Full Truck Alliance Stock Up 30% This Week on End of Probe, Q1 Results

As the cybersecurity probe is concluded, the Chinese logistics provider is expected to see business growth improve further.
Jun. 08, 2022 15:38
Full Truck Alliance Stock Up 30% This Week on End of Probe, Q1 Results

(CapitalWatch, June 8, New York) Chinese digital freight brokerage Full Truck Alliance Co. Ltd. (NYSE: YMM) surged an additional 12% early Wednesday after posting Q1 financials showing adjusted profitability.

The company said in a statement Wednesday morning that it generated $210.2 million revenues in the first quarter, up nearly 54% year-over-year. Non-GAAP adjusted net income rose 68% to $29.9 million, according to the report.

For Full Truck Alliance, this marked yet another day of strong gains since the end of the probe into the company by the Chinese authorities. About a year ago, after the $1.6 billion IPO of Full Truck Alliance, China's cybersecurity watchdog launched an investigation into the company that had stalled both its business growth and investor interest. Now, as The Wall Street Journal reported on Monday, the regulators are finally preparing to close the case.

Along with Full Truck Alliance, China also concluded the probes into ride-hailing giant Didi Global (NYSE: DIDI) and human resources platform Kanzhun Ltd. (Nasdaq: BZ). This meant that all three could once again resume full operations after a lengthy suspension of their apps. Both BZ and DIDI shares are also up significantly over the past three days, trading at 33% and 25% higher, respectively. Yet, so far, it appears that Didi will be the only of the trio to be forced to delist from Wall Street.

"Our continued progress attests to the solid foundation of our business and our ability to mitigate the impact of external events by improving our users' experience and enhancing our matching technology," said Peter Hui Zhang, founder, chairman, and CEO of Full Truck Alliance, in the statement today.

In the first quarter, Full Truck saw the strongest growth in the transaction commission segment, which tripled from a year ago to $40.7 million. The majority segment was freight brokerage services, which rose 48% to $104.5 million, according to the report.

For the second quarter, Full Truck expects to book 1.56 billion to 1.64 billion yuan in revenue, representing a year-over-year increase of up to 46%.