Dingdong (Cayman) Limited Announces First Quarter 2025 Financial Results

Rhea-AI Summary

Dingdong (NYSE: DDL), a leading Chinese fresh grocery e-commerce company, reported its Q1 2025 financial results. The company achieved its tenth consecutive quarter of non-GAAP profitability with RMB30.3 million (US$4.2 million) in non-GAAP net income. Total revenues increased by 9.1% year-over-year to RMB5,479.0 million (US$755.0 million), marking five straight quarters of positive growth.

Key metrics include a 7.9% increase in GMV to RMB5,960.7 million and a 12.1% rise in total orders. The company reported GAAP net income of RMB8.0 million and operating net cash inflow of RMB85 million. Despite competitive pressures, Dingdong maintains strong financial health with RMB2.89 billion in actual funds after accounting for short-term loans. The company is implementing a "4G strategy" focusing on good users, products, services, and mindshare.

Positive

• Five consecutive quarters of positive revenue growth, with 9.1% YoY increase
• Ten consecutive quarters of non-GAAP profitability
• 12.1% YoY increase in total orders
• Strong cash position with RMB2.89 billion in actual funds
• Operating net cash inflow of RMB85 million
• 7.9% YoY increase in GMV to RMB5,960.7 million

Negative

• Gross margin decreased to 29.9% from 30.6% YoY
• Non-GAAP income from operations decreased 94.0% YoY
• Non-GAAP net income declined 26.8% YoY
• Operating loss increased to RMB21.2 million from RMB11.1 million YoY
• Fulfillment expenses as percentage of revenue increased to 22.9% from 22.8%

Insights

Financial Analyst

Dingdong shows modest growth with 9.1% revenue increase and fifth consecutive quarter of GAAP profitability despite thin margins.

Dingdong's Q1 2025 results present a mixed picture with encouraging growth trends but concerning margin pressures. Revenue increased 9.1% year-over-year to RMB5.48 billion, marking five consecutive quarters of positive growth. The company's GMV growth of 7.9% and order count increase of 12.1% indicate improving customer traction in China's competitive fresh grocery e-commerce space.

Profitability metrics show both promise and challenges. While Dingdong achieved its tenth consecutive quarter of non-GAAP profitability at RMB30.3 million and fifth consecutive quarter of GAAP profitability at RMB8.0 million, the margins remain razor-thin at just 0.6% of revenue on a non-GAAP basis. The 26.8% year-over-year decline in non-GAAP net income raises questions about sustainable profitability scaling.

Concerning cost trends deserve attention. Gross margin deteriorated to 29.9% from 30.6% year-over-year, while fulfillment expenses increased disproportionately by 9.5%, slightly outpacing revenue growth. The slip into an operating loss of RMB21.2 million compared to the prior year's smaller loss signals operational challenges despite overall net profitability.

On the positive side, Dingdong maintains strong liquidity with RMB4.29 billion in cash and investments, or RMB2.9 billion net of short-term borrowings. The company's ability to generate RMB85 million in operating cash flow demonstrates a sustainable business model despite tight margins.

The "narrow yet deep" strategy focusing on quality over expansion and the "4G" approach targeting good users, products, services, and mindshare suggests management is prioritizing sustainable growth over aggressive expansion, which may be prudent given the margin challenges in China's e-commerce landscape.

SHANGHAI, May 16, 2025 /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, with advanced supply chain capabilities, today announced its unaudited financial results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights: 

• GMV for the first quarter of 2025 increased by 7.9% year over year to RMB5,960.7 million (US$821.4 million) from RMB5,525.1 million in the same quarter of 2024, positive year-on-year growth for five straight quarters.
• Total number of orders increased by 12.1% year over year in the first quarter of 2025.
• Non-GAAP net income for the first quarter of 2025 was RMB30.3 million (US$4.2 million), the tenth consecutive quarter of non-GAAP profitability.

Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated, "As of the first quarter of 2025, we have achieved non-GAAP profitability for ten consecutive quarters and GAAP profitability for five quarters. Additionally, we've seen positive year-on-year revenue growth for five straight quarters. This consistent growth in both scale and profitability has undoubtedly laid a strong foundation for our future development. In the context of today's intense competition, we have identified the following core advantages: robust supply chain capabilities; distinct positioning; a robust ecosystem; strong organizational ability and implementation; We have introduced the 4G strategy focusing on "good users, good products, good services, and good mindshare." We've begun to see some great results in this quarter that Dingdong is rolling out more unique and high-quality products, our users are happier than ever, and our supply chain efficiency is steadily improving. Over time, our advantages will become increasingly evident."

