PDD Holdings Reports 8% Revenue Growth but GAAP Net Income Drops 12%
PDD Holdings Inc. (NASDAQ:PDD) reported second-quarter revenue of RMB112.4 billion, up 8% year over year but below the consensus estimate. Despite this growth, GAAP net income attributable to ordinary shareholders fell by 12%, declining to RMB27.2 billion due in part to a significant increase in operating expenses and other losses. The company's non-GAAP diluted earnings exceeded estimates at RMB19.33 per American depositary share but still declined from the previous year. PDD maintained strong profitability with an 8% rise in GAAP operating profit, reaching RMB27.8 billion, while cash generation improved significantly. However, revenue growth slowed compared to the first quarter and missed expectations by about RMB4.0 billion. The company has increased spending on merchants, technology, and ecosystem governance but has not yet shown clear acceleration in growth or disclosed specific returns from these investments.
Tickers: $PDD
Topics: merchant_investments net_income_decline operating_expenses revenue_growth