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PDD Holdings Reports Mixed Q4 Results as Revenue Growth Slows

The Temu parent exceeded income forecasts but missed revenue expectations, highlighting challenges from rising costs and competitive pressures.

The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. REUTERS/Florence Lo/Illustration/File Photo
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(Markus Mainka - stock.adobe.com)

Overview

  • PDD Holdings reported Q4 2024 revenue of 110.61 billion yuan, falling short of analysts' expectations of 115.38 billion yuan.
  • Revenue growth slowed to 24% year-over-year, the company's weakest since 2022, reflecting economic and competitive headwinds.
  • Non-GAAP income for the quarter reached 29.85 billion yuan, surpassing forecasts, despite higher fulfillment and payment processing costs.
  • PDD faces intensifying competition from domestic rivals Alibaba and JD.com, as well as Amazon's new discount platform targeting Temu's market share.
  • U.S.-listed shares of PDD initially dropped but later recovered to a slight gain, reflecting mixed investor sentiment on the earnings report.