Dingdong (Cayman) Limited Announces Fourth Quarter 2022 Financial Results
Dingdong (Cayman) Limited (NYSE: DDL) reported strong financial results for Q4 2022, indicating significant growth in its operations. The company achieved a 12.7% increase in Gross Merchandise Value (GMV) year-over-year, reaching RMB6,769.5 million (US$981.5 million). Total revenues rose by 13.1% to RMB6,200.6 million (US$899.0 million). Notably, Dingdong recorded its first GAAP net profit of RMB49.9 million (US$7.2 million) and a non-GAAP net profit of RMB115.8 million (US$16.8 million). Cash and cash equivalents increased to RMB6,493.0 million (US$941.4 million) from RMB5,231.1 million a year prior, supporting the company's strategic focus on market penetration and product innovation for future growth.
- Q4 2022 GMV increased by 12.7% year-over-year to RMB6,769.5 million (US$981.5 million).
- Total revenues rose by 13.1% year-over-year to RMB6,200.6 million (US$899.0 million).
- Achieved GAAP net profit for the first time at RMB49.9 million (US$7.2 million).
- Non-GAAP net profit significantly improved to RMB115.8 million (US$16.8 million).
- Operating cash inflow for Q4 2022 was RMB682.1 million, with positive cash flow for the entire year.
- Gross margin improved to 32.9% from 27.7% in Q4 2021.
- Service revenues decreased by 9.9% to RMB62.7 million (US$9.1 million) due to optimization of membership structure.
Fourth Quarter 2022 Highlights:
- GMV for the fourth quarter of 2022 increased by
12.7% year over year toRMB6,769.5 million (US ) from$981.5 million RMB6,004.0 million in the same quarter of 2021. - Total revenues for the fourth quarter of 2022 increased by
13.1% year over year toRMB6,200.6 million (US ) from$899.0 million RMB5,483.5 million in the same quarter of 2021. - Non-GAAP net income for the fourth quarter of 2022 was
RMB115.8 million (US ), compared with non-GAAP net loss of$16.8 million RMB1,034.1 million in the same quarter of 2021.
Mr.
"In the fourth quarter of 2022, we recorded GAAP net profit for the first time of
"Covid-19 only mildly impacted our covered cities and regions in October and November, and our fourth quarter entered a trajectory of profitability in October. To break it down monthly, we achieved a positive non-GAAP net profit in October and a positive GAAP net profit in November and December. It's been five years since Dingdong was founded in 2017, and we are pleased to see our efforts pay off and our business model proven. Looking ahead to 2023, we are confident of achieving non-GAAP break-even for both the first quarter and the full year of 2023."
Fourth Quarter 2022 Financial Results
Total revenues were
- Product Revenues were
RMB6,138.0 million (US ), an increase of$889.9 million 13.4% fromRMB5,413.9 million in the same quarter of 2021, primarily driven by the increase in average order value. - Service Revenues were
RMB62.7 million (US ), a decrease of$9.1 million 9.9% fromRMB69.6 million in the same quarter of 2021, primarily because of the Company's proactive optimization of its membership structure to acquire and retain higher-value users.
Total operating costs and expenses were RMB6,155.1 million (
- Cost of goods sold was
RMB4,162.0 million (US ), an increase of$603.4 million 5.0% fromRMB3,964.8 million in the same quarter of 2021. Cost of goods sold as a percentage of revenues decreased to67.1% from72.3% in the same quarter of 2021, primarily due to improvements in product development capabilities. Gross margin was32.9% , a significant improvement from27.7% in the same quarter of 2021. - Fulfillment expenses were
RMB1,493.6 million (US ), a decrease of$216.6 million 16.4% fromRMB1,786.3 million in the same quarter of 2021. Fulfillment expenses as a percentage of total revenues decreased to24.1% from32.6% in the same quarter of 2021, mainly driven by the increase in average order value and improved frontline fulfillment labor efficiency. - Sales and marketing expenses were
RMB91.1 million (US ), a decrease of$13.2 million 74.5% fromRMB358.0 million in the same quarter of 2021, 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
RMB149.3 million (US ), an increase of$21.7 million 15.4% fromRMB129.4 million in the same quarter of 2021. General and administrative expenses as a percentage of total revenues remained stable at2.4% . - Product development expenses were
RMB259.0 million (US ), a decrease of$37.5 million 9.0% fromRMB284.7 million in the same quarter of 2021. The Company continued its investments in product development capabilities, agricultural technology, data algorithms, and other technology infrastructure.
