Dingdong (Cayman) Limited Announces Third Quarter 2023 Financial Results
- None.
- None.
Third Quarter 2023 Highlights:
- Net income for the third quarter of 2023 was
RMB 2.1million (US ), showed a profit for another quarter since the fourth quarter of 2022.$ 0.3million - Non-GAAP net income for the third quarter of 2023 was
RMB15.5 million (US ), the fourth consecutive quarter of non-GAAP profitability.$2.1 million - GMV for the third quarter of 2023 was
RMB5,665.4 million (US ), an increase of$776.5 million 6.4% sequentially primarily due to a6.0% and0.5% sequential increase in order volume and AOV, respectively. - Net cash provided by operating activities for the third quarter of 2023 was
RMB130.1 million (US ), demonstrating the resilience of our business after COVID-19.$ 17.8 million
Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated,
"In the third quarter, we recorded non-GAAP basis net income of
Mr. Song Wang, Senior Vice President of Dingdong, stated,
"In the third quarter, we recorded GMV of
Third Quarter 2023 Financial Results
Total revenues were
- Product Revenues were
RMB5,082.5 million (US ) compared with product revenues of$696.6 million RMB5,872.4 million in the same quarter of 2022. - Service Revenues were
RMB57.2 million (US ) compared with service revenues of$7.8 million RMB70.1 million in the same quarter of 2022, primarily because we experienced a temporary surge in membership during the third quarter of 2022 due to the impact of COVID-19.
Total operating costs and expenses were
- Cost of goods sold was
RMB3,577.5 million (US ), a decrease of$490.3 million 13.9% fromRMB4,157.0 million in the same quarter of 2022. Cost of goods sold as a percentage of revenues decreased to69.6% from70.0% in the same quarter of 2022. Gross margin increased slightly to30.4% from30.0% in the same quarter of 2022. - Fulfillment expenses were
RMB1,199.3 million (US ), a decrease of$164.4 million 24.8% fromRMB1,595.3 million in the same quarter of 2022. Fulfillment expenses as a percentage of total revenues decreased to23.3% from26.8% in the same quarter of 2022. This ratio has continuously improved in recent quarters. - Sales and marketing expenses were
RMB98.2 million (US ), a decrease of$13.5 million 22.8% fromRMB127.2 million in the same quarter of 2022, primarily due to withdrawal from a few cities in 2022 and in the second quarter of 2023. - General and administrative expenses were
RMB89.3 million (US ), a decrease of$12.2 million 33.0% fromRMB133.3 million in the same quarter of 2022, mainly due to the improved efficiency of our staff. - Product development expenses were
RMB199.3 million (US ), a decrease of$27.3 million 21.8% fromRMB255.0 million in the same quarter of 2022, primarily due to our improved R&D human resources efficiency. While advocating for energy and resource saving, we will continue to invest in our product development capabilities, agricultural technology, data algorithms, and other technology infrastructure, to further enhance our competitiveness.
