PDD Holdings (PDD) Reports Fourth Quarter 2024 And Fiscal Year 2024 Unaudited Financial Earnings Results

PDD Holdings Inc. (PDD) today announced its financial results for the latest quarter. The company reported a quarterly revenue of $15.15 billion, which fell short of the estimated $114.92 billion, marking a significant miss. Earnings per share met expectations, aligning with the estimated $19.84. Despite meeting EPS estimates, the substantial revenue shortfall highlights challenges the company faces in its current market environment.

Key Highlights:

• Total revenues for Q4 2024 were RMB110,610.1 million (US$115,153.5 million), a 24% increase from the same quarter in 2023.
• Operating profit for Q4 2024 was RMB25,592.2 million (US$3,506.1 million), a 14% increase from Q4 2023.
• Net income attributable to ordinary shareholders for Q4 2024 was RMB27,446.6 million (US$3,760.2 million), an 18% increase from Q4 2023.
• For the fiscal year 2024, total revenues were RMB393,836.1 million (US$53,955.3 million), a 59% increase from 2023.
• Fiscal year 2024 operating profit was RMB108,422.9 million (US$14,853.9 million), an 85% increase from 2023.
• Management emphasized a commitment to sustainable growth and high-quality development strategies.

Summary:

PDD Holdings reported strong financial results for the fourth quarter and fiscal year 2024, with significant growth in revenues and profits. The company achieved a 24% increase in total revenues for Q4 2024, reaching RMB110,610.1 million (US$115,153.5 million), driven by growth in online marketing and transaction services. Operating profit for the quarter rose by 14% to RMB25,592.2 million (US$3,506.1 million), while net income attributable to ordinary shareholders increased by 18% to RMB27,446.6 million (US$3,760.2 million). For the full fiscal year, PDD Holdings saw a 59% increase in total revenues, amounting to RMB393,836.1 million (US$53,955.3 million), and an 85% rise in operating profit to RMB108,422.9 million (US$14,853.9 million).

Management highlighted their strategic focus on sustainable growth and high-quality development. Mr. Lei Chen, Chairman and Co-CEO, stated, “In 2024, we remained committed to driving sustainable growth for both our platform ecosystem and the broader supply chain.” The company invested in platform operations and industry support policies to enhance its e-commerce ecosystem. Mr. Jiazhen Zhao, Executive Director and Co-CEO, emphasized the importance of leveraging digital capabilities to support consumers and merchants, creating an inclusive ecosystem. Looking forward, PDD Holdings plans to continue prioritizing investments in its platform ecosystem as a cornerstone of its long-term value creation strategy, as noted by Ms. Jun Liu, VP of Finance.

PDD Holdings Inc. (PDD) has experienced a notable price trajectory over the past year, with a recent uptick of 6.84% in the past week and a substantial 24.67% increase over the last three months. Despite these gains, the stock is down by 1.38% over the past year, indicating some volatility. On the fundamental side, PDD boasts a remarkably low price-to-earnings ratio of 6.92, suggesting potential undervaluation relative to its earnings. The company’s financial health is underscored by impressive growth metrics, including a two-year compound annual growth rate (CAGR) of 72.34% in earnings per share and 55.95% in revenue. Furthermore, PDD’s free cash flow has surged with a two-year CAGR of 104.76%, reflecting robust cash generation capabilities. The company’s return on invested capital stands at a strong 48.20%, and a net profit margin of 29.14% highlights its efficiency in converting revenue into profit. These fundamentals paint a picture of a company with strong growth potential, despite the recent fluctuations in its stock price.

PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace. It focuses on bringing businesses and people into the digital economy. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. The company was incorporated in 2015 and is based in Dublin, Ireland.