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March 17, 2021, 7:04 a.m. EDT

Pinduoduo revenue more than doubles to beat expectations, makes push into groceries, but stock falls

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By Tomi Kilgore

Shares of Pinduoduo Inc. /zigman2/quotes/208876581/composite PDD -4.44% fell 3.7% in premarket trading Wednesday, even after the China-based mobile marketplace reported a fourth-quarter loss that narrowed more than expected, as revenue more than doubled to beat forecasts. The net loss narrowed to RMB1.38 billion ($210.9 mln), or RMB1.13 per American depositary share, from RMB1.75 billion, or RMB1.52 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss was RMB0.15, beating the FactSet loss consensus of RMB0.29. Revenue jumped 146% to RMB26.55 billion ($4.07 billion), well above the FactSet consensus of RMB19.19 billion, with increase primarily a result of growth in online marketing services and a contribution from merchandise sales. Average active monthly users rose 50% to 719.9 million, while active buyers increased 35% to 788.4 million and annual spending per active buyer grew 23% to RMB2,115.2 ($324.2). The company had started with agricultural products, to become the largest agriculture platform in China, "and we hope that Pinduoduo can one day become the largest grocer in the world," said Chief Executive Lei Chen. The stock has gained 7.3% over the past three months through Tuesday, while the iShares MSCI China ETF /zigman2/quotes/206267952/composite MCHI +0.90% has tacked on 5.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.47% has advanced 6.5%.

US : U.S.: Nasdaq
$ 59.35
-2.76 -4.44%
Volume: 4.97M
Dec. 2, 2021 10:56a
P/E Ratio
Dividend Yield
Market Cap
$77.84 billion
Rev. per Employee
US : U.S.: Nasdaq
$ 65.33
+0.58 +0.90%
Volume: 2.39M
Dec. 2, 2021 10:56a
+21.41 +0.47%
Volume: 782.27M
Dec. 2, 2021 10:56a

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