China’s fast-rising social e-commerce company Pinduoduo reported 79% growth of its GMV in the twelve-month period ended June 30, 2020 from RMB709.1 billion in the 12-month period ended June 30, 2019.
Its average monthly active users in Q2 2020 were 568.8 million, an increase of 55% from 366.0 million in the same quarter of 2019. Click To TweetPinduoduo’s active buyers in the 12-month period ended June 30, 2020 were 683.2 million, an increase of 41% from 483.2 million in the 12-month period ended June 30, 2019.
The annual spending per active buyer in the twelve-month period ended June 30, 2020 was RMB1,857.0 (US$262.8), an increase of 27% from RMB1,467.5 in the twelve-month period ended June 30, 2019.
Pinduoduo total revenues in the quarter were RMB12,193.3 million (US$1,725.9 million), an increase of 67% from RMB7,290.0 million in the same quarter of 2019. Pinduoduo stock, which was near a record high, dropped 13.5%, closing at US$84.
Financial Results
Total revenues were RMB12,193.3 million (US$1,725.9 million), an increase of 67% from RMB7,290.0 million in the same quarter of 2019. The increase was primarily due to an increase in revenues from online marketing services.
- Revenues from online marketing services were RMB11,054.7 million (US$1,564.7 million), an increase of 71% from RMB6,467.1 million in the same quarter of 2019.
- Revenues from transaction services were RMB1,138.6 million (US$161.2 million), an increase of 38% from RMB822.9 million in the same quarter of 2019.
Total costs of revenues were RMB2,662.1 million (US$376.8 million), an increase of 67% from RMB1,594.7 million in 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 RMB11,170.8 million (US$1,581.1 million), compared with RMB7,185.7 million in the same quarter of 2019.
- Sales and marketing expenses were RMB9,113.6 million (US$1,289.9 million), an increase of 49% from RMB6,103.7 million in the same quarter of 2019, mainly due to an increase in advertising expenses and promotion and coupon expenses.
- General and administrative expenses were RMB394.8 million (US$55.9 million), an increase of 42% from RMB278.3 million in the same quarter of 2019, primarily due to an increase in headcount.
- Research and development expenses were RMB1,662.4 million (US$235.3 million), an increase of 107% from RMB803.7 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.
Operating loss was RMB1,639.6 million (US$232.1 million), compared with RMB1,490.4 million in the same quarter of 2019. Non-GAAP operating loss was RMB725.1 million (US$102.6 million), compared with RMB898.4 million in the same quarter of 2019.
Net loss attributable to ordinary shareholders was RMB899.3 million (US$127.3 million), compared with RMB1,003.3 million in the same quarter of 2019. Non-GAAP net loss attributable to ordinary shareholders6 was RMB77.2 million (US$10.9 million), compared with RMB411.3 million in the same quarter of 2019.
Basic and diluted net loss per ADS were RMB0.75 (US$0.11), compared with RMB0.88 in the same quarter of 2019. Non-GAAP basic and diluted net loss per ADS were RMB0.06 (US$0.01), compared with RMB0.36 in the same quarter of 2019.
Net cash provided by operating activities was RMB5,495.3 million (US$777.8 million), compared with RMB4,148.0 million in the same quarter of 2019, primarily due to an increase in online marketing services revenues.
Cash, cash equivalents, and short-term investments were RMB49.0 billion (US$6.9 billion) as of June 30, 2020, compared with RMB41.1 billion as of December 31, 2019.
Top mobile shopping platforms in China: Taobao, Pinduoduo, JD
