PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the fourth quarter ended and the fiscal year ended December 31, 2023.

Fourth Quarter 2023 Highlights

  • Total revenues in the quarter were RMB88,881.0 million (US$1 12,518.6 million), an increase of 123% from RMB39,820.0 million in the same quarter of 2022.
  • Operating profit in the quarter was RMB22,395.0 million (US$3,154.3 million), an increase of 146% from RMB9,113.7 million in the same quarter of 2022. Non-GAAP2 operating profit in the quarter was RMB24,579.9 million (US$3,462.0 million), an increase of 112% from RMB11,600.1 million in the same quarter of 2022.
  • Net income attributable to ordinary shareholders in the quarter was RMB23,280.3 million (US$3,279.0 million), an increase of 146% from RMB9,453.7 million in the same quarter of 2022. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB25,476.5 million (US$3,588.3 million), an increase of 110% from RMB12,105.8 million in the same quarter of 2022.

“2023 represents a pivotal chapter in our corporate history as we transition towards high-quality development,” said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. “In 2024, we remain dedicated to further improving consumer experiences, enhancing technology innovations, and generating positive impacts in our communities.”

“In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment,” said Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings. “We will continue our high-quality development strategy, stay dedicated to offer great value and exceptional service, and keep building thriving communities that can benefit all.”

“In 2023, our R&D investment exceeded RMB10 billion for the second consecutive year, underscoring our dedication to technology and agricultural advancements,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “Our focus remains on creating lasting value through strategic initiatives with sustainable and positive impacts.”

Fourth Quarter 2023 Unaudited Financial Results

Total revenues were RMB88,881.0 million (US$12,518.6 million), an increase of 123% from RMB39,820.0 million in the same quarter of 2022. The increase was primarily due to an increase in revenues from online marketing services and transaction services.

  • Revenues from online marketing services and others were RMB48,675.6 million (US$6,855.8 million), an increase of 57% from RMB31,023.4 million in the same quarter of 2022.
  • Revenues from transaction services were RMB40,205.4 million (US$5,662.8 million), an increase of 357% from RMB8,796.6 million in the same quarter of 2022.

Total costs of revenues were RMB35,078.3 million (US$4,940.7 million), an increase of 293% from RMB8,926.7 million in the same quarter of 2022. The increase mainly came from the increased fulfilment fees, payment processing fees, maintenance costs and call center expenses.

Total operating expenses were RMB31,407.8 million (US$4,423.7 million), an increase of 44% from RMB21,779.6 million in the same quarter of 2022. The increase was primarily due to an increase in sales and marketing expenses.

  • Sales and marketing expenses were RMB26,638.5 million (US$3,752.0 million), an increase of 50% from RMB17,732.4 million in the same quarter of 2022, mainly due to the increased spending in promotion and advertising activities.
  • General and administrative expenses were RMB1,904.8 million (US$268.3 million), compared with RMB1,640.5 million in the same quarter of 2022.
  • Research and development expenses were RMB2,864.4 million (US$403.4 million), compared with RMB2,406.7 million in the same quarter of 2022.

Operating profit in the quarter was RMB22,395.0 million (US$3,154.3 million), an increase of 146% from RMB9,113.7 million in the same quarter of 2022. Non-GAAP operating profit in the quarter was RMB24,579.9 million (US$3,462.0 million), an increase of 112% from RMB11,600.1 million in the same quarter of 2022.

Net income attributable to ordinary shareholders in the quarter was RMB23,280.3 million (US$3,279.0 million), an increase of 146% from RMB9,453.7 million in the same quarter of 2022. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB25,476.5 million (US$3,588.3 million), an increase of 110% from RMB12,105.8 million in the same quarter of 2022.

Basic earnings per ADS was RMB17.00 (US$2.39) and diluted earnings per ADS was RMB15.83 (US$2.23), compared with basic earnings per ADS of RMB7.42 and diluted earnings per ADS of RMB6.52 in the same quarter of 2022. Non-GAAP diluted earnings per ADS was RMB17.32 (US$2.40), compared with RMB8.34 in the same quarter of 2022.

Net cash generated from operating activities was RMB36,890.7 million (US$5,195.9 million), compared with RMB26,550.3 million in the same quarter of 2022, mainly due to the increase in net income.

Cash, cash equivalents and short-term investments were RMB217.2 billion (US$30.6 billion) as of December 31, 2023, compared with RMB149.4 billion as of December 31, 2022.

Fiscal Year 2023 Unaudited Financial Results

Total revenues were RMB247,639.2 million (US$34,879.3 million), representing an increase of 90% from RMB130,557.6 million in 2022. The increase was primarily due to an increase in revenues from online marketing services and transaction services.

