Dingdong Cayman : Limited 3Q24 Presentation

Dingdong (Cayman) Limited 2024Q3 Results

November 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 stra tegic 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-demand e-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 September 30, 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

2024Q3 Financial	Business	Guidance
and Operational	Updates
Results

2024Q3 Financial Highlights

All figures in RMB

Eight consecutive quarter of Non-GAAP profitability

Three consecutive quarter of GAAP profitability

Three consecutive quarter of year-over-year growth for GAAP, Non-GAAP profit and GMV

GAAP, Non-GAAP profit and GMV reached new quarterly highs

Q3YoY

GMV

7.27 billion

+28.3%

Non-GAAP net profit	162 million	+9.4 times
With margin	2.5%	+2.2 pp

GAAP net profit

133 million

+62.4 times

With margin	2.0%	+2.0 pp

2024Q3 Operating Highlights

User Base

Accelerated Growth in Jiangsu, Zhejiang, and Shanghai

Monthly transacting users

8.22 million YoY+24.5%

Monthly ARPU	Monthly ARPU
for all users	for members
YoY	RMB 540
+6.4%	YoY+8.8%

Average monthly orders	Average monthly orders
per user	per member

GMV
Shanghai	Jiangsu and Zhejiang,
each
YoY+24.5%	YoY +40%
Beijing	Guangzhou-Shenzhen
regions
YoY+14.6%	YoY+2.9%
Daily order volume per station
Shanghai	Jiangsu and Zhejiang,
each
Nearly
More than
1,700 orders	1,000 orders

Frontline fulfillment stations

As of September 30

Newly opened	Daily order volume for
stations	newly opened stations
80	866 orders

Target for new fulfillment station openings in 2024

~110

Over 50% year-over-year

growth in GMV

in 14 cities nationwide

4.4 orders	7.6 orders
YoY+6.1%	YoY+9.8%

Product Development Capabilities

45 strategic categories, contributing to

more than half of the year-over-year increase in total GMV

Outlook for the Forth Quarter and Full Year of 2024

2024 Q4		2024 full year
◼	Non-GAAP net profit		◼	Non-GAAP net profit
◼	GAAP net profit		◼	GAAP net profit
◼	GMV growth year over year		◼	GMV growth year over year

2024Q3 Financial Highlights

GMV	Revenue
RMB (M)	RMB (M)

Non-GAAP/GAAP Net Profit

RMB (M)

GAAP Net Profit		Non-GAAP Net Profit

+942.0% YoY

+28.3% YoY

+27.2% YoY

7,267.0

+6,240.6% YoY

+2.0%

+2.5% Margin

6,538.2

5,665.4

5,139.7

23Q3

24Q3

23Q3

24Q3

161.6

133.4

+0.3%

0.04%

15.5

2.1

23Q3

24Q3

23Q3

24Q3

2024Q3 Financial Highlights

Gross Profit	RMB (M)	Fulfillment Expenses As % of
RMB (M)			revenue
		Gross Margin		23.2%
				21.4%
					1,397.8
				1,193.4
30.4%		29.8%
				1,946.8
				23Q3	24Q3
				G&A Expenses			As % of
1,562.2		RMB (M)			revenue
		3.4%
				1.7%	1.6%
				89.3	102.0
		23Q3		24Q3

23Q324Q3

Sales and Marketing Expenses

RMB (M)		As % of revenue

2.0%2.2%

144.9

104.2

23Q324Q3

Product Development Expenses

RMB (M)		As % of revenue

3.9%

3.1%

199.3202.4

23Q324Q3

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

2024Q3 Financial Highlights

RMB397.6 million positive operating cash inflow

Cash and Short-term Borrowing Position

RMB (M)

RMB2.64 billion self-owned fund balance, a net increase for the fifth consecutive quarter

Self-owned Fund Balance

RMB (M)

2,640.4

4,296.9 QoQ +139.3

	4,157.6			2,324.8
				2,087.9
Short-term				2,009.5
investments	3,095.9	3,392.4
	1,939.0
	1,832.8	1,656.5 QoQ -176.3	1,904.3
				1,842.0

		264.0
		200.0			614.0
Cash, cash
equivalents and	1,061.7	1,368.8			250.0
	904.5	792.5
restricted cash

Notes payable

Short-term bank loans Reverse factoring

2024/6/30

2024/9/30

2023/3/31

2023/6/30

2023/9/30

2023/12/31

2024/3/31

2024/6/30

2024/9/30

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

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