JD.com Inc. (NASDAQ: JD) reported second-quarter 2015 results before markets opened Friday. The Beijing-based online direct retailer reported an adjusted diluted loss per American depositary share (ADS) of $0.06 on revenues of $7.4 billion. Second-quarter results compare to the consensus estimates for a loss per ADS of $0.13 and approximately $7.16 billion in revenue. One ADS equals two Class A ordinary shares.

Gross merchandise value (GMV), the total value of sales transacted on the company’s websites, rose to $18.5 billion and annual active customer accounts increased by 72% to 118 million in the 12-month period to June 30. The increases in GMV and net revenues were primarily due to the growth in active customer accounts and the number of fulfilled orders in the second quarter of 2015, according to the company.

Costs of revenues rose 57% to $6.5 billion year over year, primarily due to growth in the direct sales business and increased traffic acquisition costs. Fulfillment expenses, which include procurement, warehousing, delivery and customer service, rose 62% to $500 million.

Sidney Huang, the company’s chief financial officer said:

We are encouraged by another quarter of strong top-line growth, led by our JD Mall business. China’s e-commerce market remains extremely dynamic and in order to achieve long-term sustainable growth and economies of scale, we will continue to invest selectively in high-growth initiatives while maintaining our focus on customer experience and operating efficiency.

In its outlook, JD.com estimated that net revenues will range between about $6.9 and $7.2 billion. Consensus estimates call for earnings per ADS of $0.23 on revenues of approximately $7.13 billion. For the full year, analysts are expecting earnings per ADS of $0.12 on revenues of about $28.49 billion.

JD.com’s ADSs closed down about 4.4% on Thursday at $32.81, but they have traded up about 1.8% in Friday’s premarket session to $33.40. The stock’s 52-week range is $21.78 to $38.00. The consensus price target is $37.80 per ADS, and the high target is $45.00.

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