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Dec 31, 2024
RLX Q4 2024 Earnings Report
RLX Technology reported revenue growth but lower profitability in Q4 2024.
Key Takeaways
RLX Technology reported Q4 2024 revenues of $111.4 million, a significant YoY increase of 56.3%, driven by international expansion. However, net income declined 41.0% YoY to $17.5 million due to increased tax expenses and operating costs. Non-GAAP net income fell 42.0% to $34.5 million, and operating loss improved to $1.6 million compared to a $19.2 million loss a year ago.
Q4 revenue grew 56.3% YoY to $111.4 million.
Net income declined 41.0% YoY to $17.5 million.
Adjusted EPS was $0.026, down from $0.325 a year ago.
Free cash flow increased to $68.1 million in Q4.
RLX
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RLX Revenue by Segment
RLX Revenue by Geographic Location
Forward Guidance
RLX Technology anticipates further growth in international markets but remains cautious about regulatory risks and cost pressures.
Positive Outlook
- Strong revenue growth driven by international expansion.
- Higher gross margin due to improved cost efficiency.
- Continued investment in product innovation and market development.
- Improvement in operating loss compared to the previous year.
- Healthy cash reserves of $2.17 billion support future initiatives.
Challenges Ahead
- Declining profitability despite revenue growth.
- Lower non-GAAP net income due to higher operating costs.
- Uncertainty around regulatory policies in key markets.
- Higher tax expenses impacted net earnings.
- Increased R&D and branding expenses reducing short-term margins.