PDD Earnings Prediction
The chart below shows how PDD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PDD sees a -0.33% change in stock price 10 days leading up to the earnings, and a -0.21% change 10 days following the report. On the earnings day itself, the stock moves by +2.04%. This data can give you a slight idea of what to expect for the next quarter's release.
PDD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
110.61B
24.45%
11.33%
Gross Margin
--
--
--
Operating Margin
--
--
--
Net Margin
--
--
--
EPS
--
--
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No Data Available
PDD Earnings Analysis
PDD Holdings Inc Corporation (PDD.O) Earnings Conference Call
Positive
Earnings Per Share Beat: PDD Holdings Inc. reported an EPS of $2.76, exceeding expectations of $2.56, indicating strong financial performance.
Q4 Revenue Surge: Q4 revenue reached RMB 110.6 billion, a 24% year-on-year increase, showcasing robust growth.
2024 Revenue Performance: Full year 2024 revenue totaled RMB 393.8 billion, growing 59% year-on-year, reflecting a strong overall performance.
Fee Reduction Program Benefits: The company implemented a 10 billion fee reduction program, benefiting over 10 million merchants by enhancing operational efficiency and reducing costs.
Logistics-Driven Order Growth: Logistics support measures for remote regions drove double-digit order growth and extended free shipping to nearly 100 million consumers.
Merchant Support Success: The high-quality merchant support program has successfully supported numerous high-quality merchants and brands, fostering innovation and growth.
Agriculture Technology Investments: PDD's long-term investments in agriculture technology and supply chain innovation have shown encouraging results, enhancing productivity and efficiency.
Merchant Experience Enhancement: The establishment of the Merchant Rights Protection Committee aims to improve communication with merchants and enhance their overall experience on the platform.
Non-GAAP Operating Profit Growth: Non-GAAP operating profit increased from RMB 65.8 billion to RMB 118.3 billion in 2024, demonstrating effective cost management and operational efficiency.
Strong Cash Generation: Net cash flow from operating activities was RMB 29.5 billion in Q4, indicating strong cash generation capabilities.
Negative
Moderated Revenue Growth: Revenue growth has moderated, with Q4 revenue growth at 24% year-on-year, down from previous higher growth rates.
Rising Operational Costs: Total cost of revenues increased significantly by 36% in Q4, indicating rising operational costs that could impact profitability.
Operating Expenses Concern: Total operating expenses increased by 19% in Q4, which may raise concerns about the company's cost management amidst revenue growth.
Profit Margin Decline: Non-GAAP operating profit margin decreased to 24% in Q4 from 28% in the same quarter of 2023, suggesting declining profitability despite revenue growth.
Increased Marketing Investment: Sales and marketing expenses increased by 19% in Q4, indicating a heavy investment in marketing that may not yield immediate returns.
R&D Expense Impact: Research and development expenses also increased, which, while necessary for long-term growth, could strain short-term financials.
Operating Expenses Concerns: The company reported a significant increase in total non-GAAP operating expenses for the full year, raising concerns about sustainability of profit margins.
PDD FAQs
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PDD Earning Call Sentiment
PDD Holdings Inc. (NASDAQ:PDD) Q4 2024 Earnings Call Transcript
PDD.O
3.24%Positive
The earnings call presents mixed signals: strong revenue growth and liquidity are positives, but declining margins, lack of share buyback, and unclear guidance pose concerns. The Q&A highlights external uncertainties and competitive pressures, dampening enthusiasm. The company's long-term focus and commitment to ecosystem investments could stabilize the stock, but short-term market reaction is likely muted due to mixed financial health and absence of clear positive catalysts.
