By Michael Dabaie
Chinese agriculture and interactive commerce platform Pinduoduo Inc.'s ADRs fell 17% to $67.75 premarket Friday after higher quarterly revenue came in below analyst expectations.
The company reported third-quarter total revenue of 21.5 billion yuan ($3.34 billion), an increase of 51% on year but below FactSet consensus of CNY25.8 billion. The increase was primarily due to an increase in revenues from online marketing services.
Net income attributable to ordinary shareholders was CNY1.64 billion, or $254.5 million, turning around a net loss of CNY784.7 million on year.
Earnings per share were CNY0.29, or 4 cents, from a year earlier loss of CNY0.16 and beating FactSet consensus. Earnings per ADS came to CNY1.15, or 18 cents.
"We are placing more focus on investments in R&D, away from the previous emphasis on sales and marketing in our first five years," said Chief Executive Lei Chen. "We want to leverage our strength in technology to deepen our digital inclusion efforts in agriculture, and will allocate all profits from the third quarter to the '10 Billion Agriculture Initiative'."
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(END) Dow Jones Newswires