EarningsThe miss on revenue translates into a miss on earnings, with PDD's gross profit margin shrinking to 60.0% in 3Q24, due to the miss in commission revenue as PDD strengthens its merchant support.
Financial PerformancePDD reported a softer-than-expected 3Q24 with total revenues missing consensus attributed to adverse impact from the introduction of fee reduction and merchant support program.
Profitability OutlookManagement reiterated its commitment in merchant support and investment in agriculture, implying its determination to drive declining trend of profitability in the long run.