Shulou(Shulou.com)11/24 Report--

Beijing time on November 18 morning news, Dada Group today announced the company's fiscal year 2022 third quarter earnings report.

According to the report, Dada Group's total net revenue in the third quarter was RMB 2.3801 billion yuan, compared with RMB 1.6868 billion yuan in the same period last year, up 41.1% year-on-year; the net loss was RMB 454.3 million yuan, compared with RMB 542.7 million yuan in the same period last year, narrowing year-on-year; The non-GAAP net loss was Rmb270.2 million, compared with Rmb450.1 million a year earlier.

Seven Wall Street analysts, on average, had expected total net revenue of $336.16 million in the third quarter, according to data provided by Yahoo Finance. Financial results show that Dada Group's total net revenue in the third quarter was 2.3801 billion yuan.

In addition, five Wall Street analysts had expected, on average, a third-quarter loss per share of $0.18 not in accordance with GAAP. Financial results show that not in accordance with US GAAP, Dada Group's third quarter basic loss per share and diluted loss per share are 0.26 yuan.

Results Summary: -Dada Group's total net revenue for the third quarter was RMB2.3801 billion, compared with RMB1.6868 billion in the same period last year, up 41.1% year-on-year.

- In the 12 months ended September 30,2022, Jingdong's total transaction volume (GMV) to home was RMB58.9 billion, up 58.3 per cent from RMB37.2 billion in the 12 months ended September 30,2021.

- For the 12 months ended September 30, 2022, the number of active consumers was 75.4 million, compared to 57.1 million for the 12 months ended September 30, 2021.

Financial analysis: Revenue Dada Group's total net revenue for the third quarter was 2.3801 billion yuan, compared with 1.6868 billion yuan in the same period last year, up 41.1% year-on-year.

Dada Group's net revenue from Dada Express in the third quarter was 835.9 million yuan, compared with 614.3 million yuan in the same period last year, up 36.1% year-on-year, mainly due to an increase in orders for local express services provided to chain merchants.

Dada Group's net revenue from Jingdong home in the third quarter was Rmb1, 544.3 million, compared with Rmb1, 072.5 million in the same period a year earlier, up 44.0 per cent year-on-year. The difference compared to the third quarter of 2021 was primarily due to an increase in total transaction volume compared to the same period last year, driven by an increase in the number of active consumers and average order size. Brand owners and retailers have increasingly launched promotional campaigns, resulting in increased revenue from online marketing services and net revenue growth from JD Home.

Costs and expenses Dada Group's total costs and expenses for the third quarter were RMB2, 919.6 million, compared with RMB2, 282.3 million in the same period last year. Of which:

- Dada Group's third-quarter operating and support costs were RMB1, 466.8 million, compared with RMB1, 235.7 million a year earlier. This increase was mainly due to an increase in orders for local delivery services to various chain merchants on the DadaExpress platform and retailers on the JD.com home platform, resulting in an increase in rider costs.

- Dada Group's third-quarter sales and marketing expenses were Rmb1, 149.7 million, compared with Rmb780.3 million a year earlier. This increase was primarily due to: (1) higher incentive costs for JD.com customers;(2) higher advertising and marketing expenses aimed at attracting new customers to JD.com; and (3) amortization expenses arising from the business cooperation agreement with JD.com in February 2022 in relation to the share subscription transaction.

- General and administrative expenses of Dada Group were RMB107.0 million in the third quarter compared with RMB98.5 million in the same period last year, mainly due to an increase in professional services expenses.

- Dada Group's third-quarter R & D expenditure was RMB180.5 million, compared with RMB148.0 million a year earlier, mainly due to the company's continued strengthening of its technology capabilities, resulting in higher R & D personnel costs.

Operating loss Dada Group's third-quarter operating loss was Rmb485.5 million, compared with Rmb565.8 million a year earlier.

Without GAAP, Dada Group's third-quarter operating loss was Rmb300.1 million, compared with Rmb472.1 million a year earlier.

