PDD Holdings, the parent company of the e-commerce platforms Pinduoduo and Temu, has reported its performance for the second quarter of 2024 with a total revenue of 97,059.5 million yuan, marking an 86% increase from the same quarter last year. The net profit under GAAP accounting stood at 32,009.4 million yuan.
Despite the robust growth in performance, PDD’s stock price plummeted by over 25% following the earnings report. Lei Chen, the CEO of PDD, mentioned that the company will be investing more in upgrading various aspects of the platform, which may impact short-term profit figures.
PDD categorizes its revenue into two parts: online marketing services revenue increased by 29% to 49,115.9 million yuan, while transaction-related revenue saw a significant surge of 234% to 47,943.7 million yuan.
Source: PDD and South China Morning Post
TLDR: PDD Holdings reported a substantial increase in revenue for the second quarter of 2024, but stock price dipped post-earnings as the company plans to invest more in platform improvements.
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