Temu owner PDD Holdings shares tank after big Q1 results miss
Temu owner PDD Holdings Inc DRC saw its shares plummet more than 13% after reporting notably worse-than-expected earnings and revenue for the first quarter of fiscal 2025, News.az reports citing Investing.
The Chinese online retailer posted Q1 earnings per share (EPS) of RMB11.41, falling well short of analyst expectations of RMB19.44.
Revenue for the period rose 10% year-over-year, RMB95.67 billion, but still missed the consensus forecast of RMB102.98 billion.
“In the first quarter, we made substantial investments in our platform ecosystem to support merchants and consumers amid rapid changes in the external environment,” said Mr. Lei Chen, Chairman and Co-CEO of PDD Holdings.
“These investments weighed on short-term profitability but gave merchants the room to adapt and focus on high-quality, sustainable growth, strengthening the long-term health of the platform," he added.
PDD’s revenue from online marketing services and others came in at RMB48.72 billion, slightly ahead of the RMB47.99 billion estimate.
Meanwhile, transaction services revenue disappointed at RMB46.95 billion, short of the projected RMB54.23 billion.
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