拼多多-2019年第三季度拼多多财务报告（英文）-2019.11-14页_265kb

Pinduoduo Third Quarter 2019 Financial Summary

Core Financial Highlights

• GMV (Gross Merchandise Volume) for the twelve-month period ended September 30, 2019 reached RMB840.2 billion (US$117.5 billion), a 144% increase from RMB344.8 billion in the same period in 2018.
• Total Revenues for Q3 2019 were RMB7,513.9 million (US$1,051.2 million), up 123% from RMB3,372.4 million in Q3 2018.
• Average Monthly Active Users increased to 429.6 million, a 85% rise from 231.7 million in Q3 2018.
• Active Buyers for the twelve-month period ended September 30, 2019 reached 536.3 million, up 39% from 385.5 million in the same period in 2018.
• Annual Spending per Active Buyer was RMB1,566.7 (US$219.2), a 75% increase from RMB894.4 in the same period in 2018.

Revenue Breakdown

• Revenues from Online Marketing Services were RMB6,711.4 million (US$938.9 million), up 126% from RMB2,974.1 million in Q3 2018.
• Revenues from Transaction Services were RMB802.5 million (US$112.3 million), an 101% increase from RMB398.3 million in Q3 2018.

Expenses and Losses

• Total Costs of Revenues were RMB1,833.3 million (US$256.5 million), up 137% from RMB774.7 million in Q3 2018, primarily due to higher cloud service, call center, and merchant support costs.
• Total Operating Expenses were RMB8,472.6 million (US$1,185.4 million), up 119% from RMB3,867.2 million in Q3 2018.
  • Sales and Marketing Expenses were RMB6,908.8 million (US$966.6 million), up 114%, mainly due to increased advertising and promotions.
  • General and Administrative Expenses were RMB436.6 million (US$61.1 million), up 43%, due to initiatives related to rural poverty alleviation.
  • Research and Development Expenses were RMB1,127.2 million (US$157.7 million), up 240%, driven by headcount expansion and higher R&D-related costs.
• Operating Loss was RMB2,792.0 million (US$390.6 million), compared to RMB1,269.5 million in Q3 2018.
• Non-GAAP Operating Loss was RMB2,123.5 million (US$297.1 million), compared to RMB790.0 million in Q3 2018.
• Net Loss Attributable to Ordinary Shareholders was RMB2,335.0 million (US$326.7 million), up from RMB1,098.3 million in Q3 2018.
• Non-GAAP Net Loss Attributable to Ordinary Shareholders was RMB1,660.4 million (US$232.3 million), compared to RMB618.9 million in Q3 2018.
• Basic and Diluted Net Loss per ADS was RMB2.00 (US$0.28), compared to RMB1.20 in Q3 2018.
• Non-GAAP Basic and Diluted Net Loss per ADS was RMB1.44 (US$0.20), compared to RMB0.68 in Q3 2018.

Cash and Liquidity

• Net Cash Provided by Operating Activities was RMB2,618.2 million (US$366.3 million), up from RMB1,631.4 million in Q3 2018.
• Cash, Cash Equivalents, and Restricted Cash as of September 30, 2019 were RMB34.4 billion (US$4.8 billion), compared to RMB30.5 billion as of December 31, 2018.
• The Company maintains a positive operating cash flow and has over RMB40.3 billion in cash, cash equivalents, and short-term investments.

Conference Call

• Pinduoduo will host a conference call on November 20, 2019 at 7:30 AM U.S. Eastern Time.
• Dial-in numbers and passcode are provided for both live and replay access.
• A webcast will also be available on the Investor Relations section of the Pinduoduo website.

Non-GAAP Financial Measures

• The Company uses non-GAAP measures to evaluate its operating performance, including non-GAAP operating loss and non-GAAP net loss attributable to ordinary shareholders.
• These measures exclude share-based compensation and interest expenses related to convertible bonds.
• Non-GAAP measures are used by management for internal evaluation and to provide a clearer view of underlying business trends.
• The Company reconciles non-GAAP measures to the nearest GAAP performance measure and encourages users to review all financial information in full.

Key Risks and Forward-Looking Statements

• The press release includes forward-looking statements subject to risks and uncertainties, including:
  • Growth strategies and future business development
  • User acquisition and retention
  • Brand recognition and reputation
  • Reliance on third-party logistics and merchant support
  • Regulatory and economic conditions
• These risks are detailed in the SEC filings and the Safe Harbor Statements.

About Pinduoduo Inc.

• Pinduoduo is a fast-growing e-commerce platform that focuses on value-for-money and interactive shopping.
• It provides a social shopping experience through its mobile platform.
• The Company is committed to improving user experience and building trust with its platform.

Financial Statements

• Condensed Consolidated Balance Sheets and Statements of Loss are provided, showing:
  • An increase in total assets from RMB43.18 billion to RMB64.58 billion.
  • An increase in total liabilities from RMB24.36 billion to RMB38.62 billion.
  • An increase in shareholders’ equity from RMB18.82 billion to RMB25.96 billion.
• Condensed Consolidated Statements of Cash Flows show a net cash decrease of RMB6.298 billion for the nine months ended September 30, 2019, due to investing activities.

Reconciliation of Non-GAAP Measures

• The reconciliation table shows how non-GAAP measures are derived from GAAP measures, including the addition of share-based compensation and interest expenses.
• Non-GAAP net loss per ADS increased to RMB1.44 (US$0.20) for the three months ended September 30, 2019, compared to RMB0.68 in Q3 2018.