Dingdong (Cayman) Limited Announces First Quarter 2025 Financial Results

Core Viewpoint - Dingdong (Cayman) Limited has reported strong financial results for the first quarter of 2025, achieving consistent profitability and revenue growth, which positions the company favorably in the competitive fresh grocery e-commerce market in China [3][4]. Financial Performance - Total revenues for Q1 2025 were RMB 5.48 billion (US$ 755 million), a 9.1% increase year-over-year from RMB 5.02 billion in Q1 2024 [4][28]. - Non-GAAP net profit was RMB 30.3 million (US$ 4.2 million), marking the tenth consecutive quarter of non-GAAP profitability [5][10]. - GAAP net profit was RMB 8.0 million (US$ 1.1 million), down from RMB 12.3 million in the same quarter of 2024 [9][10]. - Operating net cash inflow reached RMB 85 million, indicating positive cash flow [3][4]. Operational Highlights - The company achieved a Gross Merchandise Volume (GMV) of RMB 5.96 billion (US$ 821.4 million), reflecting a 7.9% year-over-year increase [5]. - The total number of orders increased by 12.1% year-over-year in Q1 2025 [5]. - Product revenues were RMB 5.39 billion (US$ 742.3 million), up from RMB 4.94 billion in Q1 2024 [6][28]. - Service revenues rose to RMB 92.5 million (US$ 12.8 million), driven by increased membership subscriptions and delivery fees [6]. Cost and Expenses - Total operating costs and expenses were RMB 5.52 billion (US$ 760.5 million), compared to RMB 5.05 billion in Q1 2024 [5][28]. - Cost of goods sold increased by 10.1% year-over-year to RMB 3.84 billion (US$ 529.5 million), with the cost of goods sold as a percentage of revenues slightly increasing to 70.1% [6][10]. - Fulfillment expenses were RMB 1.26 billion (US$ 173.1 million), a 9.5% increase from the previous year [6]. Cash and Liquidity - As of March 31, 2025, cash and cash equivalents, restricted cash, and short-term investments totaled RMB 4.29 billion (US$ 591.8 million), down from RMB 4.45 billion at the end of 2024 [12]. - After accounting for short-term loans, actual funds amounted to RMB 2.89 billion, indicating a continued net increase for the seventh consecutive quarter [12]. Strategic Outlook - The company aims to sustain year-over-year growth in scale and achieve non-GAAP profits in Q2 2025 [13]. - Dingdong is focusing on a "narrow yet deep" value proposition, emphasizing quality products and services to enhance customer satisfaction [3][4].