FinVolution Group Reports Third Quarter 2024 Financial Results
Intellectia.AI
FinVolution Group Reports Third Quarter 2024 Financial Results
FinVolution Group, a leading fintech platform in China, Indonesia, and the Philippines, announced its unaudited financial results for the third quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Net Revenue | RMB 3,276.1M | RMB 3,197.5M | +2.5% |
| Net Profit | RMB 624.1M | RMB 574.7M | +8.6% |
| Diluted EPS (ADS) | RMB 2.40 | RMB 2.05 | +17.1% |
| Non-GAAP Diluted EPS (ADS) | RMB 2.55 | RMB 2.16 | +18.1% |
The company demonstrated strong financial performance with a 2.5% increase in net revenue and an 8.6% rise in net profit year-over-year. The year-over-year (YoY) growth in diluted and non-GAAP EPS indicates improved profitability and operational efficiency.
Revenue Performance by Segment
| Segment | Q3 2024 Revenues | Contribution to Total Revenue | YoY Change |
|---|---|---|---|
| International Operations | RMB 635.5M | 19.4% | +8.7% |
The international segment contributed significantly to overall revenue, representing 19.4% of total net revenue with an 8.7% increase YoY. This underscores the company’s successful international expansion strategy.
Key Developments and Operational Highlights
- Cumulative registered users reached 166.8 million in China and 32.4 million internationally.
- Transaction volume totaled RMB 52.2 billion, with a 1.8% YoY increase.
- Significant growth in international markets with a 59.5% increase in new international borrowers.
Leadership Comments
CEO Tiezheng Li emphasized the company's strategic focus on acquiring high-quality borrowers and highlighted robust growth in international markets. CFO Jiayuan Xu noted an improvement in financial performance, with significant contributions from international revenue and a strong liquidity position of RMB 8,970.3 million (US$1,278.3 million).
Share Repurchase and Capital Return
The company spent US$24.3 million repurchasing shares in Q3 2024, totaling US$81.1 million for the first nine months of 2024, reflecting a year-over-year increase of 23.2% in share repurchase.
Forward Guidance
FinVolution reiterated its full-year transaction volume guidance, expecting China market transactions to reach between RMB 195.7 billion and RMB 205.0 billion and international transactions between RMB 9.4 billion and RMB 11.0 billion, representing respective growth rates of 5.0% to 10.0% and 20.0% to 40.0%.
In conclusion, FinVolution Group posted a strong quarterly performance, marked by substantial growth in international markets and strategic capital allocations, while maintaining a positive forward outlook.
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