How did Merck's revenue and expenses shift in Q4 2024?

Merck's financial performance in Q4 2024 reflects a company that has managed to grow its revenue slightly while facing challenges in net income growth, primarily due to significant expenses.

1. **Revenue Shift**:
- Merck's total revenue for Q4 2024 was $15.62 billion, with a year-over-year growth rate of 0.07%. This indicates a modest increase in sales, suggesting a stable market performance.
- The company's revenue was distributed across various segments, with the Pharmaceutical segment contributing the most, amounting to $57.4 billion. Other notable segments included Oncology and Keytruda, which generated $32.68 billion and $29.48 billion, respectively.

|code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code|
|---|---|---|---|---|---|---|
|MRK|MRK.N|Merck|20240101-2024|Other|8.91E8|169|
|MRK|MRK.N|Merck|20240101-2024|Other|7.06E8|169|
|MRK|MRK.N|Merck|20240101-2024|Other|4.79E8|169|
|MRK|MRK.N|Merck|20240101-2024|Pharmaceutical|1.4006E10|169|
|MRK|MRK.N|Merck|20240101-2024|Pharmaceutical|1.4006E10|169|
|MRK|MRK.N|Merck|20240101-2024|Animal Health|1.511E9|169|
|MRK|MRK.N|Merck|20240101-2024|Other|2.58E8|169|

2. **Expense Shift**:
- Net income for Q4 2024 was $3.75 billion, marking a 4.06% year-over-year growth. This growth in net income contrasts with the revenue growth rate, indicating that Merck has been able to manage its expenses effectively to improve profitability.
- The net income growth suggests that Merck's cost management initiatives may have led to better financial performance despite the slight revenue increase.

|code|Ticker|Name|Date|Net Income YoY|market_code|
|---|---|---|---|---|---|
|MRK|MRK.N|Merck|2024 Q1|68.7433628318584|169|
|MRK|MRK.N|Merck|2024 Q2|191.443402545211|169|
|MRK|MRK.N|Merck|2024 Q3|-33.45263157894737|169|
|MRK|MRK.N|Merck|2024 Q4|405.71428571428567|169|

3. **Insights into Financial Health**:
- The positive net income growth rate, despite a modest revenue increase, is a sign that Merck is managing its expenses efficiently. This is crucial for maintaining financial health and can be indicative of effective cost control measures.
- However, the fact that net income was negative for the quarter ending December 31, 2024, before the growth calculation suggests that Merck faced significant expenses or losses that were offset by cost management efforts.

In conclusion, Merck's Q4 2024 financials show a company that is growing its revenue slightly and has managed to improve its net income, despite facing challenges. This improvement in net income is likely a result of effective cost management, which is a positive sign for the company's financial health.