JD.com Inc (JD) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Profitability Gains

GuruFocus News
4 min read

In This Article:

  • Net Revenues: RMB 260 billion, up 5% year-on-year.

  • Product Revenues: Increased by 5% year-on-year.

  • Electronics and Home Appliances Revenue: Grew by 3% year-on-year.

  • General Merchandise Revenue: Increased by 8% year-on-year.

  • Supermarket Category Revenue: Achieved double-digit growth year-on-year.

  • Service Revenues: Grew by 7% year-on-year.

  • Marketplace and Marketing Revenues: Up 6% year-on-year.

  • Logistics and Other Service Revenues: Increased by 7% year-on-year.

  • Gross Margin: Expanded by 165 basis points to 17.3%.

  • Non-GAAP Operating Income: Increased by 18% year-on-year.

  • Non-GAAP Net Profit Margin: 5.1%, up 76 basis points year-on-year.

  • Free Cash Flow: RMB 34 billion for the last 12 months.

  • Share Repurchase Program: USD 390 million in Q3, total USD 3.65 billion for the first nine months of 2024.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • JD.com Inc (NASDAQ:JD) reported solid Q3 2024 results with accelerated top-line growth and improved operating and financial performance.

  • The company's active user base and shopping frequency expanded, contributing to a substantial uplift in the bottom line.

  • JD.com Inc (NASDAQ:JD) continues to leverage its strong supply chain capabilities and logistics infrastructure, delivering lower costs and higher efficiency.

  • The general merchandise category, particularly the supermarket segment, showed robust growth with double-digit revenue increases.

  • JD.com Inc (NASDAQ:JD) achieved a significant increase in profitability, with both gross margin and non-GAAP net margin expanding year-over-year.

Negative Points

  • The new business segment experienced a revenue decline of 26% year-on-year, primarily due to adjustments in certain business areas.

  • Despite improvements, JD.com Inc (NASDAQ:JD) still faces challenges in meeting long-term expectations for the profitability of its supermarket category.

  • The company acknowledged that the full potential of the trading policy has not yet been fully realized, indicating room for improvement.

  • JD.com Inc (NASDAQ:JD) faces a highly competitive e-commerce landscape, requiring continuous investment in user experience and price competitiveness.

  • The company's new business segment reported increased losses, highlighting ongoing challenges in achieving profitability in this area.

Q & A Highlights

Q: Could you quantify the impact of the appliance trading programs in Q3 and discuss its sustainability into next year? What are JD.com's strategies in other categories like supermarket and general merchandise to sustain growth? A: Sandy Xu, CEO: The government's trading policy has shown positive progress, boosting sales in home appliances and consumer electronics. JD.com has responded by enhancing inventory and service efficiency. The full potential of the policy is yet to be realized, as consumer awareness and production capacity need time to catch up. We expect the policy to continue supporting consumer spending. For sustained growth, we focus on enhancing user experience, optimizing costs, and boosting efficiency across categories like supermarket and fashion.

Recommended Stories