PDD(PDD) - 2024 Q4 - Annual Results

Financial and Operational Highlights This section outlines the company's strategic direction and presents key financial and operational results for Q4 and fiscal year 2024 Management Commentary Management outlines a strategic commitment to sustainable growth, platform innovation, and ecosystem investment for long-term value creation - The company commits to a high-quality development strategy, emphasizing platform innovations and industry support for the e-commerce ecosystem[3] - Digital capabilities enable platform investments to support quality merchants and deliver consumer value[3] - Future strategy prioritizes continued investments in the platform ecosystem as a cornerstone for long-term value creation[3] Fourth Quarter 2024 Financial Highlights Q4 2024 revenues reached RMB 110.6 billion, a 24% YoY increase, driven by strong online marketing and transaction services performance Financial Metric | Financial Metric | Q4 2024 (RMB million) | Q4 2023 (RMB million) | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Revenues | 110,610.1 | 88,881.0 | +24% | | Operating Profit | 25,592.2 | 22,395.0 | +14% | | Net Income | 27,446.6 | 23,280.3 | +18% | | Non-GAAP Operating Profit | 27,996.5 | 24,579.9 | +14% | | Non-GAAP Net Income | 29,850.9 | 25,476.5 | +17% | Revenue Stream | Revenue Stream | Q4 2024 (RMB million) | Q4 2023 (RMB million) | Change (YoY) | | :--- | :--- | :--- | :--- | | Online marketing services | 57,011.1 | 48,675.6 | +17% | | Transaction services | 53,599.0 | 40,205.4 | +33% | Earnings Per ADS | Earnings Per ADS | Q4 2024 (RMB) | Q4 2023 (RMB) | | :--- | :--- | :--- | | Basic EPS (ADS) | 19.76 | 17.00 | | Diluted EPS (ADS) | 18.53 | 15.83 | | Non-GAAP Diluted EPS (ADS) | 20.15 | 17.32 | - Total operating expenses increased 19% YoY to RMB 37.2 billion, driven by an 18% rise in sales and marketing expenses for promotion and advertising[6][7] Fiscal Year 2024 Financial Highlights Fiscal Year 2024 saw robust growth with total revenues surging 59% YoY to RMB 393.8 billion, driven by a significant increase in transaction services revenue Financial Metric | Financial Metric | FY 2024 (RMB million) | FY 2023 (RMB million) | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Revenues | 393,836.1 | 247,639.2 | +59% | | Operating Profit | 108,422.9 | 58,698.8 | +85% | | Net Income | 112,434.5 | 60,026.5 | +87% | | Non-GAAP Operating Profit | 118,306.4 | 65,777.6 | +80% | | Non-GAAP Net Income | 122,343.6 | 67,899.3 | +80% | Revenue Stream | Revenue Stream | FY 2024 (RMB million) | FY 2023 (RMB million) | Change (YoY) | | :--- | :--- | :--- | :--- | | Online marketing services | 197,934.2 | 153,540.6 | +29% | | Transaction services | 195,901.9 | 94,098.7 | +108% | Earnings Per ADS | Earnings Per ADS | FY 2024 (RMB) | FY 2023 (RMB) | | :--- | :--- | :--- | | Basic EPS (ADS) | 81.24 | 44.33 | | Diluted EPS (ADS) | 76.01 | 41.15 | | Non-GAAP Diluted EPS (ADS) | 82.71 | 46.51 | Balance Sheet and Cash Flow Summary The company's financial position strengthened significantly by December 31, 2024, with substantial increases in cash and operating cash flow - Cash, cash equivalents, and short-term investments significantly increased to RMB 331.6 billion (US$45.4 billion) as of December 31, 2024, from RMB 217.2 billion in 2023[11] - Net cash from operating activities for FY2024 was RMB 121.9 billion, up from RMB 94.2 billion in FY2023, driven by increased net income and working capital changes[17] - Net cash generated from operating activities in Q4 2024 totaled RMB 29.5 billion[10] Financial Statements and Supplementary Data This section presents the company's detailed consolidated balance sheets, income statements, cash flow statements, and non-GAAP reconciliations Condensed Consolidated Balance Sheets As of December 31, 2024, total assets grew to RMB 505.0 billion, with significant increases in liabilities and shareholders' equity Balance Sheet Item | Balance Sheet Item | Dec 31, 2024 (in RMB thousands) | Dec 31, 2023 (in RMB thousands) | | :--- | :--- | :--- | | Total Current Assets | 415,648,232 | 294,750,472 | | Total Assets | 505,034,316 | 348,078,120 | | Total Current Liabilities | 188,422,853 | 152,900,901 | | Total Liabilities | 191,721,192 | 160,836,513 | | Total Shareholders' Equity | 313,313,124 | 187,241,607 | Condensed Consolidated Statements of Income The income statement details the company's revenue and expense performance for Q4 and the full fiscal year 2024, showing significant growth Income Statement (FY) | Income Statement | FY 2024 (in RMB thousands) | FY 2023 (in RMB thousands) | | :--- | :--- | :--- | | Revenues | 393,836,097 | 247,639,205 | | Costs of revenues | (153,900,374) | (91,723,577) | | Operating profit | 108,422,862 | 58,698,762 | | Net income | 112,434,512 | 60,026,544 | Income Statement (Q4) | Income Statement | Q4 2024 (in RMB thousands) | Q4 2023 (in RMB thousands) | | :--- | :--- | :--- | | Revenues | 110,610,106 | 88,881,036 | | Costs of revenues | (47,798,376) | (35,078,272) | | Operating profit | 25,592,215 | 22,394,968 | | Net income | 27,446,637 | 23,280,309 | Condensed Consolidated Statements of Cash Flows Fiscal year 2024 saw net cash from operating activities increase significantly to RMB 121.9 billion, with substantial investing activities Cash Flow | Cash Flow | FY 2024 (in RMB thousands) | FY 2023 (in RMB thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 121,929,292 | 94,162,531 | | Net cash used in investing activities | (118,356,036) | (55,431,278) | | Net cash from financing activities | 1,164 | (8,960,626) | | Cash at end of year | 126,194,421 | 121,779,905 | Reconciliation of Non-GAAP Measures This section reconciles GAAP to non-GAAP financial measures for Q4 and FY2024, primarily adjusting for share-based compensation Reconciliation (Operating Profit) | Reconciliation | Q4 2024 (in RMB thousands) | FY 2024 (in RMB thousands) | | :--- | :--- | :--- | | Operating profit (GAAP) | 25,592,215 | 108,422,862 | | Add: Share-based compensation | 2,404,255 | 9,883,564 | | Non-GAAP operating profit | 27,996,470 | 118,306,426 | Reconciliation (Net Income) | Reconciliation | Q4 2024 (in RMB thousands) | FY 2024 (in RMB thousands) | | :--- | :--- | :--- | | Net income (GAAP) | 27,446,637 | 112,434,512 | | Add: Share-based compensation | 2,404,255 | 9,883,564 | | Other adjustments | 29 | 25,485 | | Non-GAAP net income | 29,850,921 | 122,343,561 |