Shares of Pinduoduo (NASDAQ:PDD) were tumbling 12% in morning trading Friday, after the Chinese social e-commerce platform reported second-quarter results that fell short of analyst forecasts.
While the e-commerce site that allows shoppers to include their social media contacts to form "shopping teams" beat Wall Street's bottom-line expectations, top-line figures missed.
Pinduoduo said sales soared 67% to 12.2 billion yuan, or about $1.7 billion, but that was below projections of almost CNY 12.8 billion.
Net losses narrowed to CNY 899 million, or CNY 0.75 per share, but on an adjusted basis, it had a profit of CNY 0.06 per share, far exceeding the CNY 1.26 per-share loss Wall Street thought it would post.
While revenue may have come in light, Pinduoduo's performance still seems strong. All of its key metrics saw significant growth, with gross merchandise volumes jumping 79%, average monthly active users rising 55% to 569 million, and the number of active buyers on the platform up 41% to 683 million. Those active buyers also spent 27% more than they did a year ago, dropping on average CNY 1,857, or almost $263.
This almost appears to be a case of "what have you done for me lately?"