On August 26th, Pinduoduo released its Q2 2024 financial report as of June 30th!
According to the financial report, the company achieved a revenue of 97.06 billion yuan in the second quarter, up 86% from 52.281 billion yuan in the same period last year, and the market expectation is 99.985 billion yuan; The net profit attributable to ordinary shareholders of Pinduoduo was RMB 320.094 billion, a year-on-year increase of 144%; According to the US Generally Accepted Accounting Principles, the net profit attributable to Pinduoduo's common shareholders was 34.4321 billion yuan, a year-on-year increase of 125%.
Among them, revenue from online marketing services and other services was 49.1159 billion yuan (approximately 6.7586 billion US dollars), an increase of 29% compared to 37.9328 billion yuan in the same period of 2023.
The revenue from trading services was 47.9437 billion yuan (approximately 6.5973 billion US dollars), an increase of 234% compared to 14.3479 billion yuan in the same period of 2023.
Sales and marketing expenses amounted to 26.0491 billion yuan (approximately 3.5845 billion US dollars), an increase of 48% compared to 17.5422 billion yuan in the same period of 2023.
Although Pinduoduo has attracted budget conscious consumers with low prices and significant discounts for various products ranging from daily necessities to headphones, the company is facing pressure from major competitors to increase their platform promotion efforts.
The management of Pinduoduo Holdings stated that despite solid progress in the past few quarters, future revenue growth will inevitably face pressure from fierce competition and external challenges. The company will continue to steadfastly invest, which may affect its future profitability.
Zhao Jiazhen, Executive Director and Co CEO of Pinduoduo Group, stated that Pinduoduo will continue to increase investment in operations and technology, resolutely carry out ecological governance of the platform and merchants, crack down on illegal cheating merchants, promote the removal of the dross from the industrial belt, continuously optimize and upgrade the supply chain, and create a more effective and healthy ecological environment for new quality merchants.
Zhao Jiazhen stated that sacrificing short-term profits is necessary in this process, and the management has reached a consensus and is willing to pay a huge current price for long-term health. The profits in the coming quarters may fluctuate and rebound, but the trend of long-term profit decline is inevitable.
After the financial report was released, Pinduoduo's stock price plummeted by over 15% before the US stock market opened.