  • Revenues from online marketing services and others were RMB153,540.6 million (US$21,625.7 million), representing an increase of 49% from RMB102,931.1 million in 2022.
  • Revenues from transaction services were RMB94,098.7 million (US$13,253.5 million), representing an increase of 241% from RMB27,626.5 million in 2022.

Total costs of revenues were RMB91,723.6 million (US$12,919.0 million), an increase of 192% from RMB31,462.3 million in 2022. The increase mainly came from the increased fulfilment fees, payment processing fees, maintenance costs and call center expenses.

Total operating expenses were RMB97,216.9 million (US$13,692.7 million), an increase of 42% from RMB68,693.4 million in 2022.

  • Sales and marketing expenses were RMB82,188.9 million (US$11,576.1 million), an increase of 51% from RMB54,343.7 million in 2022, mainly due to the increased spending in promotion and advertising activities.
  • General and administrative expenses were RMB4,075.6 million (US$574.0 million), compared with RMB3,964.9 million in 2022.
  • Research and development expenses were RMB10,952.4 million (US$1,542.6 million), compared with RMB10,384.7 million in 2022.

Operating profit was RMB58,698.8 million (US$8,267.5 million), an increase of 93% from RMB30,401.9 million in 2022. Non-GAAP operating profit was RMB65,777.6 million (US$9,264.6 million), an increase of 73% from RMB38,120.3 million in 2022.

Net income attributable to ordinary shareholders was RMB60,026.5 million (US$8,454.6 million), an increase of 90% from RMB31,538.1 million in 2022. Non-GAAP net income attributable to ordinary shareholders was RMB67,899.3 million (US$9,563.4 million), an increase of 72% from RMB39,529.7 million in 2022.

Basic earnings per ADS was RMB44.33 (US$6.24) and diluted earnings per ADS was RMB41.15 (US$5.80), compared with basic earnings per ADS of RMB24.94 and diluted earnings per ADS of RMB21.93 in 2022. Non-GAAP diluted earnings per ADS was RMB46.51 (US$6.56), compared with RMB27.45 in 2022.

Net cash generated from operating activities was RMB94,162.5 million (US$13,262.5 million), compared with RMB48,507.9 million in 2022, mainly due to the increase in net income and the changes in working capitals.

Conference Call

The Company’s management will hold an earnings conference call at 7:30 AM ET on March 20, 2024 (11:30 AM GMT and 7:30 PM HKT on the same day).

The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share and non-GAAP diluted earnings per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s non-GAAP financial measures exclude the impact of share-based compensation expenses, fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value.

The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further information about the Company’s results of operations, and enhance the overall understanding of the Company’s past performance and future prospects.

The Company’s non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. These non-GAAP financial measures do not reflect all items of income and expenses that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company’s financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to The Most Directly Comparable GAAP Measures” set forth at the end of this press release.Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in the e-commerce markets globally and in the countries or regions where the Company has operations; changes in its revenues and certain cost or expense items; the expected growth of e-commerce markets globally and in the countries or regions where the Company has operations; developments in the relevant governmental policies and regulations relating to the Company’s industry; and general economic and business conditions globally and in the countries or regions where the Company has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

About PDD Holdings

PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.

PDD HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”))
 
    As of
    December31, 2022   December 31, 2023
    RMB   RMB   US$
        (Unaudited)   (Unaudited)
         
         
ASSETS            
Current assets            
Cash and cash equivalents   34,326,192   59,794,469   8,421,875
Restricted cash   57,974,225   61,985,436   8,730,466
Receivables from online payment platforms   587,696   3,914,117   551,292
Short-term investments   115,112,554   157,415,365   22,171,490
Amounts due from related parties   6,318,830   7,428,070   1,046,222
Prepayments and other current assets   2,298,379   4,213,015   593,390
Total current assets   216,617,876   294,750,472   41,514,735
             
Non-current assets            
Property, equipment and software, net   1,044,847   979,597   137,973
Intangible assets   134,002   21,148   2,979
Right-of-use assets   1,416,081   4,104,889   578,162
Deferred tax assets   1,045,030   270,738   38,133
Other non-current assets   16,862,117   47,951,276   6,753,796
Total non-current assets   20,502,077   53,327,648   7,511,043
             
Total Assets   237,119,953   348,078,120   49,025,778
PDD HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”))
 
    As of
    December31, 2022   December 31, 2023
    RMB   RMB   US$
        (Unaudited)   (Unaudited)
         
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Current liabilities            
Amounts due to related parties   1,676,391   1,238,776   174,478
Customer advances and deferred revenues   1,389,655   2,144,610   302,062
Payable to merchants   63,316,695   74,997,252   10,563,142
Accrued expenses and other liabilities   20,960,723   55,351,399   7,796,081
Merchant deposits   15,058,229   16,878,746   2,377,322
Convertible bonds, current portion   13,885,751   648,570   91,349
Lease liabilities   602,036   1,641,548   231,207
Total current liabilities   116,889,480   152,900,901   21,535,641
             
