Phoenix network science and technology news Beijing time on November 26, Pinduoduo released the third quarter of 2021 financial results. According to the financial report, by September 30, 2021, pinduoduo had 867.3 million annual active buyers and 741.5 million average monthly active users in the third quarter.
Pinduoduo reported revenue of 21.5058 billion yuan in the third quarter, up 51% from the same period last year and short of market expectations of 26.5 billion yuan. Under American GAAP, marketing expenses amounted to 1,00506 million yuan, a decrease of 3% quarter-on-quarter, showing a downward trend for three consecutive quarters.
In the third quarter, the platform further increased its investment in technology research and development. Under GAAP, the platform's R&D expenses for the quarter were RMB 2,422.4 billion, up 34% from the same period last year, setting a new high for r&d investment. Meanwhile, according to pinduoduo's annual report, about 60% of the company's employees are r&d personnel.
▲ At the Duo Duo Agricultural research Competition Base in Kunming, Yunnan province, four teams in the final are planting tomatoes by AI. (Photo by Min Shan)
In August this year, Pinduoduo set up a "10 billion yuan agricultural research special project" and announced that the profits of the second quarter and the next few quarters will be invested in this special project first. At the end of September, the "10 billion yuan agricultural research project" was approved by shareholders. After all profits in the second quarter were invested in this special project, pinduoduo will continue to invest all profits in this special project to further promote the universal benefits of agricultural science and technology.
It has become a long-term choice for Pinduoduo to put more emphasis on research and development than marketing and stick to investing in agriculture. In addition, Chen Lei, chairman and CEO of Pinduoduo, said the company will provide more opportunities for young talent, with more young managers stepping up to take on key functions in the next six to 12 months.
Marketing spending continued to fall, and r&d spending hit a record high
As of September 30 this year, pinduoduo's annual active buyers have reached 867.3 million, an increase of 17.4 million in a single quarter, according to financial reports. Meanwhile, the average monthly active users of Pinduoduo APP reached 741.5 million in the third quarter.
In terms of revenue, Pinduoduo posted revenue of 21.5058 billion yuan in the third quarter of this year, up 51% year-on-year, mainly from online marketing technology services. Under American GAAP, the platform's marketing expenses in the third quarter were 1,00506 million yuan, a decrease of 3% from the previous quarter, showing a decreasing trend for three consecutive quarters.
At the same time, the platform increased its investment in technology research and development, and the r&d expenditure in the quarter reached 2.4224 billion yuan, mainly used for the investment in technology platform and the recruitment of r&d personnel. According to pinduoduo annual report disclosure, the company's R & D personnel accounted for about 60%.
Mr Chen said pinduoduo would shift its focus on marketing over the past five years to more research and development, and use its technological edge to further push the digitisation of agriculture.
Under the sound strategy of reducing marketing and focusing on research and development, according to THE American GAAP, the operating profit of the quarter was 2.1393 billion yuan, and the net profit attributable to common shareholders was 1.64 billion yuan.
We will continue to re-invest in the "ten billion yuan agricultural and research project" and encourage young people to step up to the fore
In August this year, on the day of the release of the second quarter financial results, Pinduoduo announced the establishment of a "10 billion yuan agricultural research special", and the future profits of the priority to invest in this special. At the end of September, the "10 billion yuan agricultural research project" was approved by shareholders.
"All profits of this quarter will also be invested in the '10 billion yuan agricultural research special project' to continue to promote the progress of agricultural science and technology." Chen said technology and talent are key to advancing agricultural and rural modernization, and Pinduoduo is taking a systematic approach to encourage more young talents to take agriculture as their career choice.
Hundreds of contestants from all over the world signed up for the second Duoduo Agricultural research Competition held this year. Among them, most of the team members are post-90s, post-95s and even post-00s. Pinduoduo also works with world-class agricultural colleges and universities to provide tailored courses and training for these young agricultural talents, with topics such as greenhouse gardening, crop management and modeling.
▲ The expert team of the second "Duo Duo Agricultural Research Competition" is checking the growth of tomatoes. The first batch of AI tomatoes will bear fruit soon. (Photo by Min Shan)
In September, the four AI teams entered the final round, starting a six-month tomato growing competition. At the Duoduo Agricultural Research Base in Yunnan province, four teams are carefully cultivating tomato seedlings by remote means. The first AI tomatoes are expected to ripen in December.
"Pinduoduo was founded to create value by helping agriculture enter the digital economy." Chen lei said pinduoduo has been focusing on agriculture for six years and is committed to finding technological solutions that can be applied across the agricultural supply chain. "Going forward, we hope to use technology to drive agricultural products upwards, to bring the digital economy to more rural communities and further improve the efficiency of the agricultural supply chain."
In terms of team management, PINDUoduo will pay more attention to training young talents and managers. "We are pleased to see that many of the younger members of the team have demonstrated their core values of serving users and society, making practical business decisions and executing them steadily since the outbreak last year." Over the next six months to a year, more young managers will step forward to play key roles in shaping the company's future, Chen said.
From reducing marketing and focusing on research and development, to insisting on investing in agriculture as a long-term choice, and to strengthening the training of young managers, it is not difficult to see that Since taking over the post in March this year, Chen Lei, chairman and CEO of Pinduoduo, has chosen a more stable development path with more long-term confidence.