UPDATE: Pinduoduo (PDD) Tops Q2 EPS by 15c, Revenues Beat

August 21, 2019 5:47 AM EDT

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(Updated - August 21, 2019 5:47 AM EDT)

Pinduoduo (NASDAQ: PDD) reported Q2 EPS of ($0.04), $0.15 better than the analyst estimate of ($0.19). Revenue for the quarter came in at $1.06 billion versus the consensus estimate of $878.68 million.

  • Total revenues were RMB7,290.0 million (US$1,061.9 million), an increase of 169% from RMB2,709.0 million in the same quarter of 2018. The increase was primarily due to an increase in revenues from online marketing services.
  • Total costs of revenues were RMB1,594.7 million (US$232.3 million), an increase of 311% from RMB387.8 million in the same quarter of 2018. The increase was mainly due to higher costs for cloud services, call center and merchant support services.
  • Total operating expenses were RMB7,185.7 million (US$1,046.7 million), compared with RMB8,957.4 million in the same quarter of 2018.
  • Operating loss was RMB1,490.4 million (US$217.1 million), compared with operating loss of RMB6,636.2 million in the same quarter of 2018. Non-GAAP operating loss6 was RMB898.4 million (US$130.9 million), compared with RMB815.7 million in the same quarter of 2018.
  • Net loss attributable to ordinary shareholders was RMB1,003.3 million (US$146.1 million), compared with net loss of RMB6,493.9 million in the same quarter of 2018. Non-GAAP net loss attributable to ordinary shareholders7 was RMB411.3 million (US$59.9 million), compared with non-GAAP net loss attributable to ordinary shareholders of RMB673.4 million in the same quarter of 2018.
  • Basic and diluted net loss per ADS were RMB0.88 (US$0.12), compared with net loss per ADS of RMB13.40 in the same quarter of 2018. Non-GAAP basic and diluted net loss per ADS were RMB0.36 (US$0.04), compared with non-GAAP basic and diluted net loss per ADS of RMB1.40 in the same quarter of 2018.
  • Net cash provided by operating activities was RMB4,148.0 million (US$604.2 million), compared with RMB1,087.6 million in the same quarter of 2018, primarily due to an increase in online marketing services revenues.
  • Cash, cash equivalents and restricted cash were RMB40.7 billion (US$5.9 billion) as of June 30, 2019, compared with RMB30.5 billion as of December 31, 2018.

Second Quarter 2019 Highlights

  • GMV1 in the twelve-month period ended June 30, 2019 was RMB709.1 billion (US$2103.3 billion), an increase of 171% from RMB262.1 billion in the twelve-month period ended June 30, 2018.
  • Total revenues in the quarter were RMB7,290.0 million (US$1,061.9 million), an increase of 169% from RMB2,709.0 million in the same quarter of 2018.
  • Average monthly active users3 in the quarter were 366.0 million, an increase of 88% from 195.0 million in the same quarter of 2018.
  • Active buyers4 in the twelve-month period ended June 30, 2019 were 483.2 million, an increase of 41% from 343.6 million in the twelve-month period ended June 30, 2018.
  • Annual spending per active buyer5 in the twelve-month period ended June 30, 2019 was RMB1,467.5 (US$213.8), an increase of 92% from RMB762.8 in the twelve-month period ended June 30, 2018.

“We are pleased with our results in the second quarter of 2019,” said Mr. Zheng Huang, Chairman and Chief Executive Officer of Pinduoduo. “Putting users’ interests first, we worked with our merchants to provide our users with a targeted, compelling value proposition on their most coveted items. This unwavering focus on our users contributed to the significant increase in our annual active buyer base and annual spending per active buyer, which together led to the 171% increase in our last-twelve-month GMV to RMB709.1 billion.”

“For the quarter ended June 30, 2019, our total revenues increased by 169% year-over-year to RMB7,290.0 million, primarily as a result of the robust growth in our online marketing services revenues,” added Mr. David Liu, Vice President of Strategy. “In comparison, our sales and marketing expenses for the same period grew by 105% year-over-year to RMB6,103.7 million, or 84% of our total revenues. Our investments in growing user engagement are showing signs of success. As users engage more on our platform, merchants also see improved marketing returns from greater exposure and conversion. We plan to continue investing strategically in our users and merchants in 2019 to drive further engagement.”

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



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