Chinese eCommerce startup Pinduoduo, which is also China’s largest agriculture platform, reported a 3% increase in revenue for the fourth quarter and a 46% increase in gross merchandise value (GMV) for the full year of 2021 compared to the prior year.
The full-year GMV was ¥2.4 trillion ($383 billion) compared to ¥1.7 trillion in the 12-month period ended Dec. 31, 2020. Total revenues in the fourth quarter were ¥27.2 billion ($4.3 billion), from ¥26.5 billion year over year.
The increase was due to a boost in revenues from online marketing services and transaction services, offset by the decrease in revenues from merchandise sales, according to a press release on Monday (March 21).
Sales for the quarter missed analysts’ estimates, according to reports. It is the slowest rate of growth since the Pinduoduo went public in the U.S. on Nasdaq in 2018.
Net income attributable to ordinary shareholders in the quarter was ¥6.6 billion ($1 billion), compared with net loss of ¥1.38 billion in the same quarter of 2020.
Total operating expenses for the quarter were ¥13.8 billion, compared with ¥17.1 billion in the same quarter the previous year. Sales and marketing expenses were down 23% to ¥11.4 billion from ¥14.7 billion. General and admin expenses increased 4% to ¥420 million, and R&D overhead went up 4% to ¥2 billion.
Operating profit in the quarter was ¥6.9 billion compared with an operating loss of ¥2.1 billion in the same quarter of 2020.
Total revenues for the full year of 2021 were up 58% to ¥93.9 billion ($14.7 billion), from ¥59.5 billion in 2020. The increase was primarily due to a rise in revenues from online marketing and transaction services. Read more: Pinduoduo Founder Moves On As Business Beats Out Alibaba Revenues from online marketing services and others were up 51% to ¥72.6 billion ($11.4 billion), up from […]
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