Revenue growth, loss expansion, and a lot of profitability, maybe the next quarter earnings report can give an answer.
Beijing time on November 20, the United States (NASDAQ: PDD) announced the third quarter of 2019 financial report. In the quarter, Total’s total revenue was 7.513 billion yuan, up 123% from 3.372 billion yuan in the same period last year.
In the third quarter, the operating loss of the company was 2.792 billion yuan, a year-on-year increase of 119.93%. Under non-GAAP, the platform operating loss was 2.125 billion yuan; in the quarter, the net loss attributable to ordinary shareholders was 2.335 billion yuan, compared with 1.0983 billion yuan in the same period last year, and the loss increased by 112.6%. Strong>. Under non-GAAP, the net loss attributable to ordinary shareholders of the platform was 1,600.4 million yuan.
There is no 618, but it is not enough for the double 11 to fight more in the third quarter. Even if there is a rational reason for the loss of the e-commerce off-season, the secondary market still gives negative feedback. Affected by this, many US stocks fell 20% before the market.
The money has lost a lot, but the good news is still there. The growth in the number of users has been strong. The financial report shows: The average monthly live number in the third quarter was 429.6 million, an increase of 85%. Compared with the previous quarter, the net increase was 53.1 million, which was the largest increase in a single quarter since the listing.
Growth reveals fatigue
Before the release of the second-quarter earnings report, the financial institution Barclays Bank will initially rate the initial rating as “overweight” and the target price will be adjusted to US$32. Today, after the release of the third-quarter earnings report, the stock price also fell: from the opening price of 41.8 US dollars to the deadline of 40.72 US dollars, down nearly 3%.
Compared with the data of the second quarter earnings, there is indeed more in the third quarter.Reasons to disappoint investors.
In the third quarter, the revenue of the company increased by 123% year-on-year to reach 7.513 billion yuan. In the second quarter, the revenue of the company increased by 169.1% year-on-year to 7.29 billion yuan. The growth rate of revenue has slowed down noticeably, and the rapid growth of the long-term growth has been slightly fatigued.
For this revenue growth, the financial report attributed it to “the strong growth in platform online marketing technology service revenue”.
In the quarter, the revenue from online marketing technology services was 6.714 billion yuan, an increase of 126% from 2,974.1 million yuan in the same period of 2018. Platform trading services revenue was 802.5 million yuan, an increase of 101% from the 398.3 million yuan in the same period last year. In the third quarter, the company strengthened its resources and technical support for merchants, reduced the operating and sales costs of the merchants, and improved the return on investment.
The number of users has increased the number of users in a single quarter in the quarter, with a net increase of 53.1 million. As of September 30, 2019, the number of active buyers has reached 536.3 million. In the first three quarters of 2019, the company won a total of 150.8 million new users, and on average it received 50.27 million new users every quarter.
Compared with the short-lived growth in revenue, the increase in the number of users is more sustainable.
According to the “2019 Double 11 Insight Report” released by the data company QuestMobile on November 20, in the 2019 double 11 day, the DAU (daily active users) of each e-commerce platform, the fight is much more than 220 million, with mobile phone Taobao 4.6 The difference between the billions is 240 million yuan. On the day of the double 11 in 2018, the number of DAUs was 119 million. That is to say, in a year, the DAU that participated in the double 11 increased by 85%, and the upward trend is still obvious.
But from another perspective, the consumer spending power of e-commerce platform competition is not representative of DAU. Ma Yun also said that not long ago, about 17 million people visited Taobao but didn’t buy anything. And from the current double 11 transcripts disclosed by various e-commerce platforms, Taobao is still the absolute consumption of double 11At home, this will not change for a certain period of time.
For many people, it is easy to catch up with the number of users, but long-term practice of “the lowest price of the same product”, want to get rid of the original impression of low price and low quality, improve user spending power, still need a long way go.
Marketing is still the biggest “burden”
In order to obtain high-quality users, in 2019, the company launched a “billion-subsidy” plan. In the past, the double 11 and the multi-price strategy of high-priced products including Apple MacBook and Dyson hair dryer were used. Try to win the quality users who have more consumption potential in the Fifth Ring Road or in the first and second tier cities.
After the double 11th, I wrote a lot of papers saying: “We have not even had time to build the real-time data big screen. The company is rushing to replenish goods, prices and subsidies, and the banners and atmosphere baskets in the corridor have not yet had time.
The high cost of marketing subsidies also explains why the expectation of a lot of profit has been frustrated.
In the third quarter, the company is still strengthening its subsidies for commodities. The total operating expenses of the company was 8.472 billion yuan, compared with 3.872 billion yuan in the same period last year, and the operating expenses increased by 119.09%. Among them, the sales expenses for sales and marketing were 6.09088 billion yuan, an increase of 114% from the 3,229.6 million yuan in the same period of 2018, compared with the previous quarter’s 6.103 billion yuan, an increase of 13.19%.
In other words, whether it is year-on-year or quarter-on-quarter, the operating costs of a lot of sales are driven by marketing expenses.
In the evening conference call, how to better improve the return on sales and marketing, Huang Wei said that the investment is to increase the user’s participation and return users, and consolidate the user’s long-term habits. Whether it is a coupon or a “billion subsidy”, it is to enhance the user experience to consolidate user habits. At present, there are many users who “average consumption of more than 2,000 yuan per year and more than 5,000 yuan for first-line users.” Huang Wei also said that the “10 billion subsidy” strategy will continue in the next quarter.
In terms of cost, one notable point is that the R&D expenses of the company have increased to 1.272 billion yuan, accounting for 15.0% of the revenue, which is 240% higher than that of 2018. R&D expenses are much higher than the average level of the Internet industry. It is a good thing for young but high-profile companies. The enhancement of technology soft power will undoubtedly bring more imagination to the future.
Nowadays, the situation that has to face a lot of battles is that the biggest marketing home WeChat has changed.
At the end of October, WeChat began to clean up the outer chain, and the many small program sharing links were also “blocked”, while at the time it was at the node of double 11. The e-commerce platform’s small program has become the main place to carry the marketing of various activities, and it is cheaper to buy a friend with a single order, and invite friends to bargain and other operations, which is also the key to the rise of many.
The impact of the small program link being “blocked” on the multi-double 11 is not known to the outside world, but in the face of the transcripts displayed by other e-commerce platforms, the touching letter that is given more and more is not When the investors paid the bill, the stock price fell more than 3% on the day.
But the transfer also exists on WeChat. The above-mentioned double 11-hole investigation report shows that the small program DAU of the major 11 major e-commerce platforms has grown significantly this year: more WeChat small programs, daily Alipay Alipay small programs, and Jingdong Shopping WeChat small programs have become integrated e-commerce double 11 The top three DAU applets reached 29.3 million, 23.6 million and 18.05 million respectively.
On the one hand, it is necessary to rejoice that WeChat does not “catch up and kill”; on the other hand, it is necessary to reflect on how many people can easily be “weaked by the throat” of WeChat, how to compete with Taobao and Jingdong.