Dingdong (Cayman) Limited Announces First Quarter 2023 Financial Results
First Quarter 2023 Highlights:
- GMV for the first quarter of 2023 decreased by
6.8% year over year toRMB5,451.2 million (US ) from$793.8 million RMB5,851.3 million in the same quarter of 2022, primarily due to decreased consumer demand in the first quarter of 2023, as most of the pandemic restrictive measures were lifted. In contrast, consumer demand in the first quarter of 2022 was excessively high due to a series of restrictive measures implemented by local governments to contain the spread of the Omicron variant, in particular, during the city-wide lockdown inShanghai last March. GMV in the first quarter of 2023 was also adversely affected by the Company's withdrawal from several cities in 2022, due to difficulties in attaining profitability in these markets in the short term. Furthermore, the company reduced using subsidies and discounted pricing to attract and retain customers, which caused a temporary decrease in GMV. Excluding March, GMV generated in January and February 2023 increased by5.3% year over year toRMB3,600.9 million (US ) from$524.3 million RMB3,420.7 million in the same period of 2022. - Fulfillment expenses for the first quarter of 2023 were
RMB1,196.1 million (US ), a decrease of$174.2 million 19.4% fromRMB1,484.1 million in the same quarter of 2022. Fulfillment expenses as a percentage of total revenues decreased to23.9% from27.3% in the same quarter of 2022. - Non-GAAP net income for the first quarter of 2023 was
RMB6.1 million (US ), compared with non-GAAP net loss of$0.9 million RMB422.2 million in the same quarter of 2022.
Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated,
"During the first quarter of 2023, there was reduced consumer demand for our products as
Dingdong is a start-up dedicated to providing safe, healthy, and delicious food to users. Our mission is to innovate relentlessly for the betterment of people's lives. We will leave no stone unturned to create value for consumers and society, while adhering to our roots and maintaining strict discipline. Our beliefs extend far beyond mere profitability, fueling our passion and drive to achieve success both now and in the future."
Ms. Le Yu, Chief Strategy Officer of Dingdong, stated,
"In the first quarter of 2023, we recorded
First Quarter 2023 Financial Results
Total revenues were
- Product Revenues were
RMB4,937.8 million (US ), a decrease of$719.0 million 8.1% fromRMB5,375.1 million in the same quarter of 2022. Excluding March, total product revenues for the first two months of 2023 increased by5.3% year over year toRMB3,261.8 million (US ) from$475.0 million RMB3,096.2 million in the same period of 2022. - Service Revenues were
RMB59.7 million (US ), a decrease of$8.7 million 12.9% fromRMB68.6 million in the same quarter of 2022, primarily because the Company was proactively optimizing its membership structure.
Total operating costs and expenses were RMB5,043.3 million (
- Cost of goods sold was
RMB3,462.3 million (US ), a decrease of$504.2 million 10.7% fromRMB3,879.3 million in the same quarter of 2022. Cost of goods sold as a percentage of revenues decreased to69.3% from71.3% in the same quarter of 2022, primarily due to improvements in product development capabilities. Gross margin was30.7% , a significant improvement from28.7% in the same quarter of 2022. - Fulfillment expenses were
RMB1,196.1 million (US ), a decrease of$174.2 million 19.4% fromRMB1,484.1 million in the same quarter of 2022. Fulfillment expenses as a percentage of total revenues decreased to23.9% from27.3% in the same quarter of 2022, mainly driven by the increase in average order value and improved frontline fulfillment labor efficiency. - Sales and marketing expenses were
RMB87.5 million (US ), a decrease of$12.7 million 50.3% fromRMB176.1 million in the same quarter of 2022, as user acquisition cost per new transacting user decreased due to the Company's improved product development capabilities and increasingly established brand image. - General and administrative expenses were
RMB86.8 million (US ), a decrease of$12.6 million 26.9% fromRMB118.7 million in the same quarter of 2022, mainly due to the improved efficiency of our staff. - Product development expenses were
RMB210.6 million (US ), a decrease of$30.7 million 10.0% fromRMB233.9 million in the same quarter of 2022, primarily due to the Company's improved R&D efficiency. While advocating on energy and resource saving, the Company will continue its investments in product development capabilities, agricultural technology, data algorithms, and other technology infrastructure, to further enhance its competitiveness.
Loss from operations was narrowed to
Net loss was narrowed to
Non-GAAP net income, which is a non-GAAP measure that excludes share-based compensation expenses, was
Basic and diluted net loss per share were
Cash and cash equivalents and short-term investments were
Conference Call
The Company's management will hold an earnings conference call at 8:00 A.M. Eastern Time on Friday, May 12, 2023 (8:00 P.M. Beijing Time on the same day) to discuss the financial results. The presentation and question and answer session will be presented in both Mandarin and English. Listeners may access the call by dialing the following numbers:
International: | 1-412-317-6061 | ||||
United States Toll Free: | 1-888-317-6003 | ||||
Mainland China Toll Free: | 4001-206115 | ||||
Hong Kong Toll Free: | 800-963976 | ||||
Conference ID: | 7302404 |
The replay will be accessible through May 19, 2023 by dialing the following numbers:
International: | 1-412-317-0088 | ||||
1-877-344-7529 | |||||
Access Code: | 5972888 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.100.me.
