Dingdong (Cayman) Limited Announces Second Quarter 2023 Financial Results
- Non-GAAP net income for Q2 2023 was RMB7.5 million, the third consecutive quarter of non-GAAP profitability.
- Fulfillment expenses for Q2 2023 decreased by 25.6% year-on-year.
- Jiangsu and Zhejiang regions experienced significant growth in daily order volume per station.
- Total revenues for Q2 2023 were RMB4,840.6 million, a decrease from the same quarter last year.
- Dingdong remains confident in its ability to achieve profitability.
- None.
Second Quarter 2023 Highlights:
- Non-GAAP net income for the second quarter of 2023 was
RMB7.5 million (US ), the third consecutive quarter of non-GAAP profitability.$1.0 million - Fulfillment expenses for the second quarter of 2023 were
RMB1,146.6 million (US ), a decrease of$158.1 million 25.6% fromRMB1,541.8 million in the same quarter of 2022; fulfillment expenses per order decreased by7.8% year-on-year. - Three consecutive quarters of stable profit for
Jiangsu ,Zhejiang andShanghai regions, withJiangsu andZhejiang in particular recording daily order volume per station growth of27.1% and21.0% year-on-year.
Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated,
"A year ago, at the height of the pandemic, we successfully met surging consumer demand by quickly adapting to difficulties across our supply chain and operations. This resulted in strong operational performance. Despite the high base effect set in Q2 2022, in this quarter, we managed to achieve a
No matter how many twists and turns we may experience, we are confident in our ability to harness consumer demand for quality food services. We will deepen our penetration into existing markets and continuously tap into our users' needs to achieve profitability. At the beginning of the second half of 2023, I want to give special thanks to our users, team, partners, and shareholders for supporting each other through very challenging times and continually contributing to our business."
Mr. Song Wang, Senior Vice President of Dingdong, stated,
"In the second quarter of 2023, we generated revenue of
Second Quarter 2023 Financial Results
Total revenues were
- Product Revenues were
RMB4,778.7 million (US ) compared with product revenues of$659.0 million RMB6,554.0 million in the same quarter of 2022. - Service Revenues were
RMB61.9 million (US ) compared with service revenues of$8.5 million RMB80.4 million in the same quarter of 2022, primarily because we experienced a temporary surge in membership resulted from a series of COVID-19 restrictive measures during the second quarter of 2022.
Total operating costs and expenses were RMB4,866.9 million (
- Cost of goods sold was
RMB3,340.3 million (US ), a decrease of$460.7 million 26.4% fromRMB4,537.3 million in the same quarter of 2022. Cost of goods sold as a percentage of revenues increased to69.0% from68.4% in the same quarter of 2022. Gross margin decreased slightly to31.0% from31.6% in the same quarter of 2022. - Fulfillment expenses were
RMB1,146.6 million (US ), a decrease of$158.1 million 25.6% fromRMB1,541.8 million in the same quarter of 2022. Fulfillment expenses as a percentage of total revenues increased slightly to23.7% from23.2% in the same quarter of 2022. This ratio has continuously improved on a sequential basis in recent quarters except for the second quarter of 2022 due to the high base effect for revenue created by the resurgence of COVID-19 during the same period last year. - Sales and marketing expenses were
RMB89.1 million (US ), a decrease of$12.3 million 39.3% fromRMB146.7 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
RMB89.1 million (US ), a decrease of$12.3 million 42.0% fromRMB153.5 million in the same quarter of 2022, mainly due to the improved efficiency of our staff. - Product development expenses were
RMB201.7 million (US ), a decrease of$27.8 million 21.0% fromRMB255.3 million in the same quarter of 2022, primarily due to the Company's improved R&D efficiency. While advocating for energy and resource saving, the Company will continue to invest in its product development capabilities, agricultural technology, data algorithms, and other technology infrastructure, to further enhance its competitiveness.
