PDD Holdings (NASDAQ: PDD) stock fell about 8% in pre-market trading Thursday after the Chinese e-commerce company released its fourth-quarter earnings, revealing revenue that missed Wall Street estimates.
Temu owner posted total revenues of RMB110.61 billion ($15.15 billion) in Q4, marking a 24% increase year-over-year. However, this figure missed the consensus estimate of RMB115.15 billion.
On the brighter side, adjusted earnings per American depositary share (ADS) reached RMB20.15 ($2.76), topping forecasts of RMB19.84.
Operating profit for the quarter grew 14% from last year to RMB25.59 billion ($3.51 billion). Similarly, non-GAAP operating profit also rose 14%, hitting 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.
PDD saw robust growth in its transaction services segment, where revenues jumped 33% YoY to RMB53.6 billion ($7.34 billion). The online marketing services segment also performed well, with revenues growing 17% to RMB57.01 billion ($7.81 billion).
For the full FY 2024, PDD Holdings (NASDAQ: PDD) reported total revenues of RMB393.84 billion ($53.96 billion), reflecting a significant 59% rise from 2023. Net income attributable to shareholders also jumped 87% to RMB112.43 billion ($15.4 billion).
Despite the revenue miss, 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.”
Jennifer Tacker is a staff writer at ABBO News. She holds a B.A. from the University of Waterloo and a B.Ed from Western University. Jennifer has been active in the stock market and crypto sector for a decade. She specializes in technical analysis and trading strategies. Read Full Bio
