PDD Holdings Announces First Quarter 2025 Unaudited Financial Results

DUBLIN and SHANGHAI, May 27, 2025 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights Total revenues in the quarter were RMB95,672.2 million (US$1 13,184.0 million), an increase of 10% from RMB86,812.1 million in the same quarter of 2024.Operating profit in the quarter was RMB16,085.6 million (US$2,216.7 million), a decrease of 38% from RMB25,973.7 million in the same quarter of 2024. Non-GAAP2 operating profit in the quarter was RMB18,259.7 million (US$2,516.3 million), a decrease of 36% from RMB28,552.2 million in the same quarter of 2024.Net income attributable to ordinary shareholders in the quarter was RMB14,741.8 million (US$2,031.5 million), a decrease of 47% from RMB27,997.8 million in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB16,916.0 million (US$2,331.1 million), a decrease of 45% from RMB30,601.8 million in the same quarter of 2024. “In the first quarter, we made substantial investments in our platform ecosystem to support merchants and consumers amid rapid changes in the external environment,” said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. “These investments weighed on short-term profitability but gave merchants the room to adapt and focus on high-quality, sustainable growth, strengthening the long-term health of the platform.” “Amid growing uncertainties, we see enhanced merchant support as essential to building a healthy merchant ecosystem that can deliver satisfactory shopping experiences for consumers,” said Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings. “That is why we have made the strategic decision to increase our ecosystem investments to help drive sales and reduce costs for a broader base of SME merchants.” “As communicated previously, a slowdown in growth rate is expected as our business scales and challenges emerge. This trend has been further accelerated by the changes in the external environment in the first quarter,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “Our financial results may continue to reflect the impact of sustained investments in the ecosystem as we support merchants and consumers through uncertain times.” _____________________________1 This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 as set forth in the H.10 Statistical Release of the Federal Reserve Board.2 The Company’s non-GAAP financial measures exclude share-based compensation expenses and fair value change of certain investments. See “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.First Quarter 2025 Unaudited Financial Results Total revenues were RMB95,672.2 million (US$13,184.0 million), an increase of 10% from RMB86,812.1 million in the same quarter of 2024. The increase was primarily due to the increase in revenues from online marketing services and transaction services. Revenues from online marketing services and others were RMB48,722.2 million (US$6,714.1 million), an increase of 15% from RMB42,456.2 million in the same quarter of 2024.Revenues from transaction services were RMB46,950.0 million (US$6,469.9 million), an increase of 6% from RMB44,355.8 million in the same quarter of 2024. Total costs of revenues were RMB40,947.1 million (US$5,642.7 million), an increase of 25% from RMB32,694.7 million in the same quarter of 2024. The increase mainly came from the increased fulfilment fees and payment processing fees. Total operating expenses were RMB38,639.5 million (US$5,324.7 million), an increase of 37% from RMB28,143.7 million in the same quarter of 2024. The increase was primarily due to the increase in sales and marketing expenses. Sales and marketing expenses were RMB33,402.7 million (US$4,603.0 million), an increase of 43% from RMB23,410.7 million in the same quarter of 2024, mainly due to the increased spending in promotion and advertising activities.General and administrative expenses were RMB1,658.9 million (US$228.6 million), compared with RMB1,823.4 million in the same quarter of 2024.Research and development expenses were RMB3,577.8 million (US$493.0 million), compared with RMB2,909.6 million in the same quarter of 2024. Operating profit in the quarter was RMB16,085.6 million (US$2,216.7 million), a decrease of 38% from RMB25,973.7 million in the same quarter of 2024. Non-GAAP operating profit in the quarter was RMB18,259.7 million (US$2,516.3 million), a decrease of 36% from RMB28,552.2 million in the same quarter of 2024. Net income attributable to ordinary shareholders in the quarter was RMB14,741.8 million (US$2,031.5 million), a decrease of 47% from RMB27,997.8 million in the same quarter of 2024. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB16,916.0 million (US$2,331.1 million), a decrease of 45% from RMB30,601.8 million in the same quarter of 2024. Basic earnings per ADS was RMB10.59 (US$1.46) and diluted earnings per ADS was RMB9.94 (US$1.37), compared with basic earnings per ADS of RMB20.33 and diluted earnings per ADS of RMB18.96 in the same quarter of 2024. Non-GAAP diluted earnings per ADS was RMB11.41 (US$1.56), compared with RMB20.72 in the same quarter of 2024. Net cash generated from operating activities was RMB15,516.9 million (US$2,138.3 million), compared with RMB21,067.2 million in the same quarter of 2024. Cash, cash equivalents and short-term investments were RMB364.5 billion (US$50.2 billion) as of March 31, 2025, compared with RMB331.6 billion as of December 31, 2024. Other non-current assets were RMB76.2 billion (US$10.5 billion) as of March 31, 2025, compared with RMB83.4 billion as of December 31, 2024, which mainly included time deposits, held-to-maturity debt securities, and available-for-sale debt securities. Conference Call The Company’s management will hold an earnings conference call at 7:30 AM ET on May 27, 2025 (12:30 PM IST and 7:30 PM HKT on the same day). The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call. Use of Non-GAAP Financial Measures In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share, and non-GAAP diluted earnings per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s non-GAAP financial measures exclude the impact of share-based compensation expenses and fair value change of certain investments. The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses and fair value change of certain investments, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further information about the Company’s results of operations, and enhance the overall understanding of the Company’s past performance and future prospects. The Company’s non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. These non-GAAP financial measures do not reflect all items of income and expenses that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company’s financial information in its entirety and not rely on a single financial measure. For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.Safe Harbor Statements This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in the e-commerce markets globally and in the countries or regions where the Company has operations; changes in its revenues and certain cost or expense items; the expected growth of e-commerce markets globally and in the countries or regions where the Company has operations; developments in the relevant governmental policies and regulations relating to the Company’s industry; and general economic and business conditions globally and in the countries or regions where the Company has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.About PDD Holdings PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. For investor and media inquiries, please contact: investor@pddholdings.commedia@pddholdings.com PDD HOLDINGS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)) As of December 31, 2024 March 31, 2025 RMB RMB US$ (Unaudited) (Unaudited)ASSETS Current assets Cash and cash equivalents 57,768,053 70,126,217 9,663,651Restricted cash 68,426,368 65,131,872 8,975,412Receivables from online payment platforms 3,679,309 5,475,075 754,486Short-term investments 273,791,856 294,374,619 40,565,907Amounts due from related parties 7,569,180 7,411,701 1,021,360Prepayments and other current assets 4,413,466 5,254,619 724,106Total current assets 415,648,232 447,774,103 61,704,922 Non-current assets Property, equipment and software, net 879,327 810,743 111,723Intangible assets 19,170 18,224 2,511Right-of-use assets 5,064,351 5,621,015 774,597Deferred tax assets 15,998 62,764 8,649Other non-current assets 83,407,238 76,226,396 10,504,278Total non-current assets 89,386,084 82,739,142 11,401,758 Total Assets 505,034,316 530,513,245 73,106,680 PDD HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)) As of December 31, 2024 March 31, 2025 RMB RMB US$ (Unaudited) (Unaudited) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Amounts due to related parties 801,859 1,109,924 152,952Customer advances and deferred revenues 2,947,041 2,945,057 405,840Payable to merchants 91,655,947 92,515,127 12,748,925Accrued expenses and other liabilities 69,141,831 76,207,380 10,501,657Merchant deposits 16,460,600 16,620,020 2,290,300Convertible bonds, current portion 5,309,597 5,302,063 730,644Lease liabilities 2,105,978 2,325,177 320,418Total current liabilities 188,422,853 197,024,748 27,150,736 Non-current liabilities Lease liabilities 3,191,565 3,625,587 499,619Deferred tax liabilities 106,774 161,511 22,257Total non-current liabilities 3,298,339 3,787,098 521,876 Total Liabilities 191,721,192 200,811,846 27,672,612 Shareholders’ equity Ordinary