Loss 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 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 7:00 A.M. Eastern Time on Thursday, November 16, 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: | 4425278 |
The replay will be accessible through November 23, 2023 by dialing the following numbers:
International: | 1-412-317-0088 | ||||
1-877-344-7529 | |||||
Access Code: | 6274336 |
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 (loss) / income 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, | September 30, 2023 | September 30, 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 1,856,187 | 1,296,558 | 177,708 | |||||||
Restricted cash | 2,763 | 1,150 | 158 | |||||||
Short-term investments | 4,636,774 | 4,335,268 | 594,198 | |||||||
Accounts receivable, net | 141,468 | 130,121 | 17,835 | |||||||
Inventories | 604,884 | 509,268 | 69,801 | |||||||
Advance to suppliers | 83,835 | 78,183 | 10,716 | |||||||
Prepayments and other current assets | 170,336 | 158,506 | 21,724 | |||||||
Total current assets | 7,496,247 | 6,509,054 | 892,140 | |||||||
Non-current assets: | ||||||||||
Property and equipment, net | 314,980 | 206,505 | 28,304 | |||||||
Operating lease right-of-use assets | 1,425,117 | 1,205,583 | 165,239 | |||||||
Other non-current assets | 145,563 | 111,611 | 15,297 | |||||||
Total non-current assets | 1,885,660 | 1,523,699 | 208,840 | |||||||
TOTAL ASSETS | 9,381,907 | 8,032,753 | 1,100,980 | |||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | 1,886,689 | 1,464,025 | 200,661 | |||||||
Customer advances and deferred revenue | 253,010 | 231,265 | 31,698 | |||||||
Accrued expenses and other current liabilities | 810,963 | 638,714 | 87,543 | |||||||
Salary and welfare payable | 329,104 | 201,305 | 27,591 | |||||||
Operating lease liabilities, current | 693,496 | 656,577 | 89,991 | |||||||
Short-term borrowings | 4,237,978 | 3,694,002 | 506,305 | |||||||
Total current liabilities | 8,211,240 | 6,885,888 | 943,789 | |||||||
Non-current liabilities: | ||||||||||
Operating lease liabilities, non-current | 678,000 | 516,845 | 70,840 | |||||||
Other non-current liabilities | 75,000 | 121,365 | 16,634 | |||||||
Total non-current liabilities | 753,000 | 638,210 | 87,474 | |||||||
TOTAL LIABILITIES | 8,964,240 | 7,524,098 | 1,031,263 |
DINGDONG (CAYMAN) LIMITED | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||||
(Amounts in thousands of RMB and US$) | ||||||||||
As of | ||||||||||
December 31, 2022 | September 30, 2023 | September 30, 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED) | ||||||||||
Mezzanine Equity: | ||||||||||
Redeemable noncontrolling interests | 107,490 | 113,859 | 15,606 | |||||||
TOTAL MEZZANINE EQUITY | 107,490 | 113,859 | 15,606 | |||||||
Shareholders' equity | ||||||||||
Ordinary shares | 4 | 4 | 1 | |||||||
Additional paid-in capital | 13,922,811 | 14,041,347 | 1,924,526 | |||||||
Treasury stock | (20,666) | (20,666) | (2,833) | |||||||
Accumulated deficit | (13,580,086) | (13,673,346) | (1,874,088) | |||||||
Accumulated other comprehensive | (11,886) | 47,457 | 6,505 | |||||||
TOTAL SHAREHOLDERS' EQUITY | 310,177 | 394,796 | 54,111 | |||||||
TOTAL LIABILITIES, MEZZANINE EQUITY | 9,381,907 | 8,032,753 | 1,100,980 |
DINGDONG (CAYMAN) LIMITED | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||
(Amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||
For the three months ended September 30, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Revenues: | ||||||||||
Product revenues | 5,872,423 | 5,082,513 | 696,616 | |||||||
Service revenues | 70,105 | 57,168 | 7,836 | |||||||
Total revenues | 5,942,528 | 5,139,681 | 704,452 | |||||||
Operating costs and expenses: | ||||||||||
Cost of goods sold | (4,157,021) | (3,577,451) | (490,330) | |||||||
Fulfillment expenses | (1,595,251) | (1,199,328) | (164,382) | |||||||
Sales and marketing expenses | (127,174) | (98,239) | (13,465) | |||||||
Product development expenses | (255,022) | (199,313) | (27,318) | |||||||
General and administrative expenses | (133,339) | (89,337) | (12,245) | |||||||
Total operating costs and expenses | (6,267,807) | (5,163,668) | (707,740) | |||||||
