By Will Feuer
Pinduoduo Inc. posted higher sales and a jump in earnings for the third quarter, driven by strength in the agriculture and e-commerce company's online-marketing business and transaction-services segment.
The Chinese company reported profit of 10.59 billion yuan, or $1.49 billion, for the three months ended Sept. 30, compared with 1.64 billion yuan a year earlier. Earnings per American depositary share came in at 7.34 yuan, or $1.03, compared with 1.15 yuan in the same period a year earlier.
Adjusted earnings came to $1.21 per ADS, topping analyst expectations for adjusted earnings of 67 cents per ADS.
Revenue jumped 65% to 35.5 billion yuan, or $5 billion. Analysts surveyed by FactSet were expecting revenue of $4.23 billion. The rise in revenue was driven by online-marketing services and transaction services, partially offset by a decline in merchandise sales, the company said.
Total costs of revenue rose 13%, mostly from higher fulfillment fees and payment-processing costs.
The company plans to increase its investments in research and development to enhance the efficiency of its supply chain and "agricultural digital inclusion," Chairman and Chief Executive Lei Chen said.
ADSs of Pinduoduo, which are traded on the Nasdaq, rose more than 11% in premarket trading to $73.24.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires