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Dec 31, 2024

PDD Holdings Q4 2024 Earnings Report

PDD Holdings reported strong financial performance with double-digit growth in revenue, net income, and operating profit in Q4 2024.

Key Takeaways

PDD Holdings delivered robust results in Q4 2024, with total revenue reaching $15.15 billion, an increase of 24% year-over-year. The company reported net income of $3.76 billion and operating income of $3.51 billion. Non-GAAP EPS stood at $2.76 per ADS, reflecting continued growth driven by increased revenue from both transaction services and online marketing services.

Revenue increased 24% YoY to $15.15 billion.

Net income rose 18% YoY to $3.76 billion.

Operating income reached $3.51 billion, up 14%.

Non-GAAP EPS was $2.76 per ADS, reflecting sustained profitability growth.

Total Revenue
$15.2B
Previous year: $12.3B
+23.2%
EPS
$2.76
Previous year: $2.4
+15.0%
Sales & marketing
$4.3B
Previous year: $3.64B
+17.9%
G&A expenses
$286M
Previous year: $261M
+9.5%
R&D expenses
$517M
Previous year: $392M
+31.9%
Cash and Equivalents
$45.4B
Previous year: $39.4B
+15.3%

PDD Holdings

PDD Holdings

PDD Holdings Revenue by Segment

Forward Guidance

The company aims to continue investing in platform enhancements and merchant support while navigating macroeconomic uncertainties.

Positive Outlook

  • Continuous investments in platform ecosystem.
  • Strong growth in transaction services revenue.
  • Sustained increase in online marketing revenues.
  • Solid cash position with $45.4 billion in reserves.
  • Management focus on long-term value creation.

Challenges Ahead

  • Rising fulfillment and payment processing fees.
  • Higher sales and marketing expenses impacting margins.
  • Fluctuating foreign exchange impact.
  • Increased R&D spending leading to higher operational costs.
  • Potential macroeconomic headwinds affecting consumer demand.