Other operating income/(loss), net | (28,489) | 15,359 | 2,105 | |||||||
Loss from operations | (353,768) | (8,628) | (1,183) | |||||||
Interest income | 29,300 | 40,103 | 5,497 | |||||||
Interest expenses | (34,648) | (24,412) | (3,346) | |||||||
Other (expenses)/income, net | 14,345 | (1,463) | (201) | |||||||
(Loss) / income before income tax | (344,771) | 5,600 | 767 | |||||||
Income tax expenses | (83) | (3,496) | (479) | |||||||
Net (loss) / income | (344,854) | 2,104 | 288 | |||||||
Accretion of redeemable noncontrolling interests | (2,025) | (2,187) | (300) | |||||||
Net loss attributable to ordinary shareholders | (346,879) | (83) | (12) |
DINGDONG (CAYMAN) LIMITED | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED) | ||||||||||
(Amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||
For the three months ended September 30, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Net loss per Class A and Class B ordinary share: | ||||||||||
Basic and diluted | (1.07) | (0.00) | (0.00) | |||||||
Shares used in net loss per Class A and Class B | ||||||||||
Basic and diluted | 324,195,243 | 325,139,721 | 325,139,721 | |||||||
Other comprehensive loss, net of tax of nil: | ||||||||||
Foreign currency translation adjustments | 106,305 | (12,481) | (1,710) | |||||||
Comprehensive loss | (238,549) | (10,377) | (1,422) | |||||||
Accretion of redeemable noncontrolling interests | (2,025) | (2,187) | (300) | |||||||
Comprehensive loss attributable to ordinary | (240,574) | (12,564) | (1,722) |
DINGDONG (CAYMAN) LIMITED | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(Amounts in thousands of RMB and US$) | ||||||||||
For the three months ended September 30, | ||||||||||
2022 | 2023 | 2023 | ||||||||
RMB | RMB | US$ | ||||||||
(Unaudited) | ||||||||||
Net cash (used in) / generated from operating activities | (407,500) | 130,111 | 17,833 | |||||||
Net cash used in investing activities | (362,730) | (380,246) | (52,117) | |||||||
Net cash generated from financing activities | 158,762 | 18,448 | 2,529 | |||||||
Effect of exchange rate changes on cash and cash | 16,164 | (785) | (108) | |||||||
Net decrease in cash and cash equivalents and | (595,304) | (232,472) | (31,863) | |||||||
Cash and cash equivalents and restricted cash at the | 2,012,819 | 1,530,180 | 209,729 | |||||||
Cash and cash equivalents and restricted cash at the | 1,417,515 | 1,297,708 | 177,866 |
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) / income | (344,854) | 2,104 | 288 | ||||||||||
Add: share-based compensation expenses (1) | 59,683 | 13,406 | 1,837 | ||||||||||
Non-GAAP net (loss) / income | (285,171) | 15,510 | 2,125 | ||||||||||
Net (loss) / income margin | (5.8 %) | 0.0 % | 0.0 % | ||||||||||
Add: share-based compensation expenses | 1.0 % | 0.3 % | 0.3 % | ||||||||||
Non-GAAP net (loss) / income margin | (4.8 %) | 0.3 % | 0.3 % | ||||||||||
Net loss attributable to ordinary shareholders | (346,879) | (83) | (12) | ||||||||||
Add: share-based compensation expenses (1) | 59,683 | 13,406 | 1,837 | ||||||||||
Non-GAAP net (loss) / income attributable to ordinary | (287,196) | 13,323 | 1,825 | ||||||||||
Net loss per Class A and Class B ordinary share: | |||||||||||||
Basic and diluted | (1.07) | (0.00) | (0.00) | ||||||||||
Add: share-based compensation expenses | 0.18 | 0.04 | 0.01 | ||||||||||
Non-GAAP net (loss) / income per Class A and Class B | |||||||||||||
Basic and diluted | (0.89) | 0.04 | 0.01 | ||||||||||
(1) Share-based compensation expenses are recognized as follows: | |||||||||||||
For the three months ended September 30, | |||||||||||||
2022 | 2023 | 2023 | |||||||||||
RMB | RMB | US$ | |||||||||||
(Unaudited) | |||||||||||||
Fulfillment expenses | 10,831 | 5,335 | 730 | ||||||||||
Sales and marketing expenses | 2,330 | 332 | 46 | ||||||||||
Product development expenses | 30,790 | 6,881 | 943 | ||||||||||
General and administrative expenses | 15,732 | 858 | 118 | ||||||||||
Total | 59,683 | 13,406 | 1,837 |
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SOURCE Dingdong (Cayman) Limited
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