[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section presents an overview of the company's financial performance, including management commentary and key highlights for Q4 and fiscal year 2023 [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted 2023 as a pivotal year for high-quality development, emphasizing continued focus on consumer experience, technology innovation, and value delivery, supported by significant R&D investments - Mr. Lei Chen, Chairman and Co-CEO, stated that 2023 was a "pivotal chapter" focused on transitioning towards high-quality development, a strategy that will continue in 2024 with a focus on consumer experience and technology innovation[2](index=2&type=chunk) - Mr. Jiazhen Zhao, Executive Director and Co-CEO, noted growing consumer demand and reiterated the company's dedication to offering great value and exceptional service[2](index=2&type=chunk) - Ms. Jun Liu, VP of Finance, confirmed that R&D investment surpassed **RMB 10 billion** for the second year in a row, underscoring a commitment to technology and agricultural advancements[2](index=2&type=chunk) [Fourth Quarter 2023 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20Highlights) PDD Holdings reported exceptionally strong Q4 2023 growth, with total revenues surging, primarily driven by transaction services, leading to substantial increases in both operating profit and net income Q4 2023 Key Financial Metrics (YoY Growth) | Metric | Q4 2023 (RMB Million) | YoY Growth | | :--- | :--- | :--- | | Total Revenues | 88,881.0 | 123% | | Operating Profit | 22,395.0 | 146% | | Net Income | 23,280.3 | 146% | | Revenues from Transaction Services | 40,205.4 | 357% | [Fiscal Year 2023 Financial Highlights](index=2&type=section&id=Fiscal%20Year%202023%20Financial%20Highlights) For fiscal year 2023, the company achieved robust revenue growth, with substantial increases in operating profit and net income, reflecting strong performance driven by transaction services Fiscal Year 2023 Key Financial Metrics (YoY Growth) | Metric | FY 2023 (RMB Million) | YoY Growth | | :--- | :--- | :--- | | Total Revenues | 247,639.2 | 90% | | Operating Profit | 58,698.8 | 93% | | Net Income | 60,026.5 | 90% | | Revenues from Transaction Services | 94,098.7 | 241% | [Detailed Financial Results](index=1&type=section&id=Detailed%20Financial%20Results) This section provides a detailed breakdown of the company's financial performance for the fourth quarter and full fiscal year 2023, covering revenue, costs, expenses, profitability, and cash flow [Fourth Quarter 2023 Financial Results](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20Results) Q4 2023 revenue growth was propelled by online marketing and transaction services, while operating expenses increased, resulting in strong GAAP diluted EPS and operating cash flow [Revenue](index=1&type=section&id=Q4%202023%20Revenue) Total Q4 revenues significantly increased, driven primarily by strong growth in transaction services, complemented by online marketing services Q4 2023 Revenue Breakdown (RMB Million) | Revenue Source | Q4 2023 | Q4 2022 | YoY Growth | | :--- | :--- | :--- | :--- | | Online marketing services and others | 48,675.6 | 31,023.4 | 57% | | Transaction services | 40,205.4 | 8,796.6 | 357% | | **Total Revenues** | **88,881.0** | **39,820.0** | **123%** | [Costs and Expenses](index=1&type=section&id=Q4%202023%20Costs%20and%20Expenses) Total operating expenses increased significantly, primarily due to higher sales and marketing expenses and a substantial rise in costs of revenues reflecting increased fulfillment and payment processing fees Q4 2023 Operating Expenses (RMB Million) | Expense Item | Q4 2023 | Q4 2022 | YoY Growth | | :--- | :--- | :--- | :--- | | Costs of revenues | 35,078.3 | 8,926.7 | 293% | | Sales and marketing | 26,638.5 | 17,732.4 | 50% | | General and administrative | 1,904.8 | 1,640.5 | 16% | | Research and development | 2,864.4 | 2,406.7 | 19% | [Profitability and Cash Flow](index=1&type=section&id=Q4%202023%20Profitability%20and%20Cash%20Flow) Q4 saw substantial growth in operating profit and net income, alongside a significant increase in diluted EPS and strong net cash generated from operating activities Q4 2023 Profitability (RMB Million) | Metric | Q4 2023 | Q4 2022 | YoY Growth | | :--- | :--- | :--- | :--- | | Operating Profit | 22,395.0 | 9,113.7 | 146% | | Net Income | 23,280.3 | 9,453.7 | 146% | - Diluted earnings per ADS was **RMB 15.83**, compared