Is Pinduoduo Catching Up to Alibaba and JD.com?
Pinduoduo remains unprofitable, but its adjusted net loss narrowed year over year from RMB 673.4 million to RMB 411.3 million ($59.9 million), or $0.04 per share -- which beat expectations by $0.15. Pinduoduo's average monthly active users (MAUs) rose 88% annually to 366 million during the quarter, and its number of active buyers over the past 12 months rose 41% to 483 million. Those numbers seem to indicate that Pinduoduo is bigger than JD, but it generates only about 5% as much quarterly revenue as JD because its order sizes are much lower. JD takes on inventories and handles logistics as a direct retailer (which enables it to generate higher e-commerce revenues than Pinduoduo or Alibaba), but that approach requires much more capital. However, the average active buyer on Pinduoduo spent RMB 1,467.5 ($206.90) on the platform over the past 12 months -- a 92% jump from a year earlier.