DADA - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen and thank you for standing by for Dada First Quarter 20221 Earnings Conference Call. At this time, all participants are in listen-only mode. After the management prepared remarks, there will be a question-and-answer session.

As a reminder, today's conference is being recorded. I'll now turn the meeting over to your host for today's call, Ms. Investor Dada. of Head Dong, Relations for Caroline Please proceed, Caroline.

Caroline Dong

and for conference joining you, operator. first you everyone, Hello, earnings Thank our thank quarter call. XXXX

answer Philip be our Mr. discuss guidance. call questions we Q&A and Mr. Chen, your CTO. the from will will Kuai, the available company Co-Founder Mr. Chairman They session talk highlights, Kuai about Mr. On Jun Yang, and and and the will Chen, Beck follows. today CEO; to Mr. CFO; operations all and financials during have that Dada, then

I'd we which to this on statement measures. release begin, refer discuss contains measures measures. financial the will release, in forward-looking refer we to like call GAAP please non-GAAP call, press earnings our Before certain our a to non-GAAP IR remind that statements, earnings also Harbor of comparable press the Please conference website. you our Also, reconciliation to Safe latest this contains during

mentioned stated, Kuai. Philip, pleasure Finally, to Mr. Chairman CEO, please ahead. my note and call figures introduce now otherwise that our all please in during It’s conference unless RMB. are go this

Philip Kuai

Thank you, thank very all for us Caroline, today. you joining much and

and We announce to another the strong excellent are start to quarter year. pleased an

macro growth current of environment. Dada quarter pressures resilient our first net the During basis, demonstrating the year-over-year Group of delivered XXXX, on revenue XX% fully comparable despite a business from model,

of our then results platforms. before financial usual, first two go details. key progress, will and go recent I greater our as highlights on some in through So, will on to through moving Chen Beck our updates observations

held compliance introducing economic platform necessity the in promote support where measures CPC to regulatory the laws and robust of the specific development special and healthy supervision leadership platform emphasized economy, development analyze the environment, including economy of with regulations. current bureau implementing the the regular rectification, completing of of situation, the In to Central the recently Committee has meeting political a the to terms the

overall adheres the of while the Dada and Group business under growth. So government, operations, compliant sustainable guidance to CPC the driving

growing Shanghai as the while been economy the level. Shenzhen, some making business the responsibility have rapidly, outbreak elevate new to to Since COVID-XX every including of supply led the a off in Data approved fulfilling of actively beginning or temporary our to necessities. platform cities, year, our the maintain platform, We a effort been have and measures, of to enterprise initiatives. including daily the Beijing, involved They containment local initiation lockdown. governments Group close anti-pandemic by support in has then

their strive online we merchants, For to operations. delivery to support capabilities provide

of products For on platforms. our ensure consumers, price stabilities we

we COVID provide For riders eligible obtain riders, help to travel and special passes subsidies.

For activities welfare donated supply with equipment, local we for and of packages agencies distribution residents help engage governments, to pandemic the government in control. protection personal public

JD.com with Since increased Now deepened updates in like at been on Group of our provide would cooperation JD.com. has I investments completed end Data the to February.

year-over-year. cooperation GMV the further by retail has the JD.com -- times the Our Now brand on-demand strengthened. In omni-channel JD business with services Xiaoshigou, Shop more than of quarter, Shop unified all within increased or ecosystem, three for first the

we the nearby result, we as one quarter, more or first nearby the the among gain of the of expanded exposures entry Now, a of Fùjìn will During JD further Shop points coverage users. geographic major see

and improve rates to design continue we app addition, upgrading rate operations. In the conversion the click-through by and

