Pinduoduo (NASDAQ: PDD), one of the top e-commerce platforms in China, saw its GMV more than doubled to 1,157.2 billion yuan (US$163.4 billion) in the twelve-month period ended March 31, 2020, an increase of 108% YoY from 557.4 billion.
Pinduoduo’s total revenues in Q1 2020 were 6,541.1 million yuan (US$923.8 million), an increase of 44% from 4,545.2 million yuan in Q1 2019.
Its average monthly active users in the quarter were 487.4 million, an increase of 68% from 289.7 million in Q1 2019.
The number of active buyers in the twelve-month period ended March 31, 2020 were 628.1 million, an increase of 42% from 443.3 million in the twelve-month period ended March 31, 2019.
Annual spending per active buyer in the twelve-month period ended March 31, 2020 was 1,842.4 yuan (US$260.2), an increase of 47% from 1,257.3 yuan in the twelve-month period ended March 31, 2019.
Pinduoduo was able to ship on average 50 million daily orders in March to meet its users’ needs.
Pinduoduo Financial Results in Q1 2020
Total revenues were 6,541.1 million yuan (US$923.8 million), an increase of 44% from 4,545.2 million yuan in Q1 2019. The increase was primarily due to an increase in revenues from online marketing services.
Revenues from online marketing services were 5,492.3 million yuan (US$775.7 million), an increase of 39% from 3,948.4 million yuan in Q1 2019.
Revenues from transaction services were 1,048.8 million yuan (US$148.1 million), an increase of 76% from 596.8 million yuan in Q1 2019.
Total costs of revenues were 1,830.2 million yuan (US$258.5 million), an increase of 110% from 873.3 million yuan in Q1 2019. The increase was mainly due to higher costs for cloud services, call center and merchant support services.
Total operating expenses were 9,108.0 million yuan (US$1,286.3 million), compared with 5,792.4 million yuan in Q1 2019.
Sales and marketing expenses were 7,296.6 million yuan (US$1,030.5 million), an increase of 49% from 4,889.3 million yuan in Q1 2019, mainly due to an increase in advertising expenses and promotion and coupon expenses.
General and administrative expenses were 338.3 million yuan (US$47.8 million), an increase of 43% from 236.1 million yuan in Q1 2019, primarily due to an increase in headcount.
Research and development expenses were 1,473.2 million yuan (US$208.0 million), an increase of 121% from 667.1 million yuan in Q1 2019. 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 4,397.2 million yuan (US$621.0 million), compared with operating loss of 2,120.5 million in Q1 2019. Non-GAAP operating loss6was 3,587.9 million yuan (US$506.7 million), compared with operating loss of 1,621.9 million yuan in Q1 2019.
Net loss attributable to ordinary shareholders was 4,119.3 million yuan (US$581.8 million), compared with 1,877.7 million in Q1 2019. Non-GAAP net loss attributable to ordinary shareholders was 3,169.6 million yuan (US$447.6 million), compared with 1,379.1 million in Q1 2019.
Basic and diluted net loss per ADS were 3.54 yuan (US$0.50), compared with 1.64 in Q1 2019. Non-GAAP basic and diluted net loss per ADS were 2.73 yuan (US$0.39), compared with 1.20 in Q1 2019.
Net cash used in operating activities was 567.1 million yuan (US$80.1 million), compared with 1,543.3 million yuan in Q1 2019, primarily due to an increase in online marketing services revenues.
Cash, cash equivalents, restricted cash and short-term investments were 69.5 billion yuan (US$9.8 billion) as of March 31, 2020, compared with 68.6 billion yuan as of December 31, 2019.
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