Pinduoduo (PDD) Misses Q3 EPS by 20c, Revenues Miss

Pinduoduo (NASDAQ: PDD) reported Q3 EPS of ($0.28), $0.20 worse than the analyst estimate of ($0.08). Revenue for the quarter came in at $1.05 billion versus the consensus estimate of $1.06 billion.

Third Quarter 2019 Highlights

• GMV1 in the twelve-month period ended September 30, 2019 was RMB840.2 billion (US$2117.5 billion), an increase of 144% from RMB344.8 billion in the twelve-month period ended September 30, 2018.
• Total revenues in the quarter were RMB7,513.9 million (US$1,051.2 million), an increase of 123% from RMB3,372.4 million in the same quarter of 2018.
• Average monthly active users3 in the quarter were 429.6 million, an increase of 85% from 231.7 million in the same quarter of 2018.
• Active buyers4 in the twelve-month period ended September 30, 2019 were 536.3 million, an increase of 39% from 385.5 million in the twelve-month period ended September 30, 2018.
• Annual spending per active buyer5 in the twelve-month period ended September 30, 2019 was RMB1,566.7 (US$219.2), an increase of 75% from RMB894.4 in the twelve-month period ended September 30, 2018.

"We celebrated our fourth anniversary in early October with an annual active buyer base exceeding half a billion for the twelve-month period ended September 30, 2019," said Mr. Zheng Huang, Chairman and Chief Executive Officer of Pinduoduo. "We continued to invest in our users throughout the third quarter, and stepped our marketing up a notch from the second half of September for the launch of our anniversary sale. This has added to our steady momentum of user growth as our average monthly active users grew by 64 million from the prior quarter to reach 430 million. Coupled with greater user engagement and frequency of visit, annual spending per active buyer has grown 75% year-over-year, driving our last-twelve-month GMV up 144% to reach RMB840.2 billion. We will work even harder to deliver a consistently improving user experience and build up our users’ trust and familiarity with our platform.”

"For the quarter ended September 30, 2019, our total revenues increased by 123% year-over-year to RMB7,513.9 million, as merchant demand for our online marketing services continued to grow," added Mr. David Liu, Vice President of Strategy. “While we continue to invest in sales and marketing, we also maintain a healthy cash position, with positive operating cashflows and over RMB40.3 billion in cash, cash equivalents and short-term investments. This puts us in a good position to make the necessary investments for our long-term growth.”

For earnings history and earnings-related data on Pinduoduo (PDD) click here.

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