Pinduoduo Announces Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results

March 17, 2021 6:40 AM EDT

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SHANGHAI, China, March 17, 2021 (GLOBE NEWSWIRE) -- Pinduoduo Inc. (“Pinduoduo” or the “Company”) (NASDAQ: PDD), China’s largest agriculture and interactive commerce platform, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2020.

Fourth Quarter 2020 Highlights

  • GMV1 in the twelve-month period ended December 31, 2020 was RMB1,667.6 billion (US$2255.6 billion), an increase of 66% from RMB1,006.6 billion in the twelve-month period ended December 31, 2019.
  • Total revenues in the quarter were RMB26,547.7 million (US$4,068.6 million), an increase of 146% from RMB10,792.7 million in the same quarter of 2019.
  • Average monthly active users3 in the quarter were 719.9 million, an increase of 50% from 481.5 million in the same quarter of 2019.
  • Active buyers4 in the twelve-month period ended December 31, 2020 were 788.4 million, an increase of 35% from 585.2 million in the twelve-month period ended December 31, 2019.
  • Annual spending per active buyer5 in the twelve-month period ended December 31, 2020 was RMB 2,115.2 (US$324.2), an increase of 23% from RMB 1,720.1 in the twelve-month period ended December 31, 2019.

“We saw six years ago that mobile is the only way to go. Therefore, we are the only major consumer internet company in the world that is mobile only. The mobile internet fundamentally transforms the way humans interact with each other,” said Mr. Lei Chen, Chairman and Chief Executive Officer of Pinduoduo.

“This revolution is tearing down the walls between the physical and digital worlds. Being a mobile-only product in this new age, we are well-placed to benefit from the opportunities thrown up by each behavioral change.”

“One such change sweeping the world is agriculture and grocery. Pinduoduo started with agricultural products, with the vision of offering consumers the ‘Costco + Disney’ experience of more savings and more fun. We are now the largest agriculture platform in China and we hope that Pinduoduo can one day become the largest grocer in the world,” Mr. Chen continued.

“Agriculture is a strategic priority for us, and we will continue to invest in technology and operations across the agricultural value chain to optimize food production, distribution and consumption,” added Mr. David Liu, Vice President of Strategy. “Reducing inefficiencies in the supply chain will lower structural costs and make groceries more affordable for everyone.”

“We continued to deliver strong results in the fourth quarter and generate positive cash flow from operations,” said Mr. Tony Ma, Vice President of Finance. “Our total revenues for fiscal year 2020 increased 97% from the prior year, and excluding contribution from merchandise sales, our total revenues grew 78%.”

Fourth Quarter 2020 Unaudited Financial Results

Total revenues were RMB26,547.7 million (US$4,068.6 million), an increase of 146% from RMB10,792.7 million in the same quarter of 2019. The increase was primarily due to an increase in revenues from online marketing services and contribution from merchandise sales.

  • Revenues from online marketing services and others were RMB18,922.0 million (US$2,899.9 million), an increase of 95% from RMB9,686.7 million in the same quarter of 2019.
  • Revenues from transaction services were RMB2,267.9 million (US$347.6 million), an increase of 105% from RMB1,106.0 million in the same quarter of 2019.
  • Revenues from merchandise sales were RMB5,357.8 million (US$821.1 million), an increase of RMB5,357.8 million from nil in the same quarter of 2019.

Total costs of revenues were RMB11,526.1 million (US$1,766.5 million), an increase of 466% from RMB2,037.4 million in the same quarter of 2019. The increase was mainly due to costs and expenses attributable to merchandise sales, higher cost of payment processing fees, cloud services fees, merchant support services, and delivery and storage fees.

Total operating expenses were RMB17,069.4 million (US$2,616.0 million), compared with RMB10,890.6 million in the same quarter of 2019.

