The Shanghai company reported a third-quarter net loss of $115.6 million. Adjusted profit was 0.33 yuan per American depositary share, topping analyst estimates of a loss of 1.14 yuan a share.
Revenue for the period jumped 89% year over year to 14.21 billion yuan ($2.09 billion), topping analyst estimates of 12.22 billion yuan.
Pinduoduo shares at last check jumped 21% to $134.37. The stock in Thursday trading touched a 52-week high of $138.27, up 24%. The stock has more than quadrupled off its 52-week low above $30, set in mid-March.
“This quarter we continued to invest in user engagement, which resulted in strong growth of [monthly active users] and active buyers,” Chief Executive Lei Chen said in a statement.
“Our strategic priorities are informed by the changes in consumer habits that we observe and anticipate. We continue to innovate in order to meet such needs, especially in the agricultural industry.”
The company reported a 50% increase in monthly active users to 634.4 million from 429.6 million a year earlier. Active buyers increased 36% to 536.3 million.
The average buyer spent $293.60 during the quarter, a 27% year over year increase.
That growth was fueled by a 46% expansion in sales and marketing expense in the quarte. The company increased advertising, promotion and coupon expenses in the period.
Pinduoduo reported cash on hand of $6.7 billion at the end of the quarter, nearly 10% higher than the cash on hand it reported at the end of last year.