PDD

Pinduoduo (PDD) reported its Q2 FY24 earnings with mixed results:

- Adjusted EPS: ¥23.24, beating estimates of ¥20.43.

- Revenue: ¥97.06B, missing expectations of ¥99.42B but showing an 86% YoY increase.

- Operating Profit: ¥32.56B, up 156% YoY with a 36% operating margin (above the estimated 29%).

Segment Performance:

- Transaction Services Revenue: ¥47.94B, below the estimated ¥50.02B, yet up 234% YoY.

- Online Marketing Services Revenue: ¥49.12B, up 29% YoY.

Key Metrics:

- Net Income: ¥32.01B, a 144% YoY increase.

- Net Cash from Operating Activities: ¥43.79B, up from ¥23.40B YoY.

- Cash and Cash Equivalents: ¥284.9B as of June 30, 2024.

Management Commentary:

- The company emphasized challenges ahead, including intensified competition and the need for sustainable growth, with plans for significant investments in platform safety and merchant support, which could impact short-term profitability.