Mr. Song Wang, Chief Financial Officer of Dingdong, stated, "In the first quarter of 2025, Dingdong reported a revenue of RMB5.48 billion, reflecting a 9.1% year-over-year increase and marking five consecutive quarters of positive growth. Non-GAAP net profit was RMB30.3 million, and GAAP net profit was RMB8.0 million, and operating net cash inflow reached RMB85 million. The Company continued to demonstrate positive profitability alongside positive operating net cash inflow. By the end of the first quarter, after accounting for short-term loans, our actual funds amounted to RMB2.89 billion, indicating a continued net increase. This year, we are committed to executing our "narrow yet deep" value proposition, intensifying our efforts to satisfy consumers through quality products and services, while establishing a unique path focused on quality, stability, and consistent supply capabilities."

First Quarter 2025 Financial Results

Total revenues were RMB5,479.0 million (US$755.0 million) compared with total revenues of RMB5,024.0 million in the same quarter of 2024, primarily due to the rise of number of orders resulting from rise in the average monthly number of transacting users and higher monthly order frequency, and new opened frontline fulfillment stations with density and market penetration improved in East China. The increase was offset by suspension of operations for a number of stations in 2024, more outbound residents from Jiangsu, Zhejiang, and Shanghai during this Chinese New Year, and the impact of the decline in food CPI prices in the first quarter of 2025.

• Product Revenues were RMB5,386.5 million (US$742.3 million) compared with product revenues of RMB4,944.3 million in the same quarter of 2024.
• Service Revenues were RMB92.5 million (US$12.8 million) compared with service revenues of RMB79.8 million in the same quarter of 2024, primarily driven by the increase of customers subscribing to Dingdong's membership program, and more delivery fees collected with more orders in this quarter.

Total operating costs and expenses were RMB5,519.0 million (US$760.5million) compared with RMB5,045.0 million in the same quarter of 2024, with a detailed breakdown as below:   

• Cost of goods sold was RMB3,842.1 million (US$529.5 million), an increase of 10.1% from RMB3,488.7 million in the same quarter of 2024. Cost of goods sold as a percentage of revenues increased slightly to 70.1% from 69.4% in the same quarter of 2024. Gross margin decreased to 29.9% from 30.6% in the same quarter of 2024.
• Fulfillment expenses were RMB1,256.1 million (US$173.1 million), an increase of 9.5% from RMB1,147.0 million in the same quarter of 2024. Fulfillment expenses as a percentage of total revenues increased to 22.9% from 22.8% in the same quarter of 2024.
• Sales and marketing expenses were RMB110.0 million (US$15.2 million), a decrease of 1.0% from RMB111.0 million in the same quarter of 2024. Sales and marketing expenses as a percentage of total revenues decreased slightly to 2.0% from 2.2% in the same quarter of 2024.
• General and administrative expenses were RMB112.9 million (US$15.6 million), an increase of 7.5% from RMB105.0 million in the same quarter of 2024, mainly due to the increase of staff cost.
• Product development expenses were RMB198.0 million (US$27.3 million), an increase of 2.4% from RMB193.3 million in the same quarter of 2024, primarily due to the increase of staff cost. While advocating for energy and resource saving, we will continue to invest in our product development capabilities, agricultural technology, data algorithms, and other technology infrastructure, to further enhance our competitiveness.

Loss from operations was RMB21.2 million (US$2.9 million), compared with operating loss of RMB11.1 million in the same quarter of 2024.

Non-GAAP income from operations, which is a non-GAAP measure for loss from operations that excludes share-based compensation expenses, was RMB1.1 million (US$0.2 million), decreased by 94.0% year over year, compared with Non-GAAP income from operations of RMB18.1 million in the same quarter of 2024.

Net income was RMB8.0 million (US$1.1 million), compared with net income of RMB12.3 million in the same quarter of 2024.

Non-GAAP net income, which is a non-GAAP measure that excludes share-based compensation expenses, was RMB30.3 million (US$4.2 million), decreased by 26.8% year over year, compared with non-GAAP net income of RMB41.5 million in the same quarter of 2024. In addition, non-GAAP net income margin, which is the Company's non-GAAP net income as a percentage of total revenues, was 0.6% compared with 0.8% in the same quarter of 2024.

Basic and diluted net income per share were RMB0.02 (US$0.00), compared with net income per share of RMB0.03 in the same quarter of 2024. Non-GAAP net income per share, basic and diluted, was RMB0.09 (US$0.00), compared with RMB0.12 in the same quarter of 2024.

Cash and cash equivalents, restricted cash and short-term investments were RMB4,294.5 million (US$591.8 million) as of March 31, 2025, compared with RMB4,452.2 million as of December 31, 2024. We have been working diligently to optimize our capital usage and financing structure. The cash and cash equivalents, restricted cash and short-term investments deducting the balance of short-term borrowings, is RMB 2.9 billion, a net increase for the seventh consecutive quarter.

Guidance

The Company is looking to sustain year-over-year growth in scale and achieve non-GAAP profits in the second quarter of 2025.

