Shares of Dada Nexus (NASDAQ:DADA) are soaring nearly 30% higher in morning trading Friday, after the Chinese delivery logistics and retail platform operator reported third-quarter earnings following Thursday's market close.
The market's reaction to the report seems to be the polar opposite of what occurred after Dada Nexus reported its second-quarter results, which were nearly as strong as those recorded this time around. Back then, though, it appeared the delivery specialist's outlook for the third quarter was underwhelming.
The fears the market had three months ago were apparently not justified as Dada Nexus reported an 85% jump in revenue and a 57% increase in the number of orders placed over the trailing 12 months, or 1 billion.
Total gross merchandise value handled in the period more than doubled, and the number of active consumers jumped 77% year over year.
All of its business components seem to be performing quite well, but it is still generating losses; however, those narrowed a little this period with operating losses falling to 450 million renminbi ($68.57 million) from RMB 500 million last year. Net losses amounted to RMB 0.48 per share compared with RMB 1.89 a year ago.
Although Dada Nexus stock initially fell after the company's last earnings report, it quickly began growing again, climbing more than 40% before its latest surge.
As the company forecasts fourth-quarter revenue to be as much as 2.1 billion renminbi, it would amount to nearly double the results from last year.