American depositary receipts of Pinduoduo (PDD) were soaring 14.4% to $29.69 Wednesday after the Chinese e-commerce platform blew by Wall Street's expectations for the second quarter.
The Shanghai-based company reported a net loss of $59.9 million, or 4 cents a share, compared with a net loss of $95.3 million, or 20 cents share, a year ago.
Revenue totaled RMB 7.29 billion, or $1.06 billion, up a stunning 169% from the year-ago period in Chinese currency, primarily as a result of the robust growth in the company's online marketing services revenue.
Analysts polled by Factset were expecting the company to post a loss of 22 cents a share on sales of $874.2 million.
Sales and marketing expenses came to $889.1 million, up 105% from a year ago, mainly due to an increase in online and offline advertisement and promotions.
Average monthly active users totaled 366 million, an increase of 88% from a year ago. Annual spending per active buyer was $213.8 million, up 92% from a year ago.
Revenue from online marketing services was $942 million, up 173% from a year ago.
Save 57% With Our Labor Day Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor! Click here to sign up!