Dada(US:DADA)2022-05-17 03:13Financial Data and Key Metrics Changes - Dada Group reported a total net revenue of RMB 2 billion for Q1 2022, reflecting a pro forma revenue growth of 74% year-over-year [22] - Non-GAAP net loss attributable to ordinary shareholders was RMB 481 million, with a non-GAAP net loss margin of 24%, showing an improvement of about 30 percentage points year-over-year [25] - Cash, cash equivalents, restricted cash, and short-term investments totaled RMB 4.6 billion as of March 31, 2022 [25] Business Line Data and Key Metrics Changes - Net revenue from Dada Now was RMB 623 million, driven by increased order volume for intercity delivery services [22] - JDDJ's net revenues increased by 80% to RMB 1.4 billion, attributed to a rise in GMV, active consumers, and average order size [23] - The GMV of JDDJ's supermarket category accelerated year-over-year, with partnerships established with 86 out of the top 100 supermarket chains in China [11] Market Data and Key Metrics Changes - The number of annual active users on JDDJ increased by 47% year-over-year to 67.9 million [10] - The average daily GMV during the April 15th Intra-City Shopping Festival exceeded that of last year's Double 11 shopping festival [9] - The contribution of JD channels to Dada's GMV in Q1 was over 50% [40] Company Strategy and Development Direction - Dada Group is focused on compliant operations while driving sustainable business growth, particularly in the context of the platform economy [5] - The company is enhancing its cooperation with JD.com, improving product performance and brand marketing initiatives [38] - Dada is committed to expanding its geographic coverage and improving user experience through app design and operations [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but expressed confidence in the recovery of business operations [30] - The company anticipates that the competitive landscape will become more rational post-COVID, benefiting strong players in the market [38] - For Q2 2022, Dada expects total revenue between RMB 2.25 billion and RMB 2.35 billion, representing a pro forma growth rate of 59% to 66% [26] Other Important Information - Dada has implemented various support measures for riders and merchants during the pandemic, including subsidies and delivery capabilities [6] - The company has launched new marketing campaigns to promote products based on consumption trends, contributing to sales growth [14] Q&A Session Summary Question: Impact of COVID on business and growth expectations for JDDJ - Management noted that while COVID outbreaks have affected operations, they have been approved as a key company for daily supplies, and business is recovering quickly [29][30] Question: Long-term outlook post-COVID and competitive landscape changes - Management expects a more rational competitive environment post-COVID, with smaller competitors facing challenges, while basket sizes continue to grow [38] Question: Contribution of JD channels to GMV - JD channels contributed over 50% to Dada's GMV in Q1, with expectations for continued growth [40] Question: Unit economics for JDDJ and revenue trends - Management indicated that JDDJ is on track to achieve positive direct margins in Q2, with expectations for continued revenue growth [43][44] Question: Advertising yield and monetization rate outlook - Advertising revenue grew by 180% year-over-year, with expectations for continued growth in monetization rates [65][66]