Shares of PDD Holdings (PDD) popped more than 17% in Wednesday premarket trading after the Chinese firm outperformed expectations in its Q4 earnings report.
PDD reported earnings per share (EPS) of RMB17.32, surpassing the analyst projection of RMB11.28 by RMB6.04. The company's quarterly revenue reached RMB88.88 billion, exceeding the consensus forecast of RMB79.49 billion.
Revenues from online marketing services and other stood at 48.68 billion yuan, beating the expected 46.03 billion yuan. Transaction services generated 40.21 billion yuan in revenue, also surpassing the 34.24 billion yuan projection.
Total operating expenses at Temu owner were reported at 31.41 billion yuan, slightly below the anticipated 31.93 billion yuan.
PDD's management is set to hold a conference call at 7.30 am ET. Analysts at Jefferies highlighted several key points to pay attention to in the upcoming call.
Those include “updates on Temu strategies in US and non-US market, as well as investments in 2024.”
Moreover, insights into consumer sentiment within the domestic market, future expectations, and the competitive landscape of online shopping are on the agenda.
Analysts are also looking out for discussions on GMV and take rates, product category trends, operating expense trends—especially in sales and marketing, the performance of Duoduo Grocery, and the company's cash utilization strategies.