JD.com Q4 Revenue Tops Estimates, Up 13%

Core Insights - JD.com reported strong financial performance in Q4 2024, with adjusted net income per American depositary share rising to $1.02, surpassing analysts' expectations of $0.87 [2] - Revenue reached RMB347 billion ($47.5 billion), marking a 13.4% year-over-year increase and exceeding the forecast of RMB330.66 billion ($46.1 billion) [2][4] Financial Performance - Adjusted EPS for Q4 2024 was $1.02, a 44% increase from $0.71 in Q4 2023 [4] - Revenue for Q4 2024 was $47.5 billion, up from $41.9 billion in Q4 2023, reflecting a 13.4% growth [4] - Adjusted net income rose to $1.5 billion, a 25% increase from $1.2 billion in the previous year [4] - Free cash flow improved significantly to $3.2 billion, up 78% from $1.8 billion in Q4 2023 [4] Business Overview - JD.com operates a comprehensive e-commerce platform in China, focusing on product diversification to capture a wide market segment [5] - The company is enhancing supply chain efficiency and integrating new technologies to maintain its competitive edge [5][6] Operational Highlights - JD Retail segment revenue increased by 14.7% to RMB307.1 billion, driven by recovery across multiple categories [7] - JD Logistics revenue grew by 10.4% to RMB52.1 billion, supported by promotional activities and improved services [7] - Income from operations reached $1.2 billion, up from $200 million the previous year, with operating margins improving to 3% from 2.5% [8] Marketing and Strategic Initiatives - Marketing expenses rose by 28.4% year-over-year to RMB16.6 billion ($2.3 billion), reflecting efforts to enhance consumer engagement [8] - The company announced a share buyback plan, repurchasing shares worth $3.6 billion in 2024 and planning to buy back up to $5 billion over the next 36 months [11] Future Outlook - Management remains optimistic about ongoing consumption recovery and is focused on digital transformation to support long-term growth [12] - The company aims to stabilize marketing expenses while enhancing logistics capabilities and strengthening its omnichannel presence [13]