PDD Holdings, the operator of the international shopping site Temu, reported strong first-quarter earnings, significantly beating revenue and earnings per share (EPS) estimates. The company posted a revenue of 86.81 billion yuan, surpassing the forecast of 75.17 billion yuan, and an EPS of 20.72 yuan, exceeding the expected 10.35 yuan. Additionally, the company reported EPADS of $2.83 versus an estimated $1.42 and sales of $12.02 billion against a forecast of $10.65 billion. This impressive performance led to a pre-market stock increase of about 9%. The company's gross margins expanded, and its market capitalization now exceeds that of Alibaba. PDD's transaction revenue has surged by 614% since the founding of Temu in July 2022. The positive earnings report has positioned PDD Holdings as a major player in the market, with its ADRs jumping and significant investor interest. Operating profit increased by 237%, further highlighting the company's strong financial health.
