Investors Cheer Pinduoduo's Q2 MAU Growth Despite Revenue Miss

Chinese agriculture and interactive commerce platform Pinduoduo Inc PDD reported second-quarter FY21 revenue growth of 89% year-on-year to $3.6 billion, missing the analyst consensus of $4.2 billion.
Pinduoduo's average monthly active users (MAU) increased 30% Y/Y to 738.5 million. Active buyers in the twelve months ended June 30 rose 24% Y/Y to 849.9 million.
Segments: Revenues from online marketing services and others rose 64% Y/Y to $2.8 billion, transaction services jumped 164% Y/Y to $465.8 million, merchandise sales were flat at $303.3 million.
Pinduoduo posted a positive non-GAAP operating profit of $493.3 million. The revenues, excluding merchandise sales, increased 73% Y/Y.
Non-GAAP earnings per ADS of $0.44 beat the consensus loss of $(0.15).
Pinduoduo generated $1.1 billion in operating cash flow and held $14.3 billion in cash and equivalents.
Pinduoduo announced the "10 Billion Agriculture Initiative" for the agricultural sector and rural areas.
Peers Amazon.com Inc AMZN and Alibaba Group Holding Ltd BABA also missed the revenue consensus as e-commerce growth weakened. Domestic regulatory crackdown further hampered the Chinese tech stocks.
Price Action: PDD shares traded higher by 11.60% at $90.50 in the premarket session on the last check Tuesday.

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