Chinese e-commerce platform Pinduoduo Inc. saw increases in revenues and active users in its unaudited financial results for the third quarter ending Sept. 30, 2020.
Total revenues in the quarter were 14.21 billion yuan ($2.09 billion), an increase of 89% from 7.51 billion yuan in the same quarter of 2019.
The gross merchandise volume (GMV) in the twelve-month period ending Sept. 30 was 1,457.6 billion yuan ($214.7 billion), an increase of 73% from 840.2 billion yuan in the twelve-month period ending Sept. 30 last year.
Average monthly active users in the quarter were 643.4 million, an increase of 50% from 429.6 million in the same quarter of 2019.
“This quarter we continued to invest in user engagement, which resulted in strong growth of MAUs and active buyers,” commented Lei Chen, CEO of Pinduoduo. “Our strategic priorities are informed by the changes in consumer habits that we observe and anticipate. We continue to innovate in order to meet such needs, especially in the agricultural industry.”
“Despite industry seasonality, we continued to deliver solid execution through the third quarter and generated positive cash flow from operations,” said Tony Ma, vice president of finance.
Revenues from online marketing services and others were 12,877.7 million yuan ($1,896.7 million), an increase of 92% from 6,711.4 million yuan in the same quarter of 2019. The increase was primarily attributable to higher advertising demand from merchants on our platform given continued advancement in our brand and market position, according to Pinduoduo.
Operating loss was 1,295.7 million yuan ($190.8 million), compared with 2,792 million yuan in the same quarter of 2019.
Pinduoduo has recently announced that it would upgrade its New brand Initiatives on Thursday, which was first launched at the end of 2018 as part of its “consumer-to-manufacturer” (“C2M”) effort to help merchants and manufacturers gain insight into their target customers. It will increase the support range. From 2021 to 2025, Pinduoduo aims to drive 1 trillion sales.
Also in agriculture, Pinduoduo introduced a grocery service in August to meet the growing demand for buying groceries online. The feature, called Duo Duo Maicai, is now available in most provinces.