PDD Holdings Inc - ADR · Q1 2025 earnings

Briefing

PDD Holdings Q1 2025: revenue RMB95.7B (+10%) as ecosystem investments weigh on profit

PDD Holdings reported Q1 2025 total revenues of RMB95.7 billion (US$13.2 billion), up 10% from RMB86.8 billion a year ago, driven by online marketing services (+15%) and transaction services (+6%). Operating profit fell 38% to RMB16.1 billion as the company increased ecosystem investments to support merchants amid external uncertainty. Net income attributable to ordinary shareholders declined 47% to RMB14.7 billion; non-GAAP net income was RMB16.9 billion. Diluted EPS was RMB9.94 (US$1.37) per ADS versus RMB18.96 a year ago; non-GAAP diluted EPS was RMB11.41 (US$1.56). Sales and marketing expenses rose 43% to RMB33.4 billion. Cash, cash equivalents and short-term investments totaled RMB364.5 billion at quarter end. Management expects growth to slow further and financial results to reflect sustained ecosystem investments.

• Q1 revenue RMB95.7B (+10% YoY); online marketing RMB48.7B (+15%) and transaction services RMB47.0B (+6%)
• Operating profit RMB16.1B (-38%); net income RMB14.7B (-47%); non-GAAP net income RMB16.9B (-45%)
• Diluted EPS RMB9.94/US$1.37; non-GAAP diluted EPS RMB11.41/US$1.56 per ADS
• Sales and marketing spend rose 43% to RMB33.4B as PDD increased merchant ecosystem support
• Cash and short-term investments RMB364.5B; net cash from operations RMB15.5B

Headline financials

Revenue & EPS history

Management expects growth rate to slow as the business scales and warned that financial results may continue to reflect sustained ecosystem investments amid external uncertainty.