PDD Holdings Announces Fourth Quarter 2024 and Fiscal Year 2024 Unaudited Financial Results

DUBLIN and SHANGHAI, March 20, 2025 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the fourth quarter ended and the fiscal year ended December 31, 2024. Fourth Quarter 2024 Highlights Total revenues in the quarter were RMB110,610.1 million (US$115,153.5 million), an increase of 24% from RMB88,881.0 million in the same quarter of 2023.Operating profit in the quarter was RMB25,592.2 million (US$3,506.1 million), an increase of 14% from RMB22,395.0 million in the same quarter of 2023. Non-GAAP2 operating profit in the quarter was RMB27,996.5 million (US$3,835.5 million), an increase of 14% from RMB24,579.9 million in the same quarter of 2023.Net income attributable to ordinary shareholders in the quarter was RMB27,446.6 million (US$3,760.2 million), an increase of 18% from RMB23,280.3 million in the same quarter of 2023. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB29,850.9 million (US$4,089.6 million), an increase of 17% from RMB25,476.5 million in the same quarter of 2023. “In 2024, we remained committed to driving sustainable growth for both our platform ecosystem and the broader supply chain,” said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. “Through targeted innovations in platform operations and industry support policies, we continue to drive our high-quality development strategy to benefit the broader e-commerce ecosystem.” “Over the past year, we invested consistently in our platform ecosystem,” said Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings. “Leveraging our digital capabilities, we continued to give back to consumers and support quality merchants, building an inclusive ecosystem that creates value for all participants.” “This quarter, we delivered stable financial results supported by the resolute execution of our high-quality development strategy,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “Looking ahead, we will continue to prioritize investments in the platform ecosystem as the cornerstone of our long-term value creation strategy.” ________________________________1 This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 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, fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value. See “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.Fourth Quarter 2024 Unaudited Financial Results Total revenues were RMB110,610.1 million (US$15,153.5 million), an increase of 24% from RMB88,881.0 million in the same quarter of 2023. 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 RMB57,011.1 million (US$7,810.5 million), an increase of 17% from RMB48,675.6 million in the same quarter of 2023.Revenues from transaction services were RMB53,599.0 million (US$7,343.0 million), an increase of 33% from RMB40,205.4 million in the same quarter of 2023. Total costs of revenues were RMB47,798.4 million (US$6,548.4 million), an increase of 36% from RMB35,078.3 million in the same quarter of 2023. The increase mainly came from the increased fulfilment fees and payment processing fees. Total operating expenses were RMB37,219.5 million (US$5,099.1 million), an increase of 19% from RMB31,407.8 million in the same quarter of 2023. The increase was primarily due to the increase in sales and marketing expenses. Sales and marketing expenses were RMB31,356.9 million (US$4,295.9 million), an increase of 18% from RMB26,638.5 million in the same quarter of 2023, mainly due to the increased spending in promotion and advertising activities.General and administrative expenses were RMB2,085.4 million (US$285.7 million), compared with RMB1,904.8 million in the same quarter of 2023.Research and development expenses were RMB3,777.2 million (US$517.5 million), compared with RMB2,864.4 million in the same quarter of 2023. Operating profit in the quarter was RMB25,592.2 million (US$3,506.1 million), an increase of 14% from RMB22,395.0 million in the same quarter of 2023. Non-GAAP operating profit in the quarter was RMB27,996.5 million (US$3,835.5 million), an increase of 14% from RMB24,579.9 million in the same quarter of 2023. Net income attributable to ordinary shareholders in the quarter was RMB27,446.6 million (US$3,760.2 million), an increase of 18% from RMB23,280.3 million in the same quarter of 2023. