Dingdong (Cayman) Limited Announces First Quarter 2022 Financial Results
Dingdong (Cayman) Limited (NYSE: DDL) reported strong first-quarter 2022 results, with GMV up 36.0% to RMB5,851.3 million (US$923.0 million) and total revenue increasing by 43.2% to RMB5,443.7 million (US$858.7 million). The number of orders rose 15.6% to 80.6 million. The non-GAAP net loss margin improved significantly to 7.8%, showing a positive trend towards profitability. Operating loss decreased to RMB448.6 million (US$70.8 million) from RMB1,333.9 million in Q1 2021, with cash reserves standing at RMB4,852.7 million (US$765.5 million) at the end of March 2022.
- GMV increased by 36.0% year-over-year to RMB5,851.3 million.
- Total revenue rose by 43.2% to RMB5,443.7 million.
- Number of orders increased by 15.6% to 80.6 million.
- Non-GAAP net loss margin improved to 7.8%, showing progress toward profitability.
- Operating loss decreased significantly to RMB448.6 million from RMB1,333.9 million.
- Net loss of RMB477.4 million, despite improvement over prior year.
- Cash and cash equivalents decreased from RMB5,231.1 million to RMB4,852.7 million.
SHANGHAI, June 15, 2022 /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), the leading and fast-growing fresh grocery e-commerce company in China, with advanced supply chain capabilities, today announced its unaudited financial results for the quarter ended March 31, 2022.
First Quarter 2022 Highlights:
- GMV for the first quarter of 2022 increased by
36.0% year over year to RMB5,851.3 million (US$923.0 million ) from RMB4,303.5 million in the same quarter of 2021. - Total revenue for the first quarter of 2022 increased by
43.2% year over year to RMB5,443.7 million (US$858.7 million ) from RMB3,802.1 million in the same quarter of 2021. - Total number of orders for the first quarter of 2022 increased by
15.6% year over year to 80.6 million from 69.8 million in the same quarter of 2021.
Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated, "During the first quarter of 2022, we maintained solid growth momentum in revenue, order numbers and average order value, while our net loss margin further narrowed substantially. Our strategy of prioritizing product capabilities as our primary growth driver has proven successful, and we believe that Dingdong is on a solid path to profitability."
Ms. Le Yu, Chief Strategy Officer of Dingdong, stated, "Since we changed our strategy last August to 'efficiency first, with due consideration to scale', our non-GAAP net loss margin in the previous four quarters decreased sequentially from
First Quarter 2022 Financial Results
Total revenues were RMB5,443.7 million (US
- Product Revenues were RMB5,375.1 million (US
$847 .9 million), an increase of43.1% from RMB3,757.2 million in the same quarter of 2021, primarily driven by the increase in the number of orders and average order value. - Service Revenues were RMB68.6 million (US
$10 .8 million), an increase of52.7% from RMB44.9 million in the same quarter of 2021, primarily driven by the increase in the number of customers subscribing to Dingdong's membership program.
Total operating costs and expenses were RMB5,892.3 million (US
- Cost of Goods Sold was RMB3,879.3 million (US
$611.9 million ), an increase of25.8% from RMB3,082.8 million in the same quarter of 2021, primarily driven by the increase in total revenue. Gross margin was28.7% , which significantly improved from18.9% in the same quarter of 2021. - Fulfillment expenses were RMB1,484.1 million (US
$234 .1 million) in consistent with the same quarter of 2021. Fulfillment expenses as a percentage of total revenue decreased from39.0% to27.3% , as we further improved our supply chain efficiency. - Sales and marketing expenses were RMB176.1 million (US
$27 .8 million), a decrease of44.7% from RMB318.3 million in the same quarter of 2021, as product capabilities became our primary growth driver and we attracted customers more efficiently. - General and administrative expenses were RMB118.7 million (US
$18.7 million ), an increase of25.9% from RMB94.3 million in the same quarter of 2021, mainly due to the increased business scale of the Company. - Product development expenses were RMB233.9 million (US
$36 .9 million), an increase of49.5% from RMB156.5 million in the same quarter of 2021, mainly due to the increased investments in product development capability and technology.
