Dingdong Fresh (DDL, Financial) posted strong financial results for the third quarter ending on September 30, 2024, showcasing significant growth in revenue and profit. The company's total revenue reached 6.5382 billion yuan, a 27.2% increase from the same period in 2023. Net profit soared by 6240.6% to 133.4 million yuan compared to 2.1 million yuan in the previous year. On a non-GAAP basis, net profit was 161.6 million yuan, marking a 942.0% increase from 15.5 million yuan in 2023.
The company achieved a Gross Merchandise Volume (GMV) of 7.267 billion yuan, reflecting a 28.3% year-over-year growth. Product revenue accounted for 6.4584 billion yuan, and service revenue stood at 79.8 million yuan, both contributing to the robust overall revenue growth.
Operational costs increased to 6.4385 billion yuan, driven by a 28.3% rise in the cost of goods sold and a 17.1% hike in fulfillment expenses. Sales and marketing expenses witnessed a notable increase of 39.1%. Administrative costs and spending on product development also saw moderate rises of 14.2% and 1.6%, respectively.
Operating profit was reported at 110.5 million yuan, a substantial improvement from an operating loss of 8.6 million yuan in the previous year. On a non-GAAP basis, operating profit reached 138.8 million yuan, an increase of 2804.1% from 4.8 million yuan the year prior.
Dingdong Fresh enhanced its cash reserves, holding 4.2969 billion yuan in cash, restricted cash, and short-term investments as of September 30, 2024. This was an increase from 4.1576 billion yuan as of June 30, 2024.
Looking ahead, Dingdong Fresh raised its net profit expectations, forecasting significant year-on-year growth in the fourth quarter of 2024. The company anticipates achieving both GAAP and non-GAAP profitability during this period.
In its ongoing efforts to optimize organizational structure and operational efficiency, Dingdong Fresh announced management restructuring. The role of Chief Human Resources Officer, previously held by Gong Hongli, will be reassigned within the existing leadership team to ensure seamless HR functionality.