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB29,850.9 million (US$4,089.6 million), an increase of 17% from RMB25,476.5 million in the same quarter of 2023. Basic earnings per ADS was RMB19.76 (US$2.71) and diluted earnings per ADS was RMB18.53 (US$2.54), compared with basic earnings per ADS of RMB17.00 and diluted earnings per ADS of RMB15.83 in the same quarter of 2023. Non-GAAP diluted earnings per ADS was RMB20.15 (US$2.76), compared with RMB17.32 in the same quarter of 2023. Net cash generated from operating activities was RMB29,547.2 million (US$4,047.9 million), compared with RMB36,890.7 million in the same quarter of 2023. Cash, cash equivalents and short-term investments were RMB331.6 billion (US$45.4 billion) as of December 31, 2024, compared with RMB217.2 billion as of December 31, 2023. Other non-current assets were RMB83.4 billion (US$11.4 billion) as of December 31, 2024, compared with RMB48.0 billion as of December 31, 2023, which mainly included time deposits, held-to-maturity debt securities, and available-for-sale debt securities. Fiscal Year 2024 Unaudited Financial Results Total revenues were RMB393,836.1 million (US$53,955.3 million), an increase of 59% from RMB247,639.2 million in 2023. 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 RMB197,934.2 million (US$27,116.9 million), an increase of 29% from RMB153,540.6 million in 2023.Revenues from transaction services were RMB195,901.9 million (US$26,838.5 million), an increase of 108% from RMB94,098.7 million in 2023. Total costs of revenues were RMB153,900.4 million (US$21,084.3 million), an increase of 68% from RMB91,723.6 million in 2023. The increase mainly came from the increased fulfilment fees and payment processing fees. Total operating expenses were RMB131,512.9 million (US$18,017.2 million), an increase of 35% from RMB97,216.9 million in 2023. The increase was primarily due to the increase in sales and marketing expenses. Sales and marketing expenses were RMB111,300.5 million (US$15,248.1 million), an increase of 35% from RMB82,188.9 million in 2023, mainly due to the increased spending in promotion and advertising activities.General and administrative expenses were RMB7,553.0 million (US$1,034.8 million), an increase of 85% from RMB4,075.6 million in 2023, primarily due to the increase in staff related costs.Research and development expenses were RMB12,659.4 million (US$1,734.3 million), compared with RMB10,952.4 million in 2023. Operating profit was RMB108,422.9 million (US$14,853.9 million), an increase of 85% from RMB58,698.8 million in 2023. Non-GAAP operating profit was RMB118,306.4 million (US$16,207.9 million), an increase of 80% from RMB65,777.6 million in 2023. Net income attributable to ordinary shareholders was RMB112,434.5 million (US$15,403.5 million), an increase of 87% from RMB60,026.5 million in 2023. Non-GAAP net income attributable to ordinary shareholders was RMB122,343.6 million (US$16,761.0 million), an increase of 80% from RMB67,899.3 million in 2023. Basic earnings per ADS was RMB81.24 (US$11.13) and diluted earnings per ADS was RMB76.01 (US$10.41), compared with basic earnings per ADS of RMB44.33 and diluted earnings per ADS of RMB41.15 in 2023. Non-GAAP diluted earnings per ADS was RMB82.71 (US$11.32), compared with RMB46.51 in 2023. Net cash generated from operating activities was RMB121,929.3 million (US$16,704.2 million), compared with RMB94,162.5 million in 2023, mainly due to the increase in net income and the changes in working capitals.Conference Call The Company’s management will hold an earnings conference call at 7:30 AM ET on March 20, 2025 (11:30 AM GMT 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, fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value. 