Non-current liabilities            
Convertible bonds   1,575,755   5,231,523   736,845
Lease liabilities   870,782   2,644,260   372,436
Deferred tax liabilities   13,025   59,829   8,427
Total non-current liabilities   2,459,562   7,935,612   1,117,708
             
Total Liabilities   119,349,042   160,836,513   22,653,349
             
             
Shareholders’ equity            
Ordinary shares   170   177   25
Additional paid-in capital   99,250,468   107,293,091   15,111,916
Statutory reserves   5,000   105,982   14,927
Accumulated other comprehensive income   3,322,238   4,723,760   665,328
Retained earnings   15,193,035   75,118,597   10,580,233
Total Shareholders’ Equity   117,770,911   187,241,607   26,372,429
             
Total Liabilities and Shareholders’ Equity   237,119,953   348,078,120   49,025,778
             
PDD HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME   (Amounts in thousands of RMB and US$)
 
    For the three months ended December 31,   For the year ended December 31,
    2022    2023   2022    2023
    RMB   RMB   US$   RMB   RMB   US$
    (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)   (Unaudited)
Revenues   39,820,028     88,881,036     12,518,632     130,557,589     247,639,205     34,879,253  
Costs of revenues   (8,926,705 )   (35,078,272 )   (4,940,671 )   (31,462,298 )   (91,723,577 )   (12,918,996 )
                         
Sales and marketing expenses   (17,732,384 )   (26,638,524 )   (3,751,958 )   (54,343,719 )   (82,188,870 )   (11,576,060 )
General and administrative expenses   (1,640,527 )   (1,904,842 )   (268,291 )   (3,964,935 )   (4,075,622 )   (574,039 )
Research and development expenses   (2,406,677 )   (2,864,430 )   (403,447 )   (10,384,716 )   (10,952,374 )   (1,542,610 )
Total operating expenses   (21,779,588 )   (31,407,796 )   (4,423,696 )   (68,693,370 )   (97,216,866 )   (13,692,709 )
                         
Operating profit   9,113,735     22,394,968     3,154,265     30,401,921     58,698,762     8,267,548  
                         
Interest and investment income, net   1,351,698     4,359,384     614,006     3,997,100     10,238,080     1,442,003  
Interest expenses   (12,221 )   (8,155 )   (1,149 )   (51,655 )   (43,987 )   (6,195 )
Foreign exchange (loss)/ gain   (23,819 )   (198,819 )   (28,003 )   (149,710 )   35,721     5,031  
Other income, net   168,825     328,204     46,227     2,221,358     2,952,579     415,862  
                         
Profit before income tax and share of results of equity investees   10,598,218     26,875,582     3,785,346     36,419,014     71,881,155     10,124,249  
Share of results of equity investees   (78,908 )   (15,066 )   (2,122 )   (155,285 )   (4,707 )   (663 )
Income tax expenses   (1,065,613 )   (3,580,207 )   (504,262 )   (4,725,667 )   (11,849,904 )   (1,669,024 )
Net income   9,453,697     23,280,309     3,278,962     31,538,062     60,026,544     8,454,562  
PDD HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands of RMB and US$, except for per share data)
         
    For the three months ended December 31,   For the year ended December 31,
    2022   2023   2022   2023
    RMB   RMB   US$   RMB   RMB   US$
    (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)   (Unaudited)
                         
Net income   9,453,697   23,280,309   3,278,962   31,538,062   60,026,544   8,454,562
Net income attributable to ordinary shareholders   9,453,697   23,280,309   3,278,962   31,538,062   60,026,544   8,454,562
                         
Earnings per ordinary share:                        
-Basic   1.85   4.25   0.60   6.24   11.08   1.56
-Diluted   1.63   3.96   0.56   5.48   10.29   1.45
                         
Earnings per ADS (4 ordinary shares equals 1 ADS ):                        
-Basic   7.42   17.00   2.39   24.94   44.33   6.24
-Diluted   6.52   15.83   2.23   21.93   41.15   5.80
                         
Weighted average number of outstanding ordinary shares (in thousands):                        
-Basic   5,099,138   5,478,111   5,478,111   5,057,540   5,416,106   5,416,106
-Diluted   5,809,212   5,882,980   5,882,980   5,761,291   5,839,630   5,839,630
PDD HOLDINGS INC.NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$)
         
    For the three months ended December 31,   For the year ended December 31,
    2022   2023   2022   2023
    RMB   RMB   US$   RMB   RMB   US$
    (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)   (Unaudited)
Revenues                        
- Online marketing services and others   31,023,400   48,675,618   6,855,817   102,931,095   153,540,553   21,625,735
- Transaction services   8,796,628   40,205,418   5,662,815   27,626,494   94,098,652   13,253,518
Total   39,820,028   88,881,036   12,518,632   130,557,589   247,639,205   34,879,253
                         