China's local let's retail has on-demand pandemic Since Now, in growth to the on been under some time leading consumption pressure March, platform spend China. resurgence. due JDDJ, the

integration not of consumption. the of change. to very of anniversary domestic and always unlocking continued deep policy The of national the JDDJ. consumption full a the development unified to consumption innovative towards of encourage building meeting the the it's and circulation, the recovery offline national the promotion of marks clear. And market towards new April recovery internal formats, seventh most potential overall directive drivers one online However, growth through XXth of consumption important been large needs trend models. of the diverse has consumers of JDDJ will and committed is the also

we for year, with both Festival the April Now. this and together the launched So first XXth Shopping time, JDDJ and Intra-City Shop JD.com

Double of festival, as the festival. of average categories last During the FMCG Fresh year's that daily the Foods GMV and such exceeded shopping The XX

the than GMV consumer users, JDDJ annual active categories other year-over-year. appliance of XX%, more While March home million. of the to year-over-year doubled by and on many increased XXXX, the number end At ¥XX.X electronics, of

cooperation category strategic, During with the and brands the first expand in to coverage, innovate solutions. merchant JDDJ and deepen digital quarter, continues

So and more our as users. serve empower to more partners and better

we expand supermarket I category. to with will category continue our merchant coverage. start the Firstly, and

far, we XX XXX in with of supermarket top established out the China. So partnership chains have

the of enhanced growth During winners, year-over-year user Year Chinese JDDJ the the accelerated New established Province. mindshare, as as also in regional quarter. with and partnerships and GMV we as March supermarkets the Pandora the quarter, campaign X first new by Driven well such Hunan on Festival Shopping

Rainbow the warehousing the doubled GMV addition, Tianhong, as quarter. chains, supermarket regional In on of a than and more sequential such leading Canghai basis during

and appliance major and appliance local home on a chain rapid to One sub total consumer growth on brands, In strategy, cycle maintained home and needs conversion smartphone serve product with appliance expanded Room the Nintendo. and offerings rates. cooperation and category. the sub established sequential GMV our Kui by of both move launched the partnerships Now. newly In strengthened Kurdash of driven Zhou, leading supplies. iFlytek, electronics PC the the our In digital program, Flagship [ph] and basis, Loreo enhanced and trading City enrichments we improved the category, category, we home Zingping category, and synergy we leading have mom-and-baby category, trends including new which and deepened small our further with full Baby Let's with [ph] such home Shop smartphone smartphone to sub the buyers probability In One as appliance life

eight the first chains result, increased more of a quarter. the than year-over-year in mom-an-baby As GMV by times on JDDJ

deepen service XXX%. Secondly, strategic with we revenue our first the cooperation quarter, around brands. year-over-year In the was the online growth of further marketing

partnerships we framer signed with and categories on have new At such Foods, from categories keep sales brands as CP several with quarter, partner and expanding. we more generate food more meaningful channel. as the the brands JDDJ, During time, of also the new good directly same [indiscernible] that packaged brands

product For mentioned our core at quarter, addition including established as this is partnership prevailing cooperation based [indiscernible] the the example, of [indiscernible] with innovation with recently In or promote home new trends your food. brands. in brands, best which selection on we features help the a brands to brands, above, bestsellers. the consumption ASD the and have theme In launched organic is we marketing the deliver of [indiscernible] mostly March, trendy to of campaign household products our

During year-on-year sales doubled the basis. than milk on more the of powder milk, and campaign, [indiscernible] a products including other brands from

solutions in to please? continue digital Excuse just mute so in innovate brands. retailers our me, not you Thank is yourself, We who and you. could speaking, please

to out channels continue digital operating systems brands. in retailers innovate carry we empower across solutions efficiently. continue merchants operations and empower to for to multiple Haibo, more to OXO certainly, So retailers, our omni-channel

system, times to have visualize X,XXX which the efficiency, recently or partners' and to System, launched three brands sales Haibo a inventory retail our more supermarket around in XXX kilometers system To had As in China. chains helping of of grid March, Grid been Earth XX we of end the Kunce brand regional than stores about chain sales online top optimize X,XXX help of sales stores, including deployed brands down share. three point coverage the level, improve gain