to **RMB 6.52** in Q4 2022. Non-GAAP diluted earnings per ADS was **RMB 17.32**[6](index=6&type=chunk)[27](index=27&type=chunk) - Net cash generated from operating activities was **RMB 36.9 billion**, up from **RMB 26.6 billion** in Q4 2022, mainly due to the increase in net income[6](index=6&type=chunk) [Fiscal Year 2023 Financial Results](index=2&type=section&id=Fiscal%20Year%202023%20Financial%20Results) Full year 2023 results show robust revenue growth, particularly in transaction services, with increased operating expenses leading to substantial gains in operating profit, diluted EPS, and operating cash flow [Revenue](index=2&type=section&id=FY%202023%20Revenue) Full-year 2023 revenue saw significant growth, primarily driven by exceptional performance in transaction services, complemented by strong contributions from online marketing services Fiscal Year 2023 Revenue Breakdown (RMB Million) | Revenue Source | FY 2023 | FY 2022 | YoY Growth | | :--- | :--- | :--- | :--- | | Online marketing services and others | 153,540.6 | 102,931.1 | 49% | | Transaction services | 94,098.7 | 27,626.5 | 241% | | **Total Revenues** | **247,639.2** | **130,557.6** | **90%** | [Costs and Expenses](index=2&type=section&id=FY%202023%20Costs%20and%20Expenses) Total operating expenses for FY2023 increased, primarily driven by higher sales and marketing expenses, with a modest rise in research and development costs Fiscal Year 2023 Operating Expenses (RMB Million) | Expense Item | FY 2023 | FY 2022 | YoY Growth | | :--- | :--- | :--- | :--- | | Costs of revenues | 91,723.6 | 31,462.3 | 192% | | Sales and marketing | 82,188.9 | 54,343.7 | 51% | | General and administrative | 4,075.6 | 3,964.9 | 3% | | Research and development | 10,952.4 | 10,384.7 | 5% | [Profitability and Cash Flow](index=2&type=section&id=FY%202023%20Profitability%20and%20Cash%20Flow) FY2023 profitability saw substantial growth in operating profit and net income, with diluted EPS nearly doubling and strong net operating cash flow driven by increased net income Fiscal Year 2023 Profitability (RMB Million) | Metric | FY 2023 | FY 2022 | YoY Growth | | :--- | :--- | :--- | :--- | | Operating Profit | 58,698.8 | 30,401.9 | 93% | | Net Income | 60,026.5 | 31,538.1 | 90% | - Diluted earnings per ADS was **RMB 41.15**, compared to **RMB 21.93** in 2022. Non-GAAP diluted earnings per ADS was **RMB 46.51**[31](index=31&type=chunk) - Net cash generated from operating activities was **RMB 94.2 billion**, compared to **RMB 48.5 billion** in 2022[31](index=31&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents the company's key financial statements, including condensed consolidated balance sheets, statements of cash flows, and reconciliation of GAAP to non-GAAP measures [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2023, PDD's balance sheet reflects significant growth in total assets, primarily driven by cash and investments, alongside increases in total liabilities and shareholders' equity Key Balance Sheet Items (RMB Billion) | Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash, cash equivalents and short-term investments | 217.2 | 149.4 | | Total Assets | 348.1 | 237.1 | | Total Liabilities | 160.8 | 119.3 | | Total Shareholders' Equity | 187.2 | 117.8 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For FY2023, the company generated substantial cash from operating activities, primarily due to higher net income, while utilizing cash for investing and financing activities, ending the year with a strong cash balance Fiscal Year 2023 Cash Flow Summary (RMB Billion) | Cash Flow from | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Operating Activities | 94.2 | 48.5 | | Investing Activities | (55.4) | (22.4) | | Financing Activities | (9.0) | 0.01 | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company provides non-GAAP financial measures, excluding certain non-cash charges, to offer an alternative view of operating performance, showing higher non-GAAP operating profit and net income compared to GAAP for FY 2023 - Non-GAAP measures exclude share-based compensation expenses, fair value change of certain investments, and interest expenses related to the convertible bonds' amortization to face value[21](index=21&type=chunk)[31](index=31&type=chunk) GAAP vs. Non-GAAP Reconciliation for FY 2023 (RMB Million) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Operating Profit | 58,698.8 | 65,777.6 | | Net Income | 60,026.5 | 67,899.3 |

