Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News


Pinduoduo shares jump 10% after Q2 2022 earnings release

Pinduoduo Inc (NASDAQ: PDD) is up 10% after announcing its Q2 2022 unaudited financial results. The company announced revenue of $4.69 million, representing a YoY increase of 36%. The rise was principally brought on by higher revenues from online transactions and marketing services, offset by lower product sales.

Pinduoduo benefiting from consumer sentiment

CEO Lei Chen said:

We saw a recovery in consumer sentiment in the second quarter especially during the 618-shopping festival, a reflection of the resilience of overall consumption. We remain committed to building a platform that serves as a force for good.

Online marketing services revenue was $3.758 billion representing a 39% increase from a year ago. On the other hand, Pinduoduo reported transaction services revenue of $928.1 million, representing a 107% YoY increase, and merchandise sales of $7.6 million, representing a 97% drop from Q2 2021.

The total cost of revenue increased 1% YoY to around $1.188 billion. In addition, the company announced total operating expenses of $2.206 billion, with sales and marketing expenses increasing $1.693 billion a 9% YoY, while general administrative expenses were $123.3 million, representing a 90% increase from last year.

VP Finance Jun Liu said:

The postponement of certain projects and lower business-related expenses during the first half of the quarter affected overall expenses in short term. Looking ahead, we stay dedicated to investing in areas such as agriculture and R&D to better serve our consumers.

Pinduoduo recorded 268% increase in net income attributed to shareholders

Operating profit was $1.2985 billion representing 335%, with non-GAAP operating profit of $1.573 billion. Net income attributed to shareholders was $1.328 billion, representing a YoY increase of 268%. Basic earnings per ADS were $1.05, while diluted earnings per ADS were $0.93. Non-GAAP diluted earnings were $1.13 per ADS.

Net cash flow from operating activities was $2.892 billion, attributed to changes in working capital and an increase in net income. At the end of the quarter, the company had cash, cash equivalents, and investments of $17.8 billion as of Jun 30, 2022.

The post Pinduoduo shares jump 10% after Q2 2022 earnings release appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Tele2 AB today announces a new partnership with security experts EBS to deliver a secure and managed IoT connectivity solution. Tele2 will support EBS...


    Anyone who has filled up the tank of their car this year will be aware of the rollercoaster ride that the price of oil...

    Latest News

    Sen. Patrick Leahy “was not feeling well” on Thursday and was admitted to the hospital overnight for observation, his office said in a statement....

    Latest News

    Joe Manchin is forcing Democrats into a brutal choice: Take a deal now to lower the costs of health care premiums and prescription drugs,...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023