Pinduoduo's 2020 Q3 earnings report: surpassing Ali and crushing JD

On the evening of November 12th, Pinduoduo (NASDAQ: PDD) released its financial report for the third quarter as of September 30, 2020. The news of 731 million users and the first profit has caused Pinduoduo’s share price to rise, and its total market value exceeds With US$160 billion, it has become the fourth largest Internet company in China, second only to Alibaba, Tencent Holdings and Meituan Dianping.

1

According to Pinduoduo’s third quarter 2020 financial report, its revenue exceeded 14.2 billion yuan, an increase of 89% year-on-year. Under NON-GAAP, Pinduoduo's net profit was 466.4 million yuan. This is also the company's first profitable quarter since the company went public since the new CEO Chen Lei took over on July 1 this year.

2

As of the end of September this year, the number of active buyers on the platform has reached 731.3 million, which is equivalent to half of China using Pinduoduo, which is almost the same as Alibaba's 757 million yuan. A single quarter net increase of 48.1 million, more than 30 million more than Alibaba. The average number of monthly active users has reached 643.4 million, an increase of 74.6 million in a single quarter, an increase of 50% over the same period last year! According to Pinduoduo's current user growth momentum, it is not impossible to surpass Alibaba in the fourth quarter.

3

Costs and expenses: Pinduoduo's 2020Q3 cost was 3.26 billion yuan, a year-on-year increase of 78%; expenses were 12.245 billion yuan, a year-on-year increase of 45%. Among them, marketing expenses were 10.07 billion yuan, an increase of 46% year-on-year; management expenses were 369 million yuan, and R&D expenses were 1.8 billion yuan. It can be said to be a veritable "ten billion subsidy."

4

, as the leading domestic agricultural product uplink platform, in the third quarter, Pinduoduo's user access frequency, number of categories, and average daily usage time have all increased. The peak daily order volume on the platform has exceeded the 100 million single mark.