PDD HOLDINGS INC.NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$)
 
    For the three months ended December 31,   For the year ended December 31,
    2022   2023   2022   2023
    RMB   RMB   US$   RMB   RMB   US$
    (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)   (Unaudited)
Share-based compensation expenses included in:                        
Costs of revenues   11,777   46,404   6,536   33,788   132,470   18,658
Sales and marketing expenses   535,550   411,048   57,895   2,158,676   2,354,097   331,568
General and administrative expenses   1,279,760   1,230,358   173,292   3,004,327   2,289,272   322,437
Research and development expenses   659,298   497,134   70,020   2,521,574   2,302,955   324,364
Total   2,486,385   2,184,944   307,743   7,718,365   7,078,794   997,027

        

PDD HOLDINGS INC.  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$)
 
    For the three months ended December 31,   For the year ended December 31,
    2022    2023   2022   2023
    RMB   RMB   US$   RMB   RMB   US$
    (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)   (Unaudited)
Net cash generated from operating activities   26,550,262     36,890,671     5,195,942     48,507,860     94,162,531     13,262,515  
Net cash used in investing activities   (8,559,916 )   (16,470,671 )   (2,319,845 )   (22,361,670 )   (55,431,278 )   (7,807,332 )
Net cash generated from/ (used in) financing activities   9,510     (8,968,297 )   (1,263,158 )   10,079     (8,960,626 )   (1,262,078 )
Effect of exchange rate changes on cash, cash equivalents and restricted cash   (109,374 )   (1,025,057 )   (144,377 )   100,177     (291,139 )   (41,006 )
                         
Increase in cash, cash equivalents and restricted cash   17,890,482     10,426,646     1,468,562     26,256,446     29,479,488     4,152,099  
Cash, cash equivalents and restricted cash at beginning of period/ year   74,409,935     111,353,259     15,683,779     66,043,971     92,300,417     13,000,242  
Cash, cash equivalents and restricted cash at end of period/ year   92,300,417     121,779,905     17,152,341     92,300,417     121,779,905     17,152,341  
PDD HOLDINGS INC.RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES(Amounts in thousands of RMB and US$, except for per share data)
         
    For the three months ended December 31,   For the year ended December 31,
    2022   2023   2022   2023
    RMB   RMB   US$   RMB   RMB   US$
    (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)   (Unaudited)
Operating profit   9,113,735   22,394,968   3,154,265   30,401,921   58,698,762   8,267,548
Add: Share-based compensation expenses   2,486,385   2,184,944   307,743   7,718,365   7,078,794   997,027
Non-GAAP operating profit   11,600,120   24,579,912   3,462,008   38,120,286   65,777,556   9,264,575
                         
Net income attributable to ordinary shareholders   9,453,697   23,280,309   3,278,962   31,538,062   60,026,544   8,454,562
Add: Share-based compensation expenses   2,486,385   2,184,944   307,743   7,718,365   7,078,794   997,027
Add: Interest expenses related to convertible bonds’ amortization to face value   12,221   8,155   1,149   51,655   43,987   6,195
Add: Loss from fair value change of certain investments   153,467   3,052   430   221,640   749,967   105,631
Non-GAAP net income attributable to ordinary shareholders   12,105,770   25,476,460   3,588,284   39,529,722   67,899,292   9,563,415
                         
Non-GAAP diluted weighted-average number of ordinary shares outstanding (in thousands)   5,809,212   5,882,980   5,882,980   5,761,291   5,839,630   5,839,630
                         
Diluted earnings per ordinary share   1.63   3.96   0.56   5.48   10.29   1.45
Add: Non-GAAP adjustments to earnings per ordinary share   0.45   0.37   0.04   1.38   1.34   0.19
Non-GAAP diluted earnings per ordinary share   2.08   4.33   0.60   6.86   11.63   1.64
Non-GAAP diluted earnings per ADS   8.34   17.32   2.40   27.45   46.51   6.56

______________________

1 This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.0999 to US$1.00, the noon buying rate in effect on December 29, 2023 as set forth in the H.10 Statistical Release of the Federal Reserve Board.2 The Company’s non-GAAP financial measures exclude share-based compensation expenses, fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value. See “Reconciliation of Non-GAAP Measures to The Most Directly Comparable GAAP Measures” set forth at the end of this press release.

For investor and media inquiries, please contact:

investor@pddholdings.com
media@pddholdings.com
PDD (NASDAQ:PDD)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024 Click aqui para mais gráficos PDD.
PDD (NASDAQ:PDD)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024 Click aqui para mais gráficos PDD.