Dada's first quarter 2022 updates: Q1 revenues up 74% YOY on comparable basis, net profit margin significantly improved

Rhea-AI Summary

Dada Group (NASDAQ: DADA) reported a significant revenue increase for Q1 2022, with total net revenues reaching RMB2,025.3 million, reflecting a 74% year-over-year growth on a comparable basis. The company’s net profit margin improved by approximately 30 percentage points. Total GMV for JDDJ was RMB49.1 billion, up 74.4% year-over-year, and active consumers rose to 67.9 million. With enhanced cooperation with JD.com, Dada’s Shop Now GMV saw a more than threefold increase.

Positive

• Q1 net revenues of RMB2,025.3 million, up 74% year-over-year.
• Net profit margin improved by around 30 percentage points.
• Total GMV for JDDJ increased to RMB49.1 billion, a 74.4% year-over-year rise.
• Active consumers grew to 67.9 million from 46.1 million in 2021.
• Net revenues from JDDJ reached RMB1,402.3 million, an 80% increase from last year.

Negative

• None.

SHANGHAI, May 16, 2022 /PRNewswire/ -- Dada Nexus Limited (Dada Group, NASDAQ: DADA), China's leading local on-demand delivery and retail platform, today announced its unaudited financial results for the first quarter ended March 31, 2022.

Financial highlights:

• Total net revenues first quarter were RMB2,025.3 million. Aligning the revenue of Dada Now last-mile delivery services to a comparable basis, revenue growth would have been 74% year over year.
• Net profit margin improved by about 30 percentage points year over year on a comparable basis.
• Total Gross Merchandise Volume ("GMV") of JDDJ for the twelve months ended March 31, 2022 was RMB49.1 billion, an increase of 74.4% year over year from RMB28.1 billion in the same period of 2021.
• Number of active consumers for the twelve months ended March 31, 2022 was 67.9 million, as compared with 46.1 million in the same period of 2021.
• Net revenues generated from JDDJ were RMB1,402.3 million, an increase of 80% year over year from 778.3 million in the same period of 2021.

Operation highlights:

• Since JD.com's increased investment in Dada Group was completed at the end of February, the omni-channel business cooperation between Dada Group and JD.com has further strengthened. In the first quarter, the GMV of Shop Now, or Xiaoshigou, the unified brand for all on-demand retail services operated by Dada Group within the JD ecosystem, increased by more than 3 times year over year. The geographical coverage of the Nearby, or Fujin tab on the JD.com mobile App, which is one of the major entry points of Shop Now, further expanded, gaining more exposure among JD users.
• Dada Group continued to empower retailers and brands via innovative digital tools, to help them accelerate digital transformation:

- Haibo, the omni-channel O2O operating system for retailers, continued to empower more merchants to carry out O2O operations across multiple channels efficiently. As of the end of March, the Haibo system had been deployed in more than 6,700 retail chain stores, including about 3,000 stores of around 50 top100 supermarket chains in China.
- To help improve brand partners' sales efficiency, Dada Group has recently launched the Earth Grid System, or Kunce, which visualizes brands' online inventory down to a 3 x 3 km grid level, helping brands to optimize point of sales coverage and gain regional sales share. As of now, more than 30 brands in food and beverage, grain and oil, mom-and-baby care products, and other categories have adopted the Kunce system.
- The digitized in-store picking service, Dada Picking, had been fully rolled out to Walmart stores nationwide by the end of March. Dada Picking's empowerment in helping address labor shortages and digitalize the picking process is highly valued by retailers. As a result, order volume maintained strong growth momentum. In the first quarter, the number of orders fulfilled by Dada Picking increased by more than 3 times year-over-year.

About Dada Group

Dada Group is a leading platform of local on-demand retail and delivery in China. It operates JDDJ, one of China's largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The company's two platforms are inter-connected and mutually beneficial. The Dada Now platform enables improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform. In June 2020, Dada Group began trading on the Nasdaq Global Market, under the ticker symbol "DADA".

 

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SOURCE DADA GROUP

FAQ

What were DADA's revenues for the first quarter of 2022?

DADA reported total net revenues of RMB2,025.3 million for Q1 2022.

How much did DADA's GMV increase in Q1 2022?

DADA's total GMV for JDDJ increased to RMB49.1 billion, a rise of 74.4% year-over-year.

What is the net profit margin improvement for DADA in Q1 2022?

DADA's net profit margin improved by about 30 percentage points year-over-year.

How many active consumers did DADA have in the last twelve months?

DADA had 67.9 million active consumers for the twelve months ended March 31, 2022.

What is the significance of JD.com's investment in DADA?

JD.com's increased investment has strengthened the omni-channel business cooperation, contributing to significant growth in Shop Now GMV.