Temu owner PDD misses Q4 revenue estimates, shares dip
PDD Holdings Inc. reported fourth-quarter 2024 results that fell short of analyst revenue expectations, sending shares down over 3% in early trading, News.Az reports citing Investing.
The Chinese e-commerce giant posted total revenues of RMB110.61 billion ($15.15 billion) in Q4, up 24% YoY but below the consensus estimate of RMB115.15 billion. However, adjusted earnings per American depositary share (ADS) of RMB20.15 ($2.76) beat expectations of RMB19.84.
PDD’s Q4 operating profit rose 14% YoY to RMB25.59 billion ($3.51 billion). Non-GAAP operating profit increased 14% to RMB28 billion ($3.84 billion).
"This quarter, we delivered stable financial results supported by the resolute execution of our high-quality development strategy," said Jun Liu, VP of Finance at PDD Holdings.
The company saw strong growth in its transaction services segment, with revenues jumping 33% YoY to RMB53.6 billion ($7.34 billion). Online marketing services revenue grew 17% to RMB57.01 billion ($7.81 billion).
For the full fiscal year 2024, PDD reported total revenues of RMB393.84 billion ($53.96 billion), up 59% from 2023. Net income attributable to shareholders surged 87% to RMB112.43 billion ($15.4 billion).
Despite the revenue miss, PDD’s Chairman and Co-CEO Lei Chen remained upbeat, stating, "Through targeted innovations in platform operations and industry support policies, we continue to drive our high-quality development strategy to benefit the broader e-commerce ecosystem."
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