Loss from operations was
Net loss was
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, September 01, 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: | 0571055 |
The replay will be accessible through September 8, 2023 by dialing the following numbers:
International: | 1-412-317-0088 | ||||
1-877-344-7529 | |||||
Access Code: | 6912866 |
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
DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of RMB and US$) | ||||||||||
As of | ||||||||||
December 31, 2022 | June 30, 2023 | June 30, 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 1,856,187 | 1,528,980 | 210,856 | |||||||
Restricted cash | 2,763 | 1,200 | 165 | |||||||
Short-term investments | 4,636,774 | 3,988,827 | 550,084 | |||||||
Accounts receivable, net | 141,468 | 107,093 | 14,769 | |||||||
Inventories | 604,884 | 427,265 | 58,923 | |||||||
Advance to suppliers | 83,835 | 77,594 | 10,701 | |||||||
Prepayments and other current assets | 170,336 | 166,011 | 22,894 | |||||||
Total current assets | 7,496,247 | 6,296,970 | 868,392 | |||||||
Non-current assets: | ||||||||||
Property and equipment, net | 314,980 | 236,731 | 32,647 | |||||||
Operating lease right-of-use assets | 1,425,117 | 1,290,846 | 178,016 | |||||||
Other non-current assets | 145,563 | 130,311 | 17,970 | |||||||
Total non-current assets | 1,885,660 | 1,657,888 | 228,633 | |||||||
TOTAL ASSETS | 9,381,907 | 7,954,858 | 1,097,025 | |||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | 1,886,689 | 1,357,264 | 187,175 | |||||||
Customer advances and deferred revenue | 253,010 | 221,416 | 30,535 | |||||||
Accrued expenses and other current liabilities | 810,963 | 638,464 | 88,048 | |||||||
Salary and welfare payable | 329,104 | 172,996 | 23,857 | |||||||
Operating lease liabilities, current | 693,496 | 672,125 | 92,690 | |||||||
Short-term borrowings | 4,237,978 | 3,676,987 | 507,080 | |||||||
Total current liabilities | 8,211,240 | 6,739,252 | 929,385 | |||||||
Non-current liabilities: | ||||||||||
Operating lease liabilities, non-current | 678,000 | 592,115 | 81,657 | |||||||
Other non-current liabilities | 75,000 | 117,865 | 16,254 | |||||||
Total non-current liabilities | 753,000 | 709,980 | 97,911 | |||||||
TOTAL LIABILITIES | 8,964,240 | 7,449,232 | 1,027,296 |
DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in thousands of RMB and US$) | ||||||||||
As of | ||||||||||
December 31, 2022 | June 30, 2023 | June 30, 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED) | ||||||||||
Mezzanine Equity: | ||||||||||
Redeemable noncontrolling interests | 107,490 | 111,672 | 15,400 | |||||||
TOTAL MEZZANINE EQUITY | 107,490 | 111,672 | 15,400 | |||||||
Shareholders' equity | ||||||||||
Ordinary shares | 4 | 4 | 1 | |||||||
Additional paid-in capital | 13,922,811 | 14,027,941 | 1,934,541 | |||||||
Treasury stock | (20,666) | (20,666) | (2,850) | |||||||
Accumulated deficit | (13,580,086) | (13,673,263) | (1,885,629) | |||||||
Accumulated other comprehensive (loss)/income | (11,886) | 59,938 | 8,266 | |||||||
TOTAL SHAREHOLDERS' EQUITY | 310,177 | 393,954 | 54,329 | |||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | 9,381,907 | 7,954,858 | 1,097,025 |
DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||
For the three months ended June 30, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Revenues: | ||||||||||
Product revenues | 6,553,999 | 4,778,733 | 659,017 | |||||||
Service revenues | 80,390 | 61,873 | 8,533 | |||||||
Total revenues | 6,634,389 | 4,840,606 | 667,550 | |||||||
Operating costs and expenses: | ||||||||||
Cost of goods sold | (4,537,312) | (3,340,343) | (460,654) | |||||||
Fulfillment expenses | (1,541,814) | (1,146,623) | (158,127) | |||||||
Sales and marketing expenses | (146,699) | (89,098) | (12,287) | |||||||
Product development expenses | (255,314) | (201,724) | (27,819) | |||||||
General and administrative expenses | (153,489) | (89,067) | (12,283) | |||||||
Total operating costs and expenses | (6,634,628) | (4,866,855) | (671,170) | |||||||
Other operating expenses, net | (12,388) | (23,307) | (3,214) | |||||||
Loss from operations | (12,627) | (49,556) | (6,834) | |||||||
