Pinduoduo owner PDD misses on fourth quarter results, stock falls 18%
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Shares of PDD Holdings (NASDAQ:PDD) fell as much as 18% on Monday after the Chinese e-commerce platform operator posted a fourth quarter results miss. 
PDD Holdings, which owns Pinduoduo and Temu, reported Q4 Non-GAAP EPADS of $1.21, missing by just 3 cents. However, revenue of $5.77B was short of consensus by about $140M.
Q4 revenue breakdown: online marketing services $4,489.5M, transaction services $1,275.4M, merchandise sales $8.4M.
Other Q4 metrics: operating profit $1,321.4M, Non-GAAP operating profit $1,681.9M, net income $1,370.7M, non-GAAP net income $1,755.2M, net cash from operating activities $3,849.4M.
In an earnings analysis, Seeking Alpha contributor Michael Wiggins De Oliveira said Q4 saw 46% y/y growth rates as reported in RMB, but the stock is down as the growth rate that PDD put out was 37% y/y in USD.
Cash, cash equivalents and short-term investments were RMB149.4 billion or US$21.7 billion as of December 31, 2022, compared with RMB92.9 billion or about US$13.5 billion as of December 31, 2021.
"If one were to be pedantic, one could correctly state that over the next twelve months, PDD Holdings Inc. will still hold some debt. Although in the grand scheme, I believe that even the most bearish rational investor would concede that with more than $2.5 billion of net cash on its balance sheet, PDD Holdings Inc. is extremely well capitalized," Wiggins said in his closing remarks.
PDD stock rose nearly 40% in 2022, while the benchmark S&P 500 index fell 20% for the year. If current session losses hold, PDD is set to wipe off all YTD gains.