• Thu. May 23rd, 2024

Pinduoduo Shares Gain 10% Following Q2 2022 Financial Report

Erik Taylor

ByErik Taylor

Sep 3, 2022
  • Pinduoduo published a 36% revenue increase Y/Y.
  • Revenue from online marketing services gained 39%.
  • Pinduoduo’s net income attributed to stakeholders increased by 268%.

Pinduoduo Inc. saw its shares gaining about 10% after the firm published its 2022 Q2 unaudited fiscal results. It announced $4.69 million in revenue, representing a 36% increase Y/Y.

The upside primarily emerged from increased revenues from marketing services and online transactions, alleviated by low product sales.

Pinduoduo Benefits from Consumer Sentiment

Lei Chen, Pinduoduo’s CEO, stated that the company witnessed consumer sentiment recovery in Q2, especially from the 618-shopping fiesta.

That reflected the overall consumption’s resilience. He added that the firm remained dedicated to creating a foundation that acts as a force.

Meanwhile, online marketing service revenues stood at $3.758 billion, indicating a 39% jump within the past year.

Pinduoduo’s transaction services revenue hovered at $928.1 million, reflecting a 107% Y/Y surge, whereas $7.6 million in merchandise sales represented a 97% dip from 2021 Q2.

The total revenue cost surged 1% Y/Y to nearly $1.188 billion. Moreover, the firm declared $2.206 billion in operating expenses, whereas marketing and sales expenses increased by 9% Y/Y to $1.693 billion.

Also, general administrative expenses of $123.3 million represented a 90% surge from the previous year.

Jun Liu, VP of Finance, said that postponement of some projects plus lower business-associated expensive during the quarter’s first half impacted total expenses in the near term.

He added that the firm remained committed to investing in sectors like R&D and agriculture to enhance customer service.

Pinduoduo’s +268% Net Income to Stakeholders

Operating profit stood at $1.2985B, a 335% surge, with $1.573 billion non-GAAP operating profit. Net income attributable to stakeholders stood at $1.328, indicating a 268% Y/Y increase.

Meanwhile, earnings per ADS came at $1.05, whereas diluted ADS earnings were $0.93. Moreover, non-GAAP (per ADS) diluted earnings stood at $1.13.

Operating activities had a net cash flow of $2.892 billion. Increased net income and working capital changes contributed to the figure. The company boasted $17.8 billion in cash, investments, and cash equivalents during the quarter’s end.

Stay tuned for upcoming financial news.

Erik Taylor

Erik Taylor

Erik Taylor, contributing author for Big Trends Signals, leverages his vast online trading knowledge to provide thorough guides and impartial reviews, simplifying complex trading concepts for readers.

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