JD.com's Q1 Earnings: Revenue And EPS Beat, Adj. EBITDA Growth, CEO Credits Focus on User Experience And More

JD.com, Inc. (NASDAQ: JD) reported fiscal first-quarter 2024 revenue growth of 7% year over year to $36.02 billion, beating the analyst consensus estimate of $35.62 billion.

JD posted an adjusted net income per ADS of $0.78, beating the analyst consensus estimate of $0.64. The stock price gained after the results.

JD Segment Performance: JD.com's net product revenue increased by 6.6% year over year to $28.88 billion. Net service revenues rose 8.8% year over year to $7.14 billion. 

JD Retail revenue climbed 6.8% year over year to $31.42 billion, Logistics revenue gained to $5.84 billion, and the new business revenues fell to $675 million.

JD.com's marketing expenses rose 15.6% in the first quarter to $1.30 billion, forming 3.6% of revenues. The rise was mainly due to the increased spending in promotion activities including the Spring Festival Gala sponsorship.

Margin: Operating margin was 3.0% for the quarter, compared to 2.6% year over year. Adjusted operating margin improved 20 bps year over year to 3.4%. JD Retail's operating margin was 4.1%, versus 4.6% year over year. 

Adjusted EBITDA increased 13.6% year over year to $1.50 billion, with a 4.1% margin.

JD.com used $2.14 billion in free cash flow for the quarter, used $1.57 billion in operating cash flow, and held $24.8 billion in cash and equivalents as of March 31, 2024.

Sandy Xu, CEO of JD.com, said, "In particular, in the first quarter, our focus on user experience helped to drive strong growth in the number of active users as well as user engagement." 

JD.Com stock lost over 11% in the last 12 months.

Investors can gain exposure to JD.com via Invesco Golden Dragon China ETF PGJ and Global X E-Commerce ETF EBIZ.

Price Action: JD shares traded higher by 4.43% at $35.10 in the premarket session at the last check Thursday.

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