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, fair value change of certain investments, and interest expenses related to the convertible bonds’ amortization to face value, 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. PDD HOLDINGS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)) As of December31, 2023 December 31, 2024 RMB RMB US$ (Unaudited) (Unaudited) ASSETS Current assets Cash and cash equivalents 59,794,469 57,768,053 7,914,191Restricted cash 61,985,436 68,426,368 9,374,374Receivables from online payment platforms 3,914,117 3,679,309 504,063Short-term investments 157,415,365 273,791,856 37,509,330Amounts due from related parties 7,428,070 7,569,180 1,036,973Prepayments and other current assets 4,213,015 4,413,466 604,643Total current assets 294,750,472 415,648,232 56,943,574 Non-current assets Property, equipment and software, net 979,597 879,327 120,467Intangible assets 21,148 19,170 2,626Right-of-use assets 4,104,889 5,064,351 693,813Deferred tax assets 270,738 15,998 2,192Other non-current assets 47,951,276 83,407,238 11,426,745Total non-current assets 53,327,648 89,386,084 12,245,843 Total Assets 348,078,120 505,034,316 69,189,417 PDD HOLDINGS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”)) As of December31, 2023 December 31, 2024 RMB RMB US$ (Unaudited) (Unaudited) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Amounts due to related parties 1,238,776 801,859 109,854Customer advances and deferred revenues 2,144,610 2,947,041 403,743Payable to merchants 74,997,252 91,655,947 12,556,813Accrued expenses and other liabilities 55,351,399 69,141,831 9,472,391Merchant deposits 16,878,746 16,460,600 2,255,093Convertible bonds, current portion 648,570 5,309,597 727,412Lease liabilities 1,641,548 2,105,978 288,518Total current liabilities 152,900,901 188,422,853 25,813,824 Non-current liabilities Convertible bonds 5,231,523 - -Lease liabilities 2,644,260 3,191,565 437,243Deferred tax liabilities 59,829 106,774 14,628Total non-current liabilities 7,935,612 3,298,339 451,871 Total Liabilities 160,836,513 191,721,192 26,265,695 Shareholders’ equity Ordinary shares 177 180 25Additional paid-in capital 107,293,091 117,829,308 16,142,549Statutory reserves 105,982 237,680 32,562Accumulated other comprehensive income 4,723,760 7,824,545 1,071,958Retained earnings 75,118,597 187,421,411 25,676,628Total Shareholders’ Equity 187,241,607 313,313,124 42,923,722 Total Liabilities and Shareholders’ Equity 348,078,120 505,034,316 69,189,417 PDD HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands of RMB and US$) For the three months ended December 31, For the year ended December 31, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)Revenues 88,881,036 110,610,106 15,153,522 247,639,205 393,836,097 53,955,324 Costs of revenues (35,078,272) (47,798,376) (6,548,351) (91,723,577) (153,900,374) (21,084,265) Sales and marketing expenses (26,638,524) (31,356,941) (4,295,883) (82,188,870) (111,300,533) (15,248,111)General and administrative expenses (1,904,842) (2,085,396) (285,698) (4,075,622) (7,552,967) (1,034,752)Research and development expenses (2,864,430) (3,777,178) (517,471) (10,952,374) (12,659,361) (1,734,325)Total operating expenses (31,407,796) (37,219,515) (5,099,052) (97,216,866) (131,512,861) (18,017,188) Operating profit 22,394,968 25,592,215 3,506,119 58,698,762 108,422,862 14,853,871 Interest and investment income, net 4,359,384 5,233,232 716,950 10,238,080 20,553,493 2,815,817 Interest expenses (8,155) - - (43,987) - - Foreign exchange (loss)/gain (198,819) 860,526 117,892 35,721 587,866 80,537 Other income, net 328,204 726,735 99,562 2,952,579 3,119,847 427,417 Profit before income tax and share of results of equity investees 26,875,582 32,412,708 4,440,523 71,881,155 132,684,068 18,177,642 Share of results of equity investees (15,066) 116,725 15,991 (4,707) 17,225 2,360 Income tax expenses (3,580,207) (5,082,796) (696,340) (11,849,904) (20,266,781) (2,776,538)Net income 23,280,309 27,446,637 3,760,174 60,026,544 112,434,512 15,403,464 PDD HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands of RMB and US$, except for per share data) For the three months ended December 31, For the year ended December 31, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net income 23,280,309 27,446,637 3,760,174 60,026,544 112,434,512 15,403,464Net income attributable to ordinary shareholders 23,280,309 27,446,637 3,760,174 60,026,544 112,434,512 15,403,464 Earnings per ordinary share: -Basic 4.25 4.94 0.68 