DUBLIN and SHANGHAI, March 20, 2024 (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, 2023. Fourth Quarter 2023 Highlights Total revenues in the quarter were RMB88,881.0 million (US$1 12,518.6 million), an increase of 123% from RMB39,820.0 million in the same quarter of 2022.Operating profit in the quarter was RMB22,395.0 million (US$3,154.3 million), an inc ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about PDD Holdings Inc. (PDD) .PDD Holdings Inc. currently has an average broker ...

Pinduoduo Inc. (PDD) is scheduled to report fourth-quarter 2023 results on Mar 20.For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $11.99 billion, indicating growth of 107.6% from the prior-year quarter’s reported figure.The consensus mark for earnings per share is pinned at $1.62, suggesting growth of 33.9% from the year-ago quarter’s reported number.Pinduoduo’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 26.5%.Factors ...

PDD Holdings Inc. (PDD) closed the most recent trading day at $123.74, moving +0.44% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.65%. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq decreased by 0.96%.Shares of the company witnessed a loss of 8.96% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.2% and the S&P 500's gain of 3.27%.Investors will be eagerly wat ...

PDD Holdings Inc. (PDD) ended the recent trading session at $123.20, demonstrating a +0.69% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.3%.Coming into today, shares of the company had lost 7.31% in the past month. In that same time, the Retail-Wholesale sector gained 5.15%, while the S&P 500 gained 4.42%.The upcoming earnings releas ...

PDD Holdings Inc. (PDD) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this company have returned -7.3% over the past month versus the Zacks S&P 500 composite's +4.4% change. The Zacks Internet - Commerce industry, to which PDD Holdings Inc. belongs, has gained 4.1% over this period. Now the key question is: Where could the stock be headed in the near te ...

DUBLIN and SHANGHAI, March 13, 2024 (GLOBE NEWSWIRE) -- PDD Holdings Inc. ("PDD Holdings" or the "Company") (NASDAQ:PDD) today announced that it will report its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023, before U.S. markets open on Wednesday, March 20, 2024. The Company's management will hold an earnings conference call at 7:30 AM ET on March 20, 2024 (11:30 AM GMT and 7:30 PM HKT on the same day). The conference call will be webcast live at https://investor. ...

After soaring in 2023, share prices of PDD Holdings (PDD 5.60%) are down 20% so far this year. However, the company, which operates Pinduoduo and Temu, has been gaining market share against other e-commerce platforms in China. This presents a buying opportunity for investors, according to analysts at Jefferies.The firm recently upgraded the stock to buy with a price target of $157, representing a 33% upside from the current share price of $118.Why Wall Street is bullish on PDDPDD hasn't reported fourth-quar ...

2023 was a disappointing year for Chinese companies with a few exceptions like PDD Holdings (PDD 1.41%), also known as Pinduoduo. The up-and-coming e-commerce stock delivered an impressive 79% return to investors last year as its revenue climbed 75% year over year in the first nine months of 2023.And there are good reasons to expect Pinduoduo's strong momentum to continue in 2024 as the company executes its growth strategy.Shifting to a sustainable growth strategy in ChinaPinduoduo has been one of China's b ...