DADA - Earnings call transcript Q4 2023

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Operator

Good morning, ladies and gentlemen. Thank you for standing by for Dada's Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. After the management's prepared remarks, there will be a question-and-answer session.

As a reminder, today's conference call is being recorded.

I would now like to turn the meeting over to your host for today's call, Ms. Investor Dada. of Head Dong, Relations for Caroline Please proceed.

Caroline Dong

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

Interim we On will Mr. CFO. both financials. answer Mr. talk and to Mr. from Mao call operations will Mr. your Dada, be our the highlights, the Bing Jun available today Fu Q&A Fu, questions They company President; about Mao, will and Henry the session. have during then discuss

remarks his provided. give answer will any Fu in Mr. that remarks prevail. consecutive and be note Chinese the in will discrepancy remarks should the statements In and and translated original Please questions of version, the original between translation the case

contains statement Please safe applies forward-looking our latest Before website the our in to statements. you begin, we like call to refer harbor I'd press this call. which remind IR release earnings to on conference that this

will refer reconciliation press non-GAAP this certain financial during discuss non-GAAP measures Please of which call, release GAAP to the measures. measures. Also comparable earnings we contains our to a

Finally, unless stated, mentioned otherwise all RMB. conference are this in during that call please figures note

It Fu. go my please Mr. President, ahead. is Interim Mr. Fu, pleasure to introduce now our

Bing Fu

Language] [Foreign

Unknown Attendee

and Caroline, all you, us. you Thank joining for thank

Bing Fu

[Foreign Language]

Unknown Attendee

from highlights company to results released the on into quarter, recent by March get independent we I would like the the the Before address review X, XXXX.

and and consisting and accounting not international firm a assistance independent an international to experts from advertising audit, matter identified potential review of auditor. law this company online third-party is firm the overstatement of the the quarters forensic Committee The services Audit initiated January, in leading internal immediately that first company's company independent and during advisers professional disclosed took we a costs revenues Board of routine Back XXXX. for seriously, X related an a that the in consulting the marketing of the with

in the of and remedial X, as statements correction relevant and information necessary completion measures we past announced appropriate. the including substantial of the March on certain financial Upon review, the findings

financial to statements XXXX in by net note As the you balance important may cash impacted first in of the noticed, our nor have the presented And the correction for items of corresponding loss earnings it's was release. that neither X the or profit quarters corrected period. line are

Bing Fu

Language] [Foreign

Unknown Attendee

As accountability corporate the part of monitoring to of internal dedication and rigorous the controls forward we've internal systems reinforcing and audits enhanced in all at our and and company's going integrity levels governance, strengthen company. oversight implemented transparency, enhanced to with mechanisms policies, recordkeeping

Bing Fu

[Foreign Language]

Unknown Attendee

Now let's go performance. business through our and financial

XXXX, top Group of in with made operating improving Dada efficiency. progress quarter faced fourth still challenges, the steady both During line and

percentage X% Our total net year-over-year. improved net revenues increased by margin X point adjusted by and

Bing Fu

[Foreign Language]

Unknown Attendee

brief Before I JD.com. highlights get on our X with platforms, update operational from our into the a cooperation

their users optimize user XX% With more respect In continue monthly number reach transacting fourth to to JD and quarter, we experience. increased of by year-on-year. Xiaoshigou the average JDDJ, users

more than down order by entry daily point DAU tab within increased Xiaoshigou more X conversion double tab break the percentage driven rate the saw by To year-on-year increased homepage. on stand-alone by than click-through rate Meanwhile, point, Xiaoshigou the year-on-year. its

the online a GMV Xiaoshigou traffic by generated than on As year-on-year. more result, tripled tab

users. non-Xiaoshigou exposure, on-demand glad GMV who the we're JD mind search point increase that JD, generated fourth XX% For search products see in filter by major quarter, year-on-year result share another to actively growing among on users results out entry by among demonstrating

Bing Fu

[Foreign Language]

Unknown Attendee

nearly orders strengthened. Dada the to Now's JD.com In delivery needs, fourth to doubling Now cooperation with dedicated further fulfilled support Dada JD's year-on-year. with on-demand continued provide Meanwhile, quarter,

Bing Fu

[Foreign Language]

Unknown Attendee

to China. let's deepen quarter, SMEs. empower the retail chains Now more quarter we highlights large on-demand operational fourth leading with in fourth In continued through for cooperation detailed and go the local JDDJ, the platform