shares 180 180 25Additional paid-in capital 117,829,308 120,003,756 16,536,960Statutory reserves 237,680 237,680 32,753Accumulated other comprehensive income 7,824,545 7,296,543 1,005,491Retained earnings 187,421,411 202,163,240 27,858,839Total Shareholders’ Equity 313,313,124 329,701,399 45,434,068 Total Liabilities and Shareholders’ Equity 505,034,316 530,513,245 73,106,680 PDD HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands of RMB and US$) For the three months ended March 31, 2024 2025 RMB RMB US$ (Unaudited) (Unaudited) (Unaudited)Revenues 86,812,059 95,672,175 13,183,978 Costs of revenues (32,694,686) (40,947,100) (5,642,661) Sales and marketing expenses (23,410,655) (33,402,741) (4,603,021)General and administrative expenses (1,823,445) (1,658,943) (228,608)Research and development expenses (2,909,620) (3,577,828) (493,038)Total operating expenses (28,143,720) (38,639,512) (5,324,667) Operating profit 25,973,653 16,085,563 2,216,650 Interest and investment income, net 5,048,589 223,125 30,747 Foreign exchange gain/(loss), net 214,518 (242,140) (33,368)Other income, net 1,881,248 3,261,292 449,418 Profit before income tax and share of results of equity investees 33,118,008 19,327,840 2,663,447 Share of results of equity investees (52,430) (105,180) (14,494)Income tax expenses (5,067,752) (4,480,831) (617,475)Net income 27,997,826 14,741,829 2,031,478 PDD HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands of RMB and US$, except for per share data) For the three months ended March 31, 2024 2025 RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) Net income 27,997,826 14,741,829 2,031,478 Net income attributable to ordinary shareholders 27,997,826 14,741,829 2,031,478 Earnings per ordinary share: -Basic 5.08 2.65 0.36 -Diluted 4.74 2.49 0.34 Earnings per ADS (4 ordinary shares equals 1 ADS ): -Basic 20.33 10.59 1.46 -Diluted 18.96 9.94 1.37 Weighted-average number of ordinary shares outstanding(in thousands): -Basic 5,509,682 5,567,803 5,567,803 -Diluted 5,907,021 5,932,325 5,932,325 PDD HOLDINGS INC.NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$) For the three months ended March 31, 2024 2025 RMB RMB US$ (Unaudited) (Unaudited) (Unaudited)Revenues - Online marketing services and others 42,456,243 48,722,171 6,714,094- Transaction services 44,355,816 46,950,004 6,469,884Total 86,812,059 95,672,175 13,183,978 PDD HOLDINGS INC.NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$) For the three months ended March 31, 2024 2025 RMB RMB US$ (Unaudited) (Unaudited) (Unaudited)Share-based compensation expenses included in: Costs of revenues 17,514 56,694 7,813Sales and marketing expenses 672,375 637,284 87,820General and administrative expenses 1,251,768 923,943 127,323Research and development expenses 636,885 556,212 76,648Total 2,578,542 2,174,133 299,604 PDD HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) For the three months ended March 31, 2024 2025 RMB RMB US$ (Unaudited) (Unaudited) (Unaudited)Net cash generated from operating activities 21,067,179 15,516,943 2,138,292 Net cash used in investing activities (28,290,121) (6,383,976) (879,736)Net cash generated from financing activities 30 219 30 Effect of exchange rate changes on cash, cash equivalents and restricted cash 147,924 (69,518) (9,579) (Decrease)/increase in cash, cash equivalents and restricted cash (7,074,988) 9,063,668 1,249,007 Cash, cash equivalents and restricted cash at beginning of period 121,779,905 126,194,421 17,390,056 Cash, cash equivalents and restricted cash at end of period 114,704,917 135,258,089 18,639,063 PDD HOLDINGS INC.RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES(Amounts in thousands of RMB and US$, except for per share data) For the three months ended March 31, 2024 2025 RMB RMB US$ (Unaudited) (Unaudited) (Unaudited)Operating profit 25,973,653 16,085,563 2,216,650Add: Share-based compensation expenses 2,578,542 2,174,133 299,604Non-GAAP operating profit 28,552,195 18,259,696 2,516,254 Net income attributable to ordinary shareholders 27,997,826 14,741,829 2,031,478Add: Share-based compensation expenses 2,578,542 2,174,133 299,604Add: Loss from fair value change of certain investments 25,437 - -Non-GAAP net income attributable to ordinary shareholders 30,601,805 16,915,962 2,331,082 Non-GAAP diluted weighted-average number of ordinary shares outstanding (in thousands) 5,907,021 5,932,325 5,932,325 Diluted earnings per ordinary share 4.74 2.49 0.34Add: Non-GAAP adjustments to earnings per ordinary share 0.44 0.36 0.05Non-GAAP diluted earnings per ordinary share 5.18 2.85 0.39Non-GAAP diluted earnings per ADS 20.72 11.41 1.56

PDD Holdings Announces First Quarter 2025 Unaudited Financial Results

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