Pinduoduo beats revenue estimates, and may benefit from the review agreement reached between China and the US

$PDD Holdings (PDD.US)$ reported quarterly revenue above Wall Street estimates, buoyed by a major shopping festival and price promotions.

Financial Report:

Pinduoduo’s total revenue stood at 31.44 billion yuan (US$4.55 billion) in the quarter to June 30, compared with estimates of 23.68 billion yuan.

Pinduoduo’s net income attributable to ordinary shareholders was 8.9 billion yuan during the quarter, compared with 2.41 billion yuan a year before. (Read more)

Promising signs

The Chinese ecommerce titan is set to overtake rivals $JD.com (JD.US)$ and $Alibaba (BABA.US)$ in terms of gross merchandise value (GMV) growth by 2024, according to a $Morgan Stanley (MS.US)$ report. Pinduoduo is also planning to make a cross-border foray into the US (read more), a market dominated by $Amazon (AMZN.US)$ .

Pinduoduo may benefit from a deal struck between Beijing and Washington last Friday to allow US regulators to vet accounting firms in China, potentially putting to rest a dispute that threatened to boot Chinese companies from US stock exchanges.

Peers JD and Alibaba will also potentially benefit from that deal. Both also beat expectations with quarterly earnings announced earlier this month.