XXXX. of stores, more XXXX, the of retail of had onboarded JDDJ As the doubling end over XXX,XXX end from than

Bing Fu

[Foreign Language]

Unknown Attendee

high-quality collaborated In out as our the as with with XXX to supermarket top industry-leading XX category, provide the regional users closely champions chains we well supplies. of supermarket over

Bing Fu

[Foreign Language]

Unknown Attendee

off-line time, increased Meiyijia, JD terms largest more fourth year-on-year. in same empowered we the as convenience the by largest stores store formats store of the cooperation than deepened Total same generated At operator store the and the metric. chains, convenience GMV with store major Xx JD.com; Lawson, in fifth by China Store, by Convenience the by convenience in the count; such quarter

Bing Fu

Language] [Foreign

Unknown Attendee

mobile doubled essential consumer computer and the in electronics. and XX% accessories smartphone we QX. than made as In such year-on-year In rapid Oppo category, phones Moving GMV the Samsung growth accessories digital significant on than of category, GMV more maintained of to year-on-year, also chargers. a and the in more products progress

Bing Fu

[Foreign Language]

Unknown Attendee

Turning furnishing home category. to and the home appliance

furnishing partnerships major Kaadas. with smart platform. stores Robam, appliance During closely Panasonic XX,XXX and over the as of kitchen China's brands we home new home we onboarded worked we Meanwhile, our one Collectively, such and more leading brands. locks such appliance onto as appliance established quarter, manufacturers, newly with top

quarter, by of the merchants result, doubled than As GMV fourth furnishing more while year-on-year. of in nearly year-on-year, merchants GMV XX% appliance a increased home home

Bing Fu

[Foreign Language]

Unknown Attendee

GMV by fourth increased store Xx by regional category, quarter than the expansion. In in liquor more the year-on-year driven

Bing Fu

Language] [Foreign

Unknown Attendee

offerings. category, than apparel threefold and driven by the sports the surged our segment differentiation outdoor expansion and in GMV of more In continued product

Bing Fu

Language] [Foreign

Unknown Attendee

XXXX. increase XX% stores omnichannel been base. Haibo's important XXXX, the in ability significantly as Haibo's This retention our around recognition empowerment deployed XX,XXX an retailers. remained year-end In enhance over merchants of Technological from in with partnership more operating despite than to among XXXX, enlarged is Haibo, audio of an of XX% their efficiency. at end has focus of system, customer a customer the operational underscores rate our

help more address add improve existing merchants and points improve and operations. functionality, Haibo its to features pain to continue We

to monitoring and merchants' identify in quarter, added new operational orders provide intelligently capabilities Haibo enhancing the fourth example, a feature security. For thus real-time risk control fraudulent and and

Bing Fu

Language] [Foreign

Caroline Dong

the Let's move on-demand leading Now, in platform on delivery local China. to Dada

than respectively, employment cities workers. opportunities wide active annual into the low-tier XX% riders the expanding XXXX, last-mile more XXXX, businesses of intra-city platform, penetrating flexible counties, X.X an increase cities. As over more Dada for X,XXX million covered and of on a end than more and In year-on-year, of our and Now of delivery we range had further over X,XXX

Bing Fu

[Foreign Language]

Unknown Attendee

our our chain in on XX%. fulfilled business continuously remain gross business, quarter, by XXXX. than well year-on-year the to order orders fulfillment increasing year-on-year, The rate in of high-quality effectiveness quality KA among revenue profit clients contributors our For KA and cost services recognized more fulfillment per and of fourth KA above merchants. average improving continued in services all the with rely growth our XXXX XX% merchant at Notably, top by delivered XX

Bing Fu

Language] [Foreign

Unknown Attendee

XX% we received the KA fourth Strategic quarter. China October, order year-on-year Coffee, In increased store the Partner fulfilled In the category, coffee more beverage in from count. largest Luckin Best in award by chain by than the

recognition establishment partnership Tea, a chain China, newly XXXX. chain, from the such of quickly. style a having In strategic Tastien, addition, burger fulfilled high-quality style we In in brands popular service as fulfilled a our KA rapidly since also with Chinese tea partnered orders Thai new in up of the for growing received also restaurant volume orders early category, ramped

Bing Fu

[Foreign Language]

Unknown Attendee

SME by increased prior expansion fulfilled fourth optimization, from in pricing CXC and high Moving into year-on-year orders and than year verticals CXC on increased the more to our business. The base the and XX% into new quarter in driven the penetration number period lower-tier SME by of cities.