Conference Call

The Company's management will hold an earnings conference call at 8:00 A.M. Eastern Time on Friday, May 16, 2025 (8:00 P.M. Beijing Time on the same day) to discuss the financial results. The presentation and question and answer session will be presented in both Mandarin and English. Listeners may access the call by dialing the following numbers:

International:				1-412-317-6061
United States Toll Free:				1-888-317-6003
Mainland China Toll Free:				86-4001-206115
Hong Kong Toll Free:				800-963976
Conference ID:				3897934

The replay will be accessible through May 23, 2025 by dialing the following numbers:

International:				1-412-317-0088
United States:				1-877-344-7529
Access Code:				1862999

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.100.me.

About Dingdong (Cayman) Limited 

We are a leading fresh grocery e-commerce company in mainland China, with sustainable long-term growth. We directly provide users and households with fresh groceries, prepared food, and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be the first choice for fresh and food shopping.

For more information, please visit: https://ir.100.me.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as non-GAAP net income, non-GAAP net income margin, non-GAAP net income attributable to ordinary shareholders and non-GAAP net income per share, basic and diluted, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance.

For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2567 to US$1.00, the exchange rate on March 31, 2025 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement 

This announcement 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 announcement, 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 fresh grocery ecommerce 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 assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of RMB and US$)
			As of
			December 31, 2024			March 31, 2025			March 31, 2025
			RMB			RMB			US$
						(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			887,427			1,212,956			167,150
Restricted cash			2,788			4,037			556
Short-term investments			3,561,977			3,077,508			424,092
Accounts receivable, net			125,896			134,860			18,584
Inventories, net			553,601			471,610			64,990
Advance to suppliers			62,730			84,390			11,629
Prepayments and other current assets			170,753			182,181			25,105
Total current assets			5,365,172			5,167,542			712,106
Non-current assets:
Property and equipment, net			176,290			189,506			26,115
Operating lease right-of-use assets			1,464,791			1,443,762			198,956
Other non-current assets			111,395			109,036			15,025
Total non-current assets			1,752,476			1,742,304			240,096
TOTAL ASSETS			7,117,648			6,909,846			952,202
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable			1,660,472			1,642,311			226,317
Customer advances and deferred revenue			279,276			258,839			35,669
Accrued expenses and other current     liabilities			767,082			765,036			105,425
Salary and welfare payable			317,152			343,455			47,329
Operating lease liabilities, current			640,245			622,210			85,743
Short-term borrowings			1,606,253			1,406,342			193,799
Total current liabilities			5,270,480			5,038,193			694,282
Non-current liabilities:
Operating lease liabilities, non-current			780,036			776,243			106,969
Other non-current liabilities			143,118			144,073			19,854
Total non-current liabilities			923,154			920,316			126,823
TOTAL LIABILITIES			6,193,634			5,958,509			821,105

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Amounts in thousands of RMB and US$)
			As of
			December 31, 2024			March 31, 2025			March 31, 2025
			RMB			RMB			US$
						(Unaudited)
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED)
Mezzanine Equity:
Redeemable noncontrolling interests			125,403			127,806			17,612
TOTAL MEZZANINE EQUITY			125,403			127,806			17,612
Shareholders' equity:
Ordinary shares			4			4			1
Additional paid-in capital			14,181,030			14,203,465			1,957,290
Treasury stock			(51,176)			(51,176)			(7,052)
Accumulated deficit			(13,384,881)			(13,379,265)			(1,843,713)
Accumulated other comprehensive income			53,634			50,503			6,959
TOTAL SHAREHOLDERS' EQUITY			798,611			823,531			113,485
TOTAL LIABILITIES, MEZZANINE EQUITY      AND SHAREHOLDERS' EQUITY			7,117,648			6,909,846			952,202

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
			For the three months ended March 31,
			2024				2025			2025
			RMB				RMB			US$
			(Unaudited)
Revenues:
Product revenues			4,944,289				5,386,500			742,280
Service revenues			79,755				92,539			12,752
Total revenues			5,024,044				5,479,039			755,032
Operating costs and expenses:
Cost of goods sold			(3,488,696)				(3,842,106)			(529,456)
Fulfillment expenses			(1,146,982)				(1,256,094)			(173,094)
Sales and marketing expenses			(111,048)				(109,953)			(15,152)
Product development expenses			(193,262)				(197,969)			(27,281)
General and administrative expenses			(105,028)				(112,881)			(15,555)
Total operating costs and expenses			(5,045,016)				(5,519,003)			(760,538)
Other operating income, net			9,858				18,723			2,580
Loss from operations			(11,114)				(21,241)			(2,926)
Interest income			40,298				35,123			4,840
Interest expenses			(16,773)				(5,964)			(822)
Other income, net			1,561				1,657			228
Income before income tax			13,972				9,575			1,320
Income tax expenses			(1,699)				(1,558)			(215)
Net income			12,273				8,017			1,105
Accretion of redeemable noncontrolling interests			(2,249)				(2,402)			(331)
Net income attributable to ordinary shareholders			10,024				5,615			774

