Pinduoduo (PDD) Misses on Q4 Revenue Consensus

Pinduoduo (NASDAQ: PDD) reported worse-than-expected fourth-quarter venue and monthly active users below analyst expectations, sending its U.S.-listed shares down in premarket trading.

Pinduoduo reported Q4 adjusted earnings per American depository receipts of 5.88 yuan, compared to the loss per share of 15 yuan cents in the year-ago period, and consensus estimates of 2.02 yuan.

Revenue in Q4 came in at 27.23 billion yuan, up 2.6% YoY, and below the analyst consensus of 30 billion yuan.

Revenue from online marketing services and others came in at 22.43 billion yuan, below the consensus estimates of 25.04 billion yuan. The company reported transaction services revenue of 4.72 billion yuan, missing the estimated 5.08 billion yuan. Revenue from merchandise sales stood at 81.7 million yuan in the quarter, well below the consensus projection of 97.4 million yuan.

Pinduoduo reported 733.4 million monthly active users in the period, up 1.9% YoY, but below the analyst consensus of 754.4 million.

R&D expenses totaled 2.02 billion yuan, up 3.7% YoY.

PDD also reported 868.7 million active buyers in the quarter, below the projected 883.3 million.

“Our revenue growth slowed down due to moderating user growth and fluctuation in user activity,” said Ms. Jun Liu, VP of Finance of Pinduoduo.

“At the same time, we recorded a profit in the fourth quarter, which is attributable to more controlled spending as we adjust to slower growth, and a one-off rebate from one of our service providers.”

By Senad Karaahmetovic

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