Loss from operations was RMB448.6 million (US
Net loss was RMB477.4 million (US
Non-GAAP net loss, which is a non-GAAP measure that excludes share-based compensation expenses, was RMB422.2 million (US
Basic and diluted net loss per share were RMB1.48 (US
Cash and cash equivalents and short-term investments were RMB4,852.7 million (US
About Dingdong (Cayman) Limited
We are the largest and fast-growing fresh grocery e-commerce company in China, in terms of average MAU in 2021, according to the report of China Insights Consultancy ("CIC"). We directly provide users and households with fresh produce, meat, seafood, prepared food, and other food products through a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. With fresh groceries as our core product categories, we have successfully expanded to providing prepared food and other food products to grow into a leading one-stop online shopping destination in China for consumers to make purchases for their daily lives. At the same time, we are working to modernize China's traditional agricultural supply chain through standardization and digitalization, empowering upstream farms and suppliers to make their production more efficient and tailored to actual demand. Furthermore, leveraging our longstanding cooperation with upstream farms and suppliers, we have further expanded to developing and producing private label products to enrich our offerings to all consumers.
For more information, please visit: www.100.me.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as non-GAAP net loss, non-GAAP net loss margin, non-GAAP net loss attributable to ordinary shareholders and non-GAAP net loss per share, basic and diluted, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance.
For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.3393 to US
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, business outlook and quotations from management in this announcement, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the on-demand e-commerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.
For investor inquiries, please contact:
Dingdong Fresh
ir@100.me
DINGDONG (CAYMAN) LIMITED | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(Amounts in thousands of RMB and US$) | ||||||||||
As of | ||||||||||
December 31, | March 31, 2022 | March 31, 2022 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 662,768 | 1,256,903 | 198,272 | |||||||
Restricted cash | 7,664 | 9,664 | 1,524 | |||||||
Short-term investments | 4,568,346 | 3,595,810 | 567,225 | |||||||
Accounts receivable, net | 191,519 | 257,264 | 40,582 | |||||||
Inventories | 537,472 | 475,223 | 74,965 | |||||||
Advance to suppliers | 86,711 | 136,047 | 21,461 | |||||||
Prepayments and other current assets | 461,843 | 283,530 | 44,726 | |||||||
Total current assets | 6,516,323 | 6,014,441 | 948,755 | |||||||
Non-current assets: | ||||||||||
Property and equipment, net | 472,371 | 460,103 | 72,579 | |||||||
Operating lease right-of-use assets | 2,245,571 | 1,960,191 | 309,213 | |||||||
Other non-current assets | 185,793 | 188,303 | 29,704 | |||||||
Total non-current assets | 2,903,735 | 2,608,597 | 411,496 | |||||||
TOTAL ASSETS | 9,420,058 | 8,623,038 | 1,360,251 | |||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | 2,058,624 | 1,870,064 | 294,995 | |||||||
Customer advances and deferred revenue | 243,480 | 243,629 | 38,432 | |||||||
Accrued expenses and other current liabilities | 653,261 | 681,475 | 107,500 | |||||||
Salary and welfare payable | 244,740 | 245,119 | 38,667 | |||||||
Operating lease liabilities | 969,494 | 870,931 | 137,386 | |||||||
Short-term borrowings | 3,121,046 | 3,197,730 | 504,430 | |||||||
Current portion of long-term borrowings | 57,875 | 24,250 | 3,825 | |||||||
Total current liabilities | 7,348,520 | 7,133,198 | 1,125,235 | |||||||
Non-current liabilities: | ||||||||||
Operating lease liabilities | 1,244,096 | 1,049,503 | 165,555 | |||||||
