Dingdong(DDL) - 2024 Q3 - Quarterly Report

Financial Performance - Dingdong reported third quarter 2024 revenue of RMB6.54 billion (US$931.7 million), a year-over-year increase of 27.2$1.04 billion), up 28.3% year-over-year[10] - Non-GAAP net income for the third quarter of 2024 was RMB162 million (US$23 million), a 942$19 million), a significant increase of 6,240.6% from RMB2.1 million in the same quarter of 2023[14] - Total revenues for the three months ended September 30, 2024, increased to RMB 6,538,235, representing a growth of 27.2% compared to RMB 5,139,681 in the same period of 2023[38] - Product revenues rose to RMB 6,458,447, up 27.1% from RMB 5,082,513 year-over-year[38] - Net income for the three months ended September 30, 2024, was RMB 133,406, compared to a net income of RMB 2,104 in the same period of 2023, marking a significant increase[40] - The company reported a non-GAAP income from operations of RMB 138,759 for the three months ended September 30, 2024, compared to RMB 4,778 in the same period of 2023[42] - Basic and diluted net income per share for the three months ended September 30, 2024, was RMB 0.40, compared to RMB (0.00) in the same period of 2023[40] Operating Cash Flow - Operating net cash inflow for the third quarter of 2024 was RMB400 million (US$56.7 million), marking the fifth consecutive quarter of net cash inflow from operating activities[8] - The company generated RMB 397,639 in net cash from operating activities for the three months ended September 30, 2024, compared to RMB 130,111 in the same period of 2023[41] Revenue Breakdown - Product revenues for the third quarter of 2024 were RMB6.46 billion (US$920.3 million), compared to RMB5.08 billion in the same quarter of 2023[11] - Service revenues increased to RMB79.8 million (US$11.4 million) from RMB57.2 million in the same quarter of 2023, driven by growth in the membership program[11] Costs and Expenses - Total operating costs and expenses were RMB6.44 billion (US$917.5 million), up from RMB5.16 billion in the same quarter of 2023[12] - Total fulfillment expenses amounted to $5.33 billion, with sales and marketing expenses at$3.32 billion[44] - Product development expenses reached $6.88 billion, indicating a significant investment in innovation[44] - General and administrative expenses totaled$1.34 billion, reflecting operational costs[44] Balance Sheet - Cash and cash equivalents at the end of the period were RMB 904,442, down from RMB 1,297,708 at the end of September 2023[41] - Total assets as of September 30, 2024, were RMB 6,873,186, a decrease from RMB 7,698,556 as of December 31, 2023[33] - Total liabilities decreased to RMB 6,121,899 as of September 30, 2024, from RMB 7,199,932 as of December 31, 2023[35] Profitability Metrics - The operating margin improved to 1.6% for the three months ended September 30, 2024, compared to a negative margin of 0.2% in the same period of 2023[42] Future Outlook - The company expects significant year-over-year growth in both non-GAAP and GAAP net profit for the fourth quarter and the full year of 2024[20] Investment Strategy - The company is committed to investing in product development, agricultural technology, and data algorithms to enhance competitiveness[19]