PDD Holdings falls short of revenue and EBIT expectations

PDD Holdings, a major player in the e-commerce sector, recently published its financial results for the fourth quarter of 2024. The company's revenue fell short of expectations, coming in 5% lower than what analysts had predicted. The company reported earnings before interest and taxes (EBIT) that were also below expectations, missing estimates by 3%. A significant factor in this decline was a notable drop in transaction service revenue. Although it grew by 33% year-on-year, it was much less than the anticipated growth of 52%. In contrast, PDD’s revenue from online marketing services saw a growth of 17%. This performance indicates some strengths in their marketing capabilities even as other areas faced challenges. PDD Holdings is advising stakeholders to reset their growth expectations amid these mixed results. The company’s leadership is focused on addressing these challenges while seeking new opportunities for growth.