PDD Holdings’ Q3 Revenue Growth Slowed Amid Competitive Shifts, Market Uncertainty

• PDD’s adjusted net income attributable to ordinary shareholders in the quarter was RMB 31.38 billion, an increase of 14% from the same quarter of 2024.
• The company said that in the third quarter, revenues from online marketing services and other sources totaled RMB 53.35 billion, an increase of 8% year over year.
• The company has been pushing to invest in merchant support initiatives as an attempt to pull in more sellers to its platform and compete with the likes of Alibaba and JD.com.

Temu-owner PDD Holdings’ (PDD) VP of Finance Jun Liu said that revenue growth in the third quarter continued to moderate, showcasing the ongoing evolution of the competitive landscape and external uncertainties.

“As we roll out greater merchant support initiatives and ecosystem investments, financial results may continue to fluctuate from quarter to quarter,” said Liu.

U.S.-listed shares of the company were down over 6% in early trading on Tuesday.

PDD’s Q3 Results

The company’s third-quarter total revenue was RMB 108.27 billion ($15.23 billion), an increase of 9% from RMB 99.35 billion in the same quarter of 2024.

PDD’s adjusted net income attributable to ordinary shareholders in the quarter was RMB 31.38 billion, an increase of 14% from RMB 27.46 billion in the same quarter of 2024.

The company said that in the third quarter, revenues from online marketing services and other sources totaled RMB 53.35 billion, an increase of 8% year over year.

“As a public platform, we will continue to invest in merchant support initiatives, driving industry upgrades and the sustainable development of the platform in the long run,” said Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings.

The company has been pushing to invest in merchant support initiatives as an attempt to pull in more sellers to its platform and compete with the likes of Alibaba and JD.com.

What Is Retail Thinking?

Retail sentiment on PDD jumped to ‘bullish’ from ‘bearish’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A bullish user on Stocktwits noted that the stock could likely end the year above $150.

Shares of PDD Holdings have jumped 25% this year.

RMB 1 = $0.14

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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