Kunce by CR point products its of sequential mom-and-baby oil, Kunce during of has As sales than to grow one grain tested. of now, categories been of on cortex, than products, system. more market sales sales more adopted XX and other basis. points of by percentage Kimberly-Clark’s brands in XX system, sales than the adoption the the and Since Rain March XX compared have care effectiveness Kunce a in of increased and system opportunities times food more Guards core and X The increased brands identify and sold coverage beverage, help the

picking Picking, been all digitized rolled to Walmart by stores our fully nationwide it Dada Regarding of the the March. of service in-store has out end

increase established helping the percentage picking address points. Carrefour process in Picking’s us digitize and by have highly is rate shortage we empowerment fulfillment labor by partnership Dada with XX addition, and retailers. helped In picking valued

growth more maintained result, In first the of strong number order orders three than fulfilled momentum. by volume a the year-over-year. increased As quarter, Dada Picking times by

efficiency logistics the on model the construction the party to moving CPC Central delivery in local industry, Now, opinions in national entire in Council the to promote as accelerating and logistics the innovation third Recently, the of society. China. and proposed to so Committee market technology unified of State on-demand So a improve on platform business the leading Dada for

on-demand and agencies, delivery delivery and delivery infrastructure the technology-driven third range key Dada diversified As chain and convenience delivery providing on-demand serves a Now formats, companies support services. It customers, merchants, SME with serves network Leveraging express plays on-demand an improve efficiency. logistic individual users, a in coverage, party industry. merchants, consumer improve of logistics intra-city advantages wild overall including important our new to also consumption and high-quality on-demand technology you know, delivery role as them intracity

terms our or So, of with merchandise start progress, business in I key business. will KA

beverage maintained hyper our XXX% delivery to such from and the on-demand increasing growth, past. rapid the key merchants Revenue new and growth in by category, service Restaurant XX% store. after by average for year-over-year. more merchants on KA revenue the restaurant order based of we than KA sign continue year-over-year expansion stores, as So in multiple increased [indiscernible] up the KA In chain incorporating of to generated delivery about increase per quarters

maintained revenue more KAs impressive with by than XXX% pharmaceutical addition, increasing year-over-year. performance In

CXC significantly. to on while XX% the business. SME keeps unit the increased fulfilled than moving economy year-over-year, improving So more Orders and by

and last restoring played in recruited cross-sourcing pandemic delivery last quickly of flexible the For network. it riders in-house shortage mile These service, key riders, supplementary during JD in while our Logistics personnel. role faced Shanghai, activated leveraging mile a recent we capability, outbreak delivery delivery

which compliant delivery serve even to with bottlenecks XXX of while last efforts the containment measures. delivery communities, during the the also ensures meter door staying Our pandemic the help within door

and up, we make encouraging to environment the macro and results. So, despite from broader pandemic, strong pressures deliver continued have wrap progress ongoing to

Beck Chen our continue you. now for execute drive call sustained to With our the go over financials the shareholders. will to to I Thank to quarter. that, over will We for pass returns strategy

Beck Chen

Philip. you, Thank

items forma believe go first judge pro forma the revenue of increase due in consumers GMV, otherwise all I'm driven Therefore, in that Now just comparisons figures of growth a to year-over-year revenue XXX before result services growth from last-mile all the will were to growth Net train last-mile XX% was Renminbi, a in We have services delivery aligning million. the revenue So noted. the services the order our active driven in merchants number useful of way most the average pro to give also and year-over-year. advance. mainly a billion, JDDJ changes was And believe contributed volume revenue service X.X we RMB revenue X increasing comparable RMB Data are net logistic basis. we the going few order increased the first by numbers, in revenue to over unless which delivery year-over-year, basis, delivery Net of percentage of to and housekeeping The promotional online recognition intercity increase activities, The to in – in marketing billion, by from Total by be net increase on Now's increased revenue size. the are method to rate quarter as revenues JDDJ. to RMB mainly Dada companies. would increases XX% been to performance.