  • Sales and marketing expenses were RMB14,712.5 million (US$2,254.8 million), an increase of 59% from RMB9,272.5 million in the same quarter of 2019, mainly due to an increase in advertising expenses and promotion and coupon expenses.
  • General and administrative expenses were RMB405.6 million (US$62.2 million), an increase of 17% from RMB345.7 million in the same quarter of 2019, primarily due to an increase in professional and outsourcing services.
  • Research and development expenses were RMB1,951.3 million (US$299.0 million), an increase of 53% from RMB1,272.4 million in the same quarter of 2019. The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel and an increase in R&D-related cloud services expenses.

Operating loss was RMB2,047.8 million (US$313.8 million), compared with operating loss of RMB2,135.3 million in the same quarter of 2019. Non-GAAP operating loss6 was RMB1,114.5 million (US$170.8 million), compared with operating loss of RMB1,336.6 million in the same quarter of 2019.

Net loss attributable to ordinary shareholders was RMB1,376.4 million (US$210.9 million), compared with RMB1,751.6 million in the same quarter of 2019. Non-GAAP net loss attributable to ordinary shareholders was RMB184.5 million (US$28.3 million), compared with RMB815.0 million in the same quarter of 2019.

Basic and diluted net loss per ADS were RMB1.13 (US$0.17), compared with RMB1.52 in the same quarter of 2019. Non-GAAP basic and diluted net loss per ADS were RMB0.15 (US$0.02), compared with RMB0.72 in the same quarter of 2019.

Net cash flow from operating activities was RMB14,946.6 million (US$2,290.7 million), compared with RMB9,598.0 million in the same quarter of 2019, primarily due to an increase in online marketing services revenues.

Cash, cash equivalents and short-term investments were RMB87.0 billion (US$13.3 billion) as of December 31, 2020, compared with RMB41.1 billion as of December 31, 2019.

Fiscal Year 2020 Financial Results

Total revenues were RMB59,491.9 million (US$9,117.5 million), representing an increase of 97% from RMB30,141.9 million in 2019. The increase was primarily due to an increase in revenues from online marketing services and contribution from merchandise sales.

  • Revenues from online marketing services and others were RMB47,953.8 million (US$7,349.2 million), representing an increase of 79% from RMB26,813.6 million in 2019.
  • Revenues from transaction services were RMB5,787.4 million (US$887.0 million), representing an increase of 74% from RMB3,328.2 million in 2019.
  • Revenues from merchandise sales were RMB5,750.7 million (US$881.3 million), an increase of RMB5,750.7 million from nil in 2019.

Total costs of revenues were RMB19,278.6 million (US$2,954.6 million), representing an increase of 204% from RMB6,338.8 million in 2019. The increase was mainly due to costs and expenses attributable to merchandise sales, higher cost of payment processing fees, cloud services fees, merchant support services, and delivery and storage fees.

Total operating expenses were RMB49,593.5 million (US$7,600.5 million), compared with RMB32,341.3 million in 2019.

  • Sales and marketing expenses were RMB41,194.6 million (US$6,313.3 million), an increase of 52% from RMB27,174.2 million in 2019, mainly due to an increase in advertising expenses and promotion and coupon expenses.
  • General and administrative expenses were RMB1,507.3 million (US$231.0 million), an increase of 16% from RMB1,296.7 million in 2019, primarily due to an increase in headcount.
  • Research and development expenses were RMB6,891.7 million (US$1,056.2 million), an increase of 78% from RMB3,870.4 million in 2019. The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel and an increase in R&D-related cloud services expenses.

Operating loss was RMB9,380.3 million (US$1,437.6 million), compared with operating loss of RMB8,538.2 million in 2019. Non-GAAP operating loss was RMB5,767.3 million (US$883.9 million), compared with RMB5,980.5 million in 2019.

Net loss attributable to ordinary shareholders was RMB7,179.7 million (US$1,100.3 million), compared with RMB6,967.6 million in 2019. Non-GAAP net loss attributable to ordinary shareholders was RMB2,965.0 million (US$454.4 million), compared with RMB4,265.8 million in 2019.