Income from operations was
Net income was
Non-GAAP net income, which is a non-GAAP measure that excludes share-based compensation expenses, was
Basic and diluted net income 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
International: | 1-412-317-6061 | ||||
United States Toll Free: | 1-888-317-6003 | ||||
Mainland | 4001-206115 | ||||
Hong Kong Toll Free: | 800-963976 | ||||
Conference ID: | 6437553 |
The replay will be accessible through
International: | 1-412-317-0088 | ||||
1-877-344-7529 | |||||
Access Code: | 8634168 |
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
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
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of RMB and US$) | ||||||||||
As of | ||||||||||
December 31, 2021 | 2022 | 2022 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 662,768 | 1,856,187 | 269,122 | |||||||
Restricted cash | 7,664 | 2,763 | 401 | |||||||
Short-term investments | 4,568,346 | 4,636,774 | 672,269 | |||||||
Accounts receivable, net | 191,519 | 141,468 | 20,511 | |||||||
Inventories | 537,472 | 604,884 | 87,700 | |||||||
Advance to suppliers | 86,711 | 83,835 | 12,155 | |||||||
Prepayments and other current assets | 461,843 | 170,336 | 24,696 | |||||||
Total current assets | 6,516,323 | 7,496,247 | 1,086,854 | |||||||
Non-current assets: | ||||||||||
Property and equipment, net | 472,371 | 314,980 | 45,668 | |||||||
Operating lease right-of-use assets | 2,245,571 | 1,425,117 | 206,622 | |||||||
Other non-current assets | 185,793 | 145,563 | 21,105 | |||||||
Total non-current assets | 2,903,735 | 1,885,660 | 273,395 | |||||||
TOTAL ASSETS | 9,420,058 | 9,381,907 | 1,360,249 | |||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | 2,058,624 | 1,886,689 | 273,544 | |||||||
Customer advances and deferred revenue | 243,480 | 253,010 | 36,683 | |||||||
Accrued expenses and other current liabilities | 653,261 | 810,963 | 117,579 | |||||||
Salary and welfare payable | 244,740 | 329,104 | 47,716 | |||||||
Operating lease liabilities | 969,494 | 693,496 | 100,547 | |||||||
Short-term borrowings | 3,121,046 | 4,237,978 | 614,449 | |||||||
Current portion of long-term borrowings | 57,875 | - | - | |||||||
Total current liabilities | 7,348,520 | 8,211,240 | 1,190,518 | |||||||
Non-current liabilities: | ||||||||||
Operating lease liabilities | 1,244,096 | 678,000 | 98,301 | |||||||
Other non-current liabilities | 69,373 | 75,000 | 10,874 | |||||||
Total non-current liabilities | 1,313,469 | 753,000 | 109,175 | |||||||
TOTAL LIABILITIES | 8,661,989 | 8,964,240 | 1,299,693 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in thousands of RMB and US$) | ||||||||||
As of | ||||||||||
2021 | 2022 | 2022 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED) | ||||||||||
Mezzanine Equity: | ||||||||||
Redeemable noncontrolling interests | 30,000 | 107,490 | 15,585 | |||||||
TOTAL MEZZANINE EQUITY | 30,000 | 107,490 | 15,585 | |||||||
Shareholders' equity | ||||||||||
Ordinary shares | 4 | 4 | 1 | |||||||
Additional paid-in capital | 13,685,062 | 13,922,811 | 2,018,618 | |||||||
(7,042) | (20,666) | (2,997) | ||||||||
Accumulated deficit | (12,765,713) | (13,580,086) | (1,968,928) | |||||||
Accumulated other comprehensive loss | (184,242) | (11,886) | (1,723) | |||||||
TOTAL SHAREHOLDERS' EQUITY | 728,069 | 310,177 | 44,971 | |||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | 9,420,058 | 9,381,907 | 1,360,249 | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) / INCOME (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 | 5,413,928 | 6,137,968 | 889,922 | |||||||
Service revenues | 69,594 | 62,676 | 9,087 | |||||||
Total revenues | 5,483,522 | 6,200,644 | 899,009 | |||||||
Operating costs and expenses: | ||||||||||
Cost of goods sold | (3,964,800) | (4,161,982) | (603,431) | |||||||
Fulfillment expenses | (1,786,262) | (1,493,644) | (216,558) | |||||||
Sales and marketing expenses | (357,971) | (91,135) | (13,213) | |||||||
Product development expenses | (284,740) | (258,974) | (37,548) | |||||||
General and administrative expenses | (129,417) | (149,331) | (21,651) | |||||||
Total operating costs and expenses | (6,523,190) | (6,155,066) | (892,401) | |||||||
Other operating (expenses) / income, net | (33,627) | 6,417 | 930 | |||||||
