Chinese e-commerce platform Pinduoduo Inc on Monday reported quarterly revenue that missed Wall Street estimates, as it battles fierce competition from Alibaba and JD.com in the rapidly growing online shopping space.
US-listed shares of Pinduoduo fell 12% in premarket trading.
A comparatively new entrant in the Chinese e-commerce sector, Pinduoduo faces competition from larger rivals with strong infrastructure and logistics as well as dominant market positions.
A slowdown in Chinese economic growth and Covid-19 outbreaks have also taken a toll on consumers’ discretionary spending.
Total revenue was 27.23 billion yuan ($4.29 billion) in the fourth quarter, below estimates of 30.10 billion yuan, according to IBES data from Refinitiv.
Net income attributable to ordinary shareholders was 6.62 billion yuan in the quarter ended December 31, compared with a loss of 1.38 billion yuan a year ago.
• Reuters with additional editing by Jim Pollard