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.
“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.