Earnings Report | Pinduoduo Soars 14% in Pre-market Trading! Second Quarter Performance Exceeds Market Expectations Across the Board

On Tuesday, Pinduoduo released its Q2 earnings report.

Pinduoduo's Q2 revenue was 52.28 billion yuan, surpassing market expectations of 43.679 billion yuan, with a year-on-year growth of 66%. Net profit reached 13.1 billion yuan, a 47% increase compared to the same period last year, exceeding market expectations of 8.7 billion yuan.

In pre-market trading, Pinduoduo surged over 14%.

Executive Remarks

Pinduoduo stated, "In the most recent quarter, we have seen a positive shift in consumer confidence, leading to increased demand in various product categories."

"Looking ahead, we will continue to invest with determination and patience to execute our high-quality development strategy."

Q2 Financial Indicators

Pinduoduo's Q2 revenue reached 52.807 billion yuan (equivalent to 17.2098 billion US dollars), a 66% year-on-year growth. This growth was mainly driven by increased revenue from online marketing services and transaction services.

Operating profit for Q2 was 1.27188 billion yuan (equivalent to 1.754 billion US dollars), a 46% year-on-year increase.

Net profit attributable to ordinary shareholders for Q2 was 13.1081 billion yuan (equivalent to 1.8077 billion US dollars), a 47% year-on-year growth.

Non-GAAP net profit for Q2 was 15.2694 billion yuan (equivalent to 2.1057 billion US dollars), a 42% year-on-year increase.

Total operating costs for Q2 were 18.6898 billion yuan (equivalent to 2.5774 billion US dollars), a 135% year-on-year growth, mainly due to increased fulfillment and payment processing fees.

Sales and marketing expenses amounted to 17.5422 billion yuan (equivalent to 2.4192 billion US dollars), a 55% year-on-year increase.

Research and development expenses were 2.734 billion yuan (equivalent to 0.377 billion US dollars), compared to 2.6114 billion yuan in the same period last year.

Q2 Segment Data

Revenue from online marketing services and other income amounted to 37.9328 billion yuan (equivalent to 5.2312 billion US dollars), a 50% year-on-year growth.

Transaction services revenue was 14.3479 billion yuan (equivalent to 1.9787 billion US dollars), a 131% increase compared to the same period last year.