The chart below shows how DADA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DADA sees a +1.25% change in stock price 10 days leading up to the earnings, and a -1.71% change 10 days following the report. On the earnings day itself, the stock moves by +2.60%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
User and Order Growth: Year-on-year growth in monthly transacting users and orders through the JD App increased by over 100% this quarter.
Net Revenue Increase: Net revenues for Dada Now increased by 39% year-on-year to RMB 1.5 billion, driven by strengthened partnerships with chain merchants and enhanced delivery service quality.
Net Revenue Surge: Dada Now's net revenues for the first nine months of the year registered a 46% year-on-year growth to RMB 4.1 billion.
Order Volume Surge: Dada Now's order volume increased by 36% year-on-year to RMB 648 million, with gross billings growing by 33% year-on-year to RMB 3.1 billion.
Store Expansion Growth: The total number of operating stores increased by over 70% year-on-year to more than 600,000 stores.
Negative
Revenue Decline Analysis: Dada Group's total net revenues in the third quarter were RMB 2.4 billion, which reflects a significant decrease compared to previous quarters.
Financial Challenges Persist: Non-GAAP net loss in the third quarter was RMB 59 million, indicating ongoing financial challenges for the company.
Narrowing Net Loss Margin: Non-GAAP net loss margin was 2.4%, which is a narrowing by 3.7 percentage points compared to the previous quarter, but still reflects a loss.
Increased Operating Costs: Operating costs in the third quarter were RMB 1.7 billion, primarily due to increased rider costs resulting from higher order volumes.
Marketing Expense Reduction: Selling and marketing expenses decreased to RMB 717 million, primarily due to a reduction in promotional activities initiated by the company.
Dada Nexus Limited (DADA) Q3 2024 Earnings Call Transcript
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