PDD Holdings, the parent company of e-commerce sites Temu and Pinduoduo, has experienced a significant increase in sales and profit during the second quarter. The company attributes this success to robust consumer demand.
Impressive Financial Performance
PDD reported a profit of $1.81 billion, translating to $1.24 per American depositary share (ADS). This represents a substantial improvement compared to approximately $1.33 billion, or 93 cents per ADS, earned in the same period last year.
Exceeding Analysts’ Expectations
Adjusted earnings per ADS reached $1.44, surpassing analysts’ predictions of $1.00 per share, according to FactSet. Furthermore, PDD’s revenue witnessed a remarkable 66% surge, amounting to $7.21 billion. Analysts surveyed by FactSet had initially anticipated sales of $5.95 billion.
Consumer Sentiment Boosts Demand
Co-Chief Executive Jiazhen Zhao stated, “Over the recent quarter, we saw a positive shift in consumer sentiment, leading to a rise in demand across various product sectors.” This positive sentiment has undoubtedly contributed to PDD’s impressive financial performance.
Market Response
Following the release of these exceptional results, the Nasdaq-listed ADSs in PDD experienced a significant increase of 13%, reaching $91.18 in premarket trading.