Interest income | 17,416 | 41,340 | 5,701 | |||||||
Interest expenses | (32,844) | (24,425) | (3,368) | |||||||
Other income, net | 191 | (948) | (131) | |||||||
Loss before income tax | (27,864) | (33,589) | (4,632) | |||||||
Income tax expenses | (6,659) | (3,015) | (416) | |||||||
Net loss | (34,523) | (36,604) | (5,048) | |||||||
Accretion of redeemable noncontrolling interests | (1,965) | (2,122) | (293) | |||||||
Net loss attributable to ordinary shareholders | (36,488) | (38,726) | (5,341) |
DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED) (Amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||
For the three months ended June 30, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Net loss per Class A and Class B ordinary share: | ||||||||||
Basic and diluted | (0.11) | (0.12) | (0.02) | |||||||
Shares used in net loss per Class A and Class B ordinary share computation: | ||||||||||
Basic and diluted | 324,345,013 | 324,606,046 | 324,606,046 | |||||||
Other comprehensive loss, net of tax of nil: | ||||||||||
Foreign currency translation adjustments | 127,627 | 98,302 | 13,556 | |||||||
Comprehensive income | 93,104 | 61,698 | 8,508 | |||||||
Accretion of redeemable noncontrolling interests | (1,965) | (2,122) | (292) | |||||||
Comprehensive loss attributable to ordinary shareholders | 91,139 | 59,576 | 8,216 |
DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) | ||||||||||
For the three months ended June 30, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Net cash generated from / (used in) operating activities | 217,725 | (177,711) | (24,507) | |||||||
Net cash (used in) / generated from investing activities | (359,578) | 43,003 | 5,930 | |||||||
Net cash generated from / (used in) financing activities | 865,473 | (126,218) | (17,406) | |||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 22,632 | 5,265 | 726 | |||||||
Net increase / (decrease) in cash and cash equivalents and restricted cash | 746,252 | (255,661) | (35,257) | |||||||
Cash and cash equivalents and restricted cash at the beginning of the period | 1,266,567 | 1,785,841 | 246,278 | |||||||
Cash and cash equivalents and restricted cash at the end of the period | 2,012,819 | 1,530,180 | 211,021 |
DINGDONG (CAYMAN) LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands of RMB and US$, except for number of shares and per share data) | |||||||||||||
For the three months ended | |||||||||||||
2022 | 2023 | 2023 | |||||||||||
RMB | RMB | US$ | |||||||||||
(Unaudited) | |||||||||||||
Net loss | (34,523) | (36,604) | (5,048) | ||||||||||
Add: share-based compensation expenses (1) | 55,111 | 44,139 | 6,087 | ||||||||||
Non-GAAP net income | 20,588 | 7,535 | 1,039 | ||||||||||
Net loss margin | (0.5 %) | (0.8 %) | (0.8 %) | ||||||||||
Add: share-based compensation expenses | 0.8 % | 1.0 % | 1.0 % | ||||||||||
Non-GAAP net income margin | 0.3 % | 0.2 % | 0.2 % | ||||||||||
Net loss attributable to ordinary shareholders | (36,488) | (38,726) | (5,341) | ||||||||||
Add: share-based compensation expenses (1) | 55,111 | 44,139 | 6,087 | ||||||||||
Non-GAAP net income attributable to ordinary shareholders | 18,623 | 5,413 | 746 | ||||||||||
Net loss per Class A and Class B ordinary share: | |||||||||||||
Basic and diluted | (0.11) | (0.12) | (0.02) | ||||||||||
Add: share-based compensation expenses | 0.17 | 0.14 | 0.02 | ||||||||||
Non-GAAP net income per Class A and Class B ordinary share: | |||||||||||||
Basic and diluted | 0.06 | 0.02 | 0.00 | ||||||||||
(1) Share-based compensation expenses are recognized as follows: | |||||||||||||
For the three months ended June 30, | |||||||||||||
2022 | 2023 | 2023 | |||||||||||
RMB | RMB | US$ | |||||||||||
(Unaudited) | |||||||||||||
Fulfillment expenses | 11,139 | 7,717 | 1,064 | ||||||||||
Sales and marketing expenses | 2,778 | 2,092 | 288 | ||||||||||
Product development expenses | 24,880 | 22,498 | 3,103 | ||||||||||
General and administrative expenses | 16,314 | 11,832 | 1,632 | ||||||||||
Total | 55,111 | 44,139 | 6,087 |
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SOURCE Dingdong (Cayman) Limited
FAQ
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