BEIJING - Yiren Digital Ltd. (NYSE: NYSE:YRD), a leading AI-powered financial and lifestyle services platform in China, reported a robust fourth quarter with earnings per share (EPS) of RMB6.50, surpassing analyst expectations. The company's revenue for the quarter was RMB1.27 billion, indicating a significant year-over-year (YoY) increase.
The company's financial performance was driven by a strong demand for its small revolving loan products, which contributed to a 17.1% rise in total net revenue compared to the same quarter last year. This growth reflects the company's ability to adapt and thrive amid global economic uncertainties, as highlighted by Mr. Ning Tang, Chairman and Chief Executive Officer, who emphasized the strengthening and resilience of the business throughout 2023.
Yiren Digital's stock reacted positively to the earnings report, with shares up 2.04% in premarket trading, signaling investor confidence in the company's trajectory. The financial services business of Yiren Digital saw a significant increase in revenue, rising 22.2% YoY, while the insurance brokerage business experienced a decline of 50.7% due to regulatory changes affecting life insurance products.
The company's focus on AI-driven solutions and strategic partnerships has been a central theme in its growth strategy, as noted by Ms. Na Mei, Chief Financial Officer. She expressed satisfaction with the company's double-digit annual growth in both top-line revenue and bottom line, which exceeded their previous guidance.
As Yiren Digital looks ahead, it anticipates a full year of 2024 revenue to be between RMB5.8 billion to RMB6.8 billion, with a healthy net profit margin. This guidance reflects the company's preliminary assessment of business and market conditions and is subject to change.
In line with the recent SEC rules on cybersecurity risk management, Yiren Digital has proactively adopted a Cybersecurity Incident Response Policy, further demonstrating its commitment to exceeding regulatory standards and maintaining stakeholder trust.
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