SHANGHAI - Dada Nexus Limited (NASDAQ:DADA), China's leading local on-demand retail and delivery platform, reported better-than-expected second quarter results, with revenue surpassing analyst estimates and a narrower loss than anticipated. Following the earnings release, Dada Nexus shares rose 1.5% in premarket trading.
The company reported revenue of RMB2.35 billion ($325 million) for the quarter ended June 30, 2024, beating the consensus estimate of RMB2.28 billion. This represents a 9.5% decrease from RMB2.60 billion in the same quarter last year. The adjusted net loss per share came in at RMB0.14, compared to analyst expectations of a RMB0.23 loss per share.
Dada NOW, the company's delivery service segment, saw significant growth with revenue increasing 46.6% YoY to RMB1.44 billion. This growth was primarily driven by an increase in order volume for intra-city delivery services provided to various chain merchants.
However, revenue from JD (NASDAQ:JD) NOW, the company's on-demand retail platform, decreased 43.5% YoY to RMB912.4 million. This decline was mainly due to a decrease in online advertising and marketing services revenues, as well as the impact of a delivery fee waiver program for orders exceeding RMB29 implemented in February 2024.
"In the second quarter of 2024, we remained committed to customer experience optimization and high-quality development," said Mr. Henry Jun Mao, Chief Financial Officer of Dada. "We are pleased to see the strong growth momentum in JD NOW's core metrics such as order volume and user base through the JD App in the quarter, which we believe will lead to long-term mindshare gains."
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