side. offset increase incentives growing rider and an of The cost delivery to volume expense dollar costs RMBX.X to The services, over increasing supporting of in for to partially of delivery consumers. the increase of result firstly were interest marketing order services. JDDJ billion. to amount primarily a was absolute by was Operations incurred last-mile achieved the billion. and expenses were due Selling business Moving as decrease decrease the RMBX.X primarily due rider-related costs upgrade by

to transaction improved expenses company comparable by an expenses share-based rose Secondly, the of million, was attributable its in to advertising with million decreased about a G&A research million. was margin RMB attract the loss loss consumers mainly XXX new continues RMBXXX as due attributable year-over-year. development JD.com business net in margin Non-GAAP increase On to the to and year. shareholders platform, point’s in agreement basis, marketing thirdly, expenses net and to ordinary primarily loss subscription cost of technology R&D strengthen the to DADA rising XX this to XX%. Non-GAAP personnel capabilities. net cooperation JDDJ and share compensation RMBXXX percentage expenses. February from increase amortization decreased to the

March our cash of of or XXXX, As XXXX, shares investments. we dilation restricted cash, short-term XX, US$XX program. repurchased this XX, equivalents, billion RMBX.X and had million as million [indiscernible] March had announced company in the in cash under the repurchase of ADCs Pursuant to approximately US$XX April

In XXXX, announced pro expect CNYX.XX for basis. last we be terms comparable 'XX total to a and second representing forma 'XX of CNYX.XX and outlook be and between quarter revenue to growth to XX% XX% mile adjusting that QX a of billion the rate of the billion, revenue QX net

fifth achieved prepared year-over-year in now loss quarter. on the our the quarter ready forma Q&A begin And session. In margin improvement consecutive you. we the continue basis for significantly revenue and the to to narrow operator, pro second remarks. expect net concludes XXXX addition, net we of based sequential This Thank comparable to are

Operator

At Thank to this Instructions] Keung go of question from begin like of Sachs. the session. Please you. would ahead. time, the we Ronald [Operator First Goldman comes Q&A line

Ronald Keung

on in Thank Beck, you, Caroline. you. Thank the solid the Jun quarter. first results And and congratulations Philip,

growth. season? XX% our how that any rates expecting to Beijing business have if we there XX% inventory this specific ask in our or want about models products in at COVID quarter implies anecdotes of the us in growth you. give for which recent looking guidance, you I COVID any or underlying we're a and could overall, availability Thank impact, JDDJ, second just So Shanghai, to Is and adjusted

Philip Kuai

Hi Sure. Ronald.

Beck give I and will anything to have you So if my add. see answer

a and see months. In Shanghai, a So, city letdown, key COVID opportunities. There example, supplies are Shanghai, daily of business situation. by COVID for seeing our extreme down. been among I and government I every we we that social cities in is give seen a locked few think different -- And And are very examples. social in responsibility having will as there's approved under responsibility yeah, as outbreaks you the others as have have the the already Beijing, we you almost huge well impacts. different for an Shenzhen, under the level local having Shanghai in company last

are at also supermarket the end the of least are weeks. So much the by down. offline. stores in merchant shut for the eligible shortage from government, chain of requirement are the a extreme of March, pretty supply most And the few And under the also writers

situation challenges So are improvement supply the certainly, there chain our a lot the COVID of for business. getting better. But then also with is and

recovering is business our So also quickly.

So we seeing most will normal. certainly extreme the extreme a return weeks, the very years, business last think in And three I have the case, that's we in are to that few our everything. next case

And logistics we for example, COVID For in rather are are the not Beijing, cities, chain some also although much. stable. but other break, the Beijing, seeing too it supply and impacted has

initial got down and a phase. normal quickly Beijing, phase rather So grew then our like to the in very in cities business it

city see business once been COVID has are think cases, some some other not and the well, I controlling pretty our governments random cities, impact. much And we

order At to So to time, same that's the protection impact. work. and to provide encourage the also business the riders more in

there's additional COVID some expense riders. subsidies So the related for or

I us COVID long-term, are And of helping I customer for think education. is this also kind temporary. situation think the in those

most delivery Yeah. with in will are in customer But business of of literally positive the familiar So think it think delivery business. the kind now impact I and on-demand this long-term, home I given customers education. have e-commerce cities and

to Let's add. anything Beck see if have

Beck Chen

Yeah.