Basic and diluted net loss per ADS were RMB6.02 (US$0.92), compared with RMB6.04 in 2019. Non-GAAP basic and diluted net loss per ADS were RMB2.49 (US$0.38), compared with RMB3.68 in 2019.

Net cash provided by operating activities was RMB28,196.6 million (US$4,321.3 million), compared with RMB14,821.0 million in 2019, primarily due to an increase in online marketing services revenues.

Recent Development

As of February 28, 2021, US$711.9 million of the 0% convertible bond due in 2024 have been converted into newly issued ADSs.

Conference Call

The Company will host a conference call to discuss the earnings at 7:30 AM U.S. Eastern Time on Wednesday, March 17, 2021 (7:30 PM Beijing/Hong Kong Time on Wednesday, March 17, 2021).

Please pre-register to join this conference using the registration link below. Please dial in using the participant dial-in numbers, direct event passcode, PIN and unique registrant ID which would be provided to you upon registering.

Pre-register at: http://apac.directeventreg.com/registration/event/6892223

A telephone replay of the call will be available after the conclusion of the conference call until 8:59 AM Eastern Time on March 25, 2021.

Dial-in numbers for the replay are as follows:

International: +61-2-8199-0299 U.S.: +1-646-254-3697 Passcode: 6892223

A live and archived webcast of the conference call will be available at http://investor.pinduoduo.com/

_______________

1 “GMV” refers to the total value of all orders for products and services placed on the Pinduoduo mobile platform, regardless of whether the products and services are actually sold, delivered or returned. Buyers on the platform are not charged for shipping fees in addition to the listed price of merchandise. Hence, merchants may embed the shipping fees in the listed price. If embedded, then the shipping fees are included in GMV. As a prudential matter aimed at eliminating any influence on Pinduoduo’s GMV of irregular transactions, the Company excludes from its calculation of GMV transactions in certain product categories over certain amounts and transactions by buyers in certain product categories over a certain amount per day.2 This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.5250 to US$1.00, the noon buying rate in effect on December 31, 2020 as set forth in the H.10 Statistical Release of the Federal Reserve Board.3 “Monthly active users” refers to the number of user accounts that visited the Pinduoduo mobile app during a given month, which does not include those that accessed the platform through social networks and access points.4 “Active buyers” in a given period refers to the number of user accounts that placed one or more orders (i) on the Pinduoduo mobile app, and (ii) through social networks and access points in that period, regardless of whether the products and services are actually sold, delivered or returned.5 “Annual spending per active buyer” in a given period refers to the quotient of total GMV in that period divided by the number of active buyers in the same period.6 The Company’s non-GAAP financial measures exclude the Company’s non-GAAP financial measures exclude share-based compensation expenses, fair value change of long-term investments, and interest expenses related to the convertible bonds’ amortization to face value and gain on extinguishment. See “Reconciliation of Non-GAAP Measures to The Most Directly Comparable GAAP Measures” set forth at the end of this press release.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating loss and non-GAAP net loss attributable to ordinary shareholders, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s non-GAAP financial measures exclude share-based compensation expenses, fair value change of long-term investments, and interest expenses related to the convertible bonds’ amortization to face value and gain on extinguishment.

The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, fair value change of long-term investments, and interest expenses related to the convertible bonds’ amortization to face value and gain on extinguishment, which is a non-cash charge. The Company also believes that the non-GAAP financial measures could provide further information about the Company’s results of operations, and enhance the overall understanding of the Company’s past performance and future prospects.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. The Company’s non-GAAP financial measures do not reflect all items of income and expenses that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company’s financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to The Most Directly Comparable GAAP Measures” set forth at the end of this press release.

Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as Pinduoduo’s strategic and operational plans, contain forward-looking statements. Pinduoduo may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including but not limited to statements about Pinduoduo’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Pinduoduo’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and fourth-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of China’s e-commerce market; PRC governmental policies and regulations relating to Pinduoduo’s industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Pinduoduo’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Pinduoduo undertakes no obligation to update any forward-looking statement, except as required under applicable law.About Pinduoduo Inc.

Pinduoduo is a mobile-only marketplace that connects millions of agricultural producers with consumers across China. Pinduoduo aims to bring more businesses and people into the digital economy so that local communities can benefit from the increased productivity and convenience through new market opportunities.

For more information on Pinduoduo news and industry trends, please visit the content hub at https://stories.pinduoduo-global.com/.

PINDUODUO INC. CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”))

  As of 
  December 31, 2019 December 31, 2020 
   RMB  RMB  US$ 
     (Unaudited) 
      
ASSETS       
Current assets       
Cash and cash equivalents 5,768,186 22,421,189 3,436,198 
Restricted cash 27,577,671 52,422,447 8,034,091 
Receivables from online payment platforms 1,050,974 729,548 111,808 
Short-term investments 35,288,827 64,551,094 9,892,888 
Amounts due from related parties 2,365,528 4,240,069 649,819 
Prepayments and other current assets 950,277 5,159,531 790,733 
Total current assets  73,001,463 149,523,878  22,915,537  
        
Non-current assets       
Property, equipment and software, net 41,273 202,853 31,089 
Intangible asset 1,994,292 1,276,751 195,671 
Right-of-use assets 517,188 629,827 96,525 
Other non-current assets 503,120 7,275,305 1,114,989 
Total non-current assets 3,055,873 9,384,736  1,438,274  
        
Total Assets 76,057,336 158,908,614  24,353,811  
        

PINDUODUO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”))

  As of
  December 31, 2019 December 31, 2020
   RMB  RMB  US$
     (Unaudited)
     
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Current liabilities      
Amounts due to related parties 1,502,892 3,385,863 518,906 
Customer advances and deferred revenues 605,970 2,423,190 371,370 
Payable to merchants 29,926,488 53,833,981 8,250,419 
Accrued expenses and other liabilities 4,877,062 11,193,372 1,715,461 
Merchant deposits 7,840,912 10,926,319 1,674,532 
Short-term borrowings 898,748 1,866,316 286,025 
Lease liabilities 115,734 253,036 38,779 
Total current liabilities 45,767,806 83,882,077  12,855,492  
       
Non-current liabilities      
Convertible bonds 5,206,682 14,432,792 2,211,922 
Lease liabilities 428,593 414,939 63,592 
Other non-current liabilities 7,389 2,918 447 
Total non-current liabilities 5,642,664 14,850,649 2,275,961 
       
Total Liabilities 51,410,470 98,732,726  15,131,453  
       
       
Shareholders’ equity      
Ordinary shares 148 159 24 
Additional paid-in capital 41,493,949 86,698,660 13,287,151 
Accumulated other comprehensive income / (loss) 1,448,230 (1,047,728) (160,571) 
Accumulated deficits (18,295,461) (25,475,203) (3,904,246) 
Total Shareholders’ Equity 24,646,866 60,175,888  9,222,358  
Total Liabilities and Shareholders’ Equity 76,057,336 158,908,614  24,353,811 
       

PINDUODUO INC. CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Amounts in thousands of RMB and US$)

  For the three months ended December 31, For the year ended December 31,
  2019  2020  2019  2020 
  RMB RMB US$ RMB RMB US$
  (Unaudited) (Unaudited) (Unaudited)   (Unaudited) (Unaudited)
             
Revenues 10,792,726  26,547,709  4,068,615  30,141,886  59,491,865  9,117,527 
Costs of revenues (2,037,437) (11,526,124) (1,766,456) (6,338,778) (19,278,641) (2,954,581)
Gross profit 8,755,289  15,021,585  2,302,159  23,803,108  40,213,224  6,162,946 
             
