Dada(US:DADA)2024-08-21 08:13Financial Data and Key Metrics Changes - Dada Group's total net revenues in Q2 2024 were RMB2.3 billion, with a year-on-year change primarily due to adjustments in the JD NOW business [5][24] - Non-GAAP net loss in Q2 was RMB142 million, improving sequentially by RMB53 million, with a non-GAAP net loss margin of 6.1%, narrowing by 1.8 percentage points [6][26] - Net revenues from JD NOW were RMB912 million, while Dada NOW revenues increased by 47% year-on-year to RMB1.4 billion [6][24] Business Line Data and Key Metrics Changes - JD NOW saw over 100% year-on-year growth in monthly transacting users and orders through the JD App [5] - Dada NOW's net revenues for the first half of 2024 increased by 51% year-on-year to RMB2.6 billion, driven by new customer expansion and increased penetration among existing partners [6][20] - The number of orders delivered by Dada NOW rose 21% year-on-year to 679 million in Q2 [19] Market Data and Key Metrics Changes - The average daily unique visitors through the JD App increased by over 70% year-on-year, with the user conversion rate up over 20% year-on-year [15] - The number of high-frequency users with the JD App channel increased by over 100% year-on-year [16] - JD NOW's average daily paid order volume increased by over 50% year-on-year in Q2 [17] Company Strategy and Development Direction - The company remains committed to high-quality growth, focusing on user experience and supply enhancement for JD NOW and Dada NOW [22] - Dada NOW is undergoing a brand upgrade to strengthen its image as a high-speed, high-quality delivery service provider [36] - The strategy includes deepening cooperation with JD.com to enhance user penetration and mindshare growth [47] Management's Comments on Operating Environment and Future Outlook - Management noted a stable recovery in consumer confidence, with online sales of physical goods growing by 6.4% year-on-year in Q2 [29] - The company anticipates that adjustments made earlier in the year will lead to sustainable high-quality growth in the long run [38] - Management expressed confidence in achieving breakeven and profitability in the long term, supported by strong growth in the restaurant and beverage sectors [46] Other Important Information - The company had RMB3.6 billion in cash and cash equivalents as of June 30, 2024, and had repurchased approximately USD9.8 million of ADSs as part of a USD 40 million share repurchase program [26] - The company has expanded its geographic coverage for JD NOW services nationwide, enhancing service availability for JD.com users [48] Q&A Session Summary Question: Update on consumer sentiment and competitive landscape - Management reported a stable recovery in consumer confidence, with online sales growth reflecting this trend [29] - JD NOW is gaining market share due to its integration with JD.com and expansion of high-quality supply [31] Question: User consumption patterns and pressure on take rates - Management noted that the supermarket category is stable, while non-supermarket categories are experiencing higher growth rates [40] - The company is actively collaborating with convenience store brands to meet consumer needs [39] Question: Financial guidance and cooperation with JD - Management indicated that JD NOW's GMV faced short-term challenges but is expected to improve with strategic adjustments [43] - The company aims to penetrate a significant portion of JD's user base, with ongoing efforts to enhance user experience [49]