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SHANGHAI - Dingdong (NYSE:DDL) reported first quarter earnings that fell short of analyst estimates, despite beating on revenue, on Friday.
The Chinese fresh grocery e-commerce company’s shares dropped 2.52% in pre-market trading after the earnings release.
Dingdong posted adjusted earnings per share of RMB0.09 for Q1 2025, below the consensus expectation. Revenue came in at RMB5.48 billion ($755 million), surpassing analyst projections of RMB5.43 billion and marking a 9.1% increase YoY.
The company achieved non-GAAP profitability for the tenth consecutive quarter, with non-GAAP net income of RMB30.3 million ($4.2 million). However, this represented a 26.8% decline compared to RMB41.5 million in Q1 2024.
"In the first quarter of 2025, Dingdong reported a revenue of RMB5.48 billion, reflecting a 9.1% year-over-year increase and marking five consecutive quarters of positive growth," said CFO Song Wang. He noted the company "continued to demonstrate positive profitability alongside positive operating net cash inflow."
Dingdong’s total number of orders increased 12.1% YoY in Q1. The company attributed its revenue growth to a rise in average monthly transacting users and higher order frequency, as well as new frontline fulfillment stations opened in East China.
For Q2 2025, Dingdong said it aims to sustain YoY growth in scale and achieve non-GAAP profits.
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