DUBLIN and SHANGHAI - PDD Holdings Inc. (NASDAQ:PDD) reported third quarter earnings that fell short of analyst expectations, sending shares plunging 10.7% in premarket trading Thursday.
The Chinese e-commerce giant posted adjusted earnings per ADS of RMB18.59 ($2.65), missing estimates of RMB19.58. Revenue grew 44% year-over-year to RMB99.35 billion ($14.16 billion), but came in below the consensus forecast of RMB102.87 billion.
While PDD Holdings delivered strong top-line growth, investors were disappointed by weaker-than-expected results and guidance. The company said its "topline growth further moderated quarter-on-quarter amid intensified competition and ongoing external challenges."
Operating profit rose 46% to RMB24.29 billion ($3.46 billion). However, sales and marketing expenses jumped 40% as the company increased spending on promotions and advertising.
"We are committed to investing consistently and patiently in our platform ecosystem to deliver impactful results over the long run," said Chairman and Co-CEO Lei Chen.
For the fourth quarter, PDD Holdings provided cautious commentary, noting it will "continue to invest resolutely in building a healthy and sustainable ecosystem, which will be reflected in our results."
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