believe higher we the for and than factors both JDDJ for right example all quarter we XXXX, And our So rate in growth second for the market challenges we've benefits. two Dada platforms, of the -- experience quarter. the consider of during already based now consideration yeah, will been in average impactors still and guidance, Now all those China, those this of giving

So it's right a fair now. expectation

Ronald Keung

JDDJ on expectations? growth And any specific you. Thank

Beck Chen

Yeah.

the Bureau still quickly -- quarter, we to market right as the -- second So you will see, JDDJ that released can yesterday. released grow average, the by the in National it data now, believe statistics compared very

lot we total speed experiencing rate. similar believe grow in there average revenue So a still, than And like higher the now. are second believe the it that same rate growth China But net we is quarter, still growth about will JDDJ right of for challenges Dada. -- of the

Ronald Keung

Great. Thank Thank Philip. you, you, Beck.

Operator

Thank you for the questions.

Next the line of Merrill from question ahead. go Lynch. Eddie comes Bank Please of Leung of America

Eddie Leung

morning, Good guys.

longer-term on question the lockdown. a this COVID Just follow-up after outlook

impact have guys quarter? and question education with lockdowns might landscape quick the contribution better separate on you about so consumers, you ticket about you Could bit first the you that could in competitive after the mentioned talk guys how potential your JD the And the recent GMV of channels potential the size the change You on a a of think little you. about then JD. Thank us seeing? to been cooperation remind the

Philip Kuai

Eddie. Sure,

give again, add. see you So my I if Beck anything have answer will and to

outlook, we mentioned So quarters. improving the for our are has size, also stable long-term ticket -- been customer to COVID, improving. few size pretty seeing experience growing reasons. the is trend and product you keep One after the last varieties due few the And for keep the the a basket

So, to grow. basket been seeing the has we size are continuing that

the in reasonably companies I think, outbreak, the will I after think In future. terms anything competitors that of happen will competition, COVID serious a the smaller overall or like And have will subsidy the think I this words, or In other awards of lot challenges. reduced. smaller foreseeable be competition, don't

I market do give to more will players like education partially the the At and market grow be would the cash unreasonable believe reasonable more in and rational. -- strong advantages I well, customer cooperation for more that or also the business the the you due to our time, in and the conservative of entire I take regarding with burning some terms the updates being of will even JD. think people in competition. same market the

So, few further are on been after key with working completed, the investment JD. there a from initiatives we JD have

some during same getting the to product for conversion that first advertising At improvements improvement, and so time also with tariff the together, we're technology we've JD nearby from working we're engine So, marketing working especially closely this to we the now, side, improve it's rates. see product firstly, Group the and more shop very the happy festivals. that traffic and and improving search the time, the of are the been important especially performance brand

For Yes, upcoming anniversary the therefore, also example, like more we opening continue the we we same cities time, share At as as closely Things And the the April for country our will like retail. Beck that, possible. and up the in push work and XXth, to entire JD in to have mind to improve anything foreseeable key and much QX. tab XX's June future for cover brand will regarding festival. are that's the in on the customers our with add. if see the initiatives on-demand to this nearby promotion,

Beck Chen

Yes.

So, contribution. JD in the terms of

a channel contributed JD there. bit QX, And more the is for in little So, I X-X, believe it some than seasonality XX%, XX%. there

QX believe So the going to will and keep that in contribution grow. forward, we

Eddie Leung

Beck. you Jun – Okay Thank Philip, and

Operator

for questions. you Thank

of Thomas go Jefferies. Our the next question comes line Chong Please ahead. from from

Thomas Chong

think management you. Thanks, morning. other QX I sequential Data side. the on should for also And side. comment expense we the Good you key particular, for how for question hand, KA and the paths for my competitive unit accounts, get landscape Hi. the about JDDJ. revenue the different in Can the Thank the have can color the about Now economics trend more the a taking for management questions. about regarding

Beck Chen

Okay, Thomas.

