Pinduoduo, a Chinese e-commerce giant, has finally announced its financial results of the fourth quarter during pre-market hours on Wednesday. The Company reported a loss of shares by 16%.
It also reported that for the fourth quarter, earnings loss of USD 24 cents per share on revenue of USD 822.3 Million.
Despite their earnings miss, Pinduoduo’s revenue grew by almost 379% from last year’s same quarter.
Vice President of Finance, Mr. Tian Xu said: “The growth in our revenue is the result of the continued expansion of our buyer base and increasing user engagement, which translates to greater traffic and attractive advertising return on investments on our platform. To build on this momentum and increase mindshare with users, we will continue to invest strategically.”
This unexpected revenue was the result of an increase in active users of the Company. Pinduoduo has reported that there was a growth in the average monthly active users by 93%.
Active buyers in the fourth quarter were found to be 418.5 million, which had been increased by 71% YOY and the annual spending per active buyer was calculated to be 163.90 dollars, rising by 95% YOY.
The increase in revenue was due to the increase in online marketing services of Pinduoduo. The revenue from online marketing services increased by 470% YOY to736.3 Million dollars whereas the revenue from transaction services rose by 103% to 86 Million dollars for the quarter.
The Chairman and CEO of Pinduoduo, Zheng Huang said: “We had a strong finish to 2018 in the fourth quarter. GMV in the last twelve months increased 234% year-over-year to RMB 471.6 Billion. This was driven by the rapid growth in our annual active buyer base and a near doubling in the annual spending per active buyer. We view this as an indication of users’ growing trust in our platform, and will keep on innovating to satisfy our users’ evolving needs so they can have the best user experience possible.”