Pinduoduo (NASDAQ: PDD) has come a long way in a short time. Barely six years after its founding, Pinduoduo is now China’s biggest e-commerce platform, with more active buyers than Alibaba (NYSE: BABA).
By injecting entertainment into the online shopping experience, Pinduoduo has gained serious ground on heavyweights Alibaba and JD.com (NASDAQ: JD). And its fourth-quarter earnings — released last week — show the company is not just hitting key milestones, it’s ready for new ones.
After delivering record earnings in the third quarter of 2020, Pinduoduo did one better in the fourth. On a year-over-year basis, revenue rose a whopping 146% to 26.5 billion yuan ($4.1 billion) — driven by rapid growth in gross merchandise value (GMV), a higher take rate, and the expansion of its new business Duo Duo Maicai (“More Grocery Shopping”). Even if you were to strip out income from Pinduoduo’s newer ventures, revenue grew 96% year over year.