Dingdong Maicai (DDL, Financial) has released its Q3 2024 financial results, showcasing impressive growth in both scale and net profit. The company's GMV for the quarter reached 7.27 billion RMB, a 28.3% increase from the previous year, while revenue climbed to 6.54 billion RMB, marking a 27.2% year-on-year rise.
On the profitability front, Dingdong Maicai achieved a Non-GAAP net profit of 160 million RMB, exceeding a 9-fold increase from the previous year, with a net profit margin of 2.5%. Under GAAP standards, net profit was 133 million RMB, a remarkable increase of over 62 times year-over-year. This marks the company's eighth consecutive profitable quarter under Non-GAAP standards and continued profitability under GAAP standards this year, alongside a steady revenue growth for three quarters.
By the end of Q3, Dingdong Maicai held a cash reserve of 4.3 billion RMB, including cash, cash equivalents, short-term restricted funds, and short-term investments. The company's rapid and healthy growth is attributed to the continuous optimization and improvement of its core operational metrics. The average monthly order users increased by 24.5% to 8.22 million, with per-user monthly revenue up by 6.4% from the previous year. Membership expenses rose 8.8%, reaching 540 RMB. Additionally, the average monthly order frequency per user increased by 6.1% to 4.4 times, with members placing orders 7.6 times on average, a 9.8% year-on-year increase.
Dingdong Maicai strengthened its advantageous position in the Jiangsu, Zhejiang, and Shanghai (Jiangzhehu) regions during the quarter. GMV in Shanghai and Jiangsu-Zhejiang areas grew by 24.5% and 40% respectively, with 13 cities experiencing over 50% annual growth. Daily average orders per warehouse reached nearly 1,700 in Shanghai and over 1,000 in Jiangsu and Zhejiang. This success is attributed to the company's focus on enhancing product variety and pricing competitiveness, particularly in leisure and convenience categories like snacks, dairy, and fruits.
Dingdong Maicai also expanded its warehouse network in the Jiangzhehu region, achieving its plan to open 80 new warehouses by the end of Q3 and increasing the goal to 110 for the year. The high-density warehouse layout in core areas helps improve cost efficiency. The Beijing and Guangzhou-Shenzhen regions also witnessed stable growth, with Beijing's GMV rising by 14.6% year-over-year this quarter.
The company's product strategy has contributed significantly, with differentiated development in categories like fresh seafood and beverages adding considerably to overall growth. In Shanghai, over 400 new SKUs were added in categories such as fruits, dairy, alcohol, and snacks.
Founder and CEO Liang Changlin emphasized that Dingdong Maicai's essence lies in offering quality food, and product strength remains their primary driver. The company focuses on differentiating and enhancing product quality, investing in innovation, and improving production efficiency to meet consumer demands.
Based on the strong quarterly performance, Dingdong Maicai remains optimistic about future growth, forecasting substantial year-on-year increases in net profit and scale for the year and Q4, with continued profitability under both Non-GAAP and GAAP standards.
