PDD Holdings (PDD) reports Q1 earnings, revenue above expectations; shares pop

PDD Holdings saw its shares pop 5.7% after Temu owner reported (NASDAQ: PDD) earnings and revenue for the fiscal Q1 that topped analyst expectations.

The Chinese online retailer posted quarterly earnings per share (EPS) of RMB20.72, significantly surpassing the analyst estimate of RMB10.35. Revenue for the quarter came in at RMB86.81 billion, also above the consensus projection of RMB75.17 billion.

Revenue from online marketing services and others was RMB42.46 billion, while analysts were looking for RMB37.65 billion.

Transaction services revenue came in at RMB44.36 billion, topping the estimated RMB38.07 billion.

The parent company of Temu said the cost of revenue increased by 194% to 32.7 billion yuan, though outpacing the rise in revenue. Analysts had estimated the cost of goods sold to rise by 30.78 billion yuan in the first quarter.

“We are committed to offering a trustworthy shopping environment for our users around the world,” said Mr. Lei Chen, Chairman and co-CEO of PDD Holdings.

“We will keep focusing on growing our long-term intrinsic value through investing in initiatives that bring sustainable impacts to our communities.”

By Vahid Karaahmetovic

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