Sales and marketing expenses (9,272,536) (14,712,526) (2,254,793) (27,174,249) (41,194,599) (6,313,349)
General and administrative expenses (345,682) (405,570) (62,156) (1,296,712) (1,507,297) (231,003)
Research and development expenses (1,272,375) (1,951,261) (299,044) (3,870,358) (6,891,653) (1,056,192)
Total operating expenses (10,890,593) (17,069,357) (2,615,993) (32,341,319) (49,593,549) (7,600,544)
             
Operating loss (2,135,304) (2,047,772) (313,834) (8,538,211) (9,380,325) (1,437,598)
             
Interest and investment income, net 472,540  671,395  102,896  1,541,825  2,455,366  376,301 
Interest expenses (139,708) (278,146) (42,628) (145,858) (757,336) (116,067)
Foreign exchange (loss) / gain (13,237) 149,006  22,836  63,179  225,197  34,513 
Other income, net 27,178  81,149  12,437  82,786  193,702  29,686 
Loss before income tax and share of results of equity investees  (1,788,531) (1,424,368) (218,293) (6,996,279) (7,263,396) (1,113,165)
Share of results of equity investees 36,894  48,012  7,358  28,676  83,654  12,821 
Income tax expenses -  -  -  -  -  - 
Net loss (1,751,637) (1,376,356) (210,935) (6,967,603) (7,179,742) (1,100,344)
                   

PINDUODUO INC.CONDENSED CONSOLIDATED STATEMENTS OF LOSS(Amounts in thousands of RMB and US$, except for per share data)

  For the three months ended December 31, For the year ended December 31,
  2019  2020  2019  2020 
   RMB  RMB  US$ RMB RMB US$
  (Unaudited) (Unaudited) (Unaudited)   (Unaudited) (Unaudited)
             
Net loss (1,751,637) (1,376,356) (210,935) (6,967,603) (7,179,742) (1,100,344)
Net loss attributable to ordinary shareholders (1,751,637) (1,376,356) (210,935) (6,967,603) (7,179,742) (1,100,344)
             
Loss per ordinary share:            
-Basic (0.38) (0.28) (0.04) (1.51) (1.51) (0.23)
-Diluted (0.38) (0.28) (0.04) (1.51) (1.51) (0.23)
             
Loss per ADS (4 ordinary shares equal 1 ADS):            
-Basic (1.52) (1.13) (0.17) (6.04) (6.02) (0.92)
-Diluted (1.52) (1.13) (0.17) (6.04) (6.02) (0.92)
             
Weighted average number of outstanding ordinary shares (in thousands):            
-Basic 4,649,996  4,854,597  4,854,597  4,627,278  4,768,343  4,768,343 
-Diluted 4,649,996  4,854,597  4,854,597  4,627,278  4,768,343  4,768,343 
                   

PINDUODUO INC.NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$)

  For the three months ended December 31, For the year ended December 31,
  2019 2020 2019 2020
   RMB  RMB  US$ RMB RMB US$
  (Unaudited) (Unaudited) (Unaudited)   (Unaudited) (Unaudited)
             
Revenues            
- Online marketing services and others 9,686,699 18,921,975 2,899,920 26,813,641 47,953,779 7,349,238
- Transaction services 1,106,027 2,267,885 347,569 3,328,245 5,787,415 886,960
- Merchandise sales - 5,357,849 821,126 - 5,750,671 881,329
Total 10,792,726 26,547,709 4,068,615 30,141,886 59,491,865 9,117,527
             

PINDUODUO INC.NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$)

  For the three months ended December 31, For the year ended December 31, 
  2019 2020 2019 2020
  RMB RMB US$ RMBRMB US$ 
  (Unaudited) (Unaudited) (Unaudited)   (Unaudited) (Unaudited) 
              
