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Pinduoduo's Q3 revenue reached 108.3 billion yuan, a year-on-year increase of 9%

Pinduoduo's Q3 revenue reached 108.3 billion yuan, a year-on-year increase of 9%

News2025-11-19

On November 18th, Pinduoduo released its financial report for the third quarter of 2025 as of September 30th.

According to the financial report, Pinduoduo's total revenue in Q3 increased by 9.0% year-on-year, reaching 108.3 billion yuan (RMB, the same below), mainly driven by the growth of online marketing services and transaction services revenue.
This quarter, Pinduoduo's online marketing services and other business revenue (usually representing the main site) was 53.3 billion yuan, an increase of only 8.1% compared to the same period in 2024.

The explanation given by the management of Pinduoduo is that with the intensification of competition and investment in the merchant ecosystem, the growth of online marketing services has further slowed down.
However, industry analysis points out that in the last quarter, due to the withdrawal of the national subsidy policy, the drag on Pinduoduo subsided, and with competitors such as Alibaba and JD.com investing heavily in other aspects such as the food delivery war, "it created a window period for Pinduoduo's industry competition environment to relatively improve

Despite this, the growth of Pinduoduo's domestic main website fell to single digits for the first time. Since the beginning of several quarters this year, Pinduoduo's online marketing services and other business revenue growth rates have been 14.8%, 13.4%, and 8.1%, respectively. Therefore, some industry insiders believe that the food delivery wars initiated by companies such as Alibaba and JD.com may still have taken away some of Pinduoduo's users.

In the third quarter of this year, market competition intensified, coupled with the platform's continued investment in the ecosystem under the '100 billion support plan', resulting in continued pressure on our revenue and a decrease in operating profit margins both year-on-year and month on month. Currently, the competitive landscape of the industry is still accelerating its changes. ”Zhao Jiazhen, Executive Director and Co CEO of Pinduoduo Group, said.

During the earnings conference call, Pinduoduo stated that it will continue to create greater space for the development and upgrading of the industry chain through measures such as reducing merchant fees and supporting high-quality merchant marketing. These investments will pose financial challenges to revenue and profits for a period of time
It is worth noting that Pinduoduo's revenue from trading services (usually representing Temu) this quarter was 54.9 billion yuan, an increase of 10% compared to the same period last year and far exceeding market expectations. Previously, due to the impact of tariffs, Pinduoduo's transaction service revenue growth rates in Q1 and Q2 were 5.8% and 0.7%, respectively.

According to GAAP standards, Pinduoduo's operating profit for this quarter was RMB 25 billion, compared to RMB 24.3 billion in the same period last year. According to Non GAAP accounting standards, the operating profit was 27.1 billion yuan, compared to 28 billion yuan in the same period last year. The non GAAP operating profit margin for this quarter was 25%, lower than the 27% for the same period last year. But its management has stated that as investment is made in the platform ecosystem, the platform's profitability may continue to fluctuate.
In terms of costs and expenses, Pinduoduo's total revenue cost increased by 18% from 39.7 billion yuan in the third quarter of 2024 to 46.8 billion yuan in this quarter, mainly due to the increase in performance fees, bandwidth and costs, and payment processing fees.
According to GAAP standards, the total operating expenses for this quarter increased by 3% from 35.4 billion yuan in the same period of 2024 to 36.4 billion yuan. According to non GAAP standards, the total operating expenses for this quarter increased from 32.9 billion yuan in the third quarter of 2024 to 34.4 billion yuan. The percentage of non GAAP operating expenses to total revenue for this quarter was 32%, roughly the same as the same period last year.

In terms of specific expense items, Pinduoduo's non GAAP sales and marketing expenses for this quarter were 29.8 billion yuan, unchanged from the same period last year. According to non GAAP standards, Pinduoduo's sales and marketing expenses accounted for 28% of revenue in this quarter, compared to 30% in the same period last year.
Faced with competitors such as Alibaba achieving good results in "Double Eleven" through new models such as "flash purchases", the management of Pinduoduo only stated that new formats and models are emerging one after another, the market landscape continues to evolve, and major participants are increasing investment around new business directions, leading to continuous upgrading of competition. In the face of such an environment, we will further enhance our self requirements, strengthen our core business capabilities, continue to deepen our efforts in supply chain optimization and platform ecosystem construction, and seek new growth opportunities

This means that although Alibaba and JD.com are still fiercely competing in areas such as instant retail, Pinduoduo will still focus on its core business - e-commerce.

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Pinduoduo's Q3 revenue reached 108.3 billion yuan, a year-on-year increase of 9%