JD.com (JD) 3Q17 Results: Earnings Beat; Maintains Solid Growth Momentum

Executive Summary

• JD.com reported 3Q17 revenues of ¥83.7 billion, up 39.2% year over year and in line with the consensus. Non-GAAP diluted earnings per ADS was ¥1.52, growing by 361% year over year, beating the consensus of ¥0.59.
• Direct sales revenues reached ¥76.5 billion, up 38% year over year, driven by home appliances and FMCG. Services and others revenues reached ¥7.3 billion, up 46% year over year, thanks to improved brand engagement and better monetization of the platform.
• Guidance for 4Q17 calls for revenues of ¥107.0–¥110.0 billion, up 35%–39% year over year, roughly in line with the consensus of ¥108.1 billion. Full-year 2017 net margin guidance was maintained at 0.5%–1.5%. Management was pleased by the success of the November 11 shopping promotions and remained confident that net margins will continue to expand in the coming years.