Pinduoduo's revenue tripled in Q1 2021- PingWest

Pinduoduo's revenue tripled in Q1 2021

China's second-largest e-commerce company Pinduoduo announced Q1 2021 financial on Wednesday, beating Wall Street estimates.

Details: Total revenue more than tripled to 22.17 billion yuan ($3.47 billion) in the first quarter, boosted by Pinduoduo's online marketing services revenue. Analysts on average had expected revenue of 20.2 billion yuan, according to IBES data from Refinitiv.

Total operating expenses increased to RMB 15.568 billion ($2.376 billion), of which sales/marketing increased by 78%, general/administrative expenses increased by 4% and R&D increased by 51%

Operating losses narrowed to RMB 2,905.4 billion ($633 million), compared with RMB 4,119.3 billion in the first quarter of 2020. The adjusted loss was RMB 1.89 billion, beating the FactSet loss consensus of RMB 2.05 billion.

Monthly active users increased 49% to 724.6 million from 487.4 million. Active buyers for the last twelve months increased 31% to 823.3 million from 628.1 million from the previous twelve months.

Context: Pinduoduo, China's fastest-growing e-commerce platform, was listed on the Nasdaq Stock Exchange in New York in July 2018 only three years after its establishment.

As a major competitor to e-commerce giants such as Alibaba and JD.com, Pinduoduo's success is partly attributed to the "social shopping model," which encourages users to share links to items they purchase with friends and participate in group buying.

Pnduoduo is facing pressure as Chinese authorities are stepping up supervision in the tech sector. Recently, the state council called on Pinduoduo to “correct” some of its tactics for luring in new shoppers and strengthen its processes for introducing new merchants and tackling counterfeits on the platform. 

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