Pinduoduo misses Q3 earnings estimates; revenues in-line

Pinduoduo Inc. (NASDAQ: PDD) reported revenues that matched expectations and a wider-than-expected loss for the third quarter of 2019. Shares tanked over 17% in premarket hours on Wednesday.

Total revenues were RMB7,513.9 million ($1,051.2 million), up 123% from last year and in line with estimates of $1.05 billion. The growth in revenue was driven by an increase in online marketing services revenues.   

Net loss attributable to ordinary shareholders was RMB2,335 million ($326.7 million), compared with net loss of RMB1,098.3 million last year. Adjusted net loss attributable to ordinary shareholders was RMB1,660.4 million ($232.3 million).

Net loss per ADS was RMB2.00 ($0.28), compared with net loss per ADS of RMB1.20 last year. Adjusted net loss per ADS was RMB1.44 ($0.20). Analysts had forecast a loss of $0.08 per share.  

In the third quarter, revenues from online marketing services grew 126% year-over-year to RMB6,711.4 million ($938.9 million). Revenues from transaction services rose 101% to RMB802.5 million ($112.3 million) from the prior-year period.

Also read: Pinduoduo Q3 2019 Earnings Preview

Average monthly active users in the quarter increased 85% year-over-year to 429.6 million. GMV in the twelve-month period ended September 30, 2019 was RMB840.2 billion ($2117.5 billion), up 144% from the same period last year.

Active buyers in the twelve-month period ended September 30, 2019 were 536.3 million, an increase of 39% from the comparable period a year ago. Annual spending per active buyer in the twelve-month period ended September 30, 2019 increased 75% to RMB1,566.7 ($219.2) from the same period a year ago.

Total operating expenses were RMB8,472.6 million ($1,185.4 million), compared to RMB3,867.2 million last year.

Cash, cash equivalents and restricted cash totaled RMB34.4 billion ($4.8 billion) as of September 30, 2019.

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