Here’s Why Pinduoduo Shares Are Trading Higher Premarket

China’s largest agriculture platform Pinduoduo Inc (NASDAQ:PDD), reported second-quarter FY22 revenue growth of 36% year-on-year to $4.69 billion, beating the consensus of $3.49 billion.
Revenues from online marketing services and others rose 39% Y/Y to $3.76 billion.
Revenues from transaction services jumped 107% Y/Y to $928.1 million.
Revenues from merchandise sales declined 97% Y/Y to $7.6 million.
Pinduoduo posted a non-GAAP operating profit of $1.57 billion, up 231% Y/Y.
Non-GAAP earnings per ADS of $1.13 beat the consensus of $0.39.
Pinduoduo held $17.8 billion in cash and equivalents and generated $2.89 billion in operating cash flow.
“We saw a recovery in consumer sentiment in the second quarter, especially during the 618 shopping festival, a reflection of the resilience of overall consumption,” said Mr. Lei Chen, Chair and CEO of Pinduoduo. “We remain committed to building a platform that serves as a force for good.”
“The postponement of certain projects and lower business-related expenses during the first half of the quarter affected overall expenses in short term,” said Ms. Jun Liu, VP of Finance.
Price Action: PDD shares traded higher by 9.05% at $62.78 in the premarket on the last check Monday.