Pinduoduo (NASDAQ: PDD) annual active buyers grew by 40% and exceeded 585 million in 2019 with an average spending of US$247.1, up 53%. It surpassed RMB1 trillion in GMV for the first time in Q4 2019.
Pinduoduo Q4 2019 Highlights
- GMV in the 12-month period ended December 31, 2019, was RMB1,006.6 billion (US$144.6 billion), an increase of 113% YoY from RMB471.6 billion
- Total revenues in the quarter were RMB10,792.7 million (US$1,550.3 million), an increase of 91% from RMB5,653.9 million in Q4 2018.
- Average monthly active users in the quarter were 481.5 million, an increase of 77% YoY from 272.6 million
- Active buyers in the twelve-month period ended December 31, 2019, were 585.2 million, an increase of 40% YoY from 418.5 million
- Annual spending per active buyer in the twelve-month period ended December 31, 2019, was RMB1,720.1 (US$247.1), an increase of 53% from RMB1,126.9 in the twelve-month period ended December 31, 2018.
In comparison:
- Jingdong (JD) annual active customers increased by 18.6% to 362.0 million in 2019
- Annual active consumers on Alibaba’s China retail marketplaces reached 711 million
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Pinduoduo Financial Results
Unaudited Financial Results for Q4 2019
Total revenues were RMB10,792.7 million (US$1,550.3 million), an increase of 91% from RMB5,653.9 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 RMB9,686.7 million (US$1,391.4 million), an increase of 91% from RMB5,062.4 million in the same quarter of 2018.
- Revenues from transaction services were RMB1,106.0 million (US$158.9 million), an increase of 87% from RMB591.5 million in the same quarter of 2018.
Total costs of revenues were RMB2,037.4 million (US$292.7 million), an increase of 43% from RMB1,424.0 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 RMB10,890.6 million (US$1,564.3 million), compared with RMB6,870.8 million in the same quarter of 2018.
- Sales and marketing expenses were RMB9,272.5 million (US$1,331.9 million), an increase of 54% from RMB6,024.0 million in the same quarter of 2018, mainly due to an increase in online and offline advertisement and promotions.
- General and administrative expenses were RMB345.7 million (US$49.7 million), an increase of 7% from RMB321.6 million in the same quarter of 2018, primarily due to an increase in headcount.
- Research and development expenses were RMB1,272.4 million (US$182.8 million), an increase of 142% from RMB525.2 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.
Operating loss was RMB2,135.3 million (US$306.7 million), compared with operating loss of RMB2,640.9 million in the same quarter of 2018. Non-GAAP operating loss was RMB1,336.6 million (US$192.0 million), compared with operating loss of RMB2,112.9 million in the same quarter of 2018.
Net loss attributable to ordinary shareholders was RMB1,751.6 million (US$251.6 million), compared with RMB2,423.9 million in the same quarter of 2018. Non-GAAP net loss attributable to ordinary shareholders was RMB815.0 million (US$117.1 million), compared with RMB1,895.9 million in the same quarter of 2018.
Basic and diluted net loss per ADS were RMB1.52 (US$0.20), compared with RMB2.16 in the same quarter of 2018. Non-GAAP basic and diluted net loss per ADS were RMB0.72 (US$0.12), compared with RMB1.72 in the same quarter of 2018.
Net cash flow from operating activities was RMB9,598.0 million (US$1,378.7 million), compared with RMB5,732.4 million in the same quarter of 2018, primarily due to an increase in online marketing services revenues.
Cash, cash equivalents and restricted cash were RMB33.3 billion (US$4.8 billion) as of December 31, 2019, compared with RMB30.5 billion as of December 31, 2018.
Financial Results for Fiscal Year 2019
Total revenues were RMB30,141.9 million (US$4,329.6 million), representing an increase of 130% from RMB13,120.0 million in 2018. The increase was primarily due to an increase in revenues from online marketing services.su
- Revenues from online marketing services were RMB26,813.6 million (US$3,851.5 million), representing an increase of 133% from RMB11,515.6 million in 2018.
- Revenues from transaction services were RMB3,328.2 million (US$478.1 million), representing an increase of 107% from RMB1,604.4 million in 2018.
Total costs of revenues were RMB6,338.8 million (US$910.5 million), representing an increase of 118% from RMB2,905.2 million in 2018. The increase from last year is mainly due to higher costs for cloud services, call centers, and merchant support services.
Total operating expenses were RMB32,341.3 million (US$4,645.5 million), compared with RMB21,014.5 million in 2018.
- Sales and marketing expenses were RMB27,174.2 million (US$3,903.3 million), an increase of 102% from RMB13,441.8 million in 2018 as we invested in cultivating greater user recognition and engagement through online and offline advertising campaigns and promotions.
- General and administrative expenses were RMB1,296.7 million (US$186.3 million), a significant decrease from RMB6,456.6 million in 2018, primarily due to a one-time share-based compensation expense recorded in April 2018.
- Research and development expenses were RMB3,870.4 million (US$555.9 million), an increase of 247% from RMB1,116.1 million in 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.
Operating loss was RMB8,538.2 million (US$1,226.4 million), compared with operating loss of RMB10,799.7 million in 2018. Non-GAAP operating loss was RMB5,980.5 million (US$859.0 million), compared with RMB3,958.2 million in 2018.
Net loss attributable to ordinary shareholders was RMB6,967.6 million (US$1,000.8 million), compared with RMB10,297.6 million in 2018. Non-GAAP net loss attributable to ordinary shareholders was RMB4,265.8 million (US$612.7 million), compared with RMB3,456.0 million in 2018.
Basic and diluted net loss per ADS was RMB6.04 (US$0.88), compared with RMB13.88 in 2018. Non-GAAP basic and diluted net loss per ADS were RMB3.68 (US$0.52), compared with RMB4.64 in 2018.
Net cash provided by operating activities was RMB14,821.0 million (US$2,128.9 million), compared with RMB7,767.9 million in 2018, primarily due to an increase in online marketing services revenues.