Pinduoduo Stacks Up CNY 12.19 in Revenues for 2Q 2020

Pinduoduo released its 2020 second-quarter financial report. Other than the increase in revenue compared to the same period last year, the average number of monthly active users this quarter 568.8 million, a year-on-year increase of 55%. The number of active buyers for the year ended June 30 was 683.2 million, up 41% year-on-year.

Revenues from online marketing services were CNY 11.05 billion, an increase of 71% from CNY 6.46 billion in the same quarter of 2019.

Revenues from transaction services were CNY 1.13 billion, up of 38% from CNY 822.9 million in the same quarter of 2019.

Total costs of revenues were CNY 2.66 billion, an increase of 67% compared to the same quarter of 2019. The increase was mainly due to higher costs for cloud services, call center and merchant support services.

Total operating expenses were RMB11.17 billion compared with CNY 7.18 billion in the same quarter of 2019.

Sales and marketing expenses were CNY 9.11 billion, up 49% compared to the same quarter of 2019, mainly due to an increase in advertising expenses and promotion and coupon expenses.
 
Research and development expenses were CNY 1.66 billion, an increase of 107% from CNY 803.7 million in the same quarter of 2019. The increase was primarily due to an increase in headcount and the recruitment of more experienced R&D personnel, and an increase in R&D-related cloud services expenses.

It is also worth noting that GMV in the twelve-month period ended June 30, 2020 was CNY 1,268.7 billion, an increase of 79% from CNY 709.1 billion in the twelve-month period ended June 30, 2019.
 
Active buyers in the twelve-month period ended June 30, 2020 were 683.2 million, an increase of 41% from 483.2 million in the twelve-month period ended June 30, 2019.
 
Annual spending per active buyer in the twelve-month period ended June 30, 2020 was CNY 1,857, an increase of 27% from CNY 1,467.5 in the twelve-month period ended June 30, 2019.