E-commerce platform that offers budget goods, Pinduoduo (NASDAQ: PDD) on Wednesday reported higher revenues and narrower losses in the second quarter of 2019, sending its shares up over 6% during pre-marketing trading hours.
The Chinese firm’s revenues surged 169% to $1.062 billion, as average monthly users rose 88% to 366 million. Analysts were expecting Q2 revenues of 878.68 million.
There were 483.2 million active buyers for Pinduoduo at the
end of Q2, and gross domestic volume stood at $103.3 billion, a year-over-year
increase of 171% .
Earnings, on an adjusted basis, narrowed to RMB0.36 (US$0.04) per ADS, compared to RMB1.40 per ADS in the same quarter of 2018. Analysts had projected a wider loss of $0.19 per ADS.
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“This unwavering focus on our users contributed to the significant increase in our annual active buyer base and annual spending per active buyer, which together led to the 171% increase in our last-twelve-month GMV to RMB709.1 billion,” CEO Zheng Huang said.
Annual spend per active buyer at the end of the second
quarter came in at RMB1,467.5 (US$213.8), which was almost double over the same
period last year.
Pinduoduo’s shares have gained 12% year-to-date and 28% in the past one month.