About Dingdong (Cayman) Limited
We are a leading fresh grocery e-commerce company in China, with sustainable long-term growth. We directly provide users and households with fresh produce, prepared food, and other food products through a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be Chinese families' first choice for food shopping.
For more information, please visit: https://ir.100.me.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as non-GAAP net (loss)/income, non-GAAP net margin, non-GAAP net (loss)/income attributable to ordinary shareholders and non-GAAP net (loss)/income 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
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable
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
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For investor inquiries, please contact:
Dingdong Fresh
ir@100.me
DINGDONG (CAYMAN) LIMITED | ||||||||||
As of | ||||||||||
December 31, 2022 | March 31, 2023 | March 31, 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 1,856,187 | 1,778,127 | 258,915 | |||||||
Restricted cash | 2,763 | 7,714 | 1,123 | |||||||
Short-term investments | 4,636,774 | 3,922,041 | 571,093 | |||||||
Accounts receivable, net | 141,468 | 103,933 | 15,134 | |||||||
Inventories | 604,884 | 478,763 | 69,713 | |||||||
Advance to suppliers | 83,835 | 72,262 | 10,522 | |||||||
Prepayments and other current assets | 170,336 | 181,256 | 26,394 | |||||||
Total current assets | 7,496,247 | 6,544,096 | 952,894 | |||||||
Non-current assets: | ||||||||||
Property and equipment, net | 314,980 | 277,907 | 40,466 | |||||||
Operating lease right-of-use assets | 1,425,117 | 1,362,000 | 198,323 | |||||||
Other non-current assets | 145,563 | 145,815 | 21,232 | |||||||
Total non-current assets | 1,885,660 | 1,785,722 | 260,021 | |||||||
TOTAL ASSETS | 9,381,907 | 8,329,818 | 1,212,915 | |||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | 1,886,689 | 1,464,798 | 213,291 | |||||||
Customer advances and deferred revenue | 253,010 | 241,289 | 35,134 | |||||||
Accrued expenses and other current | 810,963 | 653,309 | 95,129 | |||||||
Salary and welfare payable | 329,104 | 334,438 | 48,698 | |||||||
Operating lease liabilities, current | 693,496 | 704,286 | 102,552 | |||||||
Short-term borrowings | 4,237,978 | 3,803,576 | 553,844 | |||||||
Total current liabilities | 8,211,240 | 7,201,696 | 1,048,648 | |||||||
Non-current liabilities: | ||||||||||
Operating lease liabilities, non-current | 678,000 | 615,025 | 89,555 | |||||||
Other non-current liabilities | 75,000 | 115,067 | 16,755 | |||||||
Total non-current liabilities | 753,000 | 730,092 | 106,310 | |||||||
TOTAL LIABILITIES | 8,964,240 | 7,931,788 | 1,154,958 |
DINGDONG (CAYMAN) LIMITED | ||||||||||
As of | ||||||||||
December 31, 2022 | March 31, 2023 | March 31, 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED) | ||||||||||
Mezzanine Equity: | ||||||||||
Redeemable noncontrolling interests | 107,490 | 109,550 | 15,952 | |||||||
TOTAL MEZZANINE EQUITY | 107,490 | 109,550 | 15,952 | |||||||
Shareholders' equity | ||||||||||
Ordinary shares | 4 | 4 | 1 | |||||||
Additional paid-in capital | 13,922,811 | 13,982,043 | 2,035,943 | |||||||
Treasury stock | (20,666) | (20,666) | (3,010) | |||||||
Accumulated deficit | (13,580,086) | (13,634,537) | (1,985,343) | |||||||
Accumulated other comprehensive loss | (11,886) | (38,364) | (5,586) | |||||||
TOTAL SHAREHOLDERS' EQUITY | 310,177 | 288,480 | 42,005 | |||||||
TOTAL LIABILITIES, MEZZANINE EQUITY | 9,381,907 | 8,329,818 | 1,212,915 |
DINGDONG (CAYMAN) LIMITED | ||||||||||
For the three months ended March 31, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Revenues: | ||||||||||
Product revenues | 5,375,090 | 4,937,763 | 718,994 | |||||||
Service revenues | 68,582 | 59,715 | 8,695 | |||||||
Total revenues | 5,443,672 | 4,997,478 | 727,689 | |||||||
Operating costs and expenses: | ||||||||||
Cost of goods sold | (3,879,328) | (3,462,337) | (504,155) | |||||||
Fulfillment expenses | (1,484,142) | (1,196,059) | (174,160) | |||||||
