Pinduoduo (NASDAQ: PDD) reported Q2 EPS of ($0.01), $0.19 better than the analyst estimate of ($0.20). Revenue for the quarter came in at $1.73 billion versus the consensus estimate of $1.75 billion.

Second Quarter 2020 Highlights

• GMV1 in the twelve-month period ended June 30, 2020 was RMB1,268.7 billion (US$2179.6 billion), an increase of 79% from RMB709.1 billion in the twelve-month period ended June 30, 2019.
• Total revenues in the quarter were RMB12,193.3 million (US$1,725.9 million), an increase of 67% from RMB7,290.0 million in the same quarter of 2019.
• Average monthly active users3 in the quarter were 568.8 million, an increase of 55% from 366.0 million in the same quarter of 2019.
• Active buyers4 in the twelve-month period ended June 30, 2020 were 683.2 million, an increase of 41% from 483.2 million in the twelve-month period ended June 30, 2019.
• Annual spending per active buyer5 in the twelve-month period ended June 30, 2020 was RMB1,857.0 (US$262.8), an increase of 27% from RMB1,467.5 in the twelve-month period ended June 30, 2019.

“In the second quarter of 2020 we continued to devote resources to support economic recovery across China, and we witnessed great resilience amongst our merchant community,” said Mr. Lei Chen, Chief Executive Officer of Pinduoduo. “We also continued our investments in user engagement and expanded our promotional offerings to cover more household necessities and agriculture products based on user demand. Our users’ increasing recognition of Pinduoduo’s value proposition contributed to the user base growth and user activities on our platform.”

“For the quarter ended June 30, 2020, our total revenues increased by 67% year-over-year to RMB12,193.3 million, driven primarily by growth in our online marketing services revenues. We observed healthy recovery in advertising demand from our merchants during the quarter,” commented Mr. Tony Ma, Vice President of Finance. “In addition to merchants deferring their marketing spend to the June quarter, we would attribute such increase to better returns as a result of higher user engagement on our platform and more compelling advertising product offerings.”

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