I question me believe first well. take let [indiscernible] the take second very the and So question,

of UE think JDDJ in expected direct monthly, quarters. breakeven. QX, I JDDJ like we So we can positive already And believe achieve we March, the call or [ph] it actually, JDDJ, as margin it's margin, in direct the we that like for margin have previous level in for

And on direct be we QX, margin. we keep are a forward, going achieve in positive. will it that track So the to believe positive to

Unidentified Company Representative

our very happy of At time, and to for to our years. business fast business, see care improving care customer we're the our leadership. couple in has And and last been strengthen that the qualities satisfaction market same the delivery growing Yes. the

COVID the are our have At same year. because the costs, of whole the time, year-over-year So as incremental we for And have the the the result, us some impact, will expense leading around business of of KA cost leading customers. recognition the very might the -- year, and partially -- improvement margin. preventing from year-over-year, riders XX% from getting might that whole a grow further and this -- we more the some more anticipate

as are and while we -- as second density year, will been slowing the well While technology-driven anticipate by the have of COVID from and all KA the the doing. down, improvement business we improvements of the this impacts operational half improve the increased technology-driven orders

margin So we with and are both confident revenue improvement. growth

Thomas Chong

you. Thank

Operator

questions. Thank you for

Next comes the Citigroup. from question ahead. line Yap of Please from Alicia go

Alicia Yap

versus will mentioned, COVID, management be you assuming May know then recovering second second of guidance Thanks not couple Hi. challenges. taking the very is, my worse elaborate getting impact a little Good you. June FMCG and management think, shifted? on the quarter quarter quarter have your from I of -- normal? mentioned And management. bit congrats can I Also in you. profitability. questions. on second One the questions for despite JDDJ the solid and be direct think questions. results Thank of And morning, a the mix the guidance. the the the you some material the JDDJ have of XQ COVID Thank for second and still expect in quarter will first is also mix your you also the factor us half lockdowns the the behavior expectation non-FMCG to difference? then, the due to is follow-up can so first margin? and change quarter I second you Do AOV I consumption for a quarter and remind the the track for on

Beck Chen

Okay.

about So, take yes, me let numbers. the questions the

categories right FMCG now of to -- supermarket the So, categories, products. is most of first, the consisting about supermarket

the believe it because the XX% of for in total non-supermarket, for for RMB XXX specifically, And us the AOV, for our GMV about like -- XXX. still than that marketplace more it's AOV, first supermarket And grow more down categories over will AOV, of percentage supermarket slightly overall X-X, increasing QX. we quickly. the is QX. QX, will And FMCG all, products keeps categories, in going to RMB overall So contributes non-FMCG for

So it's Q-on-Q of or And of impacts growth that will of we will growing from COVID the well. also and AOV categories AOV the those contribute believe increase in the the longer things term year-over-year. of all to the to diversification contribute newer also also as our

the And slightly as in the now, March, in all we -- of already we will are in right QX, a Shanghai in what X.X% guidance, it's quarter. considering already not So we QX happened so terms the basically, believe of direct already breakeven. margin April think minus like the Alicia first adhere we mentioned, And we But in quarter. this in rate you considering like whole for factors achieved that happened actually, those which it to we half -- are for

Alicia Yap

see. I

Okay.

Beck Chen

Yes. That’s all.

