YMM Q2 2025: Fulfilled Orders Up 23.8% with Record 40.7% Rate
- Strong Fulfilled Orders Growth and Efficiency: The company’s fulfilled orders increased by 23.8% year over year alongside a record-high fulfillment rate of 40.7%, driven by an expanding user base and enhanced order matching technology.
- Robust Shipper Engagement: With average shipper monthly active users exceeding 3,160,000 and shipper members surpassing 1,200,000, the improved onboarding and retention efforts indicate strong demand and loyalty among high-quality users.
- Proactive Revenue and Operational Adjustments: The recent fee rate increase in freight brokerage services to offset rising costs, together with strategic adjustments in the entrusted shipment segment, underlines management’s focus on sustainable revenue growth and improved profitability.
- Freight brokerage fee impact: The increase in the freight brokerage service fee to between 10%-11% may lead to a significant decline in transaction volumes starting next quarter, potentially putting pressure on near-term revenue and profitability.
- Short-term slowdown in entrusted shipment orders: The strategic shift to focus exclusively on full truckload transactions resulted in a short-term slowdown in order volume growth, generating uncertainty in the near-term performance of that segment.
- Macro and competitive pressures: Continued macro uncertainties and the anticipated consolidation in the sector alongside competitive pressures may affect overall market demand and client retention, challenging future growth projections.
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Total Net Revenues | Q2 2025 | no prior guidance | RMB 3.06 billion to RMB 3.12 billion; growth rate 10.6% to 12.9% | no prior guidance |
Net Revenues | Q3 2025 | no prior guidance | Expected growth rate approximately 1.3% to 4.6% | no prior guidance |
Excluding freight brokerage Net Revenues | Q3 2025 | no prior guidance | Expected to range from RMB2.16 billion to RMB2.46 billion; growth rate approximately 23.8% to 29.1% | no prior guidance |
| Topic | Previous Mentions | Current Period | Trend |
|---|---|---|---|
Consistent Order Fulfillment Growth and Efficiency | Q1 2025 reported a 22.6% YoY increase with a 39.2% fulfillment rate , Q4 2024 highlighted record improvements with rates around 37.5% , and Q3 2024 showed a 34.5% rate with strategic user structure adjustments | Q2 2025 achieved a historical high of 40.7% with RMB60.8 million in fulfilled orders and enhanced matching through an intelligent system | Continued improvement and scaling of fulfillment metrics with a clear focus on operational efficiency |
Steady User Engagement and Acquisition Trends | Q1 2025 noted 2.76 million monthly active shippers and robust trucker retention ; Q4 2024 and Q3 2024 emphasized growth in active shipper members (2.93 million and 2.84 million MAUs, respectively) and evolving user structures | Q2 2025 reported 3,160,000 monthly active shippers with a deliberate shift from intermediary to direct shippers and signals of market saturation | Sustained growth with increasing market maturity and focus on higher quality user segments |
Recurring Monetization and Revenue Growth Strategies | Q1 2025 showed strong transaction service revenue growth and a 12% increase in monetization per order ; Q4 2024 and Q3 2024 detailed enhanced membership monetization and improved monetized order penetration (e.g., 82.9% and 82.8%) | Q2 2025 emphasized improved monetization efficiency with RMB25.2 per order, surging transaction service revenue, and targeted membership programs | Ongoing focus on enhancing revenue efficiency and diversifying monetization channels |
Freight Brokerage Fee Adjustments and Strategic Revenue Mix Shifts | Q1 2025 mentioned fee increases that balanced flat freight brokerage revenues and Q4 2024 reported a fee rate increase to about 7% to offset declining margins. Q3 2024 did not address this topic. | Q2 2025 increased fee rates to 10%-11% with strategic expectations for market consolidation and refined revenue mix | An intensified approach to fee adjustment aimed at optimizing revenue structure and managing risks |
Ongoing Operational Efficiency and Enhanced Order Matching Capabilities | Q1 2025 highlighted breakthroughs in reducing matching time and improved fulfillment (39.2% rate) , Q4 2024 showed record fulfillment improvements , and Q3 2024 detailed system optimizations and product feature enhancements | Q2 2025 delivered a historic fulfillment rate of 40.7% by deploying an intelligent matching system and AI-driven process improvements | Consistent enhancements in operational processes and matching precision across periods |
