August 26, 2024 - Shares of the Temu parent company $PDD Holdings (PDD.US)$ slumped 26.10% to $103.37 in early trading on Monday.
Today, the company reported its Q2 unaudited financial results that fell short of expectations. The China-based online retailer reported revenue below analysts' estimates, and management indicated that revenue growth pressures are expected to continue due to heightened competition and other challenges.
Highlights for Q2 earnings
Q2 total revenue of RMB97,059.5 million (US$13,355.8 million), an increase of 86% from RMB52,280.7 million in the same period last year, but falling short of the market expectation of RMB99,985 million.
Q2 net income attributable to ordinary shareholders of RMB32,009.4 million (US$4,404.6 million), an increase of 144% from RMB13,108.1 million in the same period last year. Q2 non-GAAP net income attributable to ordinary shareholders of RMB34,432.1 million (US$4,738.0 million), an increase of 125% from RMB15,269.4 million in the same quarter of 2023.
In this quarter, revenues from online marketing services and others of RMB49,115.9 million (US$6,758.6 million); and revenues from transaction services of RMB47,943.7 million (US$6,597.3 million).
Non-GAAP diluted earnings per ADS were RMB23.24 (US$3.20).
Additionally, cash, cash equivalents and short-term investments were RMB284.9 billion (US$39.2 billion) as of June 30, 2024, compared with RMB217.2 billion as of December 31, 2023.
Chairman and Co-Chief Executive Officer of PDD Holdings, Mr. Lei Chen said:
“While encouraged by the solid progress we made in the past few quarters, we see many challenges ahead, We are committed to transitioning toward high-quality development and fostering sustainable ecosystem. We will invest heavily in the platform’s trust and safety, support high-quality merchants, and relentlessly improve the merchant ecosystem. We are prepared to accept short-term sacrifices and potential decline in profitability.”