(Loss) / Income from operations | (1,073,295) | 51,995 | 7,538 | |||||||
Interest income | 12,167 | 33,085 | 4,797 | |||||||
Interest expenses | (25,975) | (35,514) | (5,149) | |||||||
Other income, net | 137 | 311 | 45 | |||||||
(Loss) / Income before income tax | (1,086,966) | 49,877 | 7,231 | |||||||
Income tax expenses | (9,373) | - | - | |||||||
Net (loss) / income | (1,096,339) | 49,877 | 7,231 | |||||||
Accretion of redeemable noncontrolling interests | - | (2,065) | (299) | |||||||
Net (loss) / income attributable to ordinary shareholders | (1,096,339) | 47,812 | 6,932 | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) / INCOME (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) / income per Class A and Class B ordinary share: | ||||||||||
Basic | (3.38) | 0.15 | 0.02 | |||||||
Diluted | (3.38) | 0.15 | 0.02 | |||||||
Shares used in net (loss) / income per Class A and Class B ordinary share computation: | ||||||||||
Basic | 324,708,900 | 324,330,913 | 324,330,913 | |||||||
Diluted | 324,708,900 | 328,081,773 | 328,081,773 | |||||||
Other comprehensive (loss) / income, net of tax of nil: | ||||||||||
Foreign currency translation adjustments | (99,105) | (36,617) | (5,309) | |||||||
Comprehensive (loss) / income | (1,195,444) | 13,260 | 1,922 | |||||||
Accretion of redeemable noncontrolling interests | - | (2,065) | (299) | |||||||
Comprehensive (loss) / income attributable to ordinary shareholders | (1,195,444) | 11,195 | 1,623 | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) | ||||||||||
For the three months ended | ||||||||||
2021 | 2022 | 2022 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Net cash (used in) / generated from operating activities | (1,761,736) | 682,118 | 98,898 | |||||||
Net cash used in investing activities | (1,058,287) | (230,500) | (33,419) | |||||||
Net cash generated from / (used in) financing activities | 413,536 | (10,843) | (1,572) | |||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (27,197) | 660 | 96 | |||||||
Net (decrease) / increase in cash and cash equivalents and restricted cash | (2,433,684) | 441,435 | 64,003 | |||||||
Cash and cash equivalents and restricted cash at the beginning of the period | 3,104,116 | 1,417,515 | 205,520 | |||||||
Cash and cash equivalents and restricted cash at the end of the period | 670,432 | 1,858,950 | 269,523 | |||||||
| |||||||||||||||||
For the three months ended | |||||||||||||||||
2021 | 2022 | 2022 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
(Unaudited) | |||||||||||||||||
Net (loss) / income | (1,096,339) | 49,877 | 7,231 | ||||||||||||||
Add: share-based compensation expenses (1) | 62,287 | 65,907 | 9,555 | ||||||||||||||
Non-GAAP net (loss) / income | (1,034,052) | 115,784 | 16,786 | ||||||||||||||
Net (loss) / income margin | (20.0 %) | 0.8 % | |||||||||||||||
Add: share-based compensation expenses | 1.1 % | 1.1 % | |||||||||||||||
Non-GAAP net (loss) / income margin | (18.9 %) | 1.9 % | |||||||||||||||
Net (loss) / income attributable to ordinary shareholders | (1,096,339) | 47,812 | 6,932 | ||||||||||||||
Add: share-based compensation expenses (1) | 62,287 | 65,907 | 9,555 | ||||||||||||||
Non-GAAP net (loss) / income attributable to ordinary shareholders | (1,034,052) | 113,719 | 16,487 | ||||||||||||||
Net (loss) / income per Class A and Class B ordinary share: | |||||||||||||||||
Basic and diluted | (3.38) | 0.15 | 0.02 | ||||||||||||||
Add: share-based compensation expenses | 0.19 | 0.20 | 0.03 | ||||||||||||||
Non-GAAP net (loss) / income per Class A and Class B ordinary share: | |||||||||||||||||
Basic and diluted | (3.19) | 0.35 | 0.05 | ||||||||||||||
(1) Share -based compensation expenses are recognized as follows: | |||||||||||||||||
For the three months ended | |||||||||||||||||
2021 | 2022 | 2022 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
(Unaudited) | |||||||||||||||||
Fulfillment expenses | 11,981 | 11,893 | 1,724 | ||||||||||||||
Sales and marketing expenses | 6,246 | 3,284 | 476 | ||||||||||||||
Product development expenses | 28,075 | 32,258 | 4,677 | ||||||||||||||
General and administrative expenses | 15,985 | 18,472 | 2,678 | ||||||||||||||
Total | 62,287 | 65,907 | 9,555 |
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