Rising Chinese social eCommerce platform Pinduoduo saw impressive gains in revenue, user numbers and GMV in its FY2018 results. However, costs widened dramatically as the NYSE-listed entity scaled growth rapidly. Sales & Marketing expenses, for example, jumped 900% YoY as the business invested in cultivating greater user recognition through online and offline advertising campaigns and promotions.
- Total FY2018 revenues were CNY13.12 billion (USD1.91 billion), representing an increase of 652% from CNY1.74 billion in 2017. The increase was primarily due to an increase in revenues from online marketing services.
- GMV in the 12-month period was CNY471.6 billion (USD268.6 billion), an increase of 234% from CNY141.2 billion in prior-year period.
- Total revenues in the fourth quarter were CNY5.65 billion (USD822.3 million), an increase of 379% from CNY1.18 million in the same quarter of 2017.
- Average monthly active users in the quarter were 272.6 million, an increase of 93% from 141.0 million in the same quarter of 2017.
- Active buyers in the 12-month period were 418.5 million, an increase of 71% from 244.8 million in prior-year period.
- Annual spending per active buyer in the 12-month period was CNY1,126.9, an increase of 95% from CNY576.9 in period ended 31 December 2017.
- Operating loss was CNY2.64 billion (USD384.1 million), compared with an operating loss of CNY22.7 million in the same quarter of 2017.