Pinduoduo generated 471.6 billion yuan (US$268.6 billion) in GMV in the twelve-month period ended December 31, 2018, an increase of 234% year-on-year. This was driven by the rapid growth in the annual active buyer base and a near doubling in the annual spending per active buyer. Average monthly active users in the fourth quarter were 272.6 million, an increase of 93% year-on-year.
In the twelve-month period ended December 31, 2018, the number of Pinduoduo’s active buyers was 418.5 million, an increase of 71% year-on-year. Annual spending per active buyer was 1,126.9 yuan (US$163.9), an increase of 95% year-on-year.
Total revenues were 13,120.0 million yuan (US$1,908.2 million), a 652% increase year-on-year.
- revenues from online marketing services grew by 852% year-on-year to 11,515.6 million yuan (US$1,674.9 million);
- revenues from transaction services grew by 202% to 1,604.4 million yuan (US$233.4 million);
- revenues from merchandise sale were nil, a decrease of 100% year-on-year.
Non-GAAP operating loss was 3,958.2 million yuan (US$575.7 million), compared with 469.2 million yuan in 2017.
In the fourth quarter, revenues went up by 379% year-on-year or 68% quarter-on-quarter to 5,653.9 million (US$822.3 million).
- revenues from online marketing services increased by 470% year-on-year or 70% quarter-on-quarter to 5,062.4 million yuan (US$736.3 million);
- revenues from transaction services increased by 103% year-on-year or 49% quarter-on-quarter to 591.5 million yuan (US$86.0 million).
According to a report by UBS, Pinduoduo’s user retention rate is higher than any other e-commerce platforms in China. It also estimated startup Pinduoduo’s annual gross merchandise volume is expected to maintain compound annual growth of over 60 percent in the next three years to surpass the country’s second-largest e-commerce platform JD.Com in 2021.
Pinduoduo launched a program last December to support about 1,000 OEMs with traffic and brand exposure. These factories also offer live streaming to tackle concerns of Chinese consumers about product quality.
Pinduoduo has risen to be the second largest e-commerce platform by total annual active users, following Alibaba (636 million). JD.com’s annual active users totaled 305 million in 2018. Pinduoduo’s AAU is to reach 628 million in 2021. Read more here why Pinduoduo is not another Taobao or Tmall.