Other non-current liabilities | 69,373 | 69,373 | 10,943 | |||||||
Total non-current liabilities | 1,313,469 | 1,118,876 | 176,498 | |||||||
TOTAL LIABILITIES | 8,661,989 | 8,252,074 | 1,301,733 |
DINGDONG (CAYMAN) LIMITED | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||||
(Amounts in thousands of RMB and US$) | ||||||||||
As of | ||||||||||
December 31, 2021 | March 31, 2022 | March 31, | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED) | ||||||||||
Mezzanine Equity: | ||||||||||
Redeemable noncontrolling interests | 30,000 | 101,435 | 16,001 | |||||||
TOTAL MEZZANINE EQUITY | 30,000 | 101,435 | 16,001 | |||||||
Shareholders' (deficit)/equity | ||||||||||
Ordinary shares | 4 | 4 | 1 | |||||||
Additional paid-in capital | 13,685,062 | 13,740,237 | 2,167,469 | |||||||
Treasury stock | (7,042) | (16,980) | (2,679) | |||||||
Accumulated deficit | (12,765,713) | (13,244,531) | (2,089,274) | |||||||
Accumulated other comprehensive loss | (184,242) | (209,201) | (33,000) | |||||||
TOTAL SHAREHOLDERS' EQUITY | 728,069 | 269,529 | 42,517 | |||||||
TOTAL LIABILITIES, MEZZANINE EQUITY | 9,420,058 | 8,623,038 | 1,360,251 | |||||||
DINGDONG (CAYMAN) LIMITED | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||
(Amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||||
For the three months ended | ||||||||||||
2021 | 2022 | 2022 | ||||||||||
RMB | RMB | US$ | ||||||||||
(Unaudited) | ||||||||||||
Revenues: | ||||||||||||
Product revenues | 3,757,208 | 5,375,090 | 847,900 | |||||||||
Service revenues | 44,911 | 68,582 | 10,819 | |||||||||
Total revenues | 3,802,119 | 5,443,672 | 858,719 | |||||||||
Operating costs and expenses: | ||||||||||||
Cost of goods sold | (3,082,840) | (3,879,328) | (611,949) | |||||||||
Fulfillment expenses | (1,484,091) | (1,484,142) | (234,117) | |||||||||
Sales and marketing expenses | (318,259) | (176,116) | (27,782) | |||||||||
Product development expenses | (156,502) | (233,915) | (36,899) | |||||||||
General and administrative expenses | (94,347) | (118,771) | (18,736) | |||||||||
Total operating costs and expenses | (5,136,039) | (5,892,272) | (929,483) | |||||||||
Loss from operations | (1,333,920) | (448,600) | (70,764) | |||||||||
Interest income | 3,840 | 13,234 | 2,088 | |||||||||
Interest expenses | (14,554) | (30,708) | (4,844) | |||||||||
Other income | 5,799 | 15,115 | 2,384 | |||||||||
Other expenses | (1,454) | (26,424) | (4,168) | |||||||||
Changes in fair value of warrant liabilities | (44,457) | - | - | |||||||||
Loss before income tax | (1,384,746) | (477,383) | (75,304) | |||||||||
Income tax expenses | - | - | - | |||||||||
Net loss | (1,384,746) | (477,383) | (75,304) | |||||||||
Accretion of redeemable convertible preferred shares | (66,432) | - | - | |||||||||
Accretion of redeemable noncontrolling interests | - | (1,435) | (226) | |||||||||
Net loss attributable to ordinary shareholders | (1,451,178) | (478,818) | (75,530) | |||||||||
DINGDONG (CAYMAN) LIMITED | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED) | ||||||||||||
(Amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||||
For the three months ended | ||||||||||||
2021 | 2022 | 2022 | ||||||||||
RMB | RMB | US$ | ||||||||||
(Unaudited) | ||||||||||||
Net loss per ordinary share: | ||||||||||||
Basic and diluted | (22.36) | |||||||||||
Shares used in net loss per ordinary share computation: | ||||||||||||
Basic and diluted | 64,908,700 | |||||||||||
Net loss per Class A and Class B ordinary share: | ||||||||||||
Basic and diluted | (1.48) | (0.23) | ||||||||||
Shares used in net loss per Class A and Class B ordinary | ||||||||||||
Basic and diluted | 324,443,234 | 324,443,234 | ||||||||||
Other comprehensive income/(loss), net of tax of nil: | ||||||||||||
Foreign currency translation adjustments | 4,626 | (24,959) | (3,937) | |||||||||
Comprehensive loss | (1,380,120) | (502,342) | (79,241) | |||||||||
