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Q1 25 EPS
$1.67
MISS 91.20%
Est. $18.96
Q1 25 Revenue
$14.00B
MISS 86.42%
Est. $103.10B
Did PDD Beat Earnings? Q1 2025 Results
PDD Holdings delivered a quarter defined by deliberate sacrifice, as the Chinese e-commerce giant posted Q1 2025 revenue of $14.00 billion, up 10% year-over-year, while earnings per share came in at $1.67 on a non-GAAP diluted basis, down sharply fro… Read more PDD Holdings delivered a quarter defined by deliberate sacrifice, as the Chinese e-commerce giant posted Q1 2025 revenue of $14.00 billion, up 10% year-over-year, while earnings per share came in at $1.67 on a non-GAAP diluted basis, down sharply from $3.03 a year earlier. The steep profitability compression was driven primarily by a 43% surge in sales and marketing expenses to $4.89 billion, as the company poured resources into supporting merchants navigating a difficult operating environment. GAAP net income attributable to ordinary shareholders fell 47% to $2.16 billion, and GAAP operating profit dropped 38% to $2.35 billion, underscoring how aggressively PDD prioritized platform health over near-term margins. Co-CEO Lei Chen acknowledged the investments "weighed on short-term profitability" but framed them as essential to sustainable growth. Management offered little comfort to investors seeking a near-term turnaround, warning that growth rates face additional pressure from a shifting external environment, with sustained ecosystem investment spending expected to continue weighing on results ahead.
Key Takeaways
- • Revenue growth driven by increase in online marketing services and transaction services
- • Operating profit declined 38% due to substantial ecosystem investments including 43% increase in sales and marketing expenses
- • Increased fulfilment fees and payment processing fees drove 25% increase in cost of revenues
- • Strategic decision to increase merchant support investments to help SME merchants drive sales and reduce costs
PDD YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
PDD Revenue by Segment
With YoY comparisons, source: SEC Filings
“In the first quarter, we made substantial investments in our platform ecosystem to support merchants and consumers amid rapid changes in the external environment. These investments weighed on short-term profitability but gave merchants the room to adapt and focus on high-quality, sustainable growth, strengthening the long-term health of the platform.”
— Lei Chen, Q1 2025 Earnings Press Release
PDD Earnings Trends
PDD vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PDD EPS Trend
Earnings per share: estimate vs actual
PDD Revenue Trend
Quarterly revenue: estimate vs actual
PDD Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $16.37 | $1.40 | -91.45% | $15.64B | -85.71% |
| Q4 25 MISS FY | $21.08 | $2.59 | -87.73% | $18.13B | -85.48% |
| FY Full Year | — | $10.59 | — | $63.18B | — |
| Q3 25 MISS | $16.57 | $3.08 | -81.39% | $15.84B | -85.43% |
| Q2 25 MISS | $14.80 | $3.23 | -78.18% | $15.21B | -85.26% |
| Q1 25 MISS | $18.96 | $1.67 | -91.20% | $14.00B | -86.42% |