11.08 20.31 2.78-Diluted 3.96 4.63 0.63 10.29 19.00 2.60 Earnings per ADS (4 ordinary shares equals 1 ADS): -Basic 17.00 19.76 2.71 44.33 81.24 11.13-Diluted 15.83 18.53 2.54 41.15 76.01 10.41 Weighted-average number of outstanding ordinary shares (in thousands): -Basic 5,478,111 5,556,776 5,556,776 5,416,106 5,536,049 5,536,049-Diluted 5,882,980 5,925,278 5,925,278 5,839,630 5,916,592 5,916,592 PDD HOLDINGS INC.NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$) For the three months ended December 31, For the year ended December 31, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)Revenues - Online marketing services and others 48,675,618 57,011,061 7,810,483 153,540,553 197,934,192 27,116,873- Transaction services 40,205,418 53,599,045 7,343,039 94,098,652 195,901,905 26,838,451Total 88,881,036 110,610,106 15,153,522 247,639,205 393,836,097 53,955,324 PDD HOLDINGS INC.NOTES TO FINANCIAL INFORMATION(Amounts in thousands of RMB and US$) For the three months ended December 31, For the year ended December 31, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)Share-based compensation expenses included in: Costs of revenues 46,404 312,776 42,850 132,470 412,721 56,543Sales and marketing expenses 411,048 256,314 35,115 2,354,097 2,216,792 303,699General and administrative expenses 1,230,358 1,087,472 148,983 2,289,272 4,742,816 649,763Research and development expenses 497,134 747,693 102,434 2,302,955 2,511,235 344,038Total 2,184,944 2,404,255 329,382 7,078,794 9,883,564 1,354,043 PDD HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in thousands of RMB and US$) For the three months ended December 31, For the year ended December 31, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)Net cash generated from operating activities 36,890,671 29,547,160 4,047,944 94,162,531 121,929,292 16,704,245 Net cash used in investing activities (16,470,671) (30,545,257) (4,184,683) (55,431,278) (118,356,036) (16,214,711)Net cash (used in)/generated from financing activities (8,968,297) 274 38 (8,960,626) 1,164 159 Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,025,057) 1,503,749 206,013 (291,139) 840,096 115,093 Increase in cash, cash equivalents and restricted cash 10,426,646 505,926 69,312 29,479,488 4,414,516 604,786 Cash, cash equivalents and restricted cash at beginning of period/year 111,353,259 125,688,495 17,219,253 92,300,417 121,779,905 16,683,779 Cash, cash equivalents and restricted cash at end of period/year 121,779,905 126,194,421 17,288,565 121,779,905 126,194,421 17,288,565 PDD HOLDINGS INC.RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES(Amounts in thousands of RMB and US$, except for per share data) For the three months ended December 31, For the year ended December 31, 2023 2024 2023 2024 RMB RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)Operating profit 22,394,968 25,592,215 3,506,119 58,698,762 108,422,862 14,853,871Add: Share-based compensation expenses 2,184,944 2,404,255 329,382 7,078,794 9,883,564 1,354,043Non-GAAP operating profit 24,579,912 27,996,470 3,835,501 65,777,556 118,306,426 16,207,914 Net income attributable to ordinary shareholders 23,280,309 27,446,637 3,760,174 60,026,544 112,434,512 15,403,464Add: Share-based compensation expenses 2,184,944 2,404,255 329,382 7,078,794 9,883,564 1,354,043Add: Interest expenses related to convertible bonds’ amortization to face value 8,155 - - 43,987 - -Add: Loss from fair value change of certain investments 3,052 29 4 749,967 25,485 3,491Non-GAAP net income attributable to ordinary shareholders 25,476,460 29,850,921 4,089,560 67,899,292 122,343,561 16,760,998 Non-GAAP diluted weighted-average number of ordinary shares outstanding (in thousands) 5,882,980 5,925,278 5,925,278 5,839,630 5,916,592 5,916,592 Diluted earnings per ordinary share 3.96 4.63 0.63 10.29 19.00 2.60Add: Non-GAAP adjustments to earnings per ordinary share 0.37 0.41 0.06 1.34 1.68 0.23Non-GAAP diluted earnings per ordinary share 4.33 5.04 0.69 11.63 20.68 2.83Non-GAAP diluted earnings per ADS 17.32 20.15 2.76 46.51 82.71 11.32

PDD Holdings Announces Fourth Quarter 2024 and Fiscal Year 2024 Unaudited Financial Results

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