Accretion of redeemable convertible preferred shares | (66,432) | - | - | |||||||||
Accretion of redeemable noncontrolling interests | - | (1,435) | (226) | |||||||||
Comprehensive loss attributable to ordinary shareholders | (1,446,552) | (503,777) | (79,467) | |||||||||
DINGDONG (CAYMAN) LIMITED | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(Amounts in thousands of RMB and US$) | ||||||||||||
For the three months ended March 31, | ||||||||||||
2021 RMB | 2022 RMB | 2022 US$ | ||||||||||
(Unaudited) | ||||||||||||
Net cash used in operating activities | (1,014,589) | (385,203) | (60,764) | |||||||||
Net cash (used in)/provided by investing | (312,440) | 885,907 | 139,749 | |||||||||
Net cash generated from financing activities | 4,286,222 | 98,991 | 15,615 | |||||||||
Effect of exchange rate changes on cash and | 4,566 | (3,560) | (562) | |||||||||
Net increase in cash and cash equivalents | 2,963,759 | 596,135 | 94,038 | |||||||||
Cash and cash equivalents and restricted cash | 1,450,448 | 670,432 | 105,758 | |||||||||
Cash and cash equivalents and restricted | 4,414,207 | 1,266,567 | 199,796 | |||||||||
DINGDONG (CAYMAN) LIMITED | |||||||||||||||||||||||||||||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |||||||||||||||||||||||||||||||||
(Amounts in thousands of RMB and US$, except for number of shares and per share data) | |||||||||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||||||||
2021 | 2022 | 2022 | |||||||||||||||||||||||||||||||
RMB | RMB | US$ | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
Net loss | (1,384,746) | (477,383) | (75,304) | ||||||||||||||||||||||||||||||
Add: share-based compensation expenses (1) | 9,151 | 55,174 | 8,703 | ||||||||||||||||||||||||||||||
Non-GAAP net loss | (1,375,595) | (422,209) | (66,601) | ||||||||||||||||||||||||||||||
Net loss margin | (36.4 %) | (8.8 %) | |||||||||||||||||||||||||||||||
Add: share-based compensation expenses | 0.2 % | 1.0 % | |||||||||||||||||||||||||||||||
Non-GAAP net loss margin | (36.2 %) | (7.8 %) | |||||||||||||||||||||||||||||||
Net loss attributable to ordinary shareholders | (1,451,178) | (478,818) | (75,530) | ||||||||||||||||||||||||||||||
Add: share-based compensation expenses (1) | 9,151 | 55,174 | 8,703 | ||||||||||||||||||||||||||||||
Non-GAAP net loss attributable to ordinary | (1,442,027) | (423,644) | (66,827) | ||||||||||||||||||||||||||||||
Net loss per ordinary shareholders: | |||||||||||||||||||||||||||||||||
Basic and diluted | (22.36) | ||||||||||||||||||||||||||||||||
Add: share-based compensation expenses | 0.14 | ||||||||||||||||||||||||||||||||
Non-GAAP net loss per ordinary share: Basic and diluted | (22.22) | ||||||||||||||||||||||||||||||||
Net loss per Class A and Class B ordinary share: | |||||||||||||||||||||||||||||||||
Basic and diluted | (1.48) | (0.23) | |||||||||||||||||||||||||||||||
Add: share-based compensation expenses | 0.17 | 0.02 | |||||||||||||||||||||||||||||||
Non-GAAP net loss per Class A and Class B | |||||||||||||||||||||||||||||||||
Basic and diluted | (1.31) | (0.21) | |||||||||||||||||||||||||||||||
(1) Share-based compensation expenses are recognized as follows: | |||||||||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||||||||
2021 | 2022 | 2022 | |||||||||||||||||||||||||||||||
RMB | RMB | US$ | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
Fulfillment expenses | 2,444 | 12,116 | 1,911 | ||||||||||||||||||||||||||||||
Sales and marketing expenses | 352 | (255) | (40) | ||||||||||||||||||||||||||||||
Product development expenses | 3,062 | 26,037 | 4,107 | ||||||||||||||||||||||||||||||
General and administrative expenses | 3,293 | 17,276 | 2,725 | ||||||||||||||||||||||||||||||
Total | 9,151 | 55,174 | 8,703 | ||||||||||||||||||||||||||||||
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SOURCE Dingdong (Cayman) Limited
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