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Pinduoduo continues to maintain an amazing performance growth rate.
On May 22, Pinduoduo (Nasdaq: PDD) released its financial report for the first quarter of this year, achieving a total revenue of 86.812 billion yuan, up 131% year on year; The net profit attributable to the parent company was 27.998 billion yuan, up 246% year on year.
According to the financial report, the increase in revenue was mainly due to the increase in revenue from online marketing services and trading services. By business, the revenue from online marketing services and other services was 42.456.2 billion yuan, up 56% year on year. However, more growth came from trading service revenue, which was 44.355.8 billion yuan, up 327% year on year.
Pinduoduo's global business and Temu's revenue are also included in the transaction service revenue, but according to the convention, Pinduoduo does not give its revenue separately.
However, the cost of Pinduoduo is also growing at a high speed: its total revenue cost in the first quarter was 3.269 billion yuan, an increase of 194% over the same period in 2023. The growth mainly comes from the increase of fulfillment fees, payment processing fees, maintenance costs and call center fees.
The general and administrative expenses were 183.4 million yuan, an increase of 123% over the same period last year, mainly due to the increase in employee related costs.
With regard to the soaring performance, in the teleconference after the financial report, Chen Lei, the joint CEO of Pinduoduo, said that with the high-quality development entering the deepwater area, the company is still in the period of growth and investment. We will remain firmly committed to opportunities with value creation potential. "We are not guided by short-term goals, but will continue to focus on creating long-term value. This is reflected in all aspects of business, including global business."
On industry competition: peers significantly increase investment
As for the performance of e-commerce, Zhao Jiazhen, the co CEO of Pinduoduo, said that this year is the "year of consumption promotion". The consumer market in the first quarter has generally started well, showing the characteristics of continuous strong online consumption and continuous increase in online retail penetration. Driven by policies and activities, the overall growth in the first quarter was steady, and we were confident about the future of the domestic consumer market.
"This year, the platform will continue to further increase investment in deepening the high-quality development strategy. High quality development is our long-term strategy. In the future, we will continue to make efforts in three aspects, namely, consumer side, supply side, compliance and platform ecology, to ensure high-quality supply and service while consolidating multi benefits," said Zhao Jiazhen.
In the recent hot trend of e-commerce price war, Pinduo executives also acknowledged the intensity of industry competition: "We saw that in the first quarter, peers significantly increased their investment. We welcome healthy competition. In the face of competition, our starting point is always to put consumers first, and our survival foundation is to create value for consumers. These are the ideas that Pinduoduo has always adhered to since its inception. " Chen Lei said.
Talking about cross-border business: not focusing on short-term growth
The outside world is very concerned about the progress of Pinduoduo's global business and cross-border business. In the conference call, Chen Lei also said again that Duoduo cross-border is still in the exploration stage, and there is still much room for improvement. Pinduoduo has made adequate preparations to meet and respond to changes and challenges in the market with a positive and positive attitude, and regards it as an important opportunity to improve its own capabilities. "
According to public data, Duoduo Cross border was launched in September 2022, and has promoted high-quality products from more than 100 manufacturing industry belts across the country to enter more than 50 countries and regions around the world.
Chen Lei said that during the hard war, he would not pay too much attention to the short-term growth of many cross-border enterprises, but should practice internal skills, consolidate the foundation, and strengthen the three capabilities of supply chain, compliance and service. "When these capabilities combine to bring more and more value to consumers in different countries and businesses seeking to expand in the international market, we hope that the platform will also be welcomed and recognized by more markets and people."
"We are not a traditional company, and we will not deliberately smooth the financial report data." Chen Lei said that he hoped to recall the content of the first shareholder letter when the company was listed at this time. The development of the company's business is not linear, but volatile. Therefore, it should not be simply measured by the performance of one quarter. Performance will inevitably fluctuate, sometimes "too good", sometimes "deviation", but as long as we continue to focus on long-term value creation, all these fluctuations will eventually return to the endogenous value of continuous accumulation and growth.
It is worth noting that Pinduoduo's market value once again exceeded that of Ali. By the end of May 22, Pinduoduo had closed at $147.09, up 1.13%, with a total market value of $204.274 billion, surpassing Alibaba's $2012.12 billion.
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