Chinese e-grocer Dingdong posts bigger Q2 revenue, profit as users and orders increase

Reuters
Aug 21
Chinese e-grocer Dingdong posts bigger <a href="https://laohu8.com/S/QTWO">Q2</a> revenue, profit as users and orders increase

Overview

  • Dingdong Q2 revenue grows 6.7% yr/yr to RMB5.98 bln

  • Net income rises 59.7% yr/yr to RMB107.2 mln, sixth consecutive profitable qtr

  • Non-GAAP net income increases 23.9% yr/yr, reflecting operational efficiency

Outlook

  • Company aims to maintain scale and achieve non-GAAP profits in Q3 2025

Result Drivers

  • ORDER GROWTH - Increase in average monthly transacting users and order frequency drove revenue growth, per CFO Song Wang

  • MARKET PENETRATION - New frontline fulfillment stations improved market penetration in East China

  • COST MANAGEMENT - Good Products Strategy reduced sales and marketing expenses, replacing traditional campaigns

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

RMB 5.98 bln

Q2 Adjusted Net Income

RMB 127.80 mln

Q2 Net Income

RMB 107.20 mln

Q2 Operating Income

RMB 81.60 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the online services peer group is "buy"

  • Wall Street's median 12-month price target for Dingdong (Cayman) Ltd is $3.45, about 32.8% above its August 20 closing price of $2.32

Press Release: ID:nPn5gR4CRa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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