Qifu Technology Reports Third Quarter 2024 Financial Results
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Qifu Technology Reports Third Quarter 2024 Financial Results
Qifu Technology, Inc. (NASDAQ: QFIN, HKEx: 3660), a leading Credit-Tech platform in China, released its unaudited financial results for the third quarter ended September 30, 2024. The company demonstrated a solid financial performance, showcasing resilience in a challenging economic environment.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2023 | QoQ Change | YoY Change |
|---|---|---|---|---|
| Total Revenue | $622.7 million | $610.0 million | +5.1% | +2.1% |
| Net Income | $256.3 million | $162.2 million | +30.6% | +57.1% |
| Earnings Per Share (EPS) | $1.74 | $0.99 | +24.1% | +75.8% |
Qifu Technology's strong performance was marked by a notable year-over-year increase in net income and earnings per share, indicating improved operational efficiency and cost management.
Revenue Performance by Segment
| Revenue Segment | Q3 2024 | Q3 2023 | QoQ Change | YoY Change |
|---|---|---|---|---|
| Credit Driven Services | $413.4 million | $437.9 million | -0.4% | -5.6% |
| Platform Services | $209.3 million | $172.4 million | +17.7% | +21.4% |
Platform Services exhibited robust growth, surpassing guidance expectations, while Credit Driven Services faced a contraction, reflecting dynamic market conditions.
Key Developments and Operational Highlights
- Qifu Technology announced a new $450 million share repurchase program for 2025, highlighting its commitment to shareholder value.
- The company's platform connected with 162 financial institutional partners and served 254.3 million consumers by September 2024, up 11.6% year-over-year.
- The 90-day delinquency rate declined to 2.72%, signaling improved credit quality.
Executive Comments
Mr. Haisheng Wu, CEO and Director of Qifu Technology, expressed satisfaction with the results, noting increased user activity and improved risk metrics despite macroeconomic challenges. The company strategically enhanced its user acquisition methods and strengthened institutional partnerships to reduce funding costs.
Mr. Alex Xu, CFO, emphasized Qifu's robust liquidity position with a cash reserve of $1.39 billion and reiterated the ongoing execution of their current share repurchase plan.
Shareholder Returns and Forward Guidance
- Qifu concluded its US$350 million share repurchase program and served an additional $450 million plan for 2025, underpinning sustainable shareholder returns.
- The company did not announce any immediate dividend issuance.
Business Outlook
Qifu Technology anticipates net income between RMB1.75 billion and RMB1.85 billion for Q4 2024, suggesting a steady year-over-year growth trajectory. The company maintains a prudent outlook owing to prevailing economic uncertainties.
Stock Market Reaction
The company's stock experienced a modest increase of 0.29% following the release of the earnings report, reflecting investor optimism in Qifu's strategic direction.
In summary, Qifu Technology delivered a robust set of earnings for the third quarter of 2024, bolstered by strong segment performance and strategic initiatives that position it well for future growth amid economic headwinds.
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