Meituan’s total revenues increased by 49.5% year-over-year to RMB 97.5 billion in 2019 from RMB 65.2 billion in 2018. Total gross profit increased by 114.0% year-over-year to RMB32.3 billion from RMB15.1 billion in 2018.
Its operating profit turned to positive RMB 2.7 billion from negative RMB 11.1 billion in 2018. Adjusted EBITDA and adjusted net profit were RMB7.3 billion and RMB4.7 billion in 2019, respectively.
Meituan’s operating cash flow turned to positive RMB5.6 billion in 2019 from negative RMB9.2 billion in 2018.
Meituan had cash and cash equivalents of RMB13.4 billion and short-term investments of RMB 49.4 billion as of December 31, 2019, compared to the balance of RMB 17.0 billion and RMB 41.8 billion, respectively, as of December 31, 2018.
Meituan Food Delivery
In 2019, Gross Transaction Value (GTV) of Meituan’s food delivery business increased by 38.9% to RMB392.7 billion.
The daily average number of food delivery transactions increased by 36.4% to 23.9 million. The average value per order of its food delivery business increased by 1.8% year-over-year.
Monetization Rate of its food delivery business increased to 14.0% from 13.5% in 2018. As a result, revenues increased by 43.8% year-over-year to RMB54.8 billion in 2019.
Gross profit from its food delivery business increased by 94.2% to RMB10.2 billion in 2019 while gross margin expanded to 18.7% from 13.8% year-over-year.
In Q4 2019, total GTV of Meituan food delivery business increased by 39.9% year-over-year to RMB112.1 billion and the daily average number of food delivery transactions increased by 36.7% year-over-year to 27.2 million.
The average value per order of the food delivery business increased by 2.3% year-over-year to RMB44.8, and Monetization Rate of the food delivery business increased to 14.0%.
Revenues from food delivery increased by 42.8% year-over-year to RMB15.7 billion in the fourth quarter of 2019.
Gross profit from the food delivery business increased by 89.4% year-over-year to RMB2.8 billion for Q4 2019 while gross margin expanded to 17.7% from 13.4% year-over-year.
Meituan food delivery business in lower-tier cities made a larger contribution and exhibited higher growth in terms of GTV in full-year 2019 as well as the fourth quarter of 2019.
The successful rollout of its Food Delivery Membership Program in 2019 further enabled Meituan to improve the order frequency and loyalty of these repeat consumers. Moreover, its Food Delivery Membership Program effectively boosted consumer impulse consumptions during off-peak hours.
Online marketing revenues of food delivery business grew robustly, increasing by 118.6% year-over-year. Moreover, Meituan continued to improve its marketplace products to provide restaurants with more useful tools for enhancing their operating efficiency.
For example, Meituan introduced an intelligent diagnosis tool for restaurant merchants on their product quality and guidance on product mix optimization.
Meituan released four targeted solutions in Q4 2019, including digital business solutions, specialized production solutions, diversified marketing solutions, and intelligent service solutions. Through these solutions, its goal is to help millions of merchants build next-generation stores, identify and resolve online operation pain points, achieve seamless integration between online and offline operations, and enhance service and product quality.
In-store, hotel & travel business
GTV of its in-store, hotel & travel businesses grew by 25.6% year-over-year to RMB222.1 billion in 2019. Revenues from its in-store, hotel & travel businesses increased by 40.6% year-over-year to RMB22.3 billion in 2019.
Gross profit of its in-store, hotel & travel businesses increased by 40.1% year-over-year to RMB19.7 billion in 2019, while gross margin remained relatively flat year-over-year.
GTV growth of its in-store, hotel & travel businesses continued to accelerate for Q4 2019, growing by 35.3% year-over-year to RMB60.4 billion. Revenues from its in-store, hotel & travel businesses increased by 38.4% year-over-year to RMB6.4 billion for Q4 2019.
Gross profit from its in-store, hotel & travel businesses increased to RMB5.6 billion for Q4 2019, while gross margin increased to 88.8% from 86.8% year-over-year.
For its in-store business, the year-over-year growth rate of commission revenues from transaction-based products re-accelerated at the beginning of the second half of 2019 and continued to accelerate during Q4 2019.
Online marketing revenues also maintained strong growth momentum throughout the year, with around 55% increase year-over-year in 2019.
Meituan continued to advance its operational capabilities through the execution of numerous promotional activities and campaigns in 2019.
These promotional activities and campaigns included, to name a few, “Super Brand Food Festival”, “2019 Parent-Child Fantasy Day”, “Chinese Valentine’s Day Special Campaign”, “Double 11 Carnival”, and “Double 12 Carnival”.
As of December 31, 2019, Meituan had accumulated over 7.7 billion user-generated reviews on its platform for millions of merchants in China.
The number of domestic room nights consumed on Meituan platform in 2019 increased by 38.2% year-over-year to 392.4 million.
The growth of domestic room nights in the fourth quarter of 2019 further accelerated and increased by 47.9% year-over-year, reaching 110 million quarterly room nights for two consecutive quarters.
In 2019, Meituan further solidified its leading position in lower-tier cities and low-star hotel segment because of its increased efforts on exploring offline traffic conversion and new traffic channels.
Meanwhile, its high-star hotel booking business maintained healthy growth in 2019. Its “Hotel + X’ strategy has enabled Meituan to develop deeper relationships with an increasing number of high-star hotel groups by helping them increase their non-lodging revenues streams.