trending Market Intelligence /marketintelligence/en/news-insights/trending/MSSmHXFwM8VX8uE7nGnpJw2 content esgSubNav
In This List

Pinduoduo beats Q2 estimates as revenue more than doubles, losses pared YOY

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Pinduoduo beats Q2 estimates as revenue more than doubles, losses pared YOY

Pinduoduo Inc. stock jumped 16% on Aug. 21 as its net losses narrowed significantly year over year in the second quarter, beating market expectations, and quarterly revenue jumped 169%.

For the three months ended June 30, the Chinese e-commerce company recorded 411.3 million yuan in non-GAAP net loss attributable to ordinary shareholders, down from 673.4 million yuan in the year-ago period. The figure beat the S&P Global Market Intelligence consensus net loss estimate of 1.62 billion yuan.

The company saw non-GAAP diluted net loss per American depositary share shrink to 36 fen versus the net loss of 1.40 yuan per ADS in the same quarter a year ago.

Operating loss also dropped to 1.49 billion yuan from 6.64 billion yuan a year ago.

Revenue for the period soared to 7.29 billion yuan, more than double from the second-quarter 2018 revenue of 2.71 billion yuan. The jump in revenue was largely due to an increase in online marketing services revenue, which rose 173% year over year to 6.47 billion yuan from 2.37 billion yuan.

"[W]e 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-12-month [gross merchandise volume] to 709.1 billion yuan," Pinduoduo Chairman and CEO Zheng Huang said.

Pinduoduo's active buyers in the 12-month period ended June 30 jumped 41% year over year to 483.2 million from 343.6 million in the same period a year ago.

Annual spending per active buyer also increased during the same period by 92% to 1.47 billion yuan from 762.8 million yuan.

Separately, Pinduoduo said it appointed Anthony Kam Ping Leung to serve as an independent director, effective Aug. 21. Kam is a financial analyst and accountant from Singapore. His appointment expands Pinduoduo's board headcount to six members, of which four are independent directors.

Nasdaq-listed Pinduoduo's stock closed at $30.11, up 15.99%, on Aug. 21.

As of Aug. 21, US$1 was equivalent to 7.06 Chinese yuan.