Alicia Yap

Thank Beck. Thank you. Okay. you,

Operator

the questions. Thank you for

comes Xiong line go the Wei UBS. of Our next ahead. question Please, from from

Wei Xiong

differently Hi, X/XX guys And round consumer on participation campaigns follow-up season. you mentioned. that upcoming Thank can And from we you. longer to on would how And you we be see question the How questions. the taking -- time compared shopping on Thank comment any to could guys to year? wanted share this we to the could another me is better positioned be this strategy this want better what the how XXXX, to experienced to for be you are behaviors management. do merchants wonder maybe COVID accommodated impact affect that from of highlight appreciated? that or I COVID my I you in term? promotion situation? we

Philip Kuai

has Sure. see have answer if add. my Beck I'll anything to and Yeah.

behaviors against and So think – to now COVID other also COVID more consumer I – been test and are COVID, government frequent more and having the has the from the optimize measures measures. the – we also continued overall

ask the including home. even And COVID frequently do having things also One the there's restaurants to and customers have will observed cases, mentioned customers more than as mode. – once government now of cooking we that that, takeaway after to and And it less might before, may to we're you is and dining are the the the others, you COVID. has at noticing noticed, more go restaurant Beijing and service, stop

So those And on the I to macro locked Shanghai use for other impact to air. all, first and and money some really cities. some think, customers. be to while. customers for offline the have terms or home food of I time, used service willingness Customers in down environment have slowed FMCG spend the That's observation. customers the positive supermarket. go to on and some and like the have a of XXth, quite And will than might spend all restaurants fresh the the But fresh our think down will supermarkets, impact like been they the delivery at to same to more – I go get rather categories, the in of June think have been

about located working this conservative very situations case, players because JD closely do extreme we and city each lockdown, during are noticed is XXth. city decentralized outbreak, And best model positively and but have that, all together to the And JD this are JD.com in XXth. with thing conservative, another the that, June are we So June collaboration during other with our e-commerce we in challenges, extreme e-commerce. for inventory JDDJ, extreme lockdown. some during other local the But the and the might warehouse especially among Shanghai

to challenges. So those to easier it's and it's more respond resilient,

with this situation. working quite react closely and to to to are very the new forward initiatives June So looking to I are XXth, JD develop we we strategies think it. And

Wei Xiong

Very clear. you. Thank

Operator

you the question. Thank for

the go of JPMorgan. question from ahead. Chang Next from comes Andre line Please

Andre Chang

My is question. Thank the for you on side. question taking management my merchant

and macro being impact, the So about year. some the merchants COVID headwinds all we see the also with cautious more spending for the

little bit our So mix mitigate this mix so, of this -- et new kind extra level, at I trend seeing and a a Thanks. you like an also monetization that measures because marketing any are -- this company changing? if model across we higher if riders of if monetization rider, the wonder cetera, to seen take expense

Philip Kuai

I'll first. have my Sure. Yes, answer

observation and told are our better having -- from couple time them challenges, comparing of for business actually years. So a our having the the many interaction some supermarkets with most are last us of to supermarkets the of but the that

group One of significantly. that is buying we situation awards unrational from read community been down and by reasons the the community competition the subsidy the the from grew has slowing

helped based of actually not having life moment. on fine. the At the they're same our brands, much improve They're supermarkets. interaction think overall, like too to consumer I with the at doing this challenges the So time,

overall, I people are merchants channels. solid. for to channels more do And the of foundation the So time, effective think at looking are the we And the the -- for business are and effective brands is like effective same channel. the quite looking business for

and So are both are greater that's our on spend we're and a why platform, platform. willing the that and our growth to brands contribution they see more like from happy the expecting merchants to

that. we So are positive quite about

Beck Chen

to still overall rate also, the monetization before marketing in believe marketing that the the is we and of increase revenues, to direction just most terms we important mentioned. one like fees of help us And Yes. the monetization, the

believe year-over-year we a this significantly. very And online will on marketing so year, quickly, during the still that grow revenues basis

growth revenue. it impact JDDJ's our doesn't the methodology of So of

Operator

further no Daiwa. I Lim Chang, the of there move Thank questions. you. take from Robin follow-up questions, are if next questions Please I you will Management, ahead. on. the will have go Do Mr.

