Dada Announces Unaudited Second Quarter 2024 Financial Results

Core Insights - Dada Nexus Limited reported its financial results for Q2 2024, highlighting a focus on user experience and high-quality development, with significant growth in user metrics and revenue from its JD NOW and Dada NOW platforms [2][3]. Financial Performance - Total net revenues for Q2 2024 were RMB 2,349.9 million, a decrease of 9.5% compared to RMB 2,596.8 million in Q2 2023 [3][5]. - JD NOW generated net revenues of RMB 912.4 million in Q2 2024, down from RMB 1,616.4 million in Q2 2023, primarily due to reduced online advertising and fulfillment service revenues [4][7]. - Dada NOW saw a revenue increase of 46.6% year-on-year, reaching RMB 1,437.5 million in Q2 2024, driven by higher order volumes from chain merchants [4][5]. Cost Structure - Total costs and expenses in Q2 2024 were RMB 2,667.0 million, down from RMB 2,804.1 million in Q2 2023 [5][6]. - Operations and support costs rose to RMB 1,735.7 million, attributed to increased rider costs due to higher order volumes [6]. - Selling and marketing expenses decreased to RMB 781.9 million, reflecting reduced promotional activities on the JD NOW platform [6]. Profitability Metrics - The company reported a loss from operations of RMB 310.5 million in Q2 2024, compared to a loss of RMB 197.0 million in Q2 2023 [7]. - Non-GAAP net loss was RMB 142.3 million in Q2 2024, a significant decline from a net income of RMB 8.4 million in Q2 2023 [7][28]. - Basic and diluted net loss per ordinary share was RMB 0.27 in Q2 2024, compared to RMB 0.15 in Q2 2023 [7][29]. Operational Highlights - The number of orders delivered increased to 679.2 million in Q2 2024, up from 562.8 million in Q2 2023 [9]. - Gross billings for on-demand delivery services reached RMB 3,008.0 million in Q2 2024, compared to RMB 2,446.9 million in Q2 2023 [9]. Strategic Initiatives - The company is committed to enhancing customer experience and sustainable growth, as indicated by its ongoing focus on high-quality development strategies [2][3]. - Dada has initiated a US$40 million share repurchase program, with approximately US$9.8 million repurchased as of June 30, 2024 [9]. ESG Efforts - Dada published its 2023 ESG Report, marking its third consecutive year of reporting on environmental, social, and governance practices [10]. - The company launched initiatives to promote green products and support delivery riders, including a partnership to provide free cold drinks and health products [11].