PDD surpasses revenue estimates, shares increase.

PDD Holdings Inc Beats Q1 Revenue Estimates

Chinese e-commerce giant PDD Holdings Inc has exceeded analysts’ expectations for Q1 revenue, thanks to the growing popularity of its discount platforms, including Pinduoduo. The company’s U.S.-listed shares rose by 7% in pre-market trading.

As China’s consumer spending gains momentum, PDD’s expansion of its international platform, Temu, has also contributed to the company’s revenue growth. Temu, which sells affordable made-in-China products, has topped the charts for app downloads in the United States, Canada, and Australia since its launch.

With retail sales in China rising by 5.8% in the January-March period, and online retail sales up by 8.6%, PDD’s success is no surprise. Platforms such as Pinduoduo and Douyin gained traction during the pandemic, with livestream selling of goods by merchants becoming increasingly popular.

PDD posted revenue of 37.64 billion yuan ($5.45 billion), compared with analysts’ estimates of 31.98 billion yuan, according to Refinitiv data. The company’s net income attributable to ordinary shareholders rose to 8.10 billion yuan from 2.60 billion yuan a year earlier.

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