Alibaba Rival JD.com Achieves Strong Profitability in Q3, CEO Sandy Ran Xu Takes Helm as CEO of JD Retail

JD.com, Inc (NASDAQ: JD) reported third-quarter FY23 revenue growth of 1.7% year-on-year to $33.95 billion, missing the consensus of $34.61 billion.

The Alibaba Group Holding Limited BABA rival's adjusted net income per ADS of $0.92 beat the consensus of $0.80.

JD Segment Performance: JD.com's net product revenue declined by 0.9% Y/Y to $26.77 billion. Net service revenues rose 12.7% Y/Y to $7.18 billion. JD Retail revenue was flat Y/Y to $29.07 billion.

Margin: Adjusted operating margin expanded by 40 bps to 4.5%. Adjusted operating margin of JD Retail was 5.2%, flat Y/Y. 

JD.com generated $1.13 billion in free cash flow and held $34.3 billion in cash and equivalents.

"We reported steady top-line performance for the quarter with record profitability driven by our proactive efforts on enhancing price competitiveness and platform ecosystem, as well as our supply chain advantages," said Sandy Xu, Chief Executive Officer of JD.com. 

The Q4 consensus revenue and EPS are $42.26 billion and $0.70.

The stock has lost 54% YTD.

Price Action: JD shares traded higher by 5.02% at $28.05 in the premarket session on the last check Wednesday.