Temu-Owner PDD Jumps 15% After Revenue Beats Estimates Amid Overseas Push

PDD Holdings Inc.’s shares jumped 15 percent in New York pre-market trading Wednesday after the company reported stronger-than-expected revenue as it ramped up its overseas expansion.

The Chinese-owned e-commerce platform reported revenue of 88.9 billion yuan ($12.4 billion) in the December quarter, beating the average estimate of 79.9 billion yuan by analysts surveyed by Bloomberg. It was the company’s first triple-digit growth since the first quarter of 2021. Net income in the period was 23.3 billion yuan, compared with the average estimate of about 15.1 billion yuan.

The strong performance came as the company spent big on its overseas e-commerce business Temu, including marquee Super Bowl ads last month and lavish spending on other ad platforms including Meta Platforms Inc. and Alphabet Inc.’s Google.

As with its peers in the tech industry, PDD is seen as a barometer of China’s post-Covid economy. Mixed financial results from the country’s internet leaders signalled an uneven recovery. Earlier this month, JD.com Inc. reported faster-than-anticipated growth for the December quarter while Alibaba Group Holding Ltd. recorded lacklustre results.

Though PDD has so far kept Temu’s performance under wraps, the platform is regarded as a potentially disruptive force in global e-commerce. The app, which takes aim primarily at the US, follows the same strategy of cut-rate pricing employed by PDD’s domestic online outlet Pinduoduo.

By Jane Zhang

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