Pinduoduo (NASDAQ: PDD) 1Q19 Results: Online Marketing Services Boost Revenues, Operating Margin Impacted by Soaring Costs

Executive Summary

• Pinduoduo reported 1Q19 revenues of ¥4.5 billion, up 228% year over year and beating the consensus estimate of ¥4.1 billion.
• Operating expenses continued rising with operating margin worsening to (46.7)%.
• There were 443.3 million active buyers on Pinduoduo’s platforms for the 12 months ended March 31, 2019, up 50% year over year.