Net loss Dada Group posted a net loss of Rmb454.3 million in the third quarter, compared with a net loss of Rmb542.7 million a year earlier.

Without GAAP, Dada Group posted a net loss of Rmb270.2 million in the third quarter, compared with a net loss of Rmb450.1 million a year earlier.

Dada Group's net loss attributable to ordinary shareholders in the third quarter was Rmb454.3 million, compared with a net loss attributable to ordinary shareholders of Rmb542.7 million in the same period last year.

Dada Group's net loss attributable to common shareholders in the third quarter was RMB270.2 million, compared with RMB450.1 million in the same period last year, not in accordance with US GAAP.

Loss per share Dada Group's basic loss per share and diluted loss per share for the third quarter were both RMB0.44, compared with RMB0.57 for the same period last year.

Without GAAP, Dada Group's basic loss per share and diluted loss per share for the third quarter were both RMB0.26, compared with RMB0.48 for the same period last year.

Cash position As of September 30, 2022, the total cash, cash equivalents, restricted cash and short-term investments held by Dada Group amounted to RMB5,208.9 million, compared with RMB1,764.8 million as of December 31, 2021.

Share Buybacks Pursuant to the $70 million share repurchase program announced in March 2022, Dada Group has repurchased approximately $56.6 million worth of American depositary shares under this repurchase program as of September 30, 2022.

Environment, Social Responsibility and Corporate Governance The Dada Group continues to implement its ESG (Environmental, Social Responsibility and Corporate Governance) strategy in a determined and proactive manner:

- In the third quarter, several cities, including Shanghai, Beijing, Shenzhen, Dalian, Shijiazhuang, Chengdu and Guiyang, experienced a recurrence of new crown pneumonia. JD.com and Dada Express strive to coordinate the supply and delivery capabilities of merchants to ensure daily necessities are supplied to affected communities. Dada Group received thank-you letters from relevant government departments such as Shanghai, Chengdu and Shijiazhuang, all of which recognized the company's contribution to maintaining the supply of necessities during the recurrence of Xinguan pneumonia.

- In September this year, Jingdong Home released a "double zero" policy for the Double 11 Shopping Festival, allowing new stores on the Shop Now platform to enjoy zero deposits and zero platform usage fees, aiming to help retailers expand their business by using the Shop Now platform.

- In August this year, Dada Group, in cooperation with Wal-Mart China and China Rural Development Foundation, launched the fund-raising plan for the public welfare project of "You Wo Together, Add Meals for Love," encouraging donations through online and offline channels to provide nutritious meals for children in underdeveloped areas such as Guizhou and Guangxi.

- Under the guidance of "Care for the Next Generation Working Committee" in Yangpu District of Shanghai City, Dada Group has established its own "Care for the Next Generation Working Committee" and actively participated in activities to support the healthy growth of teenagers.

- In November this year, Dada Group was selected into the "2022 Excellent Private Enterprise Corporate Social Responsibility List" issued by the All-China Federation of Industry and Commerce, which shows the government department's recognition of Dada Group's efforts and contributions in corporate social responsibility.

Performance Outlook: For the third quarter of fiscal year 2022, Dada Group expects its total revenue to reach RMB 2.65 billion to RMB 2.75 billion, up 30% to 35% year-on-year. This performance outlook is based on information available as of the date of this press release and reflects the Company's current and preliminary expectations, which are subject to change in the future due to various uncertainties, including those related to the ongoing COVID-19 pandemic.

According to Yahoo Finance, seven analysts, on average, expected third-quarter revenue of $385.05 million.

Share price movements: Dada Group shares rose $0.44, or 8.56%, to close at $5.58 in regular Nasdaq trading on the day. In subsequent after-hours trading as of 4:59 pm ET on the 17th (5:59 am Beijing time on the 18th), Dada Group shares fell $0.01, or 0.18%, to $5.57. The Dada Group's highest price over the past 52 weeks was $24.15 and its lowest was $2.98.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.