Investing.com -- PDD Holdings (NASDAQ:PDD) shares surged in premarket U.S. trading on Tuesday after the group formerly known as Pinduoduo posted better than anticipated sales in the third quarter.
Revenue at the company came in at 68.84 billion yuan ($9.44B) in the three months ended Sept. 30, topping Bloomberg consensus estimates of 54.87 billion yuan. Adjusted earnings per American depositary receipts of 11.61 yuan ($1.55) also beat projections of 8.81 yuan.
"Throughout the past third quarter, consumption vitality kept improving. We continued to provide consumers with more savings and better service through increased investments,” said PDD Co-Chief Executive Officer Jiazhen Zhao in a statement.
The results come as PDD's Temu e-commerce app, which offers heavily discounted items that are shipped to customers directly from China, has seen a surge in popularity since it was launched in 2022. According to analysts cited by Reuters, it is expected to generate over $16B in revenue this year despite heavy competition from Chinese low-price fast-fashion retailer Shein.