Robin Lim

the have I impact taking impact be the questions. and also for management supermarket just less versus cycles. because would with of off-line lockdown on fulfill pandemic the in to first lockdown the impact could -- there's expect how measures compared Thanks of channels? round the terms question think And there we the some question areas? measures, years? this So we repurchase less be realize out of retention Which savings on face the come Thank two the my cost acquisition challenges? we COVID have if my community user the you. cost, logistics the factors another is on there biggest past because riders second from been the the JD the to we impact. Because is follow-up some it of a should time and cannot last trucking I Dada from I And the believe is orders could as because in Are Dada? observing also competition from some the better not coup will user residential they Hi.

Philip Kuai

Okay.

lockdown foreseeable all, first will especially future. I And don't kind is I I So COVID extreme. And measures now personally, lockdown are the anytime of that and Shanghai in think think very, and total seeing lockdowns the very be lockdown reduce other of risk. the having more the think COVID to the more test lockdown, we frequent

we And now I government realized for so are think, supply about other positive are supermarkets Shanghai the some that. quite that cities, the So for even important. and – chain

guidance. severe I rider of follow for rather supervision in in And the as so always and And supply governments that the will comfortable been less the most are also COVID quite and COVID the people riders, might Personally, the And kind impact cities. have as during closely overall, some future. positive to we the management not the with measures our local improve think with and temporary order have chain we working shortage are imagine in I'm the of of the and operations less riders to even

X,XXX XX with active nearly March, -- are active sorry, customers, grew by by that. And we in our million terms So of end the customers. XX% to the comfortable of customers active up

the So grow. acquisition, and the points with at increasing for active JD.com. see collaboration entry our we we user strengthening our to time, on are And JD.com because to user base are this same happy continues

be in growth, user JD stable. will the ecosystem will in foreseeable especially – the the with improved relatively be – to continue reduction cost the with think the I future or cost

Robin Lim

Can on Okay. retention? user the I follow-up

Philip Kuai

purchase improving frequency the so the user that per been, or and retention also quarters. has Yeah, platform purchase we user the user on the retention the growing. dollar especially amount has keeps seeing that our user use keep And over – are

– keep share confident we that wallet of are we the share So is of to users proving, well. as world improving future the see our the keeping in comfortable of have and that and

Robin Lim

much. Thank you very

Operator

ahead. the question go of In you last Mizuho. the Wei interest Please Thank the Fang question. of from for comes time,

Wei Fang

supermarket of secondly, outlook? light on from impact about monetization And competition economic in the BXB the – taking quarter unit think the rate? we you monetization you yield your Thank for rate your the within more about on for lockdown prior rational total talk changes Thank how to your my business model, given Can you. question. the recent and should the XXXX side, the advertising any

Beck Chen

Okay.

X.X% to in So of last QX by the further like advertising it's manufacturing And the XXX% rate in marketing also is to online increased compared growing year. X.X% year-over-year. QX, revenue

have we we the it grow rate. from calls the keep improving. and we to for that year, diversification. product to the major rate marketing items, consideration like the all level overall merchants, packing deliveries driver last it's the similar potential for still or the including multi-category as the a we commissions our And the from two believe whole to grow year have, major other two received basis XX those monetizing will the that, of the delivery room consumers and XX So by like in talked we maintain fees, received at we manufacturing believe commissions, can online and And fees points be in those the previous

on and are So optimize grow to on mainly also same monitoring rider side, cost. we to including basis the will the a like on track on have said, in to we year-over-year will And the Q-on-Q and incentives keep the I consumer still and we time, cost operation basis, rate. a keep

positive quarterly to, And margin. in unit way. positive positive QX, forward, can going the quarterly economic overall, it achieve direct grow will -- keep we in So

Operator

questions. the today's for for that hand Dong would session. to to, With I concludes call Caroline you Ms. remarks. Thank back like question-and-answer the that, our closing

Caroline Dong

Thank of thank in your Dada's you, you like today's to Operator. on In for team, call. closing, we'd participation behalf management

to concludes you joining us require the any us This to free for directly. you call. further information, reach Thank If out today. feel

Dada Nexus Limited (DADA) 17 May 222022 Q1 Earnings call transcript