On May 22, Pinduoduo Group (PDD.NYSE) launched its monetary report for the very first quarter of 2024, ending March 31. The report reveals that Pinduoduo accomplished earnings of 86.8 billion yuan in the very first quarter, a year-on-year boost of 131%, and the net earnings attributable to Pinduoduo‘s common investors was 27.978 billion yuan, a year-on-year boost of 246%.
Formerly, the marketplace’s profits expectation for Pinduoduo for this quarter was 76.86 billion yuan. After the release of the monetary report, Pinduoduo‘s pre-market share cost in the U.S. increased by more than 13% to $158.46 per share. With the release of the monetary report, Pinduoduo‘s market price when again exceeded Alibaba
From the monetary report, Pinduoduo‘s profits and revenue development still surpassed its e-commerce peers. With the boost in sales and marketing costs, Pinduoduo requirements to enhance its low-price state of mind as domestic e-commerce is paying a growing number of attention to cost aspects. In the abroad growth of Pinduoduo‘s cross-border service, Temu, Pinduoduo is likewise continually increasing its financial investment.
In a teleconference after the release of the monetary report, Chen Lei mentioned that from the viewpoint of market competitors, customers have actually currently formed the routine of cross-platform usage. Customers will make detailed contrasts in between various platforms from numerous measurements such as item classifications, rates, and service quality, and after that choose.
“Facing such a pattern, we saw that our peers substantially increased their efforts in the very first quarter, and Pinduoduo invites healthy competitors,” Chen Lei stated.
The domestic e-commerce market’s cost and service competitors is heightening, and Pinduoduo will deal with brand-new difficulties in cost and classification operations in locations such as billion-dollar aids. The monetary report reveals that Pinduoduo‘s overall business expenses for the quarter were 28.1437 billion yuan, a 44% boost from 19.5827 billion yuan in the very same duration in 2023. The report reveals that this development is generally due to a boost in sales and marketing expenditures. Throughout the reporting duration, sales and marketing expenditures were 23.4107 billion yuan, a 44% boost from 16.2597 billion yuan in the exact same duration in 2023, primarily due to a boost in marketing and marketing activities.
On the other hand, the abroad growth of Temu is likewise worth focusing on. Throughout the reporting duration, Temu introduced a semi-hosted design to reinforce the satisfaction capability of platform products. Presently, Temu’s semi-hosted service has actually landed in 9 nations consisting of the United States, Canada, the UK, Australia, New Zealand, Germany, France, Italy, and Spain. At the very same time, Temu just recently passed a tax reward program accreditation by the Brazilian federal government, excusing import costs for products under 50 dollars. This indicates that Temu is better to broadening its company to Brazil.
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