Macroeconomic, Tariff, and Competitive Risk Factors | Q1 2025 addressed a challenging economic environment with minimal tariff impact and strong technology investments ; Q4 2024 acknowledged a dynamic macro landscape with some fee adjustments for tax risks ; Q3 2024 made general references to subdued market activity | Q2 2025 briefly mentioned ongoing macro uncertainties and noted that fee adjustments may drive smaller players out, aiding consolidation | Persistent external risks with strategic adjustments to mitigate competitive pressures remain a constant concern |
Emerging Technological Investments and Execution Risks | Q1 2025 provided an in‐depth discussion on AI applications, autonomous driving investments, and associated execution risks ; Q4 2024 mentioned AI-driven innovations to enhance freight matching ; Q3 2024 did not mention this topic | Q2 2025 did not address emerging technological investments or execution risks [N/A] | A marked reduction in focus compared to earlier periods, suggesting a shift away from discussing these topics |
Business Segment Shifts (entrusted shipments, full truckload focus, and LTL expansion) | Q1 2025 clarified pricing differences among entrusted shipment, FTL, and LTL, with rapid LTL growth ; Q4 2024 provided detailed segmentation including strong entrusted shipment performance, FTL operational know‐how, and LTL expansion strategies ; Q3 2024 emphasized guiding shippers to entrusted shipments and reducing intermediaries | Q2 2025 announced a strategic shift by discontinuing LTL carpooling to focus on full truckload entrusted shipments with premium pricing and enhanced matching, accepting a short-term volume slowdown for long-term quality | A continuous evolution toward premium, high-quality shipment segments with more aggressive realignment in the latest period |
Capital Allocation and Failed Investment Concerns | Q1 2025 discussed increased investment in Plus PRC to bolster autonomous driving leadership ; Q4 2024 detailed a semiannual dividend policy, share repurchases, and a one-off impairment loss from a failed investment in an e-commerce platform ; Q3 2024 had no mention | Q2 2025 did not mention capital allocation or failed investment concerns [N/A] | A diminished focus in the current period, indicating these concerns are less emphasized or resolved |
Sales and Marketing Expense Pressures for User Acquisition | Q1 2025 reported expenses of RMB377.9 million due to higher advertising, partially offset by lower salaries ; Q4 2024 saw expenses rise to RMB471.8 million ; Q3 2024 recorded RMB412.5 million driven by user acquisition investments | Q2 2025 reported expenses of RMB433.8 million, continuing the trend of high advertising spend for user acquisition | Expense pressures remain consistently high, with incremental variations over the periods |
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Order Growth
Q: What drove orders’ growth and future outlook?
A: Management explained that a rapid expansion of both shipper and trucker bases combined with product enhancements—like an intelligent matching system—boosted fulfilled orders by 23.8% YoY and achieved a record 40.7% fulfillment rate. They remain optimistic about continued growth despite market uncertainties. -
Freight Fee
Q: Fee hike impact and Nai Lingbao outlook?
A: Management stated that increasing freight brokerage fees to 10%-11% was necessary to cover rising tax costs, ensure stable retention, and improve profitability. They expect this adjustment to have a limited adverse effect on the Nai Lingbao business while paving the way for consolidation in the sector. -
Shipper Growth
Q: What drove shipper MAU and membership gains?
A: Management noted that improved user acquisition strategies and refined product experiences drove a 19.3% YoY increase in shipper MAUs and pushed membership numbers past 1,200,000, reflecting stronger user engagement and loyalty. -
Entrusted Shipment
Q: How did entrusted shipment business perform?
A: Management detailed a strategic shift by discontinuing low-value carpooling and focusing on full truckload orders. This move has led to higher freight rates and improved trucker engagement, despite a short-term slowdown in order volume, emphasizing a premium service focus. -
Regulatory Action
Q: What steps taken after self-regulation convention?
A: Management outlined that they enhanced freight rate protection, tightened oversight to block market-disruptive practices, and improved reporting channels—all measures designed to safeguard trucker earnings and ensure a fair trading environment.
Research analysts covering Full Truck Alliance Co Ltd.