Against the backdrop of a general slowdown in the growth of Internet companies, Chinese e-commerce platforms maintained their rapid growth trend.
PDD (Chinese: 拼多多, Nasdaq: PDD) released its Q3 2022 financial results on 28 November. The earnings report showed that PDD's total revenue for the third quarter was CNY 35.5 billion, up 65.1% year-on-year. Operating profit was CNY 10.44 billion, increasing 388% compared to the same period in the previous year. This is also the sixth consecutive quarter in which PDD has achieved profitability.
In terms of segments, PDD online marketing revenue in the third quarter was CNY 28.43 billion, up 58% year-on-year; transaction services revenue was CNY 7.02 billion, growing 102% year-on-year; and merchandising revenue was CNY 56.4 million, down 31% compared to the same period in the previous year.
As to the reason for the significant increase in revenue, PDD explained that it was due to an improvement in online marketing services and transaction services, offset by a decrease in merchandising revenue.
Chen Lei, CEO of PDD, said the growth in advertising revenue is due to the change in consumer demand for high-quality brands on the PDD platform. In the future, the company will further increase investment in technology innovation to promote agricultural technology and supply-side upgrading, and create long-term value by cooperating with more brands.
The competitors of PDD include Alibaba (Chinese: 阿里巴巴, Nasdaq: BABA), VIP Shop (Chinese: 唯品会, NYSE: VIPS) and JD (Chinese: 京东, Nasdaq: JD). As of press time, PDD closed at USD 74.05 apiece, with a market cap of USD 93.63 billion.