DUBLIN and SHANGHAI - PDD Holdings Inc. (NASDAQ: PDD), a leading multinational commerce group, reported a significant beat in its fourth-quarter earnings, with an adjusted EPS of RMB17.32, surpassing the analyst estimate of RMB11.28 by RMB6.04.
The company's revenue for the quarter also exceeded expectations, coming in at RMB88.88 billion against the consensus estimate of RMB79.49 billion.
The impressive financial performance, which represents a 123% increase in revenue from the same quarter last year, sent PDD shares climbing by 14.2%. This surge reflects investor confidence following the company's earnings and revenue beat, indicating a strong market response to PDD Holdings' latest financial results.
The company's operating profit for the quarter stood at RMB22.39 billion (US$3.15 billion), marking a 146% jump from the RMB9.11 billion reported in the fourth quarter of the previous year. Adjusted operating profit also saw a significant rise of 112% YoY, reaching RMB24.58 billion (US$3.46 billion).
Net income attributable to ordinary shareholders showed a similar trend, with a 146% increase to RMB23.28 billion (US$3.28 billion). The adjusted net income figure followed suit, with a 110% YoY increase to RMB25.48 billion (US$3.59 billion).
The company's management attributed the robust quarter to growing demand and positive consumer sentiment. "In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment," said Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings. He added that the company would continue to focus on providing great value and exceptional service.
For the fiscal year 2023, PDD Holdings also reported strong results, with total revenues reaching RMB247.64 billion (US$34.88 billion), a 90% increase from the previous year. The company's commitment to research and development was highlighted, with investments exceeding RMB10 billion for the second consecutive year, emphasizing its dedication to technology and agricultural advancements.
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