Pinduoduo rises after solid earnings beat: Q4 Results
Pinduoduo (NASDAQ:PDD) is up 6% in early Monday trading after the company reported earnings beat in its fourth quarter results. 
Gross merchandise value for the year ended Dec. 31, 2021 reached $383B (+46% Y/Y). 
On the top line, revenue of $4.27B (+3% Y/Y) fell short of consensus by $440M. The increase in revenue from prior year quarter is primarily linked to higher sales of online marketing services and transaction services.

By segment, revenue: Online marketing services revenue increased 19% Y/Y to $3.52B; Transaction services, $741.3M (+108% Y/Y); Merchandise sales, $12.8M (-98% Y/Y).
"Our revenue growth slowed down due to moderating user growth and fluctuation in user activity," said Jun Liu, VP of Finance of Pinduoduo.
Average monthly active users increased 2% Y/Y to 733.4M in 4Q21. Annual spending per active user rose 33% Y/Y.
Adjusted operating profit jumped to RMB 8.40B compared to adjusted operating loss of RMB 1.11B a year ago.
Non-GAAP EPADS of $0.92 beats by $0.55.

"We recorded a profit in the fourth quarter, which is attributable to more controlled spending as we adjust to slower growth, and a one-off rebate from one of our service providers," added Liu.
Net cash provided by operating activities was $2.57B during the quarter. 
The company ended the quarter with $14.6B in cash, cash equivalents and short-term investments.
"We see ourselves making more long-term investment, especially in agriculture and R&D...Similar to the last two quarters, we will allocate profits from the fourth quarter to the 10 Billion Agriculture Initiative to deepen our digital inclusion efforts in agriculture," said Chairman and CEO Lei Chen.
Also Read (Feb. 16): Pinduoduo rises as Citi upgrades, sees 'attractive valuation'