Pinduoduo’s 12-month GMV ended September 30, 2019 was RMB840.2 billion (US$2,117.5 billion), an increase of 144% YoY. Its total revenues in Q3 2019 were RMB7,513.9 million (US$1,051.2 million), an increase of 123% YoY.
Pinduoduo’s average monthly active users in Q3 2019 were 429.6 million, an increase of 85% from 231.7 million in Q3 2018.
Its annual active buyers reached 536.3 million in Q3 2019, an increase of 39% from 385.5 million a year ago. In contrast, JD’s annual active buyers were 334.4 million in the same period; Alibaba 693 million.
Annual spending per active buyer on Pinduoduo in the 12-month period ended September 30, 2019 was RMB1,566.7 (US$219.2), an increase of 75% from RMB894.4 a year ago.
Pinduoduo Financial Results in Q3 2019
Total revenues were RMB7,513.9 million (US$1,051.2 million), an increase of 123% from RMB3,372.4 million in the same quarter of 2018. The increase was primarily due to an increase in revenues from online marketing services.
- Revenues from online marketing services were RMB6,711.4 million (US$938.9 million), an increase of 126% from RMB2,974.1 million in the same quarter of 2018.
- Revenues from transaction services were RMB802.5 million (US$112.3 million), an increase of 101% from RMB398.3 million in the same quarter of 2018.
Total costs of revenues were RMB1,833.3 million (US$256.5 million), an increase of 137% from RMB774.7 million in the same quarter of 2018. The increase was mainly due to higher costs for cloud services, call centers, and merchant support services.
Total operating expenses were RMB8,472.6 million (US$1,185.4 million), compared with RMB3,867.2 million in the same quarter of 2018.
- Sales and marketing expenses were RMB6,908.8 million (US$966.6 million), an increase of 114% from RMB3,229.6 million in the same quarter of 2018, mainly due to an increase in online and offline advertisement and promotions.
- General and administrative expenses were RMB436.6 million (US$61.1 million), an increase of 43% from RMB305.6 million in the same quarter of 2018, primarily due to expenses relating to our initiatives where we work with local governments to alleviate rural poverty.
- Research and development expenses were RMB1,127.2 million (US$157.7 million), an increase of 240% from RMB332.0 million in the same quarter of 2018. The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel, and an increase in R&D-related cloud services expenses and share-based compensation expenses.
Operating loss was RMB2,792.0 million (US$390.6 million), compared with operating loss of RMB1,269.5 million in Q3 2018. Non-GAAP operating loss was RMB2,123.5 million (US$297.1 million), compared with RMB790.0 million in Q3 2018. Pinduoduo suffered $11 billion slump in value.
Net loss attributable to ordinary shareholders was RMB2,335.0 million (US$326.7 million), compared with a net loss of RMB1,098.3 million in the same quarter of 2018.
Non-GAAP net loss attributable to ordinary shareholders was RMB1,660.4 million (US$232.3 million), compared with a non-GAAP net loss attributable to ordinary shareholders of RMB618.9 million in the same quarter of 2018.
Basic and diluted net loss per ADS were RMB2.00(US$0.28), compared with a net loss per ADS of RMB1.20 in the same quarter of 2018. Non-GAAP basic and diluted net loss per ADS were RMB1.44(US$0.20), compared with non-GAAP basic and diluted net loss per ADS of RMB0.68 in the same quarter of 2018.
Net cash provided by operating activities was RMB2,618.2 million (US$366.3 million), compared with RMB1,631.4 million in the same quarter of 2018, primarily due to an increase in online marketing services revenues.
Cash, cash equivalents and restricted cash were RMB34.4 billion (US$4.8 billion) as of September 30, 2019, compared with RMB30.5 billion as of December 31, 2018.
How is Pinduoduo a valuable e-commerce platform for top tier cities in China?