Bing Fu

[Foreign Language]

Unknown Attendee

the to we performance. shareholder robust overall close healthy business overview wrap the heart creating the And our of was for our growth continue up, will year. a To strategy it to into concludes This heading XXXX, at place value. of

XXXX. fiscal for I year our fourth through will pass the financials Henry over the quarter to now call and to go

Henry Jun Mao

to Thank our Fu. Dada discuss our call you, Mr. I'm valued financial earnings of to with performance on be investors. analysts and Group my pleased first as CFO

RMB, Just our the performance. going useful a We believe to Therefore, numbers. to will on unless otherwise all are noted. evaluate figures year-over-year before items the few over basis all we percentages housekeeping comparisons way give be year-over-year are and a most go I'm in

have full the in for addition, of earnings details of release. financial traction In past figures statements, laid out which reflected to our XXXX are annex year

Net to order increased in CNY in billion, and to services the X.XX X% from mainly increased revenue. in JDDJ volume services by driven increases Now advertising intra-city the Dada decrease to fourth by X.X XX% billion, of reached online chain by revenues revenues net quarter X.XX delivery from CNY due merchants. Total Net the mainly CNY billion. marketing revenues to

and due to cost primarily Operations increase and increase volume rider to for an provided merchants. expense over side. costs Moving support as was The billion. a were services intra-city cost to X.X increasing chain in order CNY various delivery of result

decrease X primarily in billion, expenses. marketing to JDDJ a promotional on to due a decrease Selling platform activities expenses and marketing advertising conducted in and CNY and decreased

expenses. the in of acquisition as CNY General expenses result XXXX million reduced share-based and and compensation related decreased a to intangibles administrative JDDJ of with of decreased amortization XX

CNY expenses development million, personnel lower R&D and Research decreased due to mainly XX costs. to

for was XXXX. the million quarter fourth goodwill of loss Impairment CNY of XXX

Non-GAAP CNY a XXX fourth quarter margin of X CNY was net net of point X.X%, loss loss Non-GAAP was million loss with an by compared improving million, XXX percentage in improvement year-over-year. XXXX. the

found cash, full had can run earnings through cash December and results. quickly X.X X our CNY revenues revenue billion XX% billion equivalents, from X in with will be of release. Total cash JDDJ XXXX, As growing key X.X billion. Operations investments. I details XX, costs in XXXX now in support XXXX. and by few CNY we restricted X% Dada compared short-term CNY financial growing the billion CNY Further CNY to year Now a in X.X billion were revenue increased CNY by billion, to from XX.X with to by XX% XXXX and

marketing X.X X.X CNY year. and Selling with compared CNY billion billion expenses were last

XXXX. Research expenses million were XXX CNY in million expenses XXXX. and General CNY administrative compared were with development XXX CNY and in with CNY million XXX million XXX compared

loss improving Non-GAAP compared was net 'XX. million margin CNY with loss in was percentage XX X.X net non-GAAP X.X%, Our XXX year-over-year. billion by points CNY

a a that we program American USD to of Directors have balance announced March through period million authorized XXXX. shares have by the existing cash of depository X-year addition, XX our repurchase share of for Board up In funded

is part Our decision broader strategy of repurchase long-term shares value to create our shareholders. to for our

interest committed stay prioritizing will shareholder shareholder and returns. enhancing We to

prepared Operator, begin ready we Thank now are This session. remarks. concludes Q&A to our you. the

Operator

from last Bank first with Zhang Lei Your Instructions] of [Operator America. question comes

Lei Zhang

questions [Foreign Language] Two here.

share color more impact can with and of First, consumption in downgrades business. that macro us terms the our you to

Secondly, wondering business? outlook, plan subsidy your JDDJ the XXXX overall of including

Bing Fu

[Foreign Language]

Unknown Attendee

will question. one. you first your answer the Thank for I

Bing Fu

[Foreign Language]

Unknown Attendee

and was confidence introduction to further stimulus consumers' As will the of and rebound power society consumption strengthened. a and improve expansion to into improve. room of pro-consumption the recovery be the XXXX, well series recovered. the consumption still there for further the poised spending as of economy economy policies, Heading and Nonetheless, with as and market macro normalized, gradually

Bing Fu

[Foreign Language]

Unknown Attendee

indicate scenarios year, which demand, pent-up year Last the physical took goods tourism the Consumption strength off-line boomed, consumption, physical such the entertainment consumption consumption. to a as and continued and consumption. some first unleashing of off well the and in of X return from of of tourism, for catering recovery stable service recovery the as in catering, thanks data service consumption as as months such steam goods

more balanced ahead, expect this wallet Looking share versus we of a physical year. services goods

