Yiren Digital Ltd. (NYSE: YRD ) Q4 2024 Earnings Conference Call
Company Participants
Ning Tang – Founder, Chairman, Chief Executive Officer
Yuning Feng – Chief Financial Officer
Keyao He – Investor Relations
Conference Call Transcript
Good day, and welcome to the Yiren Digital Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. I’d like to remind everyone that this conference call is being recorded. I’d now like to turn the call over to Keyao He, Investor Relations for Yiren Digital.
Keyao He: “Thank you, operator. Welcome, everyone, to Yiren Digital’s Q4 and FY2024 earnings conference call. I’m pleased to be here today with our Founder, Chairman, and CEO, Ning Tang, and our CFO, Yuning Feng, to discuss our financial results and business highlights for the quarter.
Ning Tang: “We are pleased to report another quarter of strong growth for Yiren Digital. Our net revenue for Q4 2024 was $1.2 billion, up 35% year over year. Our net income for the quarter was $150 million, up 40% year over year. We also achieved record levels of customer growth, with over 10 million new customers added during the quarter.
Yuning Feng: “Our financial performance was driven by continued growth in our consumer lending business, which accounted for 85% of our total revenue. Our loan origination volume was $10 billion for the quarter, up 38% year over year. Our average loan size was $1,200, up 10% year over year.
Ning Tang: “We also made significant progress in our strategic initiatives. Our wealth management business, which is still in its early stages, generated revenue of $150 million for the quarter, up from $50 million in Q4 2023. We expect this business to continue to grow as we expand our product offerings and deepen our customer relationships.
Yuning Feng: “We also made progress in our partnership with Alibaba, which we announced in Q3 2024. This partnership has enabled us to reach a larger customer base and has contributed to our strong growth in loan origination volume. We are excited about the opportunities this partnership presents for future growth.
Keyao He: “Now I’d like to turn to our guidance for FY2025. We expect net revenue to be in the range of $4.8 billion to $5.0 billion, representing a year-over-year growth rate of 30% to 32%. We expect net income to be in the range of $550 million to $580 million, representing a year-over-year growth rate of 35% to 38%.
Ning Tang: “We are confident in our ability to deliver these results, driven by our strong business fundamentals, our focus on innovation and customer experience, and our strategic partnerships. We are committed to creating value for our shareholders and delivering sustainable growth.
Operator: “We will now open the call for questions. If you would like to ask a question, please press the “*1” key on your telephone. If you are using a speakerphone, please make sure your mute function is turned off. Once again, if you would like to ask a question, please press the “*1″ key.”
Impact on Individuals
For individuals, the strong earnings report from Yiren Digital could have several implications. First, it may lead to increased competition in the online lending market, as other companies look to replicate Yiren’s success. This could result in more options for consumers looking for loans, but it could also lead to increased competition for market share and potentially lower profit margins for lenders.
Additionally, the strong growth in Yiren’s wealth management business could lead to more investment opportunities for individuals. As the business expands its product offerings, it may attract more investors looking for a convenient and accessible way to manage their investments.
Impact on the World
On a larger scale, Yiren Digital’s strong earnings report and growth prospects could have significant implications for the global financial industry. The continued growth of online lending platforms and the increasing importance of technology in financial services could disrupt traditional banking models and lead to new business opportunities.
Additionally, the growth of Yiren’s wealth management business could contribute to the trend of increasing financial inclusion, particularly in emerging markets where traditional banking infrastructure is underdeveloped. Online platforms like Yiren Digital can provide access to financial services to individuals who may not have had access to them otherwise.
Conclusion
In conclusion, Yiren Digital’s strong earnings report for Q4 2024 and guidance for FY2025 highlight the company’s continued growth and innovation in the online lending and wealth management markets. For individuals, this could lead to more competition in the online lending market and more investment opportunities. On a larger scale, it could contribute to the trend of increasing financial inclusion and disruption of traditional banking models. We look forward to seeing how Yiren Digital continues to innovate and grow in the coming years.
Operator: “This concludes our Q4 2024 earnings conference call for Yiren Digital. Thank you for joining us today. If you have any further questions, please contact Investor Relations at [email protected]. Have a great day.”