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (CONTINUED)
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
			For the three months ended March 31,
			2024			2025			2025
			RMB			RMB			US$
			(Unaudited)
Net income per Class A and Class B ordinary share:
Basic and diluted			0.03			0.02			-
Shares used in net income per Class A and Class B     ordinary share computation:
Basic			325,024,592			324,576,757			324,576,757
Diluted			328,469,733			336,977,726			336,977,726
Other comprehensive income/(loss), net of tax of nil:
Foreign currency translation adjustments			3,517			(3,131)			(431)
Comprehensive income			15,790			4,886			674
Accretion of redeemable noncontrolling interests			(2,249)			(2,402)			(331)
Comprehensive income attributable to ordinary    shareholders			13,541			2,484			343

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of RMB and US$)
			For the three months ended March 31,
			2024			2025			2025
			RMB			RMB			US$
			(Unaudited)
Net cash generated from operating activities			94,775			85,234			11,745
Net cash generated from investing activities			708,001			441,686			60,866
Net cash used in financing activities			(881,234)			(199,911)			(27,548)
Effect of exchange rate changes on cash and cash     equivalents and restricted cash			228			(231)			(32)
Net (decrease)/increase in cash and cash equivalents     and restricted cash			(78,230)			326,778			45,031
Cash and cash equivalents and restricted cash at the     beginning of the period			1,209,704			890,215			122,675
Cash and cash equivalents and restricted cash at the     end of the period			1,131,474			1,216,993			167,706

 

DINGDONG (CAYMAN) LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
				For the three months ended March 31,
				2024			2025			2025
				RMB			RMB			US$
				(Unaudited)
Loss from operations				(11,114)			(21,241)			(2,926)
Add: share-based compensation expenses (1)				29,207			22,329			3,077
Non-GAAP income from operations				18,093			1,088			151
Operating margin				(0.2 %)			(0.4 %)			(0.4 %)
Add: share-based compensation expenses				0.6 %			0.5 %			0.5 %
Non-GAAP operating margin				0.4 %			0.1 %			0.1 %
Net income				12,273			8,017			1,105
Add: share-based compensation expenses (1)				29,207			22,329			3,077
Non-GAAP net income				41,480			30,346			4,182
Net income margin				0.2 %			0.1 %			0.1 %
Add: share-based compensation expenses				0.6 %			0.5 %			0.5 %
Non-GAAP net income margin				0.8 %			0.6 %			0.6 %
Net income attributable to ordinary shareholders				10,024			5,615			774
Add: share-based compensation expenses (1)				29,207			22,329			3,077
Non-GAAP net income attributable to ordinary     shareholders				39,231			27,944			3,851
Net income per Class A and Class B ordinary share:
Basic and diluted				0.03			0.02			-
Add: share-based compensation expenses
Basic and diluted				0.09			0.07			-
Non-GAAP net income per Class A and Class B ordinary     share:
Basic and diluted				0.12			0.09			-
(1) Share-based compensation expenses are recognized as follows:
				For the three months ended March 31,
				2024			2025			2025
				RMB			RMB			US$
				(Unaudited)
Fulfillment expenses				3,974			4,770			657
Sales and marketing expenses				1155			1541			212
Product development expenses				15,544			7,602			1,048
General and administrative expenses				8,534			8,416			1,160
Total				29,207			22,329			3,077

 

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SOURCE Dingdong (Cayman) Limited

FAQ

What were Dingdong's (DDL) Q1 2025 revenue and profit numbers?

Dingdong reported Q1 2025 revenue of RMB5,479.0 million (US$755.0 million), up 9.1% YoY, with GAAP net income of RMB8.0 million and non-GAAP net income of RMB30.3 million.

How did Dingdong's (DDL) GMV perform in Q1 2025?

Dingdong's GMV increased by 7.9% year over year to RMB5,960.7 million (US$821.4 million) from RMB5,525.1 million in Q1 2024.

What is Dingdong's (DDL) cash position as of March 31, 2025?

Dingdong had RMB4,294.5 million in cash, restricted cash, and short-term investments, with actual funds of RMB2.89 billion after deducting short-term borrowings.

What is Dingdong's (DDL) guidance for Q2 2025?

Dingdong expects to sustain year-over-year growth in scale and achieve non-GAAP profits in Q2 2025.

What strategic initiatives is Dingdong (DDL) implementing?

Dingdong is implementing a '4G strategy' focusing on good users, good products, good services, and good mindshare, while pursuing a 'narrow yet deep' value proposition.