Dada Announces Unaudited Third Quarter 2020 Financial Results

Rhea-AI Summary

Dada Group (NASDAQ: DADA) reported strong Q3 2020 financial results with net revenues reaching RMB1,301.5 million, a remarkable 85.5% year-over-year increase. The number of orders delivered via Dada Now soared to 1 billion, while JDDJ’s Gross Merchandise Volume climbed by 102.9% to RMB21.3 billion. Active consumers grew to 37.3 million, up 77.1% from last year. The company's market share in local on-demand delivery and retail increased significantly, solidifying its leadership position in the sector.

Positive

• Net revenues increased by 85.5% year-over-year to RMB1,301.5 million.
• 1 billion orders delivered in the last twelve months, demonstrating strong demand.
• JDDJ Gross Merchandise Volume rose by 102.9% year-over-year to RMB21.3 billion.
• Active consumers reached 37.3 million, up 77.1% year-over-year.
• Continued market share expansion, with JDDJ and Dada Now holding 24% market share each.

Negative

• None.

SHANGHAI, China, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Dada Group (NASDAQ: DADA, “Dada” or the “Company”), China’s leading local on-demand delivery and retail platform, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Highlights

• Total net revenues were RMB1,301.5 million, an increase of 85.5% year-over-year.
• Number of orders delivered of Dada Now for the twelve months ended September 30, 2020 was 1.0 billion, compared with 635.5 million in the same period of 2019.
• Total Gross Merchandise Volume (“GMV”) of JDDJ for the twelve months ended September 30, 2020 was RMB21.3 billion, an increase of 102.9% year-over-year from RMB10.5 billion in the same period of 2019.
• Number of active consumers for the twelve months ended September 30, 2020 was 37.3 million, an increase of 77.1% year-over-year from 21.1 million in the same period of 2019.

“We are pleased to report strong performance for the third quarter, with our business continuing to grow and our leading position further strengthening with market share expansion. JDDJ remains the largest local on-demand retail platform in the China supermarket segment with 24% market share in the first nine months of 2020, up from 21% in 2019. Dada Now maintains as the largest open on-demand delivery platform in China with 24% market share in the first nine months of 2020, up from 19% market share in 2019¹." commented Mr. Philip Kuai, Chairman and Chief Executive Officer of Dada Group. "Our commitment to bring people everything on demand continues to win over consumers, especially in the lower-tier cities in China where we are expanding. We believe we have an exciting journey ahead as we execute our growth strategy.”

“In the third quarter, we saw strong revenue growth with significant improvement of operating margin,” said Beck Chen, Chief Financial Officer of Dada Group. “We will continue to invest in technology to empower retailers and brand owners with enhanced capabilities and improved efficiency to establish and further strengthen partnership with them, which we believe will provide the foundation to support our future growth. With the strong growth momentum, we are confident that JDDJ revenue will grow by 100% year over year in the second half of 2020.”

Third Quarter 2020 Financial Results        

Total net revenues were RMB1,301.5 million, an increase of 85.5% from RMB701.6 million in the same quarter of 2019.

		Three months ended September 30,
		2019		2020
		RMB		RMB
Net Revenue
Dada Now
Services		385,865		704,961
Sales of goods		10,800		14,034
Subtotal		396,665		718,995
JDDJ
Services note (1)		304,967		582,507
Total		701,6

FAQ

What were Dada Group's Q3 2020 earnings results?

Dada Group reported Q3 2020 net revenues of RMB1,301.5 million, marking an 85.5% increase year-over-year.

How many active consumers did Dada Group report in Q3 2020?

Dada Group reported 37.3 million active consumers for the twelve months ended September 30, 2020.

What is the market share of Dada Group's JDDJ platform as of Q3 2020?

JDDJ holds a 24% market share in the local on-demand retail market as of the first nine months of 2020.

What is the expected revenue growth for JDDJ in the second half of 2020?

Dada Group is confident that JDDJ will achieve revenue growth of 100% year-over-year in the second half of 2020.

How many orders did Dada Now deliver in the past twelve months?

Dada Now delivered 1.0 billion orders for the twelve months ending September 30, 2020.