Sales and marketing expenses | (176,116) | (87,464) | (12,736) | |||||||
Product development expenses | (233,915) | (210,635) | (30,671) | |||||||
General and administrative expenses | (118,771) | (86,842) | (12,645) | |||||||
Total operating costs and expenses | (5,892,272) | (5,043,337) | (734,367) | |||||||
Other operating expenses, net | (13,066) | (4,197) | (611) | |||||||
Loss from operations | (461,666) | (50,056) | (7,289) | |||||||
Interest income | 13,234 | 33,751 | 4,915 | |||||||
Interest expenses | (30,708) | (28,876) | (4,205) | |||||||
Other income, net | 1,757 | 2,866 | 417 | |||||||
Loss before income tax | (477,383) | (42,315) | (6,162) | |||||||
Income tax expenses | - | (10,076) | (1,467) | |||||||
Net loss | (477,383) | (52,391) | (7,629) | |||||||
Accretion of redeemable noncontrolling interests | (1,435) | (2,060) | (300) | |||||||
Net loss attributable to ordinary shareholders | (478,818) | (54,451) | (7,929) |
DINGDONG (CAYMAN) LIMITED | ||||||||||
For the three months ended March 31, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Net loss per Class A and Class B ordinary share: | ||||||||||
Basic and diluted | (1.48) | (0.17) | (0.02) | |||||||
Shares used in net loss per Class A and Class B | ||||||||||
Basic and diluted | 324,443,234 | 324,539,178 | 324,539,178 | |||||||
Other comprehensive loss, net of tax of nil: | ||||||||||
Foreign currency translation adjustments | (24,959) | (26,478) | (3,855) | |||||||
Comprehensive loss | (502,342) | (78,869) | (11,484) | |||||||
Accretion of redeemable noncontrolling interests | (1,435) | (2,060) | (300) | |||||||
Comprehensive loss attributable to ordinary | (503,777) | (80,929) | (11,784) |
DINGDONG (CAYMAN) LIMITED | ||||||||||
For the three months ended March 31, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Net cash used in operating activities | (385,203) | (306,839) | (44,679) | |||||||
Net cash generated from investing activities | 885,907 | 669,811 | 97,532 | |||||||
Net cash generated from / (used in) financing activities | 98,991 | (432,873) | (63,031) | |||||||
Effect of exchange rate changes on cash and cash | (3,560) | (3,209) | (468) | |||||||
Net increase / (decrease) in cash and cash equivalents | 596,135 | (73,110) | (10,646) | |||||||
Cash and cash equivalents and restricted cash at the | 670,432 | 1,858,951 | 270,684 | |||||||
Cash and cash equivalents and restricted cash at the | 1,266,567 | 1,785,841 | 260,038 |
DINGDONG (CAYMAN) LIMITED | ||||||||||
For the three months ended | ||||||||||
March 31, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Net loss | (477,383) | (52,391) | (7,629) | |||||||
Add: share-based compensation expenses (1) | 55,174 | 58,462 | 8,513 | |||||||
Non-GAAP net (loss) / income | (422,209) | 6,071 | 884 | |||||||
Net loss margin | (8.8 %) | (1.1 %) | (1.1 %) | |||||||
Add: share-based compensation expenses | 1.0 % | 1.2 % | 1.2 % | |||||||
Non-GAAP net (loss) / income margin | (7.8 %) | 0.1 % | 0.1 % | |||||||
Net loss attributable to ordinary shareholders | (478,818) | (54,451) | (7,929) | |||||||
Add: share-based compensation expenses (1) | 55,174 | 58,462 | 8,513 | |||||||
Non-GAAP net (loss) / income attributable to ordinary | (423,644) | 4,011 | 584 | |||||||
Net loss per Class A and Class B ordinary share: | ||||||||||
Basic and diluted | (1.48) | (0.17) | (0.02) | |||||||
Add: share-based compensation expenses | 0.17 | 0.18 | 0.02 | |||||||
Non-GAAP net (loss) / income per Class A and Class B | ||||||||||
Basic and diluted | (1.31) | 0.01 | 0.00 | |||||||
(1) Share-based compensation expenses are recognized as follows: | ||||||||||
For the three months ended | ||||||||||
March 31, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Fulfillment expenses | 12,116 | 11,970 | 1,743 | |||||||
Sales and marketing expenses | (255) | 789 | 115 | |||||||
Product development expenses | 26,037 | 28,424 | 4,139 | |||||||
General and administrative expenses | 17,276 | 17,279 | 2,516 | |||||||
Total | 55,174 | 58,462 | 8,513 |
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SOURCE Dingdong (Cayman) Limited