Pdd Holdings Inc. ( (PDD) ) has released its Q1 earnings. Here is a breakdown of the information Pdd Holdings Inc. presented to its investors.
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PDD Holdings Inc. is a multinational commerce group that operates a portfolio of businesses aimed at integrating more businesses and individuals into the digital economy, focusing on enhancing productivity and creating new opportunities for local communities and small businesses.
In its first quarter of 2025, PDD Holdings reported a 10% increase in total revenues, reaching RMB95.7 billion, driven primarily by growth in online marketing and transaction services. However, the company experienced a significant decline in profitability, with operating profit and net income decreasing by 38% and 47% respectively compared to the same quarter in 2024.
Key financial metrics revealed that while revenues from online marketing services grew by 15%, and transaction services increased by 6%, the company’s operating expenses surged by 37%, largely due to heightened sales and marketing expenditures. This strategic investment in the platform ecosystem was aimed at supporting merchants and consumers amidst a challenging external environment, as highlighted by the company’s management.
Despite the short-term impact on profitability, PDD Holdings is committed to bolstering its merchant ecosystem to foster sustainable growth. The company anticipates that continued investments in its platform will support merchants and consumers through uncertain times, potentially affecting financial results in the near future.
Looking ahead, PDD Holdings remains focused on enhancing its platform to deliver high-quality, sustainable growth, while navigating the challenges posed by a rapidly changing external environment. The management’s strategic emphasis on ecosystem investments is expected to drive long-term health and stability for the company.