Dada Group (Nasdaq: DADA) today announced the company's financial report for the second quarter of the 2022 fiscal year ended June 30, 2022. The report shows that the total net revenue of Dada Group in the second quarter was 2.2811 billion yuan, compared with 1.4746 billion yuan in the same period last year; the net loss was 578.8 million yuan, compared with the net loss in the same period last year. The net loss attributable to the company's ordinary shareholders was also 578.8 million yuan, compared with the net loss attributable to the company's ordinary shareholders of 640.4 million yuan in the same period last year, which narrowed year-on-year .
According to data provided by Yahoo Finance Channel, six Wall Street analysts had expected on average that Dada Group’s total net revenue in the second quarter would reach $329.72 million. According to the financial report, Dada Group’s total net revenue in the second quarter was 2.2811 billion yuan (according to the exchange rate of 6.6981:1 against the U.S. dollar as of June 30, 2022, about 340.6 million U.S. dollars), exceeding analysts’ expectations.
In addition, five Wall Street analysts had previously expected, on average, that the loss per share of Dada Group in the second quarter would reach 0.25 US dollars, not in accordance with the US GAAP. According to the financial report, not in accordance with the US GAAP, the basic loss per share and the diluted loss per share of Dada Group in the second quarter were both 0.41 yuan (according to the exchange rate of RMB to USD as of June 30, 2022 is 6.6981: 1, approximately $0.06), beating analyst expectations.
Performance Summary:
- Dada Group's total net revenue in the second quarter was RMB 2,281.1 million.
- JD Daojia's gross transaction value (GMV) was RMB 54.6 billion in the 12 months ended June 30, 2022, compared to RMB 32.3 billion in the 12 months ended June 30, 2021 An increase of 68.9%.
- Active consumers were 72.8 million in the 12 months ended June 30, 2022, compared to 51.3 million in the 12 months ended June 30, 2021.
In the second quarter, JD.com and Dada Group further deepened the omni-channel O2O cooperation, and the GMV of JD.com hourly purchases increased by more than 2 times year-on-year. Hourly shopping business cooperation and commodity supply were further expanded, the coverage of JD.com’s high-quality grid was optimized, and the search exposure rate increased by 3 percentage points month-on-month. The "Nearby" channel of the JD App has now covered all cities in the country where hourly shopping has been opened. Driven by increased exposure, click-through and conversion rates, Nearby channel GMV increased by more than 80% sequentially.
"With the trust of our partners and strong digital capabilities, Dada Group is in a unique position in the ever-changing consumption environment." Kuai Jiaqi, founder, chairman and CEO of Dada Group, said, "We are in a position to be able to meet the needs of the macroeconomic environment. Proud to achieve solid performance in certain factors, thanks to the invaluable support of our employees, customers and strategic partners. Follow the consumer trend of on-demand shopping and take advantage of our 'comprising JD Daojia and Dada Express' The twin-engine' business, we are well positioned for a brighter future."
Financial analysis:
Revenue
Dada Group's total net revenue in the second quarter was 2,281.1 million yuan, compared with 1,474.6 million yuan in the same period last year.
Dada Group's second quarter net revenue from Dada Express was 815.6 million yuan, compared with 593.5 million yuan in the same period last year. Dada Express' second-quarter net revenue increased by 37.4% year-on-year, mainly due to an increase in orders for in-city express delivery services to chain merchants.
Dada Group's net revenue from JD Daojia in the second quarter was RMB 1,465.5 million, compared with RMB 881.1 million in the same period last year, an increase of 66.3% year-on-year, mainly due to the increase in the number of active consumers and average order size. The increase drove the year-over-year increase in total transaction value. Net revenue from JD Daojia also increased due to increased revenue from online marketing services as brand owners and retailers launched more promotions.
Costs and expenses
Dada Group's total costs and expenses in the second quarter were RMB 2,909.3 million, compared with RMB 2,205.8 million in the same period last year.
Dada Group's operating and support costs in the second quarter were RMB 1,431.3 million, compared with RMB 1,136.5 million in the same period last year. The increase was mainly due to the increase in rider costs due to the increase in the number of orders for in-city delivery services provided to various chain merchants on the Dada Express platform and retailers on the JD Daojia platform.
Dada Group's sales and marketing expenses in the second quarter were RMB 1,190.2 million, compared with RMB 824.2 million in the same period last year. This increase was mainly due to: (1) higher incentive fees for JD Daojia consumers; (2) higher advertising and marketing expenses aimed at attracting new consumers to JD Daojia platform; (3) February 2022 with the Amortization charges were incurred in connection with the business cooperation agreement between JD.com in relation to the share subscription transaction.
Dada Group's general and administrative expenses in the second quarter were RMB 99.9 million, compared to RMB 100.1 million in the same period last year, basically flat year-on-year, mainly due to the company's effective spending control measures.
Dada Group's R&D expenditure in the second quarter was 160.0 million yuan, compared with 132.3 million yuan in the same period last year. This growth was mainly due to the increase in R&D personnel costs as the company continued to strengthen its technological capabilities.
Operating loss
Dada Group posted an operating loss of 608.7 million yuan in the second quarter, compared with an operating loss of 665.8 million yuan a year earlier.
Not in accordance with US GAAP, Dada Group's operating loss in the second quarter was 424.2 million yuan, compared with a non-GAAP operating loss of 573.3 million yuan in the same period last year.
Net loss
Dada Group posted a net loss of 578.8 million yuan in the second quarter, compared with a net loss of 640.4 million yuan a year earlier.
Not in accordance with US GAAP, Dada Group's net loss in the second quarter was 395.6 million yuan, compared with a non-GAAP net loss of 549.2 million yuan in the same period last year.
Dada Group's second-quarter net loss attributable to ordinary shareholders was RMB 578.8 million, compared with a net loss attributable to ordinary shareholders of RMB 640.4 million in the same period last year.
Not in accordance with US GAAP, Dada Group's net loss attributable to ordinary shareholders in the second quarter was 395.6 million yuan, compared with a net loss of 5.492 yuan attributable to ordinary shareholders not in accordance with US GAAP in the same period last year billion RMB.
Loss per share
Dada Group's basic loss per share and diluted loss per share in the second quarter were both RMB 0.60, compared with RMB 0.67 in the same period last year.
Not in accordance with GAAP, Dada Group's basic loss per share and diluted loss per share in the second quarter were both RMB 0.41, compared with the basic loss per share and diluted per share not in accordance with GAAP in the same period last year Losses were both RMB 0.58.
Cash situation
Cash, cash equivalents, restricted cash and short-term investments held by Dada Group totaled RMB 4,350.2 million as of June 30, 2022, compared to RMB 1,764.8 million as of December 31, 2021.
Share repurchase
According to the $70 million share repurchase program announced in March 2022, as of June 30, 2022, Dada Group has repurchased approximately $32.7 million worth of American depositary shares under this repurchase program.
Performance Outlook:
For the third quarter of fiscal 2022, Dada Group expects its total revenue to reach between 2.350 billion yuan and 2.450 billion yuan, an increase of 39% to 45% year-on-year. This performance outlook is based on information available as of the date of this press release, reflects the company's current and preliminary expectations, and is subject to change in the future due to various uncertainties, including related to the ongoing COVID-19 outbreak. Pandemic-related uncertainty.
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