Bing Fu

[Foreign Language]

Unknown Attendee

still on-demand The is early sector development. in days retail of the

we retail selection, among trend Given the its sales in the convenience in remain run. edge both product confident up that and further of on-demand can penetration long retail

Henry Jun Mao

take second and you, Thank I question. your Lei, will

I I So JDDJ, it efficiency. supply health meet to Meanwhile, for on regarding improve the rising consumer overall mind the enrich to its to user will shopping, JDDJ's operating experience share. strategy, of demand business the we the focus I online and enhancing definitely continue the our will with demand respect think think and think

consumer the In growth terms to the the will categories promotion think efficiency. Dada network. incentives, business our of user Now, activities health invest and think channels, optimize continuously subsidy the Dada and ensuring ROI we targeted to I evaluating its to of while drive And manner also a different respect Now nationwide rider across the in by has all with know I own we that demographics

focus on to its with its and sustained efforts technologies. So business continuously services Dada KA Now will enhance

answers existing to boom your Going forward, question. delivery, seek with clients the closely growth work hope while of I Dada ride customers will efficiency business Now gains. I proactively more to on think that along on-demand new with acquiring

Operator

from Chong Thomas next question with Your comes Jefferies.

Thomas Chong

I X Language] questions. [Foreign have

provide you Now, KA about the please how XXXX? is And the do color this momentum in about any question see and First, you outlook revenue JDDJ. year? my JDDJ's for second Dada order Could

Bing Fu

[Foreign Language]

Unknown Attendee

I'll you. the question. take Thank first

Bing Fu

Language] [Foreign

Unknown Attendee

healthy to robust more business our high-quality the growth continue from pleased XXXX. And into well growth as that by resulted to of that as well growth, remain business of the The fulfilled as momentum KA ongoing, and number deepened delivered as XXXX, year-on-year these rapid increasing quarter our of with fourth beverage we're expect In orders with than primarily see XX% revenue cooperation trends chain year-on-year. we them. our

Bing Fu

[Foreign Language]

Unknown Attendee

nationwide attracting in efficient sustain, likely customers. services, in rider in fulfillment, competitive We third-party to and with Dada gain our further In on-demand more to all long network's well think to cater share cost as and run, Now's confident deepening brands' We're to industry the verticals edge partnerships ability thanks market above-industry delivery need partners our customized top and merchant maintain stable are as for the in to trends efficiency. expect we growth. existing these

Henry Jun Mao

I question. second will the take

to customers As I regarding in JD.com to further market tapping the the confident the in strategy, of on of commitment to the enhance and and mentioned sustainable, more with along the with be unleash efforts the earlier, in JDDJ, I product on-demand retail growth together to we opportunities growth JD.com. enrich will retail offerings improve our to long our on-demand focused think the to experience. the of shopping XXXX, implementation very And with are and so our user for the high-quality given delivering healthy we synergies business run, experience laser

Operator

Your next Wei UBS. from with question Xiong comes

Wei Xiong

Language] top do economics more color give your on user focusing line Or on strategic more improvement? efficiency improvement the Could unit and Are management to growth are we profitability more balancing improvement? growth continuing you share cost [Foreign we and and JDDJ us Could around frequency development? improving in XXXX? focus

Henry Jun Mao

Thank your you question. for

have lot. I think, discussed yes, we a this

heart rate on-demand continue and strategy, I users hand, needs. of more will been high-quality shopping Also, repeat high-quality focused we the optimize with we've consumers' frequency. improvement and our diversified operations. and serve in we merchandise design unleash shopping will With user business think interface to on always at our continuously efficiently one purchase on offerings, synergies growth to JD.com

experience think share. I user so, overall to enhance we in to doing aim the and improve user mind

improvement. adapt year, more JDDJ health approach for on ROI-driven its a achieve and efficiency business think of and high-quality this growth focus to I the will growth operating

very and goal along growth. profitability. sustainable in achieve Our are steady the I healthy in the run, with delivering confident high-quality, to long high-quality is improvement overall business mean, sustainable in the we growth,

Operator

There now questions closing Caroline for I'll at further hand to are time. Ms. remarks. Dong no back this

Caroline Dong

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

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

Operator

our That you does for Thank conference conclude today. participating. for

disconnect. now may You

Dada Nexus Limited (DADA) 26 Mar 242023 Q4 Earnings call transcript