-GAAP adjusted basic and diluted net income/(loss) per share as non-GAAP net income/(loss) attributable to ordinary shareholders divided by weighted average number of basic and diluted ordinary shares, respectively. The Company defines non-GAAP adjusted basic and diluted net income/(loss) per ADS as non-GAAP net income/(loss) attributable to ordinary shareholders divided by the weighted average number of basic and diluted ADS, respectively.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as an analytical tool. The non-GAAP financial measures do not reflect all items of expense that affect its operations. Share-based compensation expense, compensation expense resulting from repurchase of ordinary shares from certain employees in excess of fair value, amortization of intangible assets resulting from business acquisitions, compensation cost incurred in relation to continuing service terms in business acquisitions, impairment of long-term investment and tax effects of non-GAAP adjustments have been and may continue to be incurred in its business and are not reflected in the presentation of its non-GAAP financial measures. 

The Company reconciles the non-GAAP financial measures to the nearest U.S. GAAP performance measures. Non-GAAP adjusted operating income/(loss), non-GAAP adjusted net income/(loss), non-GAAP adjusted net income/(loss) attributable to ordinary shareholders and non-GAAP adjusted basic and diluted net income/(loss) per share should not be considered in isolation or construed as an alternative to operating income/(loss), net income/(loss), net income/(loss) attributable to ordinary shareholders and basic and diluted net income/(loss) per share or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review FTA's non-GAAP financial measures to the most directly comparable GAAP measures. FTA's non-GAAP financial measure may not be comparable to similarly titled measures presented by other companies.

For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" set forth at the end of this release.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: FTA's goal and strategies; FTA's expansion plans; FTA's future business development, financial condition and results of operations; expected changes in FTA's revenues, costs or expenses; industry landscape of, and trends in, China's road transportation market; competition in FTA's industry; FTA's expectations regarding demand for, and market acceptance of, its services; FTA's expectations regarding its relationships with shippers, truckers and other ecosystem participants; FTA's ability to protect is systems and infrastructures from cyber-attacks; PRC laws, regulations, and policies relating to the road transportation market, as well as general regulatory environment in which FTA operates in China; the results of regulatory review and the duration and impact of any regulatory action taken against FTA; the impact of COVID-19 pandemic, extreme weather conditions and production constraints brought by electricity rationing measures; general economic and business condition; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Full Truck Alliance Co. Ltd.
Mao Mao
E-mail: IR@amh-group.com

The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: FTA@thepiacentegroup.com

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: FTA@thepiacentegroup.com