RLX Earnings Prediction
The chart below shows how RLX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RLX sees a +3.56% change in stock price 10 days leading up to the earnings, and a +0.28% change 10 days following the report. On the earnings day itself, the stock moves by -3.45%. This data can give you a slight idea of what to expect for the next quarter's release.
RLX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
679.36M
70.43%
21.62%
Gross Margin
30.32%
0.70%
7.29%
Operating Margin
-1.57%
-81.79%
-73.70%
Net Margin
24.93%
-43.74%
3.19%
EPS
0.13
0.00%
18.18%
No Data Available
RLX Earnings Analysis
RLX Technology Inc. American Depositary Shares, each representing the right to receive one (1) Class Corporation (RLX.N) Earnings Conference Call
Positive
Net Revenue Increase: Net revenues grew to RMB 756 million in the third quarter of 2024, up 52% year-over-year from RMB 499 million and 21% quarter-over-quarter from RMB 627 million.
Sequential Business Growth: Both our China and non-China businesses showed sequential growth this quarter.
Gross Profit Margin Improvement: Our overall gross profit margin improved to 27.2% in the third quarter of 2024, marking a 3.2 percentage points increase year-over-year.
Non-GAAP Net Income Growth: Our non-GAAP net income for the third quarter of 2024 increased by 30% year-over-year to RMB 262 million.
Dividend Announcement: We are pleased to announce our second cash dividend since our IPO, reaffirming our commitment to delivering value to our shareholders.
Negative
Operating Loss Reported: The company reported an operating loss of RMB 11 million this quarter, indicating ongoing financial challenges.
Revenue Increase with Challenges: Despite a 52% year-over-year increase in net revenues to RMB 756 million, the company still faces significant operational hurdles.
Inventory Management Efficiency: Inventory turnover days decreased sharply to just 16 days in Q3 2024, down from over 100 days in Q1 2023, suggesting potential inefficiencies in inventory management.
Negative Cash Conversion Cycle: The company is experiencing a negative cash conversion cycle exceeding one month, which could impact liquidity and operational flexibility.
Cost Management Challenges: Operating expenses are expected to grow at a slower pace than top-line growth, indicating potential cost management issues.
RLX FAQs
How does RLX typically perform around its earnings report dates?
Is RLX Technology Inc. (RLX) Q3 2024 Earnings Call Summary positive or negative?
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RLX Earning Call Sentiment
RLX Technology Inc. (RLX) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
RLX.N
0%Positive
The earnings call shows strong financial performance with a 52% revenue increase, improved gross margins, and enhanced cash flow. The company is expanding internationally and maintaining profitability despite regulatory and competitive challenges. Shareholder returns are supported by dividends and repurchase programs. Though there are regulatory risks, the overall outlook is optimistic with continued growth and strategic plans for 2025. Given the market cap of approximately $2.9 billion, the positive sentiment is expected to result in a stock price increase of 2% to 8% over the next two weeks.
