- Chinese agriculture and interactive commerce platform Pinduoduo Inc (NASDAQ:PDD) reported second-quarter FY21 revenue growth of 89% year-on-year to $3.6 billion, missing the analyst consensus of $4.2 billion.
- Pinduoduo's average monthly active users (MAU) increased 30% Y/Y to 738.5 million. Active buyers in the twelve months ended June 30 rose 24% Y/Y to 849.9 million.
- Segments: Revenues from online marketing services and others rose 64% Y/Y to $2.8 billion, transaction services jumped 164% Y/Y to $465.8 million, merchandise sales were flat at $303.3 million.
- Pinduoduo posted a positive non-GAAP operating profit of $493.3 million. The revenues, excluding merchandise sales, increased 73% Y/Y.
- Non-GAAP earnings per ADS of $0.44 beat the consensus loss of $(0.15).
- Pinduoduo generated $1.1 billion in operating cash flow and held $14.3 billion in cash and equivalents.
- Pinduoduo announced the "10 Billion Agriculture Initiative" for the agricultural sector and rural areas.
- Peers Amazon.com Inc (NASDAQ:AMZN) and Alibaba Group Holding Ltd (NYSE:BABA) also missed the revenue consensus as e-commerce growth weakened. Domestic regulatory crackdown further hampered the Chinese tech stocks.
- Price Action: PDD shares traded higher by 11.60% at $90.50 in the premarket session on the last check Tuesday.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments