Pinduoduo Clocks 3% Revenue Growth In Q4 Backed By Strategic Shift

Pinduoduo Inc PDD reported fourth-quarter FY21 revenue growth of 3% year-on-year to $4.27 billion, missing the consensus of $4.76 billion.
Average monthly active users rose 2% Y/Y to 733.4 million.
Active buyers in the twelve months ended December 31, 2021, increased 10% Y/Y to 868.7 million. Annual spending per active buyer rose 33% Y/Y to $441.0.
Revenues from online marketing services and others rose 19% Y/Y to $3.52 billion.
Revenues from transaction services jumped 108% Y/Y to $741.3 million.
Revenues from merchandise sales declined 98% Y/Y to $12.8 million.
Pinduoduo posted a non-GAAP operating profit of $1.32 billion.
Non-GAAP earnings per ADS of $0.92 beat the consensus of $0.35.
Pinduoduo held $14.6 billion in cash and equivalents and generated $2.57 billion in operating cash flow.
"In 2021, we made the strategic shift from sales and marketing toward research and development," said Chair and CEO Lei Chen. "We see ourselves making more long-term investment, especially in agriculture and R&D."
"Similar to the last two quarters, we will allocate profits from the fourth quarter to the 10 Billion Agriculture Initiative to deepen our digital inclusion efforts in agriculture," Chen added.
Pinduoduo won 61 billion orders, representing a 59% increase Y/Y, driven by surging agricultural orders.
Price Action: PDD shares traded higher by 4.62% at $44.45 in the premarket on the last check Monday.

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