PDD Holdings Reports Strong Q3 2024 Results Despite Missing Earnings Estimates

PDD Holdings Inc., the parent company of Chinese e-commerce platform Pinduoduo, released its third-quarter 2024 financial results on November 21, 2024. Despite missing earnings estimates, the company reported robust revenue growth and significant operational improvements.

The company’s total revenues for the third quarter reached RMB99.354 billion (approximately US$14.157 billion), representing a 44% year-over-year increase. This growth was primarily driven by increases in online marketing services and transaction services.

However, PDD Holdings’ adjusted earnings per American Depositary Share (ADS) of RMB18.59 (approximately $2.65) fell short of analyst estimates of RMB19.58, leading to a 10.7% decline in the company’s stock price in premarket trading.

Operating profit rose 46% to RMB24.292 billion ($3.46 billion), and net income grew 61% to RMB24.980 billion. Despite the earnings miss, the company’s strong top-line growth and increased spending on promotions and advertising reflect its commitment to long-term ecosystem development.

PDD Holdings faces intense competition in both domestic and international e-commerce markets from giants like Amazon, eBay, and Alibaba. However, the company’s strategic investments in technological innovation, agricultural digitization, and merchant support programs position it favorably for sustainable growth.

Chairman and Co-CEO Lei Chen emphasized the company’s commitment to investing in its platform ecosystem, stating that they are “committed to investing consistently and patiently in our platform ecosystem to deliver impactful results over the long run”.