JD.com, Inc.
JD posted an adjusted net income per ADS of $1.24, beating the analyst consensus estimate of $1.09. The stock price slid after the print.
JD Segment Performance: JD.com's net product revenue increased by 4.8% year over year at $29.16 billion. Net service revenues rose 6.5% year over year to $7.95 billion.
JD Retail revenue climbed 6.1% year over year to $32.06 billion, Logistics revenue gained 6.6% year over year to $6.33 billion, and the new business revenues fell to $708 million.
JD.com's marketing expenses rose 25.7% to $1.4 billion in the quarter, forming 3.8% of revenues. The rise was mainly due to the increased spending in promotion activities.
Margin: Operating margin was 4.6% for the quarter, compared to 3.8% year over year. Adjusted operating margin improved 50 bps year over year to 5.0%. JD Retail's operating margin remained stable year over year at 5.2%.
Adjusted EBITDA increased 17.0% year over year to $2.1 billion, with a 5.8% margin.
JD.com used $1.97 billion in free cash flow for the quarter, used $0.89 billion in operating cash flow, and held $28.0 billion in cash and equivalents as of September-end.
JD.com's CEO, Sandy Xu, highlighted strong topline growth and solid profitability in the third quarter, driven by improved consumer sentiment. Xu attributed the performance to JD.com's robust supply chain and fulfillment infrastructure, which played a key role in China's trade-in program. The company saw significant growth in the general merchandise category, fueled by efforts to enhance user experience and positive responses to the Singles Day Grand Promotion.
CFO Ian Su Shan noted that JD.com's revenues grew 5.1% year-over-year, supported by a rebound in electronics and home appliance sales alongside consistent strength in general merchandise. The company's focus on enhancing supply chain capabilities led to improved gross and non-GAAP net margins.
JD.Com stock gained over 31% year-to-date.
Price Action: JD stock is up 1.65% at $36.28 in the premarket session at the last check Thursday.
