Dingdong Cayman : Limited 1Q24 Presentation

Dingdong (Cayman) Limited 2024Q1 Results

May 2024

DISCLAIMER

The following presentation has been prepared by Dingdong (Cayman) Limited ("Dingdong" or the "Company") solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities or otherwise. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Nothing contained in this document shall be relied upon as a promise or representation as to the past or future performance of the Company. Past performance does not guarantee or predict future performance. You acknowledge that any assessment of the Company that may be made by you will be independent of this document and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. This document contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, business outlook and quotations from management in this document, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the on-demande-commerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assum ptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Dingdong's filings with the SEC. Dingdong undertakes no obligation to update any forward-looking statement, except as required under applicable law. This document also contains non-GAAP financial measures, the presentation of which is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America. In addition, the Company's calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. The reconciliation of those measures to the most comparable GAAP measures is contained within this document or the earnings press release. This document speaks as of March 31, 2024. Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

Content

01 02 03

2024 Q1 Financial	Business	Guidance
and Operational	Updates
Results

2024 Q1 Financial Highlights

All figures in RMB

Sixth consecutive quarter of non-GAAP profitability

GAAP profitability

Both made record highs for the past 12 months

	Q1		YoY	March	YoY
	5.53 billion		+1.4%	1.97 billion	+6.5%
		Affected by:
		• Strategic suspension of operations in a number of cities and stations. If
GMV			excluding the impact of that in Sichuan, Chongqing, Guangzhou, and
			Shenzhen, the existing GMV increased by 4.4% year-over-year
		• More outbound residents from Jiangsu, Zhejiang, and Shanghai during
			this Chinese New Year
		•	CPI impact
Net profit	12.3 million		+64.7 million
With margin 0.2%
	41.5 million			41.5 million
Non-GAAP net profit		+583.2%	+76.8%
With margin 0.8%		With margin 2.3%
Net operating cash	94.8 million		+401.6 million
inflow

Outlook for the Second Quarter and Full Year of 2024

For 2024Q1

• Exceeded our expectations for revenue and net profit

For 2024Q2		For 2024 full year
◼	2024Q2 non-GAAP net profit		◼	2024 non-GAAP net profit
◼	2024Q2 GAAP net profit		◼	2024 GAAP net profit
◼ 2024Q2 GMV growth year over year		◼ 2024 GMV growth year over year

2024Q1 Financial Highlights

GMV	Revenue
RMB (M)	RMB (M)
	+1.4% YoY
	5,525.1
5,451.2	+0.5% YoY
	5,024.0
	4,997.5

23Q1

24Q1

23Q1

24Q1

Number of orders increased by 3.5% year over year

GMV of Shanghai rebounded and achieved 2.7% year over year growth in Q1 and almost 10% year over year growth in March.

GMV of Jiangsu and Zhejiang achieved year over year growth of 16.6% and 14.8%, respectively, in Q1.

15 new frontline stations in Jiangsu and Zhejiang in Q1.

Non-GAAP/GAAP Net (Loss)/Profit

RMB (M)

GAAP Net (Loss)/Profit		Non-GAAP Net Profit	+583.2% YoY
						+0.8%		Margin
	+0.2%
		+0.1%		41.5
-1.1%	12.3
	6.1

-52.4

23Q1

24Q1

23Q1

24Q1

2024Q1 Financial Highlights

Gross Profit	RMB (M)	Fulfillment Expenses	As % of
		revenue
RMB (M)
		Gross Margin		23.9%
			22.8%

Sales and Marketing Expenses

RMB (M)		As % of revenue

1.8%

2.2%

		1,193.8	1,147.0
30.7%	30.6%
		23Q1	24Q1
1,535.1	1,535.3	G&A Expenses			As % of
		RMB (M)			revenue
			3.4%
		1.7%	2.1%
		86.8	105.0
23Q1	24Q1

23Q124Q1

111.0

89.8

23Q124Q1

Product Development Expenses

RMB (M)		As % of revenue

4.2%

3.8%

210.6

193.3

23Q124Q1

Note：The fees and rates in the above figure are based on GAAP standards.

2024Q1 Financial Highlights
RMB94.8 million positive operating cash inflow	RMB2.09 billion self-owned fund balance, a net increase
for the third consecutive quarter
Cash and Short-term Borrowing Position	Self-owned Fund Balance
RMB (M)						RMB (M)
	5,309.7
			4,510.1	QoQ -799.6		2,257.7
											2,009.5	2,087.9
										1,939.0
								1,904.3
Short-term								1,842.0
	3,300.2
investments	4,100.0				1,619.9
			3,378.6
			2,422.2	QoQ -878.1
		970.9
		230.0		250.0	Notes payable
			Short-term bank loans
				189.0
Cash, cash		2,099.3		1,983.1	Reverse factoring
equivalents and	1,209.7
	1,131.5
restricted cash
	2023/12/31	2024/3/31		2022/9/30	2022/12/31	2023/3/31	2023/6/30	2023/9/30	2023/12/31	2024/3/31

Note 1 Self-owned fund balance=Cash and cash equivalents + Restricted cash + Short-term investments - Reverse factoring - Short-term bank loans - Notes payable

THANK YOU