Share-based compensation costs included in:             
Costs of revenues 7,256 9,923 1,521 23,835 32,291 4,949 
Sales and marketing expenses 237,354 276,875 42,433 860,862 1,093,547 167,593 
General and administrative expenses 224,523 252,470 38,693 786,641 966,985 148,197 
Research and development expenses 329,539 393,962 60,377 886,368 1,520,220 232,984 
Total 798,672 933,230 143,024 2,557,706 3,613,043 553,723 
              

PINDUODUO INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$)

  For the three months ended December 31, For the year ended December 31,
  2019  2020  2019  2020
  RMB RMB US$ RMB RMB US$ 
  (Unaudited)  (Unaudited) (Unaudited)   (Unaudited) (Unaudited) 
              
Net cash flow generated from operating activities 9,598,013  14,946,569  2,290,662  14,820,976  28,196,627  4,321,323  
Net cash flow used in investing activities (11,461,872) (26,622,837) (4,080,128) (28,319,678) (38,357,901) (5,878,606) 
Net cash flow generated from financing activities 893,899  42,174,783  6,463,568  15,854,731  51,798,996  7,938,543  
Effect of exchange rate changes on cash, cash equivalents and restricted cash (50,260) (183,639) (28,144) 450,142  (139,943) (21,447) 
              
(Decrease) / Increase in cash, cash equivalents and restricted cash (1,020,220) 30,314,876  4,645,958  2,806,171  41,497,779  6,359,813  
Cash, cash equivalents and restricted cash at beginning of period / year 34,366,077  44,528,760   6,824,331   30,539,686  33,345,857  5,110,476  
              
Cash, cash equivalents and restricted cash at end of period / year 33,345,857  74,843,636  11,470,289  33,345,857  74,843,636  11,470,289  
                    

PINDUODUO INC.RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES(Amounts in thousands of RMB and US$, except for per share data)

  For the three months ended December 31, For the year ended December 31,
  2019  2020  2019  2020  
  RMB RMB US$ RMB RMB US$ 
  (Unaudited)  (Unaudited) (Unaudited)   (Unaudited) (Unaudited) 
              
Operating Loss (2,135,304) (2,047,772) (313,834) (8,538,211) (9,380,325) (1,437,598) 
Add: Share-based compensation 798,672  933,230  143,024  2,557,706  3,613,043  553,723  
Non-GAAP operating loss (1,336,632) (1,114,542) (170,810) (5,980,505) (5,767,282) (883,875) 
              
Net loss attributable to ordinary shareholders (1,751,637) (1,376,356) (210,935) (6,967,603) (7,179,742) (1,100,344) 
Add: Share-based compensation 798,672  933,230  143,024  2,557,706  3,613,043  553,723  
Add: Interest expense related to convertible bonds’ amortization to face value and gain on extinguishment, net 137,982  256,768  39,351  144,132  690,606  105,840  
Add / Less: Loss / (gain) from fair value change of long-term investments -  1,828  280  -  (88,928) (13,629) 
Non-GAAP net loss attributable to ordinary shareholders (814,983) (184,530) (28,280) (4,265,765) (2,965,021) (454,410) 
              
Weighted-average number of ordinary shares outstanding – basic and diluted (in thousands) 4,649,996  4,854,597  4,854,597  4,627,278  4,768,343  4,768,343  
              
Basic and diluted loss per ordinary share (0.38) (0.28) (0.04) (1.51) (1.51) (0.23) 
Add: Non-GAAP adjustments to gain per ordinary share 0.20  0.24  0.03  0.59  0.89  0.13  
Non-GAAP basic and diluted loss per share (0.18) (0.04) (0.01) (0.92) (0.62) (0.10) 
Non-GAAP basic and diluted loss per ADS (0.72) (0.15) (0.02) (3.68) (2.49) (0.38) 
                    
For investor and media inquiries, please contact:

Pinduoduo Inc.
investor@pinduoduo.com
internationalmedia@pinduoduo.com

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Source: Pinduoduo Inc.


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