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Dingdong (Cayman) Limited Reports Fourth Quarter 2024 Financial Results

On March 6, 2025, Dingdong (Cayman) Limited, a prominent player in the fresh grocery e-commerce sector in China, unveiled its unaudited financial results for the final quarter of 2024. The company, listed on the NYSE under the ticker DDL, has maintained strong momentum in its performance over the past year.

Key Financial Highlights

In the fourth quarter, Dingdong achieved a Gross Merchandise Value (GMV) of approximately RMB 6.55 billion (about USD 896.9 million), reflecting a robust 18.4% increase compared to RMB 5.53 billion in the same period of the previous year. This marks four consecutive quarters of year-over-year growth.

The company's non-GAAP net income surged to RMB 116.7 million (USD 16.0 million), a staggering increase of 617.9% from RMB 16.3 million in the fourth quarter of 2023. Importantly, Dingdong recorded a net income of RMB 91.6 million (USD 12.5 million) for the quarter, in stark contrast to a net loss of RMB 4.4 million in the same quarter last year. Furthermore, the company reported net cash generated from operating activities of RMB 190.9 million (USD 26.2 million), reinforcing its ongoing financial strength.

Operational Insights

According to Changlin Liang, the Founder and CEO of Dingdong, the company's impressive performance can be attributed to a combination of factors: an expanding user base, improved conversion rates, and a higher average revenue per user (ARPU). He emphasized the continuous development of their forward warehouse network in key regions including Jiangsu, Zhejiang, and Shanghai. Over the past year, Dingdong has diversified its product offerings, with popular items like crabs and their customized pumpkin raw milk gaining traction among consumers.

CFO Song Wang highlighted that the fourth quarter revenue reached RMB 5.91 billion, up 18.3% from the same time last year. Not only did the GMV rise, but the non-GAAP net profit margin reached 2%, contributing to the positive financial trajectory of the company. Dingdong's dedication to offering high-quality products and services has solidified its reputation as a leading grocery e-commerce platform in China.

Financial Overview

The detailed financial metrics for the quarter include:

• - Total Revenues: RMB 5,905 million (USD 809 million), up from RMB 4,993 million in Q4 2023.
• - Product Revenues: RMB 5,822 million (USD 797.7 million), up from RMB 4,922 million last year.
• - Service Revenues: RMB 82.5 million (USD 11.3 million), compared to RMB 71 million in the same quarter 2023, indicating growth in customer subscriptions to Dingdong’s membership program.
• - Operating Costs and Expenses: Totaling RMB 5,848 million, the costs reflect increased sales, marketing, and product development due to growing operational needs.

The company's net profit per share for the quarter was RMB 0.27 (USD 0.04), a notable shift from a net loss per share recorded in the same period last year. Non-GAAP net income per share also saw an upward trend, suggesting Dingdong's bolstered financial health.

Strategic Outlook

Looking ahead, Dingdong is committed to maintaining its year-over-year growth trajectory while aiming for sustained profitability in the upcoming quarters. The company is poised to continue refining its operational strategies and expanding its product range, ensuring customer satisfaction remains at the forefront of its mission.

As Dingdong forges ahead, their vision of delivering high-quality, reasonably priced products remains strong, evidencing their commitment to elevate the shopping experience for consumers in China’s dynamic grocery e-commerce landscape. With plans for further expansion, Dingdong is setting the stage for impressive growth in 2025.

Conclusion

Dingdong (Cayman) Limited’s remarkable fourth quarter results reinforce its position as a leader in the fresh grocery e-commerce market. By focusing on innovation and operational efficiency, the company is set to navigate the challenges of the market while serving its customers with excellence.