Temu is "selling like crazy" abroad, driving PDD's revenue up

Its latest financial report shows that Pinduoduo's total revenue in the first quarter of 2023 was US$15.5 billion, an increase of approximately 58% year-on-year, of which net profit reached US$1 billion, an increase of 222% year-on-year.

As the news came out, Pinduoduo's US stock price surged by 16.9%, and led other Chinese stocks to rise as well.

Pinduoduo co-CEO Zhao Jiazhen said in an earnings call that first-quarter results showed initial trends, laying a solid foundation for stable growth in consumption throughout the year.

Although Pinduoduo's global e-commerce platform Temu still only accounts for a small part of the company's revenue, it will contribute more and more revenue in the future as it slowly expands into new markets.

In addition to launching in the United States, Australia, New Zealand and the United Kingdom, Temu is now also operating in France, Germany, Italy, the Netherlands, Spain, Poland, Mexico and other European, African and Middle Eastern countries.

Since its launch, Temu has become the most downloaded shopping app in the U.S., Germany, France, the U.K., Canada, Italy and a number of other countries, according to a report released last week.

In addition, Pinduoduo's grocery delivery business Duoduo Maicai also contributed to the company's revenue growth and is expected to become profitable in 2023.

At present, with the rapid expansion of Temu, it has even had some impact on the industry leader Amazon. Many sellers have said that the order volume has dropped sharply recently, and they have speculated that it may be because Temu has taken away all the traffic.

No matter what, Temu, an industry newcomer, will definitely have a place in the future cross-border e-commerce circle .

Temu

Pinduoduo