Pinduoduo Q1 Profit Falls as Company Invests RMB 100B in Merchant Support
Earnings Call
27 May
Pinduoduo's Q1 2025 results showed: 1. Total revenues increased 10% YoY to RMB 95.7 billion, with online marketing services up 15% and transaction services up 6%. 2. Net income declined to RMB 14.7 billion from RMB 28 billion last year due to increased investments in merchant support initiatives. 3. The company launched a RMB 100 billion merchant support program to help sellers navigate policy changes and economic uncertainties. 4. Management expects profitability to remain challenged in the near-term as they prioritize long-term ecosystem investments over quarterly financials. 5. Pinduoduo is exploring new business